2016 FULL-YEAR RESULTS MARCH 1 st , 2017
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’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 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. 2016 Full-Year Results 2 I March 1st, 2017
FY 2016 HIGHLIGHTS: FULL COMMITMENT TO ACHIEVE TARGETS IN A TOUGH ENVIRONMENT Jean-Louis CHAUSSADE Chief Executive Officer 2016 Full-Year Results 3 I March 1st, 2017
2016 KEY HIGHLIGHTS Full commitment to achieve targets in a tough environment Launch of the Transformation plan New strategic move in China with full control of all our Main achievements Chinese activities through a single entity Strengthened positioning in Italy through ACEA Revenue growth lifted by International division Revenue: € 15,322m +1.1% organic growth +0.5% organic growth EBIT: € 1,282m (1) +2.1% organic growth when adjusting for impact from exceptionally high 2015 water volumes of 20m € +3.1% growth Net Income GS: € 420m +4.3% EPS growth In-line with target FCF: + € 1,005m Strong mobilization to improve cash-generation Net debt: € 8,042m ND / EBITDA: 3.0x Negative FX and scope effects (+ € 240m) (1) Includes + € 36m provision reversal accounted for in H1 2016 2016 Full-Year Results 4 I March 1 st , 2017
DISCIPLINE STRONGER THAN HEADWINDS Christophe CROS Chief Financial Officer 2016 Full-Year Results 5 I March 1st, 2017
HIGHLIGHTS Key targets achieved despite a tough environment EBIT above target - KEY FIGURES - In spite of FY revenues hampered by activity Organic slowdown in H2 and lower commodity prices In € m FY 2015 FY 2016 growth EBIT: +2.1% organic growth excl. exceptional 2015 water volumes for € 20m REVENUE 15,135 15,322 +1.1% EBITDA (1) 2,651 2,751 -0.1% Discipline and proactivity rewarded EBIT (1) 1,381 1,282 +0.5% Compass: 180m € NET RESULT 420 Asset rotation: 486m € divestment 408 Group Share FREE CASH FLOW 1,047 1,005 Increase in profitability Net result group share: +3.1% NET INVESTMENTS 1,626 705 EPS: +4.3% NET DEBT 8,042 8,083 ND/EBITDA 2.9x 3.0x 2016 Full-Year Results 6 I (1) Including impact from Derun: € 131 capital gain in 2015 and € 36m provision reversal in 2016 March 1st, 2017
FY 2016 REVENUE 1.2% growth driven by International In € m 15,322 +4.7% -1.3% +0.6% (3) 15,135 (62) +39 +188 Others (185) Water R&R (1) International +210 Forex Europe Europe Scope Organic growth: +1.1% QUARTERLY REVENUE +3,9% +1,5% -1,1% +0,1% FY 2015 FY 2016 Q1 Q2 Q3 Q4 Quarterly organic growth 2016 Full-Year Results 7 I (1) Recycling & Recovery March 1st, 2017
FY 2016 EBIT European headwinds offset by international performance In € m 1,381 (1) 1,282 (1) (95) +18 Derun (2) (28) +30 (27) Scope (28) +31 Forex Others Electricity International Water Volumes (3) EBIT EBIT Margin Margin 8.3% (2) 8.1% (2) ORGANIC GROWTH BY DIVISION +5,5% +2,0% -3.5% FY 2015 FY 2016 Water Europe Recycling & International Recovery Europe (1) Including impact from Derun: + € 131 capital gain in 2015 and + € 36m provision reversal in 2016 2016 Full-Year Results 8 I (2) Adjusted for + € 131m capital gain in 2015 & + € 36m provision reversal in 2016 March 1st, 2017 (3) Including - € 8m from the end of the Lille contract
WATER EUROPE Lack of inflation weighing on escalation formulas Contrasted key indicators evolution REVENUE In € m between countries +29 (98) (3) +88 4,703 +16 (21) +14 Volumes (1) Prices 4,677 Volume (1) Tariffs (2) New Others Works Scope France -2.0% +0.1% Services Net Cial. Forex Activity (3) Spain (4) +1.0% +0.3% Chile +0.9% +4.0% FY 2015 FY 2016 Commercial activity mainly affected by the end of the Lille contract: - € 82m EBIT % EBIT MARGIN Positive scope effect from the 636 (5) consolidation of Nantaise des Eaux 611 Forex (+69m € ) (10) Volumes Others Lille (20) +13 (8) Negative impact on tariffs from lower energy prices 13.6% 13.0% New services: +14% in revenues FY 2015 FY 2016 (1) At iso contracts (4) Excluding upstream volumes 2016 Full-Year Results (2) Escalation formula on Delegation of public services (5) Adjusted figure following intra-group reclassification 9 I (3) Net balance between contracts gained / renewed / lost & amended; March 1st, 2017 including - € 82m from Lille
RECYCLING & RECOVERY EUROPE Improved performance despite lower commodity prices Strong increase in recovered volumes REVENUE FY In € m ∆ 16/15 Mt 2016 Elimination 8.2 -4.0% 6,357 (95) (36) Recovery 16.9 +4.3% +38 6,302 +21 +16 Energy from Waste 8.5 +4.8% Construction Sorting & Recycling 8.3 +3.8% Volumes Scope Commodity Prices Forex Prices Processed volumes 25.1 +1.4% Revenue hampered by commodity prices: FY 2015 FY 2016 negative trend in scrap metal (-10%) and plastic (-8%) EBIT % EBIT MARGIN Upwards volumes & pricing trends overall, 306 (1) 310 positive impact of the commissioning of 3 new EFW in UK and Poland Forex (7) Electricity EBIT impacted by lower electricity prices: -27m € Others prices +38 4.9% 4.8% (27) Improved profitability thanks to cost-cutting efforts and on going rationalization FY 2015 FY 2016 2016 Full-Year Results 10 I (1) Adjusted figure following intra-group reclassification March 1st, 2017
INTERNATIONAL Solid momentum in main regions Volumes evolution REVENUE In € m FY ∆ 16/15 2016 4,217 +80 DB backlog - € bn 1.3 +0.5% +29 +132 (55) +32 +2 3,998 China – Mm 3 sold 208 +3.2% (2) Asia Australia Scope North Europe AMEI (1) North America - Mm 3 sold 291 +0.3% & Forex America LATAM Morocco - Mm 3 sold 151 +0.4% China/Australia – Waste treated mt 9.8 +11.2% FY 2015 FY 2016 Strong activity in Asia, thanks to new contracts and +17% growth in waste EBIT volumes in Hong-Kong % EBIT MARGIN 566 (3) Waste volumes up +7.5% in Australia , 496 driven by soils volumes & new contribution 471 of Perthwaste Others Derun Forex 31 (95) Scope (11) Very dynamic growth in Africa-Middle +5 10.9% (5) 10.9% (5) East-India linked to construction activity FY 2015 FY 2016 (1) Africa, Middle East & India (2) At iso contracts 2016 Full-Year Results (3) Adjusted figure following intra-group reclassification 11 I March 1st, 2017 (4) € 131 capital gain in 2015 and € 36m provision reversal in 2016 (5) Adjusted for + € 131m capital gain in 2015 & + € 36m provision reversal in 2016
FY 2016 From EBITDA to income from operating activities ∆ 16/15 In € m ∆ 16/15 FY 2015 FY 2016 excl. Derun 2,751 (1) 2,651 (1) -3.6% EBITDA -0.2% (1,108) (1,111) Amortization 16 22 Net provisions Other (concession charges, ESOP (2) ) (279) (280) 1,381 1,282 -7.2% EBIT -0.3% (71) (76) Restructuring costs (102) 84 Provisions on assets & others (3) 1,208 1,290 +6.8% INCOME FROM OPERATING ACTIVITIES +16.4% (1) Including impact from Derun: € 131 capital gain in 2015 and € 36m provision reversal in 2016 (2) Performance shares & Stock Options 2016 Full-Year Results 12 I (3) Includes - € 160m of provision on assets, + € 274m of capital gains and - € 28m of rebranding costs in 2016 March 1st, 2017 (vs. respectively - € 87m, + € 11m and - € 28m in 2015)
FY 2016 Income from operating activities to net result group share ∆ 16/15 In € m FY 2016 FY 2015 INCOME FROM OPERATING ACTIVITIES 1,208 1,290 6.8% Cost of net debt (1) : 3.67% vs. 4.19% Cost of net debt (363) (360) in 2015 (58) (63) Other financial result Income tax (173) (244) Effective tax rate: 35.4% vs. 33.3% NET RESULT 614 623 1.6% in 2015 ( 206 ) Minority interest (203) NET RESULT GROUP SHARE 408 420 3.1% 2016 Full-Year Results 13 I (1) Excluding securitization cost and inflation-link cost in Chile March 1st, 2017
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