Q4 2017 Presentation February 15, 2018 Our Focus and Offerings We - PowerPoint PPT Presentation

Q4 2017 Presentation February 15, 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 • 2018-02-15 Year-end 2017 Presentation 2

Financial performance October – December October – December Full year Full year 2017 2016 2017 2016 165.4 246.3 704.8 758.8 Sales, SEK million 18.4 36.9 23.5 29,5 Gross margin,% -35.7 27.0 -41.6 24.7 Operating Profit, SEK million -21.6 11.0 -5.9 3.2 Operating margin, % -39.4 18.1 -58.7 -0.6 Profit after net financial items, SEK million -3.65 0.22 -5.47 6.59 Profit per share after tax, SEK -30.6 -22.2 -84.2 129.6 Free cash flow, SEK million* 6.9 5.5 22.1 15.3 Investments, SEK million 35.1 0.8 35.1 0.8 Net debt/Equity ratio, % 667 695 662 687 Average number of employees * Includes Waste Treatment which was divested 2016 2018-02-15 Year-end 2017 Presentation 3

Analysis of key ratio development Q4 • Sales SEK 165 (246) million – decrease with 33 percent • Gross margin 18 (37) percent • Operating result SEK -36 (27) million • Restructuring costs SEK 15 (8) million • Free cash flow SEK -31 (-22) million (2016 excl. divestment of Waste Treatment) • YTD operating result SEK -42 (25) million (includes restructuring) • No FBSR license sale in Q4 vs SEK 23 million in Q4-2016 • Consultancy Services weak in Germany and Sweden • Fuel & Materials Technology weak Q4 following the unplanned stop in the Hot Cell facility • Studsvik Scandpower continues to suffer from customers longer procurement processes • Restructuring of head office and business areas – increased customer focus at reduced cost 2018-02-15 Year-end 2017 Presentation 4

Business Area Consultancy Services Fuel and Materials Technology Studsvik Scandpower 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 Nuclear Environmental Radiation Safety & Decommissioning Services Protection - Radiological inventory, - Norm characterization & clearance 2018-02-15 Year-end 2017 Presentation 5

Business Area Consultancy Services Fuel and Materials Technology Studsvik Scandpower Financial performance October - October - December December Full year Full year 2017 2016 2017 2016 84.4 128.9 407.3 448.4 Sales, SEK million -13.3 7.9 2.9 14.0 Operating Profit, SEK million Operating Profit margin, % -15.8 6.1 0.7 3.1 2.3 0.3 4.0 2.4 Investments, SEK million 497 525 492 523 Average number of employees 2018-02-15 Year-end 2017 Presentation 6

Business Area Consultancy Services Fuel and Materials Technology Studsvik Scandpower Operational highlights • Sales SEK 84 (129) million • Operating profit SEK -13 (8) million • Restructuring costs SEK 1 (6) million • YTD operating profit SEK 3 (14) million. • No FBSR license sale in Q4 vs SEK 23 million in Q4-2016 • Low demand and utilization ratio in Germany and Sweden • USA and UK improving performance over last year • Continued focus on FBSR-technology and related engineering services • Progress in Japan with Kobe Steel joint venture • Progress in China with Dynatech license agreement • Projects in France (Areva) and USA (Department of Energy) moving forward 2018-02-15 Year-end 2017 Presentation 7

Business Area Studsvik Scandpower Consultancy Services Fuel and Materials Technology 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 2018-02-15 Year-end 2017 Presentation 8

Business Area Studsvik Scandpower Consultancy Services Fuel and Materials Technology Financial performance October – October – Full year Full year December 2017 December 2016 2017 2016 54.4 65.9 195.0 196.3 Sales, SEK million -1.7 10.2 5.3 29.7 Operating Profit, SEK million -3.1 15.5 2.7 15.1 Operating Profit margin, % 2.9 4.9 13.8 11.7 Investments, SEK million 101 93 101 93 Average number of employees 2018-02-15 Year-end 2017 Presentation 9

Business Area Studsvik Scandpower Consultancy Services Fuel and Materials Technology Operational highlights • Sales SEK 54 (66) million • Operating profit SEK -2 (10) million • Restructuring costs SEK 1 (1) million • YTD operating profit SEK 5 (30) million • Incident in Hot cell facility in September reduced Q4 revenue and profit with SEK 12 million • Hot cell in full operation since mid December and no customer orders lost • 400 MSEK contract signed with Elekta for supply of medical isotopes over initially nine years • Continued strong demand for services offered by business area 2018-02-15 Year-end 2017 Presentation 10

Business Area Fuel- and Materials Technology Consultancy Services Studsvik Scandpower KEY OFFERINGS - STUDSVIK 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 11 2018-02-15 Year-end 2017 Presentation

Business Area Fuel- and Materials Technology Consultancy Services Studsvik Scandpower Financial Performance October - October - December December Full year Full year 2017 2016 2017 2016 24.6 42.4 81.0 96.4 Sales, SEK million -2.0 13.6 -11.8 2.8 Operating Profit, SEK million Operating Profit margin, % -8.1 32.1 -14.6 2.9 Investments, SEK million 0.5 0.1 0.7 0.1 34 32 34 34 Average number of employees 12 2018-02-15 Year-end 2017 Presentation

Business Area Fuel- and Materials Technology Consultancy Services Studsvik Scandpower Operational highlights • Sales SEK 25 (42) million • Operating profit SEK -2 (14) million • Restructuring costs SEK 3 (0) million • YTD operating profit SEK -12 (3) million • Continued demand for Software and services but procurement processes are longer • Export approval for China being processed but uncertain when approval will be granted • Broaden offering by adding application for spent fuel and additional consultancy services • Focus on increasing and expanding commercial activities and reach 2018-02-15 Year-end 2017 Presentation 13

Challenges & Opportunities Across the Globe Mixed picture Europe Strong growth in Asia Cost focus in North America Profitability issues New reactors Profitability issues • • • Cost reduction initiatives China, Russia and Korea investing Nuclear promise – reduce cost 30 % • • • Germany phasing out Japan to start a limited number Decommissioning • • • Finland & UK invest R&D new fuel and reactor types Life time extension • • • Decommissioning of several units R&D new fuel and reactor types • • Life time extension • 2018-02-15 Year-end 2017 Presentation 14

Studsvik Customer Values • Risk Mitigation - 70 years of EXPERIENCE in the global nuclear community • Safety and Efficiency - Helping our customers meet regulatory compliance while minimising cost • Commitment - Supporting our customers through long term relationships

Studsvik executive management team Camilla Hoflund CEO Pål Jarness CFO Steven Freel Joakim Lundström Stefan Bergström Business Area President Business Area President Business Area President Fuel & Materials Studsvik Scandpower Consultancy Services Technology 2018-01-01 Corporate Presentation 16

Appendix

Balance sheet December 2017 December 2016 Assets Non-current assets 456.6 447.1 Current assets 368.3 453.9 Total assets 824.9 901.0 Equity and liabilities Equity 288.1 348.1 Non-controlling interest 0.3 0.4 Non-current liabilities 364.7 359.9 Current liabilities 171.8 192.6 Total equity and liabilities 824.9 901.0 2018-02-15 Year-end 2017 Presentation 18

2018-02-15 Year-end 2017 Presentation 19