Studsvik — Interim / Quarterly Report 2007

Aug 23, 2007

	January	January
	June 2007	June 2006	Full year 2006
Net sales, SEK million	619.0	569.1	1,219.6
Operating profi t, SEK million	38.0	27.1	71.3
Profi t after tax, SEK million	29.6	9.9	34.8
Profi t per share after tax, SEK	3.60	1.20	4.24
Equity per share, SEK	69.71	67.79	67.97
Equity-assets ratio, %	41.2	40.8	41.2

Interim Report January–June 2007

• Continued positive trend in the UK. In the second quarter Studsvik won an order for delivery of a waste treatment facility to Sellafi eld – order value SEK 190 million. •
• Studsvik signed an agreement on dismantling the turbine building at the German nuclear power plant Obrigheim – order value SEK 30 million. •
• Studsvik acquired the German consulting company Dr. Fary. •
• In the second quarter Studsvik participated in a tendering procedure, that was later discontinued, for acquisition of a nuclear technology company in the UK. The costs of the process, SEK 10.1 million, were charged to the second quarter earnings. •
• After the close of the reporting period Studsvik acquired all the shares in the British nuclear technology consulting company Alpha Engineering. •
• After the close of the reporting period a consortium, in which Studsvik is included, was selected as the preferred bidder to negotiate a contract to operate the UK's low-level nuclear waste depository. •
• The outlook for 2007 is unchanged. The Group is expected to report good organic growth and an improved operating profi t. •

Net Sales

Net sales for the second quarter amounted to SEK 345.8 million (317.5) and for the period of January to June, to SEK 619.0 million (569.1). The change mainly consists of higher revenues from Waste Treatment in the USA and the UK, higher revenues from Decommissioning in the UK, and lower revenues from Service and Maintenance attributable to Studsvik Stensand AB, which was divested on January 1, 2007. For compar able entities, net sales in the fi rst half of the year increased by 12 per cent compared with the corresponding period in 2006. The foreign exchange effects on translation of foreign subsidiaries' net sales amounted to SEK –24.9 million.

Sales abroad amounted to 85 (72) per cent of net sales.

Profi t

The operating profi t for the second quarter amounted to SEK 15.8 million (26.7). In the second quarter Studsvik participated in a tendering procedure for acquisition of a partial com pet itor, a nuclear technology company in the UK. The intended acquisition was of a considerable size and in line with Studsvik's growth strategy. The acqui sition pro cess was, however, discontinued when the price reached a level that Studsvik could not justify. The costs of the process, SEK 10.1 million, were charged to the second quarter earnings. The operating profi t for the period January to June was SEK 38.0 million (27.1). Pre-tax profi t for the period January to June was SEK 31.3 million (15.5).

Foreign exchange effects in connection with the transla tion of foreign subsidiaries' operating profi t amounted to SEK –1.0 million.

Strategic Business Areas

Waste Treatment

Net sales for the second quarter amounted to SEK 180.8 million (133.5) and for the period of January to June, to SEK 311.0 million (212.0). The operating profi t for the second quarter amounted to SEK 24.1 million (17.1) and for the period of January to June, to SEK 22.1 million (15.3).

Net sales in the Swedish operations increased in the second quarter compared with the corresponding period in 2006. Treatment of metallic waste increased, while the volume of treated organic waste declined. The order situation for both metallic and organic waste is good. Treatment of organic waste is expected to return to its normal level in August. In the second quarter one of two contracted steam generators was delivered from the Swedish NPP Ringhals. Treatment is to start in early autumn when all regulatory licensing is expected to be in place.

Net sales in the American part of the Strategic Business Area, with operations in Erwin and Memphis, increased in the second quarter compared with the corresponding period in 2006. All units contrib uted to the increase. The operations in Erwin, which treats wet organic waste, experienced a weak start to 2007 but reported higher production volumes in the second quarter than in any previous quarter.

The British operations include treatment of waste in customers' facilities but also treatment of waste at Studsvik's Swedish facility. Operations continued to show a positive trend in the second quarter and net sales increased compared with the corresponding period of 2006. The British regulations for transporting radioactive waste for treatment outside the country's borders have been reformed, which means simplifi ed licensing processes for customers and Studsvik as supplier. After the close of the reporting period a consortium, in which Studsvik is included, was selected as the preferred bidder to negotiate a contract to operate the UK's low-level nuclear waste depository.

THOR Treatment Technologies (TTT) developed as planned. The THOR technology, which up to now has only been marketed and used in the US, is now also being introduced in Europe, for example in the UK, where the technology is expected to have several areas of application.

Decommissioning

Net sales for the second quarter amounted to SEK 60.7 million (44.7) and for the period of January to June, to SEK 117.3 million (92.5). The increase is attributable to the opera tions in the UK. The operating profi t for the second quarter amounted to SEK 3.5 million (6.5) and for the period of January to June, to SEK 7.4 million (6.0).

The British operations continued their positive develop ment. In the second quarter Studsvik won a major decom missioning contract at Sellafi eld in the UK. The assignment includes projection and construction of a waste facility. The contract will total about SEK 190 million over two years. On August 1 Studsvik acquired all the shares in the British nuclear technology consulting company Alpha Engineering. The company has 30 employees and sales of GBP 1.5 million.

The German decommissioning market is recovering, but at a slow rate. The large decommissioning projects are still at an early stage and major procurement processes have not yet started. In the second quarter Studsvik was awarded a contract to dismantle the turbine building and installations at the Obrigheim nuclear power plant. The contract is worth over SEK 30 million. Sales in Germany fell in the second quarter in comparison with the corresponding period last year.

Operating Effi ciency

Net sales for the second quarter amounted to SEK 47.4 million (42.0) and for the period of January to June, to SEK 92.5 million (92.7). The operating profi t for the second quarter amounted to SEK 1.4 million (6.5) and for the period of January to June, to SEK 3.4 million (15.6).

The fuel optimization software product area developed well and reported increased net sales compared with the corresponding period last year. The loss in sales of the fi rst quarter was made up in the second quarter. The organization has been extended and a new offi ce opened in the USA, which will affect earnings temporarily through higher costs.

The materials technology operations had lower capacity utilization in some parts of the business also in the second quarter in comparison with the corresponding period last year. The lower capacity utilization was partly caused by a low infl ow of orders, but also by unplanned repair and maintenance work in one of the production facilit ies, which also contributed to increased costs in comparison with the corresponding period last year. Materials technology accounts for the major part of the Strategic Business Area's negative difference in earnings.

Extensive investment programs in existing nuclear power production are under way in several countries and investments in new production capacity are planned. The market conditions for both operations continue to be good.

Service and Maintenance

Net sales for the second quarter amounted to SEK 41.7 million (76.7) and for the period of January to June, to SEK 66.9 million (120.9). The operating profi t for the second quarter amounted to SEK 4.9 million (6.3) and for the period of January to June, to SEK 6.5 million (3.5).

After the sale of the Swedish operations of Studsvik Stensand AB on January 1, the Strategic Business Area's operations are concentrated to Germany and its neighboring countries. Capacity utilization in the Strategic Business Area was high in the second quarter as well, resulting in higher net sales than in the corresponding period of 2006. The high capacity utilization in the Strategic Business Area is mainly due to the unplanned shutdown of a number of German reactors for overhaul.

In the second quarter Studsvik acquired the German nuclear tech nology consulting company Dr. Fary. The company is a small consulting company with expertise in licensing and safety etc, which supplements Studsvik's engineering organization well. The acquired business has been integrated in the second quarter and the acquisition was greeted positively by the market.

Investments

The Group's investments in the second quarter were SEK 28.0 million (298.3) and in the fi rst half year SEK 53.1 million (316.4). The second quarter investments include the acquisition of the consulting company Dr. Fary in Germany for SEK 12.2 million. Other investments in the second quarter were mainly in the form of reinvestment.

Financial Position and Liquidity

Cash and cash equivalents, including current investments, amounted to SEK 240.8 (183.5).

Equity amounted to SEK 572.9 (557.2).

The equity-assets ratio was 41.2 (40.8) per cent. Interest-bearing liabilities amounted to SEK 352.8 million (371.4). The Group's total borrowing was conducted entirely in foreign currencies and refers to investments and business acquisitions in the USA, Germany and the UK.

Cash Flow

Cash fl ow from operating activities before working capital changes amounted to SEK 29.3 million (43.6). The change in working capital amounted to SEK –16.3 million (–16.8). Cash fl ow from operating activities after investments amounted to SEK –39.6 (–289.6). Other changes from investing activities, SEK 45.8 million, refer entirely to the sale of Studsvik Stensand AB on January 1.

Personnel

The average number of employees was 1,125 (1,303).

Parent Company

Parent Company operations comprise the co-ordination of tasks for the Group, and assets mainly consist of shares in subsidiaries. The Parent Company's net sales during the second quarter amounted to SEK 1.3 million (1.9) and in the fi rst half year to SEK 2.7 million (4.0). The operating profi t for the second quarter amounted to SEK –17.7 million (–7.6) and for the fi rst half of the year to SEK –24.2 million (–13.0). The operating profi t was charged SEK 10.1 million for the discontinued acquisition process in the UK. The profi t after fi nancial items for the fi rst half of the year was SEK 12.4 million (3.8). The Parent Company's investments amounted to SEK 0.1 million (1.2). Cash and cash equivalents amounted to SEK 179.2 million (71.2) and interest-bearing liabilities to SEK 231.4 million (193.9).

Risks and Uncertainties

Studsvik operates on an international market that is exposed to competition. With operations in seven countries Studsvik is exposed to both business and fi nancial risks and uncertainties. The business uncertainties include the fact that Studsvik handles radioactive material and waste, which means that some of the operations must be licensed and are subject to offi cial approval, regulations and supervision. Studsvik considers itself as ful fi lling the requirements imposed by such regulations. The Group's high security culture means it has a high capacity for adjustment to new rules and terms of reference. The business uncertainties also include the fact that issues concerning nuclear technology may be subject to various expressions of opinion and debate. In such a context it cannot be ruled out that opinion may grow on matters that directly or indirectly restrict Studsvik's scope of business action. Studsvik works consistently to maintain a high level of public confi dence. Its approach to the world around is characterized by dialogue and the principle of the greatest possible transparency.

Financial risks and uncertainties mainly include fl uctuations in exchange rates and interest rates, and counterparty risk, i.e. that the Group is exposed to losses due to a counterparty's insolvency.

The responsibility for assessing risk lies with the respective subsidiary, but is examined and followed up by the Parent Company. An overall analysis of the Group's risks and how they are dealt with is given in the 2006 Annual Report, which is also available on the company's website. Apart from these risks, no further signifi cant risks are estimated to have arisen.

Outlook for 2007

The nuclear power market is expected to show a continued positive trend. Programs lasting several years for moderniza tion and increasing output that demand the type of service that Studsvik offers are in progress in several countries. Decom missioning activities are expected to increase in proportion in the British market and are expected to increase some what in Germany as well. In the American market for waste treatment both available volumes and competition are expected to increase in 2007. All in all, the Group is expected to report good organic growth and an improved operating profi t in 2007. This is in line with the assessment made in the interim report for the fi rst quarter of 2007.

Accounting policies

This interim report has been prepared in accordance with IAS 34, the Swedish Financial Accounting Standards Council's recommendation RR 31 and, for the Parent Company, the Swedish Financial Accounting Standards Council's recommenda tion RR 32:06. Otherwise, the same accounting policies are applied here as in the Annual Report for 2006. The new recommendations that apply as of January 1, 2007 have not affected the Group's fi nancial performance or position.

The interim report provides a fair review of the Group's and the Parent Company's operations, fi nancial position and perform ance and describes signifi cant risks and uncertainties to which the Parent Company and the companies that are part of the Group are exposed.

Nyköping, August 23, 2007

Anders Ullberg	Anna Karinen
Chairman	Vice Chairman
Jan Barchan	Ingemar Eliasson
Board member	Board member
Alf Lindfors	Leif Nilsson
Board member	Board member
Maria Lindberg	Roger Lundström
Employee representative	Employee representative

Magnus Groth President

This report has not been reviewed by the company's auditors.

Time Schedule for Financial Information

Interim Report January-September 2007 October 29, 2007

For Further Information Contact

Magnus Groth, President and Chief Executive Offi cer, +46 155 22 10 86 or +46 709 67 70 86 (cell phone), Jerry Ericsson, Chief Financial Offi cer, +46 155 22 10 32 or +46 709 67 70 32 (cell phone).

See also www.studsvik.se

Consolidated Income Statement

Amounts in SEK million

			January	January
	April-June 2007	April-June 2006	June 2007	June 2006	Full Year 2006
Net sales	345.8	317.5	619.0	569.1	1,219.6
Cost of services sold	–252.2	–233.7	–462.3	–429.5	–906.5
Gross profi t	93.6	83.8	156.7	139.6	313.1
Other operating income	3.8	–0.1	27.1	1.4	14.3
Selling and marketing expenses	–14.4	–9.6	–27.3	–20.7	–44.6
Administrative expenses	–51.6	–37.2	–92.7	–74.1	–164.2
Research and development costs	–12.8	–10.8	–22.9	–19.0	–39.8
Other operating expenses	–2.8	0.6	–2.9	–0.1	–7.5
Operating profi t	15.8	26.7	38.0	27.1	71.3
Financial income	2.8	15.1	5.1	19.4	23.1
Financial expenses	–5.8	–21.5	–11.8	–31.0	–37.3
Profi t after fi nancial items	12.8	20.3	31.3	15.5	57.1
Income tax	–5.4	–3.8	–1.7	–5.6	–22.3
Profi t for the period	7.4	16.5	29.6	9.9	34.8
Earnings per share, SEK
– before dilution	0.90	2.01	3.60	1.20	4.24

Condensed Consolidated Balance Sheet

Amounts in SEK million

	June 2007	June 2006	December 2006
Assets
Goodwill	297.6	316.7	304.7
Other intangible fi xed assets	56.9	50.6	50.8
Tangible fi xed assets	414.5	424.1	400.7
Financial fi xed assets	68.5	109.0	72.1
Total fi xed assets	837.5	900.4	828.3
Inventories	7.0	7.3	6.9
Receivables – trade	209.7	170.6	189.2
Other current receivables	96.4	103.7	85.4
Liquid assets	240.8	183.5	247.6
Total current assets	553.9	465.1	529.1
Total assets	1,391.4	1,365.5	1,357.4
Equity and liabilities
Equity	572.9	557.2	558.7
Borrowings	325.3	367.1	307.4
Provisions	105.2	177.6	105.7
Other non-current liabilities	4.0	4.0	4.0
Total non-current liabilities	434.5	548.7	417.1
Trade payables	64.9	50.2	41.8
Borrowings	27.5	4.3	39.8
Other current liabilities	291.6	205.1	300.0
Total current liabilities	384.0	259.6	381.6
Total equity and liabilities	1,391.4	1,365.5	1,357.4
Pledged assets	161.1	162.6	151.9
Contingent liabilities	35.3	37.3	35.3

Changes in Equity

Amounts in SEK million
	June 2007	June 2006	December 2006
Equity at the beginning of the period	558.7	566.6	566.6
Dividend to shareholders	–16.4	–16.4	–16.4
Net result for the period	29.6	9.9	34.8
Change in translation differences	1.0	–2.9	–26.3
Equity at the end of the period	572.9	557.2	558.7

Condensed Consolidated Cash Flow Statement

Amounts in SEK million
	January-June 2007	January-June 2006	Full Year 2006
Operating activities
Operating profi t	38.0	27.1	71.3
Depreciations	29.6	25.5	53.8
Other non-cash items	–20.9	12.4	–3.1
	46.7	65.0	122.0
Financial items, net	–6.7	–3.5	–14.1
Income tax paid	–10.7	–17.9	–2.4
Cash fl ow from operating activities before
changes in working capital	29.3	43.6	105.5
Changes in working capital	–16.3	–16.8	–1.4
Cash fl ow from operating activities	13.0	26.8	104.1
Investing activities
Investments	–52.6	–316.4	–344.7
Other changes from investing activities	45.8	2.4	19.6
Cash fl ow from investing activities	–6.8	–314.0	–325.1
Financing activities
Change, borrowings	2.5	165.5	168.2
Dividend to shareholders	–16.4	–16.2	–16.4
Cash fl ow from fi nancing activities	–13.9	149.3	151.8
Change in liquid assets	–7.7	–137.9	–69.2
Liquid assets at the beginning of the year	247.6	323.4	323.4
Translation difference in liquid assets	–	–2.0	–6.6
Translation difference	0.9	–	–
Liquid assets at the end of the period	240.8	183.5	247.6

Company Acquisitions

On April 1 Studsvik AB acquired 100 per cent of the shares in Dr. Fary GmbH Delta Phi and Dr. Fary Ing-Büro GmbH & Co KG, operating in Germany. The acquired operations contributed net sales of SEK 1.8 million and an operating profi t of SEK 0.3 million in the second quarter. If the operations had been included from the beginning of the year the Group's net sales in the fi rst half of the year would have been SEK 621.4 million and the operating profi t would have been SEK 39.0 million.

Acquired Net Assets and Goodwill, amounts in SEK million

Purchase price
• Cash payment	11.6
• Direct costs in connection with acquisition	0.6
Total purchase price	12,2
Fair value of net assets acquired	10.8
Goodwill	2.1
Intangible assets	8.7

Goodwill refers to the profi tability potential of the acquired operations and to the synergy effects of the operations with other parts of the Group which are important to its growth. Intangible assets consist of order book and customer relations.

Financial Ratios for the Group

Amounts in SEK million
Operating profi t

Operating profi t
Operating profi t before depreciation	67.6	52.6	125.1
Margins
Operating margin before depreciation, %	10.9	9.3	10.3
Operating margin, %	6.1	4.8	5.8
Profi t margin, %	5.1	2.7	4.7
Profi tability
Return on operating capital, %	11.3	9.2	13.0
Return on capital employed, %	9.4	11.0	11.3
Return on equity, %	10.5	3.5	6.2
Capital structure
Operating capital	684.9	745.0	658.3
Capital employed	925.7	928.6	905.8
Equity	572.9	557.2	558.7
Interest-bearing net debt	112.0	187.8	99.6
Net debt-equity ratio	0.2	0.3	0.2
Interest cover ratio	3.7	1.5	2.5
Equity-assets ratio, %	41.2	40.8	41.2
Cash fl ow
Self fi nancing ratio	0.3	0.6	0.3
Investments	53.1	316.4	344.7
Employees
Average number of employees	1,125	1,303	1,279
Net sales per employee	1.1	0.9	1.0

January-June 2007 January-

June 2006 Full Year 2006

		January	January	Full Year 2006
8,218,611	8,218,611	8,218,611	8,218,611	8,218,611
8,218,611	8,218,611	8,218,611	8,218,611	8,218,611
0.90	2.01	3.60	1.20	4.24
0.90	2.01	3.60	1.20	4.24
69.71	67.79	69.71	67.79	67.97
	April-June 2007	April-June 2006	June 2007	June 2006

Net Sales per Geographical Segment

Amounts in SEK million

			January	January
	April-June 2007	April-June 2006	June 2007	June 2006	Full Year 2006
Sweden	51.2	76.6	95.4	156.4	336.5
Europe, excluding Sweden	138.2	112.9	252.9	207.1	424.4
North America	149.2	117.4	257.4	188.3	433.2
Asia	7.2	6.5	12.9	13.2	20.3
Other markets	–	4.1	0.4	4.1	5.2
Total	345.8	317.5	619.0	569.1	1,219.6

Financial Data per SBA

Amounts in SEK million			January	January
	April-June 2007	April-June 2006	June 2007	June 2006	Full Year 2006
Waste Treatment
Net sales	180.8	133.5	311.0	212.0	508.7
Operating profi t	24.1	17.1	22.1	15.3	33.6
Assets	877.5	842.0	877.5	842.0	830.2
Liabilities	484.6	713.4	484.6	713.4	439.9
Investments	12.3	293.9	32.7	306.5	321.2
Depreciation and amortization	12.0	9.6	22.4	18.1	38.3
Average number of employees	323	245	323	281	294
Decommissioning
Net sales	60.7	44.7	117.3	92.5	189.0
Operating profi t	3.5	6.5	7.4	6.0	11.9
Assets	108.9	117.4	108.9	117.4	114.7
Liabilities	50.8	54.7	50.8	54.7	63.3
Investments	0.4	1.0	0.8	2.6	4.0
Depreciation and amortization	0.5	1.3	0.9	2.5	3.2
Average number of employees	306	373	324	373	321
Operating Effi ciency
Net sales	47.4	42.0	92.5	92.7	167.7
Operating profi t	1.4	6.5	3.4	15.6	36.4
Assets	192.0	244.0	192.0	244.0	211.0
Liabilities	146.4	162.1	146.4	162.1	193.2
Investments	2.1	2.8	3.9	4.2	10.3
Depreciation and amortization	2.0	0.4	4.0	2.6	7.4
Average number of employees	115	115	116	116	114
Service and Maintenance
Net sales	41.7	76.7	66.9	120.9	268.8
Operating profi t	4.9	6.3	6.5	3.5	17.3
Assets	129.0	162.3	129.0	162.3	179.8
Liabilities	139.0	162.2	139.0	162.2	165.6
Investments	12.6	0.2	13.0	0.7	2.6
Depreciation and amortization	0.5	0.3	0.8	1.1	2.2
Average number of employees	291	577	278	460	473
Other1)
Net sales	31.6	34.6	59.1	80.9	143.9
Operating profi t	–18.1	–7.7	–24.6	–13.3	–27.9
Assets	484.1	697.7	484.1	697.7	487.0
Liabilities	373.4	402.0	373.4	402.0	388.4
Investments	0.6	0.4	2.7	2.4	6.6
Depreciation and amortization	0.8	0.6	1.5	1.3	2.7
Average number of employees	84	75	84	73	77
Group eliminations
Net sales	–16.4	–14.0	–27.8	–29.9	–58.5
Operating profi t	–	–2.0	23.22)	–	–
Assets	–400.1	–697.5	–400.1	–697.5	–465.3
Liabilities	–375.7	–688.5	–375.7	–688.5	–451.7
Investments	–	–	–	–	–
Depreciation and amortization	–	0.5	–	–0.1	–

1) Other operations mainly refer to the Parent Company and AB SVAFO. AB SVAFO is responsible for management of older state-owned research waste and decommissioining of facilities related to previous state property operations. The costs of the operations are covered by the Nuclear Waste Fund.

2) Operating profi t includes the capital gain on the sale of the shares in Studsvik Stensand AB, SEK 23.3 million.

Five-year Review1)

Amounts in SEK million

The fi nancial information in this section is based on Studsvik's consolidated accounts for the fi nancial years of 2002 to 2006. Results for companies and activities that have been disposed of are included up to the date of the disposal, while the results of acquired companies have been included from the date of acquisition. In 2005, two SBAs were discontinued. The income statements for 2005 and 2004 have been adjusted for this reason. These activities are reported in the income statements as "Profi t from discontinued operations". Balance sheets and cash fl ow statements have not been adjusted. The fi nancial fi gures and ratios which have been completely or partially derived from the income statements have been adjusted.

January	January
June 2007	June 2006	2006	2005	2004	2003	2002
619.0	569.1	1,219.6	1,088.3	1,025.4	1,113.8	1,002.3
–462.3	–429.5	–906.5	–802.9	–839.3	–842.5	–773.5
156.7	139.6	313.1	285.4	186.1	271.3	228.8
27.1	1.4	14.3	19.8	1.7	1.5	0.4
–27.3	–20.7	–44.6	–41.9	–36.6	–34.8	–40.5
–92.7	–74.1	–164.2	–146.4	–143.4	–141.2	–139.5
–22.9	–19.0	–39.8	–35.5	–34.6	–42.1	–46.3
–2.9	–0.1	–7.5	–2.6	–0.1	–0.6	–2.4
–	–	–	–	2.6	7.3	2.3
38.0	27.1	71.3	78.8	–24.3	61.4	2.8
5.1	19.4	23.1	8.5	7.6	6.8	6.6
–11.8	–31.0	–37.3	–11.1	–15.1	–15.9	–10.5
31.3	15.5	57.1	76.2	–31.8	52.3	–1.1
–1.7	–5.6	–22.3	–28.7	56.1	–20.4	–7.5
–	–	–	13.6	–90.8	–	–
29.6	9.9	34.8	61.1	–66.5	31.9	–8.6

Condensed Balance Sheets	January June 2007	January June 2006	2006	2005	2004	2003	2002
Assets
Goodwill	297.6	316.7	304.7	127.4	120.7	123.4	77.2
Other intangible non-current assets	56.9	50.6	50.8	5.0	7.4	9.8	11.5
Property, plant and equipment	414.5	424.1	400.7	372.0	331.8	475.5	598.6
Financial non-current assets	68.5	109.0	72.1	99.0	81.5	31.3	31.5
Total non-current assets	837.5	900.4	828.3	603.4	541.4	640.0	718.8
Inventories	7.0	7.3	6.9	10.4	10.4	16.8	9.5
Receivables – trade	209.7	170.6	189.2	167.3	139.9	163.6	155.2
Other current recievables	96.4	103.7	85.4	78.8	141.2	62.1	57.7
Liquid assets	240.8	183.5	247.6	323.4	319.2	299.9	120.5
Total current assets	553.9	465.1	529.1	579.9	610.7	542.4	342.9
Total assets	1,391.4	1,365.5	1,357.4	1,183.3	1,152.1	1,182.4	1,061.7
Equity and liabilities Equity	572.9	557.2	558.7	566.6	443.2	531.6	466.5
Borrowings	325.3	367.1	307.4	192.8	186.2	213.9	189.0
Provisions	105.2	177.6	105.7	165.8	251.9	162.7	160.7
Other non-current liablities	4.0	4.0	4.0	6.4	0.1	9.2	–
Total non-current liabilities	434.5	548.7	417.1	365.0	438.2	385.8	349.7
Trade payables	64.9	50.2	41.8	54.0	44.4	40.7	46.2
Borrowings	27.5	4.3	39.8	0.1	7.8	4.9	10.9
Other current liabilities	291.6	205.1	300.0	197.6	218.5	219.4	188.4
Total current liabilities	384.0	259.6	381.6	251.7	270.7	265.0	245.5

1) 2004-2006 are reported in accordance with IFRS.

Condensed Cash Flow Statements	January	January
	June 2007	June 2006	2006	2005	2004	2003	2002
Operating profi t	38.0	27.1	71.3	92.4	–119.7	61.4	2.8
Write-downs added back	29.6	25.5	53.8	47.1	78.3	95.3	95.6
Other items not affecting liquidity	–20.9	12.4	–3.1	–6.5	146.4	–0.2	–37.6
	46.7	65.0	122.0	133.0	105.0	156.5	60.8
Financial items, net	–6.7	–3.5	–14.1	–4.8	–8.0	–9.6	–3.9
Income tax	–10.7	–17.9	–2.4	–28.2	–12.5	–17.3	–4.4
Cash fl ow before changes in working capital	29.3	43.6	105.5	100.0	84.5	129.6	52.5
Changes in working capital	–16.3	–16.8	–1.4	–82.0	19.9	28.5	–46.6
Cash fl ow before investments	13.0	26.8	104.1	18.0	104.4	158.1	5.9
Investments	–52.6	–316.4	–344.7	–45.0	–52.4	–119.6	–53.2
Cash fl ow after investments	–39.6	–289.6	–240.6	–27.0	52.0	38.5	–47.3

Financial Figures and Ratios	January	January
	June 2007	June 2006	2006	2005	2004	2003	2002
Margins
Operating margin before depreciation, %	10.9	9.3	10.3	11.6	4.7	14.1	9.8
Operating margin, %	6.1	4.8	5.8	7.2	neg	5.5	0.3
Profi t margin, %	5.1	2.7	4.7	7.0	neg	4.7	neg
Profi tability
Return on operating capital, %	11.3	9.2	13.0	20.9	neg	12.3	0.5
Return on capital employed, %	9.4	11.0	11.3	12.5	neg	9.6	1.2
Return on equity, %	10.5	3.5	6.2	12.1	neg	6.4	neg
Capital structure
Operating capital	684.9	745.0	658.3	436.2	318.0	450.4	545.8
Capital employed	925.7	928.6	905.8	759.5	637.2	750.4	666.3
Equity, SEK million	572.9	557.2	558.7	566.6	443.4	531.3	466.2
Interest-bearing net debt	112.0	187.8	99.6	–130.4	–125.2	–81.1	79.4
Net debt-equity ratio	0.2	0.3	0.2	–0.2	–0.3	–0.2	0.2
Interest cover ratio	3.7	1.5	2.5	7.9	neg	4.3	0.9
Equity-assets ratio, %	41.2	40.8	41.2	47.9	38.5	44.9	43.9
Cash fl ow
Self fi nancing ratio	0.3	0.6	0.3	0.4	2.1	1.3	0.1
Investments	53.1	316.4	344.7	45.0	52.4	119.6	53.2
Employees
Average number of employees	1,125	1,303	1,279	1,278	1,353	1,313	1,128
Net sales per employee	1.1	0.9	1.0	0.9	0.8	0.8	0.9

Quarterly Review

Amounts in SEK million
	Q2/07	Q1/07	Q4/06	Q3/06	Q2/06	Q1/06	Q4/051)	Q3/051)	Q2/051)	Q1/051)
Net sales	345.8	273.2	329.2	321.3	317.5	251.6	298.1	265.8	286.6	235.7
Operating expenses	–330.0	–251.0	–308.0	–298.3	–290.8	–251.2	–282.6	–249.1	–261.8	–215.8
Operating profi t	15.8	22.2	21.2	23.0	26.7	0.4	15.5	16.7	24.8	19.9
Financial items, net	–3.0	–3.7	3.0	–5.7	–6.4	–5.2	–3.0	1.7	0.1	–1.2
Profi t after fi nancial items	12.8	18.5	24.2	17.3	20.3	–4.8	12.5	18.4	24.9	18.7

1) Refers to profi t from continuing operations.

Parent Company Income Statement

Amounts in SEK million

Amounts i SEK million

			January	January
	April-June 2007	April-June 2006	June 2007	June 2006	Full Year 2006
Net sales	1.3	1.9	2.7	4.0	8.0
Cost of services sold	–1.2	0.0	–2.6	–3.8	–6.2
Gross profi t	0.1	1.9	0.1	0.2	1.8
Other operating costs	–17.8	–9.5	–24.3	–13.2	–29.1
Operating profi t	–17.7	–7.6	–24.2	–13.0	–27.3
Financial net	0.9	18.5	36.6	16.8	26.0
Profi t before tax	–16.8	10.9	12.4	3.8	–1.3
Appropriations	–	–	–	–	28.5
Income tax	4.7	2.1	7.5	4.1	–0.9
Profi t for the period	–12.1	13.0	19.9	7.9	26.3

Parent Company Balance Sheet

	June 2007	June 2006	December 2006
Assets
Tangible fi xed assets	1.9	1.2	2.1
Financial fi xed assets	944.5	1 054.5	977.8
Total fi xed assets	946.4	1 055.7	979.9
Current assets	32.0	29.0	56.3
Liquid assets	179.2	71.2	149.7
Total current assets	211.2	100.2	206.0
Total assets	1,157.6	1,155.9	1,185.9
Equity and liabilities
Equity	818.0	764.9	814.5
Untaxed reserves	7.2	35.7	7.2
Non-current liabilities	235.4	266.5	237.2
Current liabilities	97.0	88.8	127.0
Total liabilities	332.4	355.3	364.2
Total equity and liabilities	1,157.6	1,155.9	1,185.9

Total	8,218,611	100.0
Other shareholders	3,181,836	38.7
Total ten largest shareholders – holdings	5,036,775	61.3
Carnegie Fond AB/Småbolag	139,350	1.7
Citibank NA London	154,268	1.9
Handelsbankens Småbolagsfond	163,000	2.0
SEB Sverigefond Småbolag	171,700	2.1
SEB Sverige Småbolag Chans/Risk	182,250	2.2
Invus Investment AB	184,800	2.2
Goldman Sachs International Ltd	465,342	5.7
Dresdner Bank AG	714,561	8.7
Briban Invest AB	1,283,492	15.6
Karinen Family	1,578,012	19.2
Major Shareholders, June 30, 2007	Number of shares	Share, %

The Studsvik Share

In the second quarter the share price varied between a high of SEK 262 on May 2 and a low of SEK 223 on June 29. The opening price was SEK 253 at the beginning of the year and the closing price on June 30 was SEK 223. During the second quarter, 0.56 million shares were traded

Facts about Studsvik

Studsvik is a leading service supplier to the international nuclear industry. The company has 60 years experience of nuclear technology and radio logical services. Studsvik addresses a market in strong growth with specialized services in four Strategic Business Areas: Waste Treatment, Decommissioning, Operating Effi ciency and Service and Maintenance. Studsvik has 1,200 employees in 7 countries and the company's shares are listed on the OMX Nordic Exchange Stockholm AB, MidCap.

Production/Graphic design Studsvik AB Photo Mattias Bardå

Studsvik AB

P.O. Box 556, SE-611 10 Nyköping, Sweden Phone +46 155 22 10 00 Telefax +46 155 26 30 00 E-mail studsvik@studsvik.se www.studsvik.com