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Studsvik Interim / Quarterly Report 2011

Jul 20, 2011

3208_ir_2011-07-20_b4314ae2-2906-4716-b5d8-4327595f0656.pdf

Interim / Quarterly Report

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Interim Report January–June 2011

  • Sales for the second quarter amounted to SEK 290.0 million (328.1), which in local currencies is a decrease of 4.6 per cent.
  • The operating profi t for the second quarter increased to SEK 2.4 million (–14.4).
  • Improved market situation and infl ow of orders in the United Kingdom.
  • Cash fl ow from operating activities after investments was SEK 9.2 million (30.9).
April–June
2011
April–June
2010
January–
June 2011
January–
June 2010
Full year
2010
Sales, SEK million 290.0 328.1 587.2 673.9 1,344.1
Operating profi t, SEK million 2.4 –14.4 11.1 8.8 33.4
Profi t after tax, SEK million –1.1 –16.8 –0.2 –4.1 4.0
Cash fl ow from operating activities, SEK million 23.1 39.7 62.7 68.4 107.5
Cash fl ow after investments, SEK million 9.2 30.9 34.1 54.1 81.9
Profi t per share after tax, SEK –0.14 –2.05 –0.03 –0.50 0.49
Net debt, SEK million 162.1 268.5 162.1 268.5 208.5
Equity per share, SEK 62.06 65.56 62.06 65.56 63.37
Equity/assets ratio, % 37.7 36.1 37.7 36.1 36.5

Sales

Sales in the second quarter amounted to SEK 290.0 million (328.1). Sales in local currencies increased in the USA and the United Kingdom and were mainly unchanged in Global Services . Sales decreased in Sweden and Germany. The decrease in Swedenwas an effect of the product mix and in Germany mainly an effect of lower capacity utilization of the segment's service resources. In local currencies this means that sales decreased by 4.6 per cent. Sales in the fi rst half of the year amounted to SEK 587.2 million (673.9)

Profi t

The production facilities in Sweden had high capacity utilization and a good product mix. In comparison with 2010 the foreign exchange effect was lower. The positive trend in the United Kingdom continued in the second quarter, with improved earnings in comparison with the fi rst quarter and the previousyear. The USA developed positively in comparison with the previous year, with improvements in all operational areas. Global Services reported slightly lower earnings than last year, mainly as an effectof lower new sales of software. Germany reportedlower earnings than the previous year, partly as an effectof eight reactors being idle, but also as an effect of fewer major projects and thus lower volumes in decommissioning.

The operating profi t for the second quarter improved by SEK 16.8 to SEK 2.4 million (–14.4) and was for the period January– June SEK 11.1 million (8.8). Foreign exchangeeffects had an impact of SEK –1.0 million (–7.0) on the Group's operating profi t for the second quarter and of SEK –0.2 million (–0.7) for January–June.

The operating margin adjusted for foreign exchange effects for the second quarter was SEK 1.2 (–2.3) per cent and for January– June 1.9 (1.4) per cent. Net fi nancial income for the second quarter improved to SEK –2.1 million (–3.2) and for the period January–June to SEK –7.3 million (–8.9). After taxes of SEK –1.4 million (0.8) for the second quarter and SEK –4.0 million (–4.0) for January–June the net profi t for the second quarter was SEK –1.1 million (–16.8) and SEK –0.2 million (–4.1) for January– June.

Sweden

Sales in the second quarter amounted to SEK 40.5 million (50.4) and were in January–June SEK 79.3 million (90.0). The decrease in the second quarter relates to the product mix. Operat ing profi t in the second quarter increased to SEK 3.4 million (–1.6) and was in January–June SEK 8.2 million (9.0). The fi gureincludes value changes in foreign exchange contracts of SEK –1.2 million (–4.7) in the second quarter and of SEK –0.2 million (0.9) in January–June. Excluding these effects, the operat ing margin improvedfor January–June to 10.6 per cent (9.0). The increased operating margin in 2011 is explained by effective produc tion and a good product mix.

Capacity utilization was high in both the incineration facility and the metal recycling facility. In June a contract for treatment of another three steam generators for the Ringhals nuclear powerplant was signed, an order worth SEK 50 million. The order book is sound for both the incineration and the metal recycling facilities.

The new construction of a pyrolysis facility is going to plan, which means a planned production start in the fourth quarter of 2011.

The Canadian regulatory authority has granted a license for transportation to Sweden of 16 steam generators from the customer Bruce Power. However, Bruce Power has requested a postponement of the shipment to give them time to carry out an extensive information program. The date of the shipment has not been decided. Despite the delay, high capacity utilization is expected in the second six months of the year.

United Kingdom

Sales in the second quarter increased to SEK 25.4 million (17.0) and were in January–June SEK 48.9 million (43.2). The operating profi t for the second quarter showed an improvement at SEK –0.3 million (–7.8) and the fi gure for January–June was SEK –3.5 million (–11.5).

The positive trend continued with an increased infl ow of orders both for the metal recycling facility, MRF, and the consulting opera tions. The improved order book meant increased output volumes and an improved utilization rate. The order book makes continued good capacity utilization possible and tendering activityis high. The associated company UK Nuclear Waste Management is developing well and contributing to the positive earnings trend.

Germany

Sales in the second quarter amounted to SEK 97.5 million (131.7) and in January–June SEK 182.9 million (233.6). The operat ing profi t in the second quarter was SEK 6.0 million (12.3) and in January–June SEK 8.2 million (17.8). The lower sales and operating profi t are due to fewer major decommissioning projectsand lower activity in service and maintenance becauseeight of the German reactors have been shut down by a government decision. The parliamentary process in Germany is continuing with the aim of passing nuclear power phase-out legislation. However, there is great uncertainty about how it will be done. It would be reasonable to assume that the market for service and maintenance will decline permanently. Measures to deal with that will be taken in the second half of the year. Service and maintenance will be carried out on power plants in operation in accordance with earlier plans during the third quarter and part of the fourth quarter. The operating margin was 4.5 per cent (7.6) for January–June.

USA

Sales in the second quarter increased to SEK 51.9 million (48.3) and were in January–June SEK 112.3 million (135.8). The operating profi t for the second quarter improved to SEK –1.9 million (–15.1) and was for January–June SEK 1.1 million (–9.8). The operat ing margin was 1 per cent for January–June.

Capacityutilization and earnings improved in both the segment's produc tion facilities compared with the previous year. The consulting operations also reported improved earnings. Budget cuts in the US Department of Energyhave been notifi ed, which will have a negative effect on the profi t share from TTT in the second half of the year.

Forward planning in the market continues to be short-term.

Global Services

Sales in the second quarter amounted to SEK 67.5 million (68.1) and in January–June to SEK 149.2 million (146.0). Operat ing profi tfor the second quarter amounted to SEK 3.2 million (4.2) and for January–June to SEK 14.4 million (16.2). The fi gure includesvalue changes in foreign exchange contracts of SEK –0.5 million (–1.4) in the second quarter and of SEK 0.0 million(–1.3) in January–June. The operating margin for January– June, exclud ing these effects, was 9.7 per cent (12.0).

Materials testing and consulting services continued to develop well and the order book is sound. Sales were somewhat lower for the software operations in the second quarter compared with the previous year. This is partly an effect of the natural disaster in Japan.

Investments

The Group's investments in the second quarter amounted to SEK 13.9 million (8.8) and in the fi rst half year SEK 28.6 million (14.3).

Cash fl ow

Cash fl ow from operating activities before working capital changes in the second quarter was SEK 4.9 million (5.4) and SEK 16.6 million (33.1) for January–June. Working capital decreasedin the second quarter by SEK 18.2 million (34.3) and decreased in January–June by SEK 46.1 million (35.3).

Cash fl ow from operating activities after investments in the second quarter was SEK 9.2 million (30.9) and SEK 34.1 million (54.1) for January–June.

Financial position and liquidity

Cash and cash equivalents, including current investments, amounted to SEK 58.5 million (69.1).

Equity amounted to SEK 510.3 million (538.8) and the equity/ assets ratio was 37.7 per cent (36.1).

The interest-bearing liabilities have been reduced considerably by repayment and were SEK 220.6 million (332.6). The Group's total borrowing was conducted entirely in foreign currencies through investments and business acquisitions in the USA, Germanyand the UK.

Personnel

The average number of employees was 1,150 (1,204).

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 second quarter amounted to SEK 2.8 million (2.7) and in the fi rst half year SEK 5.4 million (5.3). The operating loss for the second quarter amounted to SEK –6.4 million (–6.3) and for the fi rst half year to SEK –14.2 million (–12.9). The profi t after fi nancial items in the second quarter amounted to SEK 12.6 million (–2.8) and for the fi rst half year SEK 6.2 million (–9.1).

Cash and cash equivalents amounted to SEK 27.3 million (44.9) and interest-bearing liabilities to SEK 87.8 million (174.0).

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, 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 indirectly alter 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 uphold contracts 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 produc tion 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 several of the countries where Studsvik operates. The impact on the market of the natural disaster in Japan may in the short term lead to increased demand for qualifi ed consulting services in special niches. At the same time, some orders will be postponed or cancelled. This assessment applies mainly to Germany and Japan. Decommissioning of nuclear facilitiesis continuing and is expected to continue by and large at an unchanged rate.

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 annualaccounts for the fi nancial year ended December 31, 2010. This interim report 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, Accounting for legal entities.

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 20, 2011

Lars Engström Alf Lindfors Per Ludvigsson Board Member Board Member Board Member

Anders Ullberg Anna Karinen Jan Barchan

Agneta Nestenborg Maria Lindberg Roger Lundström Board Member Board Member Board Member Employee Representative Employee Representative

Magnus Groth President

Chairman Vice Chairman Board Member

Review report

We have reviewed this report for the period January 1, 2011, to June 30, 2011 for Studsvik AB (publ). The board of directors and the CEO are responsible for the preparation and presentation of this interim report in accordance with IAS 34 and the Swedish Annual Accounts Act. Our responsibility is to express a conclusion on this interim report based on our review.

We conducted our review in accordance with the Swedish Standard on Review Engagements SÖG 2410, Review of InterimReport Performed by the Independent Auditor of the Entity. A review consists of making inquiries, primarily of personsresponsible for fi nancial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing, ISA, and other generally accepted auditing standards in Sweden. The procedures performed in a review do not enable us to obtain assurance that we would become aware of all signifi cant matters that might be identifi ed in an audit. Accordingly, we do not express an audit opinion.

Based on our review, nothing has come to our attention that causes us to believe that the interim report is not prepared , in all material respects, in accordance with IAS 34 and the Swedish Annual Accounts Act, regarding the Group, and with the Swedish Annual Accounts Act, regarding the Parent Company .

Stockholm, July 20, 2011

PricewaterhouseCoopers AB

Lennart Danielsson Authorized Public Accountant Auditor in charge

Time schedule for fi nancial information

Interim Report January–September 2011 October 27, 2011 Year-end Report 2011 February 2012

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 July 20, at 14:30 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 April–June January–June January–June
2011 2010 2011 2010 Full year 2010
Net sales 290.0 328.1 587.2 673.9 1,344.1
Cost of services sold –227.8 –264.3 –460.1 –521.9 –1,027.2
Gross profi t 62.2 63.8 127.1 152.0 316.9
Other operating income 0.1 –4.0 7.6 2.2 3.3
Selling and marketing expenses –12.4 –14.8 –24.0 –28.1 –52.8
Administrative expenses –44.6 –47.2 –88.6 –93.7 –186.6
Research and development costs –6.4 –11.8 –13.1 –24.6 –40.3
Share in non-controlling interest 2.4 0.4 4.7 1.8 7.3
Other operating expenses 1.1 –0.8 –2.6 –0.8 –14.4
Operating profi t 2.4 –14.4 11.1 8.8 33.4
Financial income 3.6 1.9 11.8 4.0 3.8
Financial expenses –5.7 –5.1 –19.1 –12.9 –22.9
Profi t after fi nancial items 0.3 –17.6 3.8 –0.1 14.3
Income tax –1.4 0.8 –4.0 –4.0 –10.3
Profi t for the period –1.1 –16.8 –0.2 –4.1 4.0
Other comprehensive income
Translation differences on foreign subsidiaries 7.6 16.9 –12.7 11.9 –28.3
Cash fl ow hedges 0.2 –4.4 3.2 –13.9 5.3
Income tax on items recognized in other comprehensive income 0.0 1.2 –0.8 3.7 –1.4
Other comprehensive income for the period, net after tax 7.8 13.7 –10.3 1.7 –24.4
Total comprehensive income for the period 6.7 –3.1 –10.5 –2.4 –20.4
Income for the period attributable to
Parent company's shareholders –1.1 –16.8 –0.2 –4.1 4.0
Non-controlling interest - - - - -
Total comprehensive income attributable to
Parent company's shareholders 6.7 –3.1 –10.5 –2.4 –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 –0.14 –2.05 –0.03 –0.50 0.49
After dilution –0.14 –2.05 –0.03 –0.50 0.49

Group statement of fi nancial position

Amounts in SEK million

June 2011 June 2010 December 2010
Assets
Goodwill 304.9 347.5 313.4
Other intangible non-current assets 34.8 44.3 37.3
Property. plant and equipment 471.3 527.2 490.1
Financial non-current assets 171.2 179.4 173.8
Total non-current assets 982.2 1,098.4 1,014.6
Inventories 13.5 19.1 19.5
Trade receivables 213.7 219.7 239.7
Other current receivables 85.1 87.1 84.8
Liquid assets 58.5 69.1 68.4
Total current assets 370.8 395.0 412.4
Total assets 1,353.0 1,493.4 1,427.0
Equity and liabilities
Equity attributable to parent company's shareholders 510.0 538.5 520.5
Non-controlling interest 0.3 0.3 0.3
Borrowings 128.2 232.3 146.0
Provisions 255.6 228.4 259.4
Other non-current liabilities 30.8 17.0 13.6
Total non-current liabilities 414.6 477.7 419.0
Trade payables 63.1 78.1 85.8
Borrowings 92.4 100.3 129.9
Other current liabilities 272.6 298.5 271.5
Total current liabilities 428.1 476.9 487.2
Total equity and liabilities 1,353.0 1,493.4 1,427.0
Pledged assets 174.6 157.9 120.3
Contingent liabilities 135.0 87.0 139.3

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 - - –10.3 –0.2 –10.5 - –10.5
Closing balance at March 31, 2011 8.2 225.3 –11.9 288.4 510.0 0.3 510.3

Statement of cash fl ow

Amounts in SEK million April–June April–June January–June January–June
2011 2010 2011 2010 Full year 2010
Operating activities
Operating profi t 2.4 –14.4 11.1 8.8 33.4
Depreciation 15.3 18.4 31.1 35.4 68.6
Adjustment for non-cash items –2.0 9.1 –3.4 7.3 4.8
15.7 13.1 38.8 51.5 106.8
Financial items. net –3.0 –3.7 –6.5 –7.8 –15.7
Income tax paid –7.8 –4.0 –15.7 –10.6 –12.3
Cash fl ow from operating activities before changes
in working capital 4.9 5.4 16.6 33.1 78.8
Changes in working capital 18.2 34.3 46.1 35.3 28.7
Cash fl ow from operating activities 23.1 39.7 62.7 68.4 107.5
Investing activities
Investments –13.9 –8.8 –28.6 –14.3 –25.6
Other changes from investing activities 0.7 –4.1 1.1 –8.3 –15.9
Cash fl ow from investing activities –13.2 –12.9 –27.5 –22.6 –41.5
Cash fl ow from operating activities after invest
ments and other changes from investing activities 9.9 26.8 35.2 45.8 66.0
Financing activities
Change in borrowings –29.9 –35.5 –46.6 –47.7 –68.7
Dividend to shareholders - - - - -
Cash fl ow from investing activities –29.9 –35.5 –46.6 –47.7 –68.7
Changes in liquid assets –20.0 –8.7 –11.4 –1.9 –2.7
Liquid assets at the beginning of the year 77.2 79.6 68.4 74.7 74.7
Translation difference in liquid assets 1.3 –1.8 1.5 –3.7 –3.6
Liquid assets at the end of the period 58.5 69.1 58.5 69.1 68.4

Financial ratios for the Group

Amounts in SEK million January–June January–June
2011 2010 Full year 2010
Operating profi t
Operating profi t before depreciation 42.3 44.2 102.1
Margins
Operating margin before depreciation, % 7.2 6.6 7.6
Operating margin, % 1.9 1.3 2.5
Profi t margin, % 0.7 neg 1.1
Profi tability
Return on operating capital, % 3.2 2.2 4.3
Return on capital employed, % 6.0 2.9 4.4
Return on equity, % neg neg 0.8
Capital structure
Operating capital 672.3 807.3 729.3
Capital employed 730.9 876.4 797.7
Equity 510.3 538.8 520.8
Interest-bearing net debt 162.1 268.5 208.5
Net debt-equity ratio 0.3 0.5 0.4
Interest cover ratio 1.2 1.0 1.6
Equity/assets ratio, % 37.7 36.1 36.5
Cash fl ow
Self fi nancing ratio 2.0 1.3 2.1
Investments 28.6 14.3 25.6
Employees
Average number of employees 1,150 1,204 1,169
Net sales per employee 1.0 1.1 1.1
Data per share April–June April–June January–June January–June
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 –0.14 –2.05 –0.03 –0.50 0.49
Earnings per share after dilution, SEK –0.14 –2.05 –0.03 –0.50 0.49
Equity per share, SEK 62.06 65.56 62.06 65.56 63.37

Net sales per geographical segment

Amounts in SEK million April–June April–June January–June January–June
2011 2010 2011 2010 Full year 2010
Sweden 56.4 69.0 95.6 140.3 240.8
Europe, excluding Sweden 158.8 185.2 316.8 341.1 724.4
North America 68.1 65.4 160.8 176.4 353.7
Asia 6.7 8.5 14.0 16.1 25.2
Other markets - - - - 0.0
Total 290.0 328.1 587.2 673.9 1,344.1

Quarterly review

Amounts in SEK million 2009 2010 2011
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2
Net sales 277.0 315.8 275.0 348.5 345.8 328.1 295.3 374.9 297.2 290.0
Operating expenses –298.2 –354.9 –282.8 –310.4 –322.6 –313.7 –304.4 –341.2 –288.5 –287.6
Operating profi t –21.2 –39.1 –7.8 38.1 23.2 –14.4 –9.1 33.7 8.7 2.4
Financial items. net –5.4 –6.9 –5.5 –1.9 –5.7 –3.2 –6.6 –3.6 –5.2 –2.1
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

Financial data per segment

Amounts in SEK million United Global Elimina
April–June 2011 Sweden Kingdom Germany USA Services Other tions Group
External sales revenue 39.9 25.4 97.5 51.9 67.3 8.0 - 290.0
Revenue from segment 0.6 - 0.0 - 0.2 2.9 –3.7 0.0
Operating profi t 3.4 –0.3 6.0 –1.9 3.2 –8.0 - 2.4
Assets 150.8 187.1 242.7 542.7 167.0 245.5 –182.8 1,353.0
Liabilities 144.4 83.4 183.8 348.4 101.9 163.6 –182.8 842.7
Investments 7.8 0.9 0.1 0.0 4.7 0.4 - 13.9
Depreciation/amortization 2.9 1.2 0.7 7.9 1.5 1.1 - 15.3
Average number of employees 91 72 662 108 163 76 - 1,172
United Global Elimina
April–June 2010 Sweden Kingdom Germany USA Services Other tions Group
External sales revenue 50.3 17.0 131.4 48.3 68.0 13.1 - 328.1
Revenue from segment 0.1 - 0.3 - 0.1 2.0 –2.5 0.0
Operating profi t –1.6 –7.8 12.3 –15.1 4.2 –6.2 - –14.4
Assets 130.4 198.2 283.2 639.7 157.3 385.7 –301.1 1,493.4
Liabilities 122.5 176.2 197.8 404.1 105.2 249.9 –301.1 954.6
Investments 3.3 0.4 0.2 1.1 3.7 0.1 - 8.8
Depreciation/amortization 2.8 1.5 1.8 9.5 1.5 1.3 - 18.4
Average number of employees 93 67 704 104 153 93 - 1,214
United Global Elimina
January–June 2011 Sweden Kingdom Germany USA Services Other tions Group
External sales revenue 76.4 48.9 182.6 112.3 148.9 18.1 - 587.2
Revenue from segment 2.9 - 0.3 - 0.3 5.8 –9.3 0.0
Operating profi t 8.2 –3.5 8.2 1.1 14.4 –17.3 - 11.1
Assets 150.8 187.1 242.7 542.7 167.0 245.5 –182.8 1,353.0
Liabilities 144.4 83.4 183.8 348.4 101.9 163.6 –182.8 842.7
Investments 14.1 1.0 0.3 0.2 12.0 1.0 - 28.6
Depreciation/amortization 5.8 2.6 1.5 16.1 2.8 2.3 - 31.1
Average number of employees 91 68 645 108 162 76 - 1,150
United Global Elimina
January–June 2010 Sweden Kingdom Germany USA Services Other tions Group
External sales revenue 89.0 43.2 232.9 135.8 145.8 27.2 - 673.9
Revenue from segment 1.0 - 0.7 - 0.2 4.0 –5.9 0.0
Operating profi t 9.0 –11.5 17.8 –9.8 16.2 –12.9 - 8.8
Assets 130.4 198.2 283.2 639.7 157.3 385.7 –301.1 1,493.4
Liabilities 122.5 176.2 197.8 404.1 105.2 249.9 –301.1 954.6
Investments 4.9 0.7 0.6 2.7 4.7 0.7 - 14.3
Depreciation/amortization 5.4 3.1 2.8 18.5 2.9 2.7 - 35.4
Average number of employees 92 68 701 100 151 92 - 1,204
United Global Elimina
Full year 2010 Sweden Kingdom Germany USA Services Other 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 April–June April–June January–June January–June
2011 2010 2011 2010 Full year 2010
Net sales 2.8 2.7 5.4 5.3 10.5
Cost of services sold –0.9 –0.7 –1.4 –1.5 –3.1
Gross profi t 1.9 2.0 4.0 3.8 7.4
Other operating costs –8.3 –8.3 –18.2 –16.7 –33.0
Operating profi t –6.4 –6.3 –14.2 –12.9 –25.6
Dividends from subsidiaries 17.9 3.0 17.9 3.0 21.4
Financial net 1.1 –0.5 2.5 0.8 1.7
Profi t before tax 12.6 –2.8 6.2 –9.1 –2.5
Income tax 1.6 1.9 3.2 3.5 6.8
Profi t for the period 14.2 –0.9 9.4 –5.6 4.3

Parent company balance sheet

Amounts in SEK million

June 2011 June 2010 December 2010
Assets
Property plant and equipment 0.1 0.2 0.1
Financial non-current assets 1,088.3 1,108.1 1,104.2
Total non-current assets 1,088.4 1,108.3 1,104.3
Current assets 7.5 4.2 38.1
Liquid assets 27.3 44.9 43.2
Total current assets 34.8 49.1 81.3
Total assets 1,123.2 1,157.4 1,185.6
Equity and liabilities
Equity 892.7 851.2 883.2
Non-current liabilities 72.6 153.0 89.8
Current liabilities 157.9 153.2 212.6
Total liabilities 230.5 306.2 302.4
Total equity and liabilities 1,123.2 1,157.4 1,185.6

Major shareholders, June 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 153,716 1.9
Avanza Pensionsförsäkring AB 152,744 1.9
HSBC Trinkahaus and Burkhardt AG 136,530 1.7
Blue Whale Ltd 131,246 1.6
Total ten largest shareholders – holdings 5,080,726 61.8
Other shareholders 3,137,885 38.2
Total 8,218,611 100.0

The Studsvik share

In the second quarter the share price varied between a high of SEK 73 on April 4 and a low of SEK 42.80 on June 20. The opening price was SEK 73 at the beginning of the year and the closing price on June 30 was SEK 48.40. In the second quarter 0.966 million shares were traded and during the the fi rst half of the year 1.881 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: Studsvik

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