Studsvik Ab · OMXSTO:SVIK
Studsvik Ab — Q2 2007 Earnings Presentation
22 slides from Studsvik Ab's earnings presentation, Aug 23, 2007
Slide 1: Q2 presentation
Q2 presentation August 23, 2007
Slide 2: High activity in the second quarter
High activity in the second quarter • Strong development in core business – Particularly in the UK • Important orders confirm Studsvik’s position as a nuclear services leader • High activity to implement strategy – Short term transaction cost Presentation Q2 2007
Slide 3: Financial Targets and Outcome
Financial Targets and Outcome Target H1 2007 2006 EBIT margin 8% 6.1 % 5.8 % Organic growth 5% 12 % – Actual growth incl. Acquisitions 12,1% Equity-asset ratio 40 % 41.2 % 41.2 % Dividend policy 30 % of earnings after tax SEK 2,00 /share Presentation Q2 2007
Slide 4: Summary of First two Quarters 2007
Summary of First two Quarters 2007 • UK operations increased in scale • MSEK 190 order for construction of waste facility in Sellafield, UK • Technical consulting operation Dr. Fary acquired in Germany • MSEK 30 decommissioning order in Obrigheim, Germany • Participation in bidding process for a nuc
Slide 5: Key Figures and Ratios
Key Figures and Ratios Q2/07 Q2/06 H1/07 H1/06 2006 Net sales for the Group, SEKm 345.8 317.5 619.0 569.1 1,219.6 Operating profit, SEKm 15.8 26.7 38.0 27.1 71.3 Profit after net financial items, SEKm 12.8 20.3 31.3 15.5 57.1 Earnings per share, SEK 0.90 2.01 3.60 1.20 4.24 Operating margin, % 4.6 8
Slide 6: Operational Focus 2007
Operational Focus 2007 • Continuing investments within Waste Treatment • Further development of UK operations • Further enhanced marketing and sales organization • Increasing collaboration between SBA:s – integrated client offerings Presentation Q2 2007
Slide 7: Waste Treatment
Waste Treatment • Increasing net sales in Swedish operations in Q2 – Increasing volumes of metal treated – Large components operations developing well – Temporarily lower levels of organic material • Increasing volumes in all facilities in the US – Record breaking volumes in Erwin in Q2 after weak s
Slide 8: THOR Treatment Technologies, LLC
THOR Treatment Technologies, LLC • 50/50 jointly owned with Washington Group, WGI • Exclusive rights to Studsvik’s THORSM-process on the American government (DOE) market • TTT is developing according to plan • Profitable and repaying debt to WGI – Positive contribution to Studsvik is still a few yea
Slide 9: Decommissioning
Decommissioning • Increasing sales thanks to positive development in the UK – Major decommissioning order in Sellafield in Q2, valued at SEK 190 during two years • Acquisition of nuclear engineering operations Alpha Engineering with annual sales of GBP 1,5 million • German market still in slow phase
Slide 10: Operating Efficiency
Operating Efficiency • World leader with favorable market outlook • Positive development for software operations • Lower order intake and unplanned maintenance outage in materials operations hit margins during the period Presentation Q2 2007
Slide 11: Service and Maintenance
Service and Maintenance • Market leader in Germany • Lower net sales due to divestment of Stensand • High capacity utilization in first and second quarter due to unplanned outages of German reactors • Acquisition of nuclear consulting operation Dr. Fary Presentation Q2 2007
Slide 12: Sales per Strategic Business Area
Sales per Strategic Business Area 100% 80% 60% Service and Maintenance Operating Efficiency Decommissioning 40% Waste Treatment 20% 0% 2005 2006 H1 2007 Presentation Q2 2007
Slide 13: Net sales per Business Area
Net sales per Business Area SEKm Q2/07 Q2/06 H1/07 H1/06 2006 Waste Treatment 180.8 133.5 311 212 508.7 Decommissioning 60.7 44.7 117.3 92.5 189.0 Operating Efficiency 47.4 42.0 92.5 92.7 167.7 Service and Maintenance 41.7 76.7 66.9 120.9 268.8 Presentation Q2 2007
Slide 14: Operating Profit per Business Area
Operating Profit per Business Area SEKm Q2/07 Q2/06 H1/07 H1/06 2006 Waste Treatment 24.1 17.1 22.1 15.3 33.6 Decommissioning 3.5 6.5 7.4 6.0 11.9 Operating Efficiency 1.4 6.5 3.4 15.6 36.4 Service and Maintenance 4.9 6.3 6.5 3.5 17.3 Presentation Q2 2007
Slide 15: Operating Margin per Business Area
Operating Margin per Business Area % Target Q2/07 Q2/06 H1/07 H1/06 2006 Waste Treatment 20 13.3 12.8 7.1 7.2 6.6 Decommissioning 10 5.8 14.5 6.3 6.5 6.3 Operating Efficiency 15 3.0 15.5 3.7 16.8 21.7 Service and Maintenance 7 11.8 8.2 9.7 2.9 6.4 Presentation Q2 2007
Slide 16: Sales per Region
Sales per Region 100% 80% 60% Asia and Other North America Rest of Europé 40% Sweden 20% 0% 2005 2006 H1 2007 Presentation Q2 2007
Slide 17: Market Outlook
Market Outlook • Modernization programs spanning several years in the US and Sweden • Decommissioning activities are expected to continue to increase in scope in the UK, and somewhat also in Germany • Rising level of available volumes and increasing competition in the US Presentation Q2 2007
Slide 18: Outlook for 2007
Outlook for 2007 The Group is expected to report good organic growth and an improved operating profit in 2007. - Same as in previous quarter Presentation Q2 2007
Slide 19: The Studsvik Share
The Studsvik Share Presentation Q2 2007
Slide 20: Major Shareholders
Major Shareholders Presentation Q2 2007
Slide 21: Summary
Summary Service Waste Treatment Decommissioning Driftoptimering Operating Efficiency and Maintenance Favorable market development – Continued focus on nuclear growth areas – Strengthened positions on selected markets – Acquisitions and organic growth – Further development of service offering Present
Slide 22: Presentation Q2 2007
Presentation Q2 2007