Q3 2012 Presentation October 26, 2012 Sales increase but decreased - PowerPoint PPT Presentation

Q3 2012 Presentation October 26, 2012

Sales increase but decreased profit and negative cash flow • Net sales increased to SEK 261.7 million (252.8) – Decrease of 2.7% in local currencies • Operating result decreased to SEK –27.9 million (–10.1 ) – Non-recurring items in the USA, SEK -18.3 million • Cash flow after investments amounted to SEK –123.2 million (16.0) – Including payments for final disposal of waste in the USA SEK 93.8 million • Net debt decreased to SEK 141.7 million (157.3) • CEO Anders Jackson will leave the company at a time to be decided later Q3 Report 2012 2

Key Figures and Ratios Q3-12 Q3-11 2011 2010 Net sales for the Group, SEKm 261.7 252.8 1,200.7 1,344.1 Operating profit, SEKm –27.9 –10.1 53.6 33.4 Of which non-recurring items, SEKm –18.3 0 0 0 Net profit, SEKm –27.9 –14.8 22.7 4.0 Earnings per share, SEK –3.39 –1.80 2.77 0.49 Cash flow from operations, SEKm –112.7 27.2 151.1 107.5 Operating margin, % neg 0.1 4.5 2.5 Equity-assets ratio, % 35.7 37.2 37.7 36.5 Average number of employees 1,107 1,137 1,153 1,169 Q3 Report 2012 3

Sweden – Q3 Waste Treatment for European Customers • Capacity utilization high in incineration facility Sales and operating profit 70 20 • Low utilization of metal facility 60 15 50 10 40 – Delayed deliveries 5 30 0 20 -5 10 • Large component product line 0 -10 Q3-09 Q4-09 Q1-10 Q2-10 Q3-10 Q4-10 Q1-11 Q2-11 Q3-11 Q4-11 Q1-12 Q2-12 Q3-12 well utilized – High dose rate in heat exchangers resulted in increased costs • Strong order books create potential for high capacity utilization in Q4 Current focus: Improve productivity and co-operation with other business segments Q3 Report 2012 4

United Kingdom – Q3 Waste Treatment, Decommissioning and Engineering & Services • Increasing sales and profitability Sales and operating profit – Production continued to be high in MRF 70 20 60 15 50 – Consulting operations well utilized 10 40 5 30 0 • Sound order book in all operations 20 -5 10 provides scope for high capacity 0 -10 Q3-09 Q4-09 Q1-10 Q2-10 Q3-10 Q4-10 Q1-11 Q2-11 Q3-11 Q4-11 Q1-12 Q2-12 Q3-12 utilization in Q4 Current focus: Continue building order book for MRF and grow consulting operations Q3 Report 2012 5

Germany – Q3 Decommissioning and Engineering & Services • High capacity utilization and Sales and operating profit positive result 140 14 12 120 10 100 – Continued imbalance between demand and 8 80 6 available resources in the German market 4 60 2 40 0 – Price pressure 20 -2 0 -4 Q3-09 Q4-09 Q1-10 Q2-10 Q3-10 Q4-10 Q1-11 Q2-11 Q3-11 Q4-11 Q1-12 Q2-12 Q3-12 • Organization gradually adapted to the market situation • French operations not profitable • Measures taken to right-size • Studsvik and Westinghouse will jointly offer turn-key decommissioning services Current focus: Adapt business model to new situation Q3 Report 2012 6

USA – Q3 Waste Treatment • Erwin Sales and operating profit – Decreased sales – Agreement with WCS eliminated 100 40 considerable risk and uncertainty 90 30 80 20 70 • Low volumes in Memphis 60 10 50 0 – Flat market 40 30 -10 – Decreased sales 20 -20 10 0 -30 • Consulting operations Q3-09 Q4-09 Q1-10 Q2-10 Q3-10 Q4-10 Q1-11 Q2-11 Q3-11 Q4-11 Q1-12 Q2-12 Q3-12 – God prospects but moving slowly • Non-recurring items in Q3 MSEK -18.3 • Potential for improved capacity utilization in Q4 Current focus: Secure waste shipments into Erwin and Memphis and continue improving efficiency Q3 Report 2012 7

Global Services – Q3 Materials Technology and In-core fuel management software • Positive trend in Software Sales and operating profit operations continued 100 30 – Sales and earnings increased 90 25 80 70 20 60 • Materials technology 50 15 40 10 30 gradually recovering 20 5 10 0 0 Q3-09 Q4-09 Q1-10 Q2-10 Q3-10 Q4-10 Q1-11 Q2-11 Q3-11 Q4-11 Q1-12 Q2-12 Q3-12 • High utilization in Consulting operations • Sound order book will make high capacity utilization in Q4 Current focus: Capitalize on strong order book Q3 Report 2012 8

Net sales SEKm Q3 -12 Q3 -11 2011 2010 Sweden 167.3 179.9 32.7 27.5 United Kingdom 46.7 27.5 107.8 80.5 Germany 365.3 461.5 80.8 94.9 USA 242.6 272.0 44.8 43.1 Global Services 62.3 54.2 287.9 296.7 Other 9.9 47.0 67.7 10.2 Group eliminations -4.3 -17.2 -14.2 -15.8 GROUP 1,200.7 1,344.1 261.7 252.8 Q3 Report 2012 9 9

Operating profit SEKm Q3 -12 Q3 -11 2011 2010 Sweden -6.3 -4.1 19.8 19.9 United Kingdom 0.0 -3.4 -9.7 -24.2 Germany 2.0 8.2 18.4 28.8 -23.3 -11.2 22.6 1.4 USA Of which non-recurring items -18.3 0 0 0 Global Services 5.7 6.5 33.7 33.1 Other -6.0 -6.1 -31.2 -25.6 Group eliminations - - - - -27.9 -10.1 53.6 33.4 GROUP GROUP Less non-recurring items -9.6 -10.1 53.6 33.4 Q3 Report 2012 10 10

Balance sheet Group, September 2012 Sept OB Intangible assets 328 898 350 715 Tangible assets 465 566 481 065 Other non-current assets 122 001 169 176 Current assets 289 950 332 917 Cash & Bank 99 160 122 092 Total assets 1 305 574 1 455 965 Equity 465 958 548 778 Provisions 222 290 291 511 Interest bearing debts 240 883 217 675 Other non-current liabilities 40 314 39 045 Current liabilities 336 130 358 956 Total liabilities & Equity 1 305 574 1 455 965 Q3 Report 2012 11

Outlook • Demand for electricity is increasing globally • Modernization and upgrading programs are under way in several countries • In parallel, new nuclear capacity is being planned and built • German service & maintenance market will stabilize on a lower level • German plants will be decommissioned but timing not yet clear • Decommissioning of nuclear facilities in other markets is expected to expand substantially in the long-term Q3 Report 2012 12

Summing up Q3 2012 • Net sales increased to SEK 261.7 million (252.8) – Decrease of 2.7% in local currencies • Operating result decreased to SEK –27.9 million (–10.1 ) – Non-recurring items in the USA, SEK -18.3 million • Cash flow after investments amounted to SEK –123.2 million (16.0) – Including payments for final disposal of waste in the USA SEK 93.8 million • Net debt decreased to SEK 141.7 million (157.3) • CEO Anders Jackson will leave the company at a time to be decided later Q3 Report 2012 13

14 Q3 Report 2012 Q3 report 2009