Q4 and year-end 2007 presentation February 14, 2008

Transcription

1 Q4 and year-end 2007 presentation February 14, 2008

2 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 preferred bidder to manage the UK low level waste repository Licenses obtained for facility for treatment of metallic waste in UK Agreement with WCS for storage of nuclear waste strengthens Studsvik s market position in the USA Software delivered to Mitsubishi Heavy Industries for licensing of new advanced reactor design

3 Financial Targets and Outcome Target 4Q 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

4 Key Figures and Ratios Q4-07 Q Net sales for the Group, SEKm , ,219.6 Operating profit, SEKm Profit after net financial items, SEKm Earnings per share, SEK Operating margin, % Equity-assets ratio, % Equity per share, SEK Average number of Employees 1,141 1,279

5 Business area development SEKm Operating Efficiency Service and Maintenance Decommissioning Waste Treatment

6 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)

7 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 Germany and neighboring countries USA Waste Treatment business carried out at the Group s facilities in the USA Customers in the USA and Canada Global Services Operating Efficiency; materials technology and fuel optimization software Global customer base, business in many countries

8 Segment sales distribution 2006/2007 SEKm Global Services USA Germany UK Sweden

9 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 offerings including high force compaction, cable shredding and incineration of niche waste streams

10 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 of national low level waste strategy

11 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 market

12 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 Control Specialists (WCS) Focus 2008 Launch attractive customer solutions to counter-act the closing of Barnwell B/C waste repository Improve profitability for Memphis operations

13 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 Software Business Improved product mix for Materials including post-irradiation examinations in co-operation with IFE in Halden, Norway

14 Net sales per Operating Segment SEKm Q4-07 Q Sweden United Kingdom Germany USA Global Services

15 Operating Profit per Operating Segment SEKm Q4-07 Q Sweden United Kingdom Germany USA Global Services

16 Operating Margin per Operating Segment % Target Q4-07 Q Sweden United Kingdom Germany USA Global Services

17 Market and Trends Global nuclear renaissance Modernization of existing commercial reactors Decommissioning of older plants Clean up of legacy from research and weapons programs

18 Nuclear Power Renaissance 34 reactors currently under construction world-wide 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 increase output by 18 % by 2012

19 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 UK for 20 years

20 New financial targets (Three year time horizon) Organic growth > 10 % EBIT margin > 8 % Debt/equity ratio > 40 %

21 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 General Focus on order intake Minimize down-time in facilities

22 Outlook Market developments will create an environment favourable to good organic growth in most segments of the business in 2008.

23 The Studsvik Share

24 Major Shareholders Number Shares and December 31, 2007 of Shares votes, % Karinen Family ,3% Briban Invest AB ,6% Dresdner Bank ,7% Goldman Sachs International Ltd ,8% Invus Investment AB ,2% SEB Sverigefond Småbolag ,9% Citibank NA London ,9% Morgan Stanley & Co Inc ,8% SEB Sverige Småbolag Chans/Risk ,8% The Northern Trust Co ,6% Total, 10 largest shareholders ,7% Other Shareholders ,3% Total ,0%

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