SUEZ ENVIRONNEMENT (EPA:SEV) RESULTS OF SUEZ 2030 STRATEGIC PLAN AHEAD OF THE OBJECTIVES, CONFIRMING THE GROUP’S UNIQUE VALUE CREATION POTENTIAL, TO BENEFIT ALL STAKEHOLDERS

Transparency directive : regulatory news

22/09/2020 07:48

Press release

Paris, September 22nd, 2020 - 7h45 CEST

RESULTS OF SUEZ 2030 STRATEGIC PLAN AHEAD OF THE OBJECTIVES, CONFIRMING THE
GROUP'S UNIQUE VALUE CREATION POTENTIAL, TO BENEFIT ALL STAKEHOLDERS

- EPS1 from EUR0.75 to EUR0.80 in 2021 and up to EUR1.0 in 2022
- Ordinary dividend at EUR0.65 paid in 2021 and growing to EUR0.70 in 2022
- Exceptional dividend or share buyback of at least EUR1bn as soon as possible
and by no later than H1 2021
- Enhanced financial flexibility also deployed to boost growth
- A trajectory intended to double shareholder value by 2022

The implementation of Suez' strategy announced in 2019, is delivering tangible
results already this year on several workstreams, allowing the Group to bring
the overall timeline forward. Through Suez 2030, the Group can use its agility
to capture the multiple growth opportunities in our businesses, in line with
its objective to become a leader in environmental services.

TANGIBLE RESULTS ALLOWING TO RAISE THE SUEZ 2030 OBJECTIVES

For each of SUEZ 2030's value creation levers - selectivity, simplicity and
team engagement - the tangible results delivered in less than a year justify an
acceleration of the strategic plan:

- The asset rotation program is well advanced, with the first wave completed
and the second wave in advanced discussions, and at stronger valuation levels
than initially targeted as part of SUEZ 2030 plan.

- The performance program is now aiming for EUR1.2bn in annual savings by 2023,
of which EUR900m to be achieved by 2022.

- Finally, SUEZ reaffirms its commitment to expanding employee shareholding
over the next two years.

GROWTH PERSPECTIVES IN 2021 AND 2022(1)

SUEZ is able to provide visibility on its financial trajectory for 20211 and
2022(1) as follows:

- Revenues seen above EUR16bn in 2021 and above EUR17bn in 2022;
- EBIT targeted between EUR1.35 and EUR1.50bn in 2021 and at around EUR1.7bn in
2022
- Recurring EPS targeted at between EUR0.75 and EUR0.80 in 2021 and EUR0.90 and
EUR1.0 in 2022
The guidance previously communicated by the Group for 20201 is confirmed.

A BALANCED REDEPLOYMENT OF CAPITAL

Based on these tangible results, the Group will redeploy capital to fuel growth
while returning cash to its shareholders, in a balanced way.

- Investing for growth for at least EUR4.5bn from June 2020 to December 2022:

(1) Assuming pro forma all disposals impacts as of January 1st, 2021, assuming
no return to a generalized, region-wide confinement situation, and constant FX
and commodity prices

o Strengthening the Group in priority and high-growth businesses (water,
plastic recycling and hazardous waste, digital solutions and technologies, and
international development) via selected inorganic growth for close to
EUR1.5bn;

o Continued targeted capex to boost organic growth (EUR3bn);

* Sustained Group's deleveraging for circa EUR1bn in order to achieve a
leverage below 3x by 2022, while maintaining a Baa1 credit rating

* An acceleration of the return to shareholders that could reach at least
EUR2bn by the end of 2022, of which:

o Ordinary dividends of EUR0.65 per share payable in 2021 increasing to
EUR0.70 per share in 2022;

o A potential addition of at least EUR1bn extraordinary distribution in the
course of 2021;

* Additionally, EUR1bn can be used for further investments in organic and
inorganic growth, depending on opportunities and according to our strict
financial discipline, or be the subject of an additional extraordinary return
to shareholders.

A STRENGTHENED GROUP BY 2022, SUPPORTING AN AMBITIOUS VALUE CREATION PLAN FOR
ALL ITS SHAREHOLDERS

SUEZ will benefit from a greatly enhanced financial profile by 2022, with:

* Faster organic growth based on selectivity and focus in line with our
strategic priorities: organic growth expected to be above 4 - 5% per year from
2022;
* Higher profitability with our EBITDA margins expanding by +100 to 300 basis
points benefiting from the performance plan and from a more favorable business
mix;
* Substantial improvement in our return on capital employed (ROCE): increasing
to 6.5% - 7% in 2022 from 4.9% in 2019 a year ahead of schedule
* Recurring Free Cash Flow generation greater than EUR500m per year

Philippe Varin, President of the Board of Directors of SUEZ Group, commented:
"The Board of Directors welcomes the tangible results from the implementation
of the SUEZ 2030 transformation plan. The Board supports the management in the
reinforcement of the plan, which will significantly increase the value creation
potential of an independent Suez group, for the benefit of all stakeholders."

Bertrand Camus, CEO of SUEZ Group, added: "Less than a year after the
presentation of our SUEZ 2030 plan, its results exceed our objectives thanks to
the continuous commitment of our teams. Driven by the major issues arising from
the climate emergency, our priorities are to invest in value-added services to
fuel the Group's ability to support our clients and therefore our growth, as
the Ieader in environmental services. The steps announced today to reinforce
our strategic plan offer a significant increase in value already in 2022 for
all Suez' shareholders."

CONTACTS
Media
Isabelle Herrier Naufle / Ophélie Godard
isabelle.herrier.naufle@suez.com /
ophelie.godard@suez.com
+33 6 83 54 89 62 / +33 6 70 66 18 20

Analysts/Investors
Mathilde Rodié / Cécile Combeau
+33 6 32 13 70 17/ +33 6 32 35 01 46

Disclaimer
This press release contains unaudited financial data. The aggregates presented
are those normally used and communicated on markets by SUEZ.
This press release 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), the French
Financial Markets Authority. 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 Internet
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.

About SUEZ
Since the end of the 19th century, SUEZ has built expertise aimed at helping
people to constantly improve their quality of life by protecting their health
and supporting economic growth. With an active presence on five continents,
SUEZ and its 90,000 employees strive to preserve our environment's natural
capital: water, soil, and air. SUEZ provides innovative and resilient solutions
in water management, waste recovery, site remediation and air treatment,
optimizing municipalities' and industries' resource management through "smart"
cities and improving their environmental and economic performance. The Group
delivers sanitation services to 64 million people and produces 7.1 billion m3
of drinking water. SUEZ is also a contributor to economic growth, with more
than 200,000 jobs created directly and indirectly on an annual basis, and a
provider of new resources, with 4.2 million tons of secondary raw materials
produced. By 2030, the Group is targeting 100% sustainable solutions, with a
positive impact on our environment, health and climate. SUEZ generated total
revenue of EUR18.0 billion in 2019.

Find out more about the SUEZ Group on the website & on social media

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SUEZ
Head Office: Tour CB21 - 16 place de l'Iris, 92040 Paris La Défense Cedex,
France - Tel : +33 (0)1 58 81 20 00 - www.suez.com
Limited Liability Company with a share capital of EUR2,513,450,316 - Siren
(French business administration number) 433 466 570 RCS Nanterre -
VAT FR 76433 466 570

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SUEZ ENVIRONNEMENT (EPA:SEV) RESULTS OF SUEZ 2030 STRATEGIC PLAN AHEAD OF THE OBJECTIVES, CONFIRMING THE GROUP’S UNIQUE VALUE CREATION POTENTIAL, TO BENEFIT ALL STAKEHOLDERS

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