Studsvik — Interim / Quarterly Report 2012

Oct 26, 2012

Interim Report January–September 2012

• • Sales for the third quarter amounted to SEK 261.7 million (252.8), which means a decrease of 2.7 per cent in local currencies.
• • The operating result for the third quarter amounted to SEK –27.9 million (–10.1).
• • The operating result was reduced by non-recurring items in the USA of SEK –18.3 million.
• • Cash flow after investments for the third quarter amounted to SEK –123.2 million (16.0) and was reduced by payments totaling SEK 93.8 million for final disposal of waste in the USA.
• • Studsvik's President Anders Jackson will leave the company at a date to be decided later.

	July– September	July– September	January– September	January– September	Full year
	2012	2011	2012	2011	2011
Sales, SEK million	261.7	252.8	914.7	840.0	1,200.7
Operating profit, SEK million	–27.9	–10.1	–40.6	1.0	53.6
Profit after tax, SEK million	–27.9	–14.8	–60.3	–15.0	22.7
Cash flow from operating activities, SEK million	–112.7	27.2	–44.1	89.9	151.1
Cash flow after investments, SEK million	–123.2	16.0	–80.3	50.1	95.7
Profit per share after tax, SEK	–3.39	–1.80	–7.33	–1.82	2.77
Net debt, SEK million	141.7	157.3	141.7	157.3	95.6
Equity per share, SEK	56.66	62.30	56.66	62.30	66.77
Equity/assets ratio, %	35.7	37.2	35.7	37.2	37.7

Sales

Sales in the third quarter amounted to SEK 261.7 million (252.8), a decrease of 2.7 per cent in local currencies. Sales in local currencies increased in the UK and Global Services, while they decreased in Sweden, USA and Germany. Sales in January–September amounted to SEK 914.7 million (840.0).

Profit

The operating result for the third quarter was SEK –27.9 million (–10.1) and for January–September SEK –40.6 million (1.0). The result was decreased by items affecting comparability/non-recurring items in the USA, which amounted to SEK –18.3 million (0) for the quarter and SEK –26.7 million (0) for January–September. The operating result increased in the United Kingdom, but deteriorated in other segments.

The operating margin, adjusted for non-recurring items, amounted to –3.5 (–4.0) per cent for the third quarter and for January– September to –1.5 (0.1) per cent. Net financial income for the third quarter amounted to SEK –3.7 million (–3.2) and for January– September to SEK –9.9 million (–10.5).

Taxes were SEK 3.7 million (–1.5) for the third quarter and SEK –9.8 million (–5.5) for January–September. The profit after tax for the third quarter was SEK –27.9 million (–14.8) and SEK –60.3 million (–15.0) for January–September.

Sweden

Sales in the third quarter amounted to SEK 32.7 million (27.5) and in January–September to SEK 125.4 million (106.8). The operating profit in the third quarter amounted to SEK –6.3 million (–4.1) and in January–September to SEK 3.6 million (4.1). The operating margin for January–September amounted to 2.9 (3.8) per cent.

Capacity utilization in the incineration facility continued to be high, which explains the increase in sales in the segment, and profitability was good. Capacity utilization in the melting plant was low, due to delayed customer deliveries. The production line for large components was well-utilized, but considerable additional costs arose when treating a steam generator. The additional costs were due to special production and protective measures that had to be taken due to higher radiation (dose rate) than expected. The steam generator is the first in a series of three to be treated. The other two will be processed in early 2013. By delaying production the radioactivity declines naturally and processing can take place without special protective measures. At the close of the quarter the processing of two out of five heat exchangers from the United Kingdom had by and large been completed.

The order book is sound, allowing high capacity utilization in the fourth quarter.

United Kingdom

Sales in the third quarter increased to SEK 46.7 million (27.5) and in January–September to SEK 167.3 million (76.4). The operating profit for the third quarter increased to SEK 0.0 million (–3.4) and for January–September to SEK 7.1 million (–6.9). The operating margin for January–September was 4.2 (–9.0) per cent.

Production continued to be high in the metal recycling facility, MRF, and was 250 (137) tonnes in the third quarter. The consulting operations were well utilized.

The order book is sound for both the MRF and the consulting operations, which provides scope for a continued high level of capacity utilization in the fourth quarter.

Germany

Sales in the third quarter amounted to SEK 80.8 million (94.9) and in January–September to SEK 250.8 million (277.8). The operating result for the third quarter amounted to SEK 2.0 million (8.2) and for January–September to SEK –1.8 million (16.4). The operating margin was –0.7 (5.9) per cent for January–September. Operations in Germany reported a profit, while operations in France reported a loss. The operating result in France in the third quarter was SEK –0.8 million (–0.2) and SEK –5.5 million (–3.4) for the period January– September.

In the third quarter service and maintenance work was in progress at a number of the German power plants that continue to operate and capacity utilization was high. There continues to be an imbalance between demand and available resources in the German market and pricing is still under pressure in some sectors. The organization is gradually adapting to the new market situation. The adaptation is expected to continue for the rest of the year.

The decommissioning projects in Germany and Belgium that have been in progress for a long period of time are continuing as planned and resources are well-utilized. Engineering operations continued to have a good level of capacity utilization. The French operations have an unsatisfactory sales volume, and measrues are therefore being taken to adapt the organization.

When the reactors that have been shut down in Germany have to be decommissioned the market will expand considerably. With the aim of positioning Studsvik for the assignments expected to come, cooperation with Westinghouse Electric was started in the third quarter. The parties intend to offer turnkey solutions for decommissioning of nuclear power plants under the trademark "ndcon".

USA

Sales in the third quarter amounted to SEK 44.8 million (43.1) and in January–September to SEK 175.0 million (155.4). The operating loss for the third quarter amounted to SEK –23.3 million (–11.2) and to SEK –50.6 million (–10.1) for January–September. The result was decreased by items affecting comparability/non-recurring items, described below, which amounted to SEK –18.3 million for the quarter and for January–September to SEK –26.7 million. The operating margin, adjusted for this, was –13.6 (–6.5) per cent for January-September.

In August Waste Control Specialists (WCS) became licensed to accept low and intermediate level waste from the whole of the USA for final disposal at its facility in Texas. This enabled Studsvik and WCS to sign an agreement on final disposal and transfer of ownership and liability for all radioactive material that Studsvik has stored temporarily with WCS. The transaction and agreement with WCS have eliminated considerable risk and uncertainty related to Erwin.

During the licensing process the state of Texas introduced a fee on material held for final disposal at WCS. The fee is 30 per cent of the price of disposal. Provision for the fee was made in the first and second quarters of 2012 for material treated in the respective quarter. The commercial terms and conditions for final disposal of Studsvik's waste were negotiated with WCS at the beginning of the third quarter. In the agreement entered into Studsvik was obliged to accept, contrary to earlier assessments, that the state fee would also be imposed on material deposited with WCS as early as the beginning of 2012, i.e. waste treated by Studsvik in previous years. Studsvik's agreement with the end customer did not allow for Studsvik to pass on the state fee. The agreements have been renegotiated to allow a fee to be passed on to the final customer for material treated at Erwin from September 2012. The fees up to and including the third quarter that were not possible to pass on to end customers have been treated as items affecting comparability. They amount to SEK 23.7 million for the period January–September. The new business model that was established as part of Studsvik's joint venture with EnergySolutions is being phased in at Erwin. The new business model means that in the long term Erwin will have more evenly distributed capacity utilization, increased output and profitability, but lower margins during the establishment process. Agreements have been signed with a number of power plants, negotiations are in progress with several, but the process is timeconsuming. As a direct consequence the production volume in the third quarter was lower than in the previous year.

Sales in Memphis were lower than the previous year and profitability deteriorated.

Consulting operations, which mainly target customers outside the USA with technology and license sales based on THOR technology, continued to have low capacity utilization in the third quarter. Negotiations are in progress for larger contracts in Europe, but as yet these have not been concluded.

In September changes were made in the management organization in the USA. The cost of this, SEK 3.0 million, is charged to the profit for the period and has been treated as an item affecting comparability.

The order book is short-term in all operational areas. However, planned incoming deliveries will give potentially better capacity utilization in the fourth quarter at the Erwin and Memphis facilities.

Global Services

Sales in the third quarter increased to SEK 62.3 million (54.2) and amounted in January–September to SEK 210.4 million (203.4). The operating profit for the third quarter amounted to SEK 5.7 million (6.5) and for January–September to SEK 17.9 million (20.9). The operating margin for January–September was 8.5 (10.3) per cent.

The positive trend in the software operations continued. Sales and earnings increased compared with the previous year. During the quarter a major software delivery was completed to a reactor fuel manufacturer in Russia. The materials technology operations are gradually recovering after the major planned review of the Hot Cell laboratory, which was carried out in the first quarter. However, sales and earnings were lower than in the previous year. Consulting operations developed positively, with good capacity utilization and profitability.

The segment's order book is sound, which will make high capacity utilization in the fourth quarter.

Investments

The Group's investments in the third quarter amounted to SEK 10.5 million (11.2) and to SEK 36.2 million (39.8) in January–September.

Cash flow

Cash flow from operating activities before working capital changes in the third quarter amounted to SEK –117.9 million (14.8) and SEK –105.4 million (31.4) for January–September. Working capital decreased in the third quarter by SEK 5.2 million (12.4) and in January–September by SEK 61.3 million (58.5).

Cash flow from operating activities after investments in the third quarter was SEK –123.2 million (16.0) and SEK –80.3 million (50.1) in January–September. The major outflow during the quarter is mainly explained by the payment to WCS for final disposal of waste, SEK 93.8 million, including fee to the state of Texas. The transaction was financed with SEK 54.3 million of deposited funds, accounted for under investing activities, which is why the net impact on cash and cash equivalents was SEK –39.5 million.

Financial position and liquidity

Cash and cash equivalents, including current investments, amounted to SEK 99.2 million (72.7). Equity amounted to SEK 466.0 million (512.3) and the equity/assets ratio was 35.7 (37.2) per cent.

During the period a three-year loan of SEK 60 million, payable in full on maturity, was raised from Swedbank. In the period January– September amortization amounted to SEK 30 million and interestbearing liabilities at the close of the quarter were SEK 240.8 million (229.9).

The interest bearing net debt was SEK 141.7 million, an increase from the turn of the year by SEK 46.1 million, but compared with the third quarter in the previous year a decrease of SEK 15.6 million.

Effects of the changed corporate tax rate in Sweden

The Swedish Government has stated that it intends to propose to the Riksdag that the corporate tax rate in Sweden be reduced to 22 per cent in 2013. Based on book values at the close of the third quarter, a reduction in the tax rate is expected to have a marginal effect on the Group.

Personnel

The average number of employees was 1,107 (1,137). The decrease mainly refers to Germany.

Transactions with related parties

During the quarter Studsvik received a dividend of SEK 4.0 million from UK Nuclear Waste Management Ltd.

Parent company

Parent company operations comprise the co-ordination of tasks for the Group and assets mainly consist of shares in subsidiaries. Parent company sales in the third quarter amounted to SEK 3.3 million (2.7) and during January–September to SEK 9.3 million (8.1). The operating loss for the third quarter amounted to SEK –6.2 million (–4.7) and for January–September to SEK –18.9 million (–18.9). The profit after financial items in the third quarter amounted to SEK –6.5 million (–5.2) and for January–September to SEK –17.8 million (1.0). Cash and cash equivalents amounted to SEK 64.6 million (21.7) and interest-bearing liabilities to SEK 131.9 million (94.0).

Significant events after the balance sheet date

On October 11 it was announced that the President Anders Jackson will leave Studsvik at a time to be decided later. The decision was made in consultation with the Board of Directors of Studsvik. Mr Jackson will remain in his position until a successor has been appointed.

Risks and uncertainties

Studsvik operates in an international, competitive market and is thereby exposed to both business and financial 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 final 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 final 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 financial risks and uncertainties mainly include fluctuations in exchange rates and interest rates, and the company's ability to uphold contracts for withdrawable lines of credit.

An overall analysis of the Group's risks and how they are dealt with is given in the Annual Report, which is available on the company's website. Apart from these risks, no further significant risks are considered 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 several of the countries where Studsvik operates. In Germany a decision has been made to phase out nuclear power by 2022, which has reduced demand for service and maintenance. The German facilities taken out of operation in 2011 will be subject to decommissioning. When this process will start is as yet not clear. Decommissioning of nuclear facilities in other markets is expected to expand in the long term.

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 accounts for the financial year ended December 31, 2011. 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.

Stockholm, October 26, 2012

Anders Jackson President

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

Time schedule for financial information

Year-end Report January–December 2012	February 14, 2013
Interim Report January–March 2013	April 22, 2013
Interim Report January–June 2013	July 19, 2013
Interim Report January–September 2013	October 23, 2013

Annual General Meeting 2013

The Annual General Meeting will be held on Monday, April 22, 2013.

For further information please contact

Anders Jackson, President and Chief Executive Officer, +46 155 22 10 82 or Jerry Ericsson, Chief Financial Officer, +46 155 22 10 32.

The interim report will be presented at a conference call to be held in English on October 26, at 14:00 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 2012	July– September 2011	January– September 2012	January– September 2011	Full year 2011
Net sales	261.7	252.8	914.7	840.0	1,200.7
Cost of services sold	–230.6	–210.8	–767.3	–670.9	–924.8
Gross profit	31.1	42.0	147.4	169.1	275.9
Other operating income	1.2	2.6	4.6	10.2	21.8
Selling and marketing expenses	–11.3	–10.2	–37.5	–34.2	–46.6
Administrative expenses	–41.1	–39.4	–136.0	–128.0	–171.9
Research and development costs	–6.2	–5.6	–18.6	–18.7	–28.4
Share in non-controlling interest	1.2	1.5	3.8	6.2	7.6
Other operating expenses	–2.8	–1.0	–4.3	–3.6	–4.8
Operating profit	–27.9	–10.1	–40.6	1.0	53.6
Financial income	3.0	4.0	5.3	15.8	15.1
Financial expenses	–6.7	–7.2	–15.2	–26.3	–28.0
Profit after financial items	–31.6	–13.3	–50.5	–9.5	40.7
Income tax	3.7	–1.5	–9.8	–5.5	–18.0
Profit for the period	–27.9	–14.8	–60.3	–15.0	22.7
Other comprehensive income
Translation differences on foreign subsidiaries	–18.4	18.8	–16.8	6.1	6.6
Cash flow hedges	3.6	–2.6	3.4	0.6	–1.8
Income tax on items recognized in other comprehensive income	–0.9	0.6	–0.9	–0.2	0.5
Other comprehensive income for the period, net after tax	–15.7	16.8	–14.3	6.5	5.3
Total comprehensive income for the period	–43.6	2.0	–74.6	–8.5	28.0
Income for the period attributable to
Parent company's shareholders	–27.9	–14.8	–60.3	–15.0	22.7
Non-controlling interest	–	–	–	–	–
Total comprehensive income attributable to
Parent company's shareholders	–43.6	2.0	–74.6	–8.5	28.0
Non-controlling interest	0.0	0.0	0.0	0.0	0.0
Earnings per share calculated on income attributable to the parent company's shareholders during the period, SEK
Before dilution	–3.39	–1.80	–7.33	–1.82	2.77
After dilution	–3.39	–1.80	–7.33	–1.82	2.77

Group statement of financial position

Amounts in SEK million	September	September	December
	2012	2011	2011
Assets
Goodwill	299.2	318.1	315.9
Other intangible non-current assets	29.7	35.9	34.8
Property. plant and equipment	465.6	484.2	481.1
Financial non-current assets	122.0	182.9	169.2
Total non-current assets	916.5	1,021.1	1,001.0
Inventories	19.6	11.7	14.8
Trade receivables	148.6	167.9	223.0
Other current receivables	121.7	104.8	95.1
Liquid assets	99.2	72.7	122.1
Total current assets	389.1	357.1	455.0
Total assets	1,305.6	1,378.2	1,456.0
Equity and liabilities
Equity attributable to parent company's shareholders	465.7	512.0	548.5
Non-controlling interest	0.3	0.3	0.3
Borrowings	125.1	112.8	92.1
Provisions	221.8	267.8	283.1
Other non-current liabilities	40.3	40.1	39.1
Total non-current liabilities	387.2	420.7	414.3
Trade payables	69.1	65.1	84.2
Borrowings	115.7	117.1	125.5
Other current liabilities	267.6	263.0	283.2
Total current liabilities	452.4	445.2	492.9
Total equity and liabilities	1,305.6	1,378.2	1,456.0
Pledged assets	142.6	180.9	174.4
Contingent liabilities	96.3	143.2	154.0

Changes in equity

Amounts in SEK million					Equity
					attributable
		Other			to the parent	Non
	Share	contributed		Retained	company's	controlling
	capital	capital	Reserves	earnings	shareholders	interest	Total equity
Equity at December 31, 2010	8.2	225.3	–1.6	288.6	520.5	0.3	520.8
Changes January 1 – September 30, 2011
Comprehensive income for the period	–	–	6.5	–15.0	–8.5	–	–8.5
Equity at September 30, 2011	8.2	225.3	4.9	273.6	512.0	0.3	512.3
Changes October 1 – December 31, 2011
Comprehensive income for the period	–	–	–1.2	37.7	36.5	–	36.5
Equity at December 31, 2011	8.2	225.3	3.7	311.3	548.5	0.3	548.8
Changes January 1 – September 30, 2012
Dividend	–	–	–	–8.2	–8.2	–	–8.2
Comprehensive income for the period	–	–	–14.3	–60.3	–74.6	–	–74.6
Equity at September 30, 2012	8.2	225.3	–10.6	242.8	465.7	0.3	466.0

Statement of cash flow

Amounts in SEK million	July– September 2012	July– September 2011	January– September 2012	January– September 2011	Full year 2011
Operating activities
Operating profit	–27.9	–10.1	–40.6	1.0	53.6
Depreciation	16.0	15.6	47.7	46.7	62.3
Adjustment for non-cash items etc	–99.9	14.7	–78.4	11.3	21.9
	–111.8	20.2	–71.3	59.0	137.8
Financial items. net	–3.4	–2.5	–10.3	–9.0	–13.0
Income tax paid	–2.7	–2.9	–23.8	–18.6	–12.0
Cash flow from operating activities before changes in
working capital	–117.9	14.8	–105.4	31.4	112.8
Changes in working capital	5.2	12.4	61.3	58.5	38.3
Cash flow from operating activities	–112.7	27.2	–44.1	89.9	151.1
Investing activities
Investments	–10.5	–11.2	–36.2	–39.8	–55.4
Other changes from investing activities	60.0	–0.4	36.4	0.7	17.8
Cash flow from investing activities	49.5	–11.6	0.2	–39.1	–37.6
Cash flow from operating activities after investments and other changes from investing activities	–63.2	15.6	–43.9	50.8	113.5
Financing activities
Change in borrowings	60.5	–1.0	33.4	–47.6	–59.3
Dividend to shareholders	–	–	–8.2	–	–
Cash flow from investing activities	60.5	–1.0	25.2	–47.6	–59.3
Changes in liquid assets	–2.7	14.6	–18.7	3.2	54.2
Liquid assets at the beginning of the year	105.4	58.5	122.1	68.4	68.4
Translation difference in liquid assets	–3.5	–0.4	–4.2	1.1	–0.5
Liquid assets at the end of the period	99.2	72.7	99.2	72.7	122.1
Cash flow specification
Adjustment for non-cash items etc
Utilization of provisioins for waste in the USA	–93.8	–	–93.8	–	–
Other changes in provisions	–4.9	16.5	18.9	–18.1	30.0
Share in earnings from associated companies	–1.2	–1.5	–3.8	–6.2	–7.6
Other	0.0	–0.3	0.3	–0.6	–0.5
Total	–99.9	14.7	–78.4	11.3	21.9
Other changes from investing activities
Investment in associated companies	–	–0.1	–3.3	–0.4	–0.4
Dividend from associated companies	4.0	0.4	4.0	4.5	20.0
Utilization of deposited funds	54.3	–	54.3	–	–
Deposit of funds	0.0	–0.3	–19.1	–4.6	–7.0
Sale of non-current assets	0.1	–0.5	0.0	0.2	5.7
Other	1.6	0.1	0.5	1.0	–0.5
Total	60.0	–0.4	36.4	0.7	17.8
Change in borrowings
Loans raised	63.7	3.6	63.4	4.4	6.2
Repayments of loans	–3.2	–4.6	–30.0	–52.0	–65.5
Total	60.5	–1.0	33.4	–47.6	–59.3

Financial ratios for the Group

Amounts in SEK million
------------------------	--	--	--

Amounts in SEK million	January–	January–
	September	September
	2012	2011	Full year 2011
Operating profit
Operating profit before depreciation	7.2	47.7	115.9
Margins
Operating margin before depreciation, %	0.8	5.7	9.7
Operating margin, %	neg	0.1	4.5
Profit margin, %	neg	neg	3.4
Profitability
Return on operating capital, %	neg	0.2	8.2
Return on capital employed, %	neg	2.9	9.1
Return on equity, %	neg	neg	4.3
Capital structure
Operating capital	607.7	669.6	645.4
Capital employed	706.8	742.3	767.5
Equity	466.0	512.3	548.8
Interest-bearing net debt	141.7	157.3	95.6
Net debt-equity ratio	0.3	0.3	0.2
Interest cover ratio	neg	0.6	2.5
Equity/assets ratio, %	35.7	37.2	37.7
Cash flow
Self financing ratio	neg	2.1	2.6
Investments	36.2	39.8	55.4
Employees
Average number of employees	1,107	1,137	1,153
Net sales per employee	1.1	1.0	1.0

Data per share	July–	July–	January–	January–
	September	September	September	September
	2012	2011	2012	2011	Full year 2011
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	–3.39	–1.80	–7.33	–1.82	2.77
Earnings per share after dilution, SEK	–3.39	–1.80	–7.33	–1.82	2.77
Equity per share, SEK	56.66	62.30	56.66	62.30	66.77

Net sales per geographical segment

Amounts in SEK million	July–	July–	January–	January–
	September	September	September	September
	2012	2011	2012	2011	Full year 2011
Sweden	39.6	41.6	116.2	137.2	199.9
Europe, excluding Sweden	162.9	150.8	541.7	467.6	652.5
North America	57.9	57.2	223.3	218.0	321.2
Asia	1.3	3.2	33.5	17.2	27.1
Total	261.7	252.8	914.7	840.0	1,200.7

Quarterly review

Amounts in SEK million	2010				2011				2012
	Q1	Q2	Q3	Q4	Q1	Q2	Q3	Q4	Q1	Q2	Q3
ales	345.8	328.1	295.3	374.9	297.2	290.0	252.8	360.7	322.7	330.3	261.7
Operating expenses	–322.6	–313.7	–304.4	–341.2	–288.5	–287.6	–262.9	–308.1	–332.4	–333.3	–289.6
Operating profit	23.2	–14.4	–9.1	33.7	8.7	2.4	–10.1	52.6	–9.7	–3.0	–27.9
Financial items. net	–5.7	–3.2	–6.6	–3.6	–5.2	–2.1	–3.2	–2.4	–3.0	–3.2	–3.7
Profit after financial items	17.5	–17.6	–15.7	30.1	3.5	0.3	–13.3	50.2	–12.7	–6.2	–31.6

Financial data per segment

Amounts in SEK million		United			Global		Elimina
July–September 2012	Sweden	Kingdom	Germany	USA	Services	Other	tions	Group
External sales revenue	20.6	46.7	80.6	44.8	62.3	6.7	–	261.7
Revenue from segment	12.1	–	0.2	–	0.0	3.5	–15.8	0.0
Operating profit	–6.3	0.0	2.0	–23.3	5.7	–6.0	–	–27.9
Assets	126.6	212.5	210.1	445.9	185.4	325.7	–200.6	1,305.6
Liabilities	153.9	109.4	158.8	291.0	101.3	225.8	–200.6	839.6
Investments	3.5	0.3	0.9	0.1	1.0	4.7	–	10.5
Depreciation/amortization	2.1	1.3	0.8	8.1	1.8	1.9	–	16.0
Average number of employees	99	80	587	102	159	77	–	1,104
		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 profit	–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
		United			Global		Elimina
January–September 2012	Sweden	Kingdom	Germany	USA	Services	Other	tions	Group
External sales revenue	88.4	167.3	249.9	175.0	210.3	23.8	–	914.7
Revenue from segment	37.0	–	0.9	–	0.1	9.8	–47.8	0.0
Operating profit	3.6	7.1	–1.8	–50.6	17.9	–16.8	–	–40.6
Assets	126.6	212.5	210.1	445.9	185.4	325.7	–200.6	1,305.6
Liabilities	153.9	109.4	158.8	291.0	101.3	225.8	–200.6	839.6
Investments	16.0	1.1	3.4	1.1	7.9	6.7	–	36.2
Depreciation/amortization	6.1	4.0	2.2	25.0	5.0	5.4	–	47.7
Average number of employees	96	80	591	106	160	74	–	1,107
		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 profit	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
Full year 2011	Sweden	Kingdom	Germany	USA	Services	Other	tions	Group
External sales revenue	163.8	107.8	363.5	242.6	287.5	35.5	–	1,200.7
Revenue from segment	3.5	–	1.8	–	0.4	11.5	–17.2	0.0
Operating profit	19.8	–9.7	18.4	22.6	33.7	–31.2	–	53.6
Assets	172.8	207.0	227.9	606.7	195.7	299.8	–253.9	1,456.0
Liabilities	171.2	106.2	166.1	383.9	131.7	202.0	–253.9	907.2
Investments	26.1	1.6	1.3	7.4	17.5	1.5	–	55.4
Depreciation/amortization	11.2	5.0	2.9	32.7	5.9	4.6	–	62.3

Average number of employees 92 71 646 109 161 74 – 1,153

Parent company income statement

Amounts in SEK million	July–	July–	January–	January–
	September	September	September	September
	2012	2011	2012	2011	Full year 2011
Net sales	3.3	2.7	9.3	8.1	10.9
Cost of services sold	–0.7	–1.0	–2.2	–2.4	–5.0
Gross profit	2.6	1.7	7.1	5.7	5.9
Other operating costs	–8.8	–6.4	–26.0	–24.6	–31.1
Operating profit	–6.2	–4.7	–18.9	–18.9	–25.2
Dividends from subsidiaries	–	0.0	–	17.9	–12.1
Financial net	–0.3	–0.5	1.1	2.0	3.1
Profit before tax	–6.5	–5.2	–17.8	1.0	–34.2
Income tax	1.5	1.6	4.5	4.8	–0.6
Profit for the period	–5.0	–3.6	–13.3	5.8	–34.8

Parent company balance sheet

Amounts in SEK million	September	September	December
	2012	2011	2011
Assets
Property plant and equipment	0.0	0.1	–
Financial non-current assets	1,023.2	1,100.8	1,048.4
Total non-current assets	1,023.2	1,100.9	1,048.4
Current assets	18.0	8.2	28.5
Liquid assets	64.6	21.7	45.7
Total current assets	82.6	29.9	74.2
Total assets	1,105.8	1,130.8	1,122.6
Equity and liabilities
Equity	826.9	889.0	848.4
Provisions	0.6	–1.2	–
Non-current liabilities	109.7	61.4	73.5
Current liabilities	168.6	181.6	200.7
Total liabilities	278.3	243.0	274.2
Total equity and liabilities	1,105.8	1,130.8	1,122.6

Major shareholders, September 30, 2012

	Number of shares	Share, %
The Karinen family	1,769,552	21.5
Briban Invest AB	1,283,492	15.6
Credit Agricole Suisse SA	348,098	4.2
Invus Investment AB	224,800	2.7
SEB Life Ireland, Dublin	207,767	2.5
Malte Edenius	200,000	2.4
Avanza Pensionsförsäkring AB	168,192	2.1
HSBC Trinkahaus and Burkhardt AG	136,530	1.7
Nordnet Pensionsförsäkring AB	136,379	1.7
SIX SIS AB	131,203	1.6
Total ten largest shareholders – holdings	4,606,013	56.0
Other shareholders	3,612,598	44.0
Total	8,218,611	100.0

The Studsvik share

In the third quarter the share price varied between a high of SEK 38.70 on July 10 and a low of SEK 34.80 on September 28, 2012. The price was SEK 31.80 at the beginning of the year and the closing price on September 30 was SEK 34.80. In the third quarter 0.362 million shares were traded and during January–September 3.860 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, decommissioning, engineering & services, and operating efficiency. 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 five segments: Sweden, United Kingdom, Germany, USA and Global Services. Studsvik has 1,100 employees in 7 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 studsvik@studsvik.se www.studsvik.se