Studsvik — Interim / Quarterly Report 2019

Jul 22, 2019

INTERIM REPORT second quarter 2019

• Sales in the second quarter decreased in local currencies by 10 per cent and amounted to SEK 160.3 (174.0) million.
• Operating profit for the quarter amounted to SEK −8.1 (2.0) million.
• The free cash flow during the quarter was SEK −14.9 (4.0) million.

	April-June 2019	April-June 2018	January-June 2019	January-June 2018	Full year 2018
Sales. SEK million	160.3	174.0	300.2	371.4	726.1
Operating profit. SEK million	–8.1	2.0	–26.7	24.2	33.5
Profit after tax. SEK million	–10.8	–2.2	–33.9	10.5	8.7
Free cash flow. SEK million	–14.9	4.0	–47.9	25.6	54.2
Net debt. SEK million	92.4	71.6	92.4	71.6	44.4
Net debt/equity ratio. %	31.2	22.3	31.2	22.3	14.0
Profit per share after tax. SEK	–1.31	–0.27	–4.12	1.27	1.06
Equity per share. SEK	36.03	39.00	36.03	39.00	38.47

Sales

Sales in the quarter decreased to SEK 160.3 (174.0) million and in the first half year to SEK 300.2 (371.4) million. In local currencies this was a decrease of 10 and 22 per cent respectively. The decrease is mainly due to the previous year's sales figure including a large software sale in Scandpower and a major stoppage in Fuel and Materials Technology in the final quarter of 2017 that delayed sales to the first quarter of 2018. In addition there will be continued challenges in consulting operations and in Germany.

Inquiries and activities in the market continue to be good and initiatives outside the traditional markets in the USA and Europe are continuing. However, long selling in processes create uncertainty about the timing of some contracts.

Profit

The operating profit for the second quarter decreased to SEK –8.1 (2.0) million and SEK –26.7 (24.2) million for the first half year. Adjusted for items affecting comparability of SEK –6.3 (–1.4) million for the quarter and SEK –6.3 (–1.4) for the half year, the operating margin for the second quarter decreased to –1.1 (2.0) per cent and for the first half year to –6.8 (6.9) per cent.

Net financial income for the second quarter was SEK –1.1 (–4.5) million and SEK –5.8 (–8.1) million for the first half year. The half year's net financial income includes origination fees for the new financing of SEK 1.5 million.

Profit after tax decreased to SEK –10.8 (–2.2) million for the second quarter and SEK –33.9 (10.5) million for the first half year.

Fuel and Materials Technology

Sales in the second quarter decreased to SEK 52.2 (53.2) million and in the first half year to SEK 94.6 (119.9) million. In local currencies this was a decrease of 3 and 22 per cent respectively. The decrease is mainly due to fewer transport services than in 2018, and to the stoppage in the Hot Cell facility in the fourth quarter of 2017 that delayed deliveries to the first quarter of 2018.

The operating profit improved in the second quarter to SEK 14.9 (7.4) million but deteriorated somewhat in the first half year to SEK 15.2 (17.7) million. The operating margin increased in the quarter to 28.5 (13.9) per cent and for the half year to 16.1 (14.8) per cent. The improvement in performance in the second quarter is mainly due to a reassessment of future restoration costs for the nuclear operations in the Studsvik area, which reduced the reserve for these costs by just over SEK 10 million. The first half year was adversely affected by delays in the work of completing the production line for medical isotopes, which impacted the ability to complete other projects.

Consultancy Services

Sales in the quarter decreased to SEK 13.5 (19.4) million and in the half year to SEK 29.8 (40.6) million. In local currencies this was a decrease of 32 and 29 per cent respectively. The reduced sales are due to weak demand in the United Kingdom and the fact that no sales of FBSR technology were possible yet this year.

The operating profit for the quarter deteriorated to SEK –11.1 (1.1) million and SEK –16.6 (1.1) million for the half year. Adjusted for items affecting comparability of SEK –5.5 (–1.4) million in the quarter, linked to termination of staff in the United Kingdom and the Middle East, the operating margin decreased to –41.5 (12.9) and –37.2 (6.2) per cent respectively.

Scandpower

Sales in the quarter increased somewhat to SEK 25.0 (23.8) million but decreased in the half year to SEK 49.3 (66.6) million. In local currencies this means unchanged sales for the

quarter and a decrease of 30 per cent in the first half year. The decrease is due to the order received in the previous year from TVEL for software licenses and related services amounting to SEK 38 million, SEK 25 million of which was recognized in the first quarter last year.

The operating profit for the quarter deteriorated to SEK –3.5 (–1.0) million and to SEK –2.5 (19.7) million for the half year. The operating margin decreased to –14.0 (–4.2) and –5.1 (29.6) per cent respectively. There is a continued high level of interest in Scandpower's new software and upgrades in the domestic market in the USA. Presence in China has been strengthened via establishment of a local company.

Germany

Sales in the quarter decreased to SEK 71.1 (77.4) million and in the first half year to SEK 123.3 (141.3) million. local currencies this was a decrease of 11 and 16 per cent respectively. The decrease is due to less high margin business and high sickness absence in the German operations. This is offset to some extent by improvements in Switzerland in the second quarter.

The operating profit deteriorated in the quarter to SEK –2.3 (–0.3) million and to SEK –14.2 (–5.1) million in the first half year. The operating margin decreased to –3,2 (–0.4) and –11,5 (–3.6) per cent respectively.

The cost savings activities implemented could not compensate for the negative sales growth, where several high margin business transactions were impacted, and adjustment of operations is continuing.

Investments

The investments increased somewhat to SEK 10.6 (6.2) million in the quarter and to SEK 17.4 (13.1) million in the half year. The year's investments are mainly related to the production line for medical isotopes.

Cash flow

Due to the poorer performance the free cash flow was SEK –14.9 (4.0) million in the quarter and SEK –47.9 (25.6) million in the half year. The Group's cash and cash equivalents at the end of the first half year amounted to SEK 27.6 million and the unutilized portion of the overdraft facility was SEK 30 million.

Financial position and liquidity

The interest-bearing net debt has increased to SEK 92.4 (71.6) million. The net debt/equity ratio at the close of the quarter was 31.2 (22.3) per cent.

Refinancing took place in February in connection with redemption of the bond loan of SEK 200 million and its replacement by bank financing of SEK 150 million.

Personnel

The average number of employees decreased to 579 (635). The decrease is primarily attributable to the German operations.

Related party transactions

During the second quarter a dividend of SEK 3.4 (2.0) million was received from UK Nuclear Waste Management Ltd.

Parent company

Operations in the parent company consist of coordination of the Group. Sales in the second quarter were SEK 3.3 (4.1) million and in the first half year SEK 6.5 (8.1) million. The operating profit was SEK –3.6 (–2.7) million in the quarter and –7.4 (–6.1) in the half year.

Studsvik's Interim Report Second Quarter 2019

Profit after financial items in the quarter was SEK –1.5 (3.5) million and for the half year SEK –0.7 (4.0) million. Net financial income for the quarter includes revaluation of intra-group loans by SEK 0.8 (7.5) million and for the half year SEK 7.3 (12.8) million. Cash and cash equivalents including current investments amounted to SEK 0.0 (23.7) million and interestbearing liabilities to SEK 120 (199) million.

Events after the balance sheet date

No significant events have occurred after the balance sheet date.

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

Studsvik applies the International Financial Reporting Standards (IFRS) approved by the EU. This interim report was prepared for the Group in accordance with IAS 34 Interim Financial Reporting and the Swedish Annual Accounts Act. For the parent company, the Swedish Financial Reporting Board recommendation RFR 2 Accounting for Legal Entities and the Annual Accounts Act are applied. The accounting policies applied are in line with what is stated in the Annual Report for 2018, with the exception of new standards and revisions of standards and interpretations to be applied to the financial year starting on January 1, 2019 and that were not already applied when preparing the 2018 Annual Report. The standards that have an impact on the Group's financial statements and are being applied for the first time in the financial year starting on January 1, 2019 are set out below:

IFRS 16: Leases

Studsvik applies IFRS 16 from January 1, 2019, using the simplified transition method. An exemption is made for contracts with a shorter maturity than 1 year and contracts whose value is less than USD 5,000.

The half-yearly 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 22, 2019

Anders Ullberg Anna Karinen Jan Barchan

Board Member Board Member

Linda Ekstrand Per Ekberg Board Member Board Member Employee Representative Employee Representative

Chairman Vice Chairman Board Member

Peter Gossas Agneta Nestenborg

Camilla Hoflund President

Time Schedule for Financial Information

Interim report January-September 2019 October 22, 2019 Year-end Report 2019 February, 2020

For further information, please contact

Claes Engvall, CFO, +46 72 231 04 58 or, Camilla Hoflund, President and Chief Executive Officer, +46 155 22 10 66.

The interim report will be presented at a conference call to be held in English, on July 22 at 1:00 p.m. Further information for those interested in participating is available at www. studsvik.com.

This information is information that Studsvik AB (publ) is obliged to disclose pursuant to the EU Market Abuse Regulation. The information was released for public disclosure, through the agency of the contact person above, on July 22, 2019, at 11:00 AM.

4

Consolidated statement of profit or loss and other comprehensive income

Amounts in SEK million	April-June 2019	April-June 2018	January-June 2019	January-June 2018	Full year 2018
Net sales	160.3	174.0	300.2	371.4	726.1
Cost of services sold*	–119.8	–132.7	–239.2	–270.5	–551.2
Gross profit	40.5	41.3	61.0	100.9	174.9
Selling and marketing expenses	–13.5	–9.7	–25.5	–20.1	–39.9
Administrative expenses	–26.8	–27.6	–52.2	–54.0	–107.9
Research and development costs*	–2.1	–1.7	–3.8	–3.2	–9.0
Share in earnings from associated companies	1.9	4.6	3.7	7.3	10.6
Other operating income	2.3	1.3	4.0	3.0	17.3
Other operating expenses	–10.4	–6.1	–13.9	–9.6	−12.5
Operating profit	–8.1	2.0	–26.7	24.2	33.5
Financial income	1.2	0.0	1.8	0.2	4.0
Financial expenses	–2.3	–4.3	–7.6	–8.1	–18.8
Profit/loss before tax	–9.2	–2.3	–32.5	16.3	18.7
Income tax	–1.6	0.1	–1.4	–5.8	−10.0
NET PROFIT/LOSS FOR THE PERIOD	–10.8	–2.2	–33.9	10.5	8.7
Other comprehensive income
Items that may later be reversed in the income statement
Translation differences on foreign subsidiaries	1.4	12.6	12.6	22.5	19.6
Cash flow hedging	1.2	–0.2	1.5	–1.2	–0.7
Income tax on items recognized in other comprehensive income	–0.2	0.1	–0.3	0.3	0.2
Other comprehensive income for the period, net after tax	2.4	12.5	13.8	21.6	19.1
Total profit/loss and other comprehensive income for the period	–8.4	10.3	–20.1	32.1	27.8
Income for the period attributable to
Parent company's shareholders	–10.8	–2.2	–33.9	10.5	8.7
Non-controlling interests	0.0	0.0	0.0	0.0	–
Total comprehensive income attributable to
Parent company's shareholders	–8.4	10.2	–20.1	32.0	27.7
Non-controlling interests	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)	–1.31	–0.27	–4.12	1.27	1.06

*) Comparative year has been restated

Group statement of financial position

Amounts in SEK million	June	June	December
	2019	2018	2018
ASSETS
Intangible assets	197.3	188,5	190.2
Property, plant and equipment	145.3	120,6	124.3
Other non-current assets	173.6	170,0	169.0
Total non-current assets	516.2	479,1	483.5
Inventories	3.4	1,2	0.5
Trade receivables	132.3	187,3	145.7
Other current receivables	98.0	87,1	115.4
Cash and cash equivalents	27.6	127,5	155.5
Total current assets	261.3	403,1	417.1
TOTAL ASSETS	777.5	882,2	900.6
EQUITY AND LIABILITIES
Equity attributable to parent company's shareholders	295.7	320,1	315.8
Non-controlling interests	0.4	0,4	0.4
Total equity	296.1	320,5	316.2
Borrowing	48.0	199,1	–
Provisions and other non-current liabilities	150.8	163,3	166.6
Total non-current liabilities	198.8	362,4	166.6
Trade and other payables	210.6	199,3	217.9
Borrowing	72.0	–	199.9
Total current liabilities	282.6	199,3	417.8
TOTAL EQUITY AND LIABILITIES	777.5	882,2	900.6

Changes in equity

Amounts in SEK million

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, 2017	8.2	225.3	4.8	49.9	288.1	0.3	288.4
Changes January 1 – June 30, 2018
Comprehensive income for the period	–	–	21.6	10.5	32.1	0.1	32.2
Equity at June 30, 2018	8.2	225.3	26.3	60.3	320.1	0.4	320.5
Changes July 1 – December 31, 2018
Comprehensive income for the period	–	–	–2.5	–1.7	–4.3	0.0	–4.3
Equity at December 31, 2018	8.2	225.3	23.8	58.6	315.8	0.4	316.2
Changes January 1 – June 30, 2019
Comprehensive income for the period	–	–	13,8	–33,9	–20,1	0,0	–20,1
Equity at June 30, 2019	8.2	225.3	37,6	24,7	295,7	0,4	296,1

Group statement of cash flow

Amounts in SEK million	April-June 2019	Aparil-June 2018	January-June 2019	January-June 2018	Full year 2018
Cash flow from operating activities
Operating profit	–8.1	2.0	–26.7	24.2	33.5
Adjustment for non-cash items	–8.8	–1.5	–11.3	0.7	16.3
Financial items, net	0.0	–3.6	–4.5	–7.2	−14.4
Income tax paid	–3.0	–5.2	–7.0	–4.5	–6.4
Cash flow from operating activities before change in working capital	–19.9	–8.3	–49.5	13.2	29.0
Change in working capital	12.1	16.4	12.6	20.2	51.3
Cash flow from operating activities	–7.8	8.1	–36.9	33.4	80.3
Investing activities
Acquisition of property, plant and equipment	–10.6	–6.2	–17.4	–13.1	–32.1
Disposal of non-current assets	0.1	–	0.1	–	0.5
Dividend from associated companies	3.4	2.1	6.3	5.3	5.5
Cash flow from investment activities	–7.1	–4.1	–11.0	–7.8	–26.1
Free cash flow	–14.9	4.0	–47.9	25.6	54.2
Financing activities
Change in borrowing	–31.5	–	–84.5	–	–
Cash flow from financing activities	–31.5	–	–84.5	–	–
Changes in cash and cash equivalents	–46.4	4.0	–132.4	25.6	54.2
Cash and cash equivalents at the beginning of the period	73.4	121.1	155.5	98.7	98.7
Translation difference	0.6	2.4	4.5	3.2	2.6
Cash and cash equivalents at the end of the period	27.6	127.5	27.6	127.5	155.5

Financial ratios for the Group

Amounts in SEK million	June	June	Full year
	2019	2018	2018
Margins
Operating margin, %	–8.9	6.5	4.6
Profit margin, %	–10.8	4.4	2.6
Return on investment
Return on capital employed, %	–5.3	4.8	7.4
Return on equity, %	–11.1	3.4	2.9
Capital structure
Capital employed	416.1	519.6	516.1
Equity	296.1	320.5	316.2
Net debt	92.4	71.6	44.4
Net debt/equity ratio, %	31.2	22.3	14.0
Equity/assets ratio, %	38.1	36.3	35.1
Employees
Average number of employees	579	635	624
Net sales per employee	1.0	1.2	1.2

Data per share	April-June	April-June	January-June	January-June	Full year
	2019	2018	2019	2018	2018
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 for the period	–1.31	–0.27	–4.12	1.27	1.06
Equity per share, SEK	36.03	39.00	36.03	39.00	38.47

Net sales per geographical area

Amounts in SEK million	April-June	April-June	January-June	January-June	Full year
	2019	2018	2019	2018	2018
Sweden	29.5	27.7	55.9	66.7	126.9
Europe	105.4	119.4	195.0	258.5	484.3
North America	14.4	12.3	28.7	25.3	71.3
Asia	11.0	14.2	20.6	20.5	43.6
Other	–	0.4	–	0.4	–
Total	160.3	174.0	300.2	371.4	726.1

Quarterly review

Amounts in SEK million	2017				2018				2019
Continuing operations	Q1	Q2	Q3	Q4	Q1	Q2	Q3	Q4	Q1	Q2
Net sales	179.6	176.6	183.3	165.4	197.4	174.0	167.2	187.6	139.9	160.3
Operating expenses	–181.6	–196.0	–167.8	–201.1	–175.2	–172.0	−157.7	−187.9	–158.5	–168.4
Operating profit	–2.0	–19.4	15.5	–35.7	22.2	2.0	9.5	−0.3	–18.6	–8.1
Financial items, net	–5.1	–3.7	–4.6	–3.7	–3.6	–4.4	−3.4	−3.5	–4.7	–1.1
Profit/loss after financial items	–7.1	–23.1	10.9	–39.4	18.6	–2.4	6.1	−3.8	–23.3	–9.2

Financial data per segment

Amounts in SEK million	Fuel and Materials	Consultancy
April-June 2019	Technology	Services	Scandpower	Germany	Other	Elimination	Group
External sales revenue	51.5	11.2	20.8	69.7	7.1	–	160.3
Revenue from segment	0.7	2.3	4.2	1.4	4.9	–13.5	–
Operating profit	14.9	–11.1	–3.5	–2.3	–6.1	–	–8.1
Items affecting comparability	–	5.5	–	–	0.8	–	6.3
Adjusted operating profit	14.9	–5.6	–3.5	–2.3	–5.3	–	–1.8
Assets	193.7	157.3	149.7	233.0	381.6	–337.8	777.5
Liabilities	144.0	136.8	54.4	224.4	259.6	–337.8	481.4
Investments	9.0	0.5	0.1	0.1	0.9	–	10.6
Depreciation/amortization	3.3	1.1	0.7	1.1	0.9	–	7.1
Average number of employees	103	45	34	360	19	–	561
	Fuel and
	Materials	Consultancy
April-June 2018	Technology	Services	Scandpower	Germany	Other	Elimination	Group
External sales revenue	51.3	19.7	21.8	75.0	6.2	–	174.0
Revenue from segment	1.9	–0.3	2.0	2.4	5.9	–11.9	–
Operating profit	7.4	1.1	–1.0	–0.3	–5.2	–	2.0
Items affecting comparability	–	1.4	–	–	–	–	1.4
Adjusted operating profit	7.4	2.5	–1.0	–0.3	–5.2	–	3.4
Assets	152.6	173.7	132.8	243.7	454.7	–275.3	882.2
Liabilities	147.1	130.7	42.0	216.8	300.9	–275.3	562.2
Investments	3.9	1.4	0.2	-0.1	0.8	–	6.2
Depreciation/amortization	3.0	0.4	0.2	0.2	1.0	–	4.8
Average number of employees	97	55	33	418	29	–	632
	Fuel and
	Materials	Consultancy
January-June 2019	Technology	Services	Scandpower	Germany	Other	Elimination	Group
External sales revenue	93.3	24.9	44.8	120.8	16.4	–	300.2
Revenue from segment	1.3	4.9	4.5	2.5	9.8	–23.0	–
Operating profit	15.2	–16.6	–2.5	–14.2	–8.6	–	–26.7
Items affecting comparability	–	5.5	–	–	0.8	–	6.3
Adjusted operating profit	15.2	–11.1	–2.5	–14.2	–7.8	–	–20.4
Assets	193.7	157.3	149.7	233.0	381.6	–337.8	777.5
Liabilities	144.0	136.8	54.4	224.4	259.6	–337.8	481.4
Investments	14.1	0.9	0.3	0.1	2.0	–	17.4
Depreciation/amortization	6.6	2.2	1.4	2.2	1.8	–	14.2
Average number of employees	103	48	34	376	18	–	579
	Fuel and
	Materials	Consultancy
January-June 2018	Technology	Services	Scandpower	Germany	Other	Elimination	Group
External sales revenue	117.6	36.8	63.6	138.2	15.2	–	371.4
Revenue from segment	2.3	3.8	3.0	3.1	11.7	–23.9	–
Operating profit	17.7	1.1	19.7	–5.1	–9.2	–	24.2
Items affecting comparability	–	1.4	–	–	–	–	1.4
Adjusted operating profit	17.7	2.5	19.7	–5.1	–9.2	–	25.6
Assets	152.6	173.7	132.8	243.7	454.7	–275.3	882.2
Liabilities	147.1	130.7	42.0	216.8	300.9	–275.3	562.2
Investments	9.3	1.4	0.2	0.2	2.0	–	13.1
Depreciation/amortization	6.1	0.7	0.4	0.5	1.9	–	9.6
Average number of employees	97	54	33	424	27	–	635
	Fuel and
	Materials	Consultancy
Full year 2018	Technology	Services	Scandpower	Germany	Other	Elimination	Group
External sales revenue	219.5	68.9	129.7	280.0	28.0	–	726.1
Revenue from segment	4.8	9.4	7.5	5.4	20.0	–47.1	–
Operating profit	30.1	–10.7	26.8	−9.3	–3.4	–	33.5
Items affecting comparability	0.7	3.9	–	2.9	–12.2	–	−4.7
Adjusted operating profit	30.8	–6.8	26.8	−6.4	–15.6	–	28.8
Assets	217.6	161.8	145.6	230.2	433.0	–287.6	900.6
Liabilities	183.3	133.6	49.5	210.7	296.3	–287.6	585.8
Investments	23.2	2.4	0.5	0.3	5.7	–	32.1
Depreciation/amortization	12.7	1.1	0.8	1.1	3.7	–	19.4
Average number of employees	98	51	33	417	25	–	624

Financial data per segment cont. - External sales per country Amounts in SEK million, total operation

Fuel and

	Materials	Consultancy
April-June 2019	Technology	Services	Scandpower	Germany	Other	Total
Sales from
Germany	–	–	4.3	60.8	–	65.1
Switzerland	–	–	–	8.9	–	8.9
United Kingdom	–	3.0	–	–	–	3.0
USA	–	3.8	13.4	–	–	17.2
Sweden	45.9	4.4	3.1	–	7.1	60.5
France	–	–	–	–	–	–
Japan	5.6	–	–	–	–	5.6
Total	51.5	11.2	20.8	69.7	7.1	160.3
	Fuel and
April-June 2018	Materials Technology	Consultancy Services	Scandpower	Germany	Other	Total
Sales from					–
Germany	–	–	3.6	72.5	–	76.1
Switzerland	–	–	–	2.1	–	2.1
United Kingdom	–	4.7	–	–	–	4.7
USA	–	9.2	14.6	–	–	23.8
Sweden	47.4	5.8	3.6	–	6.3	63.1
France	–	0.4	–	–	–	0.4
Japan	3.8	–	–	–	–	3.8
Total	51.2	20.1	21.8	74.6	6.3	174.0
	Fuel and Materials	Consultancy
January-June 2019	Technology	Services	Scandpower	Germany	Other	Total
Sales from
Germany	–	–	12.5	110.3	–	122.8
Switzerland	–	–	–	10.5	–	10.5
United Kingdom	–	11.0	–	–	–	11.0
USA	–	6.5	23.5	–	–	30.0
Sweden	87.3	7.4	8.8	–	16.4	119.9
France	–	–	–	–	–	–
Japan	6.0	–	–	–	–	6.0
Total	93.3	24.9	44.8	120.8	16.4	300.2
	Fuel and
	Materials	Consultancy
January-June 2018	Technology	Services	Scandpower	Germany	Other	Total
Sales from
Germany	–	–	10.7	128.9	–	139.6
Switzerland	–	–	–	9.3	–	9.3
United Kingdom	–	10.4	–	–	–	10.4
USA	–	15.7	45.8	–	–	61.5
Sweden	113.8	9.7	7.1	–	15.2	145.8
France	–	1.0	–	–	–	1.0
Japan	3.8	–	–	–	–	3.8
Total	117.6	36.8	63.6	138.2	15.2	371.4
	Fuel and
	Materials	Consultancy
Full yer 2018	Technology	Services	Scandpower	Germany	Other	Total
Sales from
Germany	–	–	21.2	260.0	–	281.2
Switzerland	–	–	–	20.0	–	20.0
United Kingdom	–	26.3	–	–	–	26.3
USA	–	24.7	84.1	–	–	108.8
Sweden	213.6	16.9	24.4	–	28.0	282.9
France	–	1.0	–	–	–	1.0
Japan	5.9	–	–	–	–	5.9
Total	219.5	68.9	129.7	280.0	28.0	726.1

Parent company income statement Amounts in SEK million	April-June 2019	April-June 2018	January-June 2019	January-June 2018	Full year 2018
Net sales	3.3	4.1	6.5	8.1	12.8
Cost of services sold	–	–	–	–	–
Gross profit	3.3	4.1	6.5	8.1	12.8
Other operating income and costs	–6.9	–6.8	–13.9	–14.2	–25.5
Operating profit	–3.6	–2.7	–7.4	–6.1	–12.7
Result from participations in Group companies	–	–	–	–	–58.3
Net financial items	2.1	6.2	6.7	10.1	3.8
Profit/loss before tax	–1.5	3.5	–0.7	4.0	–67.2
Income tax	0.4	–1.7	0.4	–1.7	–1.8
NET PROFIT/LOSS FOR THE PERIOD	–1.1	1.8	–0.3	2.3	–69.0

Parent company balance sheet

Amounts in SEK million	June	June	December
	2019	2018	2018
ASSETS
Intangible assets	0.8	1.5	1.2
Financial non-current assets	609.9	656.6	599.3
Total non-current assets	610.7	658.1	600.5
Current assets	16.3	22.0	26.3
Cash and cash equivalents	0.0	23.7	21.2
Total current assets	16.3	45.7	47.5
TOTAL ASSETS	627.0	703.8	648.0
EQUITY AND LIABILITIES
Equity	176.4	248.1	176.7
Non-current liabilities	129.4	243.3	42.8
Current liabilities	321.2	212.4	428.5
Total liabilities	450.6	455.7	471.3
TOTAL EQUITY AND LIABILITIES	627.0	703.8	648.0

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 tables below refer to total operations.

The Group's assets and liabilities measured at fair value as at June 30, 2019 (MSEK)	Level 1	Level 2	Level 3
Assets
Financial assets at fair value through profit or loss		14.4	15.0
Derivatives used for hedging		0.1
Liabilities
Derivatives used for hedging		0.9
The Group's assets and liabilities measured at fair value as at June 30, 2018 (MSEK)	Level 1	Level 2	Level 3
Assets
Financial assets at fair value through profit or loss		16.4	14.1
Derivatives used for hedging		2.6
Liabilities
Derivatives used for hedging		4.1
Fair value of the Group's borrowings (MSEK)	June 30, 2019	December 31, 2018
Non-current loans	48,0		–
Current loans	72,0		199.9
Total loans	120,0		199.9

Reconciliations of key ratios

Return on capital employed Amounts in SEK million	June 2019	June 2018	Full year 2018
Profit/loss after financial items	–32.5	16.3	18.7
Financial costs according to the income statement	7.6	8.0	18.4
Total	–24.9	24.3	37.4
Balance sheet total	900.6	824.9	824.9
Provisions and other long-term liabilities	–166.6	–164.8	–164.8
Trade and other payables	–217.9	–171.8	–171.8
Opening capital employed	516.1	488.3	488.3
Balance sheet total	777.5	882.2	900.6
Provisions and other long-term liabilities	–150.8	–163.3	−166.6
Trade and other payables	–210.6	–199.3	−217.9
Closing capital employed	416.1	519.6	516.1
Average capital employed	466.1	504.0	502.2
Return on capital employed	–5.3	4.8	7.4

Return on equity Amounts in SEK million	June 2019	June 2018	Full year 2018
Net profit/loss for the year	–33.9	10.5	8.7
Total	–33.9	10.5	8.7
Opening equity	316.2	288.4	288.4
Closing equity	296.1	320.5	316.2
Return on equity	–11.1	3.4	2.9

Net debt Amounts in SEK million	June 2019	June 2018	Full year 2018
Current borrowing	72.0	–	199.9
Non-current borrowing	48.0	199.1	–
Total liabilities	120.0	199.1	199.9
Cash and cash equivalents	27.6	127.5	155.5
Net debt	92.4	71.6	44.4

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, 2019
	Number of shares	Share, %
The Karinen Family	1,769,552	21.5
Briban Invest AB	1,285,492	15.6
Peter Gyllenhammar AB	988,210	12.0
The Girell Family	403,800	4.9
Avanza Pensionsförsäkring AB	402,676	4.9
Credit Agricole Suisse SA	363,879	4.5
Nordnet Pensionsförsäkring AB	253,039	3.1
Malte Edenius	250,000	3.0
Leif Lundin	199,000	2.4
Invus Investment AB	169,655	2.0
Total ten largest shareholders - holdings	6,076,303	73.9
Other shareholders	2,142,308	26.1
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 600 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 (publ) SE-611 82 Nyköping Telephone +46 155 22 10 00 www.studsvik.com