SHAPING SUEZ 2030:
POSITIONED FOR THE GREEN RECOVERY
H1 2020 results
July 29th, 2020
1
SHAPING A SUSTAINABLE ENVIRONMENT, NOW
- Looking forward
- Performance plan
- H1 results
- Key messages
Bertrand CAMUS
Chief Executive Officer
Our Purpose: Shaping a sustainable environment, now
Illustrated by our H1 achievements
STRONG ENGAGEMENT OF OUR TEAMS
- Employees safety as first concern
- Fully mobilised to provide essential services
CONTINUITY OF ESSENTIAL SERVICES
- Roll out seamless business continuity
- Ensure full reliability to accompany all our clients
PRESERVATION OF THE ENVIRONMENT
AS A PRIORITY
"Every single day, SUEZ commits to preserving the fundamental
elements of our environment - water, soil, and air - that ensure our future"
29-Jul-20 | SUEZ 1H20 Results | 3 | |
A reinforced sustainability strategy
Long standing climate commitments translated into industrial levers
Reduce by 45% the direct and indirect greenhouse gas emissions from our activities by 20301
Green Landfill in Meknes, Morocco
Help our customers avoid 20 million tonnes of C02e emissions a year by 2030
Offer 100% sustainable solutions for our customers on climate and/or biodiversity
Plastic recycling in Ban Phli, Thailand | Biofactory in Santiago de Chile |
1 vs. 2014
4
One step further in natural capital preservation
Accelerating the implementation of biodiversity solutions
REUSE AND RECHARGE WATER | SUSTAINABLE AGRICULTURE | ||
− | West Basin, USA | − | Nantes Metropole Sludge management |
REHABILITATION OF SOIL FUNCTIONS | ENVIRONMENTAL MONITORING | ||
− | Belgrade, waste management and resource recovery | − | Management environnemental A9 Highway |
construction, Vinci |
NATURE BASED SOLUTIONS AND RENATURATION
- Flood park, Alicante, Spain
MICRO-POLLUTANTS TREATMENTS
- Sophia Antipolis Wastewater treatment, France
Examples details in appendices 7 page 53
29-Jul-20 | SUEZ 1H20 Results | 5 |
DRIVING SELECTIVITY IN OUR GROWTH
Commercial dynamic and investments
Modernize and improve water services for the capital city of Uzbekistan
Tashkent
Serving 3.5 million inhabitants
Fast demographic growth and strong economic development
Implementation of latest solutions for smart water management
Transfer of know how to Tashkent Shahar
SuvTaminoti
€142m revenue; 7 years duration
29-Jul-20 | SUEZ 1H20 Results | 7 | |
Management of the entire sewage infrastructure
Doha North
Serving 1.1 million inhabitants
Fast urbanization and demographic growth
Automation, smart tools to reduce energy and chemical consumption
Fully integrated wastewater management
incl. reuse and storm water
€80m revenue per year; 5 years contract
10 year framework agreement
29-Jul-20 | SUEZ 1H20 Results | 8 | |
Driving selectivity in our investments
Wave one progress unables us to look ahead
NEAR TERMS OPPORTUNITIES :
Reinforce our presence in China
Finalize hazardous waste acquisition in Middle East
Expand global water treatment offering
Plastic recycling in Europe
More selective, higher-return growth
29-Jul-20 | SUEZ 1H20 Results | 9 | |
UPDATE ON PERFORMANCE PLAN
Jean-Marc BOURSIER
Chief Operating Officer
Performance plan to raise our game and generate long-lasting savings
We are on track to deliver as planned
Industrial processes
35-40%Procurement
35-40%
G&A 20-25%
54 workstreams launched Leveraging Group-wide scale
360° LEVERS
BEST PRACTICE SHARING
VOLUME POOLING & CONVERGENCE
CROSS-REGIONS LEVERS
Improving SUEZ environmental footprint
€1bn annual savings1 by 2023, 45/50% impact expected by 2021
1 Total 2020-2023 net annual benefits 2020-23 before D&A (excl. incremental investments). Pro forma figures based on 2019 cost base (excl. scope variation)
29-Jul-20 | SUEZ 1H20 Results | 11 | |
Industrial processes - 350 to 400m€ annual savings by 2023
Benchmark of best practices
CASE STUDY
BEST PRACTICES (SELECTED) EXPECTED IMPACT | Estimated annual | ||||
OPEX savings | |||||
WASTE MECHANICAL SORTING
MUNICIPAL WATER ENERGY & CHEMICALS
- Sorting facility 2.0 in Northern Europe
- Advanced near-infra red sorters in France & Australia
- Dosing control & piloting tools for Drinking Water treatment plants
- From WTS : Aeration control module for Waste Water treatment plants
- -300 CO2 T/year, +1% flows recovered, -4% downtime
- +50% hourly capacity, separation of plastic flows
- -10% to -15% on coagulants & flocculants consumption
- -7%to -20% on aeration costs on equipped sites
- ~ -10% on energy costs
€24m1+
€8.5m1
1 Total 2020-2023 net annual benefits 2020-23 before D&A (excl. incremental investments). Pro forma figures based on 2019 cost base (excl. scope variation)
29-Jul-20 | SUEZ 1H20 Results | 12 | |
Procurement - 350 to 400m€ annual savings by 2023
Capturing the potential from stringent demand management and global size
INITIATIVES (selected case studies) | TANGIBLE RESULTS | |
COLLECTION TRUCKS & | REVISED RENEWAL PLAN | |
EQUIPMENT | AND MAINTENANCE PLAN | |
• Right size the truck fleet | ✓ ~30% reduction on renewal plan | |
• Review renewal plans | ✓ Revised trucks specifications | |
• Review financing models | ✓ Leaner maintenance supplier panel | |
OFF-ROAD EQUIPMENT | REVISED RENEWAL | |
• Standardize specifications | AND MAINTENANCE PLAN | |
• Challenge supplier panel | ✓ Global fleet sizing approach | |
• Outsource fleet management | ✓ New challengers invited to tender | |
in relevant geographies | ✓ Optimized maintenance contracts |
Estimated annual OPEX savings
€25m1+
€4m1
1 Total 2020-2023 net annual benefits 2020-23 before D&A (excl. incremental investments). Pro forma figures based on 2019 cost base (excl. scope variation)
29-Jul-20 | SUEZ 1H20 Results | 13 | |
FOCUS ON FINANCIALS
Julian WALDRON
Chief Financial Officer
1H Highlights
Performance in line with previous communications
R&R prices holding up | General conditions in Chile | |
I x ss €100 | s s | Volatile commodity prices |
through mitigation
FX in Australia and Chile
Resilient cash position: decrease in Capex and sound Working Capital management
Resilient revenue, down -4.5% organically to €8,167m
29-Jul-20 | SUEZ 1H20 Results | 15 | |
Water
Revenue down (3.2)% organically
R | , € | |||||||||||||||||||
(4.5)% gross | ||||||||||||||||||||
(3.2)% organic | ||||||||||||||||||||
(3.1)% excl. FX | ||||||||||||||||||||
3,374 | ||||||||||||||||||||
3,221 | ||||||||||||||||||||
(45) | (100) | +12 | +20 | (40) | ||||||||||||||||
Scope | Volumes(1) | Tariffs(2) | Net Cial. | Works | ||||||||||||||||
& FX | Activity(3) | and | ||||||||||||||||||
others | ||||||||||||||||||||
H1 2019 | H1 2020 |
Volumes
- Negative impact in Asia and Europe of confinement and lower tourism
- Voluntary restrictions on water consumption in Chile
- Resilience in North America
- Most construction projects slowed down
Tariffs
-
Largely as expected (+1.7% in France,
(1.3)% in Spain, +2.5% in Chili and +2.0% in USA) - Deferral of increases in some territories during confinement
Commercial
- Start of Toulouse contract in France in January 2020
- High renewal rate in Spain and US
29-Jul-20 | SUEZ 1H20 Results | (1) | At iso contracts (2) escalation formula | 16 | |
(3) | Net balance between contracts gained / renewed / lost & amended |
Recycling & Recovery
Revenue down (6.6)% on an organic basis, impacted by Covid-19 context
R | , € | (7.7)% gross | ||||||||||||||||||
(6.6)% organic | ||||||||||||||||||||
(7.1)% excl. FX | ||||||||||||||||||||
3,741 | ||||||||||||||||||||
3,451 | ||||||||||||||||||||
(42) | +77 | (242) | (53) | (29) | ||||||||||||||||
Scope | Prices | Volumes | Commodity | Construction | ||||||||||||||||
& FX | & mix | prices | ||||||||||||||||||
H1 2019 | H1 2020 |
Volumes
- Confinement impact strongest in France, Belgium and UK
- Germany and the Netherlands resisted well
Pricing and commodities
- Pricing in line with expectations
- Negative commodities: paper, plastics, electricity
- Small positive impact from diesel
Commercial
- First time contribution from Manchester and Somerset
29-Jul-20 | SUEZ 1H20 Results | 17 | |
Environmental Tech & Solutions
Revenue down (3.3)% on an organic basis
R | , € | (3.8)% gross |
(3.3)% organic | ||
(3.4)% excl. FX |
1,708 | 1,642 | |||||||||||||
(9) | (45) | +7 | (19) | |||||||||||
Scope | Hazardous | Water | SES(1) | |||||||||||
& FX | Waste | Technologies | ||||||||||||
& Solutions | ||||||||||||||
H1 2019 | H1 2020 |
29-Jul-20 | SUEZ 1H20 Results (1) Smart & Environmental Solutions | |
Hazardous Waste
- Early impact in China
- Confinement hit construction and soil remediation volumes in Europe
- Sharp recovery in France in May and June
Water Technologies & Solutions
- Resilient revenue: +1% organic
- CMS and Product sales evolved well
- Slower Project revenue and order intake
Smart & Environmental Solutions
- Onsite activities stopped during confinement
- Remote and digital services continued with minimal change
18
Drop in volumes materialising into substantial EBIT impact
EBIT
in €m
645 | FX & Scope | Water | R&R (1) | ETS (2) | Other (3) | ||
(35) | (300) | (133) | (90) | (11) | |||
(176) | 76 | |||||||||
(42) | ||||||||||
(37) | (27) | |||||||||
H1 2019 | H1 2020 | |||||||||
xx €(281)m est. one-off costs | Underlying EBIT €354m |
Strong reactivity of all our teams to reduce discretionary costs and SG&A drove
in excess of €100m savings
(1) Recycling & Recovery | (2) Environmental Tech & Solutions | ||
29-Jul-20 | SUEZ 1H20 Results (3) mainly HQ | 19 | |
Focus on below EBIT
H1 2020
Comments | H2 trends | ||
Exceptionals€(271)m
Financial expense | €(218)m |
- Shaping SUEZ 2030 actions
- Positive impact of 2019 liability management
- Shaping SUEZ 2030 actions around €150m
- Reinforcement of liquidity position generating additional financial costs
- Otherwise similar
Tax | €(45)m |
Minorities€(34)m
29-Jul-20 SUEZ 1H20 Results
− Includes €(37)m deferred tax | − Underlying H2 2019 applicable |
write-off | to H2 2020 outlook |
− Covid-19 context strongly impacting | − Underlying H2 2019 applicable |
Lydec and Aguas Andinas | to H2 2020 outlook |
20
Net debt evolution
Tight control of working capital requirement and capex
10,749
10,151
(754) | +4 | +88 | +152 | +626 | +412 | +70 | |||||||||||||
+309 | +317 | ||||||||||||||||||
Maintenance Development | |||||||||||||||||||
Capex | Capex | ||||||||||||||||||
Net Debt | Gross | Change in | Tax | Financial | Capex | Dividends | Other | Net Debt | |||||||||||
Dec. 31st, 2019 | Cash Flow | WCR | expenses | expenses | Jun 30th, 2020 | ||||||||||||||
10,327 | (1,464)1 | +396 | +109 | +199 | +752 | +625 | (330)2 | 10,614 | |||||||||||
+340 | +412 | ||||||||||||||||||
Maintenance Development | |||||||||||||||||||
Capex Capex | |||||||||||||||||||
Dec. 31st 2018 | Jun. 30th 2019 | ||||||||||||||||||
29-Jul-20 | SUEZ 1H20 Results | (1) Includes €(223)m from Argentine settlement | (2) Includes €(510)m disposal of 20% stake in SUEZ Water Inc., +€136m leases, +€81m financial capex | 21 | |||||||||||||||
Outlook: H2 2020
Improved performance in the second half
H2 revenue to be down organically -4% to -2% vs. last year
EBIT estimated around €600m to €650m in H2
We will also have the impacts of the wave one disposals
Our main assumptions in the above outlook include constant FX, a difficult summer for tourism, no return to a generalized, region-wide confinement situation in the second half and in general a continuation of the trends in our major businesses in May and June.
29-Jul-20 | SUEZ 1H20 Results | 22 | |
BEING THE GLOBAL LEADER IN ENVIRONMENTAL SERVICES BY 2030
Bertrand CAMUS
Chief Executive Officer
We support a green, digital and sustainable recovery
Working in close collaboration with governments and authorities for a green recovery plan
- Citizen convention in France
- Green Deal in Europe
Emphasize the urgency to invest in environmental services, water and waste
Highlight the benefits of investing in our sectors
- Creation of many jobs that can not be delocalized
- Essential activities
- Technological innovation
29-Jul-20 | SUEZ 1H20 Results | 24 | |
SUEZ contribute to a green, digital and sustainable recovery
Business opportunities in rebound
International
Industry
Technology, smart & new businesses
Health & Quality of Life | Positive Climate Impact | Positive Impact | Waste No More | Local Anchoring | ||||
on Natural Capital | ||||||||
Affordable Decentralised | ||||||||
& Compact Plants | ||||||||
Emerging Pollutants | ||||||||
& Pathogens | Biofactories | Circular Materials | ||||||
Next-gen Chemicals | Positive Impact Models & Tools | |||||||
Air Quality | Broker Models | |||||||
Green Energy | Robotics & Augmented Operators | |||||||
Hazardous Waste | Sustainable Agriculture | |||||||
Smart Waste | Digitalisation & Automation | |||||||
GHG & Carbon Tracking / | ||||||||
Capture | ||||||||
Sustainable, Smart & | Customer experience | |||||||
Healthy Cities | Waste-flow Traceability | & E-commerce | ||||||
29-Jul-20 | SUEZ 1H20 Results | 25 | |
APPENDICES
Content
1. | Key figures | 28 |
2. | P&L | 30 |
3. | Cash Flow Statement | 40 |
4. | Balance sheet | 42 |
5. | Activity of divisions | 46 |
6. 2019 and Q1 2020 under the new
segment structure | 51 |
29-Jul-20 | SUEZ 1H20 Results | 27 | |
1.
Key figures
29-Jul-20 | SUEZ 1H20 Results | 28 |
Key financials H1 2020
I | € | H1 2019 | H1 2020 | Gross | Organic | Excl. FX | |||
Revenue | 8,656 | 8,167 | (5.7)% | (4.5)% | (4.7)% | ||||
EBITDA | 1,521 | 1,196 | (21.3)% | (18.3)% | (18.8)% | ||||
% Revenue | 17.6% | 14.7% | |||||||
EBIT | 645 | 76 | (88.2)% | (82.8)% | (83.7)% | ||||
% Revenue | 7.4% | 0.9% | |||||||
Net income (group share) | 212 | (538) | (354.0)% | ||||||
Gross cash flow | 1,464 | 754 | (48.5)% | ||||||
Capex | (752) | (626) | (16.8)% | ||||||
Change in WCR | (396) | (4) | (99.0)% | ||||||
Net debt | 10,614 | 10,749 | +1.3% | ||||||
Net debt / EBITDA | 3.4x | 3.7x | +0.3x | ||||||
29-Jul-20 | SUEZ 1H20 Results | 29 | |||||||
2.
P&L
29-Jul-20 | SUEZ 1H20 Results | 30 |
Revenue
Revenue
€
(4.5)% organic | |||||||||||||||||
8,656 | 8,167 | ||||||||||||||||
(82) | (14) | (108) | (247) | (56) | +19 | ||||||||||||
FX | Scope | Water | R&R (1) | ETS (2) | Intercompany | ||||||||||||
transactions | |||||||||||||||||
H1 2019 | H1 2020 |
29-Jul-20 | SUEZ 1H20 Results | (1) | Recycling & Recovery | 31 | |
(2) | Environmental Tech & Solutions |
Revenue by division
H1 2019 | H1 2020 | in % | Variation | ||||||
In €m | of total | gross | organic | FX | Scope | ||||
WATER | 3,374 | 3,221 | 39.4% | (4.5)% | (3.2)% | (1.4)% | +0.1% | ||
Europe | 1,818 | 1,754 | 21.5% | (3.5)% | (3.5)% | (0.1)% | +0.0% | ||
AMECA | 398 | 404 | 4.9% | +1.4% | +0.6% | +0.7% | - | ||
Asia Pacific | 263 | 239 | 2.9% | (9.0)% | (7.6)% | (1.1)% | (0.2)% | ||
Americas | 895 | 824 | 10.1% | (7.9)% | (3.0)% | (5.3)% | +0.4% | ||
RECYCLING & RECOVERY | 3,741 | 3,451 | 42.3% | (7.7)% | (6.6)% | (0.7)% | (0.4)% | ||
Europe | 3,139 | 2,857 | 35.0% | (9.0)% | (8.1)% | (0.3)% | (0.5)% | ||
AMECA | 53 | 40 | 0.5% | (25.8)% | (26.8)% | +0.9% | - | ||
Asia Pacific | 532 | 532 | 6.5% | (0.1)% | +2.8% | (2.9)% | - | ||
Americas | 16 | 24 | 0.3% | +44.2% | +44.4% | (0.2)% | - | ||
ENVIRONMENTAL TECH & SOLUTIONS | 1,708 | 1,642 | 20.1% | (3.8)% | (3.3)% | (0.5)% | (0.1)% | ||
Europe | 720 | 641 | 7.9% | (10.9)% | (9.8)% | (0.7)% | (0.5)% | ||
AMECA | 75 | 76 | 0.9% | +1.1% | +1.0% | +0.2% | +0.0% | ||
Asia Pacific | 254 | 231 | 2.8% | (9.3)% | (8.8)% | (0.9)% | +0.4% | ||
Americas | 658 | 694 | 8.5% | +5.4% | +5.5% | (0.2)% | +0.2% | ||
Intercos | (167) | (148) | (1.8)% | (11.2)% | (11.2)% | (0.0)% | - | ||
TOTAL | 8,656 | 8,167 | 100.0% | (5.7)% | (4.5)% | (0.9)% | (0.2)% | ||
29-Jul-20 | SUEZ 1H20 Results | 32 | |||||||
Revenue by division for Q1 and Q2 2020
Q1 2019 | Q1 2020 | Variation | |||
In €m | gross | organic | FX & Scope | ||
WATER | 1,623 | 1,609 | (0.8)% | +0.4% | (1.3)% |
Europe | 866 | 855 | (1.3)% | (1.3)% | +0.0% |
AMECA | 194 | 206 | +5.9% | +4.2% | +1.7% |
Asia Pacific | 118 | 121 | +2.1% | +2.8% | (0.7)% |
Americas | 445 | 428 | (3.7)% | +1.5% | (5.2)% |
R&R | 1,863 | 1,838 | (1.3)% | (0.5)% | (0.8)% |
Europe | 1,551 | 1,536 | (1.0)% | (0.5)% | (0.5)% |
AMECA | 27 | 24 | (11.5)% | (12.8)% | +1.3% |
Asia Pacific | 276 | 268 | (3.1)% | (0.1)% | (3.0)% |
Americas | 8 | 11 | +41.3% | +39.9% | +1.5% |
ETS | 799 | 827 | +3.4% | +3.1% | +0.4% |
Europe | 347 | 339 | (2.4)% | (2.6)% | +0.1% |
AMECA | 33 | 39 | +18.0% | +17.0% | +1.0% |
Asia Pacific | 106 | 109 | +2.0% | +0.9% | +1.1% |
Americas | 313 | 340 | +9.0% | +8.6% | +0.3% |
Intercos | (75) | (76) | (1.8)% | (1.8)% | (0.0)% |
TOTAL | 4,210 | 4,198 | (0.3)% | +0.5% | (0.8)% |
Q2 2019 | Q2 2020 | Variation | ||
gross | organic | FX & Scope | ||
1,751 | 1,612 | (8.0)% | (6.6)% | (1.4)% |
952 | 899 | (5.6)% | (5.5)% | (0.1)% |
204 | 198 | (3.0)% | (2.8)% | (0.2)% |
145 | 119 | (18.0)% | (16.2)% | (1.9)% |
450 | 396 | (12.1)% | (7.5)% | (4.6)% |
1,878 | 1,613 | (14.1)% | (12.7)% | (1.4)% |
1,587 | 1,321 | (16.8)% | (15.5)% | (1.2)% |
26 | 15 | (41.0)% | (41.4)% | +0.4% |
256 | 264 | +3.2% | +5.9% | (2.8)% |
9 | 13 | +46.7% | +48.2% | (1.5)% |
909 | 815 | (10.3)% | (8.9)% | (1.4)% |
373 | 302 | (18.8)% | (16.6)% | (2.3)% |
43 | 37 | (11.9)% | (11.4)% | (0.5)% |
148 | 122 | (17.5)% | (15.8)% | (1.7)% |
346 | 354 | +2.3% | +2.6% | (0.3)% |
(92) | (72) | +21.7% | +21.7% | +0.0% |
4,446 | 3,968 | (10.7)% | (9.3)% | (1.4)% |
29-Jul-20 | SUEZ 1H20 Results | 33 | |
Income from associates by division
In €m | H1 2019 | H1 2020 | Variation |
Water | 84 | 53 | (36.5)% |
o/w Acea (23.33% stak e) | 30 | 31 | +2.6% |
Recycling & Recovery | 7 | (2) | (128.5)% |
Environmental Tech & Solutions | 4 | 4 | 12.3% |
TOTAL | 94 | 55 | (41.5)% |
29-Jul-20 | SUEZ 1H20 Results | 34 | |
Revenue, EBITDA and EBIT by division
H1 2019 | H1 2020 |
In €m |
Total revenue | 8,656 | 8,167 | |
Water | 3,374 | 3,221 | |
Recycling & Recovery | 3,741 | 3,451 | |
Environmental Tech & Solutions | 1,708 | 1,642 | |
Intercompany transactions | (167) | (148) | |
Total EBITDA | 1,521 | 1,196 | |||
Water | 853 | 682 | |||
Recycling & Recovery | 521 | 425 | |||
Environmental Tech & Solutions | 186 | 139 | |||
Others | (39) | (50) |
Total EBIT | 645 | 76 | ||||
Water | 432 | 108 | ||||
Recycling & Recovery | 210 | 70 | ||||
Environmental Tech & Solutions | 81 | (13) | ||||
Others | (78) | (88) | ||||
29-Jul-20 | SUEZ 1H20 Results | |||||
Variation | |||
gross | organic | FX | scope |
(5.7)% | (4.5)% | (0.9)% | (0.2)% |
(4.5)% | (3.2)% | (1.4)% | 0.1% |
(7.7)% | (6.6)% | (0.7)% | (0.4)% |
(3.8)% | (3.3)% | (0.5)% | (0.1)% |
(21.3)% | (18.3)% | (2.5)% | (0.5)% |
(20.1)% | (16.4)% | (3.9)% | 0.1% |
(18.4)% | (16.3)% | (0.7)% | (1.4)% |
(25.1)% | (23.6)% | (0.8)% | (0.7)% |
(88.2)% | (82.8)% | (4.5)% | (0.9)% |
(75.0)% | (69.5)% | (5.7)% | 0.2% |
(66.5)% | (63.2)% | (0.9)% | (2.4)% |
(116.6)% | (111.4)% | (2.9)% | (2.3)% |
35
FX impact on Revenue, EBITDA, EBIT and Net Debt
1 EUR =USD GBP AUD CLP
H1 2020 average rate | 1.10 | 0.87 | 1.68 | 896 | ||||||
H1 2019 average rate | 1.13 | 0.87 | 1.60 | 763 | ||||||
Closing rate at 30/06/2020 | 1.12 | 0.91 | 1.63 | 924 | ||||||
Closing rate at 30/06/2019 | 1.14 | 0.90 | 1.62 | 770 | ||||||
FX | o/w an impact from: | |||||||||
€m | H1 2020 | |||||||||
impact | USD | GBP | AUD | CLP | ||||||
Revenue | 8,167 | (82) | +25 | (0) | (23) | (58) | ||||
EBITDA | 1,196 | (38) | +4 | (0) | (5) | (35) | ||||
EBIT | 76 | (29) | +1 | (0) | (3) | (25) | ||||
Net Debt | 10,749 | (61) | +11 | (15) | (2) | (65) | ||||
29-Jul-20 | SUEZ 1H20 Results | 36 | ||||||||
From EBITDA to EBIT by division
H1 2020 in €m | Water | R&R | ETS | Other | H1 2020 | |
EBITDA | 682 | 425 | 139 | (50) | 1,196 | |
Depreciation | (329) | (288) | (119) | (24) | (761) | |
Net provisions & impairments | (144) | (23) | (33) | (14) | (215) | |
Net concession renewal expenses | (101) | (43) | - | - | (144) | |
Employees compensation plans in shares | (1) | - | - | - | (0) | (0) |
EBIT | 108 | 70 | (13) | (88) | 76 |
H1 2019, in €m | Water | R&R | ETS | Other | H1 2019 | |
EBITDA | 853 | 521 | 186 | (39) | 1,521 | |
Depreciation | (324) | (292) | (114) | (24) | (754) | |
Net provisions & impairments | (3) | 17 | 9 | (13) | 10 | |
Net concession renewal expenses | (94) | (37) | - | - | (131) | |
Employees compensation plans in shares | (1) | - | - | - | (1) | (1) |
EBIT | 432 | 210 | 81 | (78) | 645 |
29-Jul-20 | SUEZ 1H20 Results | 37 | |
From EBIT to Net Income
In €m | H1 2019 | H1 2020 | Variation |
EBIT | 645 | 76 | (88.2)% |
Restructuring costs | (53) | (55) | +3.4% |
Impairments (incl. goodwill amortization) | (24) | (200) | +742.9% |
Capital gains and change in scope | 6 | (17) | (363.7)% |
Argentine settlement | 215 | n.a. | n.a. |
IFRIC 21 impact and others (MtM) | (45) | (46) | +2.3% |
Income from operating activities | 744 | (242) | (132.5)% |
Financial result | (245) | (218) | (10.9)% |
Income tax | (157) | (45) | (71)% |
Net Income | 342 | (504) | (247.4)% |
Non-controlling interests | (130) | (34) | (73.7)% |
Net Income (Group Share) | 212 | (538) | (354.0)% |
29-Jul-20 | SUEZ 1H20 Results | 38 | |
Earnings per share
In €m | H1 2019 | H1 2020 |
Net Income Group Share | 212 | (538) |
In Millions | ||
Weighted average number of outstanding shares | 618 | 627 |
Earnings per share (in euros) | ||
Earnings per share | 0.31 | (0.89) |
Total number of shares at end of June | 621,362,759 | 628,362,579 |
o/w treasury shares | 3,267,425 | 187,161 |
29-Jul-20 | SUEZ 1H20 Results | 39 | |
3.
Cash Flow Statement
29-Jul-20 | SUEZ 1H20 Results | 40 |
Investments by nature and division
in €m | Maintenance | Development | Financial | Disposal | Total Net | |||
capex | capex | investments | Investments | |||||
Water | (125) | (216) | (6) | 2 | (345) | |||
Recycling & Recovery | (120) | (66) | (7) | 16 | (178) | |||
Environmental Tech & Solutions | (55) | (35) | 4 | 1 | (85) | |||
Other | (9) | - | (0) | 0 | (9) | |||
TOTAL H1 2020 | (309) | (317) | (10) | 19 | (617) | |||
in €m | Maintenance | Development | Financial | Disposal | Total Net | |||
capex | capex | investments | Investments | |||||
Water | (163) | (272) | 5 | 536 | 106 | |||
Recycling & Recovery | (107) | (102) | (10) | 21 | (198) | |||
Environmental Tech & Solutions | (55) | (38) | (56) | 0 | (149) | |||
Other | (14) | - | (4) | 0 | (18) | |||
TOTAL H1 2019 | (340) | (412) | (64) | 558 | (259) | |||
29-Jul-20 | SUEZ 1H20 Results | (1) Includes €(510)m disposal of 20% stake in SUEZ Water Inc. | 41 | |||||
4.
Balance sheet
29-Jul-20 | SUEZ 1H20 Results | 42 |
Financial debt and liquidity position
Liquidity position
6,171
Undrawn credit lines(1) 2,163
4,008
Cash(2)
1H 2020
Gross debt(3) maturity profile | ||||||||||||
In €m | ||||||||||||
IFRS 16 | ||||||||||||
481(4) | Financial gross debt | |||||||||||
261 | 3,553 | |||||||||||
216 | 182 | 2,419 | 1,116 | |||||||||
136 | ||||||||||||
146 | 1,089 | 785 | 908 | 607 | 84 | 1,201 | 861 | 803 | 908 | |||
144 | ||||||||||||
2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | 2030 | >2030 |
(1) Ex | g €1,272 | p p |
- Cash net of mark-to-market derivatives
- Gross debt net of bank overdraft and commercial paper
- From 2025
29-Jul-20 | SUEZ 1H20 Results | 43 | |
Financial Debt
Net debt by currency(1) | Net debt by rate type |
GBP 5%
HKD 1%
CLP 11%
USD 21%
Gross debt by type(1)
Others 3% | 3% | 11% | |
11% | |||
13% | Floating | ||
14% | |||
Inflation linked | |||
EUR | 72% | 83% | Fixed - IFRS 16 |
59% | Fixed | ||
FY 2019 | H1 2020 | ||
-5% |
Bond 74%
Commercial Paper 9% Other 3%
Bank 14%
Gross debt by average maturity, in years(1)
6.5 | 7.1 |
FY 2019 | H1 2020 |
29-Jul-20 | SUEZ 1H20 Results | (1) Excluding IFRS 16 | 44 | |
Capital Employed
as of June 30th
In €m | FY 2019 | H1 2020 |
Net goodwill | 5,322 | 5,284 |
Tangible and intangible assets, net | 13,727 | 13,182 |
Net financial assets | 254 | 245 |
Investment in associates | 2,024 | 2,006 |
Provisions | (1,478) | (1,490) |
Rights of use | 1,406 | 1,385 |
Others | (889) | (782) |
CAPITAL EMPLOYED | 20,366 | 19,830 |
In €m | FY 2019 | H1 2020 |
Water | 11,074 | 10,881 |
Recycling & Recovery | 5,264 | 4,732 |
Environmental Tech & Solutions | 3,869 | 4,052 |
Others | 159 | 164 |
CAPITAL EMPLOYED | 20,366 | 19,830 |
29-Jul-20 | SUEZ 1H20 Results | 45 | |
5.
Activity of divisions
29-Jul-20 | SUEZ 1H20 Results | 46 |
EBIT per division
Water
(75.0)% gross | |||||||||||||||||||
EBIT, | € | ||||||||||||||||||
(69.5)% organic | |||||||||||||||||||
(69.3)% excl. FX | |||||||||||||||||||
432 | |||||||||||||||||||
108 | |||||||||||||||||||
(24) | (53) | +9 | (95) | ||||||||||||||||
Scope | Volumes | Tariffs | Net Cial. | (160) | |||||||||||||||
& FX | Activity(3) | ||||||||||||||||||
H1 2019 | Works & | H1 2020 | |||||||||||||||||
others | |||||||||||||||||||
ETS | |||||||||||||||||||
(116.6)% gross | |||||||||||||||||||
EBIT, | € | ||||||||||||||||||
(111.4)% organic | |||||||||||||||||||
(113.7)% excl. FX | |||||||||||||||||||
81 | (13) | ||||||||||||||||||
(4) | (53) | (37) | |||||||||||||||||
H1 2019 | H1 2020 | ||||||||||||||||||
Scope | Underlying | One-off | |||||||||||||||||
& FX | elements | ||||||||||||||||||
29-Jul-20 | SUEZ 1H20 Results | ||||||||||||||||||
Recycling & Recovery
(66.5)% gross
EBIT, € | (63.2)% organic |
(65.6)% excl. FX
210
70 | ||||||||||||||||||||||
(7) | +9 | (95) | (13) | (21) | (13) | |||||||||||||||||
Scope | Prices | Volumes & | Commodity | Construction | Other | |||||||||||||||||
H1 2019 | & FX | mix | prices | H1 2020 | ||||||||||||||||||
47
Non financial KPIs
WATER
Mm 3 sold | H1 2020 | ∆ 20/19 | ||
France | 290 | (2.4)% | ||
Spain | 298 | (5.2% | ||
Chile | 296 | (5.5)% | ||
China | 377 | (6.4)% | ||
North America | 125 | +3.0% | ||
Morocco | 79 | +3.5% | ||
W | DB | k g - € | 1.1 | (3.6)% |
RECYCLING & RECOVERY
Mt | H1 2020 | ∆ 20/19 | |||||
Elimination | 6.8 | (9.8)% | |||||
Recovery | 9.9 | (2.0)% | |||||
Energy from Waste | 4.4 | (1.2)% | |||||
Sorting & Recycling | 5.5 | (2.7)% | |||||
Total processed volumes | 16.7 | (5.4)% | |||||
29-Jul-20 | SUEZ 1H20 Results | ||||||
ENVIRONMENTAL TECH & SOLUTIONS
Water Technologies & Solutions
in €m | H1 2020 | ∆ 20/19 |
Engineered Systems (ES) | 714 | (17.4)% |
Chemical & Monitoring Solutions (CMS) | 485 | +3.8% |
Total orders | 1,199 | (9.9)% |
Hazardous Waste
mt | H1 2020 | ∆ 20/19 |
Elimination | 540 | (2.0)% |
Recovery | 698 | (13.3)% |
Total Hazardous Waste | 1,238 | (8.7)% |
48
Recycling & Recovery
Commodity prices evolution
BDSV Sorte 1 (ferrous metal, recycled) - in €/ton | 1.05 (corrugated board) - in €/ton | ||||
100 | |||||
270 | 261 | ||||
78 | 78 | ||||
240 | |||||
202 | 216 | 64 | 78 | ||
68 | |||||
206 | 63 | 50 | |||
170 | |||||
20 | |||||
Brent - in €/baril |
68 | 71 | 65 | ||||
60 | 59 | |||||
56 | ||||||
Average H1 2020 | 53 | 47 | 55 | 37 | ||
Average H1 2019 |
21
29-Jul-20 | SUEZ 1H20 Results | 49 | |
Recycling & Recovery
Commodity prices evolution
PET (Virgin material) - in €/ton | PEBD - in €/ton | |||||||||
1375 | 1325 | |||||||||
1,500 | 1,480 | |||||||||
1134 | 1086 | 1,400 | 1,375 | |||||||
1110 | ||||||||||
1030 | 940 | |||||||||
840 | ||||||||||
1,190 | ||||||||||
1,285 | ||||||||||
830 | 695 | 1,255 | ||||||||
695 | 1,125 | |||||||||
Electricity - in €/Mwh - CAL 20 | ||||||||||
51 | 52 | 52 | 51 | |||||||
50 | ||||||||||
49 | 49 | |||||||||
47 | 49 | |||||||||
47 | ||||||||||
48 | 47 | |||||||||
Average H1 2020 | ||||||||||
47 | 45 | |||||||||
46 | ||||||||||
43 | ||||||||||
45 | ||||||||||
Average H1 2019 | ||||||||||
42 | ||||||||||
40 | 38 | |||||||||
36 | ||||||||||
36 | 35 | |||||||||
CAL 21 FR | ||||||||||
CAL 21 DE | ||||||||||
CAL 21 NL |
29-Jul-20 | SUEZ 1H20 Results | 50 | |
6.
2019 and Q1 2020 under new segment structure
29-Jul-20 | SUEZ 1H20 Results | 51 |
2019 under the new segment structure
Revenue, in €m | Q1 2019 | H1 2019 | 9M 2019 | FY 2019 |
WATER | 1,623 | 3,374 | 5,178 | 7,151 |
Europe | 866 | 1,818 | 2,791 | 3,849 |
AMECA | 194 | 398 | 618 | 890 |
Asia Pacific | 118 | 263 | 400 | 576 |
Americas | 445 | 895 | 1,370 | 1,835 |
RECYCLING & RECOVERY | 1,863 | 3,741 | 5,605 | 7,566 |
Europe | 1,551 | 3,139 | 4,700 | 6,343 |
AMECA | 27 | 53 | 73 | 97 |
Asia Pacific | 276 | 532 | 806 | 1,083 |
Americas | 8 | 16 | 26 | 43 |
ENVIRONMENTAL TECH & SOLUTIONS | 799 | 1,708 | 2,608 | 3,693 |
Europe | 347 | 720 | 1,085 | 1,508 |
AMECA | 33 | 75 | 106 | 147 |
Asia Pacific | 106 | 254 | 378 | 546 |
Americas | 313 | 658 | 1,039 | 1,493 |
Intercompany transactions | (75) | (167) | (265) | (395) |
TOTAL REVENUE | 4,210 | |||
8,656 | 13,127 | 18,015 |
29-Jul-20 | SUEZ 1H20 Results | 52 | |
2019 under the new segment structure
In €m | Q1 2019 | H1 2019 | 9M 2019 | FY 2019 | |
REVENUE | 4,210 | 8,656 | 13,127 | 18,015 | |
Water | 1,623 | 3,374 | 5,178 | 7,151 | |
Recycling & Recovery | 1,863 | 3,741 | 5,605 | 7,566 | |
Environmental Tech & Solutions | 799 | 1,708 | 2,608 | 3,693 | |
Intercompany transactions | (75) | (167) | (265) | (395) | |
EBITDA | 709 | 1,521 | 2,330 | 3,220 | |
Water | 853 | 1,788 | |||
Recycling & Recovery | 521 | 1,067 | |||
Environmental Tech & Solutions | 186 | 435 | |||
Other | (39) | (70) | |||
EBIT | 293 | 645 | 1,016 | 1,408 | |
Water | 432 | 923 | |||
Recycling & Recovery | 210 | 411 | |||
Environmental Tech & Solutions | 81 | 217 | |||
Other | (78) | (143) |
29-Jul-20 | SUEZ 1H20 Results | 53 | |
Q1 2020 Revenue bridges
Water
R | , € | (0.8)% gross |
+0.4% organic | ||
+0.5% excl. FX |
1,623 | 1,609 | ||||||||||||||||||||||
(20) | (32) | +5 | +26 | +8 | |||||||||||||||||||
Scope | Volumes | Tariffs | Net Cial. | Works & | |||||||||||||||||||
& FX | Activity(3) | others | |||||||||||||||||||||
Q1 2019 | Q1 2020 | ||||||||||||||||||||||
ETS | |||||||||||||||||||||||
+3.4% gross | |||||||||||||||||||||||
Revenue, | € | ||||||||||||||||||||||
+3.1% organic | |||||||||||||||||||||||
+3.1% excl. FX | 827 | ||||||||||||||||||||||
799 | |||||||||||||||||||||||
+3 | +27 | (14) | +11 | ||||||||||||||||||||
Scope | WTS | Haz. Waste | SES | ||||||||||||||||||||
& FX | |||||||||||||||||||||||
Q1 2019 | Q1 2020 | ||||||||||||||||||||||
29-Jul-20 | SUEZ 1H20 Results | ||||||||||||||||||||||
Recycling & Recovery
(1.3)% gross
R | , € | (0.5)% organic |
(0.9)% excl. FX |
1,863 | 1,838 | |||||||||||||||||
(16) | +53 | (32) | (42) | +12 | ||||||||||||||
Scope | Prices | Volumes & | Commodity | Construction | ||||||||||||||
& FX | mix | prices | ||||||||||||||||
Q1 2019 | Q1 2020 |
54
Disclaimer
This presentation contains estimates and/or forward-looking statements and information. These statements include financial projections, synergies, estimates and their underlying assumptions, statements regarding plans, expectations and objectives with respect to future operations, products and services, and statements regarding future performance.
s sss s g g UEZ's s sp, trends or targets, as the case may be. No guarantee can be given as to the achievement of such forward-looking statements and information.
Investors and holders of SUEZ securities are cautioned that forward-looking information and statements are subject
to various risks and uncertainties, which are difficult to predict and generally beyond the control of SUEZ, and that such risks and uncertainties may entail results and developments that differ materially from those stated or implied in forward-looking information and statements. These risks and uncertainties include, but are not limited to, those discussed or identified in the public documents filed with the Autorité des Marchés Financiers (AMF). Investors and holders of SUEZ securities should consider that the occurrence of some or all of these risks may have a material adverse effect on SUEZ. SUEZ is under no obligation and does not undertake to provide updates of these forward- looking statements and information to reflect events that occur or circumstances that arise after the date of this document.
More comprehensive information about SUEZ may be obtained on its website (www.suez.com).
This document does not constitute an offer to sell, or a solicitation of an offer to buy SUEZ securities in any jurisdiction.
29-Jul-20 | SUEZ 1H20 Results | 55 | |
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Suez SA published this content on 28 July 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 29 July 2020 16:25:09 UTC