INTERIM REPORT SECOND QUARTER 2020 CEO Camilla Hoflund and CFO Claes Engvall July 21, 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 ● 525 employees ● Global presence Studsvik Interim Report Second Quarter 2020 2020-07-21 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 Second Quarter 2020 2020-07-21 3
CURRENT SITUATION – COVID-19 ● General statement • Peoples health is our highest priority • We apply national regulations and recommendations ● Quarter 2 • Staff in Germany were in full utilization at the end of the period • The Swedish facilities at Studsvik site were in full operation • Working remotely for most of the employees • Negative impact 5 MSEK for the German operations (totally 8 MSEK in 2020) ● Main risks going forward • Temporary shutdowns in Germany • Shutdown of hot cell facilities in Sweden • Delay of new orders due to long term travel restrictions Studsvik Interim Report Second Quarter 2020 2020-07-21 4
Q2 2020 STUDSVIK – IN SUMMARY April- April- January- January- Full year June 2020 June 2019 June 2020 June 2019 2019 Sales, MSEK 167.8 160.3 320.7 300.2 654.0 Adjusted operating 9.6 -1.8 13.1 -20.4 4.4 profit/loss , MSEK Operating profit/loss, 9.6 -8.1 13.1 -26.7 -10.4 MSEK Operating profit/loss 8.2 -10.8 7.7 -33.9 -28.0 after tax, MSEK Free cashflow, MSEK 11.0 -14.9 35.1 -47.9 -38.8 • Overall improved finance The Group’s total available cash: • March 31, 2020 (Q1) 92 MSEK performance despite COVID-19 • June 30, 2020 (Q2) 97 MSEK • Improved operating margin 5.7 % (at 8.7 % excl COVID-19 impact in the German operations 5 MSEK) 2020-07-21 Studsvik Interim Report Second Quarter 2020 5
Q2 2020 FUEL- & MATERIALS TECHNOLOGY Percentage of April-June April-June January- January- Full year net sales: 36 % 2020 2019 June 2020 June 2019 2019 Sales, MSEK 61.2 52.2 108.3 94.6 200.1 Operating profit, MSEK 12.3 14.9 15.5 15.2 25.3 Operating profit margin, 20.1 28.5 14.3 16.1 12.6 % Investments, MSEK 3.1 9.0 5.8 14.1 22.9 Average number of 110 103 110 103 104 employees Highlights Outlook ● Expansion on the Chinese ● Medical isotope production market will start up Q1 2021 ● Increased business with customers in Asia and Russia ● Norway NND fuel: • Signing expected in Q3 (max ● High and stable utilization in 150 MNOK over 13 years) the operations • Possibilities for expansion 2020-07-21 Studsvik Interim Report Second Quarter 2020 6
Q2 2020 WASTE MANAGEMENT TECHNOLOGY Percentage of April-June April-June January- January- Full year net sales: 8 % 2020 2019 June 2020 June 2019 2019 Sales, MSEK 13.6 13.5 26.0 29.8 56.8 Adjusted operating 2.7 -5.6 0.8 -11.1 -19.6 profit/loss, MSEK Operating profit/loss, 2.7 -11.1 0.8 -16.6 -33.6 MSEK Operating profit/loss 19.9 -82.2 3.1 -55.7 -59.2 margin, % Investments, MSEK 0.6 0.5 2.4 0.9 4.2 Average number of 33 45 31 48 46 employees Highlights Outlook ● Increased profit due to ● Strong customer interest in new efficiencies activities waste concept inDRUM (COVID- 19 is slowing down the progress) ● Increased utilization of high ● Potential for additional margin engineering business engineering business Studsvik Interim Report Second Quarter 2020 7 2020-07-21
Q2 2020 SCANDPOWER Percentage of April-June April-June January- January- Full year net sales: 12 % 2020 2019 June 2020 June 2019 2019 Sales, MSEK 20.8 25.0 50.5 49.3 130.1 Operating profit/loss, -1.7 -3.5 1.7 -2.5 13.0 MSEK Operating profit -8.2 -14.0 3.4 -5.1 10.0 margin, % Investments, MSEK 0.5 0.1 0.6 0.3 1.3 Average number of 35 34 35 34 35 employees Highlights Outlook ● No major license sale in the ● Good potential for major period license sales ● Improved performance of ● Continued strong interest on engineering services US home market and Asia 2020-07-21 Studsvik Interim Report Second Quarter 2020 8
Q2 2020 GERMANY Percentage of April-June April-June January- January- Full year net sales: 42 % 2020 2019 June 2020 June 2019 2019 Sales, MSEK 69.8 71.1 129.3 123.3 263.0 Operating profit/loss, 0.5 -2.3 1.8 -14.2 -1.0 MSEK Operating profit/loss 0.7 -3.2 1.4 -11.5 -0.4 margin, % Investments, MSEK 0.3 0.1 0.4 0.1 1.7 Average number of 328 360 328 376 349 employees Highlights Outlook ● Major profit improvement first ● COVID-19 development is 6 month including 8 MSEK constantly monitored COVID-19 impact ● Full order book for 2020 ● Peak period with on-going revision work 2020-07-21 Studsvik Interim Report Second Quarter 2020 9
FINANCIAL HIGHLIGHTS ● Quarterly EBIT at 9.6 MSEK • No items affecting comparability ● Solid development of the Group free cash flow strengthening our financial position including net debt/equity ratio ● During first half year the financial impact from COVID-19 was 8 MSEK Studsvik Interim Report Second Quarter 2020 2020-07-21 10
STUDSVIK GROUP EARNINGS April- April- January- January- June June June June Full year 2020 2019 2020 2019 2019 Sales, SEK million 167.8 160.3 320.7 300.2 654.0 Operating profit, SEK 9.6 -8.1 13.1 -26.7 -10.4 million Operating margin, % 5.7 -5.1 4.1 -8.9 -1.6 Profit after net financial 7.8 -9.2 11.8 -32.5 -22.8 items, SEK million Profit per share after tax, 1.00 -1.31 0.94 -4.12 -3.41 SEK Free cash flow, SEK 11.0 -14.9 35.1 -47.9 -38.8 million Investments, SEK million 4.7 10.6 9.6 17.4 32.7 Net debt/Equity ratio, % 16.2 31.2 16.2 31.2 27.4 Average number of 525 561 523 579 552 employees Studsvik Interim Report Second Quarter 2020 2020-07-21 11
Q2 2020 VS Q2 2019 Group EBIT MSEK Q2 2020 9.6 Q2 2019 -8.1 Deviation 17,7 SPECIFICATION OF DEVIATION Re-organization of WMT: Discontinued with loss making 13,8 business (NRI 2019 at 5,5 MSEK) Improvements in Germany: Improved customer contracts, 2,8 utilization rate and cost saving Scandpower: Improved base business 1,8 -2,6 Fuel and Material Technology: Stable profit despite Elekta delays (dissolved provision of 10 MSEK during Q2-2019) Other (NRI 2019 at 0,8 MSEK) 1,9 Deviation 17,7 Studsvik Interim Report Second Quarter 2020 2020-07-21 12
CASHFLOW January-June January-June Full year 2020 2019 2019 EBIT 13.1 -26.7 -10.4 Change in working capital 15.5 12.6 14.9 Cash flow from investments 3.8 -11.0 -25.3 Financial items -2.2 -4.5 -9.2 Tax paid -3.6 -7.0 -9.7 Other 8.5 -11.3 0.9 Free cash flow 35.1 -47.9 -38.8 Studsvik Interim Report Second Quarter 2020 2020-07-21 13
FINANCIAL OUTLOOK ● Still high uncertainties regarding COVID-19 development and potential business delays ● Fuel and Material Technology • Elekta deliveries delayed until Q1-2021 affection 2020 sales with around 30 MSEK • Expected stable operations ● Scandpower • Expected stable business for the full year ● Waste Management Technology • Well on track towards 10 MSEK year on year EBIT improvement ● Germany • On track towards 10 MSEK year on year EBIT improvement Studsvik Interim Report Second Quarter 2020 2020-07-21 14
FINANCIAL OUTLOOK, CONTINUED ● Other potential risks • Trade conflicts • Issues concerning export control ● No major restructurings or items affecting comparability planned for 2020 ● Cash level expected to decrease somewhat towards the end of the year ● Lower investment level 2020 compared to 2019 Studsvik Interim Report Second Quarter 2020 2020-07-21 15
Thank you! 2020-07-21 Studsvik Interim Report Second Quarter 2020 16
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