Interim Report January–March 2013

• Sales amounted to SEK 297.7 million (322.7), in local currencies a decrease of 4.7 per cent.
• The operating result improved to SEK –3.9 million (–9.7.).
• Improved performance in four of five segments, but weak trend in the USA.
• Issue of a three-year unsecured corporate bond of SEK 200 million.
• Cash flow after investments amounted to SEK –32.6 million (11.7).

	January–March 2013	January–March 2012	Full year 2012
Sales, SEK million	297.7	322.7	1,254.9
Operating profit, SEK million	–3.9	–9.7	–19.4
Profit after tax, SEK million	–11.3	–14.4	–47.8
Cash flow from operating activities, SEK million	–27.7	28.6	–7.3
Cash flow after investments, SEK million	–32.6	11.7	–56.2
Profit per share after tax, SEK	–1.37	–1.76	–5.82
Net debt, SEK million	152.0	91.0	114.5
Equity per share, SEK	56.39	63.82	58.19
Net debt/equity ratio, %	32.8	17.3	23.9

Sales

Sales amounted to SEK 297.7 million (322.7), a decrease of 4.7 per cent in local currencies. Sales in local currencies increased in Sweden and United Kingdom, while they decreased in Global Services, USA and Germany.

Profit

The operating result improved to SEK –3.9 million (–9.7). The operating result increased in Sweden, United Kingdom, Germany and Global Services, but deteriorated in USA.

The operating margin amounted to –1.3 (–3.0) per cent and net financial income to SEK –4.9 million (–3.0).

Taxes were SEK –2.5 million (–1.7). The profit after tax for the period was SEK –11.3 million (–14.4).

Sweden

Sales amounted to SEK 42.6 million (40.9) and the operating profit increased to SEK 5.3 million (2.4), which corresponds to an operating margin of 12.4 (5.9) per cent.

The incineration facility developed well, with high capacity utilization, good profitability and increased production compared with the previous year. Output and profitability also increased in the metal treatment operations. In both operational areas there were productivity-improving investments that increased the capacity of the incineration facility by about 10 per cent and that will eliminate a number of bottlenecks in the metal processing facility, thus increasing capacity.

During the quarter the Swedish Radiation Safety Authority granted a license for pilot operations in the new pyrolysis facility. After evaluation of the pilot operations the facility will be brought into production. This is expected to take place in the second half of the year. The facility will have high capacity utilization from the start and will process material within the framework of a 20-year contract with Westinghouse Electric.

The order book is sound, which allows high capacity utilization in 2013. The order book contains 10 heat exchangers from England that arrived in Studsvik in the first quarter.

United Kingdom

Sales amounted to SEK 80.9 million (56.7), an increase in local currency of 50 per cent, and the operating profit increased to SEK 4.6 million (2.7), which corresponds to an operating margin of 5.7 (4.8) per cent.

The positive trend in the United Kingdom continued, with increased sales and improved performance compared with the previous year. Sales increased in all operational areas. After a weak start to the quarter, deliveries to the metal recycling facility increased and reached 434 tonnes, an increase of 23 per cent compared with the previous year. The consulting operations were well utilized. The Nuclear Decommissioning Authority appointed UK Nuclear Waste Management Ltd., in which Studsvik has a 15 per cent stake, to be responsible for the operation of the United Kingdom's low-level radioactive waste depository for at least a further five years.

The order book is sound, which allows high capacity utilization for 2013.

Germany

Sales amounted to SEK 60.8 million (76.7), a decrease in local currency of 13 per cent, and the operating result to SEK –1.0 million (–2.9). SEK 1.4 million was recognized as an expense for final settlement in the sale of the French operations. Adjusted for this, the operating margin was 0.7 (–3.8) per cent.

The beginning of the year was normal for Germany. Sales were lower than the previous year, which is an effect of no major maintenance work being done in nuclear power plants in continental Europe. The organization has been further reduced since the turn of the year and the gradual adjustment of cost structure to the new market situation is starting to show an effect on earnings. Studsvik is involved in a number of decommissioning projects in Germany and Belgium. The projects are going as planned and resources are well utilized. Engineering operations had a good level of capacity utilization.

The order book is at the same level as the previous year and is being gradually built up with orders for annual maintenance and service work, which are normally signed some way into the year.

USA

Sales amounted to SEK 47.9 million (71.7), a decrease in local currency of 30 per cent, and the operating result to SEK –13.6 million (–11.5), which corresponds to an operating margin of –28.4 (–16.0) per cent.

The weak trend in the USA continued in the first quarter and sales decreased in all operational areas compared with the previous year. Consulting operations had a low level of capacity utilization. An action program is in progress to restore profitability. The program includes cutting costs, adapting the organization and production efficiency improvement, which together with price increases are to raise profitability.

The order book is short-term in all operational areas.

Global Services

Sales amounted to SEK 64.2 million (71.1), a decrease in local currencies of 5 per cent, and the operating profit improved to SEK 6.3 million (4.7), which corresponds to an operating margin of 9.8 (6.6) per cent.

Sales decreased compared with the previous year in software operations. The decrease is mainly related to normal variations in new sales. Sales increased somewhat in the materials technology operations and profitability improved compared with the previous year, in which costs of extensive maintenance at one of its laboratories were recognized as an expense. The consulting operations developed positively, with good capacity utilization and profitability.

The order book is sound, though somewhat lower than the previous year.

Investments

The Group's investments amounted to SEK 4.9 million (16.9).

Cash flow

Cash flow from operating activities before working capital changes amounted to SEK –3.8 million (–1.5). Working capital increased by SEK 23.9 million (decreased by 30.1). The increase in tied up working capital primarily refers to the United Kingdom, due to high invoicing in March. Working capital was mainly unchanged in other segments.

Cash flow from operating activities after investments was SEK –32.6 million (11.7).

Financial position and liquidity

During the quarter a three-year unsecured bond was issued of SEK 200 million, maturing in March 2016. The bond bears a variable interest rate of 3 months Stibor with a margin of 3.75 percentage points. A total of SEK 53.5 million was amortized during the quarter, including a one-off amortization of SEK 50 million, made when the bond was issued. Cash and cash equivalents, including current investments, thus increased to SEK 222.5 million (115.9). As an effect of the bond issue interest-bearing liabilities increased, amounting to SEK 374.5 million (206.9) at the close of the quarter. Net interest-bearing debt increased to SEK 152.0 million (91.0), which means that the net debt/equity ratio increased to 32.8 (17.3) per cent.

Equity amounted to SEK 463.5 million (524.8).

Personnel

The average number of employees was 1,056 (1,106). The decrease refers to Germany.

Transactions with related parties

There were no transactions with related parties during the quarter.

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 amounted to SEK 3.2 million (3.0). The operating loss amounted to SEK –7.5 million (–6.1). The profit after financial items amounted to SEK –8.3 million (–5.8).

Cash and cash equivalents amounted to SEK 191.4 million (21.7) and interest-bearing liabilities to SEK 281.3 million (90.7).

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 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 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 material 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. The decision that Germany is to phase out nuclear power by 2022 has reduced demand for service and maintenance. The German facilities already taken out of operation or that will be taken out of operation by 2022 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. Studsvik has a strong product portfolio for the decommissioning market and an established market position.

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, 2012. The new and revised standards and interpretations IAS 1 "Presentation of financial statements", IAS 19 "Employee benefits" and IFRS 13 "Fair value measurement" applicable from January 1, 2013 have not had any material effects on Studsvik's financial statements. 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, April 22, 2013

Michael Mononen President

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

Time schedule for financial information

Interim Report January–June 2013	July 19, 2013
Interim Report January–September 2013 October 23, 2013
Year-end Report January–December 2013	February 2014

For further information please contact

Michael Mononen, President and Chief Executive Officer, +46 155 22 10 86 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 April 22, at 14:30 CET. Further information for those interested in participating is available at www.studsvik.se.

Consolidated statement of profit or loss and other comprehensive income

Amounts in SEK million	Note	January– March 2013	January– March 2012	Full year 2012
Net sales		297.7	322.7	1,254.9
Cost of services sold		–243.3	–270.0	–1,007.7
Gross profit		54.4	52.7	247.2
Other operating income	1	5.3	2.3	8.6
Selling and marketing expenses		–12.8	–12.5	–51.8
Administrative expenses		–42.5	–45.4	–180.1
Research and development costs		–6.3	–6.1	–25.4
Share in non-controlling interest		1.0	0.9	5.4
Other operating expenses		–3.0	–1.6	–23.3
Operating profit		–3.9	–9.7	–19.4
Financial income		0.6	3.8	5.0
Financial expenses		–5.5	–6.8	–18.8
Profit after financial items		–8.8	–12.7	–33.2
Income tax		–2.5	–1.7	–14.6
Profit for the period		–11.3	–14.4	–47.8
Other comprehensive income
Items that may later be reversed in the income statement
Translation differences on foreign subsidiaries		–9.5	–12.2	–17.7
Cash flow hedges		7.8	3.5	4.1
Income tax on items recognized in other comprehensive income		–1.7	–0.9	–0.9
Other comprehensive income for the period, net after tax		–3.4	–9.6	–14.5
Total profit or loss and other comprehensive income for		–14.7	–24.0	–62.3
the period
Income for the period attributable to
Parent company's shareholders		–11.3	–14.4	–47.8
Non-controlling interest		–	–	–
Total comprehensive income attributable to
Parent company's shareholders		–14.7	–24.0	–62.3
Non-controlling interest		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		–1.37	–1.76	–5.82
After dilution		–1.37	–1.76	–5.82

Group statement of financial position

Amounts in SEK million

Amounts in SEK million		March	March	December
	Note	2013	2012	2012
Assets
Goodwill		295.2	306.5	300.9
Other intangible non-current assets		27.3	32.4	28.5
Property, plant and equipment		442.5	474.9	459.6
Financial non-current assets	1	125.2	175.0	119.9
Total non-current assets		890.2	988.8	908.9
Inventories		6.9	16.2	7.0
Trade receivables		196.0	208.2	169.1
Other current receivables	1	138.1	75.7	115.6
Other current investments	1	34.7	–	–
Liquid assets		187.8	115.9	115.8
Total current assets		563.5	416.0	407.5
Total assets		1,453.7	1,404.8	1,316.4
Equity and liabilities
Equity attributable to parent company's shareholders		463.2	524.5	477.9
Non-controlling interest		0.3	0.3	0.3
Borrowings		322.7	83.2	131.0
Provisions		224.5	283.7	221.8
Other non-current liabilities	1	40.8	39.7	42.1
Total non-current liabilities		588.0	406.6	394.9
Trade payables		46.1	78.4	68.5
Borrowings		51.8	123.7	99.3
Other current liabilities	1	304.3	271.3	275.5
Total current liabilities		402.2	473.4	443.3
Total equity and liabilities		1,453.7	1,404.8	1,316.4
Pledged assets		138.6	170.2	142.4
Contingent liabilities		91.1	144.8	83.6

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, 2011	8.2	225.3	3.7	311.3	548.5	0.3	548.8
Changes January 1 – March 31, 2012
Comprehensive income for the period	–	–	–9.6	–14.4	–24.0	0.0	–24.0
Equity at March 31, 2012	8.2	225.3	–5.9	296.9	524.5	0.3	524.8
Changes April 1 – December 31, 2012
Dividend	–	–	–	–8.2	–8.2	–	–8.2
Comprehensive income for the period	–	–	–4.9	–33.5	–38.4	0.0	–38.4
Equity at December 31, 2012	8.2	225.3	–10.8	255.2	477.9	0.3	478.2
Changes January 1 – March 31, 2013
Comprehensive income for the period	–	–	–3.4	–11.3	–14.7	0.0	–14.7
Equity at March 31, 2013	8.2	225.3	–14.2	243.9	463.2	0.3	463.5

Statement of cash flow

Amounts in SEK million	January–	January–	Full year
	March 2013	March 2012	2012
Operating activities
Operating profit	–3.9	–9.7	–19.4
Depreciation	15.8	15.5	64.0
Adjustment for non-cash items etc	–6.8	5.1	–72.8
Financial items. net	5.1 –3.6	10.9 –3.3	–28.2 –13.4
Income tax paid	–5.3	–9.1	–27.5
Cash flow from operating activities before changes in
working capital	–3.8	–1.5	–69.1
Changes in working capital	–23.9	30.1	61.8
Cash flow from operating activities	–27.7	28.6	–7.3

Investing activities
Investments	–4.9	–16.9	–48.9
Other changes from investing activities	–40.6	–12.0	39.8
Cash flow from investing activities	–45.5	–28.9	–9.1
Cash flow from operating activities after investments and
other changes from investing activities	–73.2	–0.3	–16.4
Financing activities
Change in borrowings	147.4	–3.9	22.0
Dividend to shareholders	–	–	–8.2
Cash flow from investing activities	147.4	–3.9	13.8
Changes in liquid assets	74.2	–4.2	–2.6
Liquid assets at the beginning of the year	115.8	122.1	122.1
Translation difference in liquid assets	–2.2	–2.0	–3.7
Liquid assets at the end of the period	187.8	115.9	115.8

Cash flow specification
Adjustment for non-cash items etc.
Utilization of provisioins for waste in the USA	–	–	–118.7
Other changes in provisions	–6.0	5.8	48.5
Share in earnings from associated companies	–1.0	–0.9	–5.4
Other	0.2	0.2	2.8
Total	–6.8	5.1	–72.8
Other changes from investing activities
Investment in associated companies	–	–2.8	–3.3
Dividend from associated companies	–	–	8.8
Utilization of deposited funds	–	–	54.3
Deposit of funds	–4.4	–9.4	–19.9
Sale of non-current assets	0.3	0.1	0.0
Current investments in commercial paper	–34.7	–	–
Other	–1.8	0.1	–0.1
Total	–40.6	–12.0	39.8
Change in borrowings
Loans raised	200.9	–0.1	63.3
Repayments of loans	–53.5	–3.8	–41.3
Total	147.4	–3.9	22.0

Financial ratios for the Group

Amounts in SEK million	January– March 2013	January– March 2012	Full year 2012
Operating profit
EBITDA, operating profit before depreciation	11.9	5.9	44.6
Margins
Operating margin before depreciation, %	4.0	1.8	3.6
Operating margin, %	–1.3	–3.0	–1.5
Profit margin, %	–3.0	–3.9	–2.6
Profitability
Return on operating capital, %	–2.6	–6.1	–3.1
Return on capital employed, %	–1.7	–3.2	–1.9
Return on equity, %	–9.6	–10.7	–9.5
Capital structure
Operating capital	615.4	615.8	592.7
Capital employed	837.9	731.7	708.5
Equity	463.5	524.8	478.2
Interest-bearing net debt	152.0	91.0	114.5
Net debt/equity ratio, %	32.8	17.3	23.9
Interest cover ratio	–0.6	–0.9	–0.8
Equity/assets ratio, %	31.9	37.4	36.3
Cash flow
Self financing ratio	–5.7	1.0	–0.1
Investments	4.9	16.9	48.9
EBITDA/Net financial items, rolling12 months	3.7	6.2	3.2
Employees
Average number of employees	1,056	1,106	1,104
Net sales per employee	1.1	1.2	1.1

Data per share	January– March 2013	January– March 2012	Full year 2012
Number of shares at the end of the period	8,218,611	8,218,611	8,218,611
Average number of shares	8,218,611	8,218,611	8,218,611
Earnings per share before dilution, SEK	–1.37	–1.76	–5.82
Earnings per share after dilution, SEK	–1.37	–1.76	–5.82
Equity per share, SEK	56.39	63.82	58.19

Net sales per geographical segment

Amounts in SEK million	January–	January–	Full year
	March 2013	March 2012	2012
Sweden	37.4	37.5	161.3
Europe, excluding Sweden	185.3	176.2	738.4
North America	70.6	87.2	318.5
Asia	4.4	21.8	36.7
Total	297.7	322.7	1,254.9

Quarterly review

2011				2012				2013
Q1	Q2	Q3	Q4	Q1	Q2	Q3	Q4	Q1
297.2	290.0	252.8	360.7	322.7	330.3	261.7	340.2	297.7
–288.5	–287.6	–262.9	–308.1	–332.4	–333.3	–289.6	–319.0	–301.6
8.7	2.4	–10.1	52.6	–9.7	–3.0	–27.9	21.2	–3.9
–5.2	–2.1	–3.2	–2.4	–3.0	–3.2	–3.7	–3.9	–4.9
3.5	0.3	–13.3	50.2	–12.7	–6.2	–31.6	17.3	–8.8

Financial data per segment

Amounts in SEK million		United			Global		Elimina
January–March 2013	Sweden	Kingdom	Germany	USA	Services	Other	tions	Group
External sales revenue	35.3	80.9	60.5	47.9	64.2	8.9	–	297.7
Revenue from segment	7.3	–	0.3	–	–	5.0	–12.6	0.0
Operating profit	5.3	4.6	–1.0	–13.6	6.3	–5.5	–	–3.9
Assets	150.3	245.9	165.1	441.3	187.4	479.4	–215.7	1,453.7
Liabilities	169.0	146.3	123.3	297.9	92.4	377.0	–215.7	990.2
Investments	1.7	1.3	0.6	0.2	0.5	0.6	–	4.9
Depreciation/amortization	2.0	1.3	0.6	7.9	2.1	1.9	–	15.8
Average number of employees	100	89	526	102	164	75	–	1,056
		United			Global		Elimina
January–March 2012	Sweden	Kingdom	Germany	USA	Services	Other	tions	Group
External sales revenue	37.4	56.7	76.4	71.7	71.0	9.5	–	322.7
Revenue from segment	3.5	–	0.3	–	0.1	3.1	–7.0	0.0
Operating profit	2.4	2.7	–2.9	–11.5	4.7	–5.1	–	–9.7
Assets	122.1	225.9	217.3	585.4	190.5	299.8	–236.2	1,404.8
Liabilities	139.5	125.7	158.6	385.6	112.9	193.9	–236.2	880.0
Investments	10.7	0.4	0.2	0.1	5.1	0.4	–	16.9
Depreciation/amortization	2.0	1.3	0.6	8.3	1.5	1.8	–	15.5
Average number of employees	95	83	598	104	155	71	–	1,106
		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

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 profit	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

Parent company income statement

Amounts in SEK million		January–	January–	Full year
	Note	March 2013	March 2012	2012
Net sales		3.2	3.0	12.8
Cost of services sold		–0.7	–0.7	–2.6
Gross profit		2.5	2.3	10.2
Other operating costs	1	–10.0	–8.4	–33.9
Operating profit		–7.5	–6.1	–23.7
Dividends from subsidiaries		–	–	–248.6
Financial net		–0.8	0.3	0.7
Profit before tax		–8.3	–5.8	–271.6
Income tax		1.7	1.5	–1.3
Profit for the period		–6.6	–4.3	–272.9

Parent company balance sheet

Amounts in SEK million		March 2013	March 2012	December 2012
	Note
Assets
Property plant and equipment		0.0	0.0	0.0
Financial non-current assets	1	763.5	1,053.2	763.3
Total non-current assets		763.5	1,053.2	763.3
Current assets	1	50.7	36.7	33.7
Liquid assets		156.7	21.7	62.9
Total current assets		207.4	58.4	96.6
Total assets		970.9	1,111.6	859.9
Equity and liabilities
Equity		560.8	844.1	567.3
Provisions		0.5	0.0	0.4
Non-current liabilities		318.8	68.8	169.2
Current liabilities	1	90.8	198.7	123.0
Total liabilities		409.6	267.5	292.2
Total equity and liabilities		970.9	1,111.6	859.9

Note 1

Fair value estimation

The tables below show financial instruments at fair value on the basis of their classification in the fair value hierarchy. The different levels are defined as follows:

Level 1 – Quoted prices (unadjusted) on active markets for identical assets or liabilities.

Level 2 – Other observable market data for the asset or liability other than quoted prices included in level 1, either direct (i.e. as quoted prices) or indirect (i.e. derived from quoted prices).

Level 3 – Data on the asset or liability not based on observable market data (i.e. unobservable inputs).

The Group's assets and liabilities measured at fair value as at March 31, 2013

Assets	Level 1	Level 2	Level 3
Financial assets at fair value through profit or loss
– Unlisted shareholdings	–	–	8,568
– Capital insurance	–	12,400	–
– Commercial paper	–	84,527	–
– Non-current bank deposits	–	7,109	–
Derivatives used for hedging	–	12,878	–
Total assets	–	116,914	8,568
Liabilities
Derivatives used for hedging	–	824	–
Total liabilities	–	824	–

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 profit or loss
– Unlisted shareholdings	–	–	8,287
– Capital insurance	–	12,196	–
– Non-current bank deposits	–	2,729	–
Derivatives used for hedging	–	3,017	–
Total assets	–	17,942	8,287
Liabilities
Derivatives used for hedging	–	2,560	–
Total liabilities	–	2,560	–

No transfers have taken place during the period between the different levels of the fair value hierarchy.

The fair value of financial instruments, traded in active markets, is based on quoted market prices at the balance sheet date. A market is regarded as active if quoted prices from a stock exchange, broker, industrial group, pricing service or supervisory authority are easily and regularly available, and these prices represent actual and regularly occurring market transactions at arm's length. The Group does not currently hold such assets or liabilities.

Fair value of financial instruments not traded on an active market (for example OTC derivatives) is established using valuation techniques. These techniques use market information as far as possible when this is available, while company-specific information is used as little as possible. If all material inputs required for fair value measurement of an instrument are observable the instrument is found at level 2.

In the cases where one or more material inputs are not based on observable market information the instrument concerned is classified at level 3. Specific valuation techniques used to measure financial instruments include:

• Quoted market prices or brokers' quotations for similar instruments.

• The fair value of interest swaps is calculated as the present value of estimated future cash flows based on observable yield curves.

• The fair value of forward exchange contracts is determined using quoted forward exchange rates at the balance sheet date, where the resulting value discounted to present value.

• Other techniques, such as estimating discounted cash flows, are used to determine the fair value of remaining financial instruments.

The Group's policy is to report transfers into and out of levels of the fair value hierarchy as of the date of the event or change in circumstances that caused the transfer. The valuation techniques have not been changed during the period.

Changes for instruments at level 3 in 2013

	Level 3
Opening balance	8,287
Acquisitions of shares	–
Gains recognized in the income statement	281
Closing balance	8,568
Change in unrealized gains and losses for the period included in the income statement (in the items Other operating
income and Other operating liabilities) relating to assets still held at the close of the period	281

The Group's share in holdings of various insurance companies in the nuclear power industry is found at level 3. The value of the Group's share is adjusted once a year and then increases or decreases according to the company's percentage participation in the insurance companies' profit or loss for the previous year. The Group's holding in the insurance companies is denominated in EUR and therefore converted to the valid closing day price each month.

Fair value of the Group's borrowings

	March 31, 2013	December 31, 2012
Non-current loans	322.7	131.0
Current loans	51.8	99.3
Total loans	374.5	230.3

Major shareholders, March 31, 2013

	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
Malte Edenius	230,000	2.8
Invus Investment AB	224,800	2.7
Nordnet Pensionsförsäkring AB	213,497	2.6
Avanza Pensionsförsäkring AB	210,082	2.6
SIX SIS AG	207,885	2.5
Leif Lundin	174,700	2.1
HSBC Trinkahaus and Burkhardt AG	136,530	1.7
Total ten largest shareholders – holdings	4,798,636	58.3
Other shareholders	3,419,975	41.7
Total	8,218,611	100.0

The Studsvik share

In the first quarter the share price varied between a high of SEK 34 on January 11 and a low of SEK 29 on February 21, 2013. The price was SEK 29.40 at the beginning of the year and the closing price on March 31 was SEK 29.10. In the first quarter 0.76 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 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 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).

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