Studsvik — Interim / Quarterly Report 2010

Oct 25, 2010

Interim Report January–September 2010

• Net sales for the third quarter increased by 7 per cent to SEK 295.3 million (275.0).
• Operating profi t for the third quarter decreased by SEK 1.3 million to SEK –9.1 million (–7.8).
• Continued positive trend in the segments Sweden, Germany and Global Services, but continued losses in the USA and the UK.
• Cash fl ow from operating activities after investments was SEK 14.2 million (10.9).

	July– September 2010	July– September 2009	January– September 2010	January– September 2009	Full year 2009
Net sales. SEK million	295.3	275.0	969.2	867.8	1,216.3
Operating profi t, SEK million	–9.1	–7.8	–0.3	–68.1	–30.0
Profi t after tax, SEK million	–17.1	–9.7	–21.2	–63.0	–35.2
Cash fl ow after investments, SEK million	14.2	10.9	60.0	–86.4	–68.9
Profi t per share after tax, SEK	–2.09	–1.19	–2.59	–7.67	–4.28
Equity per share, SEK	61.11	63.13	61.11	63.13	65.82
Equity-assets ratio, %	36.9	37.9	36.9	37.9	37.2

Net sales

Net sales for the third quarter amounted to SEK 295.3 million (275.0) and for the period January–September, to SEK 969.2 million (867.8). In local currencies this corresponds to an increase of 8.9 per cent in the third quarter and 15.8 per cent for the period January– September. Net sales increased in local currencies in all segments except the United Kingdom, which reported a marginal decrease in net sales.

Profi t

The operating loss for the third quarter decreased by SEK 1.3 million to SEK –9.1 million (–7.8) and for the period January–September to SEK –0.3 million (–68.1). Structural and project costs in the UK and the US of SEK –33.0 million were recognized as an expense in the Group's income statement for January–September in the previous year. The exceptional shortageof transportation capacity that arose in the USA in the secondquartercontinued throughout the third quarter, which severelyrestrictedincomingdeliveries of material to the Erwin facility . In Germany the positive trend continued and operat ing profi t improved as an effect of good capacity utilization. In Sweden the under lying operative result improved, which was, however, offset by value changes in forward exchange contracts. The United Kingdom reportedlosses that were by and large on the same level as the previous year. Global Services' stable growth in sales and earningscontinued.

The Group's operating profi t in the third quarter was impacted by foreignexchange effects of SEK –0.8 million (–1.1) and in the period January –September of SEK –0.3 million (–9.9).

Net fi nancial income for the third quarter amounted to SEK –6.6 million (–5.5) and for the period January–September to SEK –15.5 million (–17.8).

After taxes of SEK –1.4 million (3.6) for the third quarter and SEK –5.4 million (22.9) for January–September the net loss was SEK –17.1 million (–9.7) for the third quarter and SEK –21.2 million (–63.0) for January–September. Taxes for January–September include deferred tax assets for the USA and the UK of SEK 5.8 million in 2010 and SEK 30.3 million in 2009.

Sweden

Net sales increased in the third quarter to SEK 38.8 million (34.5) in were in January–September SEK 128.7 million (115.8). Operating profi t in the third quarter was SEK 1.3 million (3.5) and in January – September SEK 10.3 million (9.1). The fi gure includes fair value changes in forward exchange contracts of SEK –2.2 million (0) in the third quarter and of SEK –1.3 million (–1.7) in the period January– September. The operating margin for the period January– September, excluding these effects, was 9.1 (9.4) per cent.

The incineration facility also operated at high capacity utilization levels in the third quarter. The order book is sound.

The metal recycling facility was used mainly for large components. The order for treatment of steam generators for the Canadian company Bruce Power attracted major media attention in the third quarter . After the balance sheet date the Canadian radiation protection authority held a public hearing ahead of its shipment authorization decision. Shipment to Sweden of the fi rst 16 steam generators is expected to take place in spring 2011. This is a delay in relation to the original plan. The order book for metallic material is good, so the delay will not affect the capacity utilization situation .

United Kingdom

Net sales in the third quarter were SEK 15.1 million (18.4) and in January –September SEK 58.3 million (65.8). The operating loss for the third quarter was SEK –8.0 million (–7.3) and for January– September SEK –19.5 million (–40.8). Last year structural and projectcosts of SEK –22.8 million were recognized as an expense for January –September.

The Metal Recycling Facility (MRF) had a weak infl ow of orders and low capacity utilization in the third quarter too. After negotiations conducted by Studsvik with the Nuclear Decommissioning Authority (NDA) over a long period, the NDA allocated separate funds to fi nancethe treatment of metallic material. The NDA decision, which will have an impact from the fourth quarter, creates the conditions for establishing a fl ow of material that will provide a basic level of capacity utilization in the MRF. Large parts of the UK nuclear power market are dependent on government funding . In the current fi scal situation appropriations and budgets have been reduced . Capacity utilization in the consulting business has decreasedas a direct consequence of this. Organization and staffi ng have been adapted to the changed market situation.

Germany

Net sales decreased in the third quarter to SEK 120.3 million (126.8) and were in January–September SEK 354.2 million (337.0). Operatingprofi t in the third quarter increased to SEK 11.6 million (9.6) and was in January–September SEK 29.3 million (20.2). The operating margin for January–September was 8.3 (7.6) per cent.

The German market is characterized by a high level of activity and capacity utilization was high in all the segment's operational areas. Annual maintenance work at German nuclear power reactors was in progress during the quarter, resulting in substantial capacity utilization. In August the level of maintenance work was somewhat lower than the previous year, which explains the marginally lower net sales fi gure for the third quarter. In September the level of maintenance work increased again. At present the segment is experiencing some shortage of resources as an effect of the high level of market activity.

Activity remained high in decommissioning projects in Germany and Belgium and qualifi ed technical consulting services continued to grow. The order situation in the segment is good.

On September 6, the German government announced its nuclear power policy, under which amended legislation will extend the opera tional period of German reactors by an average of 12 years. This will open a new marketin the form of modernization work and measures to extend reactor lifetimes.

USA

Net sales increased in the third quarter to SEK 47.2 million (42.2) and were in January–September SEK 183.1 million (149.6). Operating profi t in the third quarter decreased to SEK –15.9 million (–12.8) and was in January–September SEK –25.7 million (–54.3). Last year structural and projectcosts of SEK –10.2 million were recognized as an expense for January –September.

The exceptional situation with a shortage of transport containers, which arose in the second quarter, continued into the third quarter too. The transport containers are mainly used for material with a high radioactive content, called class B/C waste. Only small volumes of class B/C waste were received in Erwin during the quarter. The shortfall could partly be compensated for by material of a lower radio active content. At the end of September three out of a total of four transport containers were again in operation, consequently the transport situation is becoming normal.

Metallic and organic waste is treated at the facility in Memphis. Market activity continues to be low given the general economic background. Customers are waiting to send waste for treatment and thus cutting costs in the short term. Visibility in the market is low and forward planning is short, which imposes high demands on production logistics.

The segment has a small consulting business, in which operations are primarily based on Studsvik's patented THOR technology. The customer base is in the USA but also includes some countries outside the US, such as France, where the technology has met with interest. The operations are in process of being built up.

Global Services

Net sales increased in the third quarter to SEK 61.3 million (51.2) and were in January–September SEK 207.1 million (177.1). The operating profi t for the third quarter increased to SEK 6.6 million (5.8) and was for January–September SEK 22.9 million (21.3). The fi gure includes effects of fair value measurement of forward exchange contracts of SEK 1.7 million (–0.6) in the third quarter and of SEK 0.3 million (3.7) to date this year. The operating margin for the period January– September , excluding these effects, was 10.9 (9.9) per cent.

The positive trend for materials testing and consulting services is continuing, with increased net sales, improved earnings and a sound order book. The performance of software operations was at the same level as the previous year. The business in the segment is favoredboth by plans to build new nuclear power and by the renova tion and modernization of existing nuclear power plants.

Investments

The Group's investment in the third quarter amounted to SEK 4.9 million (23.8) and for the period January–September, to SEK 14.1 million (74.6).

Cash fl ow

Cash fl ow from operating activities before working capital changes in the third quarter was SEK –5.0 million (–6.0) and SEK 23.0 million (2.9) for January–September.

Working capital decreased in the third quarter by SEK 21.8 million (41.0) and in the period January–September by SEK 57.1 million (0.2).

Cash fl ow from operating activities after investments was SEK 14.2 million (10.9) in the third quarter and SEK 60.0 million (–86.4) for the period January–September.

Financial position and liquidity

Cash and cash equivalents, including current investments, amounted to SEK 74.7 million (53.0).

Equity amounted to SEK 502.5 million (519.1) and the equityassetsratio was 36.9 (37.9) per cent.

Interest-bearing liabilities amounted to SEK 288.7 million (357.1). The Group's total borrowing is conducted entirely in foreign currenciesthrough investments and business acquisitions in the USA, Germany and the UK. Foreign exchange effects on translation of interest-bearing liabilities to Swedish kronor amounted to SEK –33.1 million (–34.2) in the third quarter.

Net interest-bearing debt decreased and was SEK 214.2 million (304.1).

Personnel

The average number of employees was 1,211 (1,163). Germany reportsthe most vigorous growth and had an average of 707 (668) employees. Global Services also reports a strong increase, mainly in the consulting business, and had an average of 152 (136) employees . The average number of employees in the United Kingdom has been reduced to 62 (77) in view of the earnings trend.

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 third quarter were SEK 2.6 million(2.9) and for the period January–September SEK 7.9 million (8.4). The operating loss for the third quarter amounted to SEK –4.7 million(–6.6). The operating loss for the period January–September amounted to SEK –17.6 million (–23.6). Profi t after fi nancial items in the third quarter was SEK 14.1 million (–5.0) and for the period January –September SEK 5.0 million (7.2). Dividends from subsidiaries of SEK 18.4 (0) million are included in earnings for the third quarter and of SEK 21.4 (32.0) million for January–September.

The parent company's investments amounted to SEK 0 million (0). Cash and cash equivalents amounted to SEK 31.8 million (22.1) and interest-bearing liabilities to SEK 143.7 million (205.4).

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 requireslegal 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.

In all countries storage and fi nal disposal of nuclear waste are subjectto a strict regulatory framework, which for example stipulates criteria that the waste must meet in physical and chemical terms when it is sent for fi nal disposal. Changes in this regulatory framework could mean that the business competitiveness of some of Studsvik's services would be changed.

Issues concerning nuclear technology may be subject to various expressionsof opinion and debate. In such a context it cannot be ruled out that opinion may emerge on matters that directly or indirectlyalter Studsvik's scope of business action.

Financial risks and uncertainties mainly include fl uctuations in exchangerates and interest rates, and the company's ability to upholdkey ratios (covenants) that regulate borrowing. The fi nancial risks also include counterparty risk, i.e. that the Group can be exposedto losses due to counterparty insolvency.

An overall analysis of the Group's risks and how they are dealt with is given on page 16 of the Annual Report for 2009 and in Note 2 of the annual accounts, "Financial risk management".

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

Outlook

Modernization and increasing output of nuclear power plants is takingplace in several of the countries where Studsvik operates . New nuclear power capacity is being planned and built in an increasing number of countries. Decommissioning of nuclear facilities is continuing and is expected to continue by and large at an unchanged rate. Demand for services of the type Studsvik offers, including waste treatment, materials testing and consulting services, is strong, which is refl ected in a good order book in the segments Sweden, Germany and Global Services.

Current contract volumes for the Erwin facility provide potential for profi tability in the USA operations. However, the market continues to be affected to some extent by the weak economy. The UK market is also infl uenced by the weak economy, which is refl ected in a thin order book. With the new metal recycling facility Studsvik holds a strong market position in the United Kingdom. The recycling facility is in a development phase, focused on successively securing a stable infl ow of material to the facility to build long-term profi tability of operations.

Accounting policies

Studsvik AB applies International Financial Reporting Standards as adopted by the European Union. Material accounting policies and valuation principles are in accordance with those of the annual accountsfor the fi nancial year ended December 31, 2009. This interimreport was prepared in accordance with IAS 34 and the Annual Accounts Act. The interim report for the parent company was prepared in accordance with the Annual Accounts Act and the Swedish Financial Reporting Board recommendation RFR 2.3 Accountingfor legal entities.

Stockholm, October 25, 2010

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, 2010. 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 expressa conclusion on this interim report based on our review. We conductedour review in accordance with the Standard on ReviewEngagements 2410, "Review of Interim Financial Information Performedby 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 accord ance 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 Annutal AccountsAct.

Stockholm, October 25, 2010

PricewaterhouseCoopers AB

Magnus Brändström Authorized public accountant Auditor in charge

Time schedule for fi nancial information

February 10, 2011
April 28, 2011
July 20, 2011
October 27, 2011

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 October 25, at 15:00 CET. Further information for those interested in participating is available at www.studsvik.se.

Group statement of comprehensive income

Amounts in SEK million	July– September	July– September	January– September	January– September
	2010	2009	2010	2009	Full year 2009
Net sales	295.3	275.0	969.2	867.8	1,216.3
Cost of services sold	–246.7	–214.8	–768.6	–693.5	–949.4
Gross profi t	48.6	60.2	200.6	174.3	266.9
Other operating income	0.9	–2.2	3.1	3.0	15.8
Selling and marketing expenses	–11.4	–11.3	–39.5	–40.1	–52.0
Administrative expenses	–42.1	–44.8	–135.8	–149.9	–201.1
Research and development costs	–6.7	–10.5	–31.3	–35.3	–46.1
Share in non-controlling interest	2.4	0.8	4.2	3.4	13.1
Other operating expenses	–0.8	0.0	–1.6	–23.5	–26.6
Operating profi t	–9.1	–7.8	–0.3	–68.1	–30.0
Financial income	–3.3	7.9	0.7	8.1	4.8
Financial expenses	–3.3	–13.4	–16.2	–25.9	–24.5
Profi t after fi nancial items	–15.7	–13.3	–15.8	–85.9	–49.7
Income tax	–1.4	3.6	–5.4	22.9	14.5
Profi t for the period	–17.1	–9.7	–21.2	–63.0	–35.2
Other comprehensive income
Translation differences on foreign subsidiaries	–38.6	–31.5	–26.7	–28.7	–22.6
Cash fl ow hedges	26.5	10.0	12.6	11.1	–4.9
Income tax on items recognized in other comprehensive income	–7.0	–2.6	–3.3	–2.9	1.3
Other comprehensive income for the period, net after tax	–19.1	–24.1	–17.4	–20.5	–26.2
Total comprehensive income for the period	–36.2	–33.8	–38.6	–83.5	–61.4
Income for the period attributable to
Parent company's shareholders	–17.1	–9.7	–21.2	–63.0	–35.2
Non-controlling interest	-	-	-	-	-
Total comprehensive income attributable to
Parent company's shareholders	–36.2	–33.8	–38.6	–83.5	–61.4
Non-controlling interest	0.0	0.0	0.0	0.0	0.0
Earnings per share calculated on income attribu table to the parent company's shareholders during the period, SEK
Before dilution	–2.09	–1.19	–2.59	–7.67	–4.28
After dilution	–2.09	–1.19	–2.59	–7.67	–4.28

Group statement of fi nancial position

Amounts in SEK million

	September 2010 September 2009		December 2009
Assets
Goodwill	313.7	335.0	342.3
Other intangible non-current assets	38.3	45.7	45.2
Property, plant and equipment	472.8	492.2	527.8
Financial non-current assets	165.1	132.0	147.8
Total non-current assets	989.9	1 004.9	1,063.1
Inventories	18.9	25.0	17.9
Trade receivables	157.5	217.6	228.3
Other current receivables	120.1	67.4	69.3
Liquid assets	74.7	53.0	74.7
Total current assets	371.2	363.0	390.2
Total assets	1,361.1	1,367.9	1,453.3
Equity and liabilities
Equity attributable to parent company's shareholders	502.2	518.8	540.9
Non-controlling interest	0.3	0.3	0.3
Borrowings	209.3	311.2	284.5
Provisions	222.0	130.2	169.9
Other non-current liabilities	12.7	9.3	11.4
Total non-current liabilities	444.0	450.7	465.8
Trade payables	64.9	80.8	70.7
Borrowings	79.4	45.9	85.4
Other current liabilities	270.3	271.4	290.2
Total current liabilities	414.6	398.1	446.3
Total equity and liabilities	1,361.1	1,367.9	1,453.3
Pledged assets	130.1	202.0	171.7
Contingent liabilities	86.8	64.5	66.8

Changes in equity

Amounts in SEK million					Equity
					attrib u table
		Other			to the parent	Non
	Share	contributed		Retained company's		controlling
	capital	capital	Reserves	earnings	shareholders	interest	Total equity
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			–26.2	–35.2	–61.4		–61.4
Dividend to shareholders				–8.2	–8.2		–8.2
Closing balance at December 31, 2009	8.2	225.3	22.8	284.6	540.9	0.3	541.2
Opening balance at January 1, 2010	8.2	225.3	22.8	284.6	540.9	0.3	541.2
Total comprehensive income for the period			–17.4	–21.3	–38.7		–38.7
Closing balance at September 30, 2010	8.2	225.3	5.4	263.3	502.2	0.3	502.5

Statement of cash fl ow

Amounts in SEK million	July–	July–	January–	January–
	September 2010	September 2009	September 2010	September 2009	Full year 2009
Operating activities
Operating profi t	–9.1	–7.8	–0.3	–68.1	–30.0
Depreciation	17.0	16.7	52.4	57.0	75.2
Adjustment for non-cash items	–5.0	1.0	–2.8	34.9	18.0
	2.9	9.9	49.3	23.8	63.2
Financial items, net	–4.4	–6.5	–12.2	–17.8	–21.4
Income tax paid	–3.5	–9.4	–14.1	–3.1	–3.1
Cash fl ow from operating activities before changes
in working capital	–5.0	–6.0	23.0	2.9	38.7
Changes in working capital	21.8	41.0	57.1	0.2	–17.3
Cash fl ow from operating activities	16.8	35.0	80.1	3.1	21.4
Investing activities
Investments	–4.9	–23.8	–14.1	–74.6	–78.8
Other changes from investing activities	2.3	–0.3	–6.0	–14.9	–11.5
Cash fl ow from investing activities	–2.6	–24.1	–20.1	–89.5	–90.3
Cash fl ow from operating activities after invest
ments and other changes from investing activities	14.2	10.9	60.0	–86.4	–68.9
Financing activities
Change in borrowings	–9.1	0.0	–56.8	2.4	6.4
Dividend to shareholders	-	-	-	–8.2	–8.2
Cash fl ow from investing activities	–9.1	0.0	–56.8	–5.8	–1.8
Changes in liquid assets	5.1	10.9	3.2	–92.2	–70.7
Liquid assets at the beginning of the year	69.1	43.2	74.7	147.7	147.7
Translation difference in liquid assets	0.5	–1.1	–3.2	–2.5	–2.3
Liquid assets at the end of the period	74.7	53.0	74.7	53.0	74.7

Financial ratios for the Group

Amounts in SEK million	January–	January–
	September	September
	2010	2009	Full year 2009
Operating profi t
Operating profi t before depreciation	52.1	–11.1	45.3
Margins
Operating margin before depreciation, %	5.4	neg	3.7
Operating margin, %	neg	neg	neg
Profi t margin, %	neg	neg	neg
Profi tability
Return on operating capital, %	neg	neg	neg
Return on capital employed, %	0.1	neg	neg
Return on equity, %	neg	neg	neg
Capital structure
Operating capital	716.6	823.2	836.5
Capital employed	791.3	876.2	911.2
Equity	502.5	519.1	541.2
Interest-bearing net debt	214.2	304.1	295.3
Net debt-equity ratio	0.4	0.6	0.5
Interest cover ratio	0.0	neg	neg
Equity-assets ratio, %	36.9	37.9	37.2
Cash fl ow
Self fi nancing ratio	2.88	neg	0.3
Investments	14.1	71.1	78.8
Employees
Average number of employees	1,211	1,163	1,132
Net sales per employee	1.1	1.0	1.1

Data per share

	July–	July–	January–	January–
	September	September	September	September
	2010	2009	2010	2009	Full year 2009
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	–2.09	–1.19	–2.59	–7.67	–4.28
Earnings per share after dilution, SEK	–2.09	–1.19	–2.59	–7.67	–4.28
Equity per share, SEK	61.11	63.13	61.11	63.13	65.82

Net sales per geographical segment

Amounts in SEK million	July–	July–	January–	January–
	September	September	September	September
	2010	2009	2010	2009	Full year 2009
Sweden	30.5	39.9	170.8	147.4	219.9
Europe, excluding Sweden	194.4	191.2	535.5	513.1	716.3
North America	63.2	37.9	239.6	181.5	250.2
Asia	7.2	2.6	23.3	21.0	29.9
Other markets	-	3.4	-	4.8	0.0
Total	295.3	275.0	969.2	867.8	1,216.3

Quarterly review

Amounts in SEK million	2010			2009				2008
	Q1	Q2	Q3	Q1	Q2	Q3	Q4	Q1	Q2	Q3	Q4
Net sales	345.8	328.1	295.3	277.0	315.8	275.0	348.5	320.0	370.6	274.2	321.1
Operating expenses	–322.6	–313.7	–304.4	–298.2	–354.9	–282.8	–310.4	–327.0	–338.5	–278.6	–329.1
Operating profi t	23.2	–14.4	–9.1	–21.2	–39.1	–7.8	38.1	–7.0	32.1	–4.4	–8.0
Financial items, net	–5.7	–3.2	–6.6	–5.4	–6.9	–5.5	–1.9	–3.5	–4.8	–3.1	–0.6
Profi t after fi nancial items	17.5	–17.6	–15.7	–26.6	–46.0	–13.3	36.2	–10.5	27.3	–7.5	–8.6

Financial data per segment

Amounts in SEK million		United			Global		Elimina
July–September 2010	Sweden	Kingdom	Germany	USA	Services	Other	tions	Group
External sales revenue	38.8	15.1	120.3	47.2	61.2	12.7	-	295.3
Revenue from segment	0.0	-	0.0	-	0.1	2.1	–2.2	0.0
Operating profi t	1.3	–8.0	11.6	–15.9	6.6	–4.7	-	–9.1
Assets	125.8	181.3	271.2	552.3	151.0	374.5	–295.0	1,361.1
Liabilities	100.5	167.6	199.7	366.5	96.7	222.6	–295.0	858.6
Investments	3.3	0.3	0.3	0.3	0.3	0.4	-	4.9
Depreciation/amortization	2.8	1.7	0.9	8.8	1.5	1.3	-	17.0
Average number of employees	91	66	718	107	152	91	-	1,225
July–September 2009	Sweden	United Kingdom	Germany	USA	Global Services	Other	Elimina 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
January–September 2010	Sweden	Kingdom	Germany	USA	Services	Other	tions	Group
External sales revenue	127.7	58.3	353.3	183.1	206.9	39.9	-	969.2
Revenue from segment	1.0	-	0.9	-	0.2	6.1	–8.2	0.0
Operating profi t	10.3	–19.5	29.3	–25.7	22.9	–17.6	-	–0.3
Assets	125.8	181.3	271.2	552.3	151.0	374.5	–295.0	1,361.1
Liabilities	100.5	167.6	199.7	366.5	96.7	222.6	–295.0	858.6
Investments	5.7	1.0	0.9	3.0	2.4	1.1	-	14.1
Depreciation/amortization	8.2	4.7	3.9	27.2	4.4	4.0	-	52.4
Average number of employees	92	62	707	107	152	91	-	1,211
		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
Full year 2009	Sweden	United Kingdom	Germany	USA	Global Services	Other	Elimina tions	Group
External sales revenue	152.8	86.1	448.3	213.1	262.7	53.3	-	1,216.3
Revenue from segment	18.5	-	2.2	0.2	1.6	10.3	–32.8	0.0
Operating profi t	27.7	–50.2	27.8	–50.0	45.7	–31.0	-	–30.0
Assets	154.8	199.4	273.6	604.1	200.4	422.2	–401.2	1,453.3
Liabilities	88.6	167.9	193.0	371.0	162.0	330.8	–401.2	912.1
Investments	7.7	56.4	4.1	–0.2	8.3	2.5	-	78.8
Depreciation/amortization	10.4	3.2	8.3	40.8	7.0	5.5	-	75.2
Average number of employees	90	66	644	101	138	93	-	1,132

Parent company income statement

Amounts in SEK million	July–	July–	January–	January–
	September	September	September	September
	2010	2009	2010	2009	Full year 2009
Net sales	2.6	2.9	7.9	8.4	11.2
Cost of services sold	–0.7	–1.4	–2.2	–5.3	–6.3
Gross profi t	1.9	1.5	5.7	3.1	4.9
Other operating costs	–6.6	–8.1	–23.3	–26.7	–35.9
Operating profi t	–4.7	–6.6	–17.6	–23.6	–31.0
Dividends from subsidiaries	18.4	-	21.4	32.0	32.0
Financial net	0.4	1.6	1.2	–1.2	–0.6
Profi t before tax	14.1	–5.0	5.0	7.2	0.4
Appropriations	-	-	-	-	2.5
Income tax	1.1	–0.2	4.6	4.8	7.8
Profi t for the period	15.2	–5.2	9.6	12.0	10.7

Parent company balance sheet

Amounts in SEK million

		September 2010 September 2009	December 2009
Assets
Property plant and equipment	0.2	0.5	0.4
Financial non-current assets	1,095.6	1,081.5	1,095.2
Total non-current assets	1,095.8	1,082.0	1,095.6
Current assets	19.5	24.8	48.9
Liquid assets	31.8	22.1	49.3
Total current assets	51.3	46.9	98.2
Total assets	1,147.1	1,128.9	1,193.8
Equity and liabilities
Equity	866.4	828.6	856.8
Untaxed reserves	-	2.5	-
Provisions	2.1	2.0	-
Non-current liabilities	141.6	212.5	182.5
Current liabilities	137.0	83.3	154.5
Total liabilities	278.6	295.8	337.0
Total equity and liabilities	1,147.1	1,128.9	1,193.8

Major shareholders, September 30, 2010

	Share, %
1,769,552	21.5
1,283,492	15.6
714,561	8.7
410,929	5.0
348,098	4.2
263,618	3.2
199,800	2.4
154,868	1.9
136,730	1.7
131,246	1.6
5,412,894	65.8
2,805,717	34.2
8,218,611	100.0
	Number of shares

The Studsvik share

During the third quarter, the share price varied between a high of SEK 77 on July 20, and a low of SEK 59.75 on September 28. The openingprice was SEK 65.25 at the beginning of the year and the closing price on September 30 was SEK 61.50. During the third quarter, 0.37 millionshares were traded and during the period January–September 2.12 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 mis sioning, 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

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 studsvik@studsvik.se www.studsvik.se