2015 FULL-YEAR RESULTS FEBRUARY 24 th , 2016 DISCLAIMER This - PowerPoint PPT Presentation

2015 FULL-YEAR RESULTS FEBRUARY 24 th , 2016

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. Such statements do not constitute forecasts regarding SUEZ ENVIRONNEMENT COMPANY’s results or any other performance indicator, but rather 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 ENVIRONNEMENT COMPANY 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 ENVIRONNEMENT COMPANY, 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 ENVIRONNEMENT COMPANY securities should consider that the occurrence of some or all of these risks may have a material adverse effect on SUEZ ENVIRONNEMENT COMPANY. SUEZ ENVIRONNEMENT COMPANY 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 ENVIRONNEMENT COMPANY may be obtained on its website (www.suez- environnement.com). This document does not constitute an offer to sell, or a solicitation of an offer to buy SUEZ ENVIRONNEMENT COMPANY securities in any jurisdiction. 2015 Full-Year Results 2 I February 24th, 2016

AGENDA Jean Louis CHAUSSADE, CEO  2015 HIGHLIGHTS: OUTSTANDING PERFORMANCE THANKS TO FULL COMMITMENT ON EXECUTION  SPEEDING UP STRATEGY DEPLOYMENT TO NAVIGATE CURRENT ENVIRONMENT  IMMEDIATE PRIORITIES TO OFFSET SHORT TERM UNCERTAINTIES  2016 OUTLOOK Christophe CROS, CFO  2015 TARGETS ACHIEVED IN A CONTRASTED CONTEXT  MAINTAINED FINANCIAL FLEXIBILITY 2015 Full-Year Results 3 I February 24th, 2016

FY 2015 HIGHLIGHTS: OUTSTANDING PERFORMANCE THANKS TO FULL COMMITMENT ON EXECUTION Jean-Louis CHAUSSADE Chief Executive Officer 2015 Full-Year Results 4 I February 24th, 2016

2015 KEY HIGHLIGHTS Outstanding performance thanks to full commitment on execution  Accelerating Group integration through one single brand  Strategic move in China to enlarge footprint Main achievements  Opportunistic minority buy-out in Australia  Full year revenue growth lifted by stronger H2 performance Revenue: +5.7%  Organic growth of +2.7%  EBITDA: +4.1%, organic growth: +0.3% EBIT: +10.1%  EBIT up +4.5% organic, margin improved by 40bps (1)  Strong operational performance Net Income GS: € 408m  CWG reevaluation through Derun set-up: + € 131m  Implementation of further self-help measures  Solid cash generation in H2 FCF: + € 1,047m  Efficient working capital management  Net debt: € 8,083m ND / EBITDA: 2,9x  Negative FX effect (+ € 326m) 2015 Full-Year Results 5 I (1) Excludes capital gains from CEM disposal in 2014 ( € 129m) and Chongqing Water Group revaluation in 2015 ( € 131m) February 24th, 2016

MANY COMMERCIAL SUCCESSES Securing long-term growth EUROPE  Gennevilliers: € 639m, 12y and € 234m, 15y  Czech Republic (Brno), wastewater treatment: € 147m, 10y INDUSTRIAL CLIENTS  Martinique, water and wastewater: € 346m, 12y  Italy (Cuma), DB + O&M: € 71m  SANOFI Water and waste  AZUR (Argenteuil), EfW: € 227m, 7y  Czech Republic (Prague), wastewater treatment: € 57m, 3y integrated services global  Caen, EfW: € 120m, 15y  Germany (Heilbronn): € 43m, 8y agreement  Alençon, water and wastewater: € 68m, 12y  Croatia (Porec), wastewater: € 38m  SAFRAN Water and waste  Dole, water and wastewater: € 67m, 12y  Spain (Trujilo): € 16m, 15y management agreement in  Guingamp, water and wastewater: € 30m, 8y  Solvay France  Carhaix, EfW: € 25m, 10y  Lamballe, EfW: € 25m, 8y  Covaldem 11, Collection and treatment: € 459m, 19y NORTH AMERICA ASIA  Rate cases: Toms River: +c.9%  Changshu industrial park, wastewater treatment: € 354m, 30y - Pennsylvania: +c.19% - Idaho: +c.8%  Beijing Drainage Group, wastewater treatment: € 140m  Shatin (Hong Kong), waste management: € 54m, 10y  Japan (MODEC, industrial client): € 23m CENTRAL AND SOUTH AMERICA  Brazil (Companhia sidergugica Nacional), industrial client: € 20m AUSTRALIA  Santo Domingo (Punta Catalina),  Northern Adelaide Collection: € 42m, water treatment plant: $8,3m 8y  Peru (Tanacocha), wastewater  Itochu (Kooragang Industrial Water treatment: $7,2m Scheme): industrial client AFRICA MIDDLE EAST & INDIA  Burkina Faso (Ziga II), D&B water  Oman (Al Amerat), waste treatment: € 32m, 5y treatment: € 16m, 3y  Oman (Barka), preferred bidder: € 550m, 20y  Kenya (Kigoro), DBO water treatment:  Egypt (Gabal el Asfar), wastewater treatment: € 15m, 2y € 84m, 4y  Mali (Kabala), water treatment: € 17m  Abu Dhabi (Masdar), inauguration of an energy-  Ivory Coast, Nigeria, Benin: € 8m efficient desalination pilot plant  India (Bangalore and Rajasthan), water and wastewater treatment: € 67m 2015 Full-Year Results 6 I February 24th, 2016

A VOLATILE GLOBAL ENVIRONMENT … Significant evolutions vs one year ago assumptions SHARP SLOWDOWN LOW EXCEPTIONAL DECREASE IN IN GLOBAL EUROPEAN WEATHER COMMODITY GROWTH INFLATION CONDITIONS PRICES Large Scrap metal -21% Drag on escalation +1.1% water volumes discrepancies formula (~0%) in France & flat PET -11% in Europe in Spain vs. -1%/-1,5% Fuel -11% Chinese structural trend soft-landing Electricity -13% (1) Emerging markets crises More intense competition But increased environmental awareness strengthens the long-term growth drivers of our business 2015 Full-Year Results 7 I (1) German baseload - Forward 1 year February 24th, 2016

… AND A FRENCH CONTEXT STILL LAGGING BEHIND No significant improvement expected in the short-term ON-GOING SUBDUED FRENCH CHALLENGING INDUSTRIAL PRODUCTION ENVIRONMENT Industrial production since January 2008  Current context weighing on (base 100 on January 2008) 105 customers’ capex decisions 100  Clients increased focus 95 on cost efficiency 90  Low inflation impacting 85 municipal contracts 80 75  Intensifying competition 2008/01 2008/04 2008/07 2008/10 2009/01 2009/04 2009/07 2009/10 2010/01 2010/04 2010/07 2010/10 2011/01 2011/04 2011/07 2011/10 2012/01 2012/04 2012/07 2012/10 2013/01 2013/04 2013/07 2013/10 2014/01 2014/04 2014/07 2014/10 2015/01 2015/04 2015/07 2015/10 France Germany Euro area 19 2015 Full-Year Results 8 I February 24th, 2016

SPEEDING UP STRATEGY DEPLOYMENT TO NAVIGATE CURRENT ENVIRONMENT Jean-Louis CHAUSSADE Chief Executive Officer 2015 Full-Year Results 9 I February 24th, 2016

SPEEDING UP INTERNATIONAL FOOTPRINT Already reaping benefits thanks to selective & accurate positioning Optimize capex allocation + 17 % in 2015 revenue growth in promising markets  Leading positions in developed low-risk countries  Build strong positions with key strategic local partners: Derun Environment in China  Strong pillars in specific emerging countries  “Pillars to be” in rising countries  Capture a bigger share of dynamic markets (e.g. Driplex acquisition in industrial water REVENUE BREAKDOWN REVENUE GROWTH in India) BY COUNTRIES IN 2015  Australian minorities buy-out Others  +18% in water Rest of Chile 6% AMEI 15%  +11% in waste 9%  Increase capex towards waste (Nantong  +21% in treatment hazardous waste EfW, SCIP extension …) Morocco US solutions 16% 23%  Sharp increase in DB China backlog (+13%), 7% Australia fueling future growth 24% Confirm objective to grow international revenue by 6% to 8% in the mid-term 2015 Full-Year Results 10 I February 24th, 2016