Icon News 9M 2021 financial results

Paris, 3 November 2021 - 5:45pm

SUEZ performance as of September 30, 2021

Improved growth and operating profitability

EBIT target for 2021 adjusted upward

• Revenues of €13,006 million, with organic growth of +9.8% vs. 9M 2020 and +6.3% vs. 9M 2019 o The Recycling & Recovery activity continues to benefit from robust volumes and pricing,
  and continued high prices for recycled raw materials o Strong resilience of the Water activity
  o Environmental Tech & Solutions records solid growth
• Improved operational performance:

1. EBITDA at €2,452 million, with organic growth of +29.0% vs. 9M 2020 and +11.9% vs.

9M 2019

• 1. EBIT at €1,253 million: +€840 million vs. 9M 2020 and +€266 million vs. 9M 2019
• EBIT for the full year 2021 now expected above €1,500 million
• Net debt at €8,761 million, down sharply from September 2020
• The Group's CO2 emission reduction target in line with the 1.5°C trajectory has been validated by the SBTi
• Preparatory works for the creation of the new SUEZ and those related to the Veolia takeover bid are ongoing and continue to aim for completion of the operation around the end of the year

Bertrand Camus, CEO of SUEZ, said:

"As at 30 September 2021, SUEZ's successful transformation is clearly evident in the robust growth and significant strengthening of the Group's operating profitability, both of which are well above our performance during the same period in 2020 and 2019. Our debt is under control thanks to a strong cash generation. These results have given us even more confidence in achieving our 2021 targets.

As the international community meets in Glasgow at COP26 to discuss the fight against global warming, SUEZ is fulfilling its commitments in this area. We are the first company in our sector to have its CO2 emissions reduction target validated by the SBTi (Science Based Targets initiative), a joint program between the CDP, the United Nations Global Compact, the World Resources Institute (WRI) and the WWF (World Wide Fund for Nature).

Once again, I would like to thank the SUEZ teams, who have been particularly busy in recent months. They have demonstrated a remarkable degree of commitment to our customers."

SUEZ	Page 1 of 7
Head office: Tour CB21 − 16, Place de l'Iris, 92040 Paris La Défense Cedex, France − Tel.: [phone] − www.suez.com

Limited company with capital of 2,557,356,896 euros - SIREN (French business administration number): 433 466 570 RCS NANTERRE - VAT No.: FR76433 466 570

KEY FIGURES AS AT 30 SEPTEMBER 2021

The consolidated results as at 30 September 2021 were reviewed by the Audit Committee at its meetings on 25 October and 3 November 2021.

• Performance in Q3 2021

				Gross	Change	Organic	Organic
In million euros	Q3 2019	Q3 2020	Q3 2021	change	excl. FX	change	change
				vs 2020	vs 2020	vs 2020	vs 2019
Revenues	4,471	4,395	4,294	-2.3%	-2.8%	+7.6%	+7.5%
EBITDA	809	795	851	7.2%	+7.1%	+15.2%	+13.1%
EBITDA / Revenue	18.1%	18.1%	19.8%
EBIT	371	336	455	+35.2%	+36.2%	+45.0%	+29.7%
EBIT / Revenue	8.3%	7.7%	10.6%

• Performance for the first 9 months of 2021

				Gross	Change	Organic	Organic
In million euros	9M 2019	9M 2020	9M 2021	change	excl. FX	change	change
				vs 2020	vs 2020	vs 2020	vs 2019
Revenues	13,127	12,562	13,006	+3.5%	+4.0%	+9.8%	+6.3%
EBITDA	2,330	1,991	2,452	+23.2%	+23.4%	+29.0%	+11.9%
EBITDA / Revenue	17.7%	15.8%	18.9%
EBIT	1,016	413	1,253	+203.6%	+202.8%	+203.5%	+26.2%
EBIT / Revenue	7.7%	3.1%	9.5%

With regard to EBITDA and EBIT, it should be noted that in the first half of 2020 the Group recognized -€61

million and -€281 million in costs and provisions, respectively, related to the economic situation, including

the pandemic.

▪ Net debt

In million euros	30 September	30 June	30 September	Gross
change
2020	2021	2021
	vs Sept. 20
Net debt	10,291	8,625	8,761	-14.9%
Net debt / EBITDA	3.6x	2.7x	2.7x	-0.9x

• "New SUEZ" perimeter

The Group is making available to the public selected Financial Indicators relating to the "new SUEZ" perimeter for the first nine months of 2020 and the first nine months of 2021. These elements are available on the Group's website: https://www.suez.com/en/suez-veolia-documents

SUEZ	Page 2 of 7
Head office: Tour CB21 − 16, Place de l'Iris, 92040 Paris La Défense Cedex, France − Tel.: [phone] − www.suez.com

Limited company with capital of 2,557,356,896 euros - SIREN (French business administration number): 433 466 570 RCS NANTERRE - VAT No.: FR76433 466 570

PERFORMANCE BY SEGMENT

WATER

				Gross	Change	Organic	Organic
In million euros	2019	2020	2021	change	excl. FX	change	change
				vs 2020	vs 2020	vs 2020	vs 2019
Revenue - Q3	1,804	1,735	1,733	-0.1%	-0.3%	+1.5%	-0.3%
Revenues - 9M	5,178	4,956	5,017	+1.2%	+1.8%	+3.2%	+0.4%

• In the first nine growth of +3.2%

months of 2021, the WATER segment recorded revenue of €5,017 million, with organic (+€157 million) compared to 30 September 2020.

• • Europe: organic growth was +4.7% (+€126 million) in the first nine months of 2021. Water volumes sold in France were down slightly, at -0.4%, largely due to the impact of unfavorable summer weather conditions. In Spain, they rose by 1.7% compared with the first nine months of 2020, which had been heavily affected by pandemic-related restrictions and weak tourist activity. Tariffs are up +1.4% on average in France and are stable at +0.0% in Spain.
  • Americas: organic growth was +3.4% (+€42 million) in the first nine months of 2021. In the United States, water sales volumes are down -0.8% since the beginning of the year, with third quarter sales impacted by poor weather conditions. In Chile, water sales volumes are up +1.3%, as the first nine months of 2020 were affected by the strict pandemic-related restrictions. Prices, supported by inflation, are also up by +3.8%.
  • Asia-Pacific: organic revenue growth was negative, falling -4.9% (-€16million) in the first nine months of 2021. The third quarter was particularly affected by the impact of phasing in construction activities. In addition, the pandemic-related restrictions in Macau continued to affect tourism activity and consequently water sales volumes.
  • AMECAI: organic revenue growth was +0.7% (+€5 million) in the first nine months of 2021.
• EBIT in the Water segment grew organically compared to the first nine months of 2020 and 2019.

RECYCLING AND RECOVERY

				Gross	Change	Organic	Organic
In million euros	2019	2020	2021	change	excl. FX	change	change
				vs 2020	vs 2020	vs 2020	vs 2019
Revenue - Q3	1,864	1,859	1,733	-6.8%	-7.6%	+15.5%	+15.5%
Revenues - 9M	5,605	5,311	5,646	+6.3%	+5.6%	+18.4%	+12.8%

SUEZ	Page 3 of 7
Head office: Tour CB21 − 16, Place de l'Iris, 92040 Paris La Défense Cedex, France − Tel.: [phone] − www.suez.com

Limited company with capital of 2,557,356,896 euros - SIREN (French business administration number): 433 466 570 RCS NANTERRE - VAT No.: FR76433 466 570

• The RECYCLING AND RECOVERY segment recorded revenue of €5,646 million in the first nine months of 2021, with organic growth of +18.4% (+€976 million) compared to 30 September 2020. The volume of waste processed rose by +3.3%.
• • Europe: organic growth was +20.4% (+€901 million) in the first nine months of 2021. In France and continental Europe, the activity continued to benefit during the third quarter from robust pricing dynamics, a continued increase in waste volumes processed and the persistently high price levels for recycled raw materials. In the UK, optimizing the availability and saturation of processing capacities supported performance, despite operational disruptions caused by the shortage of HGV drivers.
  • Asia-Pacific: revenue grew organically by +8.6% (+€69 million) in the first nine months of 2021, driven by higher waste volumes in the region compared to the first nine months of 2020 and additional volume inputs from the landfill activity in Hong Kong.
  • AMECAI: revenue fell slightly in organic terms by -0.6% (-€0million) in the first nine months of 2021; in the Americas region, organic revenue growth rose by +17.4% (+€6 million).
• EBIT for the Recycling and Recovery segment recorded organic growth in the first nine months of the year compared to 2020 and 2019, benefiting in particular from the robust price dynamics and high prices for recycled raw materials.

ENVIRONMENTAL TECH & SOLUTIONS

				Gross	Change	Organic	Organic
In million euros	2019	2020	2021	change	excl. FX	change	change
				vs 2020	vs 2020	vs 2020	vs 2019
Revenue - Q3	900	878	899	+2.4%	+2.1%	+1.4%	+2.8%
Revenues - 9M	2,608	2,521	2,567	+1.8%	+4.4%	+4.1%	+2.2%

• ENVIRONMENTAL TECH & SOLUTIONS recorded revenue of of the year, representing organic growth of +4.1% (+€102 million)

€2,567 million in the first nine months compared to 30 September 2020.

The Water Technologies & Solutions activity recorded sales of €1,768 million in the nine months to 30 September 2021, with organic growth of +1.0% compared to 30 September 2020, led by the continuing strong performance of the products activity. Smart & Environmental Solutions revenues showed strong organic growth of +18.8% to €367 million compared to 30 September 2020, supported by robust third quarter sales and good performance in the digital, decentralized and asset revenue performance activities in France. Finally, the Hazardous Waste activity has benefited from the recovery in industrial waste volumes, and has recorded organic revenue growth of +6.6% to €431 million as at 30 September 2021.

• Americas: organic revenue growth was negative, falling -1.9% (-€21million) in the first nine months of 2021. Within the WTS activity, the robust performance in products and services, supported by strong sales, did not compensate for weak growth in the Chemical Monitoring & Solutions activity in this region.
• Europe: organic growth rose +7.9% (+€78 million) in the first nine months of 2021. The hazardous waste activity benefited from the increase in waste volumes processed compared to the first nine months of 2020, which were heavily impacted by the pandemic.
• Asia-Pacific: revenue grew organically by +15.3% (+€55 million) in the first nine months of 2021. In China, the volume of waste processed continues to rise sharply, and now exceeds 2019 levels.

SUEZ	Page 4 of 7
Head office: Tour CB21 − 16, Place de l'Iris, 92040 Paris La Défense Cedex, France − Tel.: [phone] − www.suez.com

Limited company with capital of 2,557,356,896 euros - SIREN (French business administration number): 433 466 570 RCS NANTERRE - VAT No.: FR76433 466 570

• • AMECAI: organic revenue growth was negative, falling -9.0% (-€10million) in the first nine months of 2021.
• EBIT for the Environmental Tech & Solutions segment showed organic growth compared to the first nine months of 2020 and 2019. This performance is largely due to the contribution of WTS in the first nine months of 2021, double that of 2019.

GROUP PERFORMANCE

• The change in gross revenue of +3.5% (+€443 million) as of 30 September 2021 compared to the first nine months 2020 breaks down into:
• • Organic change of +9.8% (+€1,236 million).
  • A currency effect of -0.5% (-€58million), resulting from the appreciation of the euro against the US dollar (-€93 million) and the Brazilian real (-€9 million), partially offset by the appreciation of the
    Australian dollar (+€43 million) and the British pound (+€18 million) against the euro.
  • A scope effect of -5.8% (-€735million), including the impact of the disposals of the recycling and recovery activities in Sweden, finalized in November 2020, and of OSIS and the recycling and recovery activities in four continental European countries, finalized on 18 May and 31 May 2021, respectively.
• EBITDA amounted to €2,452 million in the first nine months 2021, with organic growth of +29.0% and +23.4% in constant currencies compared to the first nine months 2020. The impact of exchange rates was unfavorable in the amount of -€4 million. The EBITDA margin, at 18.7% of revenues, recorded an increase of +3.5 points compared to 30 September 2020 and +1.0 point compared to 30 September 2019.
• EBIT was €1,253 million in the first nine months 2021, against €413 million in the first nine months 2020. This amount includes the accounting impact of IFRS 5 (non-amortization of assets held for sale1) of €44 million in the first nine months 2021. Organic growth, which excludes this impact, was +203.5%. The Group recognized €281 million in costs and provisions related to the economic situation, including the pandemic, in the first half of 2020. Exchange rate effects were positive in the amount of +€3 million.
• The improvement in the Group's operating profitability was driven, in particular, by the performance of the WTS activity and by the recycling and recovery activity in Europe. The substantial reduction in general and administrative costs, resulting from measures taken since 2019 as part of the performance plan, is also contributing to the acceleration of organic growth in EBITDA and EBIT.
• Net debt stood at €8,761 million as at 30 September 2021, down by €1,530 million compared to 30
  September 2020. This change includes the impact of the proceeds from disposals (-€1,361 million) and the capital increase relating to the employee shareholding offer (-€160 million), partially offset by the decision to terminate the securitization program (+€291 million) and the payment of the dividend for the 2020 financial year (+€453 million). Cash generation continues to be robust, driven by the strong improvement in the Group's profitability and the excellent handling of working capital requirements.
• The debt ratio was 2.7 times EBITDA over the 12-month rolling period.

1 Recycling and Recovery activities (excluding plastics and hazardous waste recycling) in the Netherlands, Luxembourg, Germany, and Poland, and OSIS - divestments completed in May 2021.

SUEZ	Page 5 of 7
Head office: Tour CB21 − 16, Place de l'Iris, 92040 Paris La Défense Cedex, France − Tel.: [phone] − www.suez.com

Limited company with capital of 2,557,356,896 euros - SIREN (French business administration number): 433 466 570 RCS NANTERRE - VAT No.: FR76433 466 570