Q2 2018 Presentation July 20, 2018 Our Focus and Offerings We - PowerPoint PPT Presentation

Q2 2018 Presentation July 20, 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 within: : • Fuel and materials testing Fuel and reactor management software • • Life cycle management of nuclear and radioactive hazards 2018-07-20 Interim Report Second Quarter 2018 2

Global Nuclear Power Market • Western Europe, the USA and Japan: cost pressure from alternative sources of energy • Life extension programs instead of new build • Decommissioning of older plants • Delayed new build of nuclear plants in Finland, UK and France • Germany: phasing out • Russia: significant expansion in plans to export Russian nuclear technology with the largest number of new plant builds planned worldwide • China, South Korea, Taiwan: expansion and deployment of nuclear technology • China builds a large number of nuclear plants • China and Korea plans to export their own nuclear technology globally • Korea developing a decommissioning program to phase out Korean nuclear plants • Taiwan preparing for decommissioning • The Middle East: planning and constructing new nuclear plants • UAE building four new reactors • Saudi Arabia and Jordan planning new nuclear builds 2018-07-20 Interim Report Second Quarter 2018 3

Group offerings matching growth opportunities Opportunities for Studsvik Studsvik Group Offerings • Supporting Russian, Chinese and South Korean Nuclear Technology Transfer providing an • export of nuclear technology: integrated offering supporting: • Provide expertise in qualification of • Fuel development nuclear technology Decommissioning • • Demand for internationally recognized Waste treatment technologies and • expertise and strong brands engineering services • Conditioning of spent fuel • Decommissioning programs based on • I nterim and final storage studies experience and proven technology: • Waste technologies • Interim and final disposal solutions • Engineering services • Supporting software 4 2018-07-20 Interim Report Second Quarter 2018

Broaden our services to other industries • Using Studsvik extensive experience in the nuclear sector to develop profitable applications outside the nuclear power market • Automated manufacturing and handling of nuclear isotopes used in medical instruments and industrial applications • Waste management of nuclear material associated with the oil and mining industry (Naturally Occurring Radioactive Material, NORM) 2018-07-20 Interim Report Second Quarter 2018 5

Financial performance April-June April-June January-June January-June Full year 2018 2017 2018 2017 2017 174.0 176.6 371.4 356.2 704.8 Sales, SEK million 26.7 15.7 29.8 22.2 23.5 Gross margin,% 2.0 -19.4 24.2 -21.4 -41.6 Operating Profit, SEK million 1.2 -11.0 6.5 -6.0 -5.9 Operating margin, % Profit after net financial items, -2.3 -23.1 16.3 -30.2 -58.7 SEK million -0.27 -2.42 1.27 -3.18 -5.47 Profit per share after tax, SEK 4.0 -38.9 25.6 -43.1 -84.2 Free cash flow, SEK million 6.2 7.3 13.1 12.4 22.1 Investments, SEK million 22.3 18.9 22.3 18.9 35.1 Net debt/Equity ratio, % 632 664 635 654 662 Average number of employees 2018-07-20 Interim Report Second Quarter 2018 6

Analysis of key ratio development Q2 • Sales SEK 174.0 (176.6) million • Gross margin 2 (-10) per cent • Operating result SEK 2.0 (-19.4) million • Restructuring costs SEK 1.4 (1.9) million • Free cash flow SEK 4.0 (-38.9) million • Improved operating results in all business areas • Reduced head office cost following organizational changes implemented Q4-2017 • Continued improvement in cash flow 2018-07-20 Interim Report Second Quarter 2018 7

KEY OFFERINGS – CONSULTANCY SERVICES We manage Radioactive Hazards to keep our customers Safe Repository Engineering Radioactive Waste Optimization – Waste Mgmt Processes Management - Safety Analysis, Licensing and Planning Environmental Radiation Safety & Nuclear Services Protection Decommissioning - Norm - Radiological inventory, characterization & clearance 2018-07-20 Interim Report Second Quarter 2018 8

Financial performance – Consultancy Services April-June April-June January-June January-June Full year 2018 2017 2018 2017 2017 19.4 28.0 40.6 61.7 123.0 Sales, SEK million 1.1 -1.3 1.1 0.3 11.3 Operating Profit, SEK million 5.7 -4.6 2.7 0.5 9.2 Operating Profit margin, % 1.4 0.5 1.4 1.0 2.7 Investments, SEK million 55 62 54 50 57 Average number of employees 2018-07-20 Interim Report Second Quarter 2018 9

Operational highlights – Consultancy Services • Sales SEK 19.4 (28.0) million • Operating profit SEK 1.1 (-1.3) million • Restructuring costs SEK 1.4 (0) million • Comparable operating profit 2.5 (-1.3) • USA and Sweden picking up driven by services related to waste treatment technologies • Drop in net sales reflecting exit from non profitable business in the UK and Sweden • Continued focus on waste treatment technologies and related engineering services • Japan - Kobe Steel joint venture • China - Dynatech license agreement • France - Areva • USA - Department of Energy • South Korea - interesting market for waste treatment technologies 2018-07-20 Interim Report Second Quarter 2018 10

KEY OFFERINGS – FUEL & MATERIALS TECHNOLOGY Fuel & Materials Life Cycle Fuel Qualification Plant Life Hot Cell Management Technologies Engineering Final & Interim Transport of Storage Research Irradiated Materials 2018-07-20 Interim Report Second Quarter 2018 11

Financial performance – Fuel- & Materials Technology April-June April-June January-June January-June Full year 2018 2017 2018 2017 2017 53.2 52.2 119.9 104.7 195.0 Sales, SEK million 7.4 4.9 17.7 10.7 5.3 Operating Profit, SEK million 13.9 9.4 14.8 10.2 2.7 Operating Profit margin, % 3.9 4.9 9.3 9.0 13.8 Investments, SEK million 97 99 97 100 101 Average number of employees 2018-07-20 Interim Report Second Quarter 2018 12

Operational highlights – Fuel & Materials Technology • Sales SEK 53.2 (52.2) million • Operating profit SEK 7.4 (4.9) million • YTD operating profit SEK 17.7 (10.7) million • Catch-up of delay from Q4 2017 continued to drive underlying performance • Cost for changeover and overtime higher than normal during catch-up period • Part of Hot cell facility being rebuilt to accommodate production line for medical isotopes • Improved processes for handling of production related secondary waste decreases cost • Continued strong demand for services offered evidenced by strong order intake • Cost for recruitment and onboarding burdens Q2 results but necessary to support growth 2018-07-20 Interim Report Second Quarter 2018 13

KEY OFFERINGS - SCANDPOWER Nuclear Analysis Software & Services Used Fuel Analysis & Fuel Design, Core Design, Core Management (Interim and Monitoring & Plant Performance Permanent Storage) Optimization New and Advanced Operator Training Consulting, Reactor Design & Simulation Engineering Services Licensing & Knowledge Transfer 2018-07-20 Interim Report Second Quarter 2018 14

Financial Performance – Scandpower April-June April-June January-June January-June 2018 2017 2018 2017 Full year 2017 23.8 17.1 66.6 36.8 81.0 Sales, SEK million -1.0 -3.5 19.7 -7.1 -11.8 Operating Profit, SEK million Operating Profit margin, % -4.2 -20.5 29.6 -19.3 -14.6 0.2 0.1 0.2 0.1 0.7 Investments, SEK million 33 34 33 34 34 Average number of employees 2018-07-20 Interim Report Second Quarter 2018 15

Operational highlights – Scandpower • Sales SEK 23.8 (17.1) million • Operating profit SEK -1.0 (-3.5) million • YTD operating profit SEK 19.7 (-7.1) million • Solid performance in software sales, maintenance, services and training • 30 MSEK of TVEL order delivered, main part of remaining SEK 8 million to be delivered in Q3-Q4 • Long but advancing procurement processes for software and services • 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 • 16 2018-07-20 Interim Report Second Quarter 2018

KEY OFFERINGS - GERMANY Decommissioning and Radiation Safety Nuclear Radiation Safety & Decommissioning Protection - Radiological inventory, characterization & clearance 2018-07-20 Interim Report Second Quarter 2018 17

Financial Performance - Germany April-June April-June January-June January-June 2018 2017 2018 2017 Full year 2017 77.4 74.4 141.3 144.7 291.1 Sales, SEK million -0.3 -10.3 -5.1 -10.3 -8.4 Operating Profit, SEK million -0.4 -13.8 -3.6 -7.1 -2.9 Operating Profit margin, % -0.1 0.1 0.2 0.6 1.4 Investments, SEK million 418 430 424 430 435 Average number of employees 2018-07-20 Interim Report Second Quarter 2018 18