Studsvik — Interim / Quarterly Report 2020

Oct 23, 2020

INTERIM REPORT third quarter

2020

• Sales in the quarter increased in local currencies by 27 per cent and amounted to SEK 187.7 (151.2) million.
• Operating profit in the quarter was SEK 23.1 (–4.1) million, due to good sales growth in Scandpower and profitability improvements in Waste Management Technology. The operating margin for the quarter was 12.3 (2.9) per cent and 8.7 (–3.5) per cent for the year to date.
• No negative effects on performance linked to the corona pandemic were reported for the quarter.
• The free cash flow during the quarter was SEK –9.9 (1.9) million.

	July September	July September	January September	January September	Full year
	2020	2019	2020	2019	2019
Sales, SEK million	187.7	151.2	508.4	451.4	654.0
Operating profit, SEK million	23.1	–4.1	36.2	–30.8	–10.4
Profit after tax, SEK million	18.7	–5.8	26.4	–39.7	–28.0
Free cash flow, SEK million	–9.9	1.9	25.2	–46.0	–38.8
Net debt, SEK million	60.7	84.6	60.7	84.6	82.9
Net debt/equity ratio, %	18.7	28.2	18.7	28.2	27.4
Profit per share after tax, SEK	2.28	–0.71	3.21	–4.83	–3.41
Equity per share, SEK	39.53	36.58	39.53	36.58	36.84

Sales

Sales increased during the quarter to SEK 187.7 (151.2) million and during the first three quarters of the year to SEK 508.4 (451.4) million. In local currencies this was an increase of 27 and 13 per cent respectively.

Profit

Operating profit in the quarter was SEK 23.1 (–4.1) million and in the first three quarters of the year SEK 36.2 (–30.8) million. Last year profit was reduced by restructuring costs of SEK 8.5 million. Excluding these, the quarterly profit improved by SEK 18.7 million. The improvement is attributable to Scandpower and Waste Management Technology.

Operating profit for the year to date is SEK 36.2 (–30.8) million. This year's profit was reduced by effects of the corona pandemic of SEK 8 million and last year by restructuring costs of SEK 15 million. Excluding these items, profit improved by SEK 60 million. The improvement is attributable to Germany, Scandpower and Waste Management Technology.

The operating margin for the quarter, excluding effects in Germany of the corona pandemic and last year's restructuring costs in Waste Management Technology, improved to 12.3 (2.9) per cent and for the year's first three quarters to 8.7 (–3.5) per cent.

Net financial income for the quarter was SEK –1.3 (–0.2) million and SEK –2.6 (–6.0) million for the period. Profit/loss after tax was SEK 18.7 (–5.8) million for the quarter and SEK 26.4 (–39.7) million for the year to date.

Cash flow and financing

The free cash flow amounted to SEK –9.9 (1.9) million for the quarter and for the year to date SEK 25.2 (–46.0) million. The negative cash flow in the quarter was mainly due to increased trade receivables as a result of increased sales. The Group's cash and cash equivalents at the end of the quarter amounted to SEK 70.0 (36.9) million and the unutilized portion of the overdraft facility was SEK 16.3 (27.5) million.

Fuel and Materials Technology

Sales increased in the third quarter to SEK 44.7 (40.3) million and for the first three quarters of the year to SEK 153.0 (134.9) million. In local currencies this was an increase of 12 and 13 per cent respectively. During the period two large contracts were signed with Chinese and South Korean customers totaling approximately SEK 180 million for delivery in 2020–2023.

Operating profit for the quarter amounted to SEK 2.9 (3.1) million and for the year to date SEK 18.4 (18.3) million. The operating margin for the quarter was 6.5 (7.7) per cent and for the year's three first quarters was 12.0 (13.6) per cent.

Waste Management Technology

Sales decreased during the quarter to SEK 11.5 (12.3) million and during the first three quarters of the year to SEK 37.5 (42.1) million. In local currencies this was a decrease of 2 per cent for the quarter and 11 per cent for the three first quarters. The reduced sales are due to the winding up of unprofitable operations last year.

The operating profit in the quarter improved to SEK 2.2 (–13.2) million and for the first three quarters of the year to SEK 3.0 (–29.8) million.

Restructuring costs of SEK 8.5 million were charged to the third quarter last year and SEK 14 million in the first three quarters of last year.

Excluding these restructuring costs last year, the operating margin in the quarter was 19.1 (–38.2) per cent and in the three first quarters 8.0 (–37.5) per cent.

Scandpower

Sales increased during the quarter to SEK 41.2 (19.6) million and during the first three quarters of the year to SEK 91.7 (68.9) million. In local currencies this was an increase of 116 and 33 per cent respectively. Demand for Scandpower's products and engineering services continues to be good but varies substantially over time. During the quarter a few large orders were received in the American market. Interest from China continues to be great.

Operating profit for the quarter improved to SEK 11.1 (–1.7) million and for the first three quarters to SEK 12.8 (–4.2) million. The operating margin improved to 26.9 (–8.7) per cent and 14.0 (–6.1) per cent respectively.

Germany

Sales increased during the quarter to SEK 87.5 (78.0) million and during the first three quarters of the year to SEK 216.8 (201.3) million. In local currencies this was an increase of 15 and 8 per cent respectively. The customer activity level has been high and capacity utilization good.

Operating profit in the quarter was SEK 8.3 (8.6) million and in the first three quarters of the year SEK 10.1 (–5.6) million. The improved performance during the year is mainly due to renegotiated customer contracts, a more favorable sales mix and improved capacity utilization at the beginning of the year. The corona pandemic has not entailed any negative consequences in the quarter, but in the year to date the negative effect is SEK 8 million. The operating margin in the quarter decreased to 9.5 (11.0) per cent but excluding the effects of the corona pandemic it improved to 8.3 (–2.8) per cent in the year's three first quarters.

Investments

Investments amounted to SEK 5.9 (5.9) million during the quarter but decreased to SEK 15.5 (23.3) million in the first three quarters of the year. The year's investments are mainly related to Fuel and Materials Technology.

Financial position

Net interest-bearing debt has decreased to SEK 60.7 million (84.6). The net debt/equity ratio at the close of the quarter was 18.7 (28.2) per cent.

Personnel

The average number of employees decreased to 517 (564). The decrease is primarily attributable to the German and English operations.

Parent company

Operations in the parent company consist of coordination of the Group. Sales during the quarter were SEK 3.7 (3.8) million and during the first three quarters of the year SEK 10.5 (10.3) million. Operating profit in the quarter was SEK –1.4 (–2.1) million and in the first three quarters of the year SEK –7.2 (–9.5) million.

Loss after financial items in the quarter was SEK –2.6 (–28.1) million and during the year to date SEK –6.2 (–28.8) million. Net financial income for the quarter includes revaluation of intra-group loans by SEK –2.2 (5.6) million and SEK –2.2 (12.9) million for the three first quarters. Cash and cash equivalents including current investments amounted to SEK 0.0 (0.0) million and interest-bearing liabilities to SEK 130.7 (121.5) million.

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 relating to the corona pandemic have been added.

Effects of the corona pandemic

Profit in the third quarter was not affected by the corona pandemic, but altogether during the year the Group's profit was negatively affected by SEK 8 million. There are continued risks related to the corona pandemic for the rest of the year. Customers may decide to postpone some business and new temporary staff cuts may be necessary at some facilities in Germany and our facilities in Studsvik. The Executive Group Management is following developments and is prepared to take measures as necessary to reduce the negative effects on operations. The company acts in compliance with decisions and recommendations issued by governments and authorities in the respective markets, with the health and safety of employees as its highest priority.

Guarantees for future waste management costs

There is still no notification concerning the appeal to the Land and Environment Courts.

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 2019, with the exception of new standards and revisions of standards and interpretations to be applied to the financial year starting on January 1, 2020 and that were not already applied when preparing the 2019 Annual Report.

Stockholm, October 23, 2020

Camilla Hoflund President/CEO

Auditor's report

Studsvik AB corp. reg. no. 556501-0997

Introduction

We have reviewed the condensed interim financial information (interim report) of Studsvik AB as of 30 September 2020 and the nine-month period then ended. The board of directors and the CEO are responsible for the preparation and presentation of the interim financial information in accordance with IAS 34 and the Swedish Annual Accounts Act. Our responsibility is to express a conclusion on this interim report based on our review.

Scope of Review

We conducted our review in accordance with the International Standard on Review Engagements ISRE 2410, Review of Interim Report 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 is substantially less in scope than an audit conducted in accordance with International Standards on Auditing, ISA, and other generally accepted auditing standards in Sweden. The procedures performed in a review do not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

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 Swedish Annual Accounts Act, regarding the Group, and with the Swedish Annual Accounts Act, regarding the Parent Company.

Stockholm, October 23, 2020 PricewaterhouseCoopers AB

Martin Johansson Authorized public accountant

Time Schedule for Financial Information

Year-End Report 2020	February 12, 2021
Interim Report January-March 2021	April 29, 2021
Interim Report January-June 2021	July 21, 2021
Interim Report January-September 2021	October 21, 2021

For further information, please contact

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

The interim report will be presented at a conference call to be held in English, on October 23 at 13.30 pm CET. Further information for those interested in participating is available at www.studsvik.com.

This information is information that Studsvik AB is obliged to disclose pursuant to the EU Market Abuse Regulation and the Securities Market Act. The information was released for public disclosure, through the agency of the contact persons above, on October 23, 2020, at 12:00 am.

Amounts in SEK million	July September 2020	July September 2019	January September 2020	January September 2019	Full year 2019
Net sales	187.7	151.2	508.4	451.4	654.0
Cost of services sold	–133.9	–118.9	–378.0	–358.1	–496.9
Gross profit	53.8	32.3	130.4	93.3	157.1
Selling and marketing expenses	–8.0	–11.0	–27.5	–36.5	–51.1
Administrative expenses	–19.7	–21.2	–60.6	–73.4	–102.0
Research and development costs	–1.7	–1.9	–5.9	–5.7	–8.8
Share in earnings from associated companies	1.1	1.9	4.0	5.6	9.5
Other operating income	2.4	0.9	5.3	4.9	4.8
Other operating expenses	–4.8	–5.1	–9.5	–19.0	–19.9
Operating profit	23.1	–4.1	36.2	–30.8	–10.4
Financial income	0.2	1.3	2.6	3.1	9.6
Financial expenses	–1.5	–1.5	–5.2	–9.1	–22.0
Profit/loss before tax	21.8	–4.3	33.6	–36.8	–22.8
Income tax	–3.1	–1.5	–7.2	–2.9	–5.2
NET PROFIT/LOSS FOR THE PERIOD	18.7	–5.8	26.4	–39.7	–28.0
Other comprehensive income
Items that may later be reversed in the income statement
Translation differences on foreign subsidiaries	–4.3	10.3	–4.3	22.9	13.3
Cash flow hedging	0.0	0.1	0.0	1.6	1.6
Income tax on items recognized in other comprehensive income	0.0	0.0	0.0	–0.3	–0.3
Other comprehensive income for the period, net after tax	–4.3	10.4	–4.3	24.2	14.6
Total profit/loss and other comprehensive income for the period	14.4	4.6	22.1	–15.5	–13.4
Income for the period attributable to
Parent company's shareholders	18.7	–5.8	26.4	–39.7	–28.0
Non-controlling interests	–	–	–	–	–
Total comprehensive income attributable to
Parent company's shareholders	14.4	4.6	22.1	–15.5	–13.4
Non-controlling interests	0.0	0.0	0.0	0.0	0.0
Earnings per share calculated on income attributable to the parent company's shareholders during the period, SEK	2.28	–0.71	3.21	–4.83	–3.41
Earnings per share (There is no dilution effect)	2.28	–0.71	3.21	–4.83	–3.41

Group statement of financial position

Amounts in SEK million	September 30,	September 30,	December 31,
	2020	2019	2019
ASSETS
Intangible assets	195.3	197.7	193.1
Property. plant and equipment	135.2	149.5	147.4
Other non-current assets	173.0	178.2	183.5
Total non-current assets	503.5	525.4	524.0
Inventories	2.4	3.6	1.2
Trade receivables	168.9	105.2	160.0
Other current receivables	77.3	111.3	82.8
Cash and cash equivalents	70.0	36.9	40.2
Total current assets	318.6	257.0	284.2
TOTAL ASSETS	822.1	782.4	808.2
EQUITY AND LIABILITIES
Equity attributable to parent company's shareholders	324.5	300.2	302.4
Non-controlling interests	0.4	0.4	0.4
Total equity	324.9	300.6	302.8
Borrowing	45.0	47.0	46.5
Provisions and other non-current liabilities	150.3	151.7	155.9
Total non-current liabilities	195.3	198.7	202.4
Trade and other payables	216.2	208.6	226.4
Borrowing	85.7	74.5	76.6
Total current liabilities	301.9	283.1	303.0
TOTAL EQUITY AND LIABILITIES	822.1	782.4	808.2

Changes in equity

Amounts in SEK million

			attributable
		Other			to the parent	Non
	Share	contributed		Retained	company's	controlling
	capital	capital	Reserves	earnings	shareholders	interest	Total equity
Equity at December 31, 2018	8.2	225.3	23.8	58.6	315.8	0.4	316.2
Changes January 1 – September 30, 2019
Comprehensive income for the period	–	–	24.1	–39.7	–15.6	0.0	–15.6
Equity at September 30, 2019	8.2	225.3	47.9	18.9	300.2	0.4	300.6
Changes October 1 – December 31, 2019
Comprehensive income for the period	–	–	–9.5	11.7	2.2	0.0	2.2
Equity at December 31, 2019	8.2	225.3	38.4	30.6	302.4	0.4	302.8
Changes January 1 – September 30, 2020
Comprehensive income for the period	–	–	–4.3	26.4	22.1	0.0	22.1
Equity at September 30, 2020	8.2	225.3	34.1	57.0	324.5	0.4	324.9

Equity

Group statement of cash flow

Amounts in SEK million	July September	July September	January September	January September	Full year
	2020	2019	2020	2019	2019
Cash flow from operating activities
Operating profit	23.1	–4.1	36.2	–30.8	–10.4
Adjustment for non-cash items	6.8	5.5	15.3	–5.8	0.9
Financial items, net	–1.0	–0.3	–3.2	–4.8	–9.2
Income tax paid	–1.9	–1.5	–5.5	–8.5	–9.7
Cash flow from operating activities before change in working capital	27.0	–0.4	42.8	–49.9	–28.4
Change in working capital	–31.1	7.6	–15.6	20.2	14.9
Cash flow from operating activities	–4.1	7.2	27.2	–29.7	–13.5
Investing activities
Acquisition of property, plant and equipment	–5.9	–5.9	–15.5	–23.3	–32.7
Disposal of non-current assets	–	–	–	0.1	0.1
Dividend from associated companies	0.1	0.6	13.5	6.9	7.3
Cash flow from investment activities	–5.8	–5.3	–2.0	–16.3	–25.3
Free cash flow	–9.9	1.9	25.2	–46.0	–38.8
Financing activities
Change in borrowing	5.2	2.6	4.9	–81.9	–81.0
Cash flow from financing activities	5.2	2.6	4.9	–81.9	–81.0
Changes in cash and cash equivalents	–4.8	4.5	30.1	–127.9	–119.8
Cash and cash equivalents at the beginning of the period	75.3	27.6	40.2	155.5	155.5
Translation difference	–0.5	4.8	–0.3	9.3	4.5
Cash and cash equivalents at the end of the period	70.0	36.9	70.0	36.9	40.2

Financial ratios for the Group

Amounts in SEK million	January	January	Full year
	September	September
	2020	2019	2019
Margins
Operating margin, %	7.1	–6.8	–1.6
Profit margin, %	6.6	–8.2	–3.5
Return on investment
Return on capital employed, %	14.9	–6.3	–0.2
Return on equity, %	12.1	–15.1	–9.3
Capital structure
Capital employed	455.6	422.1	425.9
Equity	324.9	300.6	302.8
Net debt	60.7	84.6	82.9
Net debt/equity ratio, %	18.7	28.2	27.4
Equity/assets ratio, %	39.5	38.4	37.5
Employees
Average number of employees	517	564	552
Net sales per employee	1.3	1.1	1.2

Data per share	July September 2020	July September 2019	January September 2020	January September 2019	Full year 2019
Number of shares at the end of the period Average number of shares	8,218,611 8,218,611	8,218,611 8,218,611	8,218,611 8,218,611	8,218,611 8,218,611	8,218,611 8,218,611
Earnings per share before and after dilution	2.28	–0.71	3.21	–4.83	–3.41
Equity per share, SEK	39.53	36.58	39.53	36.58	36.84

Net sales per geographical area

Amounts in SEK million	July	July	January	January	Full year
	September	September	September	September
	2020	2019	2020	2019	2019
Sweden	22.0	27.1	77.9	83.0	113.7
Europe	121.4	109.3	329.7	304.3	417.7
North America	31.3	13.3	68.3	42.0	86.9
Asia	13.0	1.5	32.3	22.1	35.7
Other	–	–	0.3	–	–
Total	187.7	151.2	508.4	451.4	654.0

Quarterly review

Amounts in SEK million	2018				2019				2020
Continuing operations	Q1	Q2	Q3	Q4	Q1	Q2	Q3	Q4	Q1	Q2	Q3
Net sales	197.4	174.0	167.2	187.6	139.9	160.3	151.2	202.6	152.9	167.8	187.7
Operating expenses	–175.2	–172.0	−157.7	−187.9	–158.5	–168.4	–155.3	–182.2	–149.4	–158.2	–164.6
Operating profit	22.2	2.0	9.5	−0.3	–18.6	–8.1	–4.1	20.4	3.5	9.6	23.1
Financial items, net	–3.6	–4.4	−3.4	−3.5	–4.7	–1.1	–0.2	–6.4	0.5	–1.8	–1.3
Profit/loss after financial items	18.6	–2.4	6.1	−3.8	–23.3	–9.2	–4.3	14.0	4.0	7.8	21.8

Financial data per segment

Amounts in SEK million	Fuel- and	Waste
	Materials	Management
July - September 2020	Technology	Technology	Scandpower	Germany	Other	Elimination –	Group
External sales revenue	44.6	11.1	38.9	87.7	5.4		187.7
Revenue from segment	0.1	0.4	2.3	–0.2	3.8	–6.4	–
Operating profit	2.9	2.2	11.1	8.3	–1.4	–	23.1
Items affecting comparability	–	–	–	–	–	–	–
Adjusted operating profit	2.9	2.2	11.1	8.3	–1.4	–	23.1
Assets	201.2	166.0	158.2	247.2	378.5	–329.0	822.1
Liabilities Investments	157.0 3.0	151.7 1.4	46.1 0.1	224.0 0.9	247.4 0.5	–329.0 –	497.2 5.9
Depreciation/amortization	3.4	0.4	0.9	1.0	1.3	–	7.0
Average number of employees	110	28	35	328	19	–	520
	Fuel- and	Waste
	Materials	Management	Scandpower	Germany	Other	Elimination	Group
July - September 2019	Technology	Technology
External sales revenue	39.7	10.9	16.7	77.6	6.3	–	151.2
Revenue from segment	0.6	1.4	2.9	0.4	2.0	–7.3	–
Operating profit	3.1	–13.2	–1.7	8.6	–0.9	–	–4.1
Items affecting comparability	–	8.5	–	–	–	–	8.5
Adjusted operating profit	3.1	–4.7	–1.7	8.6	–0.9	–	4.4
Assets	192.2	166.0	137.4	246.2	391.6	–351.0	782.4
Liabilities	157.4	157.0	39.3	230.2	248.9	–351.0	481.8
Investments	3.5	1.8	0.0	0.3	0.3	–	5.9
Depreciation/amortization	3.3	0.9	1.0	1.1	1.2	–	7.5
Average number of employees	103	48	34	367	18	–	570
	Fuel- and	Waste
January - September 2020	Materials	Management	Scandpower	Germany	Other	Elimination	Group
	Technology	Technology
External sales revenue	151.4	36.6	84.2	216.8	19.4	–	508.4
Revenue from segment	1.6	0.9	7.5	–	11.1	–21.1	–
Operating profit	18.4	3.0	12.8	10.1	-8.1	–	36.2
Items affecting comparability	–	–	–	–	–	–	–
Adjusted operating profit	18.4	3.0	12.8	10.1	–8.1	0.0	36.2
Assets	201.2	166.0	158.2	247.2	378.5	–329.0	822.1
Liabilities	157.0	151.7	46.1	224.0	247.4	–329.0	497.2
Investments	8.8	3.8	0.7	1.3	0.9	–	15.5
Depreciation/amortization	9.2	1.8	2.7	3.0	4.5	–	21.2
Average number of employees	110	25	35	328	19	–	517
	Fuel- and	Waste
	Materials	Management	Scandpower	Germany	Other	Elimination	Group
January - September 2019	Technology	Technology				–
External sales revenue	133.0	35.8	61.5	198.4	22.7		451.4
Revenue from segment	1.9	6.3	7.4	2.9	11.8	–30.3	–
Operating profit	18.3	–29.8	–4.2	–5.6	–9.5	–	–30.8
Items affecting comparability	–	14.0	–	–	0.8	–	14.8
Adjusted operating profit Assets	18.3 192.2	–15.8 166.0	–4.2 137.4	–5.6 246.2	–8.7 391.6	– –351.0	–16.0 782.4
Liabilities Investments	157.4 17.6	157.0 2.7	39.3 0.3	230.2 0.4	248.9 2.3	–351.0 –	481.8 23.3
Depreciation/amortization	9.9	3.1	2.4	3.3	3.0	–	21.7
Average number of employees	104	48	35	359	18	–	564
Full year 2019	Fuel- and Materials	Waste Managment	Scandpower	Germany	Other	Elimination	Group
	Technology	Technology
External sales revenue	196.8	49.7	118.5	258.5	30.5	–	654.0
Revenue from segment	3.3	7.1	11.6	4.5	20.4	–46.9	–
Operating profit	25.3	–33.,6	13.0	–1.0	–14.1	–	–10.4
Items affecting comparability	–	14.0	–	–	0.8	–	14.8
Adjusted operating profit	25.3	–19.6	13.0	–1.0	–13.3	–	4.4
Assets	206.4	157.7	170.4	222.0	381.7	–330.0	808.2
Liabilities	168.6	141.5	67.1	205.6	252.6	–330.0	505.4
Investments	22.9	4.2	1.3	1.7	2.6	–	32.7
Depreciation/amortization	12.9	3.8	3.5	4.4	4.4	–	29.0
Average number of employees	104	46	35	349	18	–	552

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

	Fuel- and Materials	Waste Management
July - September 2020	Technology	Technology	Scandpower	Germany	Other	Total
Sales from
Germany	–	–	3.0	73.3	–	76.3
Switzerland	–	–	–	14.4	–	14.4
United Kingdom	–	0.9	–	–	–	0.9
USA	–	7.3	27.4	–	–	34.7
Sweden	44.7	2.9	4.3	–	5.4	57.3
Japan	–0.1	–	–	–	–	–0.1
China	–	–	4.2	–	–	4.2
Total	44.6	11.1	38.9	87.7	5.4	187.7
	Fuel- and Materials	Waste Management
July - September 2019	Technology	Technology	Scandpower	Germany	Other	Total
Sales from					–
Germany	–	–	2.9	70.0	–	72.9
Switzerland	–	–	–	7.6	–	7.6
United Kingdom	–	3.2	–	–	–	3.2
USA	–	4.4	8.6	–	–	13.0
Sweden	39.6	3.3	5.2	–	6.3	54.4
Japan	0.1	–	–	–	–	0.1
China	–	–	–	–	–	–
Total	39.7	10.9	16.7	77.6	6.3	151.2
January - September 2020	Fuel- and Materials Technology	Waste Management Technology	Scandpower	Germany	Other	Total
Sales from
Germany	–	–	14.5	186.5	–	201.0
Switzerland	–	–	–	30.3	–	30.3
United Kingdom	–	4.2	–	–	–	4.2
USA	–	20.4	50.9	–	–	71.3
Sweden	145.0	12.0	14.1	–	19.4	190.5
Japan	6.4	–	–	–	–	6.4
China	–	–	4.7	–	–	4.7
Total	151.4	36.6	84.2	216.8	19.4	508.4
January - September	Fuel- and Materials	Waste Management
2019	Technology	Technology	Scandpower	Germany	Other	Total
Sales from					–
Germany	–	–	15.4	180.3	–	195.7
Switzerland	–	–	–	18.1	–	18.1
United Kingdom	–	14.2	–	–	–	14.2
USA	–	10.9	32.1	–	–	43.0
Sweden	126.9	10.7	14.0	–	22.7	174.3
Japan	6.1	–	–	–	–	6.1
China	–	–	–	–	–	–
Total	133.0	35.8	61.5	198.4	22.7	451.4
	Fuel- and Materials	Waste Management
Full year 2019	Technology	Technology	Scandpower	Germany	Other	Total
Sales from					–
Germany	–	–	24.3	237.6	–	261.9
Switzerland	–	–	–	20.9	–	20.9
United Kingdom	–	16.9	–	–	–	16.9
USA	–	16.5	66.6	–	–	83.1
Sweden	188.3	16.3	22.3	–	30.5	257.4
Japan	8.5	–	–	–	–	8.5
China	–	–	5.3	–	–	5.3
Total	196.8	49.7	118.5	258.5	30.5	654.0

Parent company income statement	July	July	January	January	Full year
	September	September	September	September
Amounts in SEK million	2020	2019	2020	2019	2019
Net sales	3.7	3.8	10.5	10.3	13.9
Cost of services sold	–	–	–	–	–
Gross profit	3.7	3.8	10.5	10.3	13.9
Other operating income and costs	–5.1	–5.9	–17.7	–19.8	–29.1
Operating profit	–1.4	–2.1	–7.2	–9.5	–15.2
Result from participations in Group companies	–	–33.1	–	–33.1	–48.4
Net financial items	–1.2	7.1	1.0	13.8	–1.1
Profit/loss before tax	–2.6	–28.1	–6.2	–28.8	–64.7
Income tax	0.6	–1.0	1.4	–0.6	–0.4
NET PROFIT/LOSS FOR THE PERIOD	–2.0	–29.1	–4.8	–29.4	–65.1

Parent company balance sheet

Amounts in SEK million	September	September	December 31,
	30, 2020	30, 2019	2019
ASSETS
Intangible assets	0.0	0.6	0.5
Financial non-current assets	567.9	589.2	554.6
Total non-current assets	567.9	589.8	555.1
Current assets	2.3	15.6	13.3
Cash and cash equivalents	0.0	0.0	0.0
Total current assets	2.3	15.6	13.3
TOTAL ASSETS	570.2	605.4	568.4
EQUITY AND LIABILITIES
Equity	106.9	147.3	111.6
Non-current liabilities	128.0	130.0	130.2
Current liabilities	335.3	328.1	326.6
Total liabilities	463.3	458.1	456.8
TOTAL EQUITY AND LIABILITIES	570.2	605.4	568.4

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 September 30, 2020 (MSEK)	Level 1	Level 2	Level 3
Assets
Financial assets at fair value through profit or loss		19.1	15.5
Derivatives used for hedging		0.0
Liabilities
Derivatives used for hedging		0.1
The Group's assets and liabilities measured at fair value as at September 30, 2019 (MSEK)	Level 1	Level 2	Level 3
Assets
Financial assets at fair value through profit or loss		15.8	15.1
Derivatives used for hedging		0.0	–
Liabilities
Derivatives used for hedging		0.7	–
Fair value of the Group's borrowings (MSEK)	September 30, 2020		December 31, 2019
Non-current loans	45.0		46.5
Current loans	85.7		76.6
Total loans	130.7		123.1

Return on capital employed	January	January	Full year
Amounts in SEK million	September 2020	September 2019	2019
Profit/loss after financial items	33.6	–36.8	–22.8
Financial costs according to the income statement	5.2	9.1	22.0
Total	38.8	–27.7	–0.8
Balance sheet total	782.4	900.6	900.6
Provisions and other long-term liabilities	–151.7	–166.6	–166.6
Trade and other payables	–208.6	–217.9	–217.9
Opening capital employed	422.1	516.1	516.1
Balance sheet total	822.1	782.4	808.2
Provisions and other long-term liabilities	–150.3	–151.7	–155.9
Trade and other payables	–216.2	–208.6	–226.4
Closing capital employed	455.6	422.1	425.9
Average capital employed	438.9	469.1	471.0
Return on capital employed (average of the four last quarters)	14.9	–6.3	–0.2

Return on equity	January September	January September	Full year
Amounts in SEK million	2020	2019	2019
Net profit/loss for the year	26.4	–39.7	–28.0
Total	26.4	–39.7	–28.0
Opening equity	300.6	320.7	316.2
Closing equity	324.9	300.6	302.8
Return on equity (average of the four last quarters)	12,1	–15,1	–9.3

Net debt Amounts in SEK million	September 30, 2020	September 30, 2019	December 31, 2019
Current borrowing	85.7	74.5	76.6
Non-current borrowing	45.0	47.0	46.5
Total liabilities	130.7	121.5	123.1
Cash and cash equivalents	70.0	36.9	40.2
Net debt	60.7	84.6	82.9

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 has been calculated as an average of the four last quarters.

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 businesses/subsidiaries and acquisition of intangible assets 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/loss 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/loss for the period for the last four quarters as a percentage of average equity.

Return on capital employed

Profit/loss for the period after financial items, with financial expenses, fair value losses and foreign exchange losses added back, for the four last quarters as a percentage of average capital employed.

Operating margin

Operating profit 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 an average of the four last quarters.

Profit margin

Profit before tax as a percentage of net sales.

Major shareholders, September 30, 2020
	Number of shares	Share, %
Karinen Family	1,769,552	21.5
Briban Invest AB	1,343,362	16.4
Peter Gyllenhammar AB	1,027,000	12.5
Avanza Pensionsförsäkring	580,613	7.1
Girell Family	403,800	4.9
Caceis Bank, Switzerland Branch	363,879	4.5
Malte Edenius	250,000	3.0
Nordnet Pensionsförsäkring AB	208,566	2.5
Leif Lundin	204,000	2.5
Bank Picted & CIE	110,000	1.3
Summa av de tio största ägarna - innehavsmässigt	6,260,772	76.2
Övriga aktieägare	1,957,839	23.8
Summa	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 technical platforms for handling, conditioning and volume reduction of radioactive waste. The company has over 70 years nuclear technology and radiological service experience. Studsvik has 517 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 (publ) SE-611 82 Nyköping Telephone +46 155 22 10 00 www.studsvik.com