INTERIM REPORT FIRST QUARTER 2020 CEO Camilla Hoflund and CFO Claes Engvall April 29, 2020
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 650 MSEK ● 530 employees ● Global presence Studsvik Interim Report First Quarter 2020 2020-04-29 2
OUR VISION AND MISSION Studsvik’ s Vision Making it easy to benefit from clean nuclear energy Studsvik’ s Mission Create effective, customer-focused solutions to complex problems, through Studsvik’ s proven ability to innovate Studsvik Interim Report First Quarter 2020 2020-04-29 3
Q1 2020 STUDSVIK – IN SUMMARY January- January- Full year March 2020 March 2019 2019 Sales, MSEK 152.9 139.9 654.0 Adjusted operating profit , MSEK 3.5 -18.6 4.4 Operating profit/loss 3.5 -18.6 -10.4 Operating profit/loss after tax, -0.5 -23.1 -28.0 MSEK Free cashflow, MSEK 24.1 -33.0 -38.8 • Increased net sales The Group’s total available cash: • Improved operating profit in all • December 31, 2019 (Q4): business areas 66 MSEK • COVID-19 impact so far mainly in • March 31, 2020 (Q1) the German operations (3 MSEK) 92 MSEK 2020-04-29 Studsvik Interim Report First Quarter 2020 4
CURRENT SITUATION – COVID-19 ● General statement • Peoples health is our highest priority • We apply national regulations and recommendations ● Quarter 1 • The impact of Studsvik business has so far been limited, the minor impacts are mainly within the German operations • About 80-90 employees in Germany have temporary been sent home from customer sites partly compensated by the German government • The Swedish facilities at Studsvik site are still in full operation • Working on remote for a large number of employees worldwide have been successful so far ● Main risks going forward • Increased number of temporary shutdowns in Germany or Switzerland • Shutdown of hot cell facilities in Sweden • Delay of new orders Studsvik Interim Report First Quarter 2020 2020-04-29 5
STUDSVIK PROVIDES SMART TECHNOLOGY ENABLING NUCLEAR UTILITIES, ADVANCED REACTORS, AND RESEARCH FACILITIES TO DELIVER CLEAN ENERGY AND ENSURE SAFE DISPOSAL EFFICIENTLY Studsvik Interim Report First Quarter 2020 2020-04-29 6
Q1 2020 FUEL- & MATERIALS TECHNOLOGY PERCENTAGE OF SALES January- January- 31 March March Full year 2020 2019 2019 Sales, MSEK 47.1 42.4 200.1 Operating profit, MSEK 3.2 0.3 25.3 Operating profit margin, % 6.8 0.7 12.6 Investments, MSEK 2.7 5.1 22.9 Average number of employees 109 104 104 Highlights Outlook ● Stable start of the year ● Ramp up of medical isotope: postponed to early 2021 due ● Delayed transport and fuel to delay of irradiated sources project from Halden ● Norway NND fuel back end: compensated by other fuel projects contract expected quarter 3 (150 MNOK over 13 years) ● Internal work performed such ● Geographic expansion as waste campaign 2020-04-29 Studsvik Interim Report First Quarter 2020 7
Q1 2020 WASTE MANAGEMENT TECHNOLOGY January- January- PERCENTAGE OF SALES 9 March March Full year 2020 2019 2019 Sales, MSEK 12.4 16.3 56.8 Operating profit/loss, MSEK -1.9 -5.5 -33.6 Operating profit/loss margin, % -15.4 -33.8 -59.2 Investments, MSEK 1.8 0.4 4.2 Average number of employees 37 50 46 Highlights Outlook ● Reduction of loss making ● New business opportunities for contracts license sales are delayed (COVID-19) ● Improved utilization at the end ● Strong interest of new waste of the period concept inDRUM Studsvik Interim Report First Quarter 2020 8 2020-04-29
Q1 2020 SCANDPOWER PERCENTAGE OF SALES January- January- 20 March March Full year 2020 2019 2019 Sales, MSEK 29.7 24.3 130.1 Operating profit, MSEK 3.4 1.0 13.0 Operating profit margin, % 11.5 4.2 10.0 Investments, MSEK 0.1 0.2 1.3 Average number of 34 34 35 employees Highlights Outlook ● Stable start of the year ● Strong pipeline on broad geographic market ● Delays of Chinese business due ● The Chinese market starts to to COVID-19 compensated with engineering services open up ● Potential delays of larger license sales (COVID-19) 2020-04-29 Studsvik Interim Report First Quarter 2020 9
Q1 2020 GERMANY January- PERCENTAGE OF SALES March January- 40 2020 March 2019 Full year 2019 Sales, MSEK 59.5 52.2 263.0 Operating profit/loss, MSEK 1.3 -11.9 -1.0 Operating profit/loss margin, 2.2 -22.8 -0.4 % Investments, MSEK 0.1 - 1.7 Average number of 330 349 349 employees Highlights Outlook ● Positive result effects ● Negative EBIT impact of 7 following the improvement MSEK is expected in quarter program 2019 2 (COVID-19) ● Negative EBIT impact of 3 ● Studsvik staff back at the MSEK (COVID-19) customer sites in June ● Full order book for 2020 ● Expected full utilization in quarter 3 2020-04-29 Studsvik Interim Report First Quarter 2020 10
FINANCIAL HIGHLIGHTS ● Quarterly EBIT at 3.5 MSEK • No items affecting comparability ● Strong focus on cash and working capital • Through-out the organization ● The appeal of the bank guarantee was turned down by the court • Studsvik intends to present new legal facts with the aim of getting a revised decision • Other financial options in place regarding the bank guarantee ● During quarter 1 limited financial impact from COVID-19 (3 MSEK) • Financial precautions being implemented Studsvik Interim Report First Quarter 2020 2020-04-29 11
STUDSVIK GROUP EARNINGS January- January- Full year March 2020 March 2019 2019 Sales, SEK million 152.9 139.9 654.0 Operating profit, SEK million 3.5 -18.6 -10.4 Operating margin, % 2.3 -13.3 -1.6 Profit after net financial items, SEK 4.0 -23.3 -22.8 million Profit per share after tax, SEK -0.06 -2.81 -3.41 Free cash flow, SEK million 24.1 -33.0 -38.8 Investments, SEK million 4.9 6.8 32.7 Net debt/Equity ratio, % 17.4 25.2 27.4 Average number of employees 529 556 552 Studsvik Interim Report First Quarter 2020 2020-04-29 12
Q1 2020 VS Q1 2019 Group EBIT MSEK Q1 2020 3.5 Q1 2019 -18.6 Deviation 22.1 SPECIFICATION OF DEVIATION Improvements in Germany: Price, utilization rate and cost saving 13.2 Re-organization of WMT: Discontinued with loss making 3.6 business Fuel and Material Technology: Stable start of the year 2.9 2.4 Scandpower: Stable start of the year Deviation 22.1 Studsvik Interim Report First Quarter 2020 2020-04-29 13
CASHFLOW 2020-04-29 14
FINANCIAL OUTLOOK ● General: High uncertainties regarding COVID-19 development and potential business delays ● Fuel and Material Technology • Delayed Elekta deliveries (- 7% of order value) largely compensated by other business opportunities • Expected stable operations ● Scandpower • Expected stable business • China starts to open again ● Waste Management Technology • On track towards 10 MSEK year on year improvement ● Germany • On track towards 10 MSEK year on year improvement despite COVID-19 uncertainties • The COVID-19 situation is expected to impact the EBIT negatively in quarter 2 with 7 MSEK (including financial compensation from the German government) Studsvik Interim Report First Quarter 2020 2020-04-29 15
FINANCIAL OUTLOOK, CONTINUED ● Other potential risks • Trade conflicts • Issues concerning export control ● No major restructurings or items affecting comparability planned for 2020 ● Cash expected to peak beginning of second quarter and decrease somewhat towards the end of the year ● Lower investment level 2020 compare to 2019 Studsvik Interim Report First Quarter 2020 2020-04-29 16
We turn complicated conditions into pragmatic solutions Studsvik Interim Report First Quarter 2020 2020-04-29 17
Thank you! 2020-04-29 Studsvik Interim Report First Quarter 2020 18
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