Studsvik — Interim / Quarterly Report 2017

Apr 27, 2017

Interim Report January-March 2017

• Sales in the quarter were SEK 179.6 (171.6) million. In local currencies sales increased by 3 per cent.
• Operating profit for the quarter amounted to SEK –2.0 (10.7) million. Items affecting comparability reduced earnings by SEK 4.2 (0) million.
• Free cash flow for the quarter was SEK –4.2 (–2.2) million.

	January March 2017	January March 2016	Full year 2016
Sales, SEK million	179.6	171.6	758.8
Operating profit, SEK million	–2.0	10.7	24.7
Profit after tax, SEK million	–8.5	5.9	17.0
Free cash flow, SEK million*	–4.2	–2.2	129.6
Net debt, SEK million	8.4	149.6	2.9
Net debt/equity ratio, %	2.5	52.4	0.8
Profit per share after tax, SEK	–1.04	0.72	2.07
Equity per share, SEK*	41.45	34.72	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 increased in the quarter to SEK 179.6 (171.6) million. In local currencies, this was an increase of 3.2 per cent.

Profit

The operating profit decreased to SEK –2.0 (10.7) million. Items affecting comparability, mainly referring to staff cutbacks in the Executive Group Management and in the German consulting operations, reduced earnings by SEK 4.2 (0) million. Adjusted for these, the operating margin for the quarter was 1.2 (6.3) per cent. In the first quarter of 2016 royalties of SEK 16.7 million were received, related to THOR.

Net financial income in the quarter was SEK –7.4 (-8.6) million. Profit/loss before tax for units in continuing operations decreased to SEK –9.4 (2.1) million and after tax to SEK –8.5 (5.9) million.

Fuel and Materials Technology

Sales increased to SEK 52.5 (43.5) million. In local currencies, the increase was 20.7 per cent.

The operating profit decreased to SEK 5.8 (8.1) million and the operating margin was 11.0 (18.6) per cent. The operating margin for the quarter is negatively impacted by losses on forward exchange contracts (SEK 1.4 million), lower capacity utilization in ALARA consulting operations and low margin on intermediary services.

Demand is strong in both fuel and materials technology and we have good capacity utilization at the Studsvik facility.

Studsvik Scandpower

Sales increased to SEK 19.7 (18.0) million. In local currencies, the increase was 5.3 per cent. The operating profit decreased to SEK –3.6 (–2.7) million. The operating margin was –18.3 (–15.0) per cent. The deterioration in the operating margin is explained by costs to strengthen the business area's sales in China, among other things. Sales of consultancy services related to our software increased in the quarter and demand for software continues to be good. Some progress has been made on export licenses for ordered software totaling SEK 26 million to China. However, it is still unclear when the American authorities may grant the application.

Consultancy Services

Sales decreased to SEK 103.4 (109.6) million. In local currencies the decrease was 7.2 per cent. The operating profit decreased to SEK 1.6 (12.4) million. Costs affecting comparability referring to staff cutbacks impacted earnings by SEK –1.4 million (0). Adjusted for items affecting comparability, the operating margin for the quarter was 2.9 (11.3) per cent. In the first quarter of 2016 royalties of SEK 16.7 million were received related to THOR. Profit in the underlying consulting operations, adjusted for royalties and items affecting comparability, thus improved by SEK 7.3 million. The improvement is driven by a higher billed time ratio in the USA and Germany, as well as lower costs in England.

Investments

Investments for the continuing operations were SEK 5.1 (4.2) million. The investments mainly refer to equipment for mechanical testing.

Cash flow

Cash flow from operating activities was SEK –1.6 (1.7) million and the free cash flow was SEK –4.2 (–2.2) million.

Financial position and liquidity

Cash and cash equivalents amounted to SEK 194.0 (185.5) million. Net interest-bearing debt at the close of the quarter was SEK 8.4 (149.6) million, which means that the net debt/equity ratio was 2.5 (52.4) per cent.

Personnel

The average number of employees was 633 (697). The decrease refers to fewer employees in the consulting operations in Germany and England.

Transactions with related parties

During the quarter a dividend of SEK 2 (3) 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 were SEK 5.2 (4.7) million. The loss after financial items was SEK –8.4 million (–12.0). Cash and cash equivalents including current investments amounted to SEK 73.8 (61.5) million and interest-bearing liabilities to SEK 200 (200) million.

Risks and uncertainties

An overall analysis of the Group's risks and how they are dealt with is given in the Annual Report for 2016, which is available on the company's website. Apart from these risks, no further significant risks are deemed to have arisen.

Accounting policies

The interim 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 4-13 forms an integral part of this financial report.

Stockholm, April 27, 2017 Michael Mononen President

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

Time Schedule for Financial Information

Interim Report January–June 2017	July 21, 2017
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 April 27, at 2:30 pm CET. 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

	January March 2016	January March 2016	Full year 2016
Net sales	179.6	171.6	758.8
Cost of services sold*	–128.5	–121.7	–535.3
Gross profit	51.1	49.9	223.5
Selling and marketing expenses	–10.8	–9.8	–44.4
Administrative expenses*	–30.8	–24.9	–112.8
Research and development costs	–7.3	–6.0	–27.5
Share in earnings from associated companies	1.6	3.3	4.1
Other operating income	0.3	1.3	8.2
Other operating expenses	–6.1	–3.1	–26.4
Operating profit	–2.0	10.7	24.7
Financial income	0.0	0.0	0.1
Financial expenses	–4.1	–4.2	–25.0
Fair value gain/loss (realized and unrealized)	–3.3	–4.4	8.5
Profit/loss before tax	–9.4	2.1	8.3
Income tax	0.9	3.9	8.7
Profit/loss for the period from continuing operations	–8.5	5.9	17.0
Operations held for sale Note 1
Profit/loss for the period from operations held for sale	–	–12.5	46.0
NET PROFIT/LOSS FOR THE PERIOD	–8.5	–6.6	63.0
Other comprehensive income
Items that may later be reversed in the income statement
Translation differences on foreign subsidiaries	0.2	–8.6	–13.5
Cash flow hedging	0.6	2.8	0.8
Income tax on items recognized in other comprehensive income	–0.1	–0.6	–0.2
Other comprehensive income for the period, net after tax	0.7	–6.4	–12.9
Total profit/loss and other comprehensive income for the	–7.8	–13.0	50.1
period
Income for the period attributable to
Parent company's shareholders	–8.5	–6.6	63.0
Non-controlling interests	0.0	0.0	0.0
Total comprehensive income attributable to
Parent company's shareholders	–7.8	–13.0	50.0
Non-controlling interests	0.0	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	–1.04	0.72	2.07
Profit/loss from operations for sale	0.00	–1.52	5.60
NET PROFIT/LOSS FOR THE PERIOD	–1.04	–0.80	7.67

*An adjustment between expense types has been made for 2016 to ensure comparability with 2017.

For the quarter Administrative expenses has been decreased with 4,9 MSEK and Cost of services sold has been increased with 4,9 MSEK

Group statement of financial position

Amounts in SEK million	March 2017	March 2016	December 2016
ASSETS
Intangible assets	176.7	172.2	178.0
Property, plant and equipment	113.4	112.9	113.3
Other non-current assets	154.7	116.0	155.8
Total non-current assets	444.8	401.1	447.1
Inventories	2.4	2.3	2.0
Trade receivables	144.6	148.6	150.8
Other current receivables	112.0	74.5	105.7
Cash and cash equivalents	190.3	147.5	195.4
Total current assets	449.3	372.9	453.9
Assets in disposal group held for sale Note 1	–	275.3	0.0
TOTAL ASSETS	894.1	1,049.3	901.0
EQUITY AND LIABILITIES
Equity attributable to parent company's shareholders	340.3	285.0	348.1
Non-controlling interests	0.4	0.3	0.4
Total equity	340.7	285.3	348.5
Borrowing	198.7	297.1	198.2
Provisions and other non-current liabilities	160.7	112.4	161.7
Total non-current liabilities	359.4	409.5	359.9
Trade and other payables	194.0	185.5	192.6
Borrowing	0.0	0.0	0.0
Total current liabilities	194.0	185.5	192.6
Liabilities in disposal group held for sale Note 1	–	169.0	0.0
TOTAL EQUITY AND LIABILITIES	894.1	1,049.3	901.0
Pledged assets	238.4	148.9	238.4
Contingent liabilities	70.6	60.0	71.7

Changes in equity

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, 2015	8.2	225.3	15.5	49.0	297.9	0.3	298.3
Changes January 1 – March 31, 2016
Comprehensive income for the period	–	–	–6.4	–6.6	–13.0	–	–13.0
Equity at September 30, 2015	8.2	225.3	9.1	42.4	285.0	0.3	285.3
Changes April 1 – December 31, 2016
Comprehensive income for the period	–	–	–6.5	69.6	63.1	0.1	63.2
Equity at December 31, 2015	8.2	225.3	2.6	112.0	348.1	0.4	348.5
Changes January 1 – March 31, 2017
Comprehensive income for the period	–	–	0.7	–8.5	–7.8	–	–7.8
Equity at March 31, 2017	8.2	225.3	3.3	103.5	340.3	0.4	340.7

Group statement of cash flow

Amounts in SEK million

	January	January	Full year
Total operations	March 2017	March 2016	2016
Cash flow from operating activities
Operating profit	–2.0	–1.7	70.0
Adjustment for non-cash items	2.7	6.1	–43.7
Financial items, net	–4.1	–4.3	–25.4
Income tax paid	–0.5	–5.1	–8.3
Cash flow from operating activities before change in	–3.9	–5.0	–7.4
working capital
Change in working capital	2.3	6.7	–48.8
Cash flow from operating activities	–1.6	1.7	–56.1
Investing activities
Acquisition of property, plant and equipment	–5.1	–7.8	–18.5
Acquisition in associated companies	0.0	0.0	–12.1
Divestment of subsidiaries	0.0	0.0	206.1
Dividend from associated companies	2.5	3.0	9.7
Other cash flow from investing activities	0.0	0.9	0.5
Cash flow from investment activities	–2.6	–3.9	185.7
Free cash flow	–4.2	–2.2	129.6
Financing activities
Change in borrowing	–	89.3	–10.7
Dividend to shareholders	–	–	–
Cash flow from financing activities	0.0	89.3	–10.7
Changes in cash and cash equivalents	–4.2	87.2	118.9
Cash and cash equivalents at the beginning of the period	195.4	74.9	74.9
Translation difference	–0.9	–0.4	1.6
Cash and cash equivalents at the end of the period	190.3	161.7	195.4

Financial ratios for the Group

Amounts in SEK million	January	January	Full year
	March 2017	March 2016	2016
Margins
Operating margin, %	–1.1	6.3	3.2
Profit margin, %	–5.3	1.2	1.1
Return on investment
Return on capital employed, %	–0.4	2.5	7.3
Return on equity, %	–2.5	2.0	5.3
Capital structure
Capital employed	539.4	476.1	546.7
Equity	340.7	285.3	348.5
Net debt	8.4	149.6	2.9
Net debt/equity ratio, %	2.5	52.4	0.8
Equity/assets ratio, %	38.1	27.2	38.7
Employees
Average number of employees	633	697	687
Net sales per employee	1.1	1.0	1.1

Data per share
	January	January	Full year
	March 2017	March 2016	2016
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 and after dilution
Profit/loss from continuing operations	–1.04	0.72	2.07
Profit/loss from operations held for sale	0.00	–1.52	5.60
Profit/loss for the period	–1.04	–0.80	7.67
Equity per share, SEK	41.45	34.72	42.41

Net sales per geographical area

Amounts in SEK million	October	October
	December	December	Full year
	2016	2015	2016
Sweden - from continuing operations	37.6	30.1	180.4
Europe, excluding Sweden - from continuing operations	114.1	99.3	424.9
North America	18.2	37.9	101.5
Asia	9.7	4.3	30.6
Other	0.0	0.0	21.4
Total	179.6	171.6	758.8
Sweden - operations held for sale	0.0	10.7	18.3
Europe - excluding Sweden – from operations to sale	0.0	26.4	53.1
Total operations	179.6	208.7	830.2

Quarterly review

Amounts in SEK million	2015				2016				2017
Continuing operations	Q1	Q2	Q3	Q4	Q1	Q2	Q3	Q4	Q1
Net sales	156.8	177.7	189.8	197.0	171.6	176.3	164.6	246.3	179.6
Operating expenses	–158.5	–176.9	–163.7	–185.7	–160.9	–177.5	–176.5	–219.3	–181.6
Operating profit	–1.7	0.8	26.1	11.3	10.7	–1.2	–11.9	27.0	–2.0
Financial items, net	–1.9	–4.4	–5.4	–5.9	–8.7	–1.7	–2.5	–3.4	–7.4
Profit/loss after financial	–3.6	–3.6	20.7	5.4	2.1	–2.9	–14.4	23.6	–9.4
items

Financial data per segment

Amounts in SEK million Total operations January-March 2017 Waste Treatment* Consultancy Services Fuel and Materials Technology Studsvik Scandpower Other Elimination Group External sales revenue – 100.3 51.2 17.9 10.2 – 179.6 Revenue from segment – 3.1 1.3 1.8 6.7 –12.9 0.0 Operating profit – 1.6 5.8 –3.6 –5.8 0.0 –2.0 Items affecting comparability – –1.4 –0.3 – –2.5 – –4,2 Adjusted operating profit – 3.0 6.1 –3.6 –3.3 – 2.2 Assets – 395.0 168.5 112.5 491.8 –273.7 894.1 Liabilities – 329.4 145.2 32.3 320.2 –273.7 553.4 Investments – 1.0 4.1 0.0 0.0 – 5.1 Depreciation/amortization – 0.5 2.4 0.2 0.9 – 4.0 Average number of employees – 461 98 34 40 – 633

			Fuel and
	Waste	Consultancy	Materials	Studsvik
January-March 2016	Treatment*	Services	Technology	Scandpower	Other	Elimination	Group
External sales revenue	–	106.6	42.9	14.6	7.5	–	171.6
Revenue from segment	–	3.0	0.6	3.4	4.7	–11.7	0.0
Operating profit	–	12.2	8.0	–2.7	–6.8	0.0	10.7
Items affecting comparability	–	–	–	–	–	–	–
Adjusted operating profit	–	12.2	8.0	–2.7	–6.8	–	10.7
Assets	267.8	402.4	139.8	112.0	399.4	–271.9	1,049.3
Liabilities	177.8	322.5	93.4	30.4	411.7	–271.9	763.9
Investments	–	1.0	2.5	0.2	0.5	–	4.2
Depreciation/amortization	–	0.6	1.8	0.2	2.0	–	4.6
Average number of employees	–	522	93	32	50	–	697

Waste	Consultancy	Materials	Studsvik
Treatment*	Services	Technology	Scandpower	Other	Elimination	Group
–	435.1	193.7	86.2	43.8	–	758.8
–	13.3	2,6	10.1	28.1	–54.1	0.0
–	14.0	29.7	2.8	–21.9	–	24.7
–	–13.4	–0.8	–	–2.9	–	17.0
–	27.4	30.5	2.8	–19.0	–	41.7
–	425.1	167.8	110.1	487.4	–289.4	901.0
–	353.1	142.8	28.3	317.7	–289.4	554.6
–	2.4	11.7	0.1	1.1	–	15.3
–	2.9	7.5	0.8	6.4	–	17.6
–	523	93	34	37	–	687
			Fuel and

Parent company income statement

	January	January	Full year
Amounts in SEK million	March 2017	March 20156	2016
Net sales	5.2	4.7	22.5
Cost of services sold	–0.7	–0.7	–2.8
Gross profit	4.5	4.0	19.7
Other operating income and costs	–9.0	–10.3	–36.0
Operating profit	–4.5	–6.3	–16.3
Result from participations in Group companies	0.0	0.0	14.3
Net financial items	–3.9	–5.7	–6.2
Profit/loss before tax	–8.4	–12.0	–8.2
Income tax	1.8	2.6	4.1
NET PROFIT/LOSS FOR THE PERIOD	–6.6	–9.4	–4.1

Parent company balance sheet

Amounts in SEK million	March	March	Decemberr
	2017	2016	2016
ASSETS
Intangible assets	2.4	3.1	2.6
Property, plant and equipment	0.0	0.0	0.0
Financial non-current assets	635.1	621.3	652.9
Total non-current assets	637.5	624.4	655.5
Current assets	21.1	53.9	24.1
Cash and cash equivalents	73.8	61.5	43.9
Total current assets	94.9	115.4	68.0
TOTAL ASSETS	732.4	739.8	723.5
EQUITY AND LIABILITIES
Equity	280.2	281.4	286.8
Provisions	–	–	–
Non-current liabilities	266.8	364.5	267.0
Current liabilities	185.4	93.9	169.7
Total liabilities	452.2	458.4	436.7
TOTAL EQUITY AND LIABILITIES	732.4	739.8	723.5
Pledged assets	223.4	133.9	223.4
Contingent liabilities	4.3	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	January-March 2017	January March 2016	Full year 2016
Cash flow from operating activities	–	–8.4	–47.3
Cash flow from investing activities	–	–3.6	–3.0
Cash flow from financing activities	–	–0.9	–1.6
Total cash flow	–	–12.9	–51.9
Assets in operations held for sale
Property, plant and equipment	–	225.2	–
Intangible assets	–	7.3	–
Financial assets	–	13.9	–
Current assets	–	28.9	–
Total assets	–	275.3	–
Liabilities in operations held for sale
Trade and other payables	–	43.7	–
Non-current liabilities	–	23.9	–
Provisions	–	101.4	–
Total liabilities	–	169.0	–
Analysis of profit/loss from operations held for sale
Income	–	37.1	71.6
Costs	–	–49.6	–134.0
Profit/loss from operations held for sale – before tax	–	–12.5	–62.4
Profit from operations held for sale	–	–	107.1
Income tax	–	–	1.3
Profit/loss from operations held for sale – after tax	–	–12.5	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 March 31, 2016 (MSEK)	Level 1	Level 2	Level 3
Assets
Financial assets at fair value through profit or loss		17,5	12,2
Derivatives used for hedging		2,3
Liabilities
Derivatives used for hedging		5,2
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)	March 31, 2017		December 31, 2016
Non-current loans	198,7		198.2
Current loans	0,0		0.0
Total loans	198,7		198.2

Reconciliations of key ratio

Return on capital employed

	March	March	Full year
Amounts in SEK million	2017	2016	2016
Profit/loss after financial items	–9.4	2.1	8.3
Financial costs according to the income statement	4.1	4.2	25.0
Fair value - foreign exchange losses	3.3	4.4	0.5
Total	–2.0	10.7	33.8
Balance sheet total	901.0	686.6	686.6
Provisions and other long-term liabilities	–161.7	–80.6	–80.6
Trade and other payables	–192.6	–224.3	–224.3
Opening capital employed	546.7	381.7	381.7
Balance sheet total	894.1	774.0	901.0
Provisions and other long-term liabilities	–160.7	–112.4	–161.7
Trade and other payables	–194.0	–185.5	–192.6
Closing capital employed	539.4	476.1	546.7
Average capital employed	543.0	428.9	464.2
Return on capital employed	–0.4	2.5	7.3

Return on equity
	March	March	Fyll year
Amounts in SEK million	2017	2016	2016
Net profit/loss for the year	–8.5	5.9	17.0
Total	–8.5	5.9	17.0
Opening equity	348.5	298.3	298.3
Closing equity	340.7	285.3	348.5
Return on equity	–2.5	2.0	5.3

Net debt

	March	March	Full year
Amounts in SEK million	2017	2016	2016
Current borrowing	0.0	0.0	0.0
Non-current borrowing	198.7	297.1	198.2
Total liabilities	198.7	297.1	198.2
Cash and cash equivalents	190.3	147.5	195.4
Net debt	8.4	149.6	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

The year's net sales divided by the avarage number of employees.

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.

Major shareholders, March 31, 2017
	Number of shares	Share, %
Familjen Karinen	1,769,552	21.5
Briban Invest AB	1,285,492	15.6
Peter Gyllenhammar AB	823,000	10.0
Avanza Pensionsförsäkring AB	422,439	5.1
Credit Agricole Suisse SA	363,879	4.4
Malte Edenius	250,000	3.0
Invus Investment AB	216,594	2.6
Leif Lundin	190,190	2.3
Unionen	152,709	1.9
Nordnet Pensionsförsäkring AB	130,485	1.6
Total ten largest shareholders - holdings	5,604,340	68.0
Other shareholders	2,614,271	32.0
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).

Studsvik AB

SE-611 82 Nyköping, SWEDEN Telephone +46 155 22 10 00 Fax +46 155 26 30 70 E-mail studsvik@studsvik.se www.studsvik.com