Q1 2018 Presentation April 25, 2018 Our Focus and Offerings We - - PowerPoint PPT Presentation

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Q1 2018 Presentation April 25, 2018 Our Focus and Offerings We - - PowerPoint PPT Presentation

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Q1 2018 Presentation April 25, 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

Q1 2018 Presentation

April 25, 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

2018-04-25 2 Interim Report First Quarter 2018

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SLIDE 3

January-March 2018 January-March 2017 Full year 2017 Sales, SEK million

197.4 179.6 704.8

Gross margin,%

32.6 28.5 23.5

Operating Profit, SEK million

22.2

  • 2.0
  • 41.6

Operating margin, %

11.2

  • 1.1
  • 5.9

Profit after net financial items, SEK million

18.6

  • 7.1
  • 58.7

Profit per share after tax, SEK

1.55

  • 0.76
  • 5.47

Free cash flow, SEK million

21.6

  • 4.2
  • 84.2

Investments, SEK million

6.9 5.1 22.1

Net debt/Equity ratio, %

25.5 2.5 35.1

Average number of employees

630 633 662

Financial performance

2018-04-25 Interim Report First Quarter 2018 3

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SLIDE 4

2018-04-25 Interim Report First Quarter 2018 4

  • Sales SEK 197.4 (179.6) million – increase with 10 percent
  • Gross margin 33 (29) percent
  • Operating result SEK 22.2 (-2.0) million
  • Restructuring costs SEK 0 (4.2) million
  • Free cash flow SEK 21.6 (-4.2) million (includes SEK 20 million released from escrow)
  • Strong results in Scandpower following SEK 32 million TVEL-order with SEK 25 million delivered

in Q1

  • Full production in Fuel- and Materials Technology with catch up from Q4 plus high order intake
  • Consultancy Services weak in Sweden and UK
  • Germany continues to struggle with low capacity utilization and unfavorable pricing
  • Cost savings in head office with new organization from January 1

Analysis of key ratio development Q1

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SLIDE 5

Consultancy Services

Business Area

Fuel and Materials Technology Studsvik Scandpower Germany

2018-04-25 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

Interim Report First Quarter 2018

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SLIDE 6

Consultancy Services

Business Area

Fuel and Materials Technology Studsvik Scandpower Germany

January-March 2018 January-March 2017 Full year 2017 Sales, SEK million

21.2 35.4 134.2

Operating Profit, SEK million

0.0 1.6 11.3

Operating Profit margin, %

0.0 4.5 8.4

Investments, SEK million

0.4 3.4

Average number of employees

57 64 57

Financial performance

2018-04-25 Interim Report First Quarter 2018 6

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SLIDE 7

Consultancy Services

Business Area

Fuel and Materials Technology Studsvik Scandpower Germany

  • Sales SEK 21.2 (35.4) million
  • Operating profit SEK 0 (1.6) million
  • Restructuring costs SEK 0 (0) million
  • YTD operating profit SEK 0 (1.6) million.
  • Low demand and utilization ratio in Sweden, UK and USA
  • Drop in net sales also reflecting exit from not profitable business in the UK (HVAC, Implementation)
  • Continued focus on IP-technology and related engineering services
  • Japan - Kobe Steel joint venture
  • China - Dynatech license agreement
  • France – Areva
  • USA - Department of Energy

Operational highlights

2018-04-25 Interim Report First Quarter 2018 7

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SLIDE 8

Consultancy Services

Business Area

Fuel and Materials Technology Studsvik Scandpower Germany

2018-04-25 Interim Report First Quarter 2018 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 Germany

Financial performance

2018-04-25 Interim Report First Quarter 2018 9

January-march 2018 January-march 2017 Full year 2017 Sales, SEK million

66.7 52.5 195.0

Operating Profit, SEK million

10.3 5.8 5.3

Operating Profit margin, %

15.4 11.0 2.7

Investments, SEK million

5.4 4.1 13.8

Average number of employees

99 98 101

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Consultancy Services

Business Area

Fuel and Materials Technology Studsvik Scandpower Germany

  • Sales SEK 66.7 (52.5) million
  • Operating profit SEK 10.3 (5.8) million
  • Restructuring costs SEK 0 (0.3) million
  • YTD operating profit SEK 10.3 (5.8) million
  • Hot cell facility up and running as planned
  • Catch-up of delay from Q4 2017 combined with strong order intake gives solid performance
  • Part of Hot cell facility being rebuilt to accommodate production line for medical isotopes
  • Continued strong demand for services offered by business area

Operational highlights

2018-04-25 Interim Report First Quarter 2018 10

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SLIDE 11

Consultancy Services

Business Area

Studsvik Scandpower Fuel- and Materials Technology Germany

11 2018-04-25 Interim Report First Quarter 2018

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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Consultancy Services

Business Area

Studsvik Scandpower Fuel- and Materials Technology Germany

Financial Performance

12 2018-04-25 Interim Report First Quarter 2018

January- March 2018 January- March 2017 Full year 2017 Sales, SEK million

42.8 19.7 81.0

Operating Profit, SEK million

20.7

  • 3.6
  • 11.8

Operating Profit margin, %

48.4

  • 18.3
  • 14.6

Investments, SEK million

0.7

Average number of employees

34 34 34

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SLIDE 13

Consultancy Services

Business Area

Studsvik Scandpower Fuel- and Materials Technology Germany

Operational highlights

13 2018-04-25 Interim Report First Quarter 2018

  • Sales SEK 42.8 (19.7) million
  • Operating profit SEK 20.7 (-3.6) million
  • Restructuring costs SEK 0 (0) million
  • YTD operating profit SEK 20.7 (-3.6) million
  • Order signed with TVEL for 38 MSEK of which 25 MSEK delivered in Q1
  • Software and documentation delivered in Q1
  • Engineering, consulting and further documentation to be delivered mainly in remaining 2018
  • Still market demand for Software and services but procurement processes remain longer
  • No change or positive news on export approval for China, we continue to make our case
  • Continued efforts to add application for spent fuel and additional consultancy services
  • Focus on increasing and expanding commercial activities and reach
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SLIDE 14

Consultancy Services

Business Area

Studsvik Scandpower Fuel- and Materials Technology Germany

14 2018-04-25 Interim Report First Quarter 2018

KEY OFFERINGS - Germany Decommissioning and Radiation Safety

Nuclear Decommissioning

  • Radiological inventory,

characterization & clearance

Radiation Safety & Protection

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SLIDE 15

Consultancy Services

Business Area

Studsvik Scandpower Fuel- and Materials Technology Germany

15 2018-04-25 Interim Report First Quarter 2018

Financial Performance

January- March 2018 January- March 2017 Full year 2017 Sales, SEK million

63.9 70.5 291.1

Operating Profit, SEK million

  • 4.8
  • 8.4

Operating Profit margin, %

  • 7.5
  • 2.9

Investments, SEK million

0.3 0.5 0.7

Average number of employees

419 397 435

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SLIDE 16

Consultancy Services

Business Area

Studsvik Scandpower Fuel- and Materials Technology Germany

16 2018-04-25 Interim Report First Quarter 2018

Operational highlights

  • Sales SEK 63.9 (70.5) million
  • Operating profit SEK -4.8 (0) million
  • Restructuring costs SEK 0 (1.4) million
  • YTD operating profit SEK -4.8 (0) million
  • Weak start of the year with lower than planned utilization ratio
  • Pricing still insufficient in several agreements
  • Market for decommissioning remains hesitant but will develop positively over time
  • Focus on increasing utilization ratio and price
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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

Growth in Asia and Middle East

  • New reactors
  • China, Russia and Korea investing
  • Japan to start a limited number
  • R&D new fuel and reactor types
  • Middle East, mainly UAE investing
  • National waste programs

2018-04-25 Interim Report First Quarter 2018 17

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SLIDE 18

Nuclear Power Market

  • Western Europe, the USA and Japan are facing life extension programs and

preparations for decommissioning

  • Asia, mainly China, are building new nuclear plants
  • The Middle East, mainly UAE, are in the phase of planning and constructing new

nuclear plants

  • Requirements for national waste programs are increasing, mainly in Asia
  • Increasing demands on electricity and still low price pressure
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SLIDE 19

Other markets

  • Isotopes for medicine purpose, one of the larger producers of isotopes has

shut down its reactor. In total there are 2-3 reactors in the world that irradiates isotopes

  • Oil and mining industry generates naturally occurring radioactive material

(NORM)

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SLIDE 20

CEO’s statement – Studsvik in balance with the market

  • We are:
  • A Group with strong business focus and

a part of the market change

  • An organization prepared for change

and thereby offer flexible services and products

  • Aware of the risks and uncertain

political situations and act accordingly

  • With our extensive experience, we have in-

depth knowledge and expertise

  • Innovation for us is to think in new ways,

using known techniques in new ways and in new areas

Market challenges Studsvik’s

  • pportunities
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SLIDE 21

Appendix

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Balance sheet

March 2018 March 2017 December 2017 Assets Non-current assets 466.6 444.8 456.6 Current assets 443.0 449.3 368.3 Total assets 909.6 894.1 824.9 Equity and liabilities Equity 310.0 340.3 288.1 Non-controlling interest 0.3 0.4 0.3 Non-current liabilities 369.0 359.4 364.7 Current liabilities 230.3 194.0 171.8 Total equity and liabilities 909.6 894.1 824.9

2018-04-25 Interim Report First Quarter 2018 22

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SLIDE 23

2018-04-25 23 Interim Report First Quarter 2018