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Studsvik — Interim / Quarterly Report 2013
Oct 23, 2013
3208_10-q_2013-10-23_318a382f-25b5-49f6-9e27-b0533b00c969.pdf
Interim / Quarterly Report
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Interim Report January–September 2013
- Sales for the third quarter amounted to SEK 265.1 (261.7) million. In local currencies sales increased by 14.0 per cent.
- The operating result for the third quarter increased to SEK 6.1 (–27.9) million.
- Improved performance in Sweden, the UK and the USA.
- Non-recurring items of SEK –4.0 (–18.3) million were recognized as an expense in the third quarter.
- Cash fl ow after investments amounted to SEK –47.3 (–123.2) million.
| July– September |
July– September |
January– September |
January– September |
Full year | |
|---|---|---|---|---|---|
| 2013 | 2012 | 2013 | 2012 | 2012 | |
| Sales, SEK million | 265.1 | 261.7 | 882.0 | 914.7 | 1,254.9 |
| Operating profi t, SEK million | 6.1 | –27.9 | 9.4 | –40.6 | –19.4 |
| Profi t after tax, SEK million | 3.1 | –27.9 | –11.7 | –60.3 | –47.8 |
| Cash fl ow from operating activities, SEK million | –43.6 | –112.7 | –46.3 | –44.1 | –7.3 |
| Cash fl ow after investments, SEK million | –47.3 | –123.2 | –61.4 | –80.3 | –56.2 |
| Profi t per share after tax, SEK | 0.38 | –3.39 | –1.43 | –7.33 | –5.82 |
| Net debt, SEK million | 172.1 | 141.7 | 172.1 | 141.7 | 114.5 |
| Equity per share, SEK | 56.60 | 56.66 | 56.60 | 56.66 | 58.19 |
| Net debt/equity ratio, % | 37.0 | 16.7 | 37.0 | 16.7 | 23.9 |
Sales
Sales in the third quarter amounted to SEK 265.1 (261.7) million, an increase of 14.0 per cent in local currencies. Sales in local currencies increasedin Sweden and the US, while they decreased in other segments. Sales in January–September amounted to SEK 882.0 (914.7) million,an increase in local currencies of 1.2 per cent.
Profi t
The operating result for the third quarter improved to SEK 6.1 (–27.9) million and for January–September to SEK 9.4 (–40.6) million. The operatingresult improved in Sweden, the United Kingdom and the USA but deteriorated in Germany and Global Services. Items affecting comparison/non-recurring items were recognized as an expensein the third quarter both in the current year and the previousyear. The current year's items refer to restructuring in Germany. The previousyear's items referred to the USA. In the third quarter these amounted to SEK –4.0 (–18.3) million and for January–September to SEK –4.0 (–26.7) million.
The operating margin, adjusted for items affecting comparability, for the third quarter was 3.8 (–3.5) per cent and 1.5 (–1.5) per cent for the period January–September. Net fi nancial income for the third quarter was SEK –0.3 (–3.7) million and SEK –14.7 (–9.9) million for January– September. The improvement in net fi nancial income in the third quarter is mainly the result of positive exchange rate effects and lower interest costs for the Group's bank loans.
The Group's tax for the third quarter was SEK –2.7 (3.7) millionand SEK –6.4 (–9.8) million for January–September. The result for the period after tax for the third quarter was SEK 3.1 (–27.9) million and SEK –11.7 (–60.3) million for January–September.
Sweden
Sales in the third quarter increased to SEK 42.2 (32.7) million and in January–September to SEK 143.6 (125.4) million. The operating profi t in the third quarter increased to SEK 6.6 (–6.3) million and in January– September to SEK 26.8 (3.6) million. The operating margin for January– September was 18.6 (2.9) per cent.
The capacity utilization and profi tability of the incineration facility continued to be high and as an effect of productivity enhancingmeasures increased by just over 10 per cent compared with the previousyear. The capacity utilization and profi tability of the meltingplant were good. The order book in both operations allows high capacity utilization in the fourth quarter.
United Kingdom
Sales in the third quarter decreased to SEK 37.9 (46.7) million, a decrease of 16 per cent in local currency. In January– September sales were SEK 191.5 (167.3) million, an increase of 21 per cent in local currency. In both 2012 and 2013 large components were treated for British customers.In the third quarter of 2013, however, fewer components were treatedthan in the previous year. The operating profi t for the third quarter increasedto SEK 2.5 (0.0) million and for January– September to SEK 17.6 (7.1) million.The operating margin for January–September amounted to 9.2 (4.2) per cent.
All operational areas reported improved earnings for January– September compared with the previous year. Capacity utilization in the metal recycling facility and incoming deliveries were at a high level. Consulting operations were well utilized and earnings in UK Nuclear Waste Management, in which Studsvik has a 15 per cent stake, improved. Studsvik's profi t share increased to SEK 2.1 (0.9) million in the third quarter and to SEK 6.6 (3.6) million in the period January–September.
The order book is sound, which allows high capacity utilization in the fourth quarter.
Germany
Sales in the third quarter amounted to SEK 71.7 (80.8) million, a decreaseof 4 per cent in local currency. In January–September sales were SEK 210.1 (250.8) million, a decrease of 7 per cent in local currency.The operating resultfor the third quarter amounted to SEK –2.2 (2.0) millionand for January– September to SEK –4.0 (–1.8) million. The operat ing profi t includescosts of restructuring and adaptation of opera tions to the new market conditions, amounting to SEK –4.0 million.The operating margin for January–September, adjusted for these items affectingcomparability, was 0.1 (–0.7) per cent.
Capacity utilization was satisfactory during the quarter, from contracts related to periodic maintenance work in the nuclear powerindustry, but also from ongoing decommissioning contracts. How ever, capacity utiliza tion was lower than in the previous year, primarilyas an effect of a severe reduction in purchases by the segment's largest single customer.Consequently, the organization had to continue to adapt and the numberof employeeswas reduced during the quarter by 29. The measures constitute a step in the readjustment of operations from the shrinking maintenance market to the growing and more profi table market in the long term of engineering services and decommissioning. The work of readjustment will continue during the fourth quarter with further efforts to increase margins in the operations.
The order book is thinner than at the same time last year, but enables satisfactory utilization of resources in the fourth quarter.
USA
Sales in the third quarter amounted to SEK 51.7 (44.8) million, an increaseof 18 per cent in local currency. In January–September sales were SEK 153.7 (175.0) million, a decrease of 9 per cent in local currency. The operating resultfor the third quarter improved to SEK 0.9 (–23.3) million and for January– September to SEK –20.5 (–50.6) million. The operating margin for January–September, adjusted for items affecting comparability, amounted to –13.3 (–13.7) per cent.
Sales in the third quarter measured in local currencies increased compared with the previous year and earnings improved. A consider able part of the improvement is because the third quarter in the previous year was charged with non-recurring items of SEK –18.3 million (January– September SEK –26.7 million). At the same time all areas of operation report improvements in the underlying business. The earnings improvement was achieved through increased sales and thereby increased capacityutilization, as well as through the action program initiated in the fi rst quarter aimed at restoring profi tability.
The order book is short-term in all operational areas.
Global Services
Sales in the third quarter amounted to SEK 56.4 (62.3) million, a decreaseof 8 per cent in local currency. In January–September sales were SEK 187.9 (210.4) million, a decrease of 7 per cent in local currency. Operat ing profi t for the third quarter amounted to SEK 4.2 (5.7) million and SEK 8.4 (17.9) million for January–September. The operating margin was 4.4 (8.5) per cent for January–September.
Sales decreased compared with the previous year in software operations. The decrease is related to variations in new sales, which have a direct impact on earnings, as the cost structure is by and large fi xed. Materialstechnology has gradually recovered after a weak start to the year. Sales in the third quarter were at the previousyear's level, but profi t ability improved. Work is in progress aimed at securingeven capacityutilization and improved profi tability. The measures focus on increas ing the order book, avoiding delays in delivery, adapting costs and raising prices. Consulting operations developed well, with a good infl ow of orders, satisfactory capacity utilization and profi tability.
The order book is sound, though somewhat lower than the previous year. Planned deliveries and the existing order book make improved capacityutilization possible in materials technology in the fourth quarter.
Investments
The Group's investments in the third quarter amounted to SEK 3.7 (10.5) million and to SEK 15.1 (36.2) million in January–September.
Cash fl ow
Cash fl ow from operating activities before working capital changes in the third quarter amounted to SEK 15.5 (–117.9) million and SEK 25.4 (–105.4) million for January–September. The major outfl ow in the previousyear referred to payment for disposal of waste in the USA, including related state tax, totaling SEK 93.8 million, for which funds were deposited (SEK 54.3 million) in 2011 and 2012. Working capital increased in the third quarter by SEK 59.1 (decreased by 5.2) million and increased in January–September by SEK 71.7 (decreased by 61.3) million. The increase in tied up working capitalin the third quarter is predominantly explained by smaller advance payments from customers.
Cash fl ow from operating activities after investments in the third quarterwas SEK –47.3 (–123.2) million and SEK –61.4 (–80.3) million in January–September.
Financial position and liquidity
Cash and cash equivalents, including current investments, amountedto SEK 192.2 (99.2) million.The improved liquidity situa tion is due to the bond program issued in the fi rst quarter. During January– September amortization amounted to SEK 72.9 (30.0) million, which in 2013 includedredemption of a bank loan of SEK 50 million in connection with the bond issue. Interest-bearing liabilities at the end of the quarter were SEK 364.3 (240.8) million. Net interest bearing debt was SEK 172.1 (141.7) million, which means that the net debt/equity ratio increased to 37.0 (16.7) per cent.
Equity amounted to SEK 465.5 (466.0) million.
Personnel
The average number of employees was 1,073 (1,107). The decrease refersto Germany.
Transactions with related parties
During the quarter a dividend of SEK 8.3 million was received 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 companysales in the third quarter amounted to SEK 3.3 (3.3) million and during January–September to SEK 9.8 (9.3) million. The operating loss for the third quarter amounted to SEK –5.8 (–6.2) million and for January– S eptember to SEK –20.6 (–18.9) million. The profi t after fi nancial items in the third quarter amounted to SEK –3.4 (–6.5) million and for January– September to SEK –25.5 (–17.8) million. Net fi nan cial incomewas affected by exchange rate differences of SEK 1.4 millionin the third quarter and SEK –1.0 million in January–September. Increased borrowing costs of SEK –2.5 million related to the bond issue are includedin net fi nancial income in the third quarter and of SEK –11.2 million in January–September.
Cash and cash equivalents, including current investments, amounted to SEK 137.0 (64.6) million and interest-bearing debt to SEK 269.3 (131.9) million.
Signifi cant events after the balance sheet date
On October 18 it was announced that at the end of the year the Chief Financial Offi cer Jerry Ericsson will take up a position as advisor to the Chief Executive Offi cer. He will be succeeded by Pål Jarness.
Risks and uncertainties
Studsvik operates in an international, competitive market and is thereby exposed to both business and fi nancial risks and uncer tainties.
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 produc tion facilities, but also for separate 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 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.
The fi nancial risks and uncertainties mainly include fl uctuations in exchangerates 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 material risks are considered to have arisen.
Outlook
The need for electricity is increasing globally. New nuclear power capacityis 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 German decision to phase out nuclear power by 2022 has reduced demand for service and maintenance. Studsvik has adapted its organization to this, but the new marketsituation will require further adjustment. The German nuclear power reactorsalready taken out of operation as well as those to be takenout of operation by 2022 will be subject to decommissioning. When this process will start is as yet not clear. Decommissioning and demolition of nuclear facilities in other marketsis expected to expand in the long term. Studsvik has a strong product portfolio for decommissioning and an established market position. Nuclear power production in Japan is at present at a complete standstill, which has a negative effectin the short term on demand from Japan for services and products related to produc tion and operation.
Accounting policies
Studsvik AB applies International Financial Reporting Standards as adoptedby the European Union. Material accounting policies and valuation principles are in accordance with those of the annualaccountsfor the fi nancial year ended December 31, 2012. The new and revised standards and interpretations IAS 1 "Presentation of fi nancial statements", IAS 19 "Employee benefi ts" and IFRS 13 "Fair value measurement" applicable from January 1, 2013 have not had any material effects on Studsvik's fi nan cial statements. This interim report was prepared in accord ance with IAS 34 and the Annual AccountsAct. The interim report for the parent company was preparedin accordance with the Annual Accounts Act and the Swedish Financial Reporting Board recommendation RFR 2 Accounting for legal entities.
Stockholm, October 23, 2013
Michael Mononen President
This report has not been reviewed by the company's auditors.
Time schedule for fi nancial information
| February 13, 2014 |
|---|
| April 23, 2014 |
| July 17, 2014 |
| October 21, 2014 |
Annual General Meeting 2014
The Annual General Meeting will be held on Wednesday, April 23, 2014.
For further information please contact
Michael Mononen, 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 23, at 14:30 CET. Further information for those interestedin participating is available at www.studsvik.se.
Consolidated statement of profi t or loss and other comprehensive income
| Amounts in SEK million | July– September 2013 |
July– September 2012 |
January– September 2013 |
January– September 2012 |
Full year 2012 |
|---|---|---|---|---|---|
| Net sales | 265.1 | 261.7 | 882.0 | 914.7 | 1,254.9 |
| Cost of services sold | –202.2 | –230.6 | –700.8 | –767.3 | –1,007.7 |
| Gross profi t | 62.9 | 31.1 | 181.2 | 147.4 | 247.2 |
| Other operating income | 2.4 | 1.2 | 9.4 | 4.6 | 8.6 |
| Selling and marketing expenses | –10.7 | –11.3 | –36.9 | –37.5 | –51.8 |
| Administrative expenses | –39.5 | –41.1 | –125.1 | –136.0 | –180.1 |
| Research and development costs | –6.2 | –6.2 | –19.2 | –18.6 | –25.4 |
| Share in non-controlling interest | 2.2 | 1.2 | 6.6 | 3.8 | 5.4 |
| Other operating expenses | –5.0 | –2.8 | –6.6 | –4.3 | –23.3 |
| Operating profi t | 6.1 | –27.9 | 9.4 | –40.6 | –19.4 |
| Financial income | 0.3 | 0.3 | 1.0 | 0.6 | 0.8 |
| Financial expenses | –2.3 | –3.8 | –14.3 | –10.9 | –14.2 |
| Fair value gain/loss (realized and unrealized) | 1.7 | –0.2 | –1.4 | 0.4 | –0.4 |
| Profi t after fi nancial items | 5.8 | –31.6 | –5.3 | –50.5 | –33.2 |
| Income tax | –2.7 | 3.7 | –6.4 | –9.8 | –14.6 |
| Profi t for the period | 3.1 | –27.9 | –11.7 | –60.3 | –47.8 |
| Other comprehensive income | |||||
| Items that may later be reversed in the income statement | |||||
| Translation differences on foreign subsidiaries | –5.8 | –18.4 | –2.6 | –16.8 | –17.7 |
| Cash fl ow hedges | 1.1 | 3.6 | 2.1 | 3.4 | 4.1 |
| Income tax on items recognized in other comprehensive income | –0.3 | –0.9 | –0.5 | –0.9 | –0.9 |
| Other comprehensive income for the period, net after tax | –5.0 | –15.7 | –1.0 | –14.3 | –14.5 |
| Total profi t or loss and other comprehensive income for | |||||
| the period | –1.9 | –43.6 | –12.7 | –74.6 | –62.3 |
| Income for the period attributable to | |||||
| Parent company's shareholders | 3.1 | –27.9 | –11.7 | –60.3 | –47.8 |
| Non-controlling interest | – | – | – | – | – |
| Total comprehensive income attributable to | |||||
| Parent company's shareholders | –1.9 | –43.6 | –12.7 | –74.6 | –62.3 |
| 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 | 0.38 | –3.39 | –1.43 | –7.33 | –5.82 |
| After dilution | 0.38 | –3.39 | –1.43 | –7.33 | –5.82 |
Group statement of fi nancial position
| Amounts in SEK million | September | September | December |
|---|---|---|---|
| 2013 | 2012 | 2012 | |
| Assets | |||
| Goodwill | 299.0 | 299.2 | 300.9 |
| Other intangible non-current assets | 24.9 | 29.7 | 28.5 |
| Property, plant and equipment | 428.9 | 465.6 | 459.6 |
| Financial non-current assets | 119.0 | 122.0 | 119.9 |
| Total non-current assets | 871.8 | 916.5 | 908.9 |
| Inventories | 7.9 | 19.6 | 7.0 |
| Trade receivables | 163.3 | 148.6 | 169.1 |
| Other current receivables | 141.9 | 121.7 | 115.6 |
| Liquid assets | 192.2 | 99.2 | 115.8 |
| Total current assets | 505.3 | 389.1 | 407.5 |
| Total assets | 1,377.1 | 1,305.6 | 1,316.4 |
| Equity and liabilities | |||
| Equity attributable to parent company's shareholders | 465.2 | 465.7 | 477.9 |
| Non-controlling interest | 0.3 | 0.3 | 0.3 |
| Borrowings | 265.6 | 125.1 | 131.0 |
| Provisions | 232.6 | 221.8 | 221.8 |
| Other non-current liabilities | 39.4 | 40.3 | 42.1 |
| Total non-current liabilities | 537.6 | 387.2 | 394.9 |
| Trade payables | 40.8 | 69.1 | 68.5 |
| Borrowings | 98.7 | 115.7 | 99.3 |
| Other current liabilities | 234.5 | 267.6 | 275.5 |
| Total current liabilities | 374.0 | 452.4 | 443.3 |
| Total equity and liabilities | 1,377.1 | 1,305.6 | 1,316.4 |
| Pledged assets | 157.0 | 142.6 | 142.4 |
| Contingent liabilities | 88.8 | 96.3 | 83.6 |
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 | |
| 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 |
| Changes October 1 – December 31, 2012 | |||||||
| Comprehensive income for the period | – | – | –0.2 | 12.4 | 12.2 | – | 12.2 |
| Equity at December 31, 2012 | 8.2 | 225.3 | –10.8 | 255.2 | 477.9 | 0.3 | 478.2 |
| Changes January 1 – September 30, 2013 | |||||||
| Comprehensive income for the period | – | – | –1.0 | –11.7 | –12.7 | 0.0 | –12.7 |
| Equity at September 30, 2013 | 8.2 | 225.3 | –11.8 | 243.5 | 465.2 | 0.3 | 465.5 |
Statement of cash fl ow
| Amounts in SEK million | July– September 2013 |
July– September 2012 |
January– September 2013 |
January– September 2012 |
Full year 2012 |
|---|---|---|---|---|---|
| Operating activities | |||||
| Operating profi t | 6.1 | –27.9 | 9.4 | –40.6 | –19.4 |
| Depreciation | 15.5 | 16.0 | 47.0 | 47.7 | 64.0 |
| Adjustment for non-cash items etc | –0.8 | –99.9 | –4.9 | –78.4 | –72.8 |
| 20.8 | –111.8 | 51.5 | –71.3 | –28.2 | |
| Financial items. net | –1.9 | –3.4 | –13.3 | –10.3 | –13.4 |
| Income tax paid | –3.4 | –2.7 | –12.8 | –23.8 | –27.5 |
| Cash fl ow from operating activities before changes in working capital |
15.5 | –117.9 | 25.4 | –105.4 | –69.1 |
| Changes in working capital | –59.1 | 5.2 | –71.7 | 61.3 | 61.8 |
| Cash fl ow from operating activities | –43.6 | –112.7 | –46.3 | –44.1 | –7.3 |
| Investing activities | |||||
| Investments | –3.7 | –10.5 | –15.1 | –36.2 | –48.9 |
| Cash fl ow after investments | –47.3 | –123.2 | –61.4 | –80.3 | –56.2 |
| Other changes from investing activities | 33.5 | 60.0 | 3.8 | 36.4 | 39.8 |
| Cash fl ow from operating activities after investments and other changes from investing activities |
–13.8 | –63.2 | –57.6 | –43.9 | –16.4 |
| Financing activities | |||||
| Change in borrowings | 0.5 | 60.5 | 134.4 | 33.4 | 22.0 |
| Dividend to shareholders | – | – | – | –8.2 | –8.2 |
| Cash fl ow from investing activities | 0.5 | 60.5 | 134.4 | 25.2 | 13.8 |
| Changes in liquid assets | –13.3 | –2.7 | 76.8 | –18.7 | –2.6 |
| Liquid assets at the beginning of the year | 205.9 | 105.4 | 115.8 | 122.1 | 122.1 |
| Translation difference in liquid assets | –0.4 | –3.5 | –0.4 | –4.2 | –3.7 |
| Liquid assets at the end of the period | 192.2 | 99.2 | 192.2 | 99.2 | 115.8 |
| Cash fl ow specifi cation | |||||
| Adjustment for non-cash items etc. | |||||
| Utilization of provisioins for waste in the USA | – | –93.8 | – | –93.8 | –118.7 |
| Other changes in provisions | 1.3 | –4.9 | 2.8 | 18.9 | 48.5 |
| Share in earnings from associated companies | –2.2 | –1.2 | –6.6 | –3.8 | –5.4 |
| Other | 0.1 | 0.0 | –1.1 | 0.3 | 2.8 |
| Total | –0.8 | –99.9 | –4.9 | –78.4 | –72.8 |
| Other changes from investing activities | |||||
| Investment in associated companies | – | – | – | –3.3 | –3.3 |
| Dividend from associated companies | 8.3 | 4.0 | 9.1 | 4.0 | 8.8 |
| Utilization of deposited funds | – | 54.3 | – | 54.3 | 54.3 |
| Deposit of funds | – | 0.0 | –4.4 | –19.1 | –19.9 |
| Sale of non-current assets | 0.2 | 0.1 | 0.6 | 0.0 | 0.0 |
| Current investments in commercial paper Other |
24.8 0.2 |
– 1.6 |
– –1.5 |
– 0.5 |
– –0.1 |
| Total | 33.5 | 60.0 | 3.8 | 36.4 | 39.8 |
| Change in borrowings | |||||
| Loans raised Repayments of loans |
3.4 –2.9 |
63.7 –3.2 |
207.3 –72.9 |
63.4 –30.0 |
63.3 –41.3 |
| Total | 0.5 | 60.5 | 134.4 | 33.4 | 22.0 |
Financial ratios for the Group
| Amounts in SEK million | January– | January– | ||
|---|---|---|---|---|
| September | September | Full year | ||
| 2013 | 2012 | 2012 | ||
| Operating profi t | ||||
| EBITDA, operating profi t before depreciation | 56.4 | 7.2 | 44.6 | |
| Margins | ||||
| Operating margin before depreciation, % | 6.4 | 0.8 | 3.6 | |
| Operating margin, % | 1.1 | –4.4 | –1.5 | |
| Profi t margin, % | –0.6 | –5.5 | –2.6 | |
| Profi tability | ||||
| Return on operating capital, % | 2.0 | –8.6 | –3.1 | |
| Return on capital employed, % | 1.8 | –6.4 | –1.9 | |
| Return on equity, % | –2.5 | –11.9 | –9.5 | |
| Capital structure | ||||
| Operating capital | 637.6 | 607.7 | 592.7 | |
| Capital employed | 829.8 | 706.8 | 708.5 | |
| Equity | 465.5 | 466.0 | 478.2 | |
| Interest-bearing net debt | 172.1 | 141.7 | 114.5 | |
| Net debt/equity ratio, % | 37.0 | 16.7 | 23.9 | |
| Interest cover ratio | 0.7 | –2.3 | –0.8 | |
| Equity/assets ratio, % | 33.8 | 35.7 | 36.3 | |
| Cash fl ow | ||||
| Self fi nancing ratio | –3.1 | –1.2 | –0.1 | |
| Investments | 15.1 | 36.2 | 48.9 | |
| EBITDA/Net fi nancial items, rolling12 months | 5.0 | 6.1 | 3.2 | |
| Employees | ||||
| Average number of employees | 1,073 | 1,107 | 1,104 | |
| Net sales per employee | 1.1 | 1.1 | 1.1 | |
| Data per share | July– | January– | January– | |||
|---|---|---|---|---|---|---|
| September | September | September | September | Full year | ||
| 2013 | 2012 | 2013 | 2012 | 2012 | ||
| 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 | 0.38 | –3.39 | –1.43 | –7.33 | –5.82 | |
| Earnings per share after dilution, SEK | 0.38 | –3.39 | –1.43 | –7.33 | –5.82 | |
| Equity per share, SEK | 56.60 | 56.66 | 56.60 | 56.66 | 58.19 |
Net sales per geographical segment
| Amounts in SEK million | July– | July– | January– | January– | ||
|---|---|---|---|---|---|---|
| September | September | September | September | Full year | ||
| 2013 | 2012 | 2013 | 2012 | 2012 | ||
| Sweden | 46.9 | 39.6 | 128.8 | 116.2 | 161.3 | |
| Europe, excluding Sweden | 147.9 | 162.9 | 522.2 | 541.7 | 738.4 | |
| North America | 68.8 | 57.9 | 219.9 | 223.3 | 318.5 | |
| Asia | 1.5 | 1.3 | 11.1 | 33.5 | 36.7 | |
| Total | 265.1 | 261.7 | 882.0 | 914.7 | 1,254.9 |
Quarterly review
| Amounts in SEK million | 2011 | 2012 | 2013 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | Q3 | |
| Net sales | 297.2 | 290.0 | 252.8 | 360.7 | 322.7 | 330.3 | 261.7 | 340.2 | 297.7 | 319.2 | 265.1 |
| Operating expenses | –288.5 | –287.6 | –262.9 | –308.1 | –332.4 | –333.3 | –289.6 | –319.0 | –301.6 | –312.0 | –259.0 |
| Operating profi t | 8.7 | 2.4 | –10.1 | 52.6 | –9.7 | –3.0 | –27.9 | 21.2 | –3.9 | 7.2 | 6.1 |
| Financial items. net | –5.2 | –2.1 | –3.2 | –2.4 | –3.0 | –3.2 | –3.7 | –3.9 | –4.9 | –9.5 | –0.3 |
| Profi t after fi nancial items | 3.5 | 0.3 | –13.3 | 50.2 | –12.7 | –6.2 | –31.6 | 17.3 | –8.8 | –2.3 | 5.8 |
Financial data per segment
| Amounts in SEK million | United | Global | Elimina | |||||
|---|---|---|---|---|---|---|---|---|
| July–September 2013 | Sweden | Kingdom | Germany | USA | Services | Other | tions | Group |
| External sales revenue | 40.9 | 37.9 | 70.9 | 51.7 | 56.1 | 7.6 | – | 265.1 |
| Revenue from segment | 1.3 | – | 0.8 | – | 0.3 | 4.8 | –7.2 | 0.0 |
| Operating profi t | 6.6 | 2.5 | –2.2 | 0.9 | 4.2 | –5.9 | – | 6.1 |
| Assets | 125.0 | 220.5 | 192.5 | 423.8 | 199.2 | 453.1 | –237.0 | 1,377.1 |
| Liabilities | 170.7 | 105.6 | 153.0 | 292.4 | 77.8 | 349.1 | –237.0 | 911.6 |
| Investments | 1.3 | 0.6 | – | 0.3 | 1.3 | 0.2 | – | 3.7 |
| Depreciation/amortization | 2.0 | 1.3 | 0.5 | 7.5 | 2.3 | 1.9 | – | 15.5 |
| Average number of employees | 104 | 88 | 542 | 102 | 162 | 78 | – | 1,076 |
| 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 profi t | –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 | ||||||
|---|---|---|---|---|---|---|---|---|
| January–September 2013 | Sweden | Kingdom | Germany | USA | Services | Other | tions | Group |
| External sales revenue | 117.8 | 191.5 | 208.8 | 153.7 | 187.0 | 23.2 | – | 882.0 |
| Revenue from segment | 25.8 | – | 1.3 | – | 0.9 | 14.8 | –42.8 | 0.0 |
| Operating profi t | 26.8 | 17.6 | –4.0 | –20.5 | 8.4 | –18.9 | – | 9.4 |
| Assets | 125.0 | 220.5 | 192.5 | 423.8 | 199.2 | 453.1 | –237.0 | 1,377.1 |
| Liabilities | 170.7 | 105.6 | 153.0 | 292.4 | 77.8 | 349.1 | –237.0 | 911.6 |
| Investments | 6.7 | 2.8 | 0.8 | 0.5 | 2.8 | 1.5 | – | 15.1 |
| Depreciation/amortization | 6.2 | 3.9 | 1.6 | 23.0 | 6.6 | 5.7 | – | 47.0 |
| Average number of employees | 102 | 87 | 538 | 106 | 163 | 77 | – | 1,073 |
| 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 profi t | 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 | ||||||
|---|---|---|---|---|---|---|---|---|
| Full year 2012 | Sweden | Kingdom | Germany | USA | Services | Other | tions | Group |
| External sales revenue | 132.9 | 219.3 | 330.0 | 255.0 | 284.4 | 33.3 | – | 1,254.9 |
| Revenue from segment | 58.7 | – | 1.3 | – | 0.1 | 13.5 | –73.6 | 0.0 |
| Operating profi t | 20.2 | 8.5 | –6.7 | –43.5 | 26.1 | –24.0 | – | –19.4 |
| Assets | 135.3 | 222.4 | 195.6 | 456.0 | 192.4 | 357.2 | –242.5 | 1,316.4 |
| Liabilities | 160.0 | 119.6 | 150.9 | 296.3 | 124.2 | 229.7 | –242.5 | 838.2 |
| Investments | 19.2 | 2.0 | 3.6 | 3.1 | 11.0 | 10.0 | – | 48.9 |
| Depreciation/amortization | 8.2 | 5.3 | 2.8 | 33.2 | 7.2 | 7.3 | – | 64.0 |
| Average number of employees | 97 | 82 | 584 | 106 | 160 | 75 | – | 1,104 |
Fair value estimation
The tables below show fi nancial instruments at fair value on the basis of their classifi cation in the fair value hierarchy. The defi nition of the various levels can be found in the Annual Report, Note 2.3.
The Group's assets and liabilities measured at fair value as at September 30, 2013
| Assets | Level 1 | Level 2 | Level 3 |
|---|---|---|---|
| Financial assets at fair value through profi t or loss | – | 44,253 | 9,343 |
| Derivatives used for hedging | – | 6,973 | – |
| Liabilities | |||
| Derivatives used for hedging | – | 771 | – |
The Group's assets and liabilities measured at fair value as at December 31, 2012
| Assets | Level 1 | Level 2 | Level 3 |
|---|---|---|---|
| Financial assets at fair value through profi t or loss | – | 14,925 | 8,287 |
| Derivatives used for hedging | – | 3,017 | – |
| Liabilities | |||
| Derivatives used for hedging | – | 2,560 | – |
| Fair value of the Group's borrowings | September 30, 2013 | December 31, 2012 | |
|---|---|---|---|
| Non-current loans | 265.6 | 131.0 | |
| Current loans | 98.7 | 99.3 | |
| Total loans | 364.3 | 230.3 |
| Parent company income statement Amounts in SEK million |
July– September 2013 |
July– September 2012 |
January– September 2013 |
January– September 2012 |
Full year 2012 |
|---|---|---|---|---|---|
| Net sales | 3.3 | 3.3 | 9.8 | 9.3 | 12.8 |
| Cost of services sold | –0.7 | –0.7 | –2.1 | –2.2 | –2.6 |
| Gross profi t | 2.6 | 2.6 | 7.7 | 7.1 | 10.2 |
| Other operating costs | –8.4 | –8.8 | –28.3 | –26.0 | –33.9 |
| Operating profi t | –5.8 | –6.2 | –20.6 | –18.9 | –23.7 |
| Dividends from subsidiaries | – | – | – | – | –248.6 |
| Financial net | 2.4 | –0.3 | –4.9 | 1.1 | 0.7 |
| Profi t before tax | –3.4 | –6.5 | –25.5 | –17.8 | –271.6 |
| Income tax | 0.7 | 1.5 | 5.8 | 4.5 | –1.3 |
| Profi t for the period | –2.7 | –5.0 | –19.7 | –13.3 | –272.9 |
Parent company balance sheet
| Amounts in SEK million | September | September | December |
|---|---|---|---|
| 2013 | 2012 | 2012 | |
| Assets | |||
| Property plant and equipment | – | 0.0 | 0.0 |
| Financial non-current assets | 791.4 | 1,023.2 | 763.3 |
| Total non-current assets | 791.4 | 1,023.2 | 763.3 |
| Current assets | 22.2 | 18.0 | 33.7 |
| Liquid assets | 137.0 | 64.6 | 62.9 |
| Total current assets | 159.2 | 82.6 | 96.6 |
| Total assets | 950.6 | 1,105.8 | 859.9 |
| Equity and liabilities | |||
| Equity | 547.6 | 826.9 | 567.3 |
| Provisions | – | 0.6 | 0.4 |
| Non-current liabilities | 308.9 | 109.7 | 169.2 |
| Current liabilities | 94.1 | 168.6 | 123.0 |
| Total liabilities | 403.0 | 278.3 | 292.2 |
| Total equity and liabilities | 950.6 | 1,105.8 | 859.9 |
Major shareholders, September 30, 2013
| Number of shares | Share, % | |
|---|---|---|
| The Karinen family | 1,769,552 | 21.5 |
| Briban Invest AB | 1,283,492 | 15.6 |
| Avanza Pensionsförsäkring AB | 391,946 | 4.8 |
| Credit Agricole Suisse SA | 346,098 | 4.2 |
| Malte Edenius | 230,000 | 2.8 |
| Invus Investment AB | 224,800 | 2.7 |
| SIX SIS AG | 213,385 | 2.6 |
| Nordnet Pensionsförsäkring AB | 212,110 | 2.6 |
| Eikos AB | 180,000 | 2.2 |
| Leif Lundin | 178,000 | 2.2 |
| Total ten largest shareholders – holdings | 5,029,383 | 61.2 |
| Other shareholders | 3,189,228 | 38.8 |
| Total | 8,218,611 | 100.0 |
The Studsvik share
In the third quarter the share price varied between a high of SEK 32.40 on September 5 and a low of SEK 30.90 on September 23, 2013. The price was SEK 29.40 at the beginning of the year and the closing price on September 30 was SEK 31.30. In the third quarter 0.54 million shares were traded and during January–September 1.71 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 more than 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 1,100 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).
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