INTERIM REPORT APRIL-JUNE 2019 CEO Camilla Hoflund and CFO Claes - - PowerPoint PPT Presentation

INTERIM REPORT APRIL-JUNE 2019

CEO Camilla Hoflund and CFO Claes Engvall July 22, 2019

STUDSVIK IN BRIEF

Key customers

• Nuclear industry
• Utilities, Vendors, Research Organizations

and Regulators

• Radio isotope industry

The company

• Listed on Nasdaq Stockholm Small Cap
• Sales SEK 700 million
• 600 employees
• Global presence

2019-07-22 Studsvik Interim Report Second Quarter 2019 2

We develop, sell and deliver innovative technical solutions to create superior value by improving performance and reducing risk.

• Sales SEK 160.3 (174.0) million
• Operating profit SEK –8.1 (2.0) million
• Free cash flow SEK –14.9 (4.0) million
• Financial performance continues to be a challenge
• Strong focus on cash flow and cost control
• Several business opportunities within BA Fuel and Material
• Several business opportunities within BA Scandpower
• Revision period ongoing in Germany and Swiss
• No major license sales within waste treatment technologies or software
• Company establishment in China to support new business

2019-07-22 Studsvik Interim Report Second Quarter 2019

Q2 2019 STUDSVIK – IN SUMMARY

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April-June 2019 April-June 2018 Jan-June 2019 Jan-June 2018 Full year 2018 Sales, SEK million

160.3 174.0 300.2 371.4 726.1

Operating Profit, SEK million

• 8.1

2.0

• 26.7

24.2 33.5

Operating margin, %

• 5.1

1.1

• 8.9

6.5 4.6

Profit after net financial items, SEK million

• 9.2
• 2.3
• 32.5

16.3 18.7

Profit per share after tax, SEK

• 1.31
• 0.27
• 4.12

1.27 1.06

Free cash flow, SEK million

• 14.9

4.0

• 47.9

25.6 54.2

Investments, SEK million

10.6 6.2 17.4 13.1 32.1

Net debt/Equity ratio, %

31.2 22.3 31.2 22.3 14.0

Average number of employees

561 632 579 635 624

Q2 2019 STUDSVIK - FINANCIALS

2019-07-22 Studsvik Interim Report Second Quarter 2019 4

Q2 2019 FUEL- & MATERIALS TECHNOLOGY

2019-07-22 Studsvik Interim Report Second Quarter 2019

April-June 2019 April-June 2018 Jan-June 2019 Jan-June 2018 Full year 2018 Sales, SEK million

52.2 53.2 94.6 119.9 224.3

Operating Profit, SEK million

14.9 7.4 15.2 17.7 30.1

Operating Profit margin, %

28.5 13.9 16.1 14.8 13.4

Investments, SEK million

9.0 3.9 14.1 9.3 23.2

Average number of employees

103 97 103 97 98

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• Restatements of provision with positive financial impact
• Strong focus on cash flow and cost control
• Medical isotope open up a new market
• First delivery of medical isotopes re-scheduled to Q3

April-June 2019 April-June 2018 Jan-June 2019 Jan-June 2018 Full year 2018 Sales, SEK million

13.5 19.4 29.8 40.6 78.3

Operating Profit, SEK million

• 11.1

1.1

• 16.6

1.1

• 10.7

Operating Profit margin, %

• 82.5

5.7

• 55.7

2.7

• 13.7

Investments, SEK million

0.5 1.4 0.9 1.4 2.4

Average number of employees

45 55 48 54 51

Q2 2019 CONSULTANCY SERVICES

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• No major license sales within waste treatment technologies
• Strong focus on cash flow and cost control
• Re-focus of business towards waste treatment technologies
• Headcount reductions within consulting in the UK and Middle East
• Resources in place to enter the US for waste treatment technologies

Q2 2019 SCANDPOWER

2019-07-22 Studsvik Interim Report Second Quarter 2019

April-June 2019 April-June 2018 Jan-June 2019 Jan-June 2018 Full year 2018 Sales, SEK million

25.0 23.8 49.3 66.6 137.2

Operating Profit, SEK million

• 3.5
• 1.0
• 2.5

19.7 26.8

Operating Profit margin, %

• 14.0
• 4.2
• 5.1

29.6 19.5

Investments, SEK million

0.1 0.2 0.3 0.2 0.5

Average number of employees

34 33 34 33 33

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• No major license sales within software
• Strong focus on cash flow and cost control
• Closely monitoring and addressing trade regulations
• Support fuel market with software upgrades and engineering

services in US

2019-07-22 Studsvik Interim Report Second Quarter 2019

Q2 2019 GERMANY

April-June 2019 April-June 2018 Jan-June 2019 Jan-June 2018 Full year 2018 Sales, SEK million

71.1 77.4 123.3 141.3 285.4

Operating Profit, SEK million

• 2.3
• 0.3
• 14.2
• 5.1
• 9.3

Operating Profit margin, %

• 3.2
• 0.4
• 11.5
• 3.6
• 3.3

Investments, SEK million

0.1

• 0.1

0.1 0.2 0.3

Average number of employees

360 418 376 424 417

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• Financial performance below target due to lower ratio of high margin

business and sickness absence

• Strong focus on cash flow and cost control
• High market demand drives recruitments of engineers and radiation

protection staff

• Revision period ongoing in Germany and Swiss
• On-going commercial negotiations for long term contracts

2019-07-22 Studsvik Interim Report Second Quarter 2019

Q2 2019 STUDSVIK CONCLUSION

• Current situation
• Challenging financial performance
• Re-focusing and reductions on-going in several areas
• Strong focus on cash flow and cost control
• Threats
• Trade conflicts including export control related to US
• Lengthy selling-in process generates uncertainty about timing
• Opportunities
• Medical isotopes opens for a new market
• Increasing customer request for waste treatment technologies

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2019-07-22 Studsvik Interim Report Second Quarter 2019

Thank you!

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