Studsvik Ab · OMXSTO:SVIK
Studsvik Ab — Q4 2007 Earnings Presentation
25 slides from Studsvik Ab's earnings presentation, Feb 14, 2008
Slide 1: Q4 and year-end 2007 presentation
Q4 and year-end 2007 presentation February 14, 2008
Slide 2: Highlights 2007
Highlights 2007 • High growth – net sales up by 18 per cent • Sustained strong growth in UK • Operating profit slightly lower than previous year • Well filled order books in most segments at end of 2007 • Expansion in consulting services – two strategic acquisitions • Member in consortia that is pre
Slide 3: Financial Targets and Outcome
Financial Targets and Outcome Target 4Q 2007 2007 Organic growth 5% 26 % 18 % EBIT margin 8% 4.1 % 4.7 % Equity-asset ratio 40 % 42.5 % 42.5 % Dividend (policy/proposed) 30 % of EAT SEK 2.00 /share Presentation Q4/year-end 2007
Slide 4: Key Figures and Ratios
Key Figures and Ratios Q4 -07 Q4 -06 2007 2006 Net sales for the Group, SEKm 370.6 329.1 1,314.7 1,219.6 Operating profit, SEKm 15.3 21.2 62.1 71.3 Profit after net financial items, SEKm 10.0 24.2 46.0 57.1 Earnings per share, SEK 1.58 1.62 5.65 4.24 Operating margin, % 4.1 6.4 4.7 5.8 Equity-assets
Slide 5: Business area development
Business area development SEKm 1400 1200 1000 800 Operating Efficiency Service and Maintenance Decommissioning 600 Waste Treatment 400 200 0 2005 2006 2007 Presentation Q4/year-end 2007
Slide 6: New reporting structure
New reporting structure Five operating segments • Sweden • United Kingdom • Germany • USA • Global Services Business area names remain to describe customer offering • Waste treatment • Decommissioning • Operating Efficiency • Engineering & Services (formerly Service & Maintenance) Presentation Q4/ye
Slide 7: Five new Operating Segments
Five new Operating Segments • Sweden – Waste treatment performed in the facilities in Sweden – Customers in Europe; Sweden, Germany and neighboring countries, UK • United Kingdom – Waste Treatment and Decommissioning in the United Kingdom • Germany – Decommissioning and Engineering & Services in Ger
Slide 8: Segment sales distribution 2006/2007
Segment sales distribution 2006/2007 SEKm 1400 1200 1000 Global Services 800 USA Germany 600 UK Sweden 400 200 0 2006 2007 Presentation Q4/year-end 2007
Slide 9: Sweden
Sweden (Waste treatment in Studsvik facility for European customers) Performance 2007 • Low production at beginning of year and incident in Q3 • Strong order intake • Treatment of large components on commercial terms Focus 2008 • High availability in waste treatment facilities • Launch new product o
Slide 10: United Kingdom
United Kingdom (Decommissioning and Waste treatment) Performance 2007 • Very strong and profitable growth • Acquisition of Alpha Engineering Focus 2008 • Continued growth • Commission metallic waste treatment facility in Workington • UK Low Level Waste Repository – Management contract – Development
Slide 11: Germany
Germany (Decommissioning and Engineering & Services) Performance 2007 • Strengthened market position • High capacity utilization in Engineering & Services • Good order intake for Decommissioning • Acquisition of engineering company Dr Fary Focus 2008 • Growth in higher value added segments of the ma
Slide 12: USA
USA (Waste Treatment including logistics) Performance 2007 • Management replaced in early spring • Good operational and financial performance for Erwin facility • Stable revenues but depressed margins for Memphis operations • Increased costs to meet market challenges • Teaming agreement with Waste C
Slide 13: Global Services
Global Services (In-core fuel management software and materials technology) Performance 2007 • Solid performance and strong market demand for Software business • Poor profitability due to product mix for Materials Technology • Good order intake in both areas Focus 2008 • New product launches for Sof
Slide 14: Net sales per Operating Segment
Net sales per Operating Segment SEKm Q4 -07 Q4 -06 2007 2006 Sweden 43.6 36.0 135.4 126.2 United Kingdom 38.9 13.9 129.1 30.9 Germany 84.6 81.2 341.3 308.7 USA 94.3 106.6 427.7 364.3 Global Services 52.8 43.7 178.8 167.7 Presentation Q4/year-end 2007
Slide 15: Operating Profit per Operating Segment
Operating Profit per Operating Segment SEKm Q4 -07 Q4 -06 2007 2006 Sweden 13.5 12.3 28.2 26.3 United Kingdom 0.9 -2.5 3.0 -11.3 Germany 4.1 4.4 25.3 25.8 USA -4.6 -5.7 6.3 11.4 Global Services 8.8 17.4 14.4 36.4 Presentation Q4/year-end 2007
Slide 16: Operating Margin per Operating Segment
Operating Margin per Operating Segment % Target Q4 -07 Q4 -06 2007 2006 Sweden 20 31.0 34.2 20.8 20.8 United Kingdom 10 2.3 -18.0 2.3 -36.6 Germany 9 4.8 5.4 7.4 8.4 USA 10 -4.9 -5.3 1.5 3.1 Global Services 15 16.7 39.8 8.1 21.7 Presentation Q4/year-end 2007
Slide 17: Market and Trends
Market and Trends • Global nuclear renaissance • Modernization of existing commercial reactors • Decommissioning of older plants • Clean up of legacy from research and weapons programs Presentation Q4/year-end 2007
Slide 18: Nuclear Power Renaissance
Nuclear Power Renaissance • 34 reactors currently under construction world-wide • 150-300 new plants expected by 2030 • Twenty licenses are being awarded in the US • UK parliament opens up for new-build of six reactors – New low level waste policy adopted in 2007 • Swedish modernization program to i
Slide 19: Nuclear industry trends
Nuclear industry trends • Sustainable approach to lifecycle of new plants • Increasingly complex licensing processes including plans for waste and decommissioning • Increasing demand for consulting services • Waste solutions critical to growth • Studsvik obtained the first new nuclear license in the
Slide 20: New financial targets
New financial targets (Three year time horizon) Organic growth > 10 % EBIT margin >8% Debt/equity ratio > 40 % Presentation Q4/year-end 2007
Slide 21: Operational focus in 2008
Operational focus in 2008 UK • Continued rapid and profitable growth • Commissioning of metallic waste treatment facility and management of low level waste repository US • Improved profitability in Memphis and logistics business • Develop attractive solutions for treatment and storage of B&C waste G
Slide 22: Outlook
Outlook Market developments will create an environment favourable to good organic growth in most segments of the business in 2008. Presentation Q4/year-end 2007
Slide 23: The Studsvik Share
The Studsvik Share Presentation Q4/year-end 2007
Slide 24: Major Shareholders
Major Shareholders Number Shares and December 31, 2007 of Shares votes, % Karinen Family 1 589 012 19,3% Briban Invest AB 1 283 492 15,6% Dresdner Bank 714 561 8,7% Goldman Sachs International Ltd 472 750 5,8% Invus Investment AB 184 800 2,2% SEB Sverigefond Småbolag 157 200 1,9% Citibank NA London
Slide 25: Presentation Q4/year-end 2007
Presentation Q4/year-end 2007