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Studsvik Interim / Quarterly Report 2022

Feb 10, 2023

3208_10-k_2023-02-10_9cf70816-58e6-49d6-88e7-562b8851409c.pdf

Interim / Quarterly Report

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FOURTH QUARTER – 2022

"We are now in a phase of strong increased interest in development of nuclear power in Sweden and internationally.

This creates new business opportunities for Studsvik that can offer services throughout the entire nuclear lifecycle."

Camilla Hoflund

  • Sales in the fourth quarter amounted to SEK 228.6 (252.5) million and to SEK 814.8 (798.3) million for the full year.
  • The operating profit for the quarter was SEK 33.5 (38.5) million and SEK 74.9 (85.8) million for the full year. The operating margin was 14.7 per cent for the quarter but decreased somewhat to 9.2 (10.7) per cent for the full year.
  • Two major license agreements were signed during the quarter in the business areas Waste Management Technology and Scandpower.
  • The Board of Directors proposes an unchanged dividend of SEK 2.00 per share.
Quarter Full year
Q4 2022 Q4 2021 2022 2021
Sales, SEK million 228.6 252.5 814.8 798.3
Operating profit, SEK million 33.5 38.5 74.9 85.8
Operating margin, % 14.7 15.2 9.2 10.7
Profit after tax, SEK million 21.9 33.0 47.9 63.2
Free cash flow, SEK million 63.1 34.9 –17.5 71.4
Net debt, SEK million –18.9 –44.9 –18.9 –44.9
Net debt/equity ratio, % –4.3 –11.6 –4.3 –11.6
Profit per share after tax, SEK 2.67 4.01 5.82 7.69
Equity per share, SEK 53.05 47.12 53.05 47.12

THE GROUP

SALES

Sales in the quarter amounted to SEK 228.6 (252.5) million and to SEK 814.8 (798.3) million for the full year. In local currencies this was a decrease of 14 for the quarter and 2 per cent for the full year.

PROFIT

Operating profit decreased during the quarter to SEK 33.5 (38.5) million and to SEK 74.9 (85.8) million. The operating margin for the quarter was 14.7 (15.2) per cent and 9.2 (10.7) per cent for the full year. A sale of land in 2021 had a positive impact on the full year profit of SEK 4.5 (11.5) million.

CASH FLOW

The free cash flow was SEK 63.1 (34.9) million for the quarter and SEK –17.5 (71.4) million for the full year. The strong cash flow for the quarter is due to reduced trade receivables and lower inventory levels.

INVESTMENTS

Investments decreased to SEK 5.3 (17.5) million for the quarter and to SEK 24.7 (58.5) million for the full year. The investments are mainly related to the Fuel and Materials Technology business area.

FINANCIAL POSITION AND LIQUIDITY

At year end cash and cash equivalents amounted to SEK 120.1 (108.4) million and the unutilized portion of the overdraft facility was SEK 62.9 (80.8) million. At year end the Group had a net cash balance of SEK 18.9 (44.9) million. The net debt/equity ratio was –4.3 (–11.6) per cent and the equity/ assets ratio was 42.6 (41.4) per cent.

DIVIDEND

The Group's dividend policy means that on average over time the dividend should be at least 30 per cent of the consolidated profit after tax. Dividend decisions must take into consideration growth potential, consolidation requirements, liquidity and financial position in general. The Board of Directors has decided to propose an unchanged dividend to the Annual General Meeting of SEK 2 per share, equivalent to 34 (26) per cent of profit after tax.

PERSONNEL

The average number of employees at year end was 520 (517).

Free cash flow

BUSINESS AREAS

DECOMMISSIONING AND RADIATION PROTECTION SERVICES

Sales in the quarter amounted to SEK 70.5 (74.4) million and SEK 292.7 (329.5) million for the full year. In local currencies this was a decrease of 13 per cent for the quarter and 15 per cent for the full year.

The operating profit for the quarter improved to SEK 3.4 (–3.2) million but decreased to SEK 10.3 (26.2) million for the year.

The operations have been adapted to a situation with considerably fewer maintenance service assignments than before, due to the closure of nuclear power plants in Germany. In combination with high sickness absence this has impacted sales and profit negatively.

FUEL AND MATERIALS TECHNOLOGY

Sales in the quarter decreased by 17 per cent to SEK 87.9 (105.3) million, but increased by 4 per cent for the full year to SEK 322.9 (310.4) million.

The operating profit for the quarter decreased to SEK 15.6 (23.3) million and for the full year to SEK 52.5 (57.3) million, which means an operating margin of 17.7 (22.1) and 16.3 (18.5) per cent respectively. Excluding the sale of land in 2021, profit for the full year was SEK 48.1 million (45.8) with an operating margin of 14.9 (14.8) per cent.

At the start of the year a re-prioritization of the order backlog took place to replace Russian projects on hold. Despite adjustment time for replanning, capacity utilization at the facility was high.

During the quarter a first order was received for materials testing for small modular reactors (SMR).

SCANDPOWER

Sales increased to SEK 42.2 (35.0) million in the quarter and SEK 135.3 (103.4) million for the full year, due to increased license sales. In local currencies this was an increase of 6 per cent for the quarter and 18 per cent for the full year.

Operating profit for the quarter was SEK 10.4 (6.7) million and SEK 18.2 (4.1) million for the full year. The operating margin improved to 24.6 (19.1) per cent in the quarter and 13.5 (4.0) per cent for the full year.

WASTE MANAGEMENT TECHNOLOGY

Sales in the quarter decreased to SEK 31.1 (38.5) million but increased for the full year to SEK 73.2 (64.3) million. In local currencies this means a decrease of 23 per cent for the quarter but, an increase of 10 per cent for the full year. The operating profit for the quarter was SEK 11.2 (17.7) million and SEK 5.7 (15.4) million for the full year. During the quarter a long-term license agreement was signed with Westinghouse for development of a waste

facility for contaminated metal waste in the United Kingdom.

The previous year's profit included a profit share of SEK 6.0 million from the agreement with UK Nuclear Waste Management (LLWR), which expired in 2021.

PARENT COMPANY

Operations in the parent company consist of coordination of the Group. Sales in the quarter amounted to SEK 0.0 (5.9) million and to SEK 10.5 (14.0) million for the full year. Operating profit for the quarter amounted to SEK –6.1 (–3.8) million and SEK –11.8 (–12.7) million for the year.

Profit before tax in the quarter amounted to SEK –8.2 (0.3) million and to SEK 21.3 (2.5) million for the full year. Net financial income includes revaluation of intra-group loans by SEK 4.9 (2.9) million for the quarter and SEK 19.6 (10.9) million for the full year. At year end, cash and cash equivalents including current investments were SEK 0 (0) million and interest-bearing liabilities SEK 79.4 (63.5) 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.

ANNUAL GENERAL MEETING

The Annual General meeting will be held on April 24, at 16:00 at the World Trade Center, Stockholm.

EVENTS AFTER THE BALANCE SHEET DAY

No significant events have taken place impacting the financial statements after the balance sheet date.

ACCOUNTING POLICIES

Studsvik applies 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, 2022 and that were not already applied when preparing the 2021 Annual Report have had any material effect on the accounts.

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

The interim report provides a fair review of the Group's and the Parent Company's operations, financial position and performance and describes significant risks and uncertainties faced by the Parent Company and the companies that are part of the Group.

Nyköping, February 10, 2023

Anders Ullberg Chair

Jan Bardell Member

Jitka Zakova Employee representative Anna Karinen Vice Chair

Agneta Nestenborg Member

Jan Barchan Member

Erik Strömqvist Member

Per S Ekberg Employee representative

Camilla Hoflund President/CEO

Time Schedule for Financial Information

Interim Report Quarter 1, 2023 April 24, 2023

Interim Report Quarter 2, 2023 July 20, 2023

Interim Report Quarter 3, 2023, October 20, 2023

Year-end Report 2023, February 2024

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 February 10 at 2:00 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 February 10, 2023, at 11:30 am CET.

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

Quarter Full year Full year
Amounts in SEK million Q4 2022 Q4 2021 2022 2021
Net sales 228.6 252.5 814.8 798.3
Cost of services sold –164.2 –170.0 –610.5 –591.2
Gross profit 64.4 82.5 204.3 207.1
Selling and marketing expenses –11.3 –9.9 –37.7 –34.4
Administrative expenses –22.1 –31.1 –89.2 –93.9
Research and development costs –2.7 –2.4 –8.5 –9.0
Impairment loss on trade receivables –1.3 0.0 –1.3 0.0
Share in earnings from associated companies –0.2 –0.2 –0.2 5.9
Other operating income 6.7 1.6 13.8 20.5
Other operating expenses 0.0 –2.1 –6.3 –10.3
Operating profit 33.5 38.5 74.9 85.8
Financial income 0.0 –0.1 4.0 0.0
Financial expenses –6.9 –4.0 –14.8 –8.2
Profit/loss before tax 26.5 34.3 64.1 77.6
Taxes –4.6 –1.2 –16.2 –14.4
NET PROFIT/LOSS FOR THE PERIOD 21.9 33.0 47.9 63.2
Other comprehensive income
Items that may later be reversed in the income statement
Translation differences on foreign subsidiaries –6.6 6.4 36.0 18.9
Cash for hedges 0.0 0.0
Income tax on items recognized in other comprehensive income
Other comprehensive income for the period. net after tax –6.6 6.4 36.0 18.9
Total profit/loss and other comprehensive income for the period 15.3 39.4 83.9 82.1
Income for the period attributable to
Parent company's shareholders 21.9 33.0 47.9 63.2
Non-controlling interests
Total comprehensive income attributable to
Parent company's shareholders 15.3 39.4 83.9 82.0
Non-controlling interests
Earnings per share calculated on income attributable to the parent
company's shareholders during the period. SEK 2.67 4.01 5.82 7.69
Earnings per share (There is no dilution effect) 2.67 4.01 5.82 7.69

GROUP STATEMENT OF FINANCIAL POSITION, IN SUMMARY

Amounts in SEK million December 31,
2022
December 31,
2021
ASSETS
Intangible assets 206.8 189.8
Property, plant and equipment 211.1 199.3
Other non-current assets 217.2 214.0
Total non-current assets 635.1 603.1
Inventories 8.5 15.9
Trade receivables 156.9 128.9
Other current receivables 101.8 80.2
Cash and cash equivalents 120.1 108.4
Total current assets 387.3 333.4
TOTAL ASSETS 1,022.4 936.5
EQUITY AND LIABILITIES
Equity attributable to parent company's shareholders 436.0 386.9
Non-controlling interests 0.4
Total equity 436.0 387.3
Liabilities to credit institutions, long-term 62.3 42.5
Provisions and other non-current liabilities 227.9 228.5
Total non-current liabilities 290.2 271.0
Trade and other payables 257.4 257.2
Liabilities to credit institutions, short term 38.9 21.0
Total current liabilities 296.3 278.2
TOTAL EQUITY AND LIABILITIES 1,022.4 936.5

CHANGES IN EQUITY, IN SUMMARY

Equity
attribu
table to
Share Other
contributed
Retained the parent
company's
Non-control
Amounts in SEK million capital capital Reserves earnings shareholders ling interest Total equity
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
Changes October 1 – December 31, 2021
Comprehensive income for the period 6.5 32.9 39.5 0.0 39.4
Equity at December 31, 2021 8.2 225.3 32.7 120.7 387.0 0.4 387.3
Changes January 1 – September 30, 2022
Comprehensive income for the period 42.6 25.9 68.5 68.5
Acquisition of non-controlling interest –14.5 –14.5 –0.4 –14.9
Dividend –16.4 –16.4 –16.4
Equity at September 30, 2022 8.2 225.3 75.3 115.6 424.5 424.5
Changes October 1 – December 31, 2022
Comprehensive income for the period –6.7 21.9 15.3 15.3
Acquisition of non-controlling interest –3.9 –3.9 –3.9
Equity at December 31, 2022 8.2 225.3 68.8 133.7 436.0 436.0

GROUP STATEMENT OF CASH FLOW, IN SUMMARY

Quarter Full year Full year
Amounts in SEK million Q4 2022 Q4 2021 2022 2021
Cash flow from operating activities
Operating profit 33.5 38.5 74.9 85.7
Adjustment for non-cash items 3.2 –6.4 –0.3 7.7
Financial items. net –1.7 –1.5 –4.4 –5.3
Income tax paid –1.8 –2.9 –9.9 –8.3
Cash flow from operating activities
before change in working capital
33.3 27.7 60.3 79.9
Change in working capital 35.1 14.1 –60.0 33.8
Cash flow from operating activities 68.4 41.8 0.3 113.7
Investing activities
Acquisition of property, plant and equipment –5.3 –17.5 –24.7 –58.5
Disposal of non-current assets 19.6 6.9 22.8
Dividend from associated companies 0.2 8.6
Other cash flow from investing activities –9.1 –15.2
Cash flow from investing activities –5.3 –6.8 –17.8 –42.3
Free cash flow 63.1 34.9 –17.5 71.4
Financing activities
New loans 1.3 25.5 5.9
Amortization of loans –6.2 –0.9 –11.1 –6.6
Changed use of bank overdraft facility –29.0 –23.8 17.9 –34.4
Dividend to shareholders 0.0 –16.4 –8.2
Cash flow from financing activities –35.2 –23.4 15.9 –43.3
Changes in cash and cash equivalents 27.9 11.4 –1.6 28.0
Cash and cash equivalents at the beginning of the period 94.3 95.4 108.4 75.2
Exchange differences on cash and cash equivalents –2.1 1.6 13.3 5.2
Cash and cash equivalents at the end of the period 120.1 108.4 120.1 108.4

FINANCIAL RATIOS FOR THE GROUP

Amounts in SEK million Full year
2022
Full year
2021
Margins
Operating margin, % 9.2 10.7
Profit margin, % 7.9 9.7
Return on investment
Return on capital employed, % 15.6 19.5
Return on equity, % 11.6 18.1
Capital structure
Capital employed 537.1 450.8
Equity 436.0 387.3
Net debt –18.9 –44.9
Net debt/equity ratio, % –4.3 –11.6
Equity-asset ratio, % 42.6 41.4
Employees
Average number of employees 520 517
Net sales per employee 1.6 1.5

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

DATA PER SHARE

Quarter Fyll year Full year
Q4 2022 Q4 2021 2022 2021
Number of shares at the end of the period 8,218,611 8,218,611 8,218,611 8,218,611
Average number of shares 8,218,611 8,218,611 8,218,611 8,218,611
Earnings per share before and
after dilution
2.67 4.01 5.82 7.69
Equity per share, SEK 53.05 47.12 53.05 47.12

NET SALES PER GEOGRAPHICAL AREA

Quarter Full year Full year
Amounts in SEK million Q4 2022 Q4 2021 2022 2021
Sweden 47.0 42.6 170.7 139.0
Germany 65.6 73.1 256.7 273.0
The rest of Europe 57.1 78.5 184.2 257.9
North America 27.8 17.4 75.1 52.5
Asia 25.3 37.6 105.9 72.6
Other 5.8 3.3 22.2 3.3
Total 228.6 252.5 814.8 798.3

QUARTERLY REVIEW

2020 2021 2022
Amounts in SEK million Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
Net sales 152.9 167.8 187.7 213.5 162.8 201.2 181.8 252.5 187.8 203.1 195.3 228.6
Operating expenses –149.4 –158.2 –164.6 –203.7 –154.8 –183.9 –159.9 –214.0 –180.8 –194.9 –169.2 –195.1
Operating profit 3.5 9.6 23.1 9.8 8.0 17.3 21.9 38.5 7.0 8.2 26.1 33.5
Financial items, net 0.5 –1.8 –1.3 –2.1 –1.0 –1.4 –1.6 –4.3 –3.8 –2.0 2.0 –6.9
Profit/loss after financial items 4.0 7.8 21.8 7.7 7.0 15.9 20.3 34.2 3.2 6.2 28.1 26.5

SEGMENT INFORMATION

Quarter Full year Full year
Amounts in SEK million Q4 2022 Q4 2021 2022 2021
DECOMMISSIONING & RADIATION PROTECTION SERVICES
External sales revenue 70.5 74.4 292.7 329.5
Operating profit 3.4 –3.2 10.3 26.2
Assets 256.9 221.8 256.9 221.8
Liabilities 199.2 175.9 199.2 175.9
Investments 5.7 0.9 7.8 3.7
Average number of employees 307 332 308 326
FUEL AND MATERIALS TECHNOLOGY*
External sales revenue 87.9 105.3 322.9 310.4
Operating profit 15.6 23.3 52.5 57.3
Assets 511.7 518.9
351.0
511.7 518.9
Liabilities 322.9 16.3 322.9 351.0
Investments 5.3 27.8 52.8
Average number of employees 154 129 154 130
SCANDPOWER
External sales revenue 42.2 35.0 135.3 103.4
Operating profit 9.2 6.7 17.0 4.1
Assets 192.6 167.1 192.6 167.1
Liabilities 59.8 69.3 59.8 69.3
Investments 0.9 0.2 5.3 1.3
Average number of employees 41 37 42 37
WASTE MANAGEMENT TECHNOLOGY
External sales revenue 31.1 38.5 73.2 64.3
Operating profit 11.2 17.7 5.7 15.4
Assets 175.9 168.4 175.9 168.4
Liabilities 157.9 147.8 157.9 147.8
Investments 0.1 0.2 0.6 0.8
Average number of employees 9 14 9 13
OTHER*
External sales revenue 4.0 5.0 14.4 16.7
Operating profit –5.8 –6.0 –10.6 –17.2
Assets 309.7 347.6 309.7 347.6
Liabilities 270.8 292.4 270.8 292.4
Investments 0.0 0.0 0.3 -0.1
Average number of employees 7 11 7 11
ELIMINATION*
External sales revenue –7.1 –5.7 –23.7 –26.0
Operating profit
Assets –424.3 –487.2 –424.3 –487.2
Liabilities –424.3 –487.2 –424.3 –487.2
Investments
Average number of employees
GROUP
External sales revenue 228.6 252.5 814.8 798.3
Operating profit 33.5 38.5 74.9 85.8
Assets 1 022.5 936.6 1 022.5 936.6
Liabilities 586.3 549.2 586.3 549.2
Investments 12.0 17.6 41.8 58.5
Average number of employees 518 523 520 517

DATA PER SEGMENT CONT. – SALES PER GEOGRAPHICAL AREA

Quarter Full year Full year
Amounts in SEK million Q4 2022 Q4 2021 2022 2021
DECOMMISSIONING AND RADIATION PROTECTION SERVICES
Sweden
Germany 58.9 66.5 232.0 253.3
The rest of Europe 10.6 7.8 59.7 76.2
North America
Asia
Other
Total 69.5 74.3 291.7 329.5
FUEL AND MATERIALS TECHNOLOGY
Sweden 35.0 32.3 119.1 108.0
Germany 5.3 1.4 16.8 5.5
The rest of Europe 18.4 32.1 75.7 114.6
North America 3.4 2.5 11.8 11.6
Asia 25.0 36.4 97.1 68.9
Other
Total 87.1 104.7 320.5 308.6
SCANDPOWER
Sweden 0.0 2.0 7.8 6.6
Germany 1.4 5.2 7.9 14.2
The rest of Europe 12.7 10.0 26.0 30.4
North America 20.6 13.1 54.8 37.2
Asia 0.2 1.2 8.7 3.5
Other 5.8 3.3 22.2 3.3
Total 40.7 34.8 127.4 95.2
WASTE MANAGEMENT TECHNOLOGY
Sweden 11.6 8.2 41.6 23.7
Germany
The rest of Europe 15.4 28.5 22.8 36.7
North America 3.8 1.8 8.5 3.7
Asia 0 0 0.2
Other
Total 30.9 38.5 73.0 64.3
OTHER
Sweden 0.4 0.1 2.2 0.7
Germany
The rest or Europe
North America
Asia
Other
Total 0.4 0 2.2 0.7
THE GROUP
Sweden 47.0 42.6 170.7 139.0
Germany 65.6 73.1 256.7 273.0
The rest of Europe 57.1 78.5 184.2 257.9
North America 27.8 17.4 75.1 52.5
Asia 25.3 37.6 105.9 72.6
Other 5.8 3.3 22.2 3.3
Total 228.6 252.5 814.8 798.3

PARENT COMPANY INCOME STATEMENT, IN SUMMARY

Quarter Full year Full year
Amounts in SEK million Q4 2022 Q4 2021 2022 2021
Net sales 0.0 5.9 10.5 14.0
Cost of services sold
Gross profit 0.0 5.9 10.5 14.0
Other operating income and expenses –6.1 –9.7 –22.3 –26.7
Operating profit –6.1 –3.8 –11.8 –12.7
Result from participations in Group companies 1.9 10.1
Net financial items –4.0 4.1 23.0 15.2
Profit/loss before tax –8.2 0.3 21.3 2.5
Appropriations 73.7 73.7
Income tax 1.3 –14.7 –2.5 –15.1
NET PROFIT/LOSS FOR THE PERIOD –6.9 59.3 18.8 61.1

PARENT COMPANY BALANCE SHEET, IN SUMMARY

Amounts in SEK million December 31,
2022
December 31,
2021
ASSETS
Intangible assets
Financial non-current assets 572.2 531.9
Total non-current assets 572.2 531.9
Current assets 21.1 80.7
Cash and cash equivalents
Total current assets 21.1 80.7
TOTAL ASSETS 593.3 612.6
EQUITY AND LIABILITIES
Restricted equity 233.5 233.5
Non-restricted equity 71.1 68.6
TOTAL EQUITY 304.6 302.1
Non-current liabilities 130.9 129.3
Current liabilities 157.8 181.2
Total liabilities 288.7 310.5
TOTAL EQUITY AND LIABILITIES 593.3 612.6

RECONCILIATIONS OF KEY RATIOS

Return on capital employed

Amounts in SEK million Full year
2022
Full year
2021
Profit/loss after financial items 64.1 77.6
Financial expenses according to the income statement 14.8 8.8
Total 78.9 86.3
Balance sheet total 936.5 760.5
Provisions and other long-term liabilities –228.5 –137.1
Trade and other payables –257.2 –210.0
Opening capital employed 450.8 413.4
Balance sheet total 1 022.4 936.5
Provisions and other long-term liabilities –227.9 –228.5
Trade and other payables –257.4 –257.2
Closing capital employed 537.1 450.9
Average capital employed 511.6 441.2
Return on capital employed (last four quarters) 15.6 19.5

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

Return on equity

Amounts in SEK million Full year
2022
Full year
2021
Net profit/loss for the period 47.9 63.2
Total 47.9 63.2
Opening equity 387.3 313.4
Closing equity 436.0 387.3
Return on equity (last four quarters) 11.6 18.1

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

Net debt

Amounts in SEK million December 31,
2022
December 31,
2021
Current borrowing 38.9 21.0
Non-current borrowing 62.3 42.5
Total liabilities 101.2 63.5
Cash and cash equivalents 120.1 108.4
Net debt –18.9 –44.9

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 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.

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/

MAJOR SHAREHOLDERS, DECEMBER 31, 2022

Number of shares Share. %
Karinen Family 1,769,552 21.5
Briban Invest AB 1,343,362 16.3
Peter Gyllenhammar 1,245,000 15.2
Caceis Bank, Switzerland Branch 363,879 4.5
Girell Family 343,800 4.2
Banque Pictet & CIE 335,000 4.1
Avanza Pensionsförsäkring AB 319,802 3.9
Leif Lundin 206,500 2.5
Malte Edenius 192,864 2.3
NordNet Pensionsförsäkring AB 121,052 1.5
Total 10 largest 6,240,811 76.0
Other shareholders 1,977,800 24.0
Total amounts of 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 just over 520 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