Annual Report 2006 Report Annual Studsvik
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Studsvik Annual Report 2006 Annual Report 2006 Studsvik AB (publ) P.O. Box 556 SE-611 10 Nyköping Sweden www.studsvik.se Visiting address: Västra Trädgårdsgatan 38 Calendar Addresses General Meeting of Shareholders, Studsvik AB Studsvik, Inc./Studsvik “With this year’s extensive initiatives, we have created Visiting address: Processing Facility, LLC April 19, 2007 Västra Trädgårdsgatan 38 100 Nolichucky Avenue The General Meeting will be held at 4 p.m. on Thursday, P.O. Box 556 Erwin, TN 37650 an organization with strong resources and the capacity April 19, 2007 at The World Trade Center, Klarabergs- SE-611 10 Nyköping USA Sweden Tel +1 423 735 6300 viadukten 70/Kungsbron 1, Stockholm, Sweden. Tel +46 155 22 10 00 Fax +1 423 735 4143 to grow, plus an entirely different international presence Notification Fax +46 155 26 30 00 [email protected] Studsvik Nuclear AB Shareholders wishing to participate must be registered in VPC www.studsvik.com SE-611 82 Nyköping AB’s share register, by no later than April 13, 2007, and must Sweden than just a year ago. We have enhanced our offering, submit a notification of their intention to attend by no later than Studsvik Industrieservice Tel +46 155 22 10 00 April 13: GmbH & Co. KG/ Fax +46 155 26 30 70 • By telephone on +46 155 22 10 33, Studsvik Industrieanlagen GmbH & Co. KG Studsvik Scandpower, Inc. our organizational resources and delivery capacity.” • By mail to Studsvik AB, P.O. Box 556, SE-611 10 Nyköping, Sweden, Karlsruher Str 20 1087 Beacon Street, Suite 301 • By e-mail to [email protected], D-75179 Pforzheim Newton, MA 02459-1700 • By fax on +46 155 26 30 00 or Magnus Groth, President and Chief Executive Officer Germany USA • From Studsvik’s Website, www.studsvik.se. Tel +49 7231 5 86 95 01 Tel +1 617 965 7450 Fax +49 7231 5 86 95 02 Fax +1 617 965 7549 Shareholder’s notification should state: • Name Studsvik UK Ltd Studsvik Japan Ltd • Personal/corporate identity number Unit 14, Princes Park Nakamura Bldg. 3F • Address and telephone number Fourth Avenue 2-7-14 Shibuya, Shibuya-ku • Number of shares. Team Valley Trading Estate Tokyo 150-0002 Gateshead Japan For entitlement to vote at the General Meeting of Shareholders, Tyne & Wear NEII ONF Tel +81 3 5464 3771 shareholders with nominee-registered holdings must apply to United Kingdom Fax +81 3 5464 3708 the bank or stockbroker managing their shares for temporary Tel +44 191 482 1744 re-registration a couple of banking days before April 13, 2007. Fax +44 191 482 1747 Studsvik’s Nomination Committee Studsvik RACE/Studsvik Studsvik’s Nomination Committee consists of: Logistics, LLC 2550 Channel Avenue Björn C. Andersson P.O. Box 13143 Anna Karinen Memphis, TN 38113 Per Wahlström USA The task of the Nomination Committee is to submit proposals to Tel +1 901 775 0690 the General Meeting of Shareholders regarding Board members, Fax +1 901 775 0629 auditors, alternate auditors and their fees. Forthcoming Financial Information Publication Dates Studsvik AB (publ) Annual Report 2006. Corporate identity no. 556501-0997 Interim Report, first quarter, as of March 31 April 19, 2007 Interim Report, first six months, as of June 30 August 21, 2007 This report is a translation of the Swedish statutory report. In the event of any discrepancies between this document and the Swedish original, the latter Interim Report, first three quarters, shall govern. The content of this annual report may not, in whole or part, be as of September 30 October 23, 2007 reproduced or stored in a machine-readable medium without the previous Financial Statement 2007 February 2008 permission of Studsvik AB (publ) ©Studsvik AB (publ) Annual Report, 2007 March 2008 The reports will be available at www.studsvik.se on the publica- Production: Taurus Kommunikation AB Waste Treatment Decommissioning tion dates. The Annual Report and six-month Interim Report will Translation: Turner & Turner, Erica Stempa be sent directly to shareholders. Graphic design: Taurus Kommunikation AB / M Durkin, W Wilhelmsson Photo: Mattias Bardå, Janne Höglund and others Printing: Österbergs & Sörmlandstryck AB 2007. Contents Overview....................................................................2 Consolidated.Balance.Sheet...................................48 CEO’s.Comments........................................................4 Consolidated.Cash.Flow.Statement........................50 Business.Concept,.Objectives.and.Strategies...........6 Parent.Company.Income.Statement......................51 Business.Overview.....................................................8 Parent.Company.Balance.Sheet..............................52 Market.....................................................................14 Parent.Company.Cash.Flow.Statement..................54 l.Waste.Treatment.SBA..........................................18 Accounting.Policies.and.Valuation.Principles ......55 l Decommissioning.SBA..........................................22 Notes.to.the.Consolidated.Accounts......................62 l.Operating.Efficiency.SBA.....................................26 Notes.to.the.Parent.Company.Accounts ..............72 l.Service.and.Maintenance.SBA.............................30 Audit.Report............................................................75 Environment.and.Safety.........................................32. Five-year.Review......................................................76 Human.Resources....................................................34 Corporate.Governance............................................79 The.Studsvik.Share..................................................36. Board.of.Directors.and.Auditors............................82 Risk.Factors..............................................................38 Senior.Executive.Management...............................83 Administration.Report............................................42 Definition.of.Key.Figures.and.Ratios.....................84 Consolidated.Income.Statement............................47 Operating Efficiency Service and Maintenance STUD S VIK AB (PU B L) ANNU A L REPO R T 2 0 0 6 Overview Studsvik in two Minutes Studsvik is a leading service supplier to the international nuclear industry. The company has sixty years’ experience of nuclear technology and radiological services. Studsvik addresses a market in strong growth with specialized services in four Strategic Business Areas (SBAs): Waste Treatment, Decommissioning, Operating Efficiency and Service and Maintenance. Studsvik has 1,200 employ- ees in 7 countries and the company’s shares are listed on the Nordic Stock Exchange Stockholm, MidCap. STRATEGIC BU S INE S S A REA S Waste treatment Decommissioning Net.sales.. .508.7.SEK.m 45% Net16%.sales. 15% .18924%.SEK.m45% 16% 15% 24% Operating.profit. 33.6.SEK.m Operating.profit 11.9.SEK.m Average.number.of.employees 294 Average.number.of.employees 321 l. Processing.of.radioactive.waste l. Decommissioning.services l. On-site.waste.services l. On-site.waste.services l. Transport.logistics. l. Health.physics.services l. Waste.management.consulting.services l. Health.physics.services Operating efficiency Service and Maintenance Net.sales. 45%.167.7.SEK.m16% 15% Net24%.sales45%. 16%.268.8.SEK.m15% 24% Operating.profit 36.4.SEK.m Operating.profit 17.3.SEK.m Average.number.of.employees 114 Average.number.of.employees 473 l Fuel.and.materials.performance l. Operational.and.outage.support l. Materials.integrity.and.water.chemistry l. Health.physics.services l. Nuclear.fuel.analysis.software l. On-site.waste.services l. Transport.logistics. STUD S VIK AB (PU B L) ANNU A L REPO R T 2 0 0 6 Overview 2006 in Brief reserved. rights All td. l Group uclear n British © Copyright l. Studsvik.acquired.US. l. Order.and.Letter.of. l. Contract.signed.for.the. radioactive.waste.treatment. Intent.signed.for.treating.12. first.large-scale.UK.decom- company.RACE. steam.generators. missioning.assignment. l Extension.of.Swedish.facility.for.treating.metallic.waste.started. l Contract.signed.for.the.installation.of.GARDEL.software.in.11.Japanese.reactors. l. Subsidiary.Studsvik.Stensand.AB.divested.on.January.1,.2007. l The.Group.is.expected.to.report.good.organic.growth.and.an.improved.operating.profit.in. 2007. l. The.Board.proposes.a.dividend.of.SEK.2.00.per.share. K E Y F IGURE S A N D R AT I OS 2006 2005 2004 Consolidated net sales, SEK m 1,219.6 1,088.3 1,025.4 Operating profit, SEK m 71.3 78.8 –24.3 Profit after net financial items, SEK m 57.1 76.2 –31.8 Earnings per share before dilution, SEK 4.24 5.81 2.99 Earnings per share after dilution, SEK 4.24 5.81 2.95 Operating margin, % 5.8 7.2 neg Equity-assets ratio, % 41.2 47.9 38.5 Equity per share, SEK 67.97 68.90 54.60 Average number of employees 1,279 1,278 1,353 1 Comparative figures for 2005 and 2004 refer to continuing operations. STUD S VIK AB (PU B L) ANNU A L REPO R T 2 0 0 6 CEO’s.Comments A Year of Major Forward-looking Initiatives Studsvik carried out a number of strong, large-scale initiatives in 2006 to create the right prospects for future growth and profitability. The result is a Studsvik that is well equipped to meet growing demand from the global nuclear power industry. tudsvik’s sales increased by 12 per cent in 2006. With this year’s extensive initiatives, we have cre- SOur operating profit of SEK 71 million is the ated an organization with strong resources and the second best in Studsvik’s history. Yet it implies an capacity to grow, plus an entirely different interna- operating margin of 5.8 per cent, which means that tional presence than just a