Q3 2018 Presentation October 22, 2018 Our Focus and Offerings We - PowerPoint PPT Presentation

Q3 2018 Presentation October 22, 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 2018-10-22 Interim Report Third Quarter 2018

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 2018-10-22 Interim Report Third 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) 2018-10-22 Interim Report Third Quarter 2018

Financial performance July- July- January- January- September September September September Full year 2018 2017 2018 2017 2017 167.2 183.3 538.6 539.5 704.8 Sales, SEK million 24.9 30.8 25.1 25.1 23.5 Gross margin,% 9.5 15.5 33.7 -5.9 -41.6 Operating Profit, SEK million Operating margin, % 5.7 8.5 6.3 -1.1 -5.9 Profit after net financial items, 6.1 10.9 22.3 -19.3 -58.7 SEK million 0.55 1.35 1.81 -1.83 -5.47 Profit per share after tax, SEK -0.8 -10.4 24.8 -53.5 -84.2 Free cash flow, SEK million 7.7 2.8 20.8 15.2 22.1 Investments, SEK million 22.9 23.1 22.9 23.1 35.1 Net debt/Equity ratio, % 632 664 631 668 662 Average number of employees 2018-10-22 Interim Report Third Quarter 2018

Analysis of key ratio development Q3 • Sales SEK 167.2 (183.3) million • Gross margin 24.9 (30.8) per cent • Operating result SEK 9.5 (15.5) million • Restructuring costs SEK 3.8 (0.1) million • SEK 13.5 million gain from sale of Horsviks Gård • Free cash flow SEK -0.8 (-10.4) million • Mixed development in operating results for the quarter • Q3 last year included SEK 22 million FBSR license revenue and profit • YTD still well ahead of last year with operating result at SEK 33.7 million vs -5.9 • Reduced head office cost following organizational changes implemented Q4-2017 • Continued improvement in cash flow 2018-10-22 Interim Report Third Quarter 2018

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 2018-10-22 Interim Report Third Quarter 2018

Financial performance – Consultancy Services July- July- January- January- September September September September Full year 2018 2017 2018 2017 2017 Sales, SEK million 18.8 39.8 59.4 101.5 123.0 -8.7 15.5 -7.6 15.8 11.3 Operating Profit, SEK million Operating Profit margin, % -46.3 38.9 -12.8 15.6 9.2 0.6 0.2 2.0 1.1 2.7 Investments, SEK million 54 53 54 58 57 Average number of employees 2018-10-22 Interim Report Third Quarter 2018

Operational highlights – Consultancy Services • Sales SEK 18.8 (39.8) million • Operating profit SEK -8.7 (15.5) million • Restructuring costs SEK 2.5 (2.6) million • Comparable operating profit -6.2 (18.1) • YTD operating profit SEK -7,6 (15,8) million • Q3 last year included SEK 22 million FBSR license revenue and profit • Drop in net sales reflecting exit from non profitable business in the UK and Sweden • Unsatisfactorily results • Mikael Karlsson appointed new Business Area President • Continued focus on waste treatment technologies, metal treatment technologies and related engineering services • Increased focus on non-IP related consultancy services 2018-10-22 Interim Report Third Quarter 2018

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 2018-10-22 Interim Report Third Quarter 2018

Financial performance – Fuel- & Materials Technology July- July- January- January- September September September September Full year 2018 2017 2018 2017 2017 Sales, SEK million 40.0 36.0 159.9 140.6 195.0 0.7 -3.6 18.4 7.1 5.3 Operating Profit, SEK million Operating Profit margin, % 1.8 -10.0 11.5 5.1 2.7 6.4 1.9 15.7 10.9 13.8 Investments, SEK million 97 100 97 100 101 Average number of employees 2018-10-22 Interim Report Third Quarter 2018

Operational highlights – Fuel & Materials Technology • Sales SEK 40.0 (36.0) million • Operating profit SEK 0.7 (-3.6) million • YTD operating profit SEK 18.4 (7.1) million • Q3 is vacation season and a soft quarter • Efficiency problems in production having negative impact on margin • Part of Hot cell facility being rebuilt to accommodate production line for medical isotopes • Continued strong demand for services offered evidenced by strong order intake • Cost for recruitment and onboarding continues to burden cost but enabling future growth 2018-10-22 Interim Report Third Quarter 2018

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 2018-10-22 Interim Report Third Quarter 2018

Financial Performance – Scandpower July- July- January- January- September September September September Full year 2018 2017 2018 2017 2017 31.2 19.6 97.8 56.4 81.0 Sales, SEK million Operating Profit, SEK million 1.2 -2.7 20.9 -9.8 -11.8 3.8 -13.8 21.4 -17.4 -14.6 Operating Profit margin, % 0.3 0.1 0.5 0.2 0.7 Investments, SEK million 32 34 32 34 34 Average number of employees 2018-10-22 Interim Report Third Quarter 2018

Operational highlights – Scandpower • Sales SEK 31.2 (19.6) million • Operating profit SEK 1.2 (-2.7) million • YTD operating profit SEK 20.9 (-9.8) million • Acceptable performance in Q3 software sales, maintenance, services and training • Full SEK 38 million of TVEL order delivered, SEK 8 million delivered in Q3 • Work to obtain export approval for certain software to China continues • Continued efforts to add application for spent fuel and additional consultancy services • Increased and expanded commercial activities opens up new opportunities 2018-10-22 Interim Report Third Quarter 2018

KEY OFFERINGS - GERMANY Decommissioning and Radiation Safety Nuclear Radiation Safety & Decommissioning Protection - Radiological inventory, characterization & clearance 2018-10-22 Interim Report Third Quarter 2018

Financial Performance - Germany July- July- January- January- September September September September Full year 2018 2017 2018 2017 2017 78.3 81.9 219.6 226.6 291.1 Sales, SEK million 2.5 10.7 -2.6 0.4 -8.4 Operating Profit, SEK million Operating Profit margin, % 3.2 13.1 -1.2 0.2 -2.9 Investments, SEK million -0.1 0.0 0.1 0.6 1.4 423 439 423 439 435 Average number of employees 2018-10-22 Interim Report Third Quarter 2018

Operational highlights - Germany • Sales SEK 78.3 (81.9) million • Operating profit SEK 2.5 (10.7) million • Restructuring costs SEK 0 (2.5) million • YTD operating profit SEK -2.6 (0.4) million • Q3 results below expectation • Parallel revision periods at customer plants created resource constraints at peaks and excess resources between revisions • Market demand is picking up as decommissioning activities are initiated • Still slow market by any standards • Continued focus on utilization ratio, price and cost control 2018-10-22 Interim Report Third Quarter 2018

Appendix 2018-10-22 Interim Report Third Quarter 2018