INTERIM REPORT JULY-SEPTEMBER 2019 CEO Camilla Hoflund and CFO - - PowerPoint PPT Presentation

INTERIM REPORT JULY-SEPTEMBER 2019

CEO Camilla Hoflund and CFO Claes Engvall October 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

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

• Sales SEK 151.2 (167.2) million
• Operating profit SEK –4.1 (9.5) million
• Free cash flow SEK 1.9 (–0.8) million
• Production of the first set of medical isotopes to Elekta
• Underlying quarterly profit of MSEK 4.4 and margin of 2.9%
• Items affecting comparability MSEK 8.5 due to reductions within BA

Waste Management Technology

• Improved free cash flow compared to last quarter
• Profitable German operation in the period, during the peak of revision

work and efficient utilization of the staff

2019-10-22 Studsvik Interim Report Third Quarter 2019

Q3 2019 STUDSVIK – IN SUMMARY

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• No major license sales
• Improved order situation for BA Fuel and Material
• Savings program in Waste Management Technology give positive

financial impact of MSEK 10 in 2020

• Savings program and customer negotiations in Germany give positive

financial impact of MSEK 10 in 2020

• Continued strong focus on cash flow and cost control

2019-10-22 Studsvik Interim Report Third Quarter 2019

Q3 2019 STUDSVIK – IN SUMMARY

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July- September 2019 July- September 2018 January- September 2019 January- September 2018 Full year 2018 Sales, SEK million

151.2 167.2 451.4 538.6 726.1

Operating Profit, SEK million

• 4.1

9.5

• 30.8

33.7 33.5

Operating margin, %

• 2.7

5.7

• 6.8

6.3 4.6

Profit after net financial items, SEK million

• 4.3

6.1

• 36.8

22.3 18.7

Profit per share after tax, SEK

• 0.71

0.55

• 4.83

1.81 1.06

Free cash flow, SEK million

1.9

• 0.8
• 46.0

24.8 54.2

Investments, SEK million

5.9 7.7 23.3 20.8 32.1

Net debt/Equity ratio, %

28.2 22.9 28.2 22.9 14.0

Average number of employees

570 632 564 631 624

Q3 2019 STUDSVIK - FINANCIALS

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Q3 2019 FUEL- & MATERIALS TECHNOLOGY

2019-10-22 Studsvik Interim Report Third Quarter 2019

July- September 2019 July- September 2018 January- September 2019 January- September 2018 Full year 2018 Sales, SEK million

40.3 40.0 134.9 159.9 224.3

Operating Profit, SEK million

3.1 0.7 18.3 18.4 30.1

Operating Profit margin, %

7.7 1.8 13,6 11.5 13.4

Investments, SEK million

3.5 6.4 17.6 15.7 23.2

Average number of employees

103 97 104 97 98

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• First isotope set produced to Elekta on 2nd of October and two more

sets planned this year

• Several business opportunities and improved order situation
• Improved utilization ratio during the quarter
• Continued focus on cash flow and cost control

July- Septemb er 2019 July- September 2018 January- September 2019 January- September 2018 Full year 2018 Sales, SEK million

12.3 18.8 42.1 59.4 78.3

Operating Profit, SEK million

• 13.2
• 8.7
• 29.8
• 7.6
• 10.7

Operating Profit margin, %

n/a

• 46.3
• 70.8
• 12.8
• 13.7

Investments, SEK million

1.8 0.6 2.7 2.0 2.4

Average number of employees

48 54 48 54 51

Q3 2019 WASTE MANAGEMENT TECHNOLOGY

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• Re-focus of the business
• On-going cost savings program
• UK: Substantial headcount reduction and closing offices
• Sweden: 50% headcount reduction and closing offices
• Total items affecting comparability MSEK 8.5
• No major license sales

Q3 2019 SCANDPOWER

2019-10-22 Studsvik Interim Report Third Quarter 2019

July- September 2019 July- September 2018 January- September 2019 January- September 2018 Full year 2018 Sales, SEK million

19.6 31.2 68.9 97.8 137.2

Operating Profit, SEK million

• 1.7

1.2

• 4.2

20.9 26.8

Operating Profit margin, %

• 8.7

3.8

• 6.1

21.4 19.5

Investments, SEK million

0.0 0.3 0.3 0.5 0.5

Average number of employees

34 32 35 32 33

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• On-going commercial negotiations for license sales, however delayed

customer decisions

• Increased opportunities in China supported by the new legal entity
• Closely monitoring and addressing trade regulations
• Continued focus on cash flow and cost control

2019-10-22 Studsvik Interim Report Third Quarter 2019

Q3 2019 GERMANY

July- September 2019 July- September 2018 January- September 2019 January- September 2018 Full year 2018 Sales, SEK million

78.0 78.3 201.3 219.6 285.4

Operating Profit, SEK million

8.6 2.5

• 5.6
• 2.6
• 9.3

Operating Profit margin, %

11.0 3.2

• 2.8
• 1.2
• 3.3

Investments, SEK million

0.3

• 0.1

0.4 0.1 0.3

Average number of employees

367 423 359 423 417

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• Strong financial performance during the peak of the revision period and

efficient utilization of the staff

• On-going cost savings program
• Improved commercial contracts for services and decommissioning projects
• High staff demand in Germany and Switzerland

2019-10-22 Studsvik Interim Report Third Quarter 2019

Q3 2019 STUDSVIK SUMMARY

Current situation

• Several business opportunities that we need to close
• Top management focus on cost saving programs
• Profit improvement of MSEK 20 in 2020

Threats

• Delayed license sales
• Escalating trade conflicts

Opportunities in near term

• Increasing customer demand for solutions within waste management
• Sales of fuel qualification services to the Asia market

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2019-10-22 Studsvik Interim Report Third Quarter 2019

Thank you!

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