Studsvik — Interim / Quarterly Report 2021

Oct 21, 2021

THIRD QUARTER – 2021

Highlights in the quarter

• A contract for materials testing with an order value of about SEK 40 million was signed with a Chinese customer.
• An agreement was signed on the sale of an area of land on the Studsvik site. The transaction had an impact on earnings of SEK 11.5 million and a cash flow effect of SEK 16 million in the third quarter.

		Quarter	9 months	Full year
		Q3 2021 Q3 2020	2021	2020	2020
Sales, SEK million	181.8	187.7	545.8	508.4	721.9
Operating profit, SEK million	21.9	23.1	47.3	36.2	46.0
Operating margin, %	12.1	12.3	8.7	7.1	6.4
Profit after tax, SEK million	14.7	18.7	30.2	26.4	35.2
Free cash flow, SEK million	43.5	–9.9	36.5	25.2	64.9
Net debt, SEK million	–7.5	60.7	–7.5	60.7	24.8
Net debt/equity ratio, %	–2.2	18.7	–2.2	18.7	7.9
Profit per share after tax, SEK	1.79	2.28	3.67	3.21	4.28
Equity per share, SEK	42.33	39.53	42.33	39.53	38.13

THE GROUP

SALES

Sales fell in the third quarter to SEK 181.8 (187.7) million but during the year to date increased to SEK 545.8 (508.4) million. In local currencies this was a decrease of 2 and an increase of 10 per cent respectively. The decreased sales in the quarter are mainly due to low license sales in Scandpower.

PROFIT

Operating profit for the third quarter amounted to SEK 21.9 (23.1) million and for the year to date was SEK 47.3 (36.2) million. Excluding items affecting comparability, operating profit in the quarter deteriorated to SEK 10.5 (23.1) million, while operating profit to date during the year has remained approximately unchanged, SEK 35.8 (36.2) million.

The operating margin excluding items affecting comparability was 5.8 (12.3) per cent for the quarter and 6.6 (7.1) per cent during the year to date.

Net financial income in the quarter amounted to SEK –1.6 (–1.3) million and during the year to date SEK –3.9 (–2.6) million. Profit after tax in the quarter was SEK 14.7 (18.7) million and during the year to date SEK 30.2 (26.4) million.

CASH FLOW AND FINANCING

The free cash flow amounted to SEK 43.5 (–9.9) million for the quarter and for the year to date SEK 36.5 (25.2) million. The Group's cash and cash equivalents at the close of the quarter amounted to SEK 95.4 (70.0) million. The unutilized portion of the overdraft facility was 57.1 (16.3) million.

INVESTMENTS

Investments in the quarter increased to SEK 18.6 (5.9) million and during the year to date SEK 40.9 (15.5) million. The investments are mainly related to Fuel and Materials Technology and infrastructure at the Studsvik site.

FINANCIAL POSITION AND LIQUIDITY

Net interest-bearing debt decreased to SEK –7.5 (60.7) million. The net debt/equity ratio at the close of the quarter was –2.2 (18.7) per cent.

PERSONNEL

The average number of employees increased slightly to 524 (517).

BUSINESS AREAS

DECOMMISSIONING AND RADIATION PROTECTION SERVICES

Sales in the third quarter were SEK 90.3 (87.5) million and during the year to date SEK 255.1 (216.8) million, which in local currencies meant an increase of 5 and 22 per cent respectively.

The operating profit for the quarter improved to SEK 11.3 (8.3) million and during the year to date amounted to SEK 29.4 (10.1) million, which means an operating margin of 12.5 (9.5) and 11.5 (4.7) per cent.

Major maintenance outages were carried out in both Germany and Switzerland. The German maintenance outages are now completed while the work in Switzerland will continue into the next quarter.

The improved profitability is due to a high billed time ratio in all areas of operation as well as improved commercial terms. Work is in progress to transfer resources to the growing decommissioning area, since maintenance outages are being phased out in Germany as nuclear power plants will be closed next year.

FUEL AND MATERIALS TECHNOLOGY

Sales in the third quarter amounted to SEK 56.5 (44.7) million and during the year to date amounted to SEK 185.0 (153.0) million. In local currencies this was an increase of 26 and 21 per cent respectively.

Transport has become an increasingly important part of operations to enable shipment of material to Studsvik for testing. During the year staffing has been augmented with additional expertise in this area. During the quarter the first shipment of irradiated material from China was completed. This shipment is part of a new contract with a Chinese customer for materials testing. The order value corresponds to about SEK 40 million and testing will start in the latter part of the year. Another shipment of material from South Korea is expected to arrive at Studsvik before the end of the year.

A set of medical isotopes was produced and delivered to the end customer during the quarter and another set will be produced during the year.

Operating profit for the quarter amounted to SEK 3.8 (2.9) million and for the year to date was SEK 19.7 (18.4) million. The operating margin for the quarter was 6.7 (6.5) per cent and 10.6 (12.0) per cent for the year to date.

SCANDPOWER

Sales fell in the third quarter to SEK 22.5 (41.2) million and amounted to SEK 68.4 (91.7) million in the year to date. In local currencies this means a decrease for the quarter of 44 per cent and 22 per cent for the year to date. During the quarter license sales were considerably lower than in the previous year. Sales activities are in progress to finalize a number of license transactions.

Operating profit for the quarter deteriorated to SEK –0.6 (11.1) million and in the year to date was SEK –2.6 (12.8) million. The operating margin was –2.7 (26.9) and –3.8 (14.0) per cent respectively.

Continued strained trade relations between China and the USA create uncertainty concerning new license business in the Chinese market. New markets continue to be addressed and participation in efforts to develop new reactor concepts are ongoing

WASTE MANAGEMENT TECHNOLOGY

Sales in the quarter decreased to SEK 9.3 (11.5) million and during the year to date were SEK 25.8 (37.5) million. The agreement with UK Nuclear Waste Management (LLWR) expired at the end of June. The profit share from this partnership amounted to SEK 2.2 (1.4) million in the quarter and SEK 6.1 (4.4) million for the year to date.

Operating profit for the quarter amounted to SEK –0.8 (2.2) million and for the year to date was SEK –2.3 (3.0) million.

A new agreement was signed for a conceptual design study for waste treatment. This study is a first step towards a larger licensing potential.

There is a global need for safe treatment and volume reduction of radioactive waste before interim or final disposal. Waste Management Technology has therefore developed inDRUM – a technology with associated expertise for this purpose.

12 OPERATING PROFIT MSEK

-5

PARENT COMPANY

Operations in the parent company consist of coordination of the Group. Sales in the quarter amounted to SEK 2.8 (3.7) million and during the year to date amounted to SEK 8.1 (10.5) million. Operating profit for the third quarter amounted to SEK –2.4 (–1.4) million and for the year to date was SEK –8.9 (–7.2) million.

Profit/loss after financial items in the quarter was SEK 2.1 (–2.6) million and during the year to date was SEK 2.2 (–6.2) million. Net financial income for the quarter includes revaluation of intra-group loans by SEK 3.4 (–2.2) million and for the three first quarters SEK 8.0 (–2.2) million. Cash and cash equivalents including current investments at the close of the quarter amounted to SEK 0 (0) million and interest-bearing liabilities to SEK 87.9 (130.7) 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.

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. None of the new standards and revisions of standards and interpretations to be applied to the financial year starting on January 1, 2021, and that were not already applied when preparing the 2020 Annual Report, have had any material effect on the accounts.

Stockholm, October 21, 2021

Camilla Hoflund President/CEO

Nyköping, April 29, 2021

Camilla Hoflund President/CEO

REVIEW REPORT

To the Board of Directors of Studsvik AB (publ.) Corp. id. 556501-0997

Introduction

We have reviewed the condensed interim financial information (interim report) of Studsvik AB (publ.) as of 30 September 2021 and the nine-month period then ended. The Board of Directors and the Managing Director are responsible for the preparation and presentation of this interim report in accordance with IAS 34 and the Annual Accounts Act. Our responsibility is to express a conclusion on this interim report based on our review.

Scope of review

We conducted our review in accordance with International Standard on Review Engagements ISRE 2410 Review of Interim Financial Information Performed by the Independent Auditor of the Entity. A review of interim financial information 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 and other generally accepted auditing practices and consequently does 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, for the Group in accordance with IAS 34 and the Annual Accounts Act, and for the Parent Company in accordance with the Annual Accounts Act.

Stockholm, October 21, 2021

KPMG AB Helena Arvidsson Älgne Authorized Public Accountant

Time Schedule for Financial Information

Year-end Report 2021 February, 2022

For further information, please contact

Niklas Karlsson, Chief Financial Officer, tel +46 (0)76 002 10 53 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 21 at 1:30 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 Markets Act. The information was released for public disclosure, through the agency of the contact persons above, on October 21, 2021, at 12:00 am CET.

CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME

	Quarter			9 months
Amounts in SEK million	Q3 2021	Q3 2020	2021	2020	2020
Net sales	181.8	187.7	545.8	508.4	721.9
Cost of services sold	–140.4	–133.9	–421.3	–378.0	–526.9
Gross profit	41.4	53.8	124.5	130.4	195.0
Selling and marketing expenses	–8.2	–8.0	–24.5	–27.5	–56.1
Administrative expenses	–21.9	–19.7	–62.8	–60.6	–89.2
Research and development costs	–2.5	–1.7	–6.6	–5.9	–8.3
Share in earnings from associated companies	2.1	1.1	6.0	4.0	3.4
Other operating income	15.7	2.4	18.9	5.3	5.4
Other operating expenses	–4.7	–4.8	–8.2	–9.5	–4.2
Operating profit	21.9	23.1	47.3	36.2	46.0
Financial income	0.0	0.2	0.2	2.6	1.3
Financial expenses	–1.6	–1.5	–4.1	–5.2	–6.0
Profit/loss before tax	20.3	21.8	43.4	33.6	41.3
Income tax	–5.6	–3.1	–13.2	–7.2	–6.1
NET PROFIT/LOSS FOR THE PERIOD	14.7	18.7	30.2	26.4	35.2
Other comprehensive income Items that may later be reversed in the income statement
Translation differences on foreign subsidiaries	5.5	–4.3	12.5	–4.3	–24.6
Cash flow hedging	–	–	–	0.0	0.1
Income tax on items recognized in other comprehensive income	–	–	–	–	–
Other comprehensive income for the period. net after tax	5.5	–4.3	12.5	–4.3	–24.5
Total profit/loss and other comprehensive income for the period	20.2	14.4	42.7	22.1	10.7
Income for the period attributable to
Parent company's shareholders	14.7	18.7	30.2	26.4	35.2
Non-controlling interests	–	–	–	–	–
Total comprehensive income attributable to
Parent company's shareholders	20.2	14.4	42.6	22.1	10.8
Non-controlling interests	0.0	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	1.79	2.28	3.67	3.21	4.28
Earnings per share (There is no dilution effect)	1.79	2.28	3.67	3.21	4.28

GROUP STATEMENT OF FINANCIAL POSITION

Amounts in SEK million	September 30, 2021	September 30, 2020	December 31, 2020
ASSETS
Intangible assets	189.2	195.3	184.5
Property, plant and equipment	155.0	135.2	134.6
Other non-current assets	162.9	173.0	162.0
Total non-current assets	507.1	503.5	481.1
Inventories	3.2	2.4	2.1
Trade receivables	103.9	168.9	116.9
Other current receivables	75.7	77.3	85.2
Cash and cash equivalents	95.4	70.0	75.2
Total current assets	278.2	318.6	279.4
TOTAL ASSETS	785.3	822.1	760.5
EQUITY AND LIABILITIES
Equity attributable to parent company's shareholders	347.5	324.5	313.1
Non-controlling interests	0.4	0.4	0.3
Total equity	347.9	324.9	313.4
Borrowing	43.0	45.0	44.5
Provisions and other non-current liabilities	138.5	150.3	137.1
Total non-current liabilities	181.5	195.3	181.6
Trade and other payables	211.0	216.2	210.0
Borrowing	44.9	85.7	55.5
Total current liabilities	255.9	301.9	265.5
TOTAL EQUITY AND LIABILITIES	785.3	822.1	760.5

CHANGES IN EQUITY

Amounts in SEK million	Share capital	Other contributed capital	Reserves	Retained earnings	Equity attribu table to the parent company's shareholders	Non-control ling interest	Total equity
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	–	22.1
Equity at September 30, 2020	8.2	225.3	34.1	57.0	324.5	0.4	324.9
Changes October 1 – December 31, 2020
Comprehensive income for the period	–	–	–20.3	8.8	–11.4	–0.1	–11.5
Equity at December 31, 2020	8.2	225.3	13.8	65.8	313.1	0.3	313.4
Changes January 1 – September 30, 2021
Comprehensive income for the period	–	–	12.4	30.2	42.6	0.1	42.7
Dividend	–	–	–	–8.2	–8.2	–	–8.2
Equity at September 30, 2021	8.2	225.3	26.2	87.8	347.5	0.4	347.9

GROUP STATEMENT OF CASH FLOW

		Quarter 9 months			Full year
Amounts in SEK million	Q3 2021	Q3 2020	2021	2020	2020
Cash flow from operating activities
Operating profit	21.9	23.1	47.3	36.2	46.0
Adjustment for non-cash items	–8.5	6.8	–1.9	15.3	24.6
Financial items, net	–1.5	–1.0	–3.8	–3.2	–5.1
Income tax paid	–1.9	–1.9	–5.4	–5.5	–7.6
Cash flow from operating activities before change in working capital	10.0	27.0	36.2	42.8	57.9
Change in working capital	34.1	–31.1	19.7	–15.6	25.7
Cash flow from operating activities	44.1	–4.1	55.9	27.2	83.6
Investing activities
Acquisition of property, plant and equipment	–18.6	–5.9	–40.9	–15.5	–23.0
Disposal of non-current assets	16.3	–	16.4	–	–
Dividend from associated companies	2.0	0.1	8.4	13.5	12.9
Other cash flow from investing activities	–0.3	–	–3.3	–	–8.6
Cash flow from investment activities	–0.6	–5.8	–19.4	–2.0	–18.7
Free cash flow	43.5	–9.9	36.5	25.2	64.9
Financing activities
Change in borrowing	–32.8	5.2	–11.7	4.9	–26.9
Dividend	–8.2	–	–8.2	–	–
Cash flow from financing activities	–41.0	5.2	–19.9	4.9	–26.9
Changes in cash and cash equivalents	2.5	–4.8	16.6	30.1	38.0
Cash and cash equivalents at the beginning of the period	86.9	75.3	75.2	40.2	40.2
Translation difference	6.0	–0.5	3.6	–0.3	–3.0
Cash and cash equivalents at the end of the period	95.4	70.0	95.4	70.0	75.2

FINANCIAL RATIOS FOR THE GROUP

	September 30,	September 30,	Full year
Amounts in SEK million	2021	2020	2020
Margins
Operating margin, %	8.7	7.1	6.4
Profit margin, %	8.0	6.6	5.7
Return on investment
Return on capital employed, %	12.9	14.9	11.3
Return on equity, %	11.8	12.1	11.4
Capital structure
Capital employed	435.8	455.6	413.4
Equity	347.9	324.9	313.4
Net debt	–7.5	60.7	24.8
Net debt/equity ratio, %	–2.2	18.7	7.9
Equity/assets ratio, %	44.3	39.5	41.2
Employees
Average number of employees	524	517	516
Net sales per employee	1.4	1.3	1.4

Data per share

	Quarter		9 months	Full year
	Q3 2021	Q3 2020	2021	2020	2020
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	1.79	2.28	3.67	3.21	4,28
Equity per share, SEK	42.33	39.53	42.33	39.53	38.13

NET SALES PER GEOGRAPHICAL AREA

	Quarter		9 months	Full year
Amounts in SEK million	Q3 2021	Q3 2020	2021	2020	2020
Sweden	32.2	22.0	96.4	77.9	110.8
Germany	54.1	75.8	199.9	197.7	274.6
The rest of Europe	70.2	45.6	179.4	132.0	187.3
North America	14.3	31.3	35.1	68.3	89.1
Asia	11.0	13.0	35.0	32.3	60.1
Other	–	–	–	0.3	–
Total	181.8	187.7	545.8	508.4	721.9

QUARTERLY REVIEW

		2019		2020			2021
Amounts in SEK million	Q1	Q2	Q3	Q4	Q1	Q2	Q3	Q4	Q1	Q2	Q3	Q4
Net sales	139.9	160.3	151.2	202.6	152.9	167.8	187.7	213.5	162.8	201.2	181.8
Operating expenses	–158.5	–168.4	–155.3	–182.2	–149.4	–158.2	–164.6	–203.7	–154.8	–183.9	–159.9
Operating profit	–18.6	–8.1	–4.1	20.4	3.5	9.6	23.1	9.8	8.0	17.3	21.9
Financial items, net	–4.7	–1.1	–0.2	–6.4	0.5	–1.8	–1.3	–2.1	–1.0	–1.4	–1.6
Profit/loss after financial items	–23.3	–9.2	–4.3	14.0	4.0	7.8	21.8	7.7	7.0	15.9	20.3

FINANCIAL DATA PER SEGMENT

	Quarter		9 months	Full year
Amounts in SEK million	Q3 2021	Q3 2020	2021	2020	2020
DECOMMISSIONING & RADIATION PROTECTION SERVICES
External sales revenue	90.3	87.5	255.1	216.8	293.2
Operating profit	11.3	8.3	29.4	10.1	17.4
Assets	248.2	247.2	248.2	247.2	217.4
Liabilities	199.5	224.0	199.5	224.0	191.3
Investments	0.7	0.9	2.8	1.3	1.8
Average number of employees	332	328	334	328	329
FUEL AND MATERIALS TECHNOLOGY
External sales revenue	56.5	44.7	185.0	153.0	224.3
Operating profit	3.8	2.9	19.7	18.4	34.0
Assets	186.5	201.2	186.5	201.2	194.2
Liabilities	147.4	157.0	147.4	157.0	158.7
Investments	10.4	3.0	23.5	8.8	15.4
Average number of employees	119	110	120	110	111
SCANDPOWER
External sales revenue	22.5	41.2	68.4	91.7	125.6
Operating profit	–0.6	11.1	–2.6	12.8	17.2
Assets	142.4	158.2	142.4	158.2	161.9
Liabilities	34.1	46.1	34.1	46.1	54.5
Investments Average number of employees	0.1 37	0.1 35	1.1 37	0.7 35	0.7 36
WASTE MANAGEMENT TECHNOLOGY
External sales revenue	9.3	11.5	25.8	37.5	65.3
Operating profit	–0.8	2.2	–2.3	3.0	–1.5
Assets	141.3	166.0	141.3	166.0	129.5
Liabilities Investments	138.0 0.1	151.7 1.4	138.0 0.6	151.7 3.8	120.1 3.6
Average number of employees	15	28	15	25	22
OTHER
External sales revenue Operating profit	9.5 8.2	9.2 –1.4	31.8 3.1	30.5 –8.1	39.8 –21.1
Assets	376.4	378.5	376.4	378.5	354.4
Liabilities	227.9	247.4	227.9	247.4	219.4
Investments	7.3	0.5	12.9	0.9	1.5
Average number of employees	18	19	18	19	18
ELIMINATION
External sales revenue	–6.3	–6.4	–20.3	–21.1	–26.3
Operating profit	–	–	–	–	–
Assets	–309.5	–329.0	–309.5	–329.0	–296.9
Liabilities	–309.5	–329.0	–309.5	–329.0	–296.9
Investments	–	–	–	–	–
Average number of employees	–	–	–	–	–
GROUP
External sales revenue	181.8	187.7	545.8	508.4	721.9
Operating profit	21.9	23.1	47.3	36.2	46.0
Assets	785.3	822.1	785.3	822.1	760.5
Liabilities	437.4	497.2	437.4	497.2	447.1
Investments	18.6	5.9	40.9	15.5	23.0
Average number of employees	521	520	524	517	516

DATA PER SEGMENT CONT. – SALES PER GEOGRAPHICAL AREA

	Quarter		9 months		Full year
Amounts in SEK million	Q3 2021	Q3 2020	2021	2020	2020
DECOMMISSIONING AND RADIATION PROTECTION SERVICES
Sweden	–	–	–	–	–
Germany	51.2	71.8	186.8	177.9	247.1
The rest of Europe	39.1	15.9	68.3	38.6	46.1
North America	–	–	–	–	–
Asia	–	–	–	–	–
Other	–	–	–	0.3	–
Total	90.3	87.7	255.1	216.8	293.2
FUEL AND MATERIALS TECHNOLOGY
Sweden	20.3	12.9	55.6	41.6	61.9
Germany	1.1	1.7	4.1	8.1	12.9
The rest of Europe	22.4	19.5	82.5	63.1	97.9
North America	1.8	1.9	9.1	13.7	17.3
Asia	10.5	8.6	32.5	24.9	32.1
Other	–	–	–	–	–
Total	56.1	44.6	183.8	151.4	222.1
SCANDPOWER
Sweden	1.0	0.9	4.6	5.1	6.7
Germany	1.8	2.3	9.0	11.7	14.6
The rest of Europe	5.5	4.3	20.4	12.4	21.3
North America	11.5	27.0	24.1	48.8	65.6
Asia	0.5	4.4	2.3	6.2	7.4
Other	–	–	–	–	–
Total	20.3	38.9	60.4	84.2	115.6
WASTE MANAGEMENT TECHNOLOGY
Sweden	5.1	2.8	15.5	11.8	15.4
Germany	–	–	–	–	–
The rest of Europe	3.2	5.9	8.2	17.9	22.0
North America	1.0	2.4	1.9	5.7	6.2
Asia	–	–	0.2	1.2	20.6
Other	–	–	–	–	–
Total	9.3	11.1	25.8	36.6	64.2
OTHER
Sweden	5.8	5.4	20.7	19.4	26.8
Germany	–	–	–	–	–
The rest or Europe	–	–	–	–	–
North America	–	–	–	–	–
Asia	–	–	–	–	–
Other	–	–	–	–	–
Total	5.8	5.4	20.7	19.4	26.8
THE GROUP
Sweden	32.2	22.0	96.4	77.9	110.8
Germany	54.1	75.8	199.9	197.7	274.6
The rest of Europe	70.2	45.6	179.4	132.0	187.3
North America	14.3	31.3	35.1	68.2	89.1
Asia	11.0	13.0	35.0	32.3	60.1
Other	–	–	–	0.3	–
Total	181.8	187.7	545.8	508.4	721.9

PARENT COMPANY INCOME STATEMENT

	Quarter		9 months	Full year
Amounts in SEK million	Q3 2021	Q3 2020	2021	2020	2020
Net sales	2.8	3.7	8.1	10.5	11.1
Cost of services sold	–	–	–	–	–
Gross profit	2.8	3.7	8.1	10.5	11.1
Other operating income and costs	–5.2	–5.1	–17.0	–17.7	–32.3
Operating profit	–2.4	–1.4	–8.9	–7.2	–21.2
Result from participations in Group companies	–	–	–	–	168.3
Net financial items	4.5	–1.2	11.1	1.0	–10.1
Profit/loss before tax	2.1	–2.6	2.2	–6.2	137.0
Income tax	–0.4	0.6	–0.4	1.4	0.5
NET PROFIT/LOSS FOR THE PERIOD	1.7	–2.0	1.8	–4.8	137.5

PARENT COMPANY BALANCE SHEET

Amounts in SEK million	September 30, 2021	September 30, 2020	December 31, 2020
ASSETS
Intangible assets	–	–	–
Financial non-current assets	545.4	567.9	541.5
Total non-current assets	545.4	567.9	541.5
Current assets	2.7	2.3	170.2
Cash and cash equivalents	–	–	–
Total current assets	2.7	2.3	170.2
TOTAL ASSETS	548.1	570.2	711.7
EQUITY AND LIABILITIES
Restricted equity	233.5	233.5	233.5
Non-restricted equity	9.2	–126.6	15.7
TOTAL EQUITY	242.7	106.9	249.2
Non-current liabilities	125.8	128.0	117.6
Current liabilities	179.6	335.3	344.9
Total liabilities	305.4	463.3	462.5
TOTAL EQUITY AND LIABILITIES	548.1	570.2	711.7

RECONCILIATIONS OF KEY RATIOS

Return on capital employed

Amounts in SEK million	September 2021	September 2020	Full year 2020
Profit/loss after financial items	43.4	33.6	41.3
Financial costs according to the income statement	4.1	5.2	6.0
Total	47.5	38.8	47.3
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
Opening capital employed	455.6	422.1	425.9
Balance sheet total	785.3	822.1	760.5
Provisions and other long-term liabilities	–138.5	–150.3	–137.1
Trade and other payables	–211.0	–216.2	–210.0
Closing capital employed	435.8	455.6	413.4
Average capital employed	431.8	441.0	419.7
Return on capital employed	12.9	14.9	11.3

Return on equity

Amounts in SEK million	September 2021	September 2020	Full year 2020
Net profit/loss for the year	30.2	26.4	35.2
Total	30.2	26.4	35.2
Opening equity	324.9	300.6	302.8
Closing equity	347.9	324.9	313.4
Return on equity	11.8	12.1	11.4

Net debt

Amounts in SEK million	September 30, 2021	September 30, 2020	December 31, 2020
Current borrowing	44.9	85.7	55.5
Non-current borrowing	43.0	45.0	44.5
Total liabilities	87.9	130.7	100.0
Cash and cash equivalents	95.4	70.0	75.2
Net debt	–7.5	60.7	24.8

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 changes in working capital) including 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, 2021

	Number of shares	Share. %
Karinen Family	1,769,552	21.5
Briban Invest AB	1,343,362	16.4
Peter Gyllenhammar AB	1,070,000	13.0
Avanza Pensionsförsäkring AB	484,489	5.9
Caceis Bank. Switzerland Branch	363,879	4.4
Girell Family	360,800	4.4
Malte Edenius	245,937	3.0
Banque Pictet & CIE	220,000	2.7
Leif Lundin	206,500	2.5
Per Lindstedt	162,828	2.0
Total 10 largest shareholders	6,227,347	75.8
Other shareholders	1,991,264	24.2
Total amount shares	8,218,611	100.0

THE STUDSVIK SHARE

STUDSVIK'S VALUE CHAIN

Studsvik offers services in various parts of the nuclear power lifecycle, from new construction to final disposal. The customers are represented by fuel manufacturers, nuclear power producers, public agencies, research centers and other nuclear facilities.

STUDSVIK IN BRIEF

Studsvik offers a range of advanced technical services to the global nuclear power industry. Studsvik's focus areas are fuel and materials technology, reactor analysis software and fuel optimization, decontamination and radiation protection services, as well as technical solutions for handling, conditioning and volume reduction of radioactive waste. The company has more than 70 years' experience of nuclear technology and radiological services. Studsvik has 510 employees in 7 countries and the company's shares are listed on Nasdaq Stockholm. On the right there is a brief description of our offers in the various business areas.

Decommissioning and Radiation

Protection Services offers services in radiation protection, decommissioning, decontamination and engineering. Decommissioning services cover planning, project management and practical work such as radiological assessment, radiological clearance of material and waste documentation. The work is carried out at customer sites around Germany and to some extent also in Switzerland, the Netherlands and Belgium.

Fuel and Materials Technology offers services in nuclear fuel qualification, analysis of material, research on final disposal, packaging of medical isotopes and advanced consultancy services. Testing and analysis operations are conducted at Studsvik's facility in Sweden and sometimes in collaboration with international partners.

Scandpower is a world-leader in software for fuel optimization. The total software offer includes services throughout the value chain. The software development is based in the USA and sales are through offices in Europe, the USA, Japan and China.

Waste Management Technology offers

licensing of technical solutions to stabilize and reduce the volume of radioactive waste before intermediate and final disposal. The patented technical solutions are offered together with specialist services to optimize the customer's operational waste management and decommissioning.

Studsvik AB (publ) • 611 82 Nyköping • Tel +46 155-22 10 00 • www.studsvik.se