SHAP SHAPING ING SUEZ SUEZ 2030 2030: : POS POSITIONED ITIONED FO FOR R THE THE GRE GREEN EN RE RECO COVE VERY H1 2020 results July 29th, 2020 1
SHA SHAPING PING A A SUS SUSTAIN AINAB ABLE LE ENVIRONMENT ENVIR ONMENT, , NO 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 ST STRONG EN ENGAGEM EMEN ENT T OF O OUR R TE TEAMS AMS − Employees safety as first concern − Fully mobilised to provide essential services CON CONTIN TINUITY ITY OF E ESS SSEN ENTIAL TIAL SE SERVIC VICES ES − Roll out seamless business continuity − Ensure full reliability to accompany all our clients PRES PRESER ERVATIO TION OF T THE E EN ENVIR VIRONMEN ENT T AS A AS A PRIORITY 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 2030 1 Green Landfill in Meknes, Morocco Help our customers avoid 20 million tonnes of C0 2 e 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 REU REUSE SE AN AND D RECHAR RECHARGE E WA WATE TER SUST SU STAIN AINAB ABLE E AGRIC RICULTU TURE RE − − West Basin, USA Nantes Metropole Sludge management REH REHAB ABIL ILIT ITATIO TION O OF S SOIL IL FU FUNCTION CTIONS EN ENVIR VIRONMEN ENTAL AL MONIT ITORING RING − − Belgrade, waste management and resource recovery Management environnemental A9 Highway construction, Vinci NATU TURE RE BASED ASED SO SOLUTIO TIONS S AND AND REN RENATU TURA RATIO TION − Flood park, Alicante, Spain MICR ICRO-POLL LLUTAN ANTS TREA REATMENTS − Sophia Antipolis Wastewater treatment, France Examples details in appendices 7 page 53 29-Jul-20 SUEZ 1H20 Results 5
DRIVING DRIVING SEL SELECT ECTIVITY IVITY IN IN OUR OUR GR GROWTH WTH 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 NEA NEAR TER TERMS MS OPPOR OPPORTUNITIES TUNITIES : Reinforce our presence in China Finalize hazardous waste acquisition in Middle East Expand global water treatment offering Plastic recycling in Europe Mor More select e selectiv ive, e, higher higher-retur eturn n growt wth 29-Jul-20 SUEZ 1H20 Results 9
UPD UPDATE TE ON ON PER PERFOR FORMANCE MANCE PLA 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 54 workstreams launched Industrial processes Leveraging Group-wide scale 360 360° LE LEVE VERS RS Procurement 35-40% BEST P BE PRA RACT CTICE CE SHARI ARING VOLUME P POOLI LING 35-40% & CO & CONVE VERGENCE CE 20-25% G&A CR CROSS-RE REGIONS LE LEVE VERS RS Improving SUEZ environmental footprint €1bn annual savings 1 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 Estimated annual CA CASE SE S STU TUDY BEST PRA BES RACTICE CTICES (S (SELECT LECTED) D) EXPECTED IMPACT OPEX savings ✓ Sorting facility 2.0 in Northern ✓ -300 CO2 T/year, +1% flows WASTE MECHANICAL Europe recovered, -4% downtime SORTING ✓ Advanced near-infra red ✓ +50% hourly capacity, separation of € 24m 1 + sorters in France & Australia plastic flows MUNICIPAL ✓ -10% to -15% on coagulants ✓ Dosing control & piloting tools WATER & flocculants consumption for Drinking Water treatment ENERGY & plants ✓ -7% to -20% on aeration costs on CHEMICALS €8.5m 1 ✓ From WTS : Aeration control equipped sites module for Waste Water ✓ ~ -10% on energy costs treatment plants 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 Estimated annual OPEX savings INIT INITIA IATIVES TIVES (se (selec lected ca case se st studies) ies) TANGIBLE RESULTS COLLECTION TRUCKS & REVISED RENEWAL PLAN AND MAINTENANCE PLAN EQUIPMENT • Right size the truck fleet ✓ ~30% reduction on renewal plan €25m 1 + • Review renewal plans ✓ Revised trucks specifications • Review financing models ✓ Leaner maintenance supplier panel OFF-ROAD EQUIPMENT REVISED RENEWAL AND MAINTENANCE PLAN • Standardize specifications ✓ Global fleet sizing approach • Challenge supplier panel €4m 1 ✓ New challengers invited to tender • Outsource fleet management ✓ Optimized maintenance contracts in relevant geographies 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
FOC FOCUS US ON ON FIN FINANCIAL ANCIALS Julian WALDRON Chief Financial Officer
1H Highlights Performance in line with previous communications General conditions in Chile R&R prices holding up 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 Volume lumes - Negative impact in Asia and Europe of confinement and lower tourism R , € (4.5)% gross - Voluntary restrictions on water consumption in Chile (3.2)% organic - Resilience in North America (3.1)% excl. FX - Most construction projects slowed down 3,374 3,221 Tar ariffs fs - Largely as expected (+1.7% in France, (45) (100) +12 +20 (40) (1.3)% in Spain, +2.5% in Chili and +2.0% in USA) Scope Volumes (1) Tariffs (2) Net C ial. Works & FX Activity (3) and - Deferral of increases in some territories during others confinement H1 2019 H1 2019 H1 2020 H1 2020 Comme Co mmercial ial - Start of Toulouse contract in France in January 2020 - High renewal rate in Spain and US (1) At iso contracts (2) escalation formula 29-Jul-20 SUEZ 1H20 Results 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 Volume lumes - Confinement impact strongest in France, Belgium and UK R , € (7.7)% gross - Germany and the Netherlands resisted well (6.6)% organic (7.1)% excl. FX Pricing Pr icing and comm mmodit ities ies 3,741 3,451 - Pricing in line with expectations - Negative commodities: paper, plastics, electricity (42) +77 (242) (53) (29) - Small positive impact from diesel Scope Prices Volumes Commodity Construction & FX & mix prices Comm mmercial ial H1 2019 H1 2020 - 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 Hazardous s Wast ste - Early impact in China - Confinement hit construction and soil remediation volumes in Europe R , € (3.8)% gross (3.3)% organic - Sharp recovery in France in May and June (3.4)% excl. FX Water Technolog logies ies & S & Solut lution ions 1,708 1,642 - Resilient revenue: +1% organic - CMS and Product sales evolved well (9) (45) +7 (19) - Slower Project revenue and order intake Scope Hazardous Water SES (1) & FX Waste Technologies & Solutions Smart & E Smar & Envi vironme mental l Soluti Solutions H1 2019 H1 2020 - Onsite activities stopped during confinement - Remote and digital services continued with minimal change 29-Jul-20 SUEZ 1H20 Results (1) Smart & Environmental Solutions 18
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