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Studsvik Interim / Quarterly Report 2009

Jul 21, 2009

3208_ir_2009-07-21_24888920-9aa0-472f-b4c0-8862d6c457dc.pdf

Interim / Quarterly Report

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Interim Report January-June 2009

  • Operating profi t for the second quarter amounted to SEK –39.1 million (32.1), including project and structural costs in the United Kingdom of SEK –22.8 million. •
  • The USA is reversing a negative trend with higher sales and substantially improved earnings compared with the fi rst quarter. •
  • Stable operations and continued good performance in Sweden, Germany and Global Services. •
  • The second half of the year is expected to show a positive operating profi t and cash fl ow. •
April-June
2009
April-June
2008
January-June
2009
January-June
2008
Full year
2008
Net sales, SEK million 315.8 370.6 592.8 690.6 1,285.9
Operating profi t, SEK million –39.1 32.1 –60.3 25.1 12.7
Profi t after tax, SEK million –33.5 19.1 –53.3 12.1 1.1
Profi t per share after tax, SEK –4.06 1.97 –6.48 0.99 –0.05
Equity per share, SEK 67.28 65.97 67.28 65.97 74.32
Equity-assets ratio, % 37.7 42.7 37.7 42.7 40.4

Net sales

Net sales for the second quarter amounted to SEK 315.8 million (370.6) and for the period January-June, to SEK 592.8 million (690.6). The decrease in sales is mainly attributable to the USA operations, where sales, while certainly increasing in the Erwin facility compared with the fi rst quarter, did not reach last year's high level. In the United Kingdom too, sales were lower than last year due to continued low capacity utilization in project operations. Sales increased in the other three segments by 5 per cent in local currency.

Profi t

Operating profi t for the second quarter amounted to SEK –39.1 million (32.1) and for the period January-June to SEK –60.3 million (25.1). The loss in the second quarter is mainly attributable to the United Kingdom, where considerable project losses in the decommissioning area reduced earnings. As a consequence of the weak performance, the segment's operations have been restructured and the management replaced. The costs of this are charged to the profi t for the quarter. Foreign exchange effects had a negative impact of SEK –2.5 million (–3.2) on the operating profi t for the second quarter and of SEK –9.1 million (–1.7) for the period January-June.

Sweden

Net sales in the second quarter were on the whole unchanged and amounted to SEK 40.1 million (40.7). In January-June sales increased by 14 per cent to SEK 81.3 million (71.4). Operating profi t in the second quarter fell to SEK –1.1 million (9.6) and in January-June to SEK 5.6 million (10.5).

The market and order situation continues to be very good, but profi t did not reach last year's level due to lower earnings for the incineration facility and the large components production line. The incineration facility underwent a planned overhaul, which temporarily reduced production. The production line for treatment of large components had high capacity utilization, but bottlenecks in the facility meant increased production costs. Measures are being taken to remove these bottlenecks in the short term and to increase capacity in the long term for the facility. A contract worth about SEK 250 million was signed in May with Bruce Power in Canada for treatment of 32 steam generators in the period 2010-2018.

The facility for treatment and melting of metallic material reported higher production volumes and earnings than the previous year.

United Kingdom

Net sales in the second quarter fell to SEK 20.7 million (39.2) and in January-June to SEK 47.4 million (79.7). The operating profi t for the second quarter was SEK –33.5 million (–1.5) and for January-June SEK –33.5 million (1.4). The profi t in the second quarter is reduced by project losses and structural costs of SEK 22.8 million.

The problems in the decommissioning area continued during the quarter. As reported in June, several decommissioning projects were written down in total by SEK 12.7 million. Operations in the area were then concentrated on smaller projects, waste treatment and consulting services. In consequence of this, the remaining major decommissioning contract was prematurely terminated, entailing a further reduction in profi t of SEK 7.7 million.

The order book continued at a low level, resulting in unsatisfactory capacity utilization during the quarter and the operations reported a loss. The change in direction of the operations means a reduction of about 25 per cent in the organization.

The facility for treatment of metallic material in Workington was opened in May. Processing of radioactive material is expected to start during the third quarter after fi nal regulatory approval of the facility.

Germany

Net sales increased in the second quarter to SEK 113.3 million (102.0), which corresponded to an increase of 3 per cent in local currency. Net sales for the period January-June amounted to SEK 210.2 million (179.4). The operating profi t for the second quarter was SEK 5.7 million (6.6) and for January-June SEK 10.6 million (11.3). The lower margin is attributable to the service and maintenance area.

Annual maintenance work at power-producing reactors takes place in February-October, but varies in scope during this period. Capacity utiliza tion in the second quarter was lower than the previous year. Capacity utilization in the consulting operations was good.

Several projects of varying size are under way in decommissioning. In the second quarter work was started in Belgium as part of the four-year contract with Belgonucleaire, worth EUR 7.2 million, which was signed in the fi rst quarter.

USA

Net sales for the second quarter amounted to SEK 69.7 million (121.2) and for the period January-June, to SEK 107.4 million (224.6). The operat ing loss for the second quarter amounted to SEK –7.8 million (25.5) and for the period January-June, to SEK –41.5 million (12.1).

The Erwin operations reported rising volumes with resulting clear improve ment in profi t after three quarters of very low volumes and losses. Capacity utilization and profi t did not, however, reach last year's high level, when customers were emptying their stores of waste before the Barnwell repository closed. Contracts under the new business model for the operations have been signed with fi ve nuclear power producers with a total of 36 reactors. Negotiations are in progress with several nuclear power producers.

The Memphis-based waste operations reported a profi t in the second quarter. The profi t did not reach last year's level due to changed market conditions in which customers in the short term are keeping down costs and expenditure. The effi ciency improvements made in Memphis have resulted in more robust operations that are profi table at considerably lower volumes than before.

The logistics operations were sold in the second quarter to R&R Trucking.

Global Services

Net sales rose in the second quarter to SEK 61.9 million (44.8), which corresponds to an increase of 29 per cent in local currencies, and amounted to SEK 125.9 million (92.0) in the period January-June. Operat ing profi t for the second quarter increased to SEK 6.2 million (–0.3) and to SEK 15.5 million (4.0) for the period January-June.

The materials technology operations continued to develop well, with higher sales and operating profi t than the previous year. The consulting opera tions performed well and there were several new recruitments. Demand for consultants with advanced nuclear engineering skills is high. Software for fuel optimization reported a profi t that was by and large on the same level as the previous year.

Investments

The Group's investments in the second quarter were SEK 42.6 million (19.4) and in the fi rst half year SEK 50.8 million (40.1). The new processing plant in the United Kingdom accounts for SEK 43.5 million of this.

Cash fl ow

Cash fl ow from operating activities before working capital changes in the second quarter was SEK 8.5 million (37.9) and SEK 8.9 million (41.9) for the period January-June. Working capital increased in the second quarter by SEK 34.0 million (33.9) and in the period January-June by SEK 40.8 million (56.1).

Cash fl ow from operating activities after investments was SEK –65.3 million (–9.8) in the second quarter and SEK –97.3 million (-48.7) for the period January-June.

AB SVAFO was transferred on April 1 to the Swedish nuclear power producers. The transfer was at book value, SEK 1.0 million. The company had a net cash balance of SEK 18.4 million at the time of the transfer, mainly consisting of advances from the Nuclear Waste Fund. The transfer meant that the Group's cash and cash equivalents decreased by SEK 17.4 million.

Financial position and liquidity

Cash and cash equivalents, including current investments, amounted to SEK 43.2 million (120.8) at the close of the quarter. Decreasing liquidity is mainly an effect of the negative developments in the United Kingdom, but also an effect of the recovery of production volumes in

the American operations only occurring towards the end of the second quarter.

Equity amounted to SEK 552.9 million (542.1) and the equity-assets ratio was 37.7 per cent (42.7).

Interest-bearing liabilities amounted to SEK 390.9 million (309.1). 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 second quarter reduced liabilities by SEK 12.0 million.

Personnel

The average number of employees was 1,117 (1,145).

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 second quarter were SEK 2.8 million (2.7) and in the fi rst half year SEK 5.5 million (5.3). The operating loss for the second quarter amounted to SEK –8.6 million (–7.7) and for the fi rst half year to SEK –17.0 million (–14.1). Profi t after fi nancial items in the second quarter was SEK –0.6 million (–7.5) and for the fi rst half year SEK 12.2 million (–13.7). Profi t for the fi rst half year includes dividend from the German subsidiary of SEK 22.0 million (0) and from Studsvik Scandpower AB of SEK 10.0 million (0).

The parent company's investments amounted to SEK 0 million (0.2). Cash and cash equivalents amounted to SEK 45.3 million (52.5) and interest-bearing liabilities to SEK 227.8 million (163.5).

Board of Directors

Jan Barchan has announced that from May 29 until further notice he will no longer participate in the work of the Board of Directors.

Risks and uncertainties

Studsvik operates in an international, competitive market and is 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 counter party 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 least at the present rate in 2009. 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 second half of 2009. The UK operations have been restructured and the new treatment facility for metallic material is expected to be put in operation in the third quarter. In the USA the contract customer base indicates a break in the negative trend. In view of this, a positive operating profi t and cash fl ow are expected for the second half of the year.

Accounting policies

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

The interim report provides a fair review of the Group's and the Parent Company's operations, fi nancial position and performance and describes signifi cant risks and uncertainties faced by the Parent Company and the companies that are part of the Group.

Stockholm, July 21, 2009
Anders Ullberg Anna Karinen Ingemar Eliasson Lars Engström
Chairman Vice Chairman Board member Board member
Alf Lindfors Per Ludvigsson Maria Lindberg Roger Lundström
Board member Board member Employee representative Employee representative
Magnus Groth

President

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

Time schedule for fi nancial information

Interim Report January–September 2009 November 2, 2009 Year-end Report January–December 2009 February 11, 2010

Jovember 2, 2009
ebruary 11, 2010

For further information please 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)

The interim report will be presented at a conference call to be held in English, on July 21, at 3.00 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 April-June
2009
April-June
2008
January-June
2009
January-June
2008
Full year 2008
Net sales 315.8 370.6 592.8 690.6 1,285.9
Cost of services sold –261.7 –262.4 –478.7 –525.0 –986.3
Gross profi t 54.1 108.2 114.1 165.6 299.6
Other operating income 3.5 1.1 5.2 1.5 2.8
Selling and marketing expenses –13.5 –15.1 –28.8 –27.0 –52.1
Administrative expenses –49.1 –50.2 –105.1 –94.2 –194.8
Research and development costs –12.4 –9.4 –24.8 –18.2 –44.8
Share in earnings from associated companies 1.1 - 2.6 - 8.5
Other operating expenses –22.8 –2.5 –23.5 –2.6 –6.5
Operating profi t –39.1 32.1 –60.3 25.1 12.7
Financial income –0.3 0.8 0.2 2.6 7.4
Financial expenses –6.6 –5.6 –12.5 –10.9 –19.4
Profi t after fi nancial items –46.0 27.3 –72.6 16.8 0.7
Income tax 12.5 –8.2 19.3 –4.7 0.4
Profi t for the period –33.5 19.1 –53.3 12.1 1.1
Other comprehensive income
Translation differences on foreign subsidiaries –22.4 3.8 2.8 –25.4 60.2
Cash fl ow hedges 2.9 - 1.1 - –0.4
Income tax on items recognized in other comprehensive
income –1.2 - –0.3 - 0.1
Other comprehensive income for the period,
net after tax
–20.7 3.8 3.6 –25.4 59.9
Total comprehensive income for the period –54.2 22.9 –49.7 –13.3 61.0
Income for the period attributable to
Parent company's shareholders –33.5 16.2 –53.3 8.1 –0.4
Minority interest 0.0 2.9 0.0 4.0 1.5
Total comprehensive income attributable to
Parent company's shareholders –54.2 20.0 –49.7 –17.0 58.5
Minority interest 0.0 2.9 0.0 3.7 2.5
Earnings per share calculated on income attributa
ble to the parent company's shareholders during
the period, SEK
Before dilution –4.06 1.97 –6.48 0.99 –0.05
After dilution –4.06 1.97 –6.48 0.99 –0.05

Group statement of fi nancial position

Amounts in SEK million

June 2009 June 2008 December 2008
Assets
Goodwill 363.8 297.3 363.0
Other intangible non-current assets 51.2 49.2 56.4
Property, plant and equipment 528.0 397.8 503.7
Financial non-current assets 124.9 61.9 101.4
Total non-current assets 1,067.9 806.2 1,024.5
Inventories 31.8 29.3 28.8
Trade receivables 257.8 218.9 201.7
Other current receivables 66.8 93.9 108.1
Liquid assets 43.2 120.8 147.7
Total current assets 399.6 462.9 486.3
Total assets 1,467.5 1,269.1 1,510.8
Equity and liabilities
Equity attributable to parent company's shareholders 552.6 535.0 610.5
Minority interest 0.3 7.1 0.3
Borrowings 365.1 192.6 350.5
Provisions 131.4 103.5 126.6
Other non-current liabilities 9.5 7.7 10.4
Total non-current liabilities 506.0 303.8 487.5
Trade payables 89.5 90.3 97.4
Borrowings 25.8 116.5 37.7
Other current liabilities 293.3 216.4 277.4
Total current liabilities 408.6 423.2 412.5
Total equity and liabilities 1,467.5 1,269.1 1,510.8
Pledged assets 206.9 196.5 224.2
Contingent liabilities 68.9 56.6 58.2

Changes in equity

Amounts in SEK million Equity
attrib u table
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 3.2 –52.9 –49.7 –49.7
Dividend to shareholders –8.2 –8,2 –8.2
Closing balance at June 30, 2009 8.2 225.3 52.2 266.9 552.6 0.3 552.9

Statement of cash fl ow

Amounts in SEK million April-June April-June January-June January-June
2009 2008 2009 2008 Full year 2008
Operating activities
Operating profi t –39.1 32.1 –60.3 25.1 12.7
Depreciation 18.2 15.1 40.3 31.6 67.2
Adjustment for non-cash items 29.1 –4.1 33.9 –4.3 –6.2
8.2 43.1 13.9 52.4 73.7
Financial items, net –6.6 –4.5 –11.3 –8.0 –13.0
Income tax paid 6.9 –0.7 6.3 –2.5 1.2
Cash fl ow from operating activities before changes
in working capital 8.5 37.9 8.9 41.9 61.9
Changes in working capital –34.0 –33.9 –40.8 –56.1 –32.4
Cash fl ow from operating activities –25.5 4.0 –31.9 –14.2 29.5
Investing activities
Investments –25.2 –19.4 –50.8 –40.1 –103.3
Other changes from investing activities –14.6 5.6 –14.6 5.6 4.9
Cash fl ow from investing activities –39.8 –13.8 –65.4 –34.5 –98.4
Cash fl ow from operating activities after invest
ments and other changes from investing activities –65.3 –9.8 –97.3 –48.7 –68.9
Financing activities
Change in borrowings 8.6 16.4 2.4 7.4 46.6
Dividend to shareholders –8.2 –16.4 –8.2 –16.4 –16.4
Cash fl ow from investing activities 0.4 0.0 –5.8 –9.0 30.2
Changes in liquid assets –64.9 –9.8 –103.1 –57.7 –38.7
Liquid assets at the beginning of the year 108.7 130.8 147.7 176.9 176.9
Translation difference in liquid assets –0.6 –0.2 –1.4 1.6 9.5
Liquid assets at the end of the period 43.2 120.8 43.2 120.8 147.7

Financial ratios for the Group

Amounts in SEK million January-June
2009
January-June
2008
Full year 2008
Operating profi t
Operating profi t before depreciation –20.0 56.7 79.9
Margins
Operating margin before depreciation, % –3.4 8.2 6.2
Operating margin, % –10.2 3.6 1.0
Profi t margin, % –12.2 2.4 0.1
Profi tability
Return on operating capital, % –13.8 7.0 1.6
Return on capital employed, % –12.4 6.4 2.1
Return on equity, % –18.3 2.9 0.2
Capital structure
Operating capital 900.9 730.5 851.3
Capital employed 944.1 851.3 999.0
Equity 552.9 542.1 610.8
Interest-bearing net debt 347.9 188.3 240.5
Net debt-equity ratio 0.6 0.3 0.4
Interest cover ratio –4.8 2.5 1.0
Equity-assets ratio, % 37.7 42.7 40.4
Cash fl ow
Self fi nancing ratio –0.6 0.4 0.2
Investments 50.8 40.1 108.4
Employees
Average number of employees 1,117 1,145 1,130
Net sales per employee 1.1 1.2 1.1

Data per share

April-June April-June January-June January-June
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 –4.06 1.97 –6.48 0.99 –0.05
Earnings per share after dilution, SEK –4.06 1.97 –6.48 0.99 –0.05
Equity per share, SEK 67.28 65.97 67.28 65.97 74.32

Net sales per geographical segment

Amounts in SEK million April-June April-June January-June January-June
2009 2008 2009 2008 Full year 2008
Sweden 60.4 56.6 107.5 109.0 226.4
Europe, excluding Sweden 165.9 176.8 321.9 325.8 678.4
North America 82.1 129.3 143.6 244.5 369.0
Asia 6.3 7.9 18.4 11.1 11.9
Other markets 1.1 - 1.4 0.2 0.2
Total 315.8 370.6 592.8 690.6 1,285.9

Financial data per segment

Amounts in SEK million United Global Elimina
April-June 2009 Sweden Kingdom Germany USA Services Other tions Group
External sales revenue 38.2 20.7 112.9 69.1 61.8 13.1 - 315.8
Revenue from segment 1.9 - 0.4 0.6 0.1 1.3 –4.3 0.0
Operating profi t –1.1 –33.5 5.7 –7.8 6.2 –8.6 - –39.1
Assets 121.7 176.9 290.7 691.3 137.4 420.9 –371.4 1,467.5
Liabilities 71.6 164.5 217.2 431.9 84.7 316.1 –371.4 914.6
Investments 1.3 21.8 –0.3 –0.2 2.2 0.4 - 25.2
Depreciation/amortization 2.7 1.4 0.4 10.4 1.9 1.4 - 18.2
Average number of employees 86 75 615 114 134 94 - 1,118
United Global Elimina
April-June 2008 Sweden Kingdom Germany USA Services Other tions Group
External sales revenue 35.7 39.2 101.7 121.2 44.0 28.8 - 370.6
Revenue from segment 5.0 - 0.3 - 0.8 3.1 –9.2 0.0
Operating profi t 9.6 –1.5 6.6 25.5 –0.3 –7.8 - 32.1
Assets 104.0 119.0 251.0 572.8 93.5 350.3 –221.5 1,269.1
Liabilities 63.9 79.4 179.4 316.5 52.2 257.1 –221.5 727.0
Investments 2.1 4.0 2.4 4.9 3.4 2.6 - 19.4
Depreciation/amortization 2.0 1.1 1.6 7.9 1.5 1.0 - 15.1
Average number of employees 74 99 596 159 125 88 - 1,141
United Global Elimina
January-June 2009 Sweden Kingdom Germany USA Services Other tions Group
External sales revenue 69.7 47.4 209.2 106.8 124.2 35.5 - 592.8
Revenue from segment 11.6 - 1.0 0.6 1.7 4.6 –19.5 0.0
Operating profi t 5.6 –33.5 10.6 –41.5 15.5 –17.0 - –60.3
Assets 121.7 176.9 290.7 691.3 137.4 420.9 –371.4 1,467.5
Liabilities 71.6 164.5 217.2 431.9 84.7 316.1 –371.4 914.6
Investments 1.6 43.5 1.0 1.6 2.7 0.4 - 50.8
Depreciation/amortization 5.3 1.9 4.5 22.1 3.8 2.7 - 40.3
Average number of employees 88 77 622 102 134 94 - 1,117
United Global Elimina
January-June 2008 Sweden Kingdom Germany USA Services Other tions Group
External sales revenue 57.0 79.7 178.8 224.6 90.6 59.9 - 690.6
Revenue from segment 14.4 - 0.6 - 1.4 6.3 –22.7 0.0
Operating profi t 10.5 1.4 11.3 12.1 4.0 –14.2 - 25.1
Assets 104.0 119.0 251.0 572.8 93.5 350.3 –221.5 1,269.1
Liabilities 63.9 79.4 179.4 316.5 52.2 257.1 –221.5 727.0
Investments 6.4 6.5 4.3 13.3 4.4 5.2 - 40.1
Depreciation/amortization 3.9 2.2 4.1 16.1 3.5 1.8 - 31.6
Average number of employees 77 95 586 182 122 83 - 1,145
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

Studsvik Interim Report January-June 2009

Quarterly review

Amounts in SEK million 2007 2008 2009
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2
Net sales 273.2 345.8 325.1 370.6 320.0 370.6 274.2 321.1 277.0 315.8
Operating expenses –251.0 –330.0 –316.3 –355.3 –327.0 –338.5 –278.6 –329.1 –298.2 –354.9
Operating profi t 22.2 15.8 8.8 15.3 –7.0 32.1 –4.4 –8.0 –21.2 –39.1
Financial items, net –3.7 –3.0 –4.2 –5.3 –3.5 –4.8 –3.1 –0.6 –5.4 –6.9
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

Parent company income statement

Amounts in SEK million April-June April-June January-June January-June
2009 2008 2009 2008 Full year 2008
Net sales 2.8 2.7 5.5 5.3 10.8
Cost of services sold –1.9 –1.5 –3.9 –3.5 –7.9
Gross profi t 0.9 1.2 1.6 1.8 2.9
Other operating costs –9.5 –8.9 –18.6 –15.9 –31.6
Operating profi t –8.6 –7.7 –17.0 –14.1 –28.7
FInancial net 8.0 0.2 29.2 0.4 2.9
Profi t before tax –0.6 –7.5 12.2 –13.7 –25.8
Appropriations - - - - 4.3
Income tax 2.7 2.0 5.0 3.7 7.0
Profi t for the period 2.1 –5.5 17.2 –10.0 –14.5

Parent company balance sheet

Amounts in SEK million
June 2009 June 2008 December 2008
Assets
Property, plant and equipment 0.5 0.8 0.7
Financial non-current assets 1,094.2 963.5 1,015.2
Total non-current assets 1,094.7 964.3 1,015.9
Current assets 16.9 33.0 40.2
Liquid assets 45.3 52.5 84.1
Total current assets 62.2 85.5 124.3
Total assets 1,156.9 1,049.8 1,140.2
Equity and liabilities
Equity 833.8 806.7 824.8
Untaxed reserves 2.5 6.9 2.5
Non-current liabilities 255.6 192.5 249.2
Current liabilities 65.0 43.7 63.7
Total liabilities 320.6 236.2 312.9
Total equity and liabilities 1,156.9 1,049.8 1,140.2

Major shareholders, June 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
JP Morgan Chase Bank, England 417,679 5.1
State Street Bank, Boston 272,284 3.3
Lannebo Fonder 240,038 2.9
Invus Investment AB 199,800 2.4
Credit Agricole Suisse SA 199,056 2.4
Goldman Sachs International Ltd, London 196,822 2.4
Citibank NA, London 154,868 1.9
Total ten largest shareholders – holdings 5,430,152 66.0
Other shareholders 2,788,459 34.0
Total 8,218,611 100.0

The Studsvik share

During the second quarter, the share price varied between a high of SEK 71 on June 2, and a low of SEK 54 on April 3. The opening price was SEK 55 at the beginning of the year and the closing price on June 30 was SEK 57.75. During the second quarter, 1.28 million shares were traded and during the fi rst half of the year 1.72 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