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Studsvik Interim / Quarterly Report 2011

Oct 27, 2011

3208_10-q_2011-10-27_f4ef211e-d9c3-4993-b033-0664656379b8.pdf

Interim / Quarterly Report

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Interim Report January–September 2011

  • Sales for the third quarter amounted to SEK 252.8 million (295.3), a decrease of 12 per cent in local currencies.
  • The operating loss for the third quarter amounted to SEK –10.1 million (–9.1).
  • Cash fl ow from operating activities after investments improved to SEK 16.0 million (11.9).
  • Net debt decreased to SEK 157.3 million (214.0).
  • Reduced losses in the USA and the UK.
July–
September
2011
July–
September
2010
January–
September
2011
January–
September
2010
Full year
2010
Sales, SEK million 252.8 295.3 840.0 969.2 1,344.1
Operating profi t, SEK million –10.1 –9.1 1.0 –0.3 33.4
Profi t after tax, SEK million –14.8 –17.1 –15.0 –21.2 4.0
Cash fl ow from operating activities, SEK million 27.2 16.8 89.9 80.1 107.5
Cash fl ow after investments, SEK million 16.0 11.9 50.1 66.0 81.9
Profi t per share after tax, SEK –1.80 –2.09 –1.82 –2.59 0.49
Net debt, SEK million 157.3 214.0 157.3 214.0 207.6
Equity per share, SEK 62.30 61.11 62.30 61.11 63.37
Equity/assets ratio, % 37.2 36.9 37.2 36.9 36.5

Sales

Sales in the third quarter amounted to SEK 252.8 million (295.3). Sales in local currencies increased in the United Kingdom and were mainly unchanged in the USA. However, sales decreased in Sweden , GlobalServices and Germany. The decrease in Sweden was an effect of temporarily lower capacity utilization in the incineration operations, in Global Services it was an effect of the product mix and in Germanymainly an effect of lower capacity utilization in the segment's service resources. In local currencies sales decreased by 12 per cent. Sales in January–September amounted to SEK 840.0 million (969.2).

Profi t

The operating result for the third quarter decreased by SEK 1.0 millionto SEK –10.1 million (–9.1) and was for the period January– September SEK 1.0 million (–0.3). Foreign exchange effects had an impact of SEK 0.7 million (–1.4) on the Group's operating profi t for the third quarter and of SEK –0.8 million (–1.3) for January– September.

The operating margin adjusted for foreign exchange effects for the third quarter was –4.1 (–2.5) per cent and for January– September 0.2 (0.1) per cent. Net fi nancial income for the third quarter improvedto SEK –3.2 million (–6.6) and was for the periodJanuary– September SEK –10.5 million (–15.5). Taxes were SEK –1.5 million (–1.4) for the third quarter and SEK –5.5 million (–5.4) for January– September. The net loss for the third quarter was SEK –14.8 million (–17.1) and SEK –15.0 million (–21.2) for January– September.

Sweden

Sales in the third quarter amounted to SEK 27.5 million (38.8) and in January–September to SEK 106.8 million (128.7). Operating profi t in the third quarter decreased to SEK –4.1 million (1.3) and was in January–September SEK 4.1 million (10.3). The fi gure includes value changes in foreign exchange contracts of SEK 0.1 million (–2.2) in the third quarter and of SEK –0.1 million (–1.3) in January– September . Excluding these effects, the operating margin for January– September decreased to 4.0 (9.1) per cent.

Capacity utilization was high in the metal recycling facility but, mainly in August, was lower than normal in the incineration facility. The fall in capacity utilization was due to delayed incoming deliveries of material from Germany and entirely explains the sales and earnings deviation for the quarter. The situation for incoming deliveries and capacity utilization normalized in September. The order book is sound for both the incineration and the metal recycling facilities.

United Kingdom

Sales in the third quarter increased to SEK 27.5 million (15.1) and were in January–September SEK 76.4 million (58.3). The operating loss for the third quarter improved to SEK –3.4 million (–8.0) and for January–September to SEK –6.9 million (–19.5). The operating margin för January–September was –9.0 (–33.4) per cent.

The order book increased both for the metal recycling facility, MRF, and the consulting oper ations. Capacity utilization in the consulting operations was good during the quarter, but delayed incoming deliveries of material to the MRF temporarily reduced the rate of output during the quarter. The order book increased, which makes continued sound capacity utilization in the consulting operations and improved capacity utilization in the MRF possible.

Germany

Sales in the third quarter amounted to SEK 94.9 million (120.3) and in January–September to SEK 277.8 million (354.2). The operating profi t in the third quarter was SEK 8.2 million (11.6) and in January– September SEK 16.4 million (29.3). The operating margin was 5.9 (8.3) per cent for January–September.

The lower sales and operating profi t are explained by lower activity in service and maintenance as an effect of eight of the German reactors being shut down by a government decision. At the same time, fewer majordecom missioning projects are running in 2011, which has also had a negative impact on sales and earnings. During the third quarter , serviceand maintenance has been carried out on power plants in operation in accordance with earlier plans and will be carriedout during part of the fourth quarter. The parliamentary process in Germany has led to legislation to phase out nuclear power, which means that the eight reactors temporarily shut down in March will continue to be shut down and that the remaining nine reactors will be phased out in the period 2015–2022. The German market for service and maintenance will decline permanently, as 40 per cent of the reactors have been taken out of operation. Serviceand maintenance work on German reactors accounts for about 40 per cent of operations in the Germany segment. Measures to meet the new market situation have been taken.

USA

Sales in the third quarter decreased to SEK 43.1 million (47.2) and were in January–September SEK 155.4 million (183.1). The operating loss for the third quarter improved to SEK –11.2 million (–15.9) and was SEK –10.1 million (–25.7) for January–September. The operat ing margin was –6.5 (–14.1) per cent for January–September. Sales in local currency were by and large unchanged compared with the previous year. The seasonal variation of the business is characterized by higher sales in the fi rst and fourth quarters in relation to the second and third quarters. The seasonal variation is governed by the plans for refuelling and maintenance outages, which in the USA mean that nuclear power plants are shut down in spring and autumn. During the produc tion period only small volumesof waste are delivered from the power plants. The budgetcuts in the US Depart ment of Energy , which were announced mid-year, have had a negative effect on earnings in TTT during the quarter , a situation that will continueinto the fourth quarter.

Global Services

Sales in the third quarter amounted to SEK 54.2 million (61.3) and in January–September to SEK 203.4 million (207.1). Operating profi t for the third quarter amounted to SEK 6.5 million (6.6) and for January– September to SEK 20.9 million (22.9). The fi gure includes value changes in foreign exchange contracts of SEK –0.5 million (1.7) in the third quarter and of SEK –0.5 million (0.3) in January– September. The operating margin for January–September, excluding these effects, was 10.8 (10.9) per cent.

Sales decreased compared with the previous year. Materials testing and consulting services, however, continued to develop well in terms of profi tability due to an improved product mix. The order book is sound. The software operations developed in line with the previous year, but with improved profi tability. Tendering activity is good and the negative effects on demand after the natural disaster in Japan, noted in the second quarter, have subsided somewhat.

Investments

The Group's investments in the third quarter amounted to SEK 11.2 million (4.9) and in the period January–September to SEK 39.8 million(14.1). The increased investment refers mainly to the pyrolysis facility in Sweden.

Cash fl ow

Cash fl ow from operating activities before working capital changes in the third quarter was SEK 14.8 million (–5.0) and SEK 31.4 million (23.0) for January–September. Working capital decreased in the third quarter by SEK 12.4 million (21.8) and decreased in January– September by SEK 58.5 million (57.1).

Cash fl ow from operating activities after investments in the third quarter was SEK 16.0 million (11.9) and SEK 50.1 million (66.0) in January–September.

Financial position and liquidity

Cash and cash equivalents, including current investments, amounted to SEK 72.7 million (74.7).

Equity amounted to SEK 512.3 million (502.5) and the equity/ assets ratio was 37.2 (36.9) per cent.

The interest-bearing liabilities have been reduced considerably by repay ment and were SEK 229.9 million (288.7). The Group's total borrowing was conducted entirely in foreign currencies through invest ments and business acquisitions in the USA, Germany and the UK.

Personnel

The average number of employees was 1,137 (1,211).

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 sales in the third quarter amounted to SEK 2.7 million (2.6) and in the period January–September to SEK 8.1 million (7.9). The operating loss for the third quarter amounted to SEK –4.7 million (–4.7) and for the period January–September to SEK –18.9 million (–17.6). The profi t after fi nancial items in the third quarter amounted to SEK –5.2 million (14.1) and for the period January– September to SEK 1.0 million (5.0).

Cash and cash equivalents amounted to SEK 21.7 million (31.8) and interest-bearing liabilities to SEK 94.0 million (143.7).

New President and Chief Executive Offi cer

Anders Jackson has been appointed as the new President and Chief Executive Offi cer of Studsvik AB. He succeeds Magnus Groth, who left his position on August 31. Anders Jackson, who has held various leading positions in the Westinghouse Group, will take up his position on January 1, 2012. As of September 1 and until Anders Jackson takes over, the Board of Directors has appointed Studsvik's EVP and CFO, Jerry Ericsson, as acting President and CEO.

Risks and uncertainties

Studsvik operates in an international, competitive market and is there by 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 produc tion 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, or the withdrawal of licenses, which may result in shifts in delivery and production plans.

In all countries storage and fi nal disposal of nuclear waste are also subject to 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 expressions of 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.

The fi nancial risks and uncertainties mainly include fl uctuations in exchange rates and interest rates, and the company's ability to upholdcontracts for withdrawable lines of credit. The fi nancial risks also include counterparty risk, i.e. that the Group can be exposed to losses due to counterparty insolvency.

An overall analysis of the Group's risks and how they are dealt with is given in the Annual Report for 2010, which is available on the company's website.

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

Outlook

The need for electricity is increasing globally and electricity production from nuclear power will increase. New nuclear power capacity is being planned and built in many countries, in parallel with the modernization and output increase of nuclear power plants in severalof the countries where Studsvik operates. The impact on the market of the natural disaster in Japan has meant that a number of orders have been postponed or cancelled, but also brought some increaseddemand for qualifi ed consulting services in special niches. In Germany a fi nal decision has been made to phase out nuclear power by 2022, which will reduce demandfor service and maintenance in proportion to the volume for the 8 reactorsthat have already been taken out of operation. Decommissioning of nuclear facilities is continuing and is expected to continueby and large at an unchanged rate.

Accounting policies

Studsvik AB applies International Financial Reporting Standards as adopted by the European Union. Material accounting policiesand valuation principles are in accordance with those of the annual accountsfor the fi nancial year ended December 31, 2010. 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, Accountingfor legal entities.

Stockholm October 27, 2011

Jerry Ericsson President

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

Time schedule for fi nancial information

Year-end Report 2011 February 14, 2012
Interim Report January–March 2012 April 26, 2012
Interim Report January–June 2012 July 20, 2012
Interim Report January–September 2012 October 26, 2012

Annual General Meeting 2012

The Annual General Meeting will be held on Thursday, April 26, 2012.

For further information please contact

Jerry Ericsson, President, +46 155 22 10 32.

The interim report will be presented at a conference call to be held in English on October 27, at 14:30 CET. Further informa tion for those interested in participating is available at www.studsvik.se.

Group statement of comprehensive income

Amounts in SEK million July–
September
2011
July–
September
2010
January–
September
2011
January–
September
2010
Full year 2010
Net sales 252.8 295.3 840.0 969.2 1,344.1
Cost of services sold –210.8 –246.7 –670.9 –768.6 –1,027.2
Gross profi t 42.0 48.6 169.1 200.6 316.9
Other operating income 2.6 0.9 10.2 3.1 3.3
Selling and marketing expenses –10.2 –11.4 –34.2 –39.5 –52.8
Administrative expenses –39.4 –42.1 –128.0 –135.8 –186.6
Research and development costs –5.6 –6.7 –18.7 –31.3 –40.3
Share in non-controlling interest 1.5 2.4 6.2 4.2 7.3
Other operating expenses –1.0 –0.8 –3.6 –1.6 –14.4
Operating profi t –10.1 –9.1 1.0 –0.3 33.4
Financial income 4.0 –3.3 15.8 0.7 3.8
Financial expenses –7.2 –3.3 –26.3 –16.2 –22.9
Profi t after fi nancial items –13.3 –15.7 –9.5 –15.8 14.3
Income tax –1.5 –1.4 –5.5 –5.4 –10.3
Profi t for the period –14.8 –17.1 –15.0 –21.2 4.0
Other comprehensive income
Translation differences on foreign subsidiaries 18.8 –38.6 6.1 –26.7 –28.3
Cash fl ow hedges –2.6 26.5 0.6 12.6 5.3
Income tax on items recognized in other comprehensive income 0.6 –7.0 –0.2 –3.3 –1.4
Other comprehensive income for the period, net after tax 16.8 –19.1 6.5 –17.4 –24.4
Total comprehensive income for the period 2.0 –36.2 –8.5 –38.6 –20.4
Income for the period attributable to
Parent company's shareholders –14.8 –17.1 –15.0 –21.2 4.0
Non-controlling interest - - - - -
Total comprehensive income attributable to
Parent company's shareholders 2.0 –36.2 –8.5 –38.6 –20.4
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 –1.80 –2.09 –1.82 –2.59 0.49
After dilution –1.80 –2.09 –1.82 –2.59 0.49

Group statement of fi nancial position

Amounts in SEK million September September December
2011 2010 2010
Assets
Goodwill 318.1 313.7 313.4
Other intangible non-current assets 35.9 38.3 37.3
Property. plant and equipment 484.2 472.8 490.1
Financial non-current assets 182.9 165.1 173.8
Total non-current assets 1,021.1 989.9 1,014.6
Inventories 11.7 18.9 19.5
Trade receivables 167.9 157.5 239.7
Other current receivables 104.8 120.1 84.8
Liquid assets 72.7 74.7 68.4
Total current assets 357.1 371.2 412.4
Total assets 1,378.2 1,361.1 1,427.0
Equity and liabilities
Equity attributable to parent company's shareholders 512.0 502.2 520.5
Non-controlling interest 0.3 0.3 0.3
Borrowings 112.8 209.3 146.0
Provisions 267.8 222.0 259.4
Other non-current liabilities 40.1 12.7 13.6
Total non-current liabilities 420.7 444.0 419.0
Trade payables 65.1 64.9 85.8
Borrowings 117.1 79.4 129.9
Other current liabilities 263.0 270.3 271.5
Total current liabilities 445.2 414.6 487.2
Total equity and liabilities 1,378.2 1,361.1 1,427.0
Pledged assets 180.9 130.1 120.3
Contingent liabilities 143.2 86.8 139.3

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, 2010 8.2 225.3 22.8 284.6 540.9 0.3 541.2
Total comprehensive income for the period - - –24.4 4.0 –20.4 - –20.4
Closing balance at December 31, 2010 8.2 225.3 –1.6 288.6 520.5 0.3 520.8
Opening balance at January 1, 2011 8.2 225.3 –1.6 288.6 520.5 0.3 520.8
Total comprehensive income for the period - - 6.5 –15.0 –8.5 - –8.5
Closing balance at September 30, 2011 8.2 225.3 4.9 273.6 512.0 0.3 512.3

Statement of cash fl ow

Amounts in SEK million July– July– January– January–
September September September September
2011 2010 2011 2010 Full year 2010
Operating activities
Operating profi t –10.1 –9.1 1.0 –0.3 33.4
Depreciation 15.6 17.0 46.7 52.4 68.6
Adjustment for non-cash items 14.7 –5.0 11.3 –2.8 4.8
20.2 2.9 59.0 49.3 106.8
Financial items. net –2.5 –4.4 –9.0 –12.2 –15.7
Income tax paid –2.9 –3.5 –18.6 –14.1 –12.3
Cash fl ow from operating activities before changes
in working capital 14.8 –5.0 31.4 23.0 78.8
Changes in working capital 12.4 21.8 58.5 57.1 28.7
Cash fl ow from operating activities 27.2 16.8 89.9 80.1 107.5
Investing activities
Investments –11.2 –4.9 –39.8 –14.1 –25.6
Other changes from investing activities –0.4 2.3 0.7 –6.0 –15.9
Cash fl ow from investing activities –11.6 –2.6 –39.1 –20.1 –41.5
Cash fl ow from operating activities after invest
ments and other changes from investing activities 15.6 14.2 50.8 60.0 66.0
Financing activities
Change in borrowings –1.0 –9.1 –47.6 –56.8 –68.7
Dividend to shareholders - - - - -
Cash fl ow from investing activities –1.0 –9.1 –47.6 –56.8 –68.7
Changes in liquid assets 14.6 5.1 3.2 3.2 –2.7
Liquid assets at the beginning of the year 58.5 69.1 68.4 74.7 74.7
Translation difference in liquid assets –0.4 0.5 1.1 –3.2 –3.6
Liquid assets at the end of the period 72.7 74.7 72.7 74.7 68.4

Financial ratios for the Group

Amounts in SEK million January–
September
January–
September
2011 2010 Full year 2010
Operating profi t
Operating profi t before depreciation 47.7 52.1 102.1
Margins
Operating margin before depreciation, % 5.7 5.4 7.6
Operating margin, % 0.1 neg 2.5
Profi t margin, % neg neg 1.1
Profi tability
Return on operating capital, % 0.2 neg 4.3
Return on capital employed, % 2.9 0.1 4.4
Return on equity, % neg neg 0.8
Capital structure
Operating capital 669.6 716.6 729.3
Capital employed 742.3 791.3 797.7
Equity 512.3 502.5 520.8
Interest-bearing net debt 157.3 214.0 207.6
Net debt-equity ratio 0.3 0.4 0.4
Interest cover ratio 0.6 0.0 1.6
Equity/assets ratio, % 37.2 36.9 36.5
Cash fl ow
Self fi nancing ratio 2.1 2.9 2.1
Investments 39.8 14.1 25.6
Employees
Average number of employees 1,137 1,211 1,169
Net sales per employee 1.0 1.1 1.1
Data per share July–
September
July–
September
January–
September
January–
September
2011 2010 2011 2010 Full year 2010
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 –1.80 –2.09 –1.82 –2.59 0.49
Earnings per share after dilution, SEK –1.80 –2.09 –1.82 –2.59 0.49
Equity per share, SEK 62.30 61.11 62.30 61.11 63.37

Net sales per geographical segment

Amounts in SEK million July– July– January– January–
September September September September
2011 2010 2011 2010 Full year 2010
Sweden 41.6 30.5 137.2 170.8 240.8
Europe, excluding Sweden 150.8 194.4 467.6 535.5 724.4
North America 57.2 63.2 218.0 239.6 353.7
Asia 3.2 7.2 17.2 23.3 25.2
Other markets - - - - 0.0
Total 252.8 295.3 840.0 969.2 1,344.1

Quarterly review

Amounts in SEK million 2009 2010 2011
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3
Net sales 277.0 315.8 275.0 348.5 345.8 328.1 295.3 374.9 297.2 290.0 252.8
Operating expenses –298.2 –354.9 –282.8 –310.4 –322.6 –313.7 –304.4 –341.2 –288.5 –287.6 –262.9
Operating profi t –21.2 –39.1 –7.8 38.1 23.2 –14.4 –9.1 33.7 8.7 2.4 –10.1
Financial items. net –5.4 –6.9 –5.5 –1.9 –5.7 –3.2 –6.6 –3.6 –5.2 –2.1 –3.2
Profi t after fi nancial items –26.6 –46.0 –13.3 36.2 17.5 –17.6 –15.7 30.1 3.5 0.3 –13.3

Financial data per segment

Amounts in SEK million United Global Elimina
July–September 2011 Sweden Kingdom Germany USA Services Other tions Group
External sales revenue 26.9 27.5 94.0 43.1 54.2 7.1 - 252.8
Revenue from segment 0.6 - 0.9 - 0.0 2.8 –4.3 0.0
Operating profi t –4.1 –3.4 8.2 –11.2 6.5 –6.1 - –10.1
Assets 133.6 189.2 255.8 576.8 167.9 252.5 –197.6 1,378.2
Liabilities 138.7 85.1 191.0 382.8 91.0 174.9 –197.6 865.9
Investments 6.1 0.4 0.3 2.8 1.5 0.1 - 11.2
Depreciation/amortization 2.8 1.2 0.7 8.1 1.6 1.2 - 15.6
Average number of employees 93 69 624 109 160 76 - 1,131
July–September 2010 Sweden United
Kingdom
Germany USA Global
Services
Other Elimina
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
United Global Elimina
January–September 2011 Sweden Kingdom Germany USA Services Other tions Group
External sales revenue 103.3 76.4 276.6 155.4 203.1 25.2 - 840.0
Revenue from segment 3.5 - 1.2 - 0.3 8.6 –13.6 0.0
Operating profi t 4.1 –6.9 16.4 –10.1 20.9 –23.4 - 1.0
Assets 133.6 189.2 255.8 576.8 167.9 252.5 –197.6 1,378.2
Liabilities 138.7 85.1 191.0 382.8 91.0 174.9 –197.6 865.9
Investments 20.2 1.4 0.6 3.0 13.5 1.1 - 39.8
Depreciation/amortization 8.6 3.8 2.2 24.2 4.4 3.5 - 46.7
Average number of employees 91 68 633 109 161 75 - 1,137
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
Full year 2010 Sweden United
Kingdom
Germany USA Global
Services
Other Elimina
tions
Group
External sales revenue 175.7 80.5 460.0 272.0 296.3 59.6 - 1,344.1
Revenue from segment 4.2 - 1.5 - 0.4 8.1 –14.2 0.0
Operating profi t 19.9 –24.2 28.8 1.4 33.1 –25.6 - 33.4
Assets 129.3 182.3 254.3 608.9 187.1 390.3 –325.2 1,427.0
Liabilities 125.6 154.6 184.8 398.5 139.6 228.3 –325.2 906.2
Investments 8.4 1.1 1.8 3.5 9.2 1.6 - 25.6
Depreciation/amortization 11.1 6.0 4.9 35.5 5.9 5.2 - 68.6
Average number of employees 92 64 661 107 153 92 - 1,169

Parent company income statement

Amounts in SEK million July– July– January– January–
September September September September
2011 2010 2011 2010 Full year 2010
Net sales 2.7 2.6 8.1 7.9 10.5
Cost of services sold –1.0 –0.7 –2.4 –2.2 –3.1
Gross profi t 1.7 1.9 5.7 5.7 7.4
Other operating costs –6.4 –6.6 –24.6 –23.3 –33.0
Operating profi t –4.7 –4.7 –18.9 –17.6 –25.6
Dividends from subsidiaries 0.0 18.4 17.9 21.4 21.4
Financial net –0.5 0.4 2.0 1.2 1.7
Profi t before tax –5.2 14.1 1.0 5.0 –2.5
Income tax 1.6 1.1 4.8 4.6 6.8
Profi t for the period –3.6 15.2 5.8 9.6 4.3

Parent company balance sheet

Amounts in SEK million September September December
2010
2011 2010
Assets
Property plant and equipment 0.1 0.2 0.1
Financial non-current assets 1,100.8 1,095.6 1,104.2
Total non-current assets 1,100.9 1,095.8 1,104.3
Current assets 8.2 19.5 38.1
Liquid assets 21.7 31.8 43.2
Total current assets 29.9 51.3 81.3
Total assets 1,130.8 1,147.1 1,185.6
Equity and liabilities
Equity 889.0 866.4 883.2
Provisions –1.2 2.1 -
Non-current liabilities 61.4 141.6 89.8
Current liabilities 181.6 137.0 212.6
Total liabilities 243.0 278.6 302.4
Total equity and liabilities 1,130.8 1,147.1 1,185.6

Major shareholders, September 30, 2011

Number of shares Share, %
The Karinen family 1,769,552 21.5
Briban Invest AB 1,283,492 15.6
Allianz Global Investors 716,016 8.7
Credit Agricole Suisse SA 348,098 4.2
Invus Investment AB 224,800 2.7
State Street Bank, Boston 164,532 2.0
Citibank NA, London 154,695 1.9
HSBC Trinkahaus and Burkhardt AG 136,530 1.7
Avanza Pensionsförsäkring AB 131,814 1.6
Blue Whale Ltd 131,246 1.6
Total ten largest shareholders – holdings 5,060,775 61.5
Other shareholders 3,157,836 38.5
Total 8,218,611 100.0

The Studsvik share

In the third quarter the share price varied between a high of SEK 52.75 on July 7 and a low of SEK 35.50 on September 30, 2011. The openingprice was SEK 73 at the beginning of the year and the closing price on September 30 was SEK 35.50 In the third quarter 0.387 million shares were traded and during the period January–September 2.268 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).

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.se