q4, 2008 presentationinvestors.studsvik.com/files/studsvik_presentation_slidesq1_2009.pdf ·...
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Q1, 2009 presentationApril 22, 2009
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2Q1 report 2009
Continued losses in USA in Q1
• Net sales down to SEK 277.0 million (320.0)
• Operating loss of SEK -21.2 million (-7.0)
• Operating loss fully attributable to USA
– Operating loss in USA of SEK -33.7 million (-13.4)
– Very low capacity utilization in Erwin
– Credit loss of SEK 10.2 million in logistics
– Continued losses in logistics terminated by partnership with R&R Trucking
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Status and outlook for Erwin
• Four customer contracts signed to date
– 30 out of 103 nuclear power plants covered by current contracts
– Negotiations with further parties under way
• Waste receipts are expected to pick up in coming quarters
– B/C waste is generated after scheduled revisions in spring and fall
• Erwin remains the only option for B/C waste in the USA
Q1 report 2009
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UK recovering after weak Q4
• Low activity in Decommissioning
– Weak order book after closing of Sellafield project
• Risk level reduced in Decommissioning
– Lower costs
– Smaller contracts
– Wider customer base
• The UK revenue budget for 2009 is significantly more diversified
than previous years
– 1/3 Waste treatment, 1/3 Decommissioning, 1/3 Engineering services
Q1 report 2009
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AB SVAFO divested
• Non-commercial company assigned to take care of legacy waste
• Financed by the commercial nuclear plant owners through the
Nuclear Waste Fund
• Transfer to nuclear plant owners at book value
• The R2 reactor will be divested to AB SVAFO
• AB SVAFO’s net sales in 2008 were SEK 72 million
• No future liabilities for legacy waste
5Q1 report 2009
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• Cost reduction program with positive impact 2009 of MSEK 25
• Planned investments 2009 reduced to MSEK 35
– Primarily MRF in the UK and the rest in Sweden
• Salary freeze for Group management
• Continued focus on working capital and cash management
Groupwide measures to restore profitability
6Q1 report 2009
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Operating Profit per Segment
SEKm Q1-09 Q1 -08 2008
Sweden 6.7 0.9 30.7
United Kingdom 0.1 2.9 -3.2
Germany 4.9 4.7 23.3
USA -33.7 -13.4 -22.4
Global Services 9.3 4.3 13.0
Other -8.5 -6.4 -28.7
Group eliminations -
Q1 report 2009
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Sweden - Q1Waste Treatment for European customers
• Incineration facility operated at
full capacity
• Good utilization in metals
facility and large components
line
• Metals volumes up 35%
• Strong order book
Q1 report 2009
Focus for 2009
• Increase capacity to handle
growing volumes
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United Kingdom – Q1Decommissioning and Waste Treatment
• Waste treatment developed
positively
• Metals Recycling Facility (MRF)
will start operations in Q3
• Low utilization in
Decommissioning
• High sales activity with several
tenders ongoing
9Q1 report 2009
Focus for 2009
• Decommissioning order book
• MRF in operation Q3
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Germany – Q1Decommissioning and Engineering & Services
• Good utilization in Engineering &
services
• Projected revisions at 2008 level
• Continued strong demand for
Engineering & services
• Decommissioning project won for
Belgian MOX plant valued at MSEK 64
• French office shows small profit
Q1 report 2009
Focus for 2009
• Grow in engineering consulting
• Careful expansion in France
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USA – Q1Waste Treatment including Logistics
• Erwin main loss maker
– Only minor volumes processed
• Expected minor loss in Memphis
due to seasonality
• Continued but reduced loss in
Logistics
– Client loss of SEK 10.2 million
– Partnership with R&R Trucking
11Q1 report 2009
Focus for 2009
• Grow customer base for Erwin
• Grow non-utility customer base
for Memphis
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Global Services – Q1In-core fuel management software and Materials technology
• Materials technology continued to
develop well
– Order book remains strong
– Fuel shipments from BE scheduled
for Q2
– Consultancy continued to grow
• Strong results for software
– Japanese order for Gardel
Q1 report 2009
Focus for 2009
• Capitalize on strong order book
and prospect pipeline
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Studsvik GroupKey Figures and Ratios
SEKm Q1 -09 Q1-08 2008
Net sales for the Group, SEKm 277.0 320.0 1,285.9
Operating profit, SEKm -21.2 -7.0 12.7
Profit after tax, SEKm -19.8 -7.0 1.1
Earnings per share, SEK -2.41 -0.99 -0.05
Operating margin, % neg neg 1.0
Cash flow from operations -6.4 -18.2 29.5
Average number of Employees 1,112 1,158 1,130
Q1 report 2009
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Studsvik GroupKey Figures and Ratios
Q109 Q108 YE08
Capital employed, SEKm 1,016.2 831.2 999.00
Equity, SEKm 615.3 535.6 610.8
Cash & cash equivalents, SEKm 108.7 130.8 147.7
Net interest-bearing debt 292.3 165.0 240.5
Equity-assets ratio, % 39.7 42.3 40.4
Equity per share, SEK 74.82 65.17 74.32
Q1 report 2009
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15Q1 report 2009
USAReturn to
profitabilitySEKm 315
Turn-around
SwedenMaintain margins on
increasing volumes
GermanyGrow in engineering consultancy
Global ServicesCapitalize on strong order book
SEKm 735
Ongoing businesses
UKOpen MRF
Improve order
book
SEKm 150
Rapid growth
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• Modernization and upgrading programs are underway in several
countries
• Decommissioning of nuclear facilitites is expected to continue at
least at similar level as 2008
• Demand for the type of services Studsvik offers is strong
• Studsvik’s operations are only marginally affected by fluctuations in
the economic cycle
• With the exception of parts of the US operations, the financial
turbulence has not affected Studsvik’s operations
Outlook
Q1 report 2009
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17Q1 report 2009