A Leading Global Nuclear Services Company

Presentation of financial statement for 2005 on 24 February, 2006

2

Presentation

Magnus Groth, President and CEOPhone: +46 155 22 10 86Cell: +46 (0)709-67 70 86e-mail: magnus.groth@studsvik.se

Jerry Ericsson, Executive Vice President, Deputy Executive Officer and CFOPhone: +46 155 22 10 32Cell: +46 (0)709 67 70 32 e-mail: jerry.ericsson@studsvik.se

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Financial targets

Target Result 2005

EBIT margin 8% 8.3%

Organic growth (*Discontinuing operations excluded)

5% 6.1%*

Equity-asset ratio 40% 47.9%

Dividend policy 30% of EAT SEK 2.00 PS (EPS 7.48)

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A strong year after restructuring

• Strong earnings development after restructuring

• Materials testing reactors terminated after 45 years

– Reduction by approx. 90 employees

• Acquired engineering company in UK, acquired health physics business

in Sweden

• Break-through order for TTT in USA

• Staff reduction in German operations, by approx. 100 employees

• Treatment of a 310-tonne steam generator from Ringhals initiated

• SEK 2,00 dividend per share

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2005 in figures

4Q-05 4Q-04 2005 2004

Net sales for the Group, SEKm 297.7 255.6 1,116.5 1,095.8Operating profit 15.1 -165.0 92.4 -119.7Net profit for the period -5.7 -97.3 61.1 -66.5

Earnings after tax per share, SEK -0.69 -11.84 7.48 -8.19

EBIT margin, % 8.3 Neg

Equity-asset ratio, % 47.9 38.5

Equity per share, SEK 68.90 54.60 68.90 54.60

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Services to the nuclear power industry

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Operating Efficiency and Safety

• The world leader in test and analysis of nuclear fuel and materials

• Software for optimizing operations and consultancy services• A leading position in a global market

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Operating Efficiency and Safety 2005

• Strong demand for industrial software– Strong new business– Growing maintenance consulting income

• Favourable development of order intake and earnings in materials testing

• Reactor operations terminated as planned• Strategic partnership with Norwegian IFE develops

well, with satisfied customers

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Outlook, Operating Efficiency and Safety

Outlook• Materials testing

– Growth market, a few years ahead

– Strong offering in materials testing through partnership with IFE/Halden

• Industrial software– Large market share – Leading edge products

Challenges• Position operations in

Materials testing as a solution provider

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Service and Maintenance

• Decontamination, chemical cleaning, mechanical services and process cleaning

• Health physics and dosimetry services• Leading position in Sweden and Germany

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Service and Maintenance 2005

• More outage hours than in 2004• Organizational adjustments in Swedish operations had a

positive impact on profitability• Decision on organizational adjustments in Germany

– Reduction by 85 employees– Costs already accounted for– Positive impact on profitability from 2006

• Acquired ISS health physics business– Gains a business network in UK and Canada

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Outlook , Service and Maintenance

Outlook• Customers plan for fewer

outage hours in 2006• Business opportunities a few

years ahead through extensive Swedish investment programs– Life extension programs– Increased effect programs

Challenges• Ability to handle short

outages and seasonal variations

• Improved margins – Higher technical content– Improved resource

utilization

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Waste Treatment

• Treats low- and intermediate-level waste

• Facilities in Studsvik and Erwin, USA

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Waste Treatment 2005

• Increased demand for waste treatment

• Technology development concerning large components– Development project; Ringhals Steam generator treatment

– Temporarily lower margins 2005

• Stable volume – temporarily lower margins in USA

• TTT contracted to build waste treatment facility at the Idaho National Laboratory – presented to client in 2007

• Sale of 30% ownership in WTI

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Outlook, Waste Treatment

Outlook• Growing waste volumes

– Life extension program – Increased effect program– Decommissioning of older

facilities• Large volumes of metallic

waste may be forthcoming on the UK market

Challenges• Production capacity in facilities• Improved margins in USA• THOR:s waste treatment

technology – Commercial NPP:s– Older waste from research

and weapons manufacture

• Establish UK facility

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Decommissioning

Full service decommissioning service based on more than 20 years of experience

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Decommissioning 2005

• Siemens project ended• German decommissioning market in temporary phase of lower

activity– Organization reduced by 15 employees

• Three NPP:s awaiting decommissioning permit• UK market established through NDA• Acquisition and integration of Environmental Remediation

Services Ltd according to plan– Important platform in UK– Rapid organic growth

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Outlook, Decommissioning

Outlook• Firm sales in 2006• NDA accelerates UK nuclear

decommissioning– Procurements in 2006

• Germany– A large number of smaller

commissions– Larger procurements towards

the end of 2006• Growing market in the midterm

view

Challenges• Readiness for future large

German procurements• Strengthened position in UK

– Build organization– Work up market– Win procurements– Supplementary acquisitions

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Net Sales per Business Area

Operating Efficiency and Safety 54.6 52.7 192.1

208.1

Service and Maintenance 66.7 54.6 279.7

237.7

Waste Treatment 96.7 75.2 333.7

302.8

Decommissioning 57.0 62.4 242.4

298.1

Discontinuing Operations -0.4 19.9 28.2

70.4

SEKm 4Q-05 4Q-04 20052004

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Operating Profit per Business Area

Operating Efficiency and Safety 10.8 -85.0 28.6

-80.8

Service and Maintenance 3.1 -4.1 11.9

6.8

Waste Treatment 10.2 10.7 39.8

49.7

Decommissioning 5.4 1.1 23.3

37.7

Discontinuing Operations -0.4 -84.9 13.6

-95.4

SEKm 4Q-05 4Q-04 20052004

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Market and trends

• Growing market for nuclear-powered electricity – Extended lifetime and increased effect programs– Decommissioning of older facilities

• Strong increase in demand for waste treatment• Growing service market in a few years time• Increased demand for specialist materials know-how• ”Cleaning up” after 50 years of research and weapons

manufacture– USA, UK– Long lead times

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The Studsvik share

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Outlook 2006

General market conditions for the Group’s business areas are favorable. The nuclear industry as a whole is growing, with the strongest short term growth in waste treatment. All in all, the assessment is that the Group’s earnings before tax for 2006 will be in line with 2005.

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Focus 2006

• UK– Expand operations– Win contracts

• Germany– Organizational resource utilization on the 2005 level– Positioning for future procurements

• USA– Improved margins– Participate in the next federal procurement cycle

• Europe– Develop the “large components” concept – Increased capacity in the Swedish facility

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A Leading Global Nuclear Services Company

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Group Income Statement

SEKm 4Q-05 4Q-04 2005 2004Net sales for the Group 297.7 255.6 1,116.5 1,095.8

Cost of services sold -216.9 -344.5 -814.9 -985.5Gross Profit 80.8 -88.9 301.6 110.3Selling expenses -13.9 -15.1 -42.2 -41.5Administrative expenses -38.0 -49.9 -148.7 -157.1Research and development costs -13.3 -11.5 -35.5 -35.5Other operating income 1.8 -0.2 19.8 1.7Other operating expenses -2.3 0.0 -2.6 -0.1Result from participating in associated companies – 0.6 – 2.5Operating profit 15.1 -165.0 92.4 -119.7Interest income and similar profit/loss items 2.3 2.6 8.5 7.6Interest expense and similar profit/loss items -5.3 -7.0 -11.1 -15.5Resultat efter finansiella poster 12.1 -169.4 89.8 -127.6Tax -17.8 72.1 -28.7 61.1Net profit for the period -5.7 -97.3 61.1 -66.5

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Group Balance Sheet

SEKm 20052004

AssetsGoodwill 127.4 120.8Other intangible fixed assets 5.0 7.4Tangible fixed assets 372.0 331.9Financial fixed assets 99.0 81.5Inventories etc 10.4 10.4

Accounts receivable - trade 167.3 139.9

Other current receivables 78.8 141.0Current investments 54.8 –Cash and bank 268.6 319.2Total assets 1,183.3 1,152.1

Equity and liabilitiesEquity 566.6 443.4Provisions, long-term 165.8 151.1Long-term liabilities 199.2 186.3Provisions, short-term 24.1 100.7Short-term liabilities 227.6 270.6Total equity and liabilities 1,183.3 1,152.1

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Group Cash Flow Statement

SEKm 20052004Operating activities

Operating profit 92.4 -119.7

Depreciation 47.1 78.3

Other non-cash items -6.5 146.4

Financial items, net -4.8 -8.0

Income tax paid -28.2 -12.5

Changes in working capital -82.0 19.9

Cash flow from operating activities 18.0 104.4

Investing activities

Investments -45.0 - 52.4

Other changes from investing activities 27.6 2.6

Cash flow from investing activities -17.4 - 49.8

Financing activities

Change, borrowings -11.3 -34.2

New share issue 6.2 0.2

Capital gains on conversion of forward contracts -5.1 -34.0

Change in liquid assets -4.5 20.6

Liquid assets at the beginning of the year 319.2 299.9

Translation difference, liquid assets 8.7 -1.3

Liquid assets at the end of the period 323.4 319.2

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Key Figures and Ratios

SEKm 4Q-05 4Q-04 2005 2004

Net sales for the Group, SEKm 297.7 255.6 1,116.5 1,095.8

Operating profit, SEKm 15.1 -165.0 92.4 -119.7

Profit after net financial items, SEKm 12.1 -169.4 89.8 -127.6

Earnings per share before dilution, SEK -0.69 -11.84 7.48 -8.19

Earnings per share after dilution, SEK -0.69 -11.84 7.48 -8.09

Operating margin, % 8.3 Neg.

Equity-assets ratio, % 47.9 38.5

Equity per share, SEK 68.90 54.60 68.90 54.60

Average number of employees 1,278 1,353

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Shares and30 December, 2005 No. Shares votes, %Briban Invest AB 1 860 492 22.6%Familjen Karinen 1 778 012 21.6%Goldman Sachs International Ltd 315 750 3.8%SEB Sverige Småbolag 283 200 3.4%Handelsbankens Småbolagsfond 269 200 3.3%Blue Whale Ltd 256 246 3.1%Nordea Bank Finland ABP 242 000 2.9%Lannebo Småbolag Select 197 400 2.4%Invus Investment AB 184 800 2.2%3C Alpha 182 000 2.2%Total, ten largest shareholders 5 569 100 67.8%Other shareholders 2 649 511 32.2%Total 8 218 611 100.0%

Major Shareholders

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Organization

Operating Efficiency and

Safety

Studsvik Nuclear AB

Studsvik Scandpower Group

Service and Maintenance

Studsvik Stensand AB

SINA Industrie-service GmbH & Co

IFM Industrie-anlagen GmbH & Co

Studsvik UK Ltd

Waste Treatment

Studsvik Nuclear AB

Studsvik Processing Facility, LLC

THOR Treatment Technologies, LLC

Studsvik UK Ltd

Decom-missioning

SINA Industrie-service GmbH & Co

IFM Industrie-anlagen GmbH & Co

Studsvik UK Ltd

Studsvik AB

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Legal structure

Dormant companies

100%

Studsvik AB (publ)

Studsvik

Studsvik UK

Nuclear Services Ltd

power AB 91 % GmbH

AB SVAFONuclear AB Stensand AB

power, Inc. 79 % GmbH

Studsvik Studsvik

Studsvik ProcessingFacility LLC 90 %

Studsvik Scand- Studsvik Rosyth

Studsvik SINA IndustrieserviceScandpower AS GmbH & Co. KG

Studsvik Scand- SINA Verwaltungs

StudsvikHolding, Inc.

Studsvik, Inc. Studsvik Scand-

StudsvikJapan Ltd

power GmbH

Studsvik Scand-power Suisse GmbH

THOR TreatmentTechnologies LLC 50 %

StudsvikDevelopment, Inc.

GmbH & Co. KG

100%

100%

IFM VerwaltungsGmbH

IFM HoldingGmbH & Co. KG

IFM Industrieanlagen

1%99%

Studsvik BNCT ABStudsvik Eco & Safety AB

Studsvik Instrument Systems AB

Studsvik Partner ABStudsvik RadWaste AB