Q1 2018 Presentation - Studsvik · Q1 2018 Presentation April 25, 2018. Focus on products and...

Q1 2018 PresentationApril 25, 2018

Focus on products and services within: • Fuel and materials testing• Fuel and reactor management software • Life cycle management of nuclear and radioactive hazards

We develop, sell and deliver innovative technical solutions to create superior value by improving performance and reducing risk.

Our Focus and Offerings

2018-04-25 2Interim Report First Quarter 2018

January-March2018

January-March2017

Full year2017

Sales, SEK million 197.4 179.6 704.8

Gross margin,% 32.6 28.5 23.5

Operating Profit, SEK million 22.2 -2.0 -41.6

Operating margin, % 11.2 -1.1 -5.9

Profit after net financial items, SEK million 18.6 -7.1 -58.7

Profit per share after tax, SEK 1.55 -0.76 -5.47

Free cash flow, SEK million 21.6 -4.2 -84.2

Investments, SEK million 6.9 5.1 22.1

Net debt/Equity ratio, % 25.5 2.5 35.1

Average number of employees 630 633 662

Financial performance

2018-04-25 Interim Report First Quarter 2018 3


• Sales SEK 197.4 (179.6) million – increase with 10 percent

• Gross margin 33 (29) percent

• Operating result SEK 22.2 (-2.0) million

• Restructuring costs SEK 0 (4.2) million

• Free cash flow SEK 21.6 (-4.2) million (includes SEK 20 million released from escrow)

• Strong results in Scandpower following SEK 32 million TVEL-order with SEK 25 million delivered in Q1

• Full production in Fuel- and Materials Technology with catch up from Q4 plus high order intake

• Consultancy Services weak in Sweden and UK

• Germany continues to struggle with low capacity utilization and unfavorable pricing

• Cost savings in head office with new organization from January 1

Analysis of key ratio development Q1

Consultancy ServicesBusiness Area Fuel and Materials Technology Studsvik Scandpower Germany

2018-04-25 5

K E Y O F F E R I N G S – CO N S U LTA N C Y S E RV I C E SWe m a n a g e R a d i o a c t i v e H a za r d s t o ke e p o u r c u s t o m e r s S a fe

Environmental Services

- Norm

Engineering – Waste Mgmt Processes

Nuclear Decommissioning

-Radio logica l inventory, characterizat ion & c learance

Repository Optimization

- Safety Analys is , L icensing and P lanning

Radiation Safety & Protection

Radioactive Waste Management

Interim Report First Quarter 2018


January-March 2018

January-March 2017

Full year2017


Operating Profit, SEK million 0.0 1.6 11.3

Operating Profit margin, % 0.0 4.5 8.4

Investments, SEK million 0 0.4 3.4





• Sales SEK 21.2 (35.4) million

• Operating profit SEK 0 (1.6) million

• Restructuring costs SEK 0 (0) million

• YTD operating profit SEK 0 (1.6) million.

• Low demand and utilization ratio in Sweden, UK and USA

• Drop in net sales also reflecting exit from not profitable business in the UK (HVAC, Implementation)

• Continued focus on IP-technology and related engineering services

• Japan - Kobe Steel joint venture

• China - Dynatech license agreement

• France – Areva

• USA - Department of Energy

Operational highlights




KEY OFFERINGS – FUEL & M ATERIALS TEC HNOLOGYF u e l & M a t e r i a l s L i f e C y c l e

Transport of Irradiated Materials

Final & Interim Storage Research

Engineering

Fuel Qualification Hot Cell Technologies

Plant Life Management




January-march 2018

January-march 2017

Full year 2017


Operating Profit, SEK million 10.3 5.8 5.3

Operating Profit margin, % 15.4 11.0 2.7





• Operating profit SEK 10.3 (5.8) million


• YTD operating profit SEK 10.3 (5.8) million

• Hot cell facility up and running as planned

• Catch-up of delay from Q4 2017 combined with strong order intake gives solid performance

• Part of Hot cell facility being rebuilt to accommodate production line for medical isotopes

• Continued strong demand for services offered by business area



Consultancy ServicesBusiness Area Studsvik ScandpowerFuel- and Materials Technology Germany

112018-04-25 Interim Report First Quarter 2018

K E Y OF F E R I N GS - STUD SVI K S CA N D POWERN u c le a r A n a ly s i s S o f t ware & S e r v i ces

Fuel Design, Core Design, Core Monitoring & Plant Performance

Optimization

Consulting, Engineering Services

& Knowledge Transfer

Operator Training Simulation

Used Fuel Analysis & Management (Interim and

Permanent Storage)

New and Advanced Reactor Design &

Licensing


Financial Performance


January-March 2018

January-March 2017

Full year 2017


Operating Profit, SEK million 20.7 -3.6 -11.8

Operating Profit margin, % 48.4 -18.3 -14.6

Investments, SEK million 0 0 0.7






• Operating profit SEK 20.7 (-3.6) million

• Restructuring costs SEK 0 (0) million

• YTD operating profit SEK 20.7 (-3.6) million

• Order signed with TVEL for 38 MSEK of which 25 MSEK delivered in Q1

• Software and documentation delivered in Q1

• Engineering, consulting and further documentation to be delivered mainly in remaining 2018

• Still market demand for Software and services but procurement processes remain longer

• 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



K E Y OF F E R I N GS - Ge rm a nyD e co m m is s io n ing a n d R a d ia t io n S a fet y

Nuclear Decommissioning

-Radio logica l inventory, characterizat ion & c learance

Radiation Safety & Protection



Financial Performance

January-March 2018

January-March 2017

Full year 2017


Operating Profit, SEK million -4.8 0 -8.4

Operating Profit margin, % -7.5 0 -2.9





Operational highlights• Sales SEK 63.9 (70.5) million

• Operating profit SEK -4.8 (0) million


• YTD operating profit SEK -4.8 (0) million

• Weak start of the year with lower than planned utilization ratio

• Pricing still insufficient in several agreements

• Market for decommissioning remains hesitant but will develop positively over time

• Focus on increasing utilization ratio and price

Challenges & Opportunities Across the Globe

Mixed picture Europe• Profitability issues• Cost reduction initiatives• Germany phasing out• Finland & UK invest• Decommissioning of several units• Life time extension

Cost focus in North America• Profitability issues• Nuclear promise – reduce cost 30 %• Decommissioning• Life time extension• R&D new fuel and reactor types

Growth in Asia and Middle East• New reactors• China, Russia and Korea investing• Japan to start a limited number• R&D new fuel and reactor types• Middle East, mainly UAE investing• National waste programs


Nuclear Power Market

• Western Europe, the USA and Japan are facing life extension programs and preparations for decommissioning

• Asia, mainly China, are building new nuclear plants

• The Middle East, mainly UAE, are in the phase of planning and constructing new nuclear plants

• Requirements for national waste programs are increasing, mainly in Asia

• Increasing demands on electricity and still low price pressure

Other markets

• Isotopes for medicine purpose, one of the larger producers of isotopes has shut down its reactor. In total there are 2-3 reactors in the world that irradiates isotopes

• Oil and mining industry generates naturally occurring radioactive material (NORM)

CEO’s statement – Studsvik in balance with the market

• We are:

• A Group with strong business focus and a part of the market change

• An organization prepared for change and thereby offer flexible services and products

• Aware of the risks and uncertain political situations and act accordingly

• With our extensive experience, we have in-depth knowledge and expertise

• Innovation for us is to think in new ways, using known techniques in new ways and in new areas

Market challenges

Studsvik’sopportunities

Appendix

Balance sheetMarch

2018March

2017December

2017

Assets

Non-current assets 466.6 444.8 456.6

Current assets 443.0 449.3 368.3

Total assets 909.6 894.1 824.9

Equity and liabilities

Equity 310.0 340.3 288.1

Non-controlling interest 0.3 0.4 0.3

Non-current liabilities 369.0 359.4 364.7

Current liabilities 230.3 194.0 171.8Total equity and liabilities 909.6 894.1 824.9


2018-04-25 23Interim Report First Quarter 2018

Q1 2018 Presentation - Studsvik · Q1 2018 Presentation April 25, 2018. Focus on products and...

Documents

Transcript of Q1 2018 Presentation - Studsvik · Q1 2018 Presentation April 25, 2018. Focus on products and...