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Studsvik Interim / Quarterly Report 2008

Feb 12, 2009

3208_10-k_2009-02-12_e8126376-cf2b-4e6f-8d5a-14ce8d61da84.pdf

Interim / Quarterly Report

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Year-end Report January-December 2008

  • Operating profi t in 2008 was SEK 12.7 million (62.1). Adjusted for non-recurring items, profi t was SEK 25.3 million (49.3). •
  • Continued stoppage at the Erwin facility and costs of discontinuing a project in the United Kingdom reduced earnings in the fourth quarter by SEK 28 million. •
  • Good performance in other segments. •
  • Operations at the Erwin facility will resume during the fi rst quarter. •
  • The Board of Directors proposes a dividend of SEK 1.00 per share. •
October
December
2008
October
December
2007
Full year
2008
Full year
2007
Net sales, SEK million 321.1 370.6 1,285.9 1,314.7
Operating profi t, SEK million –8.0 15.3 12.7 62.1
Profi t after tax, SEK million –7.3 13.0 1.1 47.2
Profi t per share after tax, SEK –0.73 1.58 –0.05 5.65
Equity per share, SEK 74.32 69.58 74.32 69.58
Equity-assets ratio, % 40.4 42.5 40.4 42.5

Net sales

Net sales for the fourth quarter amounted to SEK 321.1 million (370.6) and for the period January–December, to SEK 1,285.9 million (1,314.7).

The decrease is mainly attributable to the USA and the Erwin operations. The temporary stoppage at the Erwin facility continued in the fourth quarter. For the period January–December, sales in the USA fell by 26 per cent compared with the previous year. Other segments reported overall organic growth in 2008 of 6 per cent in local currency. In the fourth quarter the trend was particularly good in Germany, where sales rose by 30 per cent.

Profi t

The operating profi t for the fourth quarter amounted to SEK –8.0 million (15.3) and for January–December, to SEK 12.7 million (62.1). The Group reports a loss in the fourth quarter in the USA and the UK. The loss in the USA is mainly a consequence of the continued stoppage at the Erwin facility. The loss in the United Kingdom is attributable to the costs for discontinuing a major project at Sellafi eld. The project was discontinued in the fourth quarter after recurrent delays. With an operating margin of 20.4 per cent in the fourth quarter Sweden reached its 20 per cent operating margin target for 2008. Germany more than doubled its operating profi t for the fourth quarter, to SEK 8.9 million (4.1).

Non-recurring items are included in the operating profi ts reported for the period January to December in 2007 and 2008 as in the table below.

2008 2007
Reported operating profi t 12.7 62.1
Capital gain - –23.3
Costs of discontinued acquisition process - 10.5
Restructuring costs, USA 12.6 -
Adjusted operating profi t 25.3 49.3

Foreign exchange effects in connection with the translation of foreign subsidiaries' operating profi t amounted to SEK –1.8 million for the fourth quarter and SEK 2.1 million for January– December.

Sweden

Net sales for the fourth quarter amounted to SEK 42.6 million (43.6) and for the period January–December, to SEK 152.4 million (135.4). The operating profi t for the fourth quarter amounted to SEK 8.7 million (13.5) and for January–December, to SEK 30.7 million (28.2).

Operations performed well, although in the fourth quarter they did not achieve the exceptionally high level of 2007. The incineration facility ran at full capacity and the facility for treatment of metallic material also had good capacity utilization, as did the production line for treatment of large components. The order books provide the basis for continued high capacity utilization.

United Kingdom

Net sales for the fourth quarter amounted to SEK 34.7 million (38.9) and for the period January–December, to SEK 148.6 million (129.1). Operating profi t for the fourth quarter amounted to SEK –5.2 million (0.9) and for January–December, to SEK –3.2 million (3.0).

The loss in the fourth quarter, as for the full year, is entirely attributable to the Decommissioning operations and more specifi cally two major projects at Sellafi eld. The projects were affected by recurring delays, partly as a result of changed conditions. Studsvik decided to call off one project and renegotiate the conditions for the other. The measures reduce earnings for the fourth quarter by SEK 6 million, which also includes staff

reductions. Waste Treatment operations, which include Studsvik's associated company Nuclear Waste Management (NWM), performed well with organic growth and satisfactory profi tability. The reported result for the fourth quarter includes the share in earnings from NWM of SEK 1.4 million (0) and for the period January–December, of SEK 2.9 million (0).

The discontinuation of the projects at Sellafi eld resulted in a reduc tion in the order books. However, market activity in both Waste Treatment and Decommissioning continues to be high and several contracts are being negotiated.

The treatment facility for metallic waste under construction in Workington will be brought into operation in the second quarter of 2009. The total investment cost is SEK 50 million, of which SEK 20.3 million was generated in 2008.

Germany

Net sales for the fourth quarter amounted to SEK 110.4 million (84.6) and for the period January–December, to SEK 387.9 million (341.3). Operating profi t for the fourth quarter amounted to SEK 8.9 million (4.1) and for January–December, to SEK 23.3 million (25.3).

The operations report a strong fourth quarter with good capacity utilization in the consulting operations and service and maintenance. Market demand for consulting services is high; consequently there are good opportunities for continued growth with good profi tability. Decommissioning also reported a strong fourth quarter. Decommissioning work at the Obrigheim power plant started after the customer, with a delay of over a year, had received the necessary licensing. During the year component manufacturing increased in scope, but with unsatisfactory profi tability. The management organization and work processes were changed in the fourth quarter. An offi ce has been opened in France, where a small consulting organization has been established. The order books provide the basis for continued high capacity utilization.

USA

Net sales for the fourth quarter amounted to SEK 45.1 million (94.3) and for the period January–December, to SEK 317.1 million (427.7). Operating profi t for the fourth quarter amounted to SEK –17.2 million (–4.6) and for January–December, to SEK –22.4 million (6.3). The profi t for 2008 includes restructuring costs for the Memphis-based operations of SEK 12.6 million. The profi t includes the share in earnings from Studsvik's joint venture TTT of SEK 5.6 million (0) for the fourth quarter and the equivalent amount for the full year.

As a result of the closure of the repository for medium-level waste in Barnwell, South Carolina, at the end of June, deliveries of material to Studsvik's Erwin facility ceased. Consequently Studsvik closed the facility temporarily. Operations were closed down in the second half of the year. The operating profi t in the Erwin-based operations was SEK 22 million lower in the fourth quarter than in the corresponding period in the previous year.

Studsvik has developed a new business model for treatment of medium-level waste, which means that Studsvik treats waste at the Erwin facility as before, and thereafter takes responsibility for storage and fi nal disposal through cooperation with Waste Control Specialists (WCS). Three power companies have signed agreements under the new model and talks are in progress with several potential customers. Operations at the Erwin facility will resume during the fi rst quarter.

Waste volumes at the Memphis facility fell in the fourth quarter as a result of customers putting off deliveries to reduce their costs and expenditure in the short term. The effi ciency program implemented earlier in the year has been effective and, despite the tough market situation, earnings in the fourth quarter improved in comparison with the same period last year.

The capacity reductions made in the logistics operations earlier in the year proved insuffi cient to compensate for the fall in demand, which meant that the operations reported a loss in the fourth quarter. Profi tability is also under pressure from high fuel costs. Further measures were taken to improve effi ciency.

In December Studsvik acquired a minority holding (10 per cent) in the Erwin facility.

Operations in THOR Treatment Technologies (TTT) performed well and showed positive earnings and cash fl ow in 2008.

Global Services

Net sales for the fourth quarter amounted to SEK 62.4 million (52.8) and for the period January–December, to SEK 196.0 million (178.8). Operating profi t for the fourth quarter amounted to SEK 5.4 million (8.8) and for January–December, to SEK 13.0 million (14.4).

The materials technology operations reported a continued positive trend in the fourth quarter. Sales and operating profi t improved compared with the corresponding period in 2007. The order books are healthy and the volume of tenders is high. The consulting operations are growing successively and ALARA Holding, which was acquired during the quarter, has performed well.

New sales of fuel optimization software did not reach the 2007 level and consequently both fourth quarter and full year earnings were lower than the previous year. Variations between years are normal for the business, and tender activity in the software area is very high. After the reporting period an order was signed with a Japanese customer for delivery of Studsvik's Gardel core monitoring system for a contract value of about SEK 7 million.

Investments

Investments for the Group in the fourth quarter amounted to SEK 48.1 million (25.4) and for January–December, to SEK 108.4 million (127.3). The investments for the fourth quarter include expansion investments of SEK 22.7 million, mainly in waste manage ment in the United Kingdom.

Cash fl ow

Cash fl ow from operating activities before working capital changes in the fourth quarter was SEK 6.3 million (39.7) and SEK 61.9 million (76.7) for the period January–December. Working capital decreased in the fourth quarter by SEK 38.1 million (13.4) but increased in the period of January–December by SEK 32.4 million (37.7). The decrease in the fourth quarter is a result of strong focus on working capital in all units. The increase in the period of January–December is mainly attributable to payment of a current liability for fi nal disposal of spent fuel from the company's shut-down R2 reactor.

Cash fl ow from operating activities after investments in the fourth quarter was SEK 2.2 million (28.9) and SEK –68.9 million (–36.4) for the period January–December.

Financial position and liquidity

Cash and cash equivalents, including current investments, amounted to SEK 147.7 million (176.9).

Equity amounted to SEK 610.8 million (571.8).

The equity-assets ratio was 40.4 per cent (42.5). Interest-bearing liabilities amounted to SEK 388.3 million (318.7).

The Group's total borrowing was conducted entirely in foreign currencies through investments and business acquisitions in the USA, Germany and the UK. After renegotiation in the fourth quarter the average maturity of the loan portfolio was extended to 4 years. Interest margins have increased, but falling market interest rates mean that the average interest rate for loans is unchanged.

Personnel

The average number of employees was 1,130 (1,141).

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 in the fourth quarter amounted to SEK 2.7 million (1.5) and for the period January–December, to SEK 10.8 million (5.6). Operating profi t for the fourth quarter amounted to SEK –8.6 million (–8.1) and for January–December, to SEK –28.7 million (–38.3). Profi t after fi nancial items for the period of January–December was SEK –25.8 million (–2.6).

The profi t for the previous year includes a capital gain of SEK 35.0 million from the sale of Studsvik Stensand AB in the fi rst quarter and costs of a discontinued acquisition process in the UK of SEK –10.5 million in the second quarter.

The parent company's investments amounted to SEK 0.2 million (0.5). Cash and cash equivalents amounted to SEK 84.1 million (91.2) and interest-bearing liabilities to SEK 221.2 million (154.2).

Dividend, Annual General Meeting and Annual Report

The Board of Directors proposes a dividend of SEK 1.00 (2.00) per share. The Annual General Meeting will be held on Wednesday, April 22, 2009 at 4 p.m. at the World Trade Center, Klarabergsviadukten 70/Kungsbron 1, Stockholm. The Annual Report will be distributed and be available on the company's website in week 14, 2009.

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.

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 fi nancial 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 2007, 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 upgrading programs are underway 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.

Studsvik's operations are only marginally affected by fl uctuations in the economic cycle. With the exception of parts of the US operations the fi nancial turbulence has not affected Studsvik's operations.

Accounting policies

This interim report was prepared in accordance with IAS 34 and the Swedish Financial Reporting Board recommendation RFR 2.1. The new recommendations that apply as of January 1, 2008 have not affected the Group's fi nancial performance or position.

Nyköping, February 12, 2009

On behalf of the Board of Directors

Magnus Groth President

Review report

We have reviewed this report for the period January 1, 2008 to December 31, 2008 for Studsvik AB (publ). The Board of Directors and the president are responsible for the preparation and presentation of this fi nancial information in accordance with IAS 34 and the Swedish Annual Accounts Act. Our responsibility is to express a conclusion on this fi nancial information based on our review.

We conducted our review in accordance with the Swedish Standard on Review Engagements SÖG 2410, Review of 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 a substantially lesser scope than an audit conducted in accordance with Standards on Auditing in Sweden, RS, and other generally accepted auditing standards in Sweden. The procedures performed in a review do not enable us to obtain such a level of assurance as to make us aware of all signifi cant matters that might be identifi ed in an audit. Accordingly, a conclusion stated on the basis of a review does not provide 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 fi nancial information has not been prepared, in all material respects, in accordance with IAS 34 and the Swedish Annual Accounts Act.

Stockholm, February 12, 2009

PricewaterhouseCoopers AB

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

Time schedule for fi nancial information

Interim Report January-March 2009 April 22, 2009
Interim Report January-June 2009 July 21, 2009
Interim Report January-September 2009 November 2, 2009

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)

The year-end report will be presented at a conference call to be held in English, on February 12 at 3:30 p.m. CET.

See also www.studsvik.se

Studsvik Year-end Report January-December 2008

Consolidated income statement

Amounts in SEK million October
October
December 2008 December 2007 Full year 2008 Full year 2007
Net sales 321.1 370.6 1,285.9 1,314.7
Cost of services sold –250.8 –283.1 –986.3 –1,000.1
Gross profi t 70.3 87.5 299.6 314.6
Other operating income 1.0 –6.8 2.8 25.1
Selling and marketing expenses –12.8 –9.0 –52.1 –53.8
Administrative expenses –53.9 –48.8 –194.8 –180.4
Research and development costs –17.5 –13.3 –44.8 –41.8
Share in earnings from associated companies 7.1 - 8.5 -
Other operating expenses –2.2 5.7 –6.5 –1.6
Operating profi t –8.0 15.3 12.7 62.1
Financial income 3.3 1.2 7.4 8.7
Financial expenses –3.9 –6.5 –19.4 –24.8
Profi t after fi nancial items –8.6 10.0 0.7 46.0
Income tax 1.3 3.0 0.4 1.2
Profi t for the period –7.3 13.0 1.1 47.2
Attributable to
– Parent company's shareholders –6.0 12.4 –0.4 46.5
– Minority interest –1.3 0.6 1.5 0.7
Earnings per share, SEK
– Before dilution –0.73 1.58 –0.05 5.65
– After dilution –0.73 1.58 –0.05 5.65

Condensed consolidated balance sheet

Amounts in SEK million

December 2008 December 2007
Assets
Goodwill 363.0 311.7
Other intangible fi xed assets 56.4 57.0
Property, plant and equipment 503.7 406.6
Financial fi xed assets 101.4 67.3
Total fi xed assets 1,024.5 842.6
Inventories 28.8 22.5
Trade receivables 201.7 206.0
Other current receivables 108.1 98.0
Cash and cash equivalents 147.7 176.9
Total current assets 486.3 503.4
Total assets 1,510.8 1,346.0
Equity and liabilities
Equity attributable to parent company's shareholders 610.5 568.4
Minority interest 0.3 3.4
Borrowings 350.5 196.4
Provisions 126.6 102.2
Other non-current liabilities 10.4 8.0
Total non-current liabilities 487.5 306.6
Trade payables 97.4 63.3
Borrowings 37.7 122.2
Other current liabilities 277.4 282.1
Total current liabilities 412.5 467.6
Total equity and liabilities 1,510.8 1,346.0
Pledged assets 224.2 181.5
Contingent liabilities 63.2 93.3

Changes in equity

Amounts in SEK million

December 2008 December 2007
Equity at the beginning of the period 571.8 558.7
Dividend to shareholders –16.4 –16.4
Net profi t for the period 1.1 47.2
Change in translation differences 59.9 –17.7
Acquisition of minority equity interest –5.6 -
Equity at the end of the period 610.8 571.8

Condensed consolidated cash fl ow statement

Amounts in SEK million October October
December 2008 December 2007 Full year 2008 Full year 2007
Operating activities
Operating profi t –8.0 15.3 12.7 62.1
Depreciation 19.3 14.0 67.2 60.1
Adjustment for non-cash items –7.2 1.9 –6.2 –22.6
4.1 31.2 73.7 99.6
Financial items, net –1.6 –5.2 –13.0 –16.1
Income tax paid 3.8 13.7 1.2 –6.8
Cash fl ow from operating activities before changes
in working capital 6.3 39.7 61.9 76.7
Changes in working capital 38.1 13.4 –32.4 –37.7
Cash fl ow from operating activities 44.4 53.1 29.5 39.0
Investing activities
Investments –43.0 –25.4 –103.3 –122.4
Other changes from investing activities 0.8 1.2 4.9 47.0
Cash fl ow from investing activities –42.2 –24.2 –98.4 –75.4
Cash fl ow from operating activities after invest
ments and other changes from investing activities 2.2 28.9 –68.9 –36.4
Financing activities
Change in borrowings 13.9 –3.2 46.6 –19.1
Dividend to shareholders - - –16.4 –16.4
Cash fl ow from fi nancing activities 13.9 –3.2 30.2 –35.5
Changes in cash and cash equivalents 16.1 25.7 –38.7 –71.9
Cash and cash equivalents at the beginning of the year 124.3 150.6 176.9 247.6
Translation difference in cash and cash equivalents 7.3 0.6 9.5 1.2
Cash and cash equivalents at the end of the period 147.7 176.9 147.7 176.9

Company acquisitions

Acquisitions in 2008 Date
• ALARA Holding i Skultuna AB, 100 % October 13, 2008
• Minority share (10 %) in Studsvik Processing Facility Erwin, LLC December 18, 2008
Acquired net assets and goodwill Amounts in SEK million
Purchase price
• Cash paid 6.8
• Liability to seller 3.8
• Direct costs in connection with acquisition 0.6
Total purchase price 11.2
Fair value of net assets acquired 7.7
Goodwill 3.5
Intangible assets 0.9
Deferred tax 0.2

Goodwill is attributable to the market position of the acquired operations and synergy effects expected to arise on integration with Studsvik's other companies after the acquisition.

Acquisitions (cont.)

ALARA Holding contributed with net sales of SEK 2.3 million and an operating profi t of SEK 0.1 million for the period October 13 up to and including December 31, 2008. If the acquisition had taken place on January 1 the Group's net sales would have been SEK 1,289.6 million and the operating profi t for the year SEK 13.2 million.

Studsvik Processing Facility Erwin is consolidated in the Group and therefore acquisition of the minority share would not have affected net sales and the operating profi t if the acquisition had taken place on January 1.

Financial ratios for the Group

Full year 2008 Full year 2007
79.9 122.2
6.2 9.3
1.0 4.7
0.1 3.5
1.6 9.0
2.1 7.9
0.2 8.2
851.3 713.6
999.0 890.5
610.8 571.8
240.5 141.8
0.4 0.2
1.0 2.9
40.4 42.5
0.2 0.3
108.4 127.3
1,130 1,141
1.1 1.2

Data per share

October October
December 2008 December 2007 Full year 2008 Full year 2007
Number of shares at the end of the period 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
Earnings per share before dilution, SEK –0.73 1.58 –0.05 5.65
Earnings per share after dilution, SEK –0.73 1.58 –0.05 5.65
Equity per share, SEK 74.32 69.58 74.32 69.58

Net sales per geographical segment

Amounts in SEK million October October
December 2008 December 2007 Full year 2008 Full year 2007
Sweden 74.9 132.6 226.4 258.7
Europe, excluding Sweden 184.3 138.4 678.4 564.3
North America 64.3 92.4 369.0 463.6
Asia –2.4 7.2 11.9 25.9
Other markets 0.0 0.0 0.2 2.2
Total 321.1 370.6 1,285.9 1,314.7

Financial data per segment

Amounts in SEK million October October
December 2008 December 2007 Full year 2008 Full year 2007
Sweden
Net sales 42.6 43.6 152.4 135.4
Operating profi t 8.7 13.5 30.7 28.2
Assets 133.9 121.1 133.9 121.1
Liabilities 78.8 58.8 78.8 58.8
Investments 0.9 6.3 7.8 33.9
Depreciation and amortization 2.2 1.5 8.2 5.8
Average number of employees 80 80 78 78
United Kingdom
Net sales 34.7 38.9 148.6 129.1
Operating profi t –5.2 0.9 –3.2 3.0
Assets 133.1 89.9 133.1 89.9
Liabilities 98.7 47.8 98.7 47.8
Investments 21.8 2.9 38.3 42.4
Depreciation and amortization 0.9 1.5 3.9 2.4
Average number of employees 90 88 86 65
Germany
Net sales 110.4 84.6 387.9 341.3
Operating profi t 8.9 4.1 23.3 25.3
Assets 301.4 244.4 301.4 244.4
Liabilities 211.6 179.1 211.6 179.1
Investments 2.3 2.9 7.8 17.6
Depreciation and amortization 2.3 1.0 8.8 5.2
Average number of employees 607 587 594 564
USA
Net sales 45.1 94.3 317.1 427.7
Operating profi t –17.2 –4.6 –22.4 6.3
Assets 658.6 624.6 658.6 624.6
Liabilities 365.3 326.3 365.3 326.3
Investments 9.9 9.4 26.4 21.4
Depreciation and amortization 10.8 7.2 35.4 35.5
Average number of employees 128 218 156 234
Global Services
Net sales 62.4 52.8 196.0 178.8
Operating profi t 5.4 8.8 13.0 14.4
Assets 147.6 183.3 147.6 183.3
Liabilities 120.4 158.7 120.4 158.7
Investments 8.9 1.0 14.4 5.3
Depreciation and amortization 2.0 2.0 7.0 8.1
Average number of employees 134 120 129 118
Other1)
Net sales
38.8 72.5 128.3 159.1
Operating profi t –8.6 –7.4 –28.7 –38.3
Assets 434.3 389.5 434.3 389.5
Liabilities 323.3 285.0 323.3 285.0
Investments 4.3 2.9 13.7 6.7
Depreciation and amortization 1.1 0.8 3.9 3.1
Average number of employees 87 83 87 82
Group eliminations
Net sales –12.9 –16.1 –44.4 –56.7
Operating profi t - - - 23.22)
Assets –298.1 –306.8 –298.1 –306.8
Liabilities –298.1 –281.6 –298.1 –281.6
Investments - - - -
Depreciation and amortization - - - -

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 decommissioning of facilities related to previous state-owned 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 amounting to SEK 23.3 million.

Studsvik Year-end Report January-December 2008

Quarterly review

Amounts in SEK million 2006 2007 2008
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
Net sales 251.6 317.5 321.3 329.2 273.2 345.8 325.1 370.6 320.0 370.6 274.2 321.1
Operating expenses –251.2 –290.8 –298.3 –308.0 –251.0 –330.0 –316.3 –355.3 –327.0 –338.5 –278.6 –329.1
Operating profi t 0.4 26.7 23.0 21.2 22.2 15.8 8.8 15.3 –7.0 32.1 –4.4 –8.0
Financial items, net –5.2 –6.4 –5.7 3.0 –3.7 –3.0 –4.2 –5.3 –3.5 –4.8 –3.1 –0.6
Profi t after fi nancial items –4.8 20.3 17.3 24.2 18.5 12.8 4.6 10.0 –10.5 27.3 –7.5 –8.6

Parent company income statement

Amounts in SEK million

Amounts in SEK million October October
December 2008 December 2007 Full year 2008 Full year 2007
Net sales 2.7 1.5 10.8 5.6
Cost of services sold –3.2 –1.7 –7.9 –5.4
Gross profi t –0.5 –0.2 2.9 0.2
Other operating costs –8.1 –7.9 –31.6 –38.5
Operating profi t –8.6 –8.1 –28.7 –38.3
Financial net 2.3 –0.2 2.9 35.7
Profi t before tax –6.3 –8.3 –25.8 –2.6
Appropriations 4.3 0.3 4.3 0.3
Income tax 0.5 1.1 7.0 10.5
Profi t for the period –1.5 –6.9 –14.5 8.2

Parent company balance sheet

December 2008 December 2007
Assets
Property, plant and equipment 0.7 1.7
Financial fi xed assets 1,015.2 947.1
Total fi xed assets 1,015.9 948.8
Current assets 40.2 56.1
Cash and cash equivalents 84.1 91.2
Total current assets 124.3 147.3
Total assets 1,140.2 1,096.1
Equity and liabilities
Equity 824.8 833.1
Untaxed reserves 2.5 6.9
Non-current liabilities 249.2 193.2
Current liabilities 63.7 62.9
Total liabilities 312.9 256.1
Totalt equity and liabilities 1,140.2 1,096.1

Major shareholders, December 31, 2008

Number of shares Share, %
The Karinen family 1,703,552 20.7
Briban Invest AB 1,283,492 15.6
Allianz Global Inv 714,561 8.7
Bank of New York, London 441,413 5.4
Goldman Sachs International Ltd 351,146 4.3
Lannebo Fonder 333,091 4.1
State Street Bank, Boston 267,552 3.3
Invus Investment AB 199,800 2.4
JP Morgan Chase Bank, England 184,450 2.2
Citibank NA, London 154,868 1.9
Total ten largest shareholders - holdings 5,633,925 68.6
Other shareholders 2,584,686 31.4
Total 8,218,611 100.0

The Studsvik share

In the fourth quarter the share price varied between a high of SEK 114 on October 1 and a low of SEK 47 on November 21. The opening price was SEK 155 at the beginning of the year and the closing price on December 31 was SEK 55. In the fourth quarter 0.3 million shares were traded and in 2008 2.96 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 1,200 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, Janne Höglund

Studsvik AB

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