Q4 2017 Presentation February 15, 2018 Our Focus and Offerings We - - PowerPoint PPT Presentation

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Q4 2017 Presentation February 15, 2018 Our Focus and Offerings We - - PowerPoint PPT Presentation

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Q4 2017 Presentation February 15, 2018 Our Focus and Offerings We develop, sell and deliver innovative technical solutions to create superior value by impro roving p perform rmance and reducing r risk . Focus o on products and s services w

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SLIDE 1

Q4 2017 Presentation

February 15, 2018

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SLIDE 2

Focus o

  • n products and s

services w within: :

  • Fuel and materials testing
  • Fuel and reactor management software
  • Life cycle management of nuclear and radioactive hazards

We develop, sell and deliver innovative technical solutions to create superior value by impro roving p perform rmance and reducing r risk.

Our Focus and Offerings

2018-02-15 2 Year-end 2017 Presentation

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SLIDE 3

October – December 2017 October – December 2016 Full year 2017 Full year 2016 Sales, SEK million

165.4 246.3 704.8 758.8

Gross margin,%

18.4 36.9 23.5 29,5

Operating Profit, SEK million

  • 35.7

27.0

  • 41.6

24.7

Operating margin, %

  • 21.6

11.0

  • 5.9

3.2

Profit after net financial items, SEK million

  • 39.4

18.1

  • 58.7
  • 0.6

Profit per share after tax, SEK

  • 3.65

0.22

  • 5.47

6.59

Free cash flow, SEK million*

  • 30.6
  • 22.2
  • 84.2

129.6

Investments, SEK million

6.9 5.5 22.1 15.3

Net debt/Equity ratio, %

35.1 0.8 35.1 0.8

Average number of employees

667 695 662 687

Financial performance

2018-02-15 Year-end 2017 Presentation 3 * Includes Waste Treatment which was divested 2016

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SLIDE 4

2018-02-15 Year-end 2017 Presentation 4

  • Sales SEK 165 (246) million – decrease with 33 percent
  • Gross margin 18 (37) percent
  • Operating result SEK -36 (27) million
  • Restructuring costs SEK 15 (8) million
  • Free cash flow SEK -31 (-22) million (2016 excl. divestment of Waste Treatment)
  • YTD operating result SEK -42 (25) million (includes restructuring)
  • No FBSR license sale in Q4 vs SEK 23 million in Q4-2016
  • Consultancy Services weak in Germany and Sweden
  • Fuel & Materials Technology weak Q4 following the unplanned stop in the Hot Cell facility
  • Studsvik Scandpower continues to suffer from customers longer procurement processes
  • Restructuring of head office and business areas – increased customer focus at reduced cost

Analysis of key ratio development Q4

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SLIDE 5

Consultancy Services

Business Area

Fuel and Materials Technology Studsvik Scandpower

2018-02-15 5

KEY OFFERINGS – CONSULTANCY SERVICES We manage Radioactive Hazards to keep our customers Safe

Environmental Services

  • Norm

Engineering

– Waste Mgmt Processes

Nuclear Decommissioning

  • Radiological inventory,

characterization & clearance

Repository Optimization

  • Safety Analysis, Licensing

and Planning

Radiation Safety & Protection Radioactive Waste Management

Year-end 2017 Presentation

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SLIDE 6

Consultancy Services

Business Area

Fuel and Materials Technology Studsvik Scandpower

October - December 2017 October - December 2016 Full year 2017 Full year 2016 Sales, SEK million

84.4 128.9 407.3 448.4

Operating Profit, SEK million

  • 13.3

7.9 2.9 14.0

Operating Profit margin, %

  • 15.8

6.1 0.7 3.1

Investments, SEK million

2.3 0.3 4.0 2.4

Average number of employees

497 525 492 523

Financial performance

2018-02-15 Year-end 2017 Presentation 6

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SLIDE 7

Consultancy Services

Business Area

Fuel and Materials Technology Studsvik Scandpower

  • Sales SEK 84 (129) million
  • Operating profit SEK -13 (8) million
  • Restructuring costs SEK 1 (6) million
  • YTD operating profit SEK 3 (14) million.
  • No FBSR license sale in Q4 vs SEK 23 million in Q4-2016
  • Low demand and utilization ratio in Germany and Sweden
  • USA and UK improving performance over last year
  • Continued focus on FBSR-technology and related engineering services
  • Progress in Japan with Kobe Steel joint venture
  • Progress in China with Dynatech license agreement
  • Projects in France (Areva) and USA (Department of Energy) moving forward

Operational highlights

2018-02-15 Year-end 2017 Presentation 7

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SLIDE 8

Consultancy Services

Business Area

Fuel and Materials Technology Studsvik Scandpower

2018-02-15 Year-end 2017 Presentation 8

KEY OFFERINGS – FUEL & MATERIALS TECHNOLOGY

Fuel & Materials Life Cycle

Transport of Irradiated Materials Final & Interim Storage Research Engineering Fuel Qualification Hot Cell Technologies Plant Life Management

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SLIDE 9

Consultancy Services

Business Area

Fuel and Materials Technology Studsvik Scandpower

Financial performance

2018-02-15 Year-end 2017 Presentation 9

October – December 2017 October – December 2016 Full year 2017 Full year 2016 Sales, SEK million

54.4 65.9 195.0 196.3

Operating Profit, SEK million

  • 1.7

10.2 5.3 29.7

Operating Profit margin, %

  • 3.1

15.5 2.7 15.1

Investments, SEK million

2.9 4.9 13.8 11.7

Average number of employees

101 93 101 93

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SLIDE 10

Consultancy Services

Business Area

Fuel and Materials Technology Studsvik Scandpower

  • Sales SEK 54 (66) million
  • Operating profit SEK -2 (10) million
  • Restructuring costs SEK 1 (1) million
  • YTD operating profit SEK 5 (30) million
  • Incident in Hot cell facility in September reduced Q4 revenue and profit with SEK 12 million
  • Hot cell in full operation since mid December and no customer orders lost
  • 400 MSEK contract signed with Elekta for supply of medical isotopes over initially nine years
  • Continued strong demand for services offered by business area

Operational highlights

2018-02-15 Year-end 2017 Presentation 10

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SLIDE 11

Consultancy Services

Business Area

Studsvik Scandpower Fuel- and Materials Technology

11 2018-02-15 Year-end 2017 Presentation

KEY OFFERINGS - STUDSVIK SCANDPOWER Nuclear Analysis Software & Services

Fuel Design, Core Design, Core Monitoring & Plant Performance Optimization Consulting, Engineering Services & Knowledge Transfer Operator Training Simulation Used Fuel Analysis & Management (Interim and Permanent Storage) New and Advanced Reactor Design & Licensing

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SLIDE 12

Consultancy Services

Business Area

Studsvik Scandpower Fuel- and Materials Technology

Financial Performance

12 2018-02-15 Year-end 2017 Presentation

October - December 2017 October - December 2016 Full year 2017 Full year 2016 Sales, SEK million

24.6 42.4 81.0 96.4

Operating Profit, SEK million

  • 2.0

13.6

  • 11.8

2.8

Operating Profit margin, %

  • 8.1

32.1

  • 14.6

2.9

Investments, SEK million

0.5 0.1 0.7 0.1

Average number of employees

34 32 34 34

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SLIDE 13

Consultancy Services

Business Area

Studsvik Scandpower Fuel- and Materials Technology

Operational highlights

13 2018-02-15 Year-end 2017 Presentation

  • Sales SEK 25 (42) million
  • Operating profit SEK -2 (14) million
  • Restructuring costs SEK 3 (0) million
  • YTD operating profit SEK -12 (3) million
  • Continued demand for Software and services but procurement processes are longer
  • Export approval for China being processed but uncertain when approval will be granted
  • Broaden offering by adding application for spent fuel and additional consultancy services
  • Focus on increasing and expanding commercial activities and reach
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SLIDE 14

Challenges & Opportunities Across the Globe

Mixed picture Europe

  • Profitability issues
  • Cost reduction initiatives
  • Germany phasing out
  • Finland & UK invest
  • Decommissioning of several units
  • Life time extension

Cost focus in North America

  • Profitability issues
  • Nuclear promise – reduce cost 30 %
  • Decommissioning
  • Life time extension
  • R&D new fuel and reactor types

Strong growth in Asia

  • New reactors
  • China, Russia and Korea investing
  • Japan to start a limited number
  • R&D new fuel and reactor types

2018-02-15 Year-end 2017 Presentation 14

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SLIDE 15

Studsvik Customer Values

  • Risk Mitigation - 70 years of EXPERIENCE

in the global nuclear community

  • Safety and Efficiency - Helping our

customers meet regulatory compliance while minimising cost

  • Commitment - Supporting our

customers through long term relationships

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SLIDE 16

Studsvik executive management team

2018-01-01 Corporate Presentation 16

Camilla Hoflund

CEO

Pål Jarness

CFO

Steven Freel

Business Area President Studsvik Scandpower

Stefan Bergström

Business Area President Consultancy Services

Joakim Lundström

Business Area President Fuel & Materials Technology

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SLIDE 17

Appendix

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SLIDE 18

Balance sheet

December 2017 December 2016 Assets Non-current assets 456.6 447.1 Current assets 368.3 453.9 Total assets 824.9 901.0 Equity and liabilities Equity 288.1 348.1 Non-controlling interest 0.3 0.4 Non-current liabilities 364.7 359.9 Current liabilities 171.8 192.6 Total equity and liabilities 824.9 901.0

2018-02-15 Year-end 2017 Presentation 18

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SLIDE 19

2018-02-15 19 Year-end 2017 Presentation