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Studsvik Interim / Quarterly Report 2009

Nov 2, 2009

3208_10-q_2009-11-02_d0598fdf-e74a-47cc-94af-c7f09526142b.pdf

Interim / Quarterly Report

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Interim Report January-September 2009

  • The operating loss for the third quarter amounted to SEK –7.8 million (–4.4).
  • The loss is attributable to the USA and UK, while Germany and Global Services continued to develop strongly.
  • Overall, a positive operating profi t and cash fl ow are expected for the second half of the year.
  • A fi rst contract for treatment of low-level waste from Italy was signed during the quarter.
  • After the close of the reporting period TTT signed an order for a waste treatment facility in the USA.
  • After the close of the reporting period the personal dosimetry operations were sold, giving a capital gain of SEK 6.5 million.
July
September
2009
July
September
2008
January
September
2009
January
September
2008
Full year
2008
Net sales, SEK million 275.0 274.2 867.8 964.8 1,285.9
Operating profi t, SEK million –7.8 –4.4 –68.1 20.7 12.7
Profi t after tax, SEK million –9.7 –3.7 –63.0 8.4 1.1
Profi t per share after tax, SEK –1.19 –0.31 –7.67 0.68 –0.05
Equity per share, SEK 63.13 70.28 63.13 70.28 74.32
Equity-assets ratio, % 37.9 42.3 37.9 42.3 40.4

Net sales

Net sales for the third quarter amounted to SEK 275.0 million (274.2) and for the period January-September, to SEK 867.8 million (964.8). Net sales increased in local currencies by 3.1 per cent in the third quarter and decreased by 15.5 per cent in the period January-September. There is growth in the three segments; Sweden, Germany and Global Services, while the other two segments report falling sales.

Profi t

Operating profi t for the third quarter amounted to SEK –7.8 million (–4.4) and for the period January-September to SEK –68.1 million (20.7). The Group's loss is attributable to the USA and the UK. The operating margin in the other segments was 8.9 per cent (10.2) in the third quarter and 8.0 per cent (8.4) in January-September. Foreign exchange effects had a negative impact of SEK –1.1 million (1.0) on the operating profi t for the third quarter and of SEK –9.9 million (1.0) for the period January-September.

Net fi nancial income deteriorated by SEK 6.4 million due to increased net interest-bearing debt and increased borrowing costs.

Sweden

Net sales in the third quarter were slightly lower than the previous year and amounted to SEK 34.5 million (38.4). In January-Sep tember sales increased by 5.5 per cent to SEK 115.8 million (109.8). Operating profi t in the third quarter fell to SEK 3.5 million (11.5) and in January-September to SEK 9.1 million (22.0). The operating margin for January-September fell to 7.9 per cent (20.0).

The deterioration in earnings is due to a poorer product mix and an unplanned six-day production stoppage at the melting plant and longer throughput times for the large components treated in 2009. New equipment has been brought into operation and the production bottlenecks are being successively eliminated. The market and order situation continue to be good. During the quarter Studsvik signed its fi rst order for treatment of low-level waste from Italy. The order is for 270 tonnes of organic waste from the nuclear power facility in Caorso.

United Kingdom

Net sales in the third quarter fell to SEK 18.4 million (34.2) and amounted to SEK 65.8 million (113.9) in January-September. The operating profi t for the third quarter was SEK –7.3 million (0.6) and for January-September SEK –40.8 million (2.0).

Capacity utilization in the consulting operations increased after two weak quarters, but did not compensate for continued low capacity utilization in the decommissioning operations. Decommissioning projects have been focused on smaller and clearly defi ned contracts since the end of the fi rst half-year. The decommissioning market contracted during the year as a consequence of the tight fi nancial situation in the British economy. Extensive marketing initiatives are being carried out, but the order book was at a low level at the end of the third quarter.

The metallic recycling facility in Workington became operational in September, when the fi rst volumes of commercial material were also processed.

Germany

Net sales increased in the third quarter to SEK 126.8 million (98.1). Net sales for the period January-September amounted to SEK 337.0 million (277.5), which corresponds to an increase of 7.6 per cent in local currency. The operating profi t for the third quarter was SEK 9.6 million (3.1) and for January-September SEK 20.2 million (14.4). The operating margin continued to improve during the quarter, to 7.6 per cent (3.1).

The market and order situation in the German operations is good. Profi tability improved in both engineering and services and decommissioning. Annual maintenance work at power-producing reactors continued at a normal rate during the third quarter. Ongoing decommissioning projects in Germany and Belgium went according to plan and at a good level of profi tability.

USA

Net sales for the third quarter amounted to SEK 42.2 million (47.4) and for the period January-September, to SEK 149.6 million (272.0). The operating loss for the third quarter amounted to SEK –12.8 million (–17.3) and for the period January-September, to SEK –54.3 million (–5.2).

Another two contracts were signed for the Erwin operations. Contracts have now been signed covering 51 of the USA's 103 reactors. The volumes delivered to the facility were, however, low and some deliveries were postponed. Consequently the Erwin operations reported a continued loss. The effi ciency improvements made in Memphis have resulted in more robust operations that are profi table at considerably lower volumes than before. The third quarter's infl ow of material for processing was, however, low, resulting in a minor loss in the quarter. The low waste volumes, both in Erwin and Memphis, are mainly a consequence of the economic conditions.

In the USA a small consulting business has been started, focusing on Studsvik's patented THOR technology. The business is profi table and the customer base consists of both American and international customers. The interest in evaluating THOR technology for different types of waste is great.

THOR Treatment Technologies (TTT) signed an order in October for a waste treatment facility at the US Department of Energy's facilities at Savannah River. The order value is USD 55 million. The work will start in 2010 and is expected to continue for three years. TTT is a joint venture with the American URS Corporation. Studsvik has a 50 per cent share in TTT.

Global Services

Net sales rose in the third quarter to SEK 51.2 million (41.6). Net sales in January-September were SEK 177.1 million (133.6), which corresponds to an increase of 16.8 per cent in local currencies. Operating profi t for the third quarter increased to SEK 5.8 million (3.6) and to SEK 21.3 million (7.6) for the period January-September. Profi tability improved during the year and the operating margin for January-September was 12.0 per cent (5.7).

In materials technology demand continued to be strong for reactor fuel and materials testing associated with the ageing, overhaul and modernization of nuclear power plants around the world. Modernization, modifi cation and new production also create heavy demand for consultants with advanced nuclear engineering skills, which resulted in stronger earnings for the consulting operations. ALARA Engineering, which was acquired in late 2008, performed well. Software for fuel optimization reported a profi t that was by and large on the same level as the previous year.

After the close of the reporting period Studsvik agreed to sell its personal dosimetry operations to the American company Landauer. The sale means a capital gain of SEK 6.5 million, which will be reported in the fourth quarter.

Investments

The Group's investments in the third quarter were SEK 23.8 million (20.2) and for the period January-September, to SEK 74.6 million (60.3). Investments in the new treatment facility in the United Kingdom of SEK 8.3 million are included in the third quarter and of SEK 51.8 million in January-September.

Cash fl ow

Cash fl ow from operating activities before working capital changes in the third quarter was SEK –6.0 million (13.7) and SEK 2.9 million (55.6) for the period January-September.

Working capital fell in the third quarter by SEK 41.0 million (–14.4) and in the period January-September by SEK 0.2 million (–70.5).

Cash fl ow from operating activities after investments was SEK 10.9 million (–22.4) in the third quarter and SEK –86.4 million (–71.1) for the period January-September.

Financial position and liquidity

Cash and cash equivalents, including current investments, amounted to SEK 53.0 million (124.3) at the close of the quarter.

Equity amounted to SEK 519.1 million (577.6) and the equityassets ratio was 37.9 per cent (42.3).

Interest-bearing liabilities amounted to SEK 357.1 million (361.7). The Group's total borrowing is conducted entirely in foreign currencies through investments and business acquisitions in the USA, Germany and the UK. An exchange rate effect arises on translation of Swedish kronor, which in the third quarter reduced liabilities by SEK 34.2 million.

Net interest-bearing debt increased to SEK 304.1 million (237.4).

Personnel

The average number of employees was 1,163 (1,115).

Parent company

Parent company operations comprise the coordination of tasks for the Group, and assets mainly consist of shares in subsidiaries. The parent company's net sales in the third quarter were SEK 2.9 million (2.8) and for the period January-September, to SEK 8.4 million (8.1). The operating loss for the third quarter amounted to SEK –6.6 million (–6.0) and for the period January-September, to SEK –23.6 million (–20.1). Profi t after fi nancial items in the third quarter was SEK –5.0 million (–5.8) and for the period January-September, to SEK 7.2 million (–19.5).

The parent company's investments amounted to SEK 0 million (0.1). Cash and cash equivalents amounted to SEK 22.1 million (73.0) and interest-bearing liabilities to SEK 205.4 million (206.2).

Nomination committee

Before the 2010 Annual General Meeting Studsvik's nomination committee is composed as follows:

Jan Barchan, Briban Invest AB Peter Rudman, Nordea Funds Bill Tunbrandt, representative of the Karinen family Anders Ullberg, Chairman of the Board of Studsvik

Risks and uncertainties

Studsvik operates in an international, competitive market and i thereby exposed to both business and fi nancial risks and uncertainties.

The business uncertainties include the fact that Studsvik and Studsvik's customers handle radioactive material and waste, which requires legal or regulatory licensing. Licensing is required for production facilities, but also for individual activities, such as transport and transfer of material. This means that the operations of Studsvik and Studsvik's customers are exposed to delays in these licensing processes, which may result in shifts in delivery and production plans.

The business risks also include the fact that in connection with large decommissioning projects and other service contracts Studsvik accepts fi xed price contracts. These projects require effective risk management and project management. Studsvik also supplies services with a high technical content to qualifi ed customers. As a supplier, Studsvik is responsible for timely delivery, functionality and other qualities of services ordered. If Studsvik's project management or risk management is defi cient, or if a service is delivered late or does not fulfi ll requirements that a customer can rightfully impose, Studsvik risks loss of income, for example as a consequence of costs incurred for redress through replacement or damages.

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 emerge 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 the company's ability to uphold key ratios (covenants) that regulate borrowing. The fi nancial risks also include counterparty risk, i.e. that the Group can be exposed to losses due to counterparty insolvency.

The responsibility for assessing risk lies with the respective subsidiary, but is examined and followed up at Group level. An overall analysis of the Group's risks and how they are dealt with is given in the Annual Report for 2008, which is also available on the company's website.

Apart from these risks, no further signifi cant risks are estimated to have arisen.

Outlook

Modernization and increasing output of nuclear power plants is taking place in several of the countries where Studsvik operates. Decommissioning of nuclear facilities is expected to continue at an unchanged rate. Demand for the services of the type Studsvik offers, including waste treatment, materials testing and consulting services, is strong.

Sweden, Germany and Global Services have a good volume of orders for the fourth quarter of 2009. The United Kingdom is nego tiating a contract for treatment of metallic material in the fourth quarter at the Workington facility. In the USA the contracted customer base of the Erwin facility provides the foundation for long-term profi tability. Studsvik estimates that the facility will be able to achieve satisfactory capacity utilization in the fourth quarter.

In view of this a positive operating profi t and cash fl ow are expected for the Group in the fourth quarter, which taken together will give a positive operating profi t and cash fl ow in the second half of the year. This is in line with the assessment made in the halfyearly report.

Accounting policies

This interim report was prepared in accordance with IAS 34, IAS 1 and the Swedish Financial Reporting Board recommendation RFR 2.1.

Nyköping, November 2, 2009

On behalf of the Board of Directors

Magnus Groth President

Review report

We have performed a review of the interim report for Studsvik AB (publ) for the period January 1 to September 30, 2009. The Board of Directors and the President are responsible for the preparation and presentation of this interim fi nancial report in accordance with IAS 34 and the Annual Accounts Act. Our responsibility is to express a conclusion on this interim report based on our review. We conducted our review in accordance with the Standard on Review Engagements 2410 "Review of Interim Financial Information Performed by the Independent Auditor of the Entity". A review consists of making inquiries, primarily of persons responsible for fi nancial and accounting matters, and applying analytical and other review procedures. A review has a different focus and is substantially more limited in scope than an audit that is conducted in accordance with Standards on Auditing in Sweden (RS) and other generally accepted auditing practices. The procedures performed in a review do not enable us to obtain a level of assurance that would make us aware of all signifi cant matters that might be identifi ed in an audit. Therefore, the conclusion that is expressed on the basis of a review does not give the same level of assurance as a conclusion based on an audit.

Based on our review, nothing has come to our attention that causes us to believe that the accompanying interim report does not, in all material respects, accord with IAS 34 and the Annual Accounts Act and, for the parent company, with the Annual Accounts Act.

Stockholm, November 2, 2009

PricewaterhouseCoopers AB

Magnus Brändström Göran Tidström Authorized public accountant Authorized public accountant Auditor in charge

Time schedule for fi nancial information

Year-end Report 2009 February 11, 2010 Interim Report January–March 2010 April 29, 2010 Interim Report January-June 2010 July 21, 2010 Interim Report January-September 2010 November 25, 2010

For further information please contact

Magnus Groth, President and Chief Executive Offi cer, +46 155 22 10 86 or Jerry Ericsson, Chief Financial Offi cer, +46 155 22 10 32.

The interim report will be presented at a conference call to be held in English, on November 2, at 3.30 p.m. CET. Further information for those interested in participating is available at www.studsvik.se.

Group statement of comprehensive income

Amounts in SEK million
Amounts in SEK million July
September
2009
July
September
2008
January
September
2009
January
September
2008
Full year 2008
Net sales 275.0 274.2 867.8 964.8 1,285.9
Cost of services sold –214.8 –210.5 –693.5 –735.5 –986.3
Gross profi t 60.2 63.7 174.3 229.3 299.6
Other operating income –2.2 0.3 3.0 1.8 2.8
Selling and marketing expenses –11.3 –12.3 –40.1 –39.3 –52.1
Administrative expenses –44.8 –46.7 –149.9 –140.9 –194.8
Research and development costs –10.5 –9.1 –35.3 –27.3 –44.8
Share in earnings from associated companies 0.8 1.4 3.4 1.4 8.5
Other operating expenses 0.0 –1.7 –23.5 –4.3 –6.5
Operating profi t –7.8 –4.4 –68.1 20.7 12.7
Financial income 7.9 1.5 8.1 4.1 7.4
Financial expenses –13.4 –4.6 –25.9 –15.5 –19.4
Profi t after fi nancial items –13.3 –7.5 –85.9 9.3 0.7
Income tax 3.6 3.8 22.9 –0.9 0.4
Profi t for the period –9.7 –3.7 –63.0 8.4 1.1
Other comprehensive income
Translation differences on foreign subsidiaries –31.5 39.2 –28.7 13.8 60.2
Cash fl ow hedges 10.0 - 11.1 - –0.4
Income tax on items recognized in other comprehensive
income –2.6 - –2.9 - 0.1
Other comprehensive income for the period,
net after tax
–24.1 39.2 –20.5 13.8 59.9
Total comprehensive income for the period –33.8 35.5 –83.5 22.2 61.0
Income for the period attributable to
Parent company's shareholders –9.7 –2.5 –63.0 5.6 –0.4
Minority interest 0.0 –1.2 0.0 2.8 1.5
Total comprehensive income attributable to
Parent company's shareholders –33.8 36.0 –83.5 19.0 58.5
Minority interest 0.0 –0.5 0.0 3.2 2.5
Earnings per share calculated on income attributa
ble to the parent company's shareholders during
the period, SEK
Before dilution –1.19 –0.31 –7.67 0.68 –0.05
After dilution –1.19 –0.31 –7.67 0.68 –0.05

Group statement of fi nancial position

Amounts in SEK million

September 2009 September 2008 December 2008
Assets
Goodwill 335.0 323.0 363.0
Other intangible non-current assets 45.7 51.6 56.4
Property, plant and equipment 492.2 434.1 503.7
Financial non-current assets 132.0 79.4 101.4
Total non-current assets 1,004.9 888.1 1,024.5
Inventories 25.0 33.0 28.8
Trade receivables 217.6 196.2 201.7
Other current receivables 67.4 123.8 108.1
Liquid assets 53.0 124.3 147.7
Total current assets 363.0 477.3 486.3
Total assets 1,367.9 1,365.4 1,510.8
Equity and liabilities
Equity attributable to parent company's shareholders 518.8 570.9 610.5
Minority interest 0.3 6.7 0.3
Borrowings 311.2 237.7 350.5
Provisions 130.2 95.2 126.6
Other non-current liabilities 9.3 9.5 10.4
Total non-current liabilities 450.7 342.4 487.5
Trade payables 80.8 78.1 97.4
Borrowings 45.9 124.1 37.7
Other current liabilities 271.4 243.2 277.4
Total current liabilities 398.1 445.4 412.5
Total equity and liabilities 1,367.9 1,365.4 1,510.8
Pledged assets 202.0 197.3 224.2
Contingent liabilities 64.5 58.0 58.2

Changes in equity

Amounts in SEK million
Other to the parent
Share contributed Retained company's Minority
capital capital Reserves earnings shareholders interest Total equity
Opening balance at January 1, 2008 8.2 226.0 –9.9 344.1 568.4 3.4 571.8
Total comprehensive income for the period 58.9 –0.4 58.5 2.5 61.0
Transfers within equity –0.7 0.7 0.0 0.0
Dividend to shareholders –16.4 –16.4 –16.4
Acquisition of minority equity interest –5.6 –5.6
Closing balance at December 31, 2008 8.2 225.3 49.0 328.0 610.5 0.3 610.8
Opening balance at January 1, 2009 8.2 225.3 49.0 328.0 610.5 0.3 610.8
Total comprehensive income for the period –20.9 –62.6 –83.5 –83.5
Dividend to shareholders –8.2 –8.2 –8.2
Closing balance at September 30, 2009 8.2 225.3 28.1 257.2 518.8 0.3 519.1

Statement of cash fl ow

Amounts in SEK million July July January January
September September September September Full year 2008
2009 2008 2009 2008
Operating activities
Operating profi t –7.8 –4.4 –68.1 20.7 12.7
Depreciation 16.7 16.3 57.0 47.9 67.2
Adjustment for non-cash items 1.0 5.3 34.9 1.0 –6.2
9.9 17.2 23.8 69.6 73.7
Financial items, net –6.5 –3.4 –17.8 –11.4 –13.0
Income tax paid –9.4 –0.1 –3.1 –2.6 1.2
Cash fl ow from operating activities before changes
in working capital –6.0 13.7 2.9 55.6 61.9
Changes in working capital 41.0 –14.4 0.2 –70.5 –32.4
Cash fl ow from operating activities 35.0 –0.7 3.1 –14.9 29.5
Investing activities
Investments –23.8 –20.2 –74.6 –60.3 –103.3
Other changes from investing activities –0.3 –1.5 –14.9 4.1 4.9
Cash fl ow from investing activities –24.1 –21.7 –89.5 –56.2 –98.4
Cash fl ow from operating activities after invest
ments and other changes from investing activities 10.9 –22.4 –86.4 –71.1 –68.9
Financing activities
Change in borrowings 0.0 25.3 2.4 32.7 46.6
Dividend to shareholders 0.0 - –8.2 –16.4 –16.4
Cash fl ow from investing activities 0.0 25.3 –5.8 16.3 30.2
Changes in liquid assets 10.9 2.9 –92.2 –54.8 –38.7
Liquid assets at the beginning of the year 43.2 120.8 147.7 176.9 176.9
Translation difference in liquid assets –1.1 0.6 –2.5 2.2 9.5
Liquid assets at the end of the period 53.0 124.3 53.0 124.3 147.7

Financial ratios for the Group

Amounts in SEK million January January
September September
2009 2008 Full year 2008
Operating profi t
Operating profi t before depreciation –11.1 68.6 79.9
Margins
Operating margin before depreciation, % –1.3 7.1 6.2
Operating margin, % –7.9 2.2 1.0
Profi t margin, % –9.9 1.0 0.1
Profi tability
Return on operating capital, % –10.9 3.6 1.6
Return on capital employed, % –8.5 3.6 2.1
Return on equity, % –14.9 1.3 0.2
Capital structure
Operating capital 823.2 815.1 851.3
Capital employed 876.2 939.4 999.0
Equity 519.1 577.6 610.8
Interest-bearing net debt 304.1 237.4 240.5
Net debt-equity ratio 0.6 0.4 0.4
Interest cover ratio –2.3 1.6 1.0
Equity-assets ratio, % 37.9 42.3 40.4
Cash fl ow
Self fi nancing ratio neg neg 0.2
Investments 71.1 60.3 108.4
Employees
Average number of employees 1,163 1,115 1,130
Net sales per employee 1.0 1.2 1.1

Data per share

July July January January
September September September September
2009 2008 2009 2008 Full year 2008
Number of shares at the end of the period 8,218,611 8,218,611 8,218,611 8,218,611 8,218,611
Average number of shares 8,218,611 8,218,611 8,218,611 8,218,611 8,218,611
Earnings per share before dilution, SEK –1.19 –0.31 –7.67 0.68 –0.05
Earnings per share after dilution, SEK –1.19 –0.31 –7.67 0.68 –0.05
Equity per share, SEK 63.13 70.28 63.13 70.28 74.32

Net sales per geographical segment

Amounts in SEK million July July January January
September September September September
2009 2008 2009 2008 Full year 2008
Sweden 39.9 42.5 147.4 151.5 226.4
Europe, excluding Sweden 191.2 168.3 513.1 494.1 678.4
North America 37.9 60.2 181.5 304.7 369.0
Asia 2.6 3.2 21.0 14.3 11.9
Other markets 3.4 - 4.8 0.2 0.2
Total 275.0 274.2 867.8 964.8 1,285.9

Financial data per segment

Amounts in SEK million United Global Elimina
July-September 2009 Sweden Kingdom Germany USA Services Other tions Group
External sales revenue 29.5 18.4 126.5 41.6 51.2 7.8 - 275.0
Revenue from segment 5.0 - 0.3 0.6 - 2.4 –8.3 0.0
Operating profi t 3.5 –7.3 9.6 –12.8 5.8 –6.6 - –7.8
Assets 133.5 155.8 286.4 588.4 148.1 393.9 –338.2 1,367.9
Liabilities 73.4 151.3 211.3 363.6 97.3 290.1 –338.2 848.8
Investments 1.9 8.5 2.3 0.8 4.9 1.9 - 20.3
Depreciation/amortization 2.7 0.2 1.8 8.6 1.9 1.5 - 16.7
Average number of employees 90 75 627 109 137 95 - 1,133
United Global Elimina
July-September 2008 Sweden Kingdom Germany USA Services Other tions Group
External sales revenue 34.2 34.2 97.5 47.4 40.7 20.2 - 274.2
Revenue from segment 4.2 - 0.6 - 0.9 3.1 –8.8 0.0
Operating profi t 11.5 0.6 3.1 –17.3 3.6 –5.9 - –4.4
Assets 107.0 114.2 268.9 592.2 101.4 401.1 –219.4 1,365.4
Liabilities 65.1 73.2 193.4 315.9 54.4 305.2 –219.4 787.8
Investments 0.5 10.0 1.2 3.2 1.1 4.2 - 20.2
Depreciation/amortization 2.1 0.8 2.4 8.5 1.5 1.0 - 16.3
Average number of employees 78 94 569 135 128 87 - 1,091
United Global Elimina
January-September 2009 Sweden Kingdom Germany USA Services Other tions Group
External sales revenue 99,2 65,8 335,7 148,4 175,4 43,3 - 867,8
Revenue from segment 16,6 - 1,3 1,2 1,7 7,0 –27,8 0,0
Operating profi t 9,1 –40,8 20,2 –54,3 21,3 –23,6 - –68,1
Assets 133,5 155,8 286,4 588,4 148,1 393,9 –338,2 1,367,9
Liabilities 73,4 151,3 211,3 363,6 97,3 290,1 –338,2 848,8
Investments 3,5 52,0 3,3 2,4 7,6 2,3 - 71,1
Depreciation/amortization 8,0 2,1 6,3 30,7 5,7 4,2 - 57,0
Average number of employees 88 77 668 100 136 94 - 1,163
United Global Elimina
January-September 2008 Sweden Kingdom Germany USA Services Other tions Group
External sales revenue 91,3 113,9 276,3 272,0 131,3 80,0 - 964,8
Revenue from segment 18,5 - 1,2 - 2,3 9,5 –31,5 0,0
Operating profi t 22,0 2,0 14,4 –5,2 7,6 –20,1 - 20,7
Assets 107,0 114,2 268,9 592,2 101,4 401,1 –219,4 1,365,4
Liabilities 65,1 73,2 193,4 315,9 54,4 305,2 –219,4 787,8
Investments 6,9 16,5 5,5 16,5 5,5 9,4 - 60,3
Depreciation/amortization 6,0 3,0 6,5 24,6 5,0 2,8 - 47,9
Average number of employees 77 94 569 165 124 86 - 1,115
United Global Elimina
Full year 2008 Sweden Kingdom Germany USA Services Other tions Group
External sales revenue 126.1 148.6 386.3 317.1 192.4 115.4 1,285.9
Revenue from segment 26.3 - 1.6 - 3.6 12.9 –44.4 0.0
Operating profi t 30.7 –3.2 23.3 –22.4 13.0 –28.7 12.7
Assets 133.9 133.1 301.4 658.6 147.6 434.3 –298.1 1,510.8
Liabilities 78.8 98.7 211.6 365.3 120.4 323.3 –298.1 900.0
Investments 7.8 38.3 7.8 26.4 14.4 13.7 - 108.4
Depreciation/amortization 8.2 3.9 8.8 35.4 7.0 3.9 - 67.2
Average number of employees 78 86 594 156 129 87 - 1,130

Quarterly review

Amounts in SEK million 2007 2008 2009
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3
Net sales 273.2 345.8 325.1 370.6 320.0 370.6 274.2 321.1 277.0 315.8 275.0
Operating expenses –251.0 –330.0 –316.3 –355.3 –327.0 –338.5 –278.6 –329.1 –298.2 –354.9 –282.8
Operating profi t 22.2 15.8 8.8 15.3 –7.0 32.1 –4.4 –8.0 –21.2 –39.1 –7.8
Financial items, net –3.7 –3.0 –4.2 –5.3 –3.5 –4.8 –3.1 –0.6 –5.4 –6.9 –5.5
Profi t after fi nancial items 18.5 12.8 4.6 10.0 –10.5 27.3 –7.5 –8.6 –26.6 –46.0 –13.3

Parent company income statement

Amounts in SEK million
------------------------ --
Amounts in SEK million July July January January
September September September September
2009 2008 2009 2008 Full year 2008
Net sales 2.9 2.8 8.4 8.1 10.8
Cost of services sold –1.4 –1.2 –5.3 –4.7 –7.9
Gross profi t 1.5 1.6 3.1 3.4 2.9
Other operating costs –8.1 –7.6 –26.7 –23.5 –31.6
Operating profi t –6.6 –6.0 –23.6 –20.1 –28.7
FInancial net 1.6 0.2 30.8 0.6 2.9
Profi t before tax –5.0 –5.8 7.2 –19.5 –25.8
Appropriations 0.0 0.0 0.0 0.0 4.3
Income tax –0.2 2.8 4.8 6.5 7.0
Profi t for the period –5.2 –3.0 12.0 –13.0 –14.5

Parent company balance sheet

Amounts in SEK million

September 2009 September 2008 December 2008
Assets
Property, plant and equipment 0.5 0.8 0.7
Financial non-current assets 1,081.5 980.4 1,015.2
Total non-current assets 1,082.0 981.2 1,015.9
Current assets 24.8 38.2 40.2
Liquid assets 22.1 73.0 84.1
Total current assets 46.9 111.2 124.3
Total assets 1,128.9 1 ,092.4 1,140.2
Equity and liabilities
Equity 828,6 803,7 824.8
Untaxed reserves 2,5 6,9 2.5
Provisions 2,0 - -
Non-current liabilities 212,5 237,0 249.2
Current liabilities 83,3 44,8 63.7
Total liabilities 295,8 281,8 312.9
Total equity and liabilities 1,128,9 1,092,4 1,140.2

Major shareholders, September 30, 2009

Number of shares Share, %
The Karinen family 1,749,552 21.3
Briban Invest AB 1,285,492 15.6
Allianz Global Investors 714,561 8.7
Erste Bank Österreichische Sparkassen 373,145 4.5
State Street Bank, Boston 269,390 3.3
Invus Investment AB 199,800 2.4
Credit Agricole Suisse SA 199,056 2.4
JP Morgan Chase Bank, England 185,482 2.3
Citibank NA, London 154,868 1.9
Blue Whale Ltd 131,246 1.6
Total ten largest shareholders – holdings 5,262,592 64.0
Other shareholders 2,956,019 36.0
Total 8,218,611 100.0

The Studsvik share

During the third quarter, the share price varied between a high of SEK 63.50 on September 23, and a low of SEK 52.75 on August 6. The opening price was SEK 55 at the beginning of the year and the closing price on September 30 was SEK 62. During the third quarter, 1.43 million shares were traded and during the period January-September 3.15 million shares were traded.

Facts about Studsvik

Studsvik offers a range of advanced technical services to the international nuclear power industry in such areas as waste treatment, decom missioning, engineering & services, and operating effi ciency. The company has 60 years experience of nuclear technology and radiological services. Studsvik is a leading supplier on a rapidly expanding market. The business is conducted through fi ve segments: Sweden, United Kingdom, Germany, USA and Global Services. Studsvik has 1,100 employees in 8 countries and the company's shares are listed on the NASDAQ OMX Stockholm.

This report is a translation of the Swedish statutory report. In the event of any discrepancies between this document and the Swedish original, the latter shall govern. The content of this interim report may not, in whole or part, be reproduced or stored in a machine-readable medium without the previous permission of Studsvik AB (publ).

Production/Graphic design: Studsvik AB Photo: Jan Lindblad Jr

Studsvik AB

P.O. Box 556, SE-611 10 Nyköping, Sweden Telephone +46 155 22 10 00 Fax +46 155 26 30 00 E-mail [email protected] www.studsvik.com