Studsvik — Interim / Quarterly Report 2016

Feb 15, 2017

Year-end Report January-December 2016

• Sales in the quarter was SEK 246.3 (196.9) million. In local currencies sales increased by 23 per cent.
• The operating profit for the quarter amounted to SEK 27.0 (11.4) million. Items affecting comparability impacted earnings for the quarter by SEK –9.3 (0) million.
• The free cash flow for the quarter was SEK –22.2 (8.5) million.
• The full year net profit increased to SEK 63.0 (2.4) million. The Board of Directors proposes a dividend of SEK 1 per share.

	October December	October Decemberr	Full yearr	Full year
	2016	2015	2016	2015
Sales, SEK million	246.3	196.9	758.8	721.2
Operating profit, SEK million	27.0	11.4	24.7	36.6
Profit after tax, SEK million	8.7	2.8	17.0	14.6
Free cash flow, SEK million*	–22.2	8.5	129.6	–29.8
Net debt, SEK million*	2.9	134.3	2.9	134.3
Net debt/equity ratio, %*	0.8	45.0	0.8	45.0
Profit per share after tax, SEK	1.06	0.34	2.07	1.78
Equity per share, SEK*	42.41	36.30	42.41	36.30

*Refers to total operations

Unless otherwise stated the information in text and figures refers to operations excluding operations held for sale. Comparative figures for sales and earnings exclude operations held for sale.

Sales

Sales increased to SEK 246.3 (196.9) million for the quarter and to SEK 758.8 (721.2) million for the year. In local currencies this was an increase of 23 and 5 per cent respectively. For the full year the Consultancy Services business area reports growth driven by sales of THOR licenses.

Profit

The operating profit for the quarter increased to SEK 27.0 (11.4) million. However, operating profit for the year decreased to SEK 24.7 (36.6) million. Items affecting comparability impacted earnings for the quarter by SEK –9.3 (0) million and for the year by SEK –17.0 (0) million. The items affecting comparability in 2016 refer to staff cutbacks and closure of one office in England. Adjusted for these, the operating margin for the quarter was 14.7 (5.8) per cent and 5.5 (5.1) per cent for the year.

Net financial income in the quarter was SEK –3.4 (–6.0) million and SEK –16.4 (–17.7) million for the full year. This means that profit before tax for units in continuing operations for the quarter increased to SEK 23.6 (5.4) million, but decreased to SEK 8.3 (18.9) million for the full year. During the year operations in the Waste Treatment business area were sold to EDF. Earnings from these operations, and this transaction, are reported under operations held for sale. Consequently, profit after tax for the quarter improved to SEK 7.4 (–7.2) million and for the year to SEK 63.0 (2.4) million.

Fuel and Materials Technology

In the quarter sales increased by 25 per cent to SEK 104.2 (83.7) million. During the year sales increased by 2.3 per cent to SEK 282.9 (276.5) million. In local currencies the increase was 23 per cent for the quarter and 2 per cent for the full year. The substantial increase in sales for the quarter is due to software sales, which amounted to SEK 17.1 (11.3) million, and increased sales of materials technology services. Demand continues to increase in both the USA and Europe and the order book is sound.

The operating profit for the quarter increased to SEK 23.8 (16.7) million. However, operating profit for the full year decreased to SEK 32.5 (40.9) million. Costs affecting comparability referring to staff cutbacks impacted the previous year's earnings by SEK –0.8 million (0). Adjusted for items affecting comparability, the operating margin for the year was 11.7 (14.8) per cent. The deterioration is due to decreased software sales.

Consultancy Services

In the quarter sales increased by 22 per cent to SEK 128.9 (106.0) million. During the year sales increased by 7 per cent to SEK 448.4 (417.5) million. In local currencies this was an increase of 19 and 8 per cent respectively. The substantial increase in sales in the quarter is due to licenses for THOR technology.

The operating profit for the quarter increased to SEK 7.9 (4.1) million. However, operating profit for the full year decreased to SEK 14.0 (23.8) million. In 2016 sales of licenses for THOR technology to customers in the USA, France and Japan contributed SEK 42 million in operating profit, of which SEK 23 million during the quarter.

Profit for the year is negatively impacted by weak capacity utilization in engineering services in England and the USA, as well as maintenance services in Germany. Measures to improve profitability are being taken, while alternative strategies for operations in Germany are being evaluated. Items affecting comparability referring to costs of staff cutbacks and costs of closing an office in England impacted profit for the quarter by SEK –7.0 (0) million and full-year profit by SEK –13.4 (0) million. Adjusted for items affecting comparability the operating margin for the year increased to 6.1 (5.7) per cent.

Investments

Investments for the continuing operations in the quarter were SEK 5.5 (4.0) million and during the year were SEK 15.3 (14.6) million.

Cash flow

Cash flow from operating activities in the quarter was SEK –5.4 (16.8) million and SEK –56.1 (–6.6) million for the year. The free cash flow amounted to SEK –22.2 (8.5) million for the quarter and SEK 129.6 (–29.8) million for the year. SEK –1.3 (4.1) million and SEK –50.3 (–13.3) million respectively of the free cash flow referred to the divested operations in Waste Treatment.

Financial position and liquidity

During the quarter the opportunity to amortize SEK 100 million of the outstanding bond loan that falls due for payment in 2019 was utilized.

Cash and cash equivalents amounted to SEK 195.4 (74.9) million. Net interestbearing debt was SEK 2.9 (134.3) million, which means that the net debt/equity ratio was 0.8 (45.0) per cent.

Personnel

The average number of employees as at December 31 was 687 (708). The decrease is due to a smaller number of employees in administration and in the German operations.

Transactions with related parties

During the quarter a dividend of SEK 1.3 (3.0) 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 were SEK 9.7 (2.6) million for the quarter and SEK 22.5 (10.6) million for the year. Operating profit for the quarter was SEK –0.9 (–8.9) million and SEK –16.3 (–28.9) million for the year. Profit after net financial income was SEK 13.0 (31.6) million and SEK –8.2 (8.0) million respectively. Cash and cash equivalents including current investments amounted to SEK 43.9 (14.5) million and interest-bearing liabilities to SEK 200 (200) million.

Dividend

The Board of Directors proposes a dividend of SEK 1 per share, equivalent to SEK 8.2 million.

Annual General Meeting and Annual Report

The Annual General Meeting will be held on Thursday, April 27, 2017 at 16:00 at the World Trade Center, Klarabergsviadukten 70/Kungsbron 1. The annual report will be available on the company's website from week 12 (March 20-26).

Risks and uncertainties

The Group's financial risk has decreased significantly after divestment of the operations in Waste Treatment. In other respects, an overall analysis of the Group's risks and how they are dealt with is given in the Annual Report 2015, 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, February 15, 2017 Michael Mononen President

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

Time Schedule for Financial Information

Interim Report January–March 2017	April 27, 2017
Interim Report January–June 2017	July 21, 2017
Interim Report January–September 2017	October 20, 2017

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 February 15, at 2:30 pm 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	October December 2016	October December 2015	Fyll year 2016	Full year 2015
Net sales	246.3	196.9	758.8	721.2
Cost of services sold*	–155.3	–138.3	–535.3	–527.5
Gross profit	91.0	58.6	223.5	193.7
Selling and marketing expenses*	–12.4	–9.8	–44.4	–36.4
Administrative expenses*	–30.0	–30.6	–112.8	–103.9
Research and development costs	–7.7	–7.9	–27.5	–25.0
Share in earnings from associated companies	–3.0	3.5	4.1	11.6
Other operating income	0.3	–0.3	8.2	6.9
Other operating expenses	–11.2	–2.1	–26.4	–10.3
Operating profit	27.0	11.4	24.7	36.6
Financial income	0.1	–0.1	0.1	0.2
Financial expenses	–8.6	–3.2	–25.0	–13.6
Fair value gain/loss (realized and unrealized)	5.1	–2.7	8.5	–4.3
Profit/loss before tax	23.6	5.4	8.3	18.9
Income tax	–14.9	–2.6	8.7	–4.3
Profit/loss for the period from continuing operations	8.7	2.8	17.0	14.6
Operations held for sale Note 1
Profit/loss for the period from operations held for sale	–1.3	–10.0	46.0	–12.2
NET PROFIT/LOSS FOR THE PERIOD	7.4	–7.2	63.0	2.4
Other comprehensive income
Items that may later be reversed in the income statement
Translation differences on foreign subsidiaries	1.1	–6.0	–13.5	2.6
Cash flow hedging	–0.9	2.2	0.8	0.5
Income tax on items recognized in other comprehensive income	0.2	–0.5	–0.2	–0.1
Other comprehensive income for the period, net after tax	0.4	–4.3	–12.9	3.0
Total profit/loss and other comprehensive income for the period	7.8	–11.5	50.1	5.4
Income for the period attributable to
Parent company's shareholders	7.4	–7.2	63.0	2.4
Non-controlling interests	0.0	0.0	0.0	0.0
Total comprehensive income attributable to
Parent company's shareholders	7.7	–11.6	50.0	5.3
Non-controlling interests	0.1	0.1	0.1	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	1.06	0.34	2.07	1.78
Profit/loss from operations for sale	–0.16	–1.22	5.60	–1.49
NET PROFIT/LOSS FOR THE PERIOD	0.90	–0.88	7.67	0.29

*An adjustment between expense types has been made for 2015 to ensure comparability with 2016.

Administrative expenses has been decreased with 8 MSEK and Cost of services sold has been increased with 8 MSEK

Group statement of financial position

Amounts in SEK million	December 2016	December 2015
ASSETS
Intangible assets	178.0	181.4
Property, plant and equipment	113.3	344.8
Other non-current assets	155.8	127.7
Total non-current assets	447.1	653.9
Inventories	2.0	2.4
Trade receivables	150.8	196.6
Other current receivables	105.7	65.7
Cash and cash equivalents	195.4	74.9
Total current assets	453.9	339.6
Assets in disposal group held for sale Note 1	0.0	–
TOTAL ASSETS	901.0	993.5
EQUITY AND LIABILITIES
Equity attributable to parent company's shareholders	348.1	297.9
Non-controlling interests	0.4	0.3
Total equity	348.5	298.2
Borrowing	198.2	1.0
Provisions and other non-current liabilities	161.7	238.0
Total non-current liabilities	359.9	239.0
Trade and other payables	192.6	248.1
Borrowing	0.0	208.2
Total current liabilities	192.6	456.3
Liabilities in disposal group held for sale Note 1	0.0	–
TOTAL EQUITY AND LIABILITIES	901.0	993.5
Pledged assets	238.4	148.9
Contingent liabilities	71.7	52.1

Amounts in SEK million					Equity
					attributable
		Other			to the parent	Non
	Share capital	contributed capital	Reserves	Retained earnings	company's shareholders	controlling interest	Total equity
Equity at December 31, 2014	8.2	225.3	12.6	46.5	292.6	0.3	292.9
Changes January 1 – September 30, 2015
Comprehensive income for the period	–	–	7.2	9.7	16.9	–	16.9
Equity at September 30, 2015	8.2	225.3	19.8	56.2	309.5	0.3	309.8
Changes October 1 – December 31, 2015
Comprehensive income for the period	–	–	–4.3	–7.2	–11.5	–	–11.5
Equity at December 31, 2015	8.2	225.3	15.5	49.0	297.9	0.3	298.3
Changes January 1 – September 30, 2016
Comprehensive income for the period	–	–	–13.3	55.6	42.3	–	42.3
Equity at September 30, 2016	8.2	225.3	2.2	104.6	340.3	0.3	340.6
Changes October 1 – December 31, 2016
Comprehensive income for the period	–	–	0.4	7.4	7.8	0.1	7.9
Equity at December 31, 2016	8.2	225.3	2.6	112.0	348.1	0.4	348.5

Group statement of cash flow

Amounts in SEK million

Amounts in SEK million	October	October
	December	December	Full year	Full year
Total operations	2016	2015	2016	2015
Cash flow from operating activities
Operating profit	25.6	1.4	70.0	24.4
Adjustment for non-cash items	11.1	7.9	–43.7	28.7
Financial items, net	–9.0	–1.5	–25.4	–11.5
Income tax paid	1.9	6.4	–8.3	–6.9
Cash flow from operating activities before change in working capital	29.6	14.2	–7.4	34.7
Change in working capital	–35.1	2.6	–48.8	–41.3
Cash flow from operating activities	–5.4	16.8	–56.1	–6.6
Investing activities
Acquisition of property, plant and equipment	–5.6	–8.8	–18.5	–33.5
Acquisition in associated companies	–12.1	–	–12.1	–
Divestment of subsidiaries	–	–	206.1	–
Dividend from associated companies	1.3	3.0	9.7	12.7
Other cash flow from investing activities	–0.4	–2.6	0.5	–2.4
Cash flow from investment activities	–16.8	–8.3	185.7	–23.2
Free cash flow	–22.2	8.5	129.6	– 29.8
Financing activities
Change in borrowing	–100.0	–15.2	–10.7	–16.7
Dividend to shareholders	–	–	–	–
Cash flow from financing activities	–100.0	–15.2	–10.7	–16.7
Changes in cash and cash equivalents	–122.2	–6.6	118.9	–46.5
Cash and cash equivalents at the beginning of the period	316.4	83.3	74.9	120.1
Translation difference	1.2	–1.7	1.6	1.3
Cash and cash equivalents at the end of the period	195.4	74.9	195.4	74.9

Financial ratios for the Group

Amounts in SEK million	Full year 2016	Full year 2015
Margins
Operating margin, %	3.2	5.1
Profit margin, %	1.1	2.6
Return on investment*
Return on capital employed, %	7.3	12.0
Return on equity, %	19.5	0.8
Capital structure**
Capital employed	546.7	507.5
Equity	348.5	298.3
Net debt	2.9	134.3
Net debt/equity ratio, %	0.8	45.0
Equity/assets ratio, %	38.7	30.0
Employees
Average number of employees	687	708
Net sales per employee	1.1	1.0
*Calculation based on closing balance

**Refers to total operations

Data per share	October December 2016	October December 2015	Full year 2016	Full year 2015
Number of shares at the end of the period	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
Earnings per share before and after dilution
Profit/loss from continuing operations	1.06	0.34	2.07	1.78
Profit/loss from operations held for sale	–0.16	–1.22	5.60	–1.49
Profit/loss for the period	0.90	–0.88	7.67	0.29
Equity per share, SEK	42.41	36.30	42.41	36.30

Net sales per geographical area

Amounts in SEK million	October	October
	December	December	Full year	Full year
	2016	2015	2016	2015
Sweden - from continuing operations	77.6	48.7	180.4	144.7
Europe, excluding Sweden - from continuing operations	110.0	111.0	424.9	438.5
North America	25.1	28.3	101.5	105.0
Asia	12.6	2.8	30.6	26.8
Other	20.9	6.1	21.4	6.1
Total	246.3	196.9	758.8	721.2
Sweden - operations held for sale	–	6.0	18.3	33.3
Europe - excluding Sweden – from operations to sale	–	39.0	53.1	140.9
Total operations	246.3	241.9	830.2	895.4

Quarterly review

Amounts in SEK million	2014				2015				2016
Continuing operations	Q1	Q2	Q3	Q4	Q1	Q2	Q3	Q4	Q1	Q2	Q3	Q4
Net sales	152.9	156.8	171.9	187.8	156.8	177.7	189.8	197.0	171.6	176.3	164.6	246.3
Operating expenses	–156.7	–158.6	–160.9	–165.4	–158.5	–176.9	–163.7	–185.7	–160.9	–177.5	–176.5	–219.3
Operating profit	–3.8	–1.8	11.0	22.4	–1.7	0.8	26.1	11.3	10.7	–1.2	–11.9	27.0
Financial items, net	–6.6	–4.1	–4.9	–3.3	–1.9	–4.4	–5.4	–5.9	–8.7	–1.7	–2.5	–3.4
Profit/loss after financial items	–10.3	–5.9	6.1	19.1	–3.6	–3.6	20.7	5.4	2.1	–2.9	–14.4	23.6

Financial data per segment

Amounts in SEK million			Fuel and
Total operations	Waste	Consultancy	Materials
October-December 2016	Treatment*	Services	Technology	Other	Elimination	Group
External sales revenue	0.0	127.0	103.5	15.8	0.0	246.3
Revenue from segment	0.0	1.9	0.7	11.3	–13.9	0.0
Operating profit	–1.4	7.9	23.8	-4.7	0.0	25.6
Assets	0.0	425.1	277.9	487.4	–289.4	901.0
Liabilities	0.0	353.1	171.1	317.7	–289.4	552.6
Investments	0.0	0.3	5.0	0.2	0.0	5.5
Depreciation/amortization	0.0	0.8	2.4	1.5	0.0	4.7
Average number of employees	0	525	125	45	0	695.0

October-December 2015	Waste Treatment*	Consultancy Services	Fuel and Materials Technology	Other	Elimination	Group
External sales revenue**	44.9	105.7	83.6	7.7	–	241.9
Revenue from segment**	0.2	0.3	0.1	2.7	–3.3	0.0
Operating profit**	–10.2	4.1	16.7	–9.1	–	1.4
Assets	320.9	394.8	234.1	344.2	–300.5	993.5
Liabilities	226.8	319.3	98.3	351.2	–300.5	695.2
Investments	4.7	0.5	1.0	2.5	–	8.7
Depreciation/amortization	3.9	0.7	2.3	1.6	–	8.6
Average number of employees**	121	521	128	57	–	827

Full year 2016	Waste Treatment*	Consultancy Services	Fuel and Materials Technology	Other	Elimination	Group
External sales revenue	71.4	435.1	279.9	43.8	–	830.2
Revenue from segment	3.7	13.3	3.0	28.1	–48.1	0.0
Operating profit	45.3	14.0	32.5	–21.9	–	69.9
Assets	0.0	425.1	277.9	487.4	–289.4	901.0
Liabilities	0.0	353.1	171.1	317.7	–289.4	552.6
Investments	3.2	2.4	11.8	1.1	–	18.5
Depreciation/amortization	3.2	2.9	8.3	6.4	–	20.8
Average number of employees	46	523	127	37	–	733

Full year 2015	Waste Treatment*	Consultancy Services	Fuel and Materials Technology	Other	Elimination	Group
External sales revenue**	174.2	416.1	276.1	29.0	–	895.4
Revenue from segment**	1.2	1.4	0.4	11.0	–14.0	0.0
Operating profit**	–11.8	23.8	40.9	–28.4	–	24.4
Assets	320.9	394.8	234.1	344.2	–300.5	993.5
Liabilities	226.8	319.3	98.3	351.2	–300.5	695.2
Investments	18.9	1.2	5.9	7.5	–	33.5
Depreciation/amortization	14.9	2.2	9.0	7.4	–	33.6
Average number of employees**	122	522	128	57	–	829

*Operations held for sale. For more information, please see Note 1.

**Reclassfication of income, earnings and employees was made between segments for the

8 comparison year to achieve comparability with 2016.

Parent company income statement	October	October
	December	December	Full year	Full year
Amounts in SEK million	2016	2015	2016	2015
Net sales	9.7	2.6	22.5	10.6
Cost of services sold	–0.6	–0.5	–2.8	–2.9
Gross profit	9,1	2.1	19.7	7.7
Other operating income and costs	–10.0	–11.0	–36.0	–36.6
Operating profit	–0.9	–8.9	–16.3	–28.9
Result from participations in Group companies	14.3	45.1	14.3	45.1
Net financial items	–0.4	–4.6	–6.2	–8.2
Profit/loss before tax	13.0	31.6	–8.2	8.0
Income tax	–0.8	–6.5	4.1	–1.2
NET PROFIT/LOSS FOR THE PERIOD	12.2	25.1	–4.1	6.8

Parent company balance sheet

Amounts in SEK million	Decemberr	December
	2016	2015
ASSETS
Intangible assets	2.6	3.3
Property, plant and equipment	0.0	0.0
Financial non-current assets	652.9	607.3
Total non-current assets	655.5	610.6
Current assets	24.1	51.8
Cash and cash equivalents	43.9	14.5
Total current assets	68.0	66.3
TOTAL ASSETS	723.5	676.9
EQUITY AND LIABILITIES
Equity	286.8	290.9
Provisions	–	–
Non-current liabilities	267.0	106.7
Current liabilities	169.7	279.3
Total liabilities	436.7	386.0
TOTAL EQUITY AND LIABILITIES	723.5	676.9
Pledged assets	223.4	133.9
Contingent liabilities	5.3	5.3

Note 1 Operations held for sale

Assets and liabilities referring to the Waste Treatment business area have been	October	October
accounted for as held for sale.	December	December	Full year	Full year
Amounts in SEK million	2016	2015	2016	2015
Cash flow from operating activities	–1.3	8.8	–47.3	5.6
Cash flow from investing activities	–	–4.7	–3.0	–18.9
Cash flow from financing activities	–	–0.5	–1.6	–1.8
Total cash flow	–1.3	3.6	–51.9	–15.1
Assets in operations held for sale
Property, plant and equipment	–	–	–	–
Intangible assets	–	–	–	–
Financial assets	–	–	–	–
Current assets	–	–	–	–
Total assets	–	–	–	–
Liabilities in operations held for sale
Trade and other payables	–	–	–	–
Non-current liabilities	–	–	–	–
Provisions	–	–	–	–
Total liabilities	–	–	–	–
Analysis of profit/loss from operations held for sale
Income	0.0	45.0	71.6	174.2
Costs	–1.3	–55.0	–134.0	–186.4
Profit/loss from operations held for sale – before tax	–1.3	–10.0	–62.4	–12.2
Profit from operations held for sale	0.0	–	107.1	–
Income tax	0.0	–	1.3	–
Profit/loss from operations held for sale – after tax	–1.3	–10.0	46.0	–12.2

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 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	–
The Group's assets and liabilities measured at fair value as at December 31, 2015 (MSEK)	Level 1	Level 2	Level 3
Assets
Financial assets at fair value through profit or loss		22.5	11.3
Derivatives used for hedging		2.5	–
Liabilities
Derivatives used for hedging		6.8	–
Fair value of the Group's borrowings (MSEK)	December 31, 2016		December 31, 2015
Non-current loans	198.2		1.0
Current loans	0.0		208.2
Total loans	198.2		209.2

Reconciliations of key ratio

Return on capital employed

	Full year	Full year
Amounts in SEK million	2016	2015
Profit/loss after financial items	8.3	18.9
Financial costs according to the income statement	25.0	13.6
Fair value - foreign exchange losses	0.5	13.4
Total	33.8	45.9
Balance sheet total	686.6	–
Provisions and other long-term liabilities	–80.6	–
Trade and other payables	–224.3	–
Opening capital employed	381.7	–
Balans sheet total	901.0	686.6
Provisions and other long-term liabilities	–161.7	–80.6
Trade and other payables	–192.6	–224.3
Closing capital employed	546.7	381.7
Average capital employed	464.2	381.7
Return on capital employed	7.3	12.0

Return on equity
	Fyll year	Full year
Amounts in SEK million	2016	2015
Net profit/loss for the year	63.0	2.4
Total	63.0	2.4
Opening equity	298.3	292.9
Closing equity	348.5	298.3
Return on equity	19.5	0.8

Net debt

	Full year	Full year
Amounts in SEK million	2016	2015
Current borrowing	0.0	208.2
Non-current borrowing	198.2	1.0
Total liabilities	198.2	209.2
Cash and cash equivalents	195.4	74.9
Net debt	2.9	134.3

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, December 31, 2016
	Number of shares	Share, %
The Karinen Family	1,769,552	21.5
Briban Invest AB	1,283,492	15.6
Peter Gyllenhammar AB	825,000	10.0
Avanza Pensionsförsäkring AB	424,440	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	144,741	1.7
Total ten largest shareholders – holdings	5,622,597	68.1
Other shareholders	2,596,014	31.9
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 studsvik@studsvik.se www.studsvik.com