Studsvik — Interim / Quarterly Report 2014

Jul 17, 2014

Interim Report January–June 2014

• • Sales in the quarter were SEK 224.8 (266.5) million. In local currencies sales decreased by 22 per cent.
• • Operating profit for the quarter was SEK 0.1 (13.1) million. Items affecting comparability impact earnings by SEK 0.2 (11.2) million.
• • Cash flow after investments was SEK –26.6 (18.5) million.

	April–June 2014	April–June 2013	January–June 2014	January–June 2013	Full year 2013
Sales, SEK million	224.8	266.5	444.5	517.4	1,001.3
Operating profit, SEK million	0.1	13.1	5.4	20.4	16.0
Profit after tax, SEK million	–5.5	2.2	–3.9	2.1	–22.9
Profit per share after tax, SEK	–0.68	0.28	–0.47	0.26	–2.78
Cash flow after investments, SEK million*	–26.6	18.5	–45.0	–14.1	–44.7
Equity per share, SEK	33.60	56.84	33.60	56.84	34.83
Interest-bearing net debt, SEK million	105.8	134.7	105.8	134.7	155.7
Net debt/equity ratio, %	38.3	28.8	38.3	28.8	54.4

* Refers to total operations.

There is a new organization from January 1, 2014. The report presents operations in accordance with that.

Unless otherwise stated the information in text and figures refers to operations excluding the USA operations sold.

Sales

Sales in the second quarter were SEK 224.8 (266.5) million. In local currencies the sales decrease was 22 per cent for the quarter and 19 per cent for the first half year. The decrease in sales is mainly due to the impact of the major Berkeley Boiler order on income in 2013 and a decrease in software sales. Sales for the first half year amounted to SEK 444.5 (517.4) million.

Profit

Operating profit for the second quarter amounted to SEK 0.1 (13.1) million and SEK 5.4 (20.4) million for the first half year. Items affecting comparability impacted the second quarter earnings by SEK –1.2 (11.2) million and the first half year earnings by 0.2 (11.2) million. Adjusted for these, the operating margin for the second quarter was 0.1 (0.7) per cent and 1.2 (1.8) per cent for the first half year.

Net financial income for the second quarter was SEK –4.1 (–9.5) million and SEK –10.7 (–14.4) million for the first half year. The Group's tax for the second quarter was SEK –1.5 (–1.4) million and SEK 1.4 (–3.9) million for the first half year. Profit/loss after tax for the second quarter was SEK –5.5 (2.2) million and SEK –3.9 (2.1) million for the first half year.

Waste Treatment

In the second quarter sales decreased by 26.1 per cent to SEK 68.4 (92.5) million. In local currencies the decrease was 32 per cent for the quarter and the first half year. Sales were unusually high in 2013 due to the large Berkeley project. Sales for this year also included SEK 11.2 million for the cancelled Bruce Power order received by Studsvik in the second quarter of 2013. Sales for the first half year amounted to SEK 135.2 (185.4) million.

Operating profit in the second quarter decreased to SEK 2.0 (20.6) million and SEK 11.2 (27.8) million for the first half year. Items affecting comparability impacted earnings for the first half year by SEK 0.0 (11.2) million. Adjusted for these, the operating margin for the first half year was 8.3 (9.5) per cent. Within the business area the Swedish operations continue to report a good margin, while the English operations are burdened by continued production disruptions and low prices for the material processed in the first half year.

The order book for metal treatment is sound, while the order book for incineration is impacted negatively by reduced volumes from Germany.

Consultancy Services

In the second quarter sales decreased by 12.2 per cent to SEK 96.8 (110.3) million. In local currencies the decrease was 18 per cent for the quarter and 12 per cent for the first half year. Sales for the first half year amounted to SEK 192.3 (204.7) million. Operating profit for the second quarter amounted to SEK 3.0 (2.8) million and SEK 12.1 (3.9) million for the first half year. Items affecting comparability impacted earnings for the first half year by SEK 3.6 (0.0) million. Adjusted for these, the operating margin for the first half year was 4.4 (1.9) per cent.

The margin was improved by increasing profit shares from UK Nuclear Waste Management, which amounted to SEK 2.8 (3.5) million during the quarter and SEK 7.6 (4.5) million during the year to date. Projects to increase the billed time ratio are in progress in the business area.

Demand for maintenance services in Germany continues to be weak, while the market for engineering services is stable. The work of further developing the USA-based consulting operations is in progress.

Fuel and Materials Technology

In the second quarter sales decreased by 13.7 per cent to SEK 51.1 (59.2) million. In local currencies the decrease was 14 per cent for the quarter and 11 per cent for the first half year. Sales for the first half year amounted to SEK 102.8 (115.6) million. The decrease is related to the sale of software, where continued budget restrictions among customers in the energy sector in Europe and the USA have meant deferred deliveries from Scandpower.

Operating profit for the second quarter amounted to SEK 1.4 (–2.7) million and SEK 0.6 (2.0) million for the first half year. The operating margin was 0.6 (1.8) per cent for the first half year.

In Materials Technology sales are on a level with the previous year. The negative trend of previous years has stopped and the operations now report a positive operating margin, driven by both improved gross margin and reduced overhead expenses. Projects for further cost savings are in progress in the business area.

Investments

The Group's investments in the second quarter were SEK 5.5 (6.6) million and in the first half year SEK 9.9 (11.4) million.

Cash flow

Cash flow from operating activities before working capital changes in the second quarter was SEK –10.4 (13.7) million and SEK –12.9 (9.9) million for the first half year. Working capital increased in the second quarter by SEK 10.7 (–11.3) million and in the first half year by SEK 22.2 (12.6) million partly due to a decrease in the proportion of business involving advance payment. Cash flow after investments in the second quarter was SEK –26.6 (18.5) million and in the first half year SEK –45.0 (–14.1) million. The sale of the American waste management operations gave an additional positive cash flow of SEK 82.9 million in the first quarter of 2014.

Financial position and liquidity

Cash and cash equivalents, including current investments, amounted to SEK 101.7 (230.7) million. Interest-bearing liabilities at the end of the quarter were SEK 207.4 (366.1) million. During the quarter SEK 60 million of a loan to Swedbank was amortized. Net interestbearing debt was SEK 105.8 (134.7) million, which means that the net debt/equity ratio was 38.3 (28.8) per cent. At the close of 2013 the net debt/equity ratio was 54.4 per cent.

Personnel

The average number of employees in the first half year was 910 (1,000). The decrease is mainly attributable to the Consulting Services business area.

Transactions with related parties

During the quarter a dividend of SEK 5.1 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 company sales in the second quarter amounted to SEK 2.9 (3.3) million and in the first half year to 6.4 (6.5) million. The operating profit for the second quarter amounted to SEK –9.9 (–7.3) million and SEK –21.9 (–14.8) million for the first half year. Earnings were reduced by SEK 2.9 million, relating to the organizational change to business areas implemented in the first quarter. Items affecting comparability impacted earnings for the second quarter by SEK –0.4 (0.0) million and earnings for the first half year by SEK –3.0 (0.0) million. Loss after financial items in the second quarter was SEK –11.1 (–13.8) million and SEK –26.4 (–22.1) million for the first half year.

Cash and cash equivalents, including current investments, amounted to SEK 31.7 (145.2) million and interest-bearing debt to SEK 200.0 (269.7) million.

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 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 refer to fluctuations in exchange rates and interest rates.

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 estimated to have arisen.

Outlook

The need for electricity is increasing globally. 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 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 market situation may require further adjustment. The German nuclear power reactors already taken out of operation as well as those to be taken out of operation by 2022 will ultimately be subject to decommissioning. When this process will start is as yet not clear. Decommissioning and demolition of nuclear facilities in other markets are expected to expand in the long term. Studsvik has a strong product portfolio for decommissioning 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, 2013. The new and revised standards and interpretations; IFRS 10 "Consolidated financial statements", IFRS 11 "Joint arrangements", IFRIC 21 "Levies" and IAS 37 "Provisions, contingent liabilities and contingent assets", applicable from January 1, 2014, 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".

The interim report provides a fair review of the Group's and the Parent Company's operations, financial position and performance and describes significant risks and uncertainties faced by the Parent Company and the companies that are part of the Group.

Stockholm, July 17, 2014

Anders Ullberg Anna Karinen Jan Barchan

Lars Engström Peter Gossas Thomas Kinell

Chairman Vice Chairman Board Member

Alf Lindfors Roger Lundström Agneta Nestenborg Board Member Board Member Board Member Employee Representative

Michael Mononen President

Board Member Board Member Board Member Employee Representative

Report of the auditors concerning review of condensed interim financial information (interim report) prepared in accordance with IAS 34 and Chapter 9 of the Annual Accounts Act

Introduction

We have performed a review of the interim report for the Studsvik AB group for the period January 1 to June 30, 2014. The Board of Directors and the President are responsible for the preparation and presentation of this interim financial report in accordance with IAS 34, IFRS and the Annual Accounts Act. Our responsibility is to express a conclusion on this financial report based on our review.

Emphasis and scope of the review

We conducted our review in accordance with the International Standard on Review Engagements ISRE 2410 "Review of Interim Financial Information Performed by the Independent Auditor of the Entity". A review consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review has a different focus and is substantially less in scope than an audit conducted in accordance with ISA and other generally accepted auditing standards. The procedures performed in a review do not enable us to obtain a level of assurance that would make us aware of all significant matters that might be identified in an audit. Therefore, the conclusion that is expressed on the basis of a review does not give the same level of assurance as a conclusion based on an audit.

Conclusion

Based on our review, nothing has come to our attention that causes us to believe that the accompanying interim report does not, in all material respects, accord with IAS 34 and the Annual Accounts Act for the Group and, for the parent company, with the Annual Accounts Act.

Stockholm, July 17, 2014

PricewaterhouseCoopers AB

Lennart Danielsson Authorized Public Accountant

Time schedule for financial information

Interim Report January–September 2014	October 21, 2014
Year-end Report January–December 2014	February 2015

For further information please contact

Michael Mononen, President and Chief Executive Officer, +46 155 22 10 86 or Pål Jarness, Chief Financial Officer, +46 155 22 10 09.

The interim report will be presented at a telephone conference to be held in English, on July 17 at 13.30. 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	April–June 2014	April–June 2013	January–June 2014	January–June	2013 Full year 2013
Net sales	224.8	266.5	444.5	517.4	1,001.3
Cost of services sold	–169.9	–205.6	–335.6	–402.7	–748.4
Gross profit	54.9	60.9	108.9	114.7	252.9
Selling and marketing expenses	–13.1	–11.5	–23.7	–22.2	–43.7
Administrative expenses	–36.6	–35.6	–75.8	–68.4	–142.0
Research and development costs	–6.4	–6.7	–12.6	–13.0	–26.6
Share in non-controlling interest	2.2	3.4	7.2	4.4	7.3
Other operating income	3.7	1.2	6.8	6.4	10.2
Other operating expenses	–4.6	1.4	–5.4	–1.5	–42.1
Operating profit	0.1	13.1	5.4	20.4	16.0
Financial income	–0.3	0.5	0.1	0.6	1.2
Financial expenses	–6.3	–8.2	–10.7	–12.0	–19.7
Fair value gain/loss (realized and unrealized)	2.5	–1.8	–0.1	–3.0	–0.3
Profit after financial items	–4.0	3.6	–5.3	6.0	–2.8
Income tax	–1.5	–1.4	1.4	–3.9	–20.1
Profit/loss for the period from continuing operations	–5.5	2.2	–3.9	2.1	–22.9
Operations for sale
Profit/loss from operations for sale	–5.0	–5.7	–14.4	–16.9	–173.9
Profit/loss for the period	–10.5	–3.5	–18.3	–14.8	–196.8
Other comprehensive income
Items that may later be reversed in the income statement
Translation differences on foreign subsidiaries	10.6	12.7	11.1	3.2	4.6
Cash flow hedges	–2.5	–6.8	–3.4	1.0	0.1
Income tax on items recognized in other comprehensive income	0.5	1.5	0.7	–0.2	0.0
Other comprehensive income for the period, net after tax	8.6	7.4	8.4	4.0	4.7
Total profit/loss and other comprehensive income for the
period	–1.9	3.9	–9.9	–10.8	–192.1
Income for the period attributable to
Parent company's shareholders	–10.5	–3.5	–18.3	–14.8	–196.8
Non-controlling interest	–	–	–	–	–
Total comprehensive income attributable to
Parent company's shareholders	–1.9	3.9	–9.9	–10.8	–192.1
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
Earnings per share before and after dilution
Profit/loss from continuing operations	–0.68	0.28	–0.47	0.26	–2.78
Profit/loss from operations for sale	–0.60	–0.71	–1.76	–2.07	–21.15
Profit/loss for the period	–1.28	–0.43	–2.23	–1.81	–23.93

Group statement of financial position

Amounts in SEK million	June	June	December
	2014	2013	2013
Assets
Goodwill	164.3	307.1	158.8
Other intangible non-current assets	3.5	27.0	4.1
Property, plant and equipment	333.8	443.7	331.4
Financial non-current assets	124.9	130.1	112.7
Total non-current assets	626.5	907.9	607.0
Inventories	1.8	7.0	1.8
Trade receivables	136.5	196.3	151.7
Other current receivables	116.5	127.3	90.8
Other current investments	–	24.8	–
Liquid assets	101.7	205.9	151.4
Total current assets	356.5	561.3	395.7
Assets in disposal group held for sale	–	–	260.7
Total assets	983.0	1,469.2	1,263.4
Equity and liabilities
Equity attributable to parent company's shareholders	276.1	467.1	286.0
Non-controlling interest	0.3	0.3	0.3
Borrowings	203.9	315.6	264.8
Provisions	186.8	229.8	182.1
Other non-current liabilities	39.8	40.5	40.6
Total non-current liabilities	430.5	585.9	487.5
Trade payables	33.0	83.9	43.0
Borrowings	3.5	50.5	42.3
Other current liabilities	239.6	281.5	232.4
Total current liabilities	276.1	415.9	317.7
Liabilities in disposal group held for sale	–	–	171.9
Total equity and liabilities	983.0	1,469.2	1 ,263.4
Pledged assets *	157.0	155.2	148.9
Contingent liabilities	57.9	93.9	89.9

* A collateral deposit of SEK 8.1 million is included in pledges.

Changes in equity

Amounts in SEK million

Amounts in SEK million					Equity
		Other			attributable to the parent	Non
	Share	contributed		Retained	company's	controlling
	capital	capital	Reserves	earnings	shareholders	interest	Total equity
Equity at December 31, 2012	8.2	225.3	–10.8	255.2	477.9	0.3	478.2
Changes January 1 – June 30, 2013
Comprehensive income for the period	–	–	4.0	–14.8	–10.8	0.0	–10.8
Equity at June 30, 2013	8.2	225.3	–6.8	240.4	467.1	0.3	467.4
Changes July 1 – December 31, 2013
Comprehensive income for the period	–	–	0.8	–181.9	–181.1	0.0	–181.1
Equity at December 31, 2013	8.2	225.3	–6.0	58.5	286.0	0.3	286.3
Changes January 1 – June 30, 2014
Comprehensive income for the period	–	–	8.4	–18.3	–9.9	0.3	–9.9
Equity at June 30, 2014	8.2	225.3	2.4	40.2	276.1	0.3	276.4

Statement of cash flow

Amounts in SEK million	April–June	April–June	January–June	January–June
Refers to total operations	2014	2013	2014		2013 Full year 2013
Operating activities
Operating profit	–0.6	7.2	–4.8	3.3	–165.3
Depreciation	8.0	15.7	16.5	31.5	63.5
Adjustment for non-cash items etc.	–6.2	2.7	–9.8	–4.1	89.7
	1.2	25.6	1.9	30.7	–12.1
Financial items. net	–7.4	–7.8	–11.3	–11.4	–18.5
Income tax paid	–4.2	–4.1	–3.5	–9.4	–13.3
Cash flow from operating activities before changes in
working capital	–10.4	13.7	–12.9	9.9	–43.9
Changes in working capital	–10.7	11.3	–22.2	–12.6	19.3
Cash flow from operating activities	–21.1	25.0	–35.1	–2.7	–24.6
Investing activities
Investments	–5.5	–6.5	–9.9	–11.4	–20.1
Cash flow from investing activities	–26.6	18.5	–45.0	–14.1	–44.7
Other changes from investing activities	4.9	10.9	92.7	–29.7	4.8
Cash flow from operating activities after investments and
other changes from investing activities	–21.7	29.4	47.7	–43.8	–39.9
Financing activities
Change in borrowings	–72.2	–13.5	–101.4	133.9	74.5
Dividend to shareholders	–	–	–	–	–
Cash flow from investing activities	–72.2	–13.5	–101.4	133.9	74.5
Changes in liquid assets	–93.9	15.9	–53.7	90.1	34.6
Liquid assets at the beginning of the year	191.5	187.8	151.4	115.8	115.8
Translation difference in liquid assets	4.1	2.2	4.0	0.0	1.0
Liquid assets at the end of the period	101.7	205.9	101.7	205.9	151.4
Cash flow specification
Adjustment for non-cash items etc.
Changes in provisions	–3.0	7.5	–1.7	1.5	6.2
Share in earnings from associated companies	–2.2	–3.4	–7.2	–4.4	–7.3
Impairment loss on property, plant and equipment	0.0	–	0.0	–	24.0
Impairment loss on intangible assets	–	–	–	–	67.6
Other	–1.0	–1.4	–0.9	–1.2	–0.8
Total	–6.2	2.7	–9.8	–4.1	89.7
Other changes from investing activities
Investment in non-current financial asset	0.1	–	–7.6	–	–
Dividend from associated companies	5.1	0.8	6.4	0.8	11.5
Sale of subsidiaries	–	–	93.9	–	–
Deposit of funds	–	–	–	–4.4	–5.3
Sale of non-current assets	–0.1	0.1	0.0	0.4	–1.9
Current investments in commercial paper	–	9.9	–	–24.8	–
Other	–0.2	0.1	–	–1.7	0.5
Total	4.9	10.9	92.7	–29.7	4.8
Change in borrowings
Loans raised	0.0	3.0	0.0	203.9	207.8
Repayments of loans	–72.2	–16.5	–101.4	–70.0	–133.3
Total	–72.2	–13.5	–101.4	133.9	74.5

Financial ratios for the Group

Amounts in SEK million	January–June	January–June
	2014		2013 Full year 2013
Margins
Operating margin, %	1.2	3.9	1.6
Profit margin, %	–1.2	1.2	–0.3
Profitability *
Return on capital employed, %	4.0	6.3	3.5
Return on equity, %	–1.4	6.6	–6.0
Capital structure *
Capital employed	483.8	853.4	504.6
Equity	276.4	467.4	286.3
Interest-bearing net debt	105.8	134.7	155.7
Net debt/equity ratio, %	38.3	28.8	54.4
Interest cover ratio	0.7	1.3	–0.9
Equity/assets ratio, %	28.1	27.6	26.2
Cash flow
Self financing ratio	–3.6	–0.1	0.5
Investments	9.9	11.4	19.9
EBITDA/Net financial items, rolling12 months	2.3	2.6	2.7
Employees
Average number of employees	910	1,000	988
Net sales per employee	1.0	1.0	1.0

* Calculation based on closing balance.

Data per share	April–June	April–June	January–June	January–June
	2014	2013	2014		2013 Full year 2013
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 and after dilution
Profit/loss from continuing operations	–0.68	0.28	–0.47	0.26	–2.78
Profit/loss from operations for sale	–0.60	–0.71	–1.76	–2.07	–21.15
Profit/loss for the period	–1.28	–0.43	–2.23	–1.81	–23.93
Equity per share, SEK, total operations	33.60	56.84	33.60	56.84	34.83

Net sales per geographical segment

Amounts in SEK million	April–June	April–June	January–June	January–June
	2014	2013	2014		2013 Full year 2013
Sweden	57.3	44.5	92.8	81.9	175.9
Europe, excluding Sweden	152.4	189.0	312.9	374.3	713.8
North America – from continuing operations	10.7	27.7	25.4	51.6	98.3
Asia	4.4	5.3	13.4	9.6	13.3
Total	224.8	266.5	444.5	517.4	1,001.3
North America – from operations for sale	–	52.7	–	99.5	214.7
Total	224.8	319.2	444.5	616.9	1,216.0

Quarterly review

Amounts in SEK million	2012				2013				2014
	Q1	Q2	Q3	Q4	Q1	Q2	Q3	Q4	Q1	Q2
Net sales	258.9	274.4	218.5	261.1	250.9	266.5	216.9	266.9	219.7	224.8
Operating expenses	–259.7	–265.0	–224.5	–248.5	–243.6	–253.4	–211.2	–277.0	–214.4	–224.7
Operating profit	–0.8	9.4	–6.0	12.6	7.3	13.1	5.7	–10.1	5.3	0.1
Financial items, net	–3.0	–3.2	–3.8	–3.9	–4.9	–9.5	–0.3	–4.1	–6.6	–4.1
Profit after financial items	–3.8	6.2	–9.8	8.7	2.4	3.6	5.4	–14.2	–1.3	–4.0

Financial data per segment

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

Amounts in SEK million			Fuel and
	Waste	Consultancy	Materials
April–June 2014	Treatment	Services	Technology	Other	Elimination	Group
External sales revenue	68.1	96.5	51.1	9.1	–	224.8
Revenue from segment	0.3	0.3	0.0	3.5	–4.1	0.0
Operating profit	2.0	3.0	1.4	–6.3	–	0.1
Assets	311.4	340.2	173.8	391.0	–233.4	983.0
Liabilities	274.1	282.9	89.4	293.6	–233.4	706.6
Investments	2.7	0.0	0.6	2.2	–	5.5
Depreciation/amortization	3.3	0.5	1.9	2.3	–	8.0
Average number of employees	161	569	121	78	–	929

Fuel and Materials Technology Other Elimination Group	Consultancy Services	Waste Treatment	April–June 2013
58.6 6.6 – 266.5	109.4	91.9	External sales revenue
0.6 4.2 –6.3 0.0	0.9	0.6	Revenue from segment
–2.7 –7.6 – 13.1	2.8	20.6	Operating profit
189.2 483.2 –212.9 1,693.3	920.5	313.3	Assets
89.1 365.6 –212.9 1,197.4	680.3	275.3	Liabilities
1.0 0.7 – 6.6	0.2	4.7	Investments
2.2 1.9 – 8.2	0.9	3.2	Depreciation/amortization
133 75 – 1,001	637	156	Average number of employees

January–June 2014	Waste Treatment	Consultancy Services	Fuel and Materials Technology	Other	Elimination	Group
External sales revenue	134.9	191.1	102.7	15.8	–	444.5
Revenue from segment	0.3	1.2	0.1	8.2	–9.8	0.0
Operating profit	11.2	12.1	0.6	–18.5	–	5.4
Assets	311.4	340.2	173.8	391.0	–233.4	983.0
Liabilities	274.1	282.9	89.4	293.6	–233.4	706.6
Investments	4.8	0.1	2.6	2.4	–	9.9
Depreciation/amortization	7.8	1.1	4.0	3.6	–	16.5
Average number of employees	158	556	122	74	–	910

January–June 2013	Waste Treatment	Consultancy Services	Fuel and Materials Technology	Other	Elimination	Group
External sales revenue	184.0	202.8	115.0	15.6	–	517.4
Revenue from segment	1.4	1.9	0.6	8.3	–12.2	0.0
Operating profit	27.8	3.9	2.0	–13.3	–	20.4
Assets	313.3	920.5	189.2	483.2	–212.9	1,693.3
Liabilities	275.3	680.3	89.1	365.6	–212.9	1,197.4
Investments	7.6	1.0	1.5	1.3	–	11.4
Depreciation/amortization	6.4	2.0	4.3	3.8	–	16.5
Average number of employees	152	640	133	75	–	1,000

Full year 2014	Waste Treatment	Consultancy Services	Fuel and Materials Technology	Other	Elimination	Group
External sales revenue	328.0	408.4	234.2	30.7	–	1,001.3
Revenue from segment	2.8	3.5	0.4	17.0	–23.7	0.0
Operating profit	53.8	–15.0	17.8	–40.6	–	16.0
Assets	332.3	317.1	198.3	441.3	–286.3	1,002.7
Liabilities	272.4	341.6	117.4	360.1	–286.3	805.2
Investments	12.1	1.3	4.2	2.3	–	19.9
Depreciation/amortization	14.0	3.6	8.6	7.6	–	33.8
Average number of employees	155	628	129	76	–	988

Parent company income statement	April-June	April–June	January–June	January–June
Amounts in SEK million	2014	2013	2014		2013 Full year 2013
Net sales	2.9	3.3	6.4	6.5	13.1
Cost of services sold	–0.6	–0.7	–1.2	–1.4	–2.8
Gross profit	2.3	2.6	5.2	5.1	10.3
Other operating costs	–12.2	–9.9	–27.1	–19.9	–49.2
Operating profit	–9.9	–7.3	–21.9	–14.8	–38.9
Dividends from subsidiaries	–	–	–	–	–233.3
Financial net	–1.2	–6.5	–4.5	–7.3	–5.3
Profit before tax	–11.1	–13.8	–26.4	–22.1	–277.5
Income tax	1.9	3.4	5.1	5.1	0.4
Profit for the period	–9.2	–10.4	–21.3	–17.0	–277.1

Parent company balance sheet

Amounts in SEK million	June		December
	2014	2013	2013
Assets
Property plant and equipment	0.0	0.0	0.0
Financial non-current assets	586.8	794.7	608.1
Total non-current assets	586.8	794.7	608.1
Current assets	20.0	41.3	62.0
Liquid assets	31.7	145.2	56.5
Total current assets	51.7	186.5	118.5
Total assets	638.5	981.2	726.6
Equity and liabilities
Equity	269.0	550.3	290.2
Provisions	–0.4	–	0.4
Non-current liabilities	264.5	309.3	310.4
Current liabilities	105.4	121.6	125.6
Total liabilities	369.9	430.9	436.0
Total equity and liabilities	638.5	981.2	726.6

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 definition 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 June 30, 2014	Level 1	Level 2	Level 3
Assets
Financial assets at fair value through profit or loss	–	21,403	10,868
Derivatives used for hedging	–	1,336	–
Liabilities
Derivatives used for hedging	–	3,801	–
The Group's assets and liabilities measured at fair value as at December 31, 2013	Level 1	Level 2	Level 3
Assets
Financial assets at fair value through profit or loss	–	21,747	9,635
Derivatives used for hedging	–	5,555	–
Liabilities
Derivatives used for hedging	–	865	–
Fair value of the Group's borrowings	June 30, 2014		December 31, 2013
Non-current loans	203.9		264.8
Current loans	3.5		42.3
Total loans	207.4		307.1

Major shareholders, June 30, 2014

	Number of shares	Share, %
The Karinen Family	1,769,552	21.5
Briban Invest AB	1,285,492	15.6
Avanza Pensionsförsäkring AB	446,672	5.4
Eikos AB	375,811	4.6
Credit Agricole Suisse SA	346,098	4.2
Malte Edenius	230,000	2.8
Nordnet Pensionsförsäkring AB	218,599	2.7
Leif Lundin	181,100	2.2
Invus Investment AB	174,800	2.1
SIX SIS AG	153,952	1.9
Total ten largest shareholders – holdings	5,182,076	63.0
Other shareholders	3,036,535	37.0
Total	8,218,611	100.0

The Studsvik share

In the second quarter the share price varied between a high of SEK 51.75 on April 22 and a low of SEK 45.20 on May 9, 2014. The opening price was SEK 37.80 at the beginning of the year and the closing price on June 30 was SEK 47.10. In the second quarter 0.59 million shares were traded and in the first half year 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, consultancy services and fuel and materials technology. The company has over 65 years' experience of nuclear technology and radiological services. Studsvik has 900 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