YEAR-END REPORT 2019 CEO Camilla Hoflund and CFO Claes Engvall - PowerPoint PPT Presentation

YEAR-END REPORT 2019 CEO Camilla Hoflund and CFO Claes Engvall February 13, 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 ● 550 employees ● Global presence Studsvik Year-end Report 2019 2020-02-13 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 Year-end Report 2019 2020-02-13 3

Q4 2019 STUDSVIK – IN SUMMARY October - October - December December Full year Full year 2019 2018 2019 2018 Sales, MSEK 202.6 187.6 654.0 726.1 Adjusted operating profit , 20.4 3.3 4.4 28.8 MSEK Operating profit/loss 20.4 -0.3 -10.4 33.5 Operating profit/loss after 11.7 -6.4 -28.0 8.7 tax, MSEK Free cashflow, MSEK 7.2 29.4 -38.8 54.2 • Positive development for The Group’s total available cash: • September 30, 2019 (Q3) Scandpower and German Operation • Operating profit development for 64 MSEK • December 31, 2019 (Q4): 2019 vs 2018 are negative in all segments except Germany 66 MSEK 2020-02-13 Studsvik Year-end Report 2019 4

STUDSVIK PROVIDES SMART TECHNOLOGY ENABLING NUCLEAR UTILITIES, ADVANCED REACTORS, AND RESEARCH FACILITIES TO DELIVER CLEAN ENERGY AND ENSURE SAFE DISPOSAL EFFICIENTLY Studsvik Year-end Report 2019 2020-02-13 5

CURRENT SITUATION ● What will be the role of nuclear in the climate debate? • China is building reactors to support clean environment • UAE is to commission the first reactors in Middle East • Lifetime extension programs are needed for aging plants • Alternatives for LWR such as Small Modular Reactors ● Handle the legacy from the industry • Radioactive waste needs solutions • Decommissioning in Germany and Sweden • Final disposal research and interim solutions • National programs need innovation for efficient solutions Studsvik Year-end Report 2019 2020-02-13 6

Q4 2019 FUEL- & MATERIALS TECHNOLOGY PERCENTAGE OF SALES October - October - 31 December December Full year Full year 2019 2018 2019 2018 Sales, MSEK 65.2 64.4 200.1 224.3 Operating profit, MSEK 7.0 11.7 25.3 30.1 Operating profit margin, % 10.7 18.2 12.6 13.4 Investments, MSEK 5.3 7.5 22.9 23.2 Average number of 104 97 104 98 employees Highlights Outlook ● Challenging year with ● Stable production in hot cell technical issues ● Break through of fuel ● First two sets of medical qualification on new markets isotopes produced to Elekta ● Elekta plan ramp up 2020 ● Dissolved provision for restoration cost in Q2 of 10 MSEK 2020-02-13 Studsvik Year-end Report 2019 7

Q4 2019 WASTE MANAGEMENT TECHNOLOGY October - October - PERCENTAGE OF SALES 9 December December Full year Full year 2019 2018 2019 2018 Sales, MSEK 14.7 18.9 56.8 78.3 Operating profit/loss, -3.8 -3.1 -33.6 -10.7 MSEK Operating profit/loss -25.9 -16.4 -59.2 -13.7 margin, % Investments, MSEK 1.5 0.4 4.2 2.4 Average number of 47 52 46 51 employees Highlights Outlook ● Disappointing development ● 10 MSEK EBIT improvement year on year excl. items affecting ● Major restructuring performed comparability ● Items affecting comparability at ● Focus on license business 14 MSEK ● Break through of new waste concept InDRUM Studsvik Year-end Report 2019 8 2020-02-13

Q4 2019 SCANDPOWER PERCENTAGE OF SALES October - October - 20 December December Full year Full year 2019 2018 2019 2018 Sales, MSEK 61.2 39.4 130.1 137.2 Operating profit, MSEK 17.2 5.9 13.0 26.8 Operating profit margin, 28.1 15.0 10.0 19.5 % Investments, MSEK 1.0 0.0 1.3 0.5 Average number of 35 31 35 33 employees Highlights Outlook ● Strong year end performance ● Chinese subsidiary close to • Closing of license customers agreements ● Improved market and sales • Higher sales on home market capacity and Asia ● Re-classification of export ● Strong pipeline control for software 2020-02-13 Studsvik Year-end Report 2019 9

Q4 2019 GERMANY October- October - PERCENTAGE OF SALES December December Full year Full year 40 2019 2018 2019 2018 Sales, MSEK 61.7 65.9 263.0 285.4 Operating profit/loss, 4.6 -6.8 -1.0 -9.3 MSEK Operating profit/loss 7.5 -10.3 -0.4 -3.3 margin, % Investments, MSEK 1.3 0.2 1.7 0.3 Average number of 350 420 349 417 employees Highlights Outlook ● Improved financial ● Improve operation efficiency performance ● Increased demand for • Cost reductions engineering and radiation • Re-negotiation of protection services contracts ● 10 MSEK EBIT improvement • Strong staff commitment YoY excl items affecting ● Full order book for 2020 comparability 2020-02-13 Studsvik Year-end Report 2019 10

FINANCIAL HIGHLIGHTS ● Full year adjusted EBIT at 4.4 MSEK • Net of items affecting comparability of 14,8 MSEK ● Strong focus on cash and working capital through-out the organization ● The decision by the Land and Environment Court of Appeal is to be communicated on the 21 st of February. • Other alternatives to solve the guarantee issue is being looked into Studsvik Year-end Report 2019 2020-02-13 11

STUDSVIK GROUP EARNINGS October- October- December December Full year Full year 2019 2018 2019 2018 Sales, SEK million 202.6 187.6 654.0 726.1 Operating profit, SEK million 20.4 -0.3 -10.4 33.5 Operating margin, % 10.1 -0.2 -1.6 4.6 Profit after net financial 14.0 -3.8 -22.8 18.7 items, SEK million Profit per share after tax, 1.42 -0.78 -3.41 1.06 SEK Free cash flow, SEK million 7.2 29.4 -38.8 54.2 Investments, SEK million 9.4 11.3 32.7 32.1 Net debt/Equity ratio, % 27.4 14.0 27.4 14.0 Average number of 554 625 552 624 employees Studsvik Year-end Report 2019 2020-02-13 12

Q4 2019 VS Q4 2018 Group EBIT MSEK Q4 2019 20.4 Q4 2018 0.3 Deviation 20.7 SPECIFICATION OF DEVIATION Improved sales and margin driven by Scandpower 25.3 Improvements in Germany 11.4 Fuel and Material Technology -4.7 Other -11.3 Deviation 20.7 Studsvik Year-end Report 2019 2020-02-13 13

2019 VS 2018 Group EBIT MSEK 2019 -10.4 2018 33.5 Deviation -43.9 SPECIFICATION OF DEVIATION Lower sales (all BA) but gross profit margin stable at 24% -17.8 Items affecting comparability (14,8 MSEK for 2019) -5.9 Sale of Horsvik premises -13.6 Other -6.6 Deviation -43.9 Studsvik Year-end Report 2019 2020-02-13 14

CASHFLOW October - October - December December Full year Full year 2019 2018 2019 2018 EBITDA 27.7 4.8 18.6 52.9 Change in working capital -5.3 35.1 14.9 51.3 Cash flow from investments -9.4 -11.9 -25.3 -26.1 Financial items -4.4 -3.6 -9.2 -14.4 Tax paid -1.2 -0.1 -9.7 -6.4 Other -0.2 5.1 -28.1 -3.1 Free cash flow 7.2 29.4 -38.8 54.2 Studsvik Year-end Report 2019 2020-02-13 15

FINANCIAL OUTLOOK ● Fuel and Material Technology • Stability in operations and potentials in new markets ● Scandpower • Stable business with business opportunities in the US and China ● Waste Management Technology • 10 MSEK EBIT improvement year on year and potential for new license business ● Germany • 10 MSEK EBIT improvement year on year and continued focus on efficiencies Studsvik Year-end Report 2019 2020-02-13 16

FINANCIAL OUTLOOK ● Risks • Technical ramp-up of Elekta deliveries • Trade conflicts • Issues concerning export control • Long decision processes among customers ● No major restructurings or items affecting comparability planned for 2020 ● Expected cash improvements during first half of 2020 Studsvik Year-end Report 2019 2020-02-13 17

We turn complicated conditions into pragmatic solutions Studsvik Year-end Report 2019 2020-02-13 18

Thank you! 2020-02-13 Studsvik Year-end Report 2019 19