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Studsvik — Interim / Quarterly Report 2017
Jul 21, 2017
3208_ir_2017-07-21_f5c6b542-03b5-41e8-99bb-4f56bdfc35da.pdf
Interim / Quarterly Report
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Interim Report Second Quarter 2017
- Sales in the quarter were SEK 176.6 (176.3) million. In local currencies sales decreased by 2 per cent.
- The operating profit for the quarter amounted to SEK –19.4 (–1.2) million. Items affecting comparability reduced earnings by SEK –1.9 (–5.0) million. The deterioration is mainly due to weak capacity utilization in the German consulting operations and to no new sales of the THOR technology being made.
- Free cash flow for the quarter was SEK –38.9 (–29.2) million.
| April-June | April-June | January | January | Full year | |
|---|---|---|---|---|---|
| 2017 | 2016 | June 2017 | June 2016 | 2016 | |
| Sales, SEK million | 176.6 | 176.3 | 356.2 | 347.9 | 758.8 |
| Operating profit, SEK million | –19.4 | –1.2 | –21.4 | 9.5 | 24.7 |
| Profit after tax, SEK million | –24.0 | 1.7 | –32.5 | 7.6 | 17.0 |
| Free cash flow, SEK million* | –38.9 | –29.2 | –43.1 | –31.3 | 129.6 |
| Net debt, SEK million | 58.3 | 174.3 | 58.3 | 174.3 | 2.9 |
| Net debt/equity ratio, % | 18.9 | 65.0 | 18.9 | 65.0 | 0.8 |
| Profit per share after tax, SEK | –2.91 | 0.20 | –3.95 | 0.92 | 2.07 |
| Equity per share, SEK* | 37.52 | 32.62 | 37.52 | 32.62 | 42.41 |
*Refers to total operations
Unless otherwise stated, the information for 2016 in text and figures refers to operations excluding Waste Treatment, which was sold in 2016.
Sales
Sales in the quarter were unchanged at SEK 176.6 (176.3) million. Sales for the half year increased to SEK 356.2 (347.9) million. In local currencies the decrease was 2 per cent for the quarter, while for the half year there was a 1 per cent increase. Sales in the Consultancy Services business area decreased, while sales in Fuel and Materials Technology and Studsvik Scandpower were on a level with the previous year.
Profit
Operating profit for the quarter decreased to SEK –19.4 (–1.2) million and during the half year to SEK –21.4 (9.5) million. Items affecting comparability referring to staff cutbacks in the consulting operations and in administration reduced earnings in the second quarter by SEK –1.9 (–5.0) million and in the half year by SEK –6.1 (–5.0) million. Adjusted for items affecting comparability, the operating margin for the second quarter deteriorated to –9.9 (2.1) per cent and for the half year to –4.3 (4.2) per cent. The deterioration is mainly due to weak capacity utilization in the German consulting operations and to the fact that no new sales of the THOR technology were made in the first half year. Net financial income for the quarter was SEK –7.8 (–1.7) million and SEK –15.2 (–10.4) million for the half year. Profit after tax was SEK –24.0 (1.7) million for the quarter and SEK –32.5 (7.6) million for the half year.
Fuel and Materials Technology
Sales decreased somewhat in the second quarter to SEK 52.2 (54.1) million. During the year sales increased to SEK 104.7 (97.6) million. In local currencies the decrease was 4 per cent for the quarter, while for the half year there was a 7 per cent increase.
The operating profit for the second quarter amounted to SEK 4.9 (10.9) million and SEK 10.7 (18.9) million for the half year. The operating margin for the quarter was 9.4 (20.1) per cent and for the half year 10.2 (19.4) per cent. The operating margin for the quarter is negatively impacted by higher selling expenses, deferment of a major contract and operational disruptions when aligning new equipment. The order book for the second half year is good and production is again running normally.
Consultancy Services
Sales in the second quarter decreased to SEK 98.8 (105.6) million and in the half year to SEK 202.2 (215.2) million. In local currencies the decrease was 9 per cent for the quarter and 8 per cent for the half year.
The operating profit for the second quarter amounted to SEK –11.6 (–0.5) million and SEK –10.0 (11.7) million for the half year. Items affecting comparability referring to staff cutbacks in Germany reduced the second quarter profit by SEK 1.1 (3.7) million and the half year profit by SEK 2.5 (3.7) million. Adjusted for these, the operating margin for the second quarter was –10.6 (3.0) per cent and –3.7 (7.2) per cent for the half year. Low capacity utilization in Industrial Services (Germany) and weak profitability in Waste Management (Sweden) led to a deterioration in earnings for the second quarter. The first quarter of 2016 includes royalties of SEK 18.6 million related to THOR. Adjusted for this, earnings for the first half year in the underlying operations decreased by SEK 3 million, mainly driven by a weak second quarter for operations in Germany.
Measures to improve profitability in Waste Management are being taken, while alternative strategies for operations in Germany are being evaluated. There continues to be great interest in Studsvik's waste treatment technologies and associated engineering services. A number of interesting projects are currently being discussed.
Studsvik Scandpower
Sales in the second quarter were unchanged at SEK 17.1 (17.1) million and in the half year SEK 36.8 (35.1) million. In local currencies there was a decrease of 3 per cent for the quarter. For the half year sales in local currencies increased by 1 per cent.
The operating profit for the quarter improved to SEK –3.5 (–5.2) million and SEK –7.1 (–7.9) million for the half year.
The process of obtaining export licenses from the American authorities for software ordered for China is continuing, but it is still not clear when the American authorities may grant them.
Demand for software is good but the sales process generally takes longer than before.
Investments
Investments for the continuing operations in the second quarter were SEK 7.3 (2.8) million and in the first half year SEK 12.4 (7.0) million. The investments mainly refer to equipment for testing and infrastructure for the Studsvik facility.
Cash flow
Cash flow from operating activities in the second quarter was SEK –36.4 (–31.2) million and SEK –38.0 (–29.5) million for the half year. The free cash flow amounted to SEK –38.9 (–29.2) million for the second quarter and for the half year to SEK –43.1 (–31.3) million.
Financial position and liquidity
Cash and cash equivalents for the total operations at the close of the quarter were SEK 140.8 (123.2) million. Net interestbearing debt was SEK 58.3 (174.3) million, which means that the net debt/equity ratio was 18.9 (65.0) per cent. At the close of 2016 the net debt/equity ratio was 0.8 per cent.
Personnel
The average number of employees as at 30 June was 654 (707). The decrease refers to fewer employees in the consulting operations in Germany and England. At the start of the year the number of employees was 687.
Transactions with related parties
During the quarter a dividend of SEK 4.8 (4.0) million was received from UK Nuclear Waste Management Ltd.
Parent company
Operations in the parent company consist of coordination of the Group. Parent company sales in the quarter amounted to SEK 4.9 (4.2) million and to SEK 10.1 (8.9) million in the half year. The operating profit for the quarter amounted to SEK –5.6 (–4.7) million and SEK –10.1 (–11.0) million for the half year. Loss after financial items in the quarter was SEK –11.2 (–3.2) million and for the half year SEK –19.6 (–15.2) million.
Cash and cash equivalents including current investments amounted to SEK 32.1 (24.7) million and interest-bearing liabilities to SEK 200 (300) million. The final settlement with EDF for the sale of the Waste Treatment business area is expected to be completed by the end of the year.
Risks and uncertainties
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 deemed to have arisen.
Accounting policies
The half-yearly report has been prepared in accordance with IAS 34 and the Annual Accounts Act. The consolidated accounts for the Studsvik Group have been prepared in accordance with the Annual Accounts Act, the Swedish Financial Reporting Board recommendation RFR 1, Supplementary accounting rules for groups, International Financial Reporting Standards (IFRS) and interpretations by the IFRS Interpretations Committee (IFRIC) as adopted by the EU. There is a description of these accounting policies in the annual report. The consolidated accounts have been prepared in accordance with the historical cost method, except as regards financial assets and liabilities carried at fair value through profit or loss.
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 financial information on pages 5-14 forms an integral part of this financial report.
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. No significant events have occurred after the balance sheet date.
Stockholm, July 21, 2017
Anders Ullberg Anna Karinen Jan Barchan Chairman Vice Chairman Board Member
Board Member Board Member Board Member
Michael Mononen President
Peter Gossas Alf Lindfors Agneta Nestenborg
Lena Sivars Becker Roger Lundström Board Member Board Member Employee Representative 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 reviewed the condensed interim financial information (interim report) for Studsvik AB as at June 30 2017 and the six-month period then ended. The Board of Directors and the President are responsible for the preparation and presentation of this interim financial report in accordance with IAS 34 and the Annual Accounts Act. Our responsibility is to express a conclusion on this interim report based on our review.
Focus 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 International Standards on Auditing (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 interim report is not prepared, in all material respects, in accordance with IAS 34 and the Annual Accounts Act for the Group and, for the Parent Company, with the Annual Accounts Act.
Stockholm, July 21, 2017 PricewaterhouseCoopers
Martin Johansson Authorized public accountant
Time Schedule for Financial Information
Interim report January-September 2017 October 20, 2017 Year-end Report January–December 2017 February 2018
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 21 at 1.30 pm. Further information for those interested in participating is available at www. studsvik.com.
Consolidated statement of profit or loss and other comprehensive income
Amounts in SEK million
| April-June 2017 |
April-June 2016 |
January June 2016 |
January June 2016 |
Full year 2016 |
|
|---|---|---|---|---|---|
| Net sales | 176.6 | 176.3 | 356.2 | 347.9 | 758.8 |
| Cost of services sold* | –148.8 | –130.9 | –277.3 | –252.6 | –535.3 |
| Gross profit | 27.8 | 45.4 | 78.9 | 95.3 | 223.5 |
| Selling and marketing expenses | –12.5 | –11.8 | –23.3 | –21.6 | –44.4 |
| Administrative expenses* | –28.7 | –27.2 | –59.5 | –52.1 | –112.8 |
| Research and development costs | –6.6 | –7.3 | –13.9 | –13.3 | –27.5 |
| Share in earnings from associated companies | 3.1 | 2.0 | 4.7 | 5.3 | 4.1 |
| Other operating income | 0.6 | 4.5 | 0.9 | 5.8 | 8.2 |
| Other operating expenses | –3.1 | –6.8 | –9.2 | –9.9 | –26.4 |
| Operating profit | –19.4 | –1.2 | –21.4 | 9.5 | 24.7 |
| Financial income | 0.8 | 0.0 | 0.8 | 0.0 | 0.1 |
| Financial expenses | –3.9 | –6.2 | –8.0 | –10.4 | –25.0 |
| Fair value gain/loss (realized and unrealized) | –4.7 | 4.5 | –8.0 | 0.0 | 8.5 |
| Profit/loss before tax | –27.2 | –2.9 | –36.6 | –0.9 | 8.3 |
| Income tax | 3.2 | 4.6 | 4.1 | 8.5 | 8.7 |
| Profit/loss for the period from continuing operations | –24.0 | 1.7 | –32.5 | 7.6 | 17.0 |
| Operations held for sale Note 1 |
|||||
| Profit/loss for the period from operations held for sale | –0.0 | –18.6 | 0.0 | –31.1 | 46.0 |
| NET PROFIT/LOSS FOR THE PERIOD | –24.0 | –16.9 | –32.5 | –23.5 | 63.0 |
| Other comprehensive income | |||||
| Items that may later be reversed in the income statement | |||||
| Translation differences on foreign subsidiaries | –2.0 | 0.1 | –1.8 | –8.5 | –13.5 |
| Cash flow hedging | 2.4 | –0.5 | 3.0 | 2.3 | 0.8 |
| Income tax on items recognized in other comprehensive income | –0.5 | 0.1 | –0.6 | –0.5 | –0.2 |
| Other comprehensive income for the period, net after tax | –0.1 | –0.3 | 0.6 | –6.7 | –12.9 |
| Total profit/loss and other comprehensive income for the period |
–24.1 | –17.2 | –31.8 | –30.2 | 50.1 |
| Income for the period attributable to | |||||
| Parent company's shareholders | –24.0 | –16.9 | –32.5 | –23.5 | 63.0 |
| Non-controlling interests | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 |
| Total comprehensive income attributable to | |||||
| Parent company's shareholders | –24.0 | –17.2 | –31.7 | –30.2 | 50.0 |
| Non-controlling interests | –0.1 | 0.0 | –0.1 | 0.0 | 0.1 |
| Earnings per share calculated on income attributable to the parent company's shareholders during the period, SEK |
|||||
| Earnings per share (There is no dilution effect) | |||||
| Profit/loss from continuing operations | –2.91 | 0.20 | –3.95 | 0.92 | 2.07 |
| Profit/loss from operations for sale | 0.00 | –2.26 | 0.00 | –3.78 | 5.60 |
| NET PROFIT/LOSS FOR THE PERIOD | –2.91 | –2.06 | –3.95 | –2.86 | 7.67 |
*A reclassification has been made between types of expense in 2016 to achieve comparability for 2017. Administrative expenses for the quarter has been decreased by SEK 4.9 million, while costs of services sold haas been increased by SEK 4.9 million. Accumulated administrative expenses has been decreased by SEK 9.8 million, while costs of services sold has been increased by SEK 9.8 million.
Group statement of financial position
| Amounts in SEK million | June 2017 |
March 2016 |
December 2016 |
|---|---|---|---|
| ASSETS | |||
| Intangible assets | 175.7 | 174.9 | 178.0 |
| Property, plant and equipment | 116.8 | 113.0 | 113.3 |
| Other non-current assets | 150.5 | 110.8 | 155.8 |
| Total non-current assets | 443.0 | 398.7 | 447.1 |
| Inventories | 2.2 | 2.5 | 2.0 |
| Trade receivables | 147.1 | 129.0 | 150.8 |
| Other current receivables | 128.7 | 76.4 | 105.7 |
| Cash and cash equivalents | 140.8 | 123.2 | 195.4 |
| Total current assets | 418.8 | 331.1 | 453.9 |
| Assets in disposal group held for sale Note 1 |
0.0 | 291.3 | 0.0 |
| TOTAL ASSETS | 861.8 | 1,021.1 | 901.0 |
| EQUITY AND LIABILITIES | |||
| Equity attributable to parent company's shareholders | 308.1 | 267.7 | 348.1 |
| Non-controlling interests | 0.3 | 0.3 | 0.4 |
| Total equity | 308.4 | 268.0 | 348.5 |
| Borrowing | 199.1 | 297.5 | 198.2 |
| Provisions and other non-current liabilities | 158.4 | 129.9 | 161.7 |
| Total non-current liabilities | 357.5 | 427.4 | 359.9 |
| Trade and other payables | 195.9 | 127.9 | 192.6 |
| Borrowing | 0.0 | 0.0 | 0.0 |
| Total current liabilities | 195.9 | 127.9 | 192.6 |
| Liabilities in disposal group held for sale Note 1 |
0.0 | 197.8 | 0.0 |
| TOTAL EQUITY AND LIABILITIES | 861.8 | 1,021.1 | 901.0 |
| Pledged assets | 238.4 | 148.9 | 238.4 |
| Contingent liabilities | 69.7 | 84.3 | 71.7 |
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, 2015 | 8.2 | 225.3 | 15.5 | 49.0 | 297.9 | 0.3 | 298.3 |
| Changes January 1 – June 30, 2016 | |||||||
| Comprehensive income for the period | – | – | –6.7 | –23.5 | –30.2 | – | –30.2 |
| Equity at June 30, 2016 | 8.2 | 225.3 | 8.8 | 25.5 | 267.7 | 0.3 | 268.1 |
| Changes July 1 – December 31, 2016 | |||||||
| Comprehensive income for the period | – | – | –6.2 | 86.5 | 80.4 | 0.1 | 80.4 |
| Equity at December 31, 2016 | 8.2 | 225.3 | 2.6 | 112.0 | 348.1 | 0.4 | 348.5 |
| Changes January 1 – June 30, 2017 | |||||||
| Dividend | – | – | – | –8.2 | –8.2 | – | –8.2 |
| Comprehensive income for the period | – | – | 0.6 | –32.5 | –31.8 | –0.1 | –31.9 |
| Equity at June 30, 2017 | 8.2 | 225.3 | 3.2 | 71.3 | 308.1 | 0.3 | 308.4 |
Group statement of cash flow
Amounts in SEK million
| April-June | April-June | January-June | January-June | Full year | |
|---|---|---|---|---|---|
| Total operations | 2017 | 2016 | 2017 | 2016 | 2016 |
| Cash flow from operating activities | |||||
| Operating profit | –19.4 | –19.9 | –21.4 | –21.6 | 70.0 |
| Adjustment for non-cash items | –0.9 | 9.0 | 1,8 | 15.1 | –43.7 |
| Financial items, net | –2.6 | –6.1 | –6.7 | –10.4 | –25.4 |
| Income tax paid | –6.1 | –0.9 | –6.6 | –6.0 | –8.3 |
| Cash flow from operating activities before change in working capital |
–29.0 | –17.9 | –32.9 | –22.9 | –7.4 |
| Change in working capital | –7.4 | –13.3 | –5.1 | –6.6 | –48.8 |
| Cash flow from operating activities | –36.4 | –31.2 | –38.0 | –29.5 | –56.1 |
| Investing activities | |||||
| Acquisition of property, plant and equipment | –7.3 | –2.2 | –12.4 | –10.0 | –18.5 |
| Acquisition in associated companies | – | – | – | 0.0 | –12.1 |
| Divestment of subsidiaries | – | – | – | – | 206.1 |
| Dividend from associated companies | 4.8 | 4.0 | 7.3 | 7.0 | 9.7 |
| Other cash flow from investing activities | 0.0 | 0.2 | 0.0 | 1.2 | 0.5 |
| Cash flow from investment activities | –2.5 | 2.0 | –5.1 | –1.8 | 185.7 |
| Free cash flow | –38.9 | –29.2 | –43.1 | –31.3 | 129.6 |
| Financing activities | |||||
| Change in borrowing | – | – | – | 89.3 | –10.7 |
| Dividend to shareholders | –8.2 | – | –8.2 | – | – |
| Cash flow from financing activities | –8.2 | – | –8.2 | 89.3 | –10.7 |
| Changes in cash and cash equivalents | –47.1 | –29.2 | –51.3 | 58.0 | 118.9 |
| Cash and cash equivalents at the beginning of the period | 190.3 | 161.7 | 195.4 | 74.9 | 74.9 |
| Translation difference | –2.4 | 0.9 | –3.3 | 0.5 | 1.6 |
| Cash and cash equivalents at the end of the period | 140.8 | 133.4 | 140.8 | 133.4 | 195.4 |
Financial ratios for the Group
| Amounts in SEK million | January | January | Full year |
|---|---|---|---|
| June 2017 | June 2016 | 2016 | |
| Margins | |||
| Operating margin, % | –6.0 | 2.7 | 3.2 |
| Profit margin, % | –10.3 | –0.3 | 1.1 |
| Return on investment | |||
| Return on capital employed, % | –3.8 | 2.2 | 7.3 |
| Return on equity, % | –9.9 | 2.7 | 5.3 |
| Capital structure | |||
| Capital employed | 507.5 | 472.0 | 546.7 |
| Equity | 308.4 | 268.0 | 348.5 |
| Net debt | 58.3 | 174.3 | 2.9 |
| Net debt/equity ratio, % | 18.9 | 65.0 | 0.8 |
| Equity/assets ratio, % | 35.8 | 26.2 | 38.7 |
| Employees | |||
| Average number of employees | 654 | 707 | 687 |
| Net sales per employee | 1.1 | 1.0 | 1.1 |
| Data per share | |||||
|---|---|---|---|---|---|
| April-June | April-June | January-June | January-June | Full year | |
| 2017 | 2016 | 2017 | 2016 | 2016 | |
| 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 | –2.91 | 0.20 | –3.95 | 0.92 | 2.07 |
| Profit/loss from operations held for sale | 0.00 | –2.26 | 0.00 | –3.78 | 5.60 |
| Profit/loss for the period | –2.91 | –2.06 | –3.95 | –2.86 | 7.67 |
| Equity per share, SEK | 37.52 | 32.62 | 37.52 | 32.62 | 42.41 |
Net sales per geographical area
Amounts in SEK million
| April-June | April-June | January-June | January-June | Full year | |
|---|---|---|---|---|---|
| 2017 | 2016 | 2017 | 2016 | 2016 | |
| Sweden - from continuing operations | 54.3 | 45.9 | 91.9 | 76.0 | 180.4 |
| Europe, excluding Sweden - from continuing operations | 101.1 | 107.8 | 215.2 | 207.1 | 424.9 |
| North America | 17.4 | 18.9 | 35.6 | 56.7 | 101.5 |
| Asia | 3.6 | 3.7 | 13.3 | 8.1 | 30.6 |
| Other | 0.2 | – | 0.2 | – | 21.4 |
| Total | 176.6 | 176.3 | 356.2 | 347.9 | 758.8 |
| Sweden - operations held for sale | 0.0 | 6.6 | 0.0 | 17.3 | 18.3 |
| Europe - excluding Sweden – from operations to sale | 0.0 | 22.6 | 0.0 | 49.0 | 53.1 |
| Total operations | 176.6 | 205.5 | 356.2 | 414.2 | 830.2 |
Quarterly review
| Amounts in SEK million | 2015 | 2016 | 2017 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|
| Continuing operations | Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | Q3 | Q4 | Q1 | Q2 |
| Net sales | 156.8 | 177.7 | 189.8 | 197.0 | 171.6 | 176.3 | 164.6 | 246.3 | 179.6 | 176.6 |
| Operating expenses | –158.5 | –176.9 | –163.7 | –185.7 | –160.9 | –177.5 | –176.5 | –219.3 | –181.6 | –196.0 |
| Operating profit | –1.7 | 0.8 | 26.1 | 11.3 | 10.7 | –1.2 | –11.9 | 27.0 | –2.0 | –19.4 |
| Financial items, net | –1.9 | –4.4 | –5.4 | –5.9 | –8.7 | –1.7 | –2.5 | –3.4 | –7.4 | –7.8 |
| Profit/loss after financial | –3.6 | –3.6 | 20.7 | 5.4 | 2.1 | –2.9 | –14.4 | 23.6 | –9.4 | –27.2 |
| items |
8
Financial data per segment
| Amounts in SEK million Total operations |
Waste | Consultancy | Fuel and Materials |
Studsvik | |||
|---|---|---|---|---|---|---|---|
| January-June 2017 | Treatment* | Services | Technology | Scandpower | Other | Elimination | Group |
| External sales revenue | – | 98.6 | 50.6 | 15.0 | 12.4 | – | 176.6 |
| Revenue from segment | – | 0.2 | 1.6 | 2.1 | 6.5 | –10.4 | 0.0 |
| Operating profit | – | –11.6 | 4.9 | –3.5 | –9.2 | – | –19.4 |
| Items affecting comparability | – | 1.1 | 0.0 | 0.0 | 0.8 | – | 1.9 |
| Adjusted operating profit | – | –10.5 | 4.9 | –3.5 | –8.4 | – | –17.5 |
| Assets | – | 391.4 | 177.5 | 110.4 | 457.0 | –274.5 | 861.8 |
| Liabilities | – | 339.2 | 144.6 | 34.3 | 309.8 | –274.5 | 553.4 |
| Investments | – | 0.6 | 4.9 | 0.1 | 1.7 | – | 7.3 |
| Depreciation/amortization | – | 0.6 | 2.3 | 0.2 | 1.1 | – | 4.2 |
| Average number of employees | – | 492 | 99 | 34 | 39 | – | 664 |
| Fuel and | |||||||
| Waste | Consultancy | Materials | Studsvik | ||||
| January-June 2016 | Treatment* | Services | Technology | Scandpower | Other | Elimination | Group |
| External sales revenue | – | 101.0 | 52.0 | 17.4 | 5.9 | – | 176.3 |
| Revenue from segment | – | 4.6 | 2.1 | –0.3 | 10.2 | –16.6 | 0.0 |
| Operating profit | – | –0.5 | 10.9 | –5.2 | –6.4 | – | –1.2 |
| Items affecting comparability | – | 3.7 | – | – | 1.3 | – | 5.0 |
| Adjusted operating profit | – | 3.2 | 10.9 | –5.2 | –5.1 | – | 3.8 |
| Assets | 267.5 | 411.1 | 150.0 | 111.9 | 382.5 | –301.9 | 1,021.1 |
| Liabilities | 182.6 | 336.7 | 85.4 | 30.9 | 419.4 | –301.9 | 753.0 |
| Investments | – | 0.3 | 2.5 | –0.1 | 0.1 | 0,0 | 2.8 |
| Depreciation/amortization | – | 0.7 | 1.7 | 0.2 | 1.5 | – | 4.1 |
| Average number of employees | – | 525 | 93 | 32 | 52 | – | 702 |
| Fuel and | |||||||
| April-June 2017 | Waste Treatment* |
Consultancy Services |
Materials Technology |
Studsvik Scandpower |
Other | Elimination | Group |
| External sales revenue | – | 198.9 | 101.8 | 32.9 | 22.6 | – | 356.2 |
| Revenue from segment | – | 3.3 | 2.9 | 3.9 | 13.2 | –23.3 | |
| Operating profit | – | –10.0 | 10.7 | –7.1 | –15.0 | – | –21.4 |
| Items affecting comparability | – | 2.5 | 0.3 | 3.3 | – | 6.1 | |
| Adjusted operating profit | |||||||
| Assets | – | –7.5 | 11.0 | –7.1 | –11.7 | – | –15.3 |
| – | 391.4 | 177.5 | 110.4 | 457.0 | –274.5 | 861.8 | |
| Liabilities | – | 339.2 | 144.6 | 34.3 | 309.8 | –274.5 | 553.4 |
| Investments | – | 1.6 | 9.0 | 0.1 | 1.7 | – | 12.4 |
| Depreciation/amortization | – | 1.1 | 4.7 | 0.4 | 2.0 | – | 8.2 |
| Average number of employees | – | 480 | 100 | 34 | 40 | – | 654 |
| Waste | Consultancy | Fuel and Materials |
Studsvik | ||||
| April-June 2016 | Treatment* | Services | Technology | Scandpower | Other | Elimination | Group |
| External sales revenue | – | 207.6 | 94.9 | 32.0 | 13.4 | – | 347.9 |
| Revenue from segment | – | 7.6 | 2.7 | 3.1 | 14.9 | –28.3 | 0.0 |
| Operating profit | – | 11.7 | 18.9 | –7.9 | –13.2 | – | 9.5 |
| Items affecting comparability | – | 3.7 | – | – | 1.3 | – | 5.0 |
| Adjusted operating profit | – | 15.4 | 18.9 | –7.9 | –11.9 | – | 14.5 |
| Assets | 267.5 | 411.1 | 150.0 | 111.9 | 382.5 | –301.9 | 1,021.1 |
| Liabilities | 182.6 | 336.7 | 85.4 | 30.9 | 419.4 | –301.9 | 753.0 |
| Investments | – | 1.3 | 5.0 | 0.0 | 0.7 | – | 7.0 |
| Depreciation/amortization | – | 1.3 | 3.5 | 0.4 | 3.5 | – | 8.7 |
| Average number of employees | – | 526 | 92 | 34 | 55 | – | 707 |
| Fuel and | |||||||
| Full Year 2016 | Waste Treatment* |
Consultancy Services |
Materials Technology |
Studsvik Scandpower |
Other | Elimination | Group |
| External sales revenue | – | 435.1 | 193.7 | 86.2 | 43.8 | – | 758.8 |
| Revenue from segment | – | 13.3 | 2.6 | 10.1 | 28.1 | –54.1 | 0.0 |
| Operating profit | – | 14.0 | 29.7 | 2.8 | –21.9 | 0.0 | 24.7 |
| Items affecting comparability | – | –13.4 | –0.8 | – | –2.9 | – | 17.0 |
| Adjusted operating profit | – | 27.4 | 30.5 | 2.8 | –19.0 | – | 41.7 |
| Assets | – | 425.1 | 167.8 | 110.1 | 487.4 | –289.4 | 901.0 |
| Liabilities | – | 353.1 | 142.8 | 28.3 | 317.7 | –289.4 | 552.6 |
| Investments | – | 2.4 | 11.7 | 0.1 | 1.1 | – | 15.3 |
| Depreciation/amortization | – | 2.9 | 7.5 | 0.8 | 6.4 | – | 17.6 |
| Average number of employees | – | 523 | 93 | 34 | 37 | – | 687 |
*Operations held for sale. For more information, please see Note 1.
Interim Report Second Quarter 2017
Parent company income statement
| April-June | April-June | January-June | January-June | Full year | |
|---|---|---|---|---|---|
| Amounts in SEK million | 2017 | 2016 | 2017 | 20156 | 2016 |
| Net sales | 4.9 | 4.2 | 10.1 | 8.9 | 22.5 |
| Cost of services sold | –0.2 | –0.7 | –0.9 | –1.4 | –2.8 |
| Gross profit | 4.7 | 3.5 | 9.2 | 7.5 | 19.7 |
| Other operating income and costs | –10.3 | –8.2 | –19.3 | –18.5 | –36.0 |
| Operating profit | –5.6 | –4.7 | –10.1 | –11.0 | –16.3 |
| Result from participations in Group companies | – | – | – | – | 14.3 |
| Net financial items | –5.6 | 1.5 | –9.5 | –4.2 | –6.2 |
| Profit/loss before tax | –11.2 | –3.2 | –19.6 | –15.2 | –8.2 |
| Income tax | 2.5 | 0.7 | 4.3 | 3.4 | 4.1 |
| NET PROFIT/LOSS FOR THE PERIOD | –8.7 | –2.5 | –15.3 | –11.8 | –4.1 |
Parent company balance sheet
| Amounts in SEK million | June | June | Decemberr |
|---|---|---|---|
| 2017 | 2016 | 2016 | |
| ASSETS | |||
| Intangible assets | 2.2 | 2.9 | 2.6 |
| Property, plant and equipment | – | – | 0.0 |
| Financial non-current assets | 640.3 | 626.3 | 652.9 |
| Total non-current assets | 642.5 | 629.2 | 655.5 |
| Current assets | 26.5 | 61.5 | 24.1 |
| Cash and cash equivalents | 32.1 | 24.7 | 43.9 |
| Total current assets | 58.6 | 86.2 | 68.0 |
| TOTAL ASSETS | 701.1 | 715.4 | 723.5 |
| EQUITY AND LIABILITIES | |||
| Equity | 263.3 | 279.1 | 286.8 |
| Provisions | – | – | – |
| Non-current liabilities | 266.5 | 382.1 | 267.0 |
| Current liabilities | 171.3 | 54.2 | 169.7 |
| Total liabilities | 437.8 | 436.3 | 436.7 |
| TOTAL EQUITY AND LIABILITIES | 701.1 | 715.4 | 723.5 |
| Pledged assets | 223.4 | 133.9 | 223.4 |
| Contingent liabilities | 3.5 | 5.3 | 5.3 |
Note 1 Operations held for sale
Assets and liabilities referring to the Waste Treatment business area have been
| accounted for as held for sale. Amounts in SEK million |
April-June 2017 |
April-June 2016 |
January-June 2017 |
January-June 2016 |
Full year 2016 |
|---|---|---|---|---|---|
| Cash flow from operating activities | – | –12.8 | – | –9.9 | –47.3 |
| Cash flow from investing activities | – | 0.6 | – | –3.0 | –3.0 |
| Cash flow from financing activities | – | –0.5 | – | –1.1 | –1.6 |
| Total cash flow | – | –12.7 | – | –14.0 | –51.9 |
| Assets in operations held for sale | |||||
| Property, plant and equipment | – | – | – | 220.3 | – |
| Intangible assets | – | – | – | 7.2 | – |
| Financial assets | – | – | – | 17.9 | – |
| Current assets | – | – | – | 45.9 | – |
| Total assets | – | – | – | 291.3 | – |
| Liabilities in operations held for sale | |||||
| Trade and other payables | – | – | – | 84.2 | – |
| Non-current liabilities | – | – | – | 23.1 | – |
| Provisions | – | – | – | 90.5 | – |
| Total liabilities | – | – | – | 197.8 | – |
| Analysis of profit/loss from operations held for sale | |||||
| Income | – | 29.2 | – | 66.3 | 71.6 |
| Costs | – | –47.9 | – | –97.4 | –134.0 |
| Profit/loss from operations held for sale – before tax | – | –18.7 | – | –31.1 | –62.4 |
| Profit from operations held for sale | – | – | – | 107.1 | |
| Income tax | – | – | – | 1.3 | |
| Profit/loss from operations held for sale – after tax | – | –18.7 | – | –31.1 | 46.0 |
Note 2 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 tables below refer to total operations.
| The Group's assets and liabilities measured at fair value as at June 30, 2017 (MSEK) | Level 1 | Level 2 | Level 3 |
|---|---|---|---|
| Assets | |||
| Financial assets at fair value through profit or loss | 17.1 | 12.8 | |
| Derivatives used for hedging | 3.4 | ||
| Liabilities | |||
| Derivatives used for hedging | 3.9 | ||
| The Group's assets and liabilities measured at fair value as at December 31, 2016 (MSEK) | Level 1 | Level 2 | Level 3 |
| Assets | |||
| Financial assets at fair value through profit or loss | 17.7 | 12.3 | |
| Derivatives used for hedging | 2.2 | ||
| Liabilities | |||
| Derivatives used for hedging | 5.9 | ||
| Fair value of the Group's borrowings (MSEK) | June 30, 2017 | December 31, 2016 | |
| Non-current loans | 199.1 | 198.2 | |
| Current loans | 0.0 | 0.0 | |
| Total loans | 199.1 | 198.2 |
Reconciliations of key ratio
Return on capital employed
| June | June | Full year | |
|---|---|---|---|
| Amounts in SEK million | 2017 | 2016 | 2016 |
| Profit/loss after financial items | –36.6 | –0.9 | 8.3 |
| Financial costs according to the income statement | 8.0 | 10.4 | 25.0 |
| Fair value - foreign exchange losses | 8.5 | 0.0 | 0.5 |
| Total | –20.1 | 9.5 | 33.8 |
| Balance sheet total | 901.0 | 711.6 | 686.6 |
| Provisions and other long-term liabilities | –161.7 | –84.0 | –80.6 |
| Trade and other payables | –192.6 | –221.9 | –224.3 |
| Opening capital employed | 546.7 | 405.7 | 381.7 |
| Balance sheet total | 861.8 | 729.8 | 901.0 |
| Provisions and other long-term liabilities | –158.4 | –129.9 | –161.7 |
| Trade and other payables | –195.9 | –127.9 | –192.6 |
| Closing capital employed | 507.5 | 472.0 | 546.7 |
| Average capital employed | 527.1 | 438.9 | 464.2 |
| Return on capital employed | –3.8 | 2.2 | 7.3 |
| Return on equity | |||
|---|---|---|---|
| June | June | Fyll year | |
| Amounts in SEK million | 2017 | 2016 | 2016 |
| Net profit/loss for the year | –32.5 | 7.6 | 17.0 |
| Total | –32.5 | 7.6 | 17.0 |
| Opening equity | 348.5 | 298.3 | 298.3 |
| Closing equity | 308.4 | 268.0 | 348.5 |
| Return on equity | –9.9 | 2.7 | 5.3 |
Net debt
| June | June | Full year | |
|---|---|---|---|
| Amounts in SEK million | 2017 | 2016 | 2016 |
| Current borrowing | 0.0 | 0.0 | 0.0 |
| Non-current borrowing | 199.1 | 297.5 | 198.2 |
| Total liabilities | 199.1 | 297.5 | 198.2 |
| Cash and cash equivalents | 140.8 | 123.2 | 195.4 |
| Net debt | 58.3 | 174.3 | 2.9 |
Definitions of key figures and ratios
Some key figures and ratios used by company management and analysts to assess the Group's development have not been prepared in accordance with IFRS (International Financial Reporting Standards). The company management considers that these key figures and ratios make it easier for investors to analyze the Group's development.
Equity
The total of non-restricted and restricted equity at the end of the year. Average equity capital has been calculated as opening balance plus closing balance of equity capital, divided by two.
Equity per share
Equity divided by the number of shares at the end of the period.
Free cash flow
Cash flow from operating activities (after change in operating profit) minus cash flow from investing activities.
Sales revenue per employee
Sales revenue divided by average number of employees. For quarterly reports net sales are estimated on a full year basis.
Investments
Total of the acquisition of business/subsidairies and acquisition of intangible assest and property, plant and equipment.
Average number of employees
Average number of employees at the end of each month.
Net debt
Total long-term and short-term borrowing less cash and cash equivalents.
Net debt-equity ratio
Interest-bearing net debt divided by equity including non-controlling interests.
Earnings per share
Profit for the year divided by the average number of shares. The average number of shares has been calculated as a weighted average of all shares in issue for the year.
Return on equity
Profit for the year as a percentage of average equity.
Return on capital employed
Profit/loss after financial items with financial expenses, fair value losses and foreign exchange losses added back, as a percentage of average capital employed. For the comparison year, capital employed has been adjusted by estimated values for operations held for sale, and only calculated on the closing balance.
Interest coverage ratio
Profit after financial income divided by the financial expenses.
Operating margin
Operating result after amortization as a percentage of net sales.
Equity/assets ratio
Equity including non-controlling interests as a percentage of the balance sheet total.
Capital employed
Balance sheet total less non-interest-bearing liabilities. Average capital employed has been calculated as opening balance plus closing balance of capital employed, divided by two.
Profit margin
Profit before tax as a percentage of net sales.
| Major shareholders, June 30, 2017 | ||
|---|---|---|
| Number of shares | Share, % | |
| Familjen Karinen | 1,769,552 | 21.5 |
| Briban Invest AB | 1,285,492 | 15.6 |
| Peter Gyllenhammar AB | 794,543 | 9.7 |
| Avanza Pensionsförsäkring AB | 364,911 | 4.4 |
| Credit Agricole Suisse SA | 363,879 | 4.4 |
| Malte Edenius | 250,000 | 3.0 |
| Invus Investment AB | 191,594 | 2.3 |
| Leif Lundin | 190,190 | 2.3 |
| Nordnet Pensionsförsäkring AB | 176,792 | 2.2 |
| Unionen | 152,709 | 1.9 |
| Total ten largest shareholders - holdings | 5,539,662 | 67.3 |
| Other shareholders | 2,678,949 | 32.7 |
| Total | 8,218,611 | 100.0 |
The Studsvik share
Facts about Studsvik
Studsvik offers a range of advanced technical services to the global nuclear power industry. Studsvik's business focus areas are fuel and materials technology, reactor analysis software and consultancy services within waste treatment technology, decommissioning, NORM and solutions for final disposal. The company has 70 years nuclear technology and radiological service experience. Studsvik has 700 employees in 7 countries and the company's shares are listed on the Nasdaq 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
SE-611 82 Nyköping, SWEDEN Telephone +46 155 22 10 00 Fax +46 155 26 30 70 E-mail [email protected] www.studsvik.com