Studsvik — Interim / Quarterly Report 2023

Oct 20, 2023

THIRD QUARTER 2023

QUARTER IN BRIEF

• The operating profit for the Group was SEK 22.9 million compared with SEK 26.1 million in the previous year.
• High capacity utilization in Decommissioning and Radiation Protection Services.
• During the quarter the Waste Management Technology business area signed a strategic agreement with GNS in Germany for treatment of waste.
• Sale of an area of land on the Studsvik site was completed in the quarter with an impact on earnings of SEK 5.0 million.
• Studsvik has entered into a cooperation agreement with Kärnfull Next to carry out a feasibility study aimed at investigating the possibility of establishing SMRs on the Studsvik site.

		Quarter	9 months	Full year
	Q3 2023	Q3 2022	2023	2022	2022
Sales, SEK million	195.2	195.3	597.6	586.2	814.8
Operating profit, SEK million	22.9	26.1	44.8	41.3	74.9
Operating margin, %	11.7	13.4	7.5	7.0	9.2
Profit after tax, SEK million	15.9	22.6	30.1	25.9	47.9
Free cash flow, SEK million	–23.4	–6.6	12.0	–80.6	–17.6
Net debt, SEK million	–9.6	38.0	–9.6	38.0	–18.9
Net debt/equity ratio, %	–2.1	8.9	–2.1	8.9	–4.3
Profit per share after tax, SEK	1.93	2.75	3.67	3.15	5.82
Equity per share, SEK	54.49	51.65	54.49	51.65	53.05

THE GROUP IN SUMMARY

CEO'S COMMENTS

Studsvik reports a stable quarter, as interest in nuclear power grows

The climate crisis and future demand for electricity have characterized recent years' debate on the to-beor-not-to-be of nuclear power, as it offers fossil-free, effective and plannable energy production. With Studsvik's high-tech service offer in nuclear technology we are well-equipped to meet the opportunities that arise due to this increased interest.

Earnings trend

The Group reports lower earnings and cash flow than in the third quarter of the previous year.

The Decommissioning and Radiation Protection Services business area reports substantially improved performance, which is an effect of our increased customer relationship management, renegotiation of contracts and efficient personnel planning.

In the Fuel and Materials Technology business area delayed fuel transports are a reality. The management has therefore adjusted operations for the autumn, to deliver to a greater extent from the existing backlog. During the quarter we sold land on the Studsvik site, which had a good, extraordinary effect on earnings.

License revenues in the Scandpower business area are by their nature unevenly spread between quarters. During the third quarter license revenues were lower and in combination with delays of new orders for consulting services this gave earnings that are lower than the corresponding quarter last year, but on a level with the first quarter of this year.

The Waste Management Technology business area recently signed a strategically exclusive cooperation for waste treatment with GNS Gesellschaft für Nuklear-Service mbH in Germany. The business area also reports a positive impact on earnings from license sales, and we see opportunities to expand this area. However, delays continue in orders for new engineering services.

Focus on nuclear power and SMRs

In 2023 politicians, media and public opinion have increasingly focused on nuclear power as a source of energy, both in Sweden and internationally. Studsvik's view of the growing role of nuclear power in the green transition is of course positive, since it contributes to fossil free, efficient and plannable electricity production. The growing interest in nuclear power has led among other things to more companies contacting Studsvik to explore the possibilities of building Small Modular Reactors (SMRs) on the Studsvik site. As previously announced, such a feasibility study is currently being carried out by Kärnfull Next.

The Studsvik site is classic territory for nuclear technology, with existing facilities, licenses, its own harbor and access to cooling water. Until 2005 there was a research reactor in operation here and the site has infrastructure adapted to nuclear activities. The area is strategically located in bidding zone 3, close to municipalities and industries with substantially growing energy needs. Consequently, the Studsvik site has the potential to be home to Sweden's next nuclear power plant and contribute to fossil free operations in Nyköping and neighboring municipalities.

If SMRs are established on the Studsvik site, Studsvik's role will be to make land available and contribute with its expertise in various areas – not to build or operate nuclear power plants on its own. Nor do we intend to finance the construction of any new reactors on Studsvik's land. However, we will regularly adapt our existing services to also include SMRs and other new reactor types. Read more on Studsvik's approach to nuclear power and SMRs on our website (studsvik.com) under "About us".

Studsvik operates at all stages of the nuclear power lifecycle and has good prospects of continued development that also includes the new emerging nuclear power initiatives. In summary, I am very optimistic about Studsvik's future.

Camilla Hoflund CEO

FINANCIAL DEVELOPMENT

SALES

Sales during the quarter were SEK 195.2 (195.3) million, which is in line with the previous year and for the first nine months sales increased to SEK 597.6 (586.2) million. In local currencies this was a decrease of 5.3 per cent and 2.9 per cent respectively.

PROFIT

The operating profit for the quarter was SEK 22.9 (26.1) million and during the year to date amounted to SEK 44.8 (41.3) million, which means an operating margin of 11.7 (13.4) and 7.5 (7.0) per cent respectively. During the quarter an area of land on the Studsvik site was sold, which had a positive impact on earnings of SEK 5.0 million. Excluding items affecting comparability, profit for the quarter amounted to SEK 17.9 (21.6) million and for the first nine months to SEK 39.8 (36.8) million.

CASH FLOW

The free cash flow was SEK –23.4 (–6.6) million for the quarter and SEK 12.0 (–80.6) million for the first nine months. The deterioration in cash flow in the quarter is mainly due to increased investments and purchased cobalt.

INVESTMENTS

Investments in the quarter increased to SEK 13.0 (5.6) million and during the year to date amounted to SEK 31.1 (19.5) million. The investments are related to replacement investments in the Fuel and Materials Technology and Waste Management Technology for configuration of a demonstration facility for inDRUM technology.

FINANCIAL POSITION AND LIQUIDITY

At the end of September 2023 the Group's cash and cash equivalents amounted to SEK 92.6 (94.3) million. The overdraft facility amounts to SEK 100 million and the unutilized portion was SEK 76.9 (33.8) million. At the end of September the Group's net cash balance was SEK 9.6 million (net debt SEK 38.0 million). The net debt/equity ratio was –2.1 (8.9) per cent and the equity/assets ratio was 44.2 (41.6) per cent.

BUSINESS AREAS

DECOMMISSIONING AND RADIATION PROTECTION SERVICES

Sales in the quarter increased to SEK 86.1 (72.7) million and for the first nine months to SEK 263.1 (222.2) million. In local currencies this means an increase for the quarter and the first nine months of 6.6 per cent and 8.7 per cent respectively.

The operating profit for the quarter increased to SEK 5.0 (1.7) million and for the year to date to SEK 19.0 (6.9) million, which means an operating margin of 5.9 (2.3) and 7.2 (3.1) per cent respectively.

All in all a very strong quarter with good demand in the German and Swiss market. Outage work carried out in Germany and Switzerland and stable staff capacity utilization in Germany during the first nine months contributed to sound progress in decommissioning projects, which in turn resulted in a considerably improved performance.

The Decommissioning and Radiation Protection Services business area is a leading supplier of services to the nuclear power industry in radiation protection, decommissioning, decontamination and engineering. In the area of decommissioning, we offer the entire chain from planning and project management to radiological assessments, radiological clearance of material and waste documentation. The work is carried out at the customers' facilities around Germany and to some extent also in Switzerland, the Netherlands and Belgium.

FUEL AND MATERIALS TECHNOLOGY

Sales increased in the quarter by 2.6 per cent to 68.1 (66.4) million and decreased during the year to date by 8.6 per cent to SEK 214.8 (235.0) million.

The operating profit in the quarter increased to SEK 16.9 (11.7) million and decreased in the first nine months to SEK 29.8 (36.9) million. The operating margin was 24.9 (17.6) and 13.9 (15.7) per cent respectively.

Sales and profit in the beginning of the year were impacted negatively by revenue losses due to delayed fuel shipments, caused in turn by delayed regulatory licensing. This has resulted in shifts in customer projects, where we now adapt operations from having planned shipments and subsequent volume campaigns to focusing instead more on piece by piece and advanced testing. This has had a positive impact on earnings in the quarter.

During the quarter the business area benefited from a positive impact on earnings of SEK 5.0 million from the sale of land on the Studsvik site. Excluding items affecting comparability, profit for the quarter amounted to SEK 11.9 (7.2) million and for the first nine months to SEK 24.8 (32.4) million.

Operating profit

MSEK

Operating profit

The business area 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, sometimes in collaboration with international partners. We provide solutions to our customers by combining our expertise, unique facilities and external networks.

BUSINESS AREAS

SCANDPOWER

Sales decreased to SEK 32.0 (39.9) million in the quarter and in the year to date amount to SEK 99.7 (93.1) million. In local currencies this means a decrease for the quarter of 22.3 per cent and increase in the first nine months of 1.2 per cent.

The operating profit for the quarter decreased to SEK 0.1 (10.6) million and to SEK 7.0 (7.8) million for

the first nine months, which means an operating margin of 0.3 (26.6) and 7.1 (8.4) per cent respectively. The lower sales and earnings in the quarter are due to a smaller share of license sales and engineering services. The lower demand for engineering services in the quarter is because some customer projects were postponed to the fourth quarter.

Operating profit

The Scandpower business area is a world-leader in development and support of software for reactor analysis that is independent of fuel suppliers. We offer a complete suite of licensed software and engineering services. Our products are used throughout the world for reactor fuel and core construction, analysis and operational support.

WASTE MANAGEMENT TECHNOLOGY

Sales for the quarter were SEK 12.6 (17.5) million and for the first nine months SEK 28.9 (42.1) million, a decrease in local currencies of 31.8 and 34.1 per cent respectively.

The operating profit for the quarter increased to SEK 4.6 (1.0) million and for the year to date amounted to SEK 0.6 (–5.5) million.

A license sale was made in the quarter, as part of the long-term agreement signed in the fourth quarter of 2022 for development of a waste facility for contaminated metal waste in the United Kingdom. The decrease in sales is mainly due to a delayed customer order for engineering services and our changed business model, where we now focus on selling solutions without sub-consultants, which gives a better margin but smaller volumes.

A strategic agreement was signed with GNS in Germany during the quarter. The agreement aims to further develop, qualify and implement Studsvik's patented inDRUM technology for the German market. Construction of a demonstration facility was started during the quarter for inDRUM technology on the Studsvik site.

Operating profit

The business area offers licensed technical solutions to stabilize and reduce the volume of radioactive waste before intermediate storage and final disposal. The technical solutions are offered together with engineering services so that our customers can operate the facilities themselves. We also provide expertise to optimize customers' waste management during operation and decommissioning.

OTHER

PARENT COMPANY

Operations in the parent company consist of coordination of the Group. Sales in the quarter amounted to SEK 2.1 (3.5) million and for the first nine months to SEK 6.4 (11.0) million. Operating profit for the quarter amounted to SEK –3.7 (0.5) million and for the first nine months to SEK –10.3 (–5.7) million.

The pre-tax profit for the quarter was SEK –4.3 (11.4) million and SEK 0.1 (29.5) million for the first nine months. Net financial includes revaluation of intra-group loans by SEK –2.1 (10.0) million for the quarter and by SEK 6.5 (24.5) million for the first nine months. Cash and cash equivalents, including current investments, amounted to SEK 7.5 (–) million, of which blocked funds were SEK 7.5 (–) million. The interest-bearing liabilities were SEK 64.4 (108.9) million.

SHAREHOLDERS

Information on our shareholders can be found at: https://www.studsvik.com/investors/the-studsvik-share/

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.

EVENTS AFTER THE BALANCE SHEET DAY

Studsvik's Chairman of the Board, Jan Bardell, will become the Working Chair of the Board, part time, as of October 20, 2023. The purpose of the change is that Jan will work actively on the enquiries Studsvik has received about building Small Modular Reactors (SMRs) on the Studsvik site outside Nyköping.

ACCOUNTING POLICIES

Studsvik applies International Financial Reporting Standards (IFRS) approved by the EU. This interim report for the Group has been prepared in accordance with IAS 34 Interim Financial Reporting and the Swedish Annual Accounts Act. For the Parent Company the Swedish Financial Reporting Board's recommendation RFR 2 Accounting for Legal Entities is applied. None of the new standards and revised standards and interpretations to be applied for financial years starting on or after January 1, 2023 that have not already been applied when preparing the annual report for 2022, have had any material effect on the accounts.

The total amounts in tables and statements may not always add up due to rounding differences. The aim is that each line item should correspond to its source and rounding differences may therefore arise in the total.

Nyköping October 20, 2023

Camilla Hoflund President and 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 2023 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 20, 2023

KPMG AB

Helena Arvidsson Älgne Authorized Public Accountant

CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME, IN SUMMARY

	Quarter		9 months		Full year
Amounts in SEK million	Q3 2023	Q3 2022	2023	2022	2022
Net sales	195.2	195.3	597.6	586.2	814.8
Cost of services sold	–139.6	–143.7	–453.7	–446.3	–610.5
Gross profit	55.6	51.6	144.0	139.9	204.3
Selling and marketing expenses	–13.1	–10.1	–38.1	–26.4	–37.7
Administrative expenses	–17.4	–17.2	–56.7	–67.1	–89.2
Research and development costs	–3.0	–2.0	–8.7	–5.8	–8.5
Impairment loss on trade receivables	–	0.0	–	0.0	–1.3
Share in earnings from associated companies	–0.1	–0.1	–0.3	–0.1	–0.2
Other operating income	2.7	10.0	9.1	11.5	13.8
Other operating expenses	–1.8	–6.1	–4.5	–10.7	–6.3
Operating profit	22.9	26.1	44.8	41.3	74.9
Financial income	0.5	2.5	1.5	4.9	4.0
Financial expenses	–2.3	–0.5	–10.1	–8.8	–14.8
Profit/loss before tax	21.0	28.1	36.2	37.5	64.1
Taxes	–5.2	–5.5	–6.1	–11.6	–16.2
NET PROFIT/LOSS FOR THE PERIOD	15.9	22.6	30.1	25.9	47.9
Other comprehensive income
Items that may later be reversed in the income statement
Translation differences on foreign subsidiaries	–6.4	18.6	11.9	42.6	36.0
Income tax on items recognized in other comprehensive income	–	–	–	–	–
Other comprehensive income for the period. net after tax	–6.4	18.6	11.9	42.6	36.0
Total profit/loss and other comprehensive income for the period	9.5	41.2	42.0	68.5	83.9
Income for the period attributable to
Parent company's shareholders	15.9	22.6	30.1	25.9	47.9
Non-controlling interests	–	–	–	–	–
Total comprehensive income attributable to
Parent company's shareholders	9.5	41.2	42.0	68.5	83.9
Non-controlling interests	–	–	–	–	–
Earnings per share calculated on income attributable to the parent compa ny's shareholders during the period. SEK	1.93	2.75	3.67	3.15	5.82
Earnings per share (There is no dilution effect)	1.93	2.75	3.67	3.15	5.82

GROUP STATEMENT OF FINANCIAL POSITION, IN SUMMARY

Amounts in SEK million	September 30, 2023	September 30, 2022	December 31, 2022
ASSETS
Intangible assets	210.0	207.3	206.8
Property, plant and equipment	232.6	209.0	211.1
Other non-current assets	210.4	223.0	217.2
Total non-current assets	653.0	639.3	635.1
Inventories	18.9	10.5	8.5
Trade receivables	133.3	168.4	156.9
Other current receivables	115.5	108.7	101.8
Cash and cash equivalents*	92.6	94.3	120.1
Total current assets	360.3	381.9	387.3
TOTAL ASSETS	1,013.3	1,021.2	1,022.4
EQUITY AND LIABILITIES
Equity attributable to parent company's shareholders	447.8	424.5	436.0
Non-controlling interests	–	–	–
Total equity	447.8	424.5	436.0
Liabilities to credit institutions, long-term	58.2	64.3	62.3
Provisions and other non-current liabilities	214.5	232.3	227.9
Total non-current liabilities	272.7	296.6	290.2
Trade and other payables	267.9	232.1	257.4
Liabilities to credit institutions, short term	24.9	67.9	38.9
Total current liabilities	292.8	300.0	296.3
TOTAL EQUITY AND LIABILITIES	1,013.3	1,021.2	1,022.4

*The Parent Company's cash and cash equivalents on the balance sheet date include escrow funds of SEK 7.5 million. Bank funds (escrow) refer to the purchase price for minority acquisition.

CHANGES IN EQUITY, IN SUMMARY

Amounts in SEK million	Share capital	Other contributed capital	Other reser ves	Retained earnings	Equity attribu table to the parent company's shareholders	Non-control ling interest	Total sha reholders equity
Opening balance at January 1, 2022	8.2	225.3	32.7	120.7	387.0	0.4	387.3
Changes January 1 - September 30, 2022
Other comprehensive income for the period	–	–	42.6	–	42.6	–	42.6
Acquisition of non-controlling interest	–	–	–	–14.5	–14.5	–0.4	–14.9
Dividend	–	–	–	–16.4	–16.4	–	–16.4
Net profit for the period	–	–	–	25.9	25.9	–	25.9
Closing balance at September 30, 2022	8.2	225.3	75.3	115.6	424.5	0.0	424.5
Opening balance at January 1, 2023	8.2	225.3	68.8	133.7	436.0	–	436.0
Changes January 1 - September 30, 2023
Other comprehensive income for the period	–	–	11.9	–	11.9	–	11.9
Acquisition of non-controlling interest	–	–	–	–13.8	–13.8	–	–13.8
Dividend	–	–	–	–16.4	–16.4	–	–16.4
Net profit for the period	–	–	–	30.1	30.1	–	30.1
Closing balance at September 30, 2023	8.2	225.3	80.8	133.6	447.8	–	447.8

GROUP STATEMENT OF CASH FLOW, IN SUMMARY

	Quarter			9 months
Amounts in SEK million	Q3 2023	Q3 2022	2023	2022	2022
Cash flow from operating activities
Operating profit	22.9	26.1	44.8	41.3	74.9
Adjustment for non-cash items	–1.9	–13.2	–7.6	–3.5	–0.3
Financial items. net	–1.5	0.2	–5.3	–2.7	–4.4
Income tax paid	–3.0	–1.9	–13.4	–8.1	–9.9
Cash flow from operating activities before change in working capital	16.5	11.2	18.6	27.0	60.2
Change in working capital	–27.0	–14.5	14.9	–95.1	–60.0
Cash flow from operating activities	–10.5	–3.3	33.5	–68.1	0.2
Investing activities
Acquisition of property, plant and equipment	–13.0	–3.5	–31.1	–19.4	–24.7
Disposal of non-current assets	0.1	–	9.6	6.9	6.9
Dividend from associated companies	–	–	–	–	–
Other cash flow from investing activities	–	0.2	–	0.0	–
Cash flow from investing activities	–12.9	–3.3	–21.5	–12.5	–17.8
Free cash flow	–23.4	–6.6	12.0	–80.6	–17.6
Financing activities
New loans	–	24.6	–	27.7	25.4
Amortization of loans	–2.4	–2.0	–11.7	–7.1	–11.1
Changed use of bank overdraft facility	22.9	7.6	–14.0	46.9	17.9
Dividend to shareholders	–	–	–16.4	–16.4	–16.4
Cash flow from financing activities	20.5	30.2	–42.2	51.1	15.8
Cash flow for the period	–2.9	23.6	–30.2	–29.5	–1.8
Cash and cash equivalents at start of the period	96.5	64.3	120.1	108.4	108.4
Exchange differences on cash and cash equivalents	–1.0	6.4	2.7	15.4	13.5
Cash and cash equivalents at the end of the period	92.6	94.3	92.6	94.3	120.1

NET SALES PER GEOGRAPHICAL AREA

	Quarter		9 months		Full year
Amounts in SEK million	Q3 2023	Q3 2022	2023	2022	2022
Sweden	34.7	33.9	118.7	124.8	170.7
Germany	73.0	62.7	229.9	191.1	256.7
The rest of Europe	47.3	43.1	125.6	127.1	184.2
North America	15.2	19.3	53.6	47.3	75.1
Asia	25.0	21.2	69.8	80.6	105.9
Other	0.0	15.3	0.0	15.3	22.2
Total	195.2	195.3	597.6	586.2	814.8

DATA PER SHARE

	Quarter		9 months	Fyll year
	Q3 2023	Q3 2022	2023	2022	2022
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 Earnings per share before and after dilution	8,218,611 1.93	8,218,611 2.75	8,218,611 3.67	8,218,611 3.15	8,218,611 5.82
Equity per share, SEK	54.49	51.65	54.49	51.65	53.05

FINANCIAL RATIOS FOR THE GROUP

	9 months	Full year
Amounts in SEK million	2023	2022	2022
Margins
Operating margin, %	7.5	7.0	9.2
Profit margin, %	6.1	6.4	7.9
Return on investment
Return on capital employed, %	15.3	20.4	15.6
Return on equity, %	11.7	18.2	11.6
Capital structure
Capital employed	530.9	556.8	537.1
Equity	447.8	424.5	436.0
Net debt	–9.6	38.0	–18.9
Net debt/equity ratio, %	–2.1	8.9	–4.3
Equity-asset ratio, %	44.2	41.6	42.6
Employees
Average number of employees	528	529	520
Net sales per employee	1.5	1.5	1.6

See Definitions of key figures and ratios for a definition of alternative performance measures

QUARTERLY REVIEW

		2021			2022			2023
Amounts in SEK million	Q1	Q2	Q3	Q4	Q1	Q2	Q3	Q4	Q1	Q2	Q3	Q4
Net sales	162.8	201.2	181.8	252.5	187.8	203.1	195.3	228.6	188.8	213.6	195.2
Operating expenses	–154.8	–183.9	–159.9	–214.0	–180.8	–194.9	–169.2	–195.1	–178.9	–201.6	–172.3
Operating profit	8.0	17.3	21.9	38.5	7.0	8.2	26.1	33.5	9.9	12.0	22.9
Financial items, net	–1.0	–1.4	–1.6	–4.3	–3.8	–2.0	2.0	–6.9	–4.4	–2.3	–1.9
Profit/loss after financial items	7.0	15.9	20.3	34.2	3.2	6.2	28.1	26.5	5.5	9.7	21.0

SEGMENT INFORMATION

	Quarter		9 months	Full year
Amounts in SEK million	Q3 2023	Q3 2022	2023	2022	2022
DECOMMISSIONING & RADIATION PROTECTION SERVICES
External sales revenue	86.1	72.7	263.1	222.2	292.7
Operating profit	5.0	1.7	19.0	6.9	10.3
Assets	267.5	270.1	267.5	270.1	256.9
Liabilities	193.5	216.7	193.5	216.7	199.2
		0.7
Investments Average number of employees	0.3 319	324	1.7 321	2.1 319	7.8 308
FUEL AND MATERIALS TECHNOLOGY
External sales revenue	68.1	66.4	214.8	235.0	322.9
Operating profit	16.9	11.7	29.8	36.9	52.5
Assets	507.9	481.3	507.9	481.3	511.7
Liabilities	299.1	286.1	299.1	286.1	322.9
Investments	11.7	8.9	29.9	22.5	27.8
Average number of employees	149	154	149	155	154
SCANDPOWER
External sales revenue	32.0	39.9	99.7	93.1	135.3
Operating profit	0.1	10.6	7.0	7.8	17.0
Assets	210.7	165.4	210.7	165.4	192.6
Liabilities	61.3	47.2	61.3	47.2	59.8
Investments	0.2	3.8	7.6	4.4	5.3
Average number of employees	42	40	42	39	42
WASTE MANAGEMENT TECHNOLOGY
External sales revenue	12.6	17.5	28.9	42.1	73.2
Operating profit	4.6	1.0	0.6	–5.5	5.7
Assets	171.4	170.0	171.4	170.0	175.9
Liabilities	163.2	161.9	163.2	161.9	157.9
		0.2
Investments	1.2		2.0	0.5	0.6
Average number of employees	9	9	9	9	9
OTHER
External sales revenue	2.5	3.1	7.5	10.4	14.4
Operating profit	–3.7	1.1	–11.6	–4.8	–10.6
Assets	311.3	296.3	311.3	296.3	309.7
Liabilities	303.8	246.8	303.8	246.8	270.8
Investments	0.0	0.3	0.0	0.3	0.3
Average number of employees	7	7	7	7	7
ELIMINATION
External sales revenue	–6.1	–4.5	–16.4	–16.6	–23.7
Operating profit	–	–	–	–	–
Assets	–455.4	–362.0	–455.4	–362.0	–424.3
Liabilities	–455.4	–362.0	–455.4	–362.0	–424.3
Investments	–	–	–	–	–
Average number of employees	–	–	–	–	–
GROUP
External sales revenue	195.2	195.3	597.6	586.2	814.8
Operating profit	22.9	26.1	44.8	41.3	74.9
		1,021.2
Assets	1,013.4		1,013.4	1,021.2	1,022.5
Liabilities	565.5	596.7	565.5	596.7	586.3
Investments	13.4	13.9	41.2	29.8	41.8
Average number of employees	526	534	528	529	520

DATA PER SEGMENT CONT. – SALES PER GEOGRAPHICAL AREA

Q3 2023 Q3 2022 2023 2022 2022 Amounts in SEK million DECOMMISSIONING AND RADIATION PROTECTION SERVICES Sweden – – – –
	–
Germany 61.9 56.9 203.2 173.1	232.0
The rest of Europe 23.4 15.8 58.3 49.1	59.7
North America – – – –	–
Asia – – – –	–
Other – – – –	–
Total 85.3 72.7 261.5 222.2	291.7
FUEL AND MATERIALS TECHNOLOGY
Sweden 31.2 24.9 106.2 84.1	119.1
Germany 8.2 3.7 19.5 11.5	16.8
The rest of Europe 11.3 15.1 32.4 57.3	75.7
North America 0.9 2.9 3.7 8.4	11.8
Asia 15.3 19.4 49.7 72.1	97.1
Other – – – –	–
Total 66.9 66.0 211.5 233.4	320.5
SCANDPOWER
Sweden 1.6 0.0 3.8 8.9	7.8
Germany 2.9 2.1 7.3 6.5	7.9
The rest of Europe 5.6 7.7 21.1 13.3	26.0
North America 10.6 11.9 43.5 34.2	54.8
Asia 9.8 1.9 20.1 8.5	8.7
Other 0.0 15.1 0.0 15.3	22.2
Total 30.4 38.7 95.7 86.7	127.4
WASTE MANAGEMENT TECHNOLOGY
Sweden 2.1 8.6 8.8 30.0	41.6
Germany – – – –	–
The rest of Europe 7.0 4.4 13.8 7.4	22.8
North America 3.6 4.5 6.4 4.7	8.5
Asia – – – –	0.0
Other – – – –	–
Total 12.7 17.5 29.0 42.1	73.0
OTHER
Sweden 0.0 0.3 0.0 1.8	2.2
Germany – – – –	–
The rest or Europe – – – –	–
North America – – – –	–
Asia – – – –	–
Other – – – –	–
Total 0.0 0.3 0.0 1.8	2.2
GROUP
Sweden 34.7 118.7 124.8 33.9	170.7
62.7 Germany 73.0 229.9 191.1	256.7
43.1 The rest of Europe 47.3 125.6 127.1	184.2
19.3 North America 15.2 53.6 47.3	75.1
21.2 Asia 25.0 69.8 80.6	105.9
Other 0.0 15.1 0.0 15.3	22.2
Total 195.2 195.3 597.6 586.2	814.8

PARENT COMPANY INCOME STATEMENT, IN SUMMARY

	Quarter		9 months	Full year
Amounts in SEK million	Q3 2023	Q3 2022		2022	2022
Net sales	2.1	3.5	6.4	11.0	10.5
Cost of services sold	–	–	–	–	–
Gross profit	2.1	3.5	6.4	11.0	10.5
Other operating income and expenses	–5.8	–3.0	–16.7	–16.7	–22.3
Operating profit	–3.7	0.5	–10.3	–5.7	–11.8
Result from participations in Group companies	–	–	–	8.2	10.1
Net financial items	–0.6	10.9	10.4	27.0	23.0
Profit/loss before tax	–4.3	11.4	0.1	29.5	21.3
Appropriations	–	–	–	–	–
Income tax	0.8	–2.0	0.1	–3.8	–2.5
NET PROFIT/LOSS FOR THE PERIOD	–3.5	9.4	0.2	25.7	18.8

PARENT COMPANY BALANCE SHEET, IN SUMMARY

Amounts in SEK million	September 30, 2023	September 30, 2022	December 31, 2022
ASSETS
Intangible assets	–	–	–
Financial non-current assets	595.0	573.2	572.2
Total non-current assets	595.0	573.2	572.2
Current assets	7.5	2.8	21.1
Cash and cash equivalents*	7.5	–	–
Total current assets	15.0	2.8	21.1
TOTAL ASSETS	610.0	576.1	593.3
EQUITY AND LIABILITIES
Restricted equity	233.5	233.5	233.5
Non-restricted equity	54.8	78.0	71.1
TOTAL EQUITY	288.3	311.5	304.6
Non-current liabilities	131.7	135.2	130.9
Current liabilities	190.1	129.4	157.8
Total liabilities	321.8	264.6	288.7
TOTAL EQUITY AND LIABILITIES	610.0	576.1	593.3

*The Parent Company's cash and cash equivalents on the balance sheet date include escrow funds of SEK 7.5 million. Bank funds (escrow) refer to the purchase price for minority acquisition.

RECONCILIATIONS OF KEY RATIOS

Return on capital employed

Amounts in SEK million	September 2023	September 2022	Full year 2022
Profit/loss after financial items	36.2	37.5	64.1
Financial expenses according to the income statement	10.1	8.8	14.8
Total	46.3	46.2	78.9
Balance sheet total	1 021.2	785.3	936.5
Provisions and other long-term liabilities	–232.3	–138.5	–228.5
Trade and other payables	–232.1	–211.0	–257.2
Opening capital employed	556.8	435.8	450.8
Balance sheet total	1 013.3	1 021.2	1 022.4
Provisions and other long-term liabilities	–214.5	–232.3	–227.9
Trade and other payables	–267.9	–232.1	–257.4
Closing capital employed	530.9	556.8	537.1
Average capital employed	520.4	473.4	511.6
Return on capital employed (last four quarters)	15.3	20.4	15.6

See Definitions of key figures and ratios for a definition of alternative performance measures

Return on equity

Amounts in SEK million	September 2023	September 2022	Full year 2022
Net profit/loss for the period	30.1	25.9	47.9
Total	30.1	25.9	47.9
Opening equity	424.5	347.9	387.3
Closing equity	447.8	424.5	436.0
Return on equity (last four quarters)	11.7	18.2	11.6

See Definitions of key figures and ratios for a definition of alternative performance measures

Net debt

Amounts in SEK million	September 30, 2023	September 30, 2022	December 31, 2022
Current borrowing	24.9	67.9	38.9
Non-current borrowing	58.2	64.3	62.3
Total liabilities	83.0	132.3	101.2
Cash and cash equivalents	92.6	94.3	120.1
Net debt	–9.6	38.0	–18.9

See Definitions of key figures and ratios for a definition of alternative performance measures

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). As not all companies calculate financial measures in the same way, they are not always comparable with measures used by other companies and must therefore not be seen as a substitute for the measures defined under IFRS. The company management considers that these key figures and ratios make it easier for investors to analyze the Group's development.

Average number of employees

Average number of employees at the end of each month. Used to calculate other key ratios per employee.

Capital employed

Balance sheet total less non-interest bearing liabilities. Average capital employed has been calculated as an average of the four last quarters. Shows the value of the assets associated with the operations and that contribute to generating revenue and profit.

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. Used to measure the company's earnings per share.

Equity

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

Equity-assets ratio

Equity including non-controlling interests as a percentage of the balance sheet total. This key ratio shows the company's long-term solvency and the proportion of assets that are equity financed.

Equity per share

Equity divided by the number of shares at the end of the period. Enables shareholders to compare book value with market value.

Free cash flow

Cash flow from operating activities (after changes in working capital) including cash flow from investing activities. Shows the company's cash generating capacity after operational investments.

Investments

Total of the acquisition of businesses/subsidiaries and acquisition of intangible assets and property, plant and equipment.

Net debt

Total long-term and short-term borrowing less cash and cash equivalents. Used to show the company's ability to pay all debts if they fall due.

Net debt-equity ratio

Interest-bearing net debt divided by equity including non-controlling interests. A measure of financial risk.

Operating margin

Operating profit as a percentage of sales. A measure of the operative result.

Profit margin

Profit before tax as a percentage of net sales. A measure of profitability.

Return on capital employed

Profit/loss after financial items for the period with financial expenses, fair value losses and foreign exchange losses for the four last quarters added back, as a percentage of average capital employed. This measures how effectively Studsvik generates profit from the capital tied up in the business.

Return on equity

Profit/loss for the period for the last four quarters as a percentage of average equity. The measure shows the company's ability to generate a return on the owners' invested capital.

Sales revenue per employee

Sales revenue divided by average number of employees. For quarterly reports net sales are estimated on a full year basis. The measure shows sales turnover for each employee and is a human resources equivalent to the asset turnover ratio.

We refer to www.studsvik.se and our Annual Report, where more definitions and calculations of key figures can be found: https://www.studsvik.com/investors/financial-reports/

STUDSVIK IN BRIEF

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 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 75 years' experience of nuclear technology and radiological services.

Studsvik has 520 employees in 7 countries and the company's shares are listed on Nasdaq Stockholm.

Time Schedule for Financial Information

Year-end Report 2023, February 8, 2024

Annual Report 2023, March 2024

Interim Report Quarter 1, 2024 April 25, 2024

Annual General Meeting 2024, April 25, 2024

Interim Report Quarter 2, 2024 July 23, 2024

Interim Report Quarter 3, 2024 October 23, 2024

Year-end Report 2024 February 2025

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 20 at 12:00 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 20, 2023, at 10:15 am CET.

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