Studsvik Ab · OMXSTO:SVIK
Studsvik Ab — Q3 2007 Earnings Presentation
20 slides from Studsvik Ab's earnings presentation, Oct 29, 2007
Slide 1: Q3 presentation
Q3 presentation October 29, 2007
Slide 2: Third quarter
Third quarter • Good organic growth • Strategic opportunities secured • Weak profitability in third quarter • Outlook for 2007 is revised down due to third quarter result Presentation Q3 2007
Slide 3: Financial Targets and Outcome
Financial Targets and Outcome Target 9 m 2007 2006 EBIT margin 8% 5.0 % 5.8 % Organic growth 5% 14 % – Actual growth incl. Acquisitions 12,1% Equity-asset ratio 40 % 43.3 % 41.2 % Dividend policy 30 % of earnings after tax SEK 2.00 /share Presentation Q3 2007
Slide 4: Three Quarters in Brief
Three Quarters in Brief • Positive development for Decommissioning – Strong and profitable growth in the United Kingdom and acquisition of Alpha Engineering – Improved market position and margins on slow German market and acquisition of Dr Fary • Poor profitability but important strategic progress i
Slide 5: Key Figures and Ratios
Key Figures and Ratios Q3 07 Q3 06 9 m 07 9 m 06 2006 Net sales for the Group, SEKm 325.1 321.3 944.1 890.4 1,219.6 Operating profit, SEKm 8.8 23.0 46.8 50.1 71.3 Profit after net financial items, SEKm 4.6 17.3 35.9 32.9 57.1 Earnings per share, SEK 0.58 1.40 4.18 2.62 4.24 Operating margin, % 2.7 7
Slide 6: Waste Treatment third quarter
Waste Treatment third quarter • Sweden (including waste from rest of Europe) – Strong order intake and backlog for metallic and organic waste – Four steam generators delivered from Germany – Steam generator treatment started in late September after regulatory delays at customer – Incident in melting
Slide 7: Decommissioning third quarter
Decommissioning third quarter • Germany – Capacity utilization improved compared to previous quarters but still below 2006 • United Kingdom – Ramp up of project B243 – Acquisition of Alpha Engineering, nuclear engineering specialist with annual sales close to GBP 2,0 million and 30 employees – Compr
Slide 8: Operating Efficiency third quarter
Operating Efficiency third quarter • Software – First deliveries of new version of base codes, Casmo 5 – Good financial performance • Materials Technology – Improving order intake – Low margins due to unfavourable product mix and low utilization – Final preparations for ramp tests in Halden Presenta
Slide 9: Service and Maintenance third quarter
Service and Maintenance third quarter • Continued high capacity utilization in Germany due to extensive unplanned outages • Strengthened market position Presentation Q3 2007
Slide 10: Net sales per Business Area
Net sales per Business Area SEKm Q3 -07 Q3 -06 9 m 07 9 m 06 2006 Waste Treatment 140.2 147.7 451.2 359.7 508.7 Decommissioning 74.7 47.7 192.0 140.2 189.0 Operating Efficiency 33.3 31.3 125.8 124.0 167.7 Service and Maintenance 61.9 80.6 128.8 201.5 268.8 Presentation Q3 2007
Slide 11: Operating Profit per Business Area
Operating Profit per Business Area SEKm Q3 -07 Q3 -06 9 m 07 9 m 06 2006 Waste Treatment 5.0 12.6 27.1 27.9 33.6 Decommissioning 4.6 5.6 12.0 11.6 11.9 Operating Efficiency 2.2 3.1 5.6 18.7 36.4 Service and Maintenance 3.3 8.8 9.8 12.3 17.3 Presentation Q3 2007
Slide 12: Operating Margin per Business Area
Operating Margin per Business Area % Target Q3 -07 Q3 -06 9 m 07 9 m 06 2006 Waste Treatment 20 3.6 8.5 6.0 7.8 6.6 Decommissioning 10 6.2 11.7 6.3 8.3 6.3 Operating Efficiency 15 6.6 9.9 4.5 15.1 21.7 Service and Maintenance 7 5.3 10.9 7.6 6.1 6.4 Presentation Q3 2007
Slide 13: Sales per Strategic Business Area
Sales per Strategic Business Area 100% 90% 80% 70% 60% Service and Maintenance Operating Efficiency 50% Decommissioning 40% Waste Treatment 30% 20% 10% 0% 2005 2006 9 m 2007 Presentation Q3 2007
Slide 14: Sales per Region
Sales per Region 100% 80% 60% Asia and Other North America Rest of Europé 40% Sweden 20% 0% 2005 2006 9 m 2007 Presentation Q3 2007
Slide 15: Operational Focus rest of 2007
Operational Focus rest of 2007 • Improve margins in Waste treatment – Strong backlog makes it possible to run all facilities at full capacity • Improve order intake for Materials Technology – Perform first ramp tests in Halden • Finalize negotiations for UK Tier one LLWR contract – Profitable and st
Slide 16: Market Outlook
Market Outlook • The positive assessment of market prospects made at the beginning of the year is unchanged. • Programs for modernization in progress in several countries • Decommissioning activities are expected to increase in the UK, and in the medium term also in Germany • The North American wast
Slide 17: Outlook for 2007
Outlook for 2007 • Good organic growth – In line with previous statements • Operating profit somewhat lower than in 2006 – Revised outlook Presentation Q3 2007
Slide 18: The Studsvik Share
The Studsvik Share Presentation Q3 2007
Slide 19: Major Shareholders
Major Shareholders Number Shares and September 30, 2007 of Shares votes, % Karinen Family 1 584 012 19,3% Briban Invest AB 1 283 492 15,6% Allianz Global Inv. 714 561 8,7% Aster-X Capital Management 481 616 5,9% Citibank NA London 364 118 4,4% SEB fonder 350 000 4,3% SHB fonder 194 292 2,4% Invus In
Slide 20: Presentation Q3 2007
Presentation Q3 2007