Suez : Présentation résultats annuel 2019 (en anglais)

Performance

for the full-year 2019

26th February 2020

2019 Performance

Bertrand Camus

Chief Executive Officer

2 I FY19 Results | 26th February 2020

2019: solid set of results

Annual targets met or exceeded

Target exceeded

Target met

+3.6%	EBIT up	FCF up
+4.3%	+7%
revenue
organic growth	vs. last year	vs. last year

CDP	DJSI World	Vigeo Eiris
Index
Climate change A list	3rd worldwide
11th year

3 | FY19 Results | 26th February 2020

The market fundamentals are stronger than ever

				Tightening
					86% of S&P 500
		+1bn urban	Water scarcity	regulations on	Growing citizen
	inhabitants by	environment	Index® companies
	will impact 2bn	awareness on
	2030, 98%	Circular Economy	published
	people within	global climate
		outside of	sustainability
		2030	Package in	crisis
		Europe	Europe, China's	reports in 20181
				Green Fence

4 | FY19 Results | 26th February 2020 1 Source: G&A Institute

Sustainable solutions with a positive impact for our customers

Flagship commercial successes

Water	Recycling & Recovery	Environmental Tech & Solutions
FRANCE - DIJON METROPOLE	THAILAND - RECYCLING PLANT	INDIA - WASTEWATER REUSE
Drinking water and wastewater
Renewal of contract for 9 years from Apr.2021	Turns plastic waste into circular polymers	High quality treated water for reuse
1st positive energy & zero waste SEMOP			in industrial applications

Consolidate position in Europe through	Reinforce footprint in selected international	Leverage our proprietary technology and
innovation and sustainable solutions	geographies through expertise	service capability for industry

5 | FY19 Results | 26th February 2020

Shaping SUEZ 2030 positions SUEZ for the next decade

All workstreams launched and well underway

We drive growth by only selecting opportunities where we are appropriately

rewarded for our differentiation

We simplify the way we work to best serve our clients

We engage all employees to ensure their commitment

Selective organic growth Capex discipline

15-20% portfolio rotation

Leaner organization €1bn performance plan1 Digital and innovation step-up

Winning spirit

Talent development

Aligned incentives

A plan fully delivering in 4 years with material results as soon as 2021

6 | FY19 Results | 26th February 2020

(1) Annual savings in 2023 compared to 2018 cost base

Reallocating our capital resources

Focus on more selective and higher return growth

Selective organic growth	Portfolio rotation
> Selectivity: Geography, Activity and Business model	> Align business portfolio with value creation ambitions
> Infrastructure guidelines to reduce construction risk	> Rotate 15-20% of Capital Employed
> SUEZ differentiation and added-value proposition	> 1st wave out of 2 to be executed in 2020

• Contribution to a sustainable environment

PRIORITIZE VALUE CREATION
OVER "GROWTH FOR GROWTH"
Revenue organic growth of 2 to 3% in 2020	First wave of asset rotation
Acceleration from 2021	Included in 2020 EPS target

7 | FY19 Results | 26th February 2020

Streamlining our operations

Initiatives serving customer experience and sustainable operational efficiency

new organisation	global steering framework

6 regions
and 2 global business
units since 1st Jan	€1bn1
	gross annual
	savings
	by 2023

new Operating

Performance Review and Budget processes

Launched 1st wave of transversal initiatives on top of local actions

on performance improvement and SG&A optimization

40+ working groups 1,000+ people across all geographies

8 | FY19 Results | 26th February 2020

1 2020 - 2023 gross optimization (excl. incremental investments) Pro forma figures based on 2018 cost base (excl. scope variation)

Ensuring full engagement to support execution

New management framework and governance evolution

Renewed management team

• Increased share of managers coming from operations
• Greater proportion of women and of non-French managers

Top-160 Executives

62% renewed Performance Management Committee Executive Committee70% renewed

50%renewed

Management incentives fully aligned

• 2019 Long-Term incentive Plan for the CEO and ~1,700 beneficiaries

Performance units indexed on SUEZ share price that could lead to cash payment in 2022, subject to:

1. A 3-year presence condition
2. Performance targets aligned with Shaping SUEZ 2030 financial targets for 2021 and incl. TSR evolution vs. Euro Stoxx Utilities

Gender parity ratio in management could lead to an increase or decrease up to 10%

Part of total compensation is subject to reinvestment in shares for the CEO and Excom members

> Part of the bonus in 2020 based on contribution to performance plan and shaping SUEZ 2030 for the Top-160 Executives and c. 1 000 change leaders

Governance

Board of Directors proposing to the Annual General Meeting:

• Philippe Varin to join the Board as Director and Chairman
• A reduction in the number of Directors from May 2020

9 | FY19 Results | 26th February 2020

2019

Financial Results

Julian Waldron

Chief Financial Officer

10 I FY19 Results | 26th February 2020

Revenue up +3.6% on an organic basis

Each division contributing positively

Revenue in €m

+3.6% organic

18,015

17,331

+106	(47)	+64	+305	+117	+134	+5
FX	Scope	Water	R&R	International	WTS	Other(2)
Europe	Europe (1)

	FY 2018	FY 2019
(1) Recycling & Recovery	(2) Mainly SUEZ Consulting

11 I FY19 Results | 26th February 2020

EBIT up +4.3% on an organic basis

Increased operational margin

EBIT in €m

+4.3% organic

1,408

1,335

(1)

+13

+4

(2)

+20

+36

+4

(1)

EBIT Margin

7.7%

FX	IFRS 16	Scope	Water	R&R	WTS	Other(2)
Europe	Europe (1) International
	impact					EBIT Margin
							7.8%

	FY 2018	FY 2019
(1) Recycling & Recovery	(2) Mainly SUEZ Consulting

12 I FY19 Results | 26th February 2020

Water Europe

Organic Revenue growth +1.4% driven by supportive volumes

Revenue
in €m
+0.2% gross
		+1.4% organic
4,629	+0.7% excl. FX	4,638

(55)	+25	+35	(51)	+33	+1	+22
Scope	Volumes(1)	Tariffs(2)	Net Cial.	Works	New	Others
& FX			Activity(3)		Services

FY 2018

FY 2019

EBIT

in €m

(2.1)% gross

(0.4)% organic

503

(0.1)% excl. FX

494

(9)

+1

(4)

+3

EBIT Margin

EBIT Margin

Scope

IFRS 16

Bordeaux

Underlying

10.9%

10.7%

& FX

& Valenton

termination

FY 2018

FY 2019

• In France:
• • Growing volumes (+1.0%) partially offset contract expiry
  • Tariffs on concessions are up +1.8%
• Supportive volumes in Spain (+1.9%) ; tariffs down (0.4)%, incl. (1.65)% tariff decrease in Barcelona impacting January to May y-o-y comparison
• Continued solid performance in Latin America
• • Chile: volumes up +0.6% and tariffs up +1.6%
  • Construction activity in Ecuador and Panama
• EBIT flat also reflecting efficiency measures implemented in France and Spain

All variations excl. IFRS 16

13 I FY19 Results | 26th February 2020	(1)	At iso contracts (2) Escalation formula
(3)	Net balance between contracts gained / renewed / lost & amended

Recycling & Recovery Europe

Solid organic performance both in Revenue and EBIT

Revenue
in €m
	+4.3% gross
						+4.9% organic
						+4.4% excl. FX	6,471
6,206

(40)	+342	(81)	+44
Scope	Prices,	Commodity	Construction
& FX	volumes	Prices
	& mix
FY 2018			FY 2019

EBIT

in €m

+5.4% gross

+7.0% organic

287

+5.5% excl. FX

308

EBIT Margin	(4)	+35	+4	(19)	+6	EBIT Margin
4.8%
4.6%	Scope	Prices,	Fuel cost &	Recyclates	IFRS 16
	& FX	volumes	Energy prices	prices(1)
FY 2018		& mix				FY 2019

All variations excl. IFRS 16

• Supportive pricing power in all geographies, driven by the saturation of treatment facilities
• Processed waste volumes up +1.5%
• Recyclate prices at a low level
• Hazardous Waste performing well, driven by price increases and strong soil remediation activity in France and the Netherlands
• EBIT boosted by solid pricing trends and good operational performance more than offsetting commodity headwinds

14 I FY19 Results | 26th February 2020

(1) Mainly paper and cardboard, but also plastic and metal

International

Solid commercial momentum drives Revenue and EBIT growth

Revenue

in €m

+5.1% gross

+2.9% organic

3,990

+3.3% excl. FX

4,195

+88

+32

+51

+36

(57)

+55

Scope

North

AMEI(1)

ICEE(2)

Australia

Asia

& FX

America

FY 2018

FY 2019

EBIT

in €m

+8.8% gross

+6.4% organic

+7.0% excl. FX

617

563

+14

+4

+36

EBIT Margin

EBIT Margin

Scope

IFRS 16

Organic

14.7%

14.1%

& FX

FY 2018

FY 2019

All variations excl. IFRS 16

• Strong organic growth in Asia:
• • Consolidation of SCIP water assets impacted positively H1 y-o-y comparison
• Dynamic trends in AMEI:
• • Ramping up of network construction projects in India
• Solid activity in North American water
• Australia: organic revenue growth down due to challenging comparison basis linked to the completion end-2018 of major infrastructure works around Sydney
• EBIT up +6.4% organically with most geographies contributing

15 I FY19 Results | 26th February 2020 (1) Africa, Middle East & India (2) Italy, Central and Eastern Europe

Water Technologies & Solutions

Strong organic growth in Revenue, up +5.6%

Revenue
+8.3% gross
in €m
		+5.6% organic
		+5.7% excl. FX	2,595
2,396

		+65	+38		+97
			Scope	Chemical	Engineered
			& FX	& Monitoring	Systems
				Solutions
	FY 2018							FY 2019

EBIT

in €m

+4.7% gross

+3.0% organic

+5.4% excl. FX

134

128

EBIT Margin

EBIT Margin

+2

(1)

+5

5.2%

5.3%

Scope

Underlying

One-offs

& FX

FY 2018

FY 2019

• Strong order book with orders up +11.2% organically in 2019 and significantly higher than end-2018 level
• 5.6% organic growth in revenue:
• • Strong 9.1% organic growth in Q4
  • ES up +6.8% FY driven by a strong performance of notably projects activities
  • CMS up +3.8% FY reflecting mixed trends: low activity in the US and solid momentum in the rest of the world
• Underlying EBIT impacted by low activity in Chemical Monitoring Solutions in the US

All variations excl. IFRS 16

16 I FY19 Results | 26th February 2020

Below EBIT : Net income Group share up +5%

335

352

+73

+215

(96)

(104)

(49)

(27)

+4

Change

Argentina

Change in

Change

Change in

Change in

IFRIC 21

in EBIT

settlement

tax expenses

in one-offs

financial

non-controlling

& others

expenses

interests

Net Income

Net Income

FY 2018

FY 2019

17 I FY19 Results | 26th February 2020

Net Debt reduced in line with objective

In €m

									10,151
8,954	10,327							8,708
									+1,443
									IFRS 16
	(2,502)	+153	+253	+354	+1,417	(79)
3.2x	Gross Cash	Change in	Tax	Financial	Capex	Disposals,	3.0x
Flow
WCR	Expenses(1)	Expenses	Of which	dividends
ND/EBITDA					& others	ND/EBITDA
					+663	+755
					Maintenance Development
					Capex	Capex
Net debt								Net debt	Net debt
31/12/2018								31/12/2019	31/12/2019
								excl. IFRS 16

18 I FY19 Results | 26th February 2020	(1) Including tax expense linked to Argentina settlement

Looking forward : a new segment structure

2019 financials	Water		Recycling & Recovery
Sales		c. 39% of sales		c. 41% of sales
Organic growth potential		+		+
EBIT		c. 60% of EBIT		c. 26% of EBIT
Capex		c. 57% of Capex		c. 30% of Capex
Capital Employed		c. 54% of CE		c. 25% of CE
Capital Employed evolution

Environmental Tech &

Solutions

c. 20% of sales

+++

c. 14% of EBIT

c. 13% of Capex

c. 20% of CE

19 | FY19 Results | 26th February 2020

2019 under the new segment structure

Water		Recycling & Recovery	Environmental Tech & Solutions

Revenue
in m€	7,058
6,838
	+2.9%
FY 2018	FY 2019

EBIT in m€

918	923
	(0.0)%
FY 2018	FY 2019

7,288	7,454
	+2.9%
FY 2018	FY 2019

374 412

+10.1%

FY 2018	FY 2019

3,285	3,596
	+7.0%
FY 2018	FY 2019

188 +10.8% 215

FY 2018	FY 2019

% org.

20 I FY19 Results | 26th February 2020

Progress to date on SUEZ 2030

Disposals

• All projects launched
• Two main waves expected, including wave 1 this year
• Each wave roughly half of Capital Employed target

Performance efficiency

• Substantial mobilization of industrial and commercial teams
• Wave 1 results to date prove out volume and timing of savings

Below EBIT1

• Hybrid and senior liability management in 2H19
  €18m savings from 2021
• First intercompany actions at year-end

€20m savings from 2021

• Reduction of deferred tax assets at year-end 2019

Cash and debt

• 2.8x - 3.0x ND/EBITDA targeted - initially from increased cashflow and disposals
• WCR stable in 2019 versus 2018, target improvement across 2020

21 | FY19 Results | 26th February 2020

(1) At constant market conditions

2020: a year for execution

Business entirely focused on the execution of Shaping SUEZ 2030 strategic plan

2020 Financial targets1

• Revenue: 2 to 3% organic growth
• EBIT: 5 to 6% organic growth excl. impact of Covid-19 in China estimated at €30m to €40m2
• Recurring EPS (new definition): €0.65
• Recurring FCF (new definition): €300m

2021 targets confirmed: recurring EPS at €0.80 and recurring FCF at €500m

22 | FY19 Results | 26th February 2020

1. Assuming no major material change in economic and market conditions (including interest rates, forex and commodity prices) vs. those observed the past 12 months.
2. 3-monthsimpact in China, assuming a gradual return to normal situation from 2020 second quarter.

Conclusion

Bertrand Camus

Chief Executive Officer

23 I FY19 Results | 26th February 2020

Our core strengths add value to our clients

Our unmatched client base trusts our expertise and know-how

Our 90,000 employees are passionate and committed

We continuously innovate to ensure we have leading-edgesolutions

SUEZ brand is recognized for leadership in sustainability

We put ethics and health & safety at the heart of our values

#1

#2

#2

#1

private water provider worldwide1

in waste services in Europe

in industrial water and membrane bioreactor

in smart water in Europe

24 | FY19 Results | 26th February 2020 1 According to GWI, in number of inhabitants covered (~135m)

SUEZ embraces its pioneer role in shaping a sustainable environment

Ambitious targets set to go further

Material impacts	A transformed SUEZ		A reviewed		Setting new sustainability standards for 2030
as soon as 2021		in 2023		and rotated portfolio
2021	2023				- 45%4		100%
Recurring EPS1:		ROCE		Businesses	CO2 emissions, in line with the
€0.80		at least two		identified accounting		Sustainable
Recurring FCF2:			for	+1.5° trajectory / carbon neutrality	Solutions
	points			in 2050
€500m		15-20%
	above 2018
Leverage3:
2.8-3.0x		level		of CE			c. 20mt
				H1 2019 Capital Employed : €20.6bn			yearly CO2	emissions
								saved for our clients

2021 guidance assumes no material change in economic and market conditions (incl. interest rates, forex and commodity prices) vs. those observed over 2019

1. Recurring EPS: [Net Income group share - (hybrid coupon + all one-off costs cash and non-cash +/- capital gain/losses on disposals) x (1 - applicable tax rate)] / number of shares.
2. Recurring FCF: Cash Flow from operating activities - hybrid coupon + restructuring (cash expenses) - property plant, equipment - intangible capex - lease expenses - net financial charges - flows including to/from minorities dividend.
3. Debt including IFRS 16
4. vs. 2014

25 | FY19 Results | 26th February 2020

Appendices

26 I FY19 Results | 26th February 2020

Table of contents

1.	Key figures	28
2.	IFRS 16 impacts	30
3.	Essentials from new segments structure	32
4.	2021 recurring EPS guidance	38
5.	P&L	40
6.	Cash Flow Statement	48
7.	Balance Sheet	51
8.	Activity of divisions	55

27 I FY19 Results | 26th February 2020

Appendix 1

Key figures

28 I FY19 Results | 26th February 2020

Key figures as December 31st, 2019

In €m	FY 2018	FY 2019	Gross	Organic
Revenue	17,331	18,015		+3.9%	+3.6%
EBITDA	2,768	3,220		+16.3%	+3.9%
% Revenue	16.0%	17.9%
EBIT	1,335	1,408		+5.4%	+4.3%
% Revenue	7.7%	7.8%
Net income, Group Share	335	352		+5.0%
Recurring Net Income (new definition) (1)	345	350		+1.6%
Recurring Earnings per share (new definition)	0.56	0.57		+1 cts
Free cash flow	1,023	1,095		+7%
Recurring Free cash flow (new definition) (2)	114	127		+11.0%
Net debt	8,954	10,151		(2.7)%(3)
Net debt / EBITDA	3.2x	3.0x	(3)	-0.2x

Gross

Excl. FX

at constant reporting standards

+3.9% +3.3%

+4.5% +4.2%

+4.4% +4.5%

	(1)	Net income Group share - (hybrid coupon + total of one-off cash and non-cash expenses + capital gains or losses on disposals) x (1 - applicable tax rate);
29 | FY19 Results | 26th February 2020	(2)	Cash flow from operating activities - hybrid coupon + restructuring costs (cash) - tangible assets - intangible capex - leases - net financial expense - cash flow including
	dividends from minority interests.
	(3)	At constant reporting standards

Appendix 2

IFRS 16 impacts

30 I FY19 Results | 26th February 2020

IFRS 16 impact on 2019 figures

• Application of IFRS 16 since January 1st, 2019
• Implication from the date of application:
• • Balance sheet : a right-of-use asset representing the right to use the underlying leased asset and a lease liability representing obligation to make lease payments
  • Income Statement : recognition of an interest expense on the lease liability and depreciation on the 'right-of-use' asset
• SUEZ adopted the modified retrospective approach
• • Date of application corresponds to the first day of the annual reporting period in which SUEZ applies the new IFRS 16 requirements
  • Comparatives figures for 2018 are not restated

In €m	FY 2019	o/w impact of
IFRS 16
EBITDA	3,220	+329
EBIT	1,408	+13
Financial Result	(514)	(28)
Net Income	609	(18)
Free Cash Flow	1,095	+9
Net Debt	10,151	+1,443
Net Debt / EBITDA	3.2x	0.14x

31 I FY19 Results | 26th February 2020

Appendix 3

Essentials from new segment structure

32 I FY19 Results | 26th February 2020

Essentials from new segment structure

Reconciliation table

Revenue 2019	WATER	REYCLING & RECOVERY	ENVIRONMENTAL TECH &	Intercompany
In €m	SOLUTIONS
WATER EUROPE	4,401	-	330	(92)
RECYCLING & RECOVERY EUROPE	-	5,970	501	-
INTERNATIONAL	2,658	1,484	56	(0)
WATER TECHNOLOGIES & SOLUTIONS	-	-	2,595	-
OTHER(1)	-	-	113	-

TOTAL

4,638

6,471

4,198

2,595

113

TOTAL	7,058	7,454	3,596	(93)	18,015

33 I FY19 Results | 26th February 2020

(1) Mainly SUEZ Consulting

Essentials from new segment structure

Revenue split by divisions

		FY 2018	FY 2019	in %	Variation
	In €m	of total	gross	organic
	WATER	6,838	7,058	39.2%	+3.2%	+2.9%
	Europe	3,798	3,792	21.1%	(0.1)%	+0.9%
	AMECA	803	863	4.8%	+7.5%	+5.1%
	Asia Pacific	487	572	3.2%	+17.5%	+15.6%
	Americas	1,750	1,830	10.2%	+4.6%	+2.7%
	RECYCLING & RECOVERY	7,288	7,454	41.4%	+2.3%	+2.9%
	Europe	5,998	6,239	34.6%	+4.0%	+4.7%
	AMECA	110	97	0.5%	(12.0)%	(14.4)%
	Asia Pacific	1,152	1,077	6.0%	(6.5)%	(5.8)%
	Americas	28	42	0.2%	+49.3%	+43.9%
	ENVIRONMENTAL TECH & SOLUTIONS	3,285	3,596	20.0%	+9.5%	+7.0%
	Europe	1,359	1,412	7.8%	+3.9%	+3.4%
	AMECA	123	152	0.8%	+23.7%	+22.6%
	Asia Pacific	442	550	3.1%	+24.6%	+20.4%
	Americas	1,361	1,481	8.2%	+8.8%	+4.8%
	Intercos	(80)	(93)	(0.5)%	+16.1%	+16.1%
	TOTAL	17,331	18,015	100.0%	+3.9%	+3.6%

34 I FY19 Results | 26th February 2020

Where are our main Municipal Water businesses today

EUROPE

AMECA

ASIA PACIFIC

AMERICAS

Regions/

Czech

Africa

Middle

Central

Business

France

Spain

Italy

Asia

Australia

India

USA

Canada

LATAM

Rep.

Near East

East

Asia

Areas

Drinking Water

✓

✓

✓

✓

✓

✓

✓

✓

✓

✓

✓

✓

Wastewater

✓

✓

✓

✓

✓

✓

✓

✓

✓

✓

✓

✓

Desalination

✓

✓

✓

✓

✓

✓

Reuse

✓

✓

✓

✓

✓

✓

✓

✓

✓

Sludge

✓

✓

✓

✓

✓

✓

35 FY19 Results | 26th February 2020

Where are our main R&R businesses today

EUROPE

AMECA

ASIA PACIFIC

AMERICAS

Regions

Africa

/

Spain,

BeNe

Czech

Middle

Central

France

UK

Sweden

Poland Serbia

Near

Asia Australia India

USA Canada LATAM

Busines

Italy

DeLux

Rep.

East

Asia

s Areas

East

Collection

✓

✓

✓

✓

✓

✓

✓

✓

✓

✓

Mechanical

✓

✓

✓

✓

✓

✓

✓

✓

✓

✓

sorting

Recycling

✓

✓

✓

✓

✓

✓

✓

✓

✓

✓

Landfill

✓

✓

✓

✓

✓

✓

✓

✓

Energy from

✓

✓

✓

✓

✓

✓

✓

waste

Organic

✓

✓

✓

✓

✓

✓

Plastics (collection

✓

✓

✓

✓

✓

and or recycling)

36 I FY19 Results | 26th February 2020

Where are our main Environmental Tech & Solutions businesses today

EUROPE

AMECA

ASIA PACIFIC

AMERICAS

Regions/

Spain,

BeNe

Czech

Rest of

Africa

Middle

Central

Busines

France

Italy

UK

DeLux

Sweden

Rep.

Poland

Europe

Near

East

Asia

Asia

Australia

India

USA

Canada

LATAM

s Areas

East

Hazardous waste

✓

✓

✓

✓

✓

✓

✓

✓

✓

✓

✓

(incl. remediation)

WTS

✓

✓

✓

✓

✓

✓

✓

✓

✓

✓

✓

✓

✓

✓

✓

✓

✓

SES

✓

✓

✓

✓

✓

✓

✓

✓

✓

✓

✓

✓

✓

✓

37 FY19 Results | 26th February 2020

Appendix 4

2021 recurring EPS guidance

38 I FY19 Results | 26th February 2020

€0.80 recurring EPS targeted in 2021

+€0.24

65%-75%	25%-35%
Above EBIT	Below EBIT

€0.80

	€0.56	+	+	-	+
		Organic	Performance plan	Disposals	Tax/
		growth			Financial

2018	2021
recurring EPS	recurring EPS

Recurring EPS: [Net Income group share - (hybrid coupon + all one-off costs cash and non-cash +/- capital gain/losses on disposals) x (1 - applicable tax rate)] / number of shares.

39 | FY19 Results | 26th February 2020

Appendix 5

P&L

40 I FY19 Results | 26th February 2020

Revenue by division

		FY 2018	FY 2019	in %	Variation
	In €m	of total	gross	organic
	WATER EUROPE	4,629	4,638	25.7%	+0.2%	+1.4%
	France	2,195	2,150	11.9%	(2.1)%	(0.2)%
	Spain	1,521	1,547	8.6%	+1.7%	+1.7%
	Latin America	913	941	5.2%	+3.1%	+4.5%
	RECYCLING & RECOVERY EUROPE	6,206	6,471	35.9%	+4.3%	+4.9%
	France	3,157	3,165	17.6%	+0.3%	+1.6%
	Benelux & Germany	1,484	1,626	9.0%	+9.5%	+9.3%
	UK & Sweden	1,115	1,180	6.5%	+5.8%	+5.7%
	Industrial Waste Specialties (IWS)	450	501	2.8%	+11.4%	+11.4%
	INTERNATIONAL	3,990	4,195	23.3%	+5.1%	+2.9%
	Australia	1,085	1,008	5.6%	(7.1)%	(5.2)%
	Africa, Middle East & India	1,029	1,105	6.1%	+7.4%	+5.0%
	North America	917	998	5.5%	+8.9%	+3.5%
	Asia	463	548	3.0%	+18.4%	+11.8%
	Italy, Central & Eastern Europe	498	536	3.0%	+7.7%	+7.1%
	WATER TECHNOLOGIES & SOLUTIONS	2,396	2,595	14.4%	+8.3%	+5.6%
	OTHER(1)	110	115	0.6%	+4.8%	+4.8%
	TOTAL	17,331	18,015	100.0%	+3.9%	+3.6%

41 I FY19 Results | 26th February 2020

(1) Mainly SUEZ Consulting

Income from associates by division

In €m	FY 2018	FY 2019	Variation
Water Europe	23	21	(8.7)%
Recycling & Recovery Europe	9	13	+56.1%
International	158	163	+3.0%
o/w Acea (23.33% stake)	56	63	+13.5%
Water Technologies & Solutions	3	1	(63.9)%
TOTAL	193	198	2.8%

42 I FY19 Results | 26th February 2020

Revenue, EBITDA and EBIT by division

In €m	FY 2018
Total revenue	17,331
Water Europe	4,629
Recycling & Recovery Europe	6,206
International	3,990
Water Technologies & Solutions	2,396
Others	110
Total EBITDA	2,768
Water Europe	1,136
Recycling & Recovery Europe	684
International	816
Water Technologies & Solutions	250
Others	(118)
Total EBIT	1,335
Water Europe	503
Recycling & Recovery Europe	287
International	563
Water Technologies & Solutions	128
Others	(145)

FY 2019

18,015

4,638

6,471

4,195

2,595

115

3,220

1,152

880

979

278

(69)

1,408

494

308

617

134

(145)

Variation
gross(1)	organic	scope	FX
3.9%	3.6%	(0.3)%	0.6%
0.2%	1.4%	(0.6)%	(0.5)%
4.3%	4.9%	(0.6)%	(0.1)%
5.1%	2.9%	0.4%	1.8%
8.3%	5.6%	0.1%	2.6%
4.8%	4.8%	-	-
4.5%	3.9%	0.3%	0.2%
(2.9)%	(1.4)%	(0.1)%	(1.3)%
6.7%	6.2%	0.6%	(0.0)%
12.0%	9.3%	0.6%	2.0%
0.6%	(2.2)%	1.0%	1.9%
(9.6)%	(9.6)%	-	0.0%
4.4%	4.3%	0.3%	(0.1)%
(2.1)%	(0.4)%	0.3%	(2.1)%
5.4%	7.0%	(1.5)%	(0.1)%
8.8%	6.4%	0.6%	1.8%
4.7%	3.0%	2.4%	(0.7)%
0.8%	0.8%	-	0.0%

43 I FY19 Results | 26th February 2020

(1) At constant reporting standards

FX impact on Revenue, EBITDA, EBIT and Net Debt

1 EUR =USD GBP AUD CLP

FY 2019 average rate			1.12	0.88	1.61	786
FY 2018 average rate			1.18	0.88	1.58	757
Closing rate at 31/12/2019			1.12	0.85	1.60	842
Closing rate at 31/12/2018			1.15	0.89	1.62	793
€m	FY 2019	FX		o/w an impact from:
impact	USD	GBP	AUD	CLP
Revenue	18,015	106	111	8	(21)	(27)
EBITDA	3,220	6	20	1	(4)	(15)
EBIT	1,408	(1)	10	1	(2)	(10)
Net Financial Debt	10,151	(9)	18	22	8	(68)

44 I FY19 Results | 26th February 2020

From EBITDA to EBIT by division

FY 2019, in €m	Water	R&R	International	WT&S	Other	FY 2019
Europe	Europe
EBITDA	1,152	881	979	278	(69)	3,220
Depreciation	(478)	(517)	(323)	(160)	(54)	(1,533)
Net provisions & impairments	(7)	27	(21)	16	(15)	1
Net concession renewal expenses	(169)	(79)	(16)	-	-	(263)
Employees compensation plans in shares(1)	(5)	(4)	(2)	-	(7)	(18)
EBIT	494	308	617	134	(145)	1,408
	Water	R&R
FY 2018, in €m	International	WT&S	Other	FY 2018
Europe	Europe
EBITDA	1,136	684	816	250	(118)	2,768
Depreciation	(443)	(368)	(252)	(128)	(19)	(1,210)
Net provisions & impairments	(20)	45	17	6	(5)	43
Net concession renewal expenses	(170)	(74)	(19)	-	-	(262)
Employees compensation plans in shares(1)	-	-	-	-	(3)	(3)
EBIT	503	287	562	128	(145)	1,335

(1) Free shares, ESOP

45 I FY19 Results | 26th February 2020

From EBIT to Net Income

In €m	FY 2018	FY 2019	Variation
EBIT	1,335	1,408	+5.4%
Restructuring costs	(88)	(132)	+51.1%
Impairments (incl. goodwill amortization)	(26)	(65)	+152.9%
Capital gains and change in scope	54	35	(35.2)%
Argentina settlement	-	215	n.a.
IFRIC 21 impact and others (MtM)	(1)	3	n.a.
Income from operating activities	1,275	1,463	+14.7%
Financial expense	(465)	(514)	+10.4%
Income tax	(244)	(340)	+39.4%
Net Income	566	609	+7.7%
Non-controlling interests	(231)	(257)	+11.5%
Net Income (Group Share)	335	352	+5.0%

46 I FY19 Results | 26th February 2020

Earnings per share

In €m	FY 2018	FY 2019
Net Income Group Share	335	352
- All one-offs costs cash and non-cash	114	193
- Capital gain/losses on disposals	(54)	(35)
- Argentina settlement	-	(215)
- Hybrid coupon	(45)	(52)
- Non recurring financial result	-	33
Adjustments before tax	15	(76)
Applicable tax rate	(34.43)%	(34.43)%
Adjustments after tax	10	(50)
Non recurring income tax	-	48
Recurring Net Income Group Share (new definition)	345	350

In Millions

Weighted average number of outstanding shares	618.0
Earnings per share (in euros)
Earnings per share	0.47
Recurring Earnings per share (new definition)	0.56

618.0

0.48

0.57

47 I FY19 Results | 26th February 2020

Appendix 6

Cash Flow Statement

48 I FY19 Results | 26th February 2020

From EBITDA to Operating Cash Flow

In €m	FY 2018	FY 2019	variation
EBITDA	2,768	3,220	+16.3%
Net disbursements under concession contracts	(262)	(263)	+0.3%
Depreciation of current assets	(3)	7	n.a.
Restructuring	(145)	(134)	(7.5)%
Dividends from associates	145	132	(8.8)%
Income of core associates	(193)	(198)	+2.8%
Argentina claim settlement	-	223	n.a.
Provision for employee benefit & others	(33)	(131)	+290.7%
OPERATING CASH FLOW	2,277	2,857	+25.5%

49 I FY19 Results | 26th February 2020

Investments by nature and division

	in €m	Maintenance	Development	Financial	Disposal	Total Net
	capex	capex	investments	Investments
	Water Europe	(195)	(237)	2	41	(390)
	R&R Europe	(193)	(179)	(13)	58	(328)
	International	(202)	(293)	(67)	539	(23)
	WTS	(51)	(45)	(8)	11	(93)
	Other	(22)	-	(8)	3	(27)
	TOTAL FY 2019	(663)	(755)	(94)	651	(860)
	in €m	Maintenance	Development	Financial	Disposal	Total Net
	capex	capex	investments	Investments
	Water Europe	(186)	(245)	(11)	115	(327)
	R&R Europe	(186)	(194)	(13)	117	(276)
	International	(186)	(248)	(63)	10	(487)
	WTS	(47)	(43)	(66)	7	(149)
	Other	(2)	(6)	(5)	(4)	(17)
	TOTAL FY 2018	(607)	(736)	(159)	245	(1,257)

50 I FY19 Results | 26th February 2020

Appendix 7

Balance sheet

51 I FY19 Results | 26th February 2020

Financial debt and liquidity position

Liquidity position

		5,257											Gross debt(3) maturity profile
															In €m
Undrawn credit lines(1)												IFRS 16
2,658
								126	408(4)				Financial gross debt	2,790
					239
				303	201	165
Cash(2)	2,599								1,116					925
				716	1,014	787	868	1,266	1,114	71	391		562	806
	12M 2019	2020	2021	2022	2023	2024	2025	2026	2027	2028	2029	2030	>2030

1. Excluding €678m of commercial paper
2. Cash net of mark-to-market derivatives
3. Gross debt net of bank overdraft and commercial paper
4. From 2025

52 I FY19 Results | 26th February 2020

Financial debt

Net debt by currency(1)

Net debt by rate type

GBP 6%	Others 1%	6%	3%
HKD 2%		12%	11%	Floating
CLP 12%		14%
	EUR			Inflation linked
	82%	72%	Fixed - IFRS 16
	52%
USD				Fixed
27%		FY 2018	FY 2019
Gross debt by type(1)		Gross debt by average maturity, in years(1)
	Commercial Paper 5%

Bond 75%

Other 3%

Bank 16%

6.5	6.9
	FY 2018	FY 2019

53 I FY19 Results | 26th February 2020 (1) Excluding contribution from IFRS 16

Capital Employed

as of December 31st

In €m	FY 2018	FY 2019
Net goodwill	5,224	5,322
Tangible and intangible assets, net	13,757	13,727
Net financial assets	265	254
Investment in associates	1,982	2,024
Provisions	(1,597)	(1,478)
Rights of use	-	1,406
Others	(984)	(889)
CAPITAL EMPLOYED	18,645	20,366

In €m	FY 2018	FY 2019
Water Europe	5,546	5,460
R&R Europe	3,538	4,448
International	6,035	6,787
WT&S	3,459	3,523
Others	67	149
CAPITAL EMPLOYED	18,645	20,366

54 I FY19 Results | 26th February 2020

Appendix 8

Activity of divisions

55 I FY19 Results | 26th February 2020

Non financial KPIs by division

 Water Europe
		∆ 19/18 (1)
Mm 3 sold	FY 2019
France	612	+1.0%
Spain	666	+1.9%
Chile	599	+0.6%

 R&R Europe

	WTS
				(2)
	in €m	FY 2019	∆ 19/18
	Engineered Systems (ES)	1,828	+16.2%
	Chemical & Monitoring Solutions (CMS)	1,028	+3.6%
	Total orders	2,856	+11.2%
	International

Mt	FY 2019	∆ 19/18
Elimination	7.8	(2.0)%
Recovery	18.5	+3.1%
Energy from Waste	9.3	+0.2%
Sorting & Recycling	9.2	+6.2%
Total processed volumes	26.3	+1.5%

Water DB backlog - €bn

o/w International

China - Mm3 sold

North America - Mm3 sold

Morocco - Mm3 sold

Waste treated - Mt

FY 2019	∆ 19/18
1.1	(0.1)%	(3)
0.6	(2.5)%	(3)
841	+2.6%
273	(1.6)%
158	+2.9%
12.0	(5.9)%

(1) At iso contracts

56 I FY19 Results | 26th February 2020 (2) Organic growth

(3) Variation vs December 31st, 2018

Water Europe

Water tariffs in Europe

GLOBAL AVERAGE PRICE

1st January 2017, at constant forex, €/m3

6.61

5.21

4.56	4.47	4.41	4.25		Average 4.01
			3.56	3.39
				2.24

1.43

Denmark

Germany Netherlands

Finland

UK

Belgium

France

Sweden

Spain

Italy

(1)Source: FP2E - NUS Consulting

57 I FY19 Results | 26th February 2020

Recycling & Recovery Europe

Municipal waste treatment mix in Europe

ANNUAL WASTE VOLUMES PER CAPITA & SPLIT OF TREATMENT MODE

			16%		17%						13%														8%				7%		8%	4%
	17%				20%		18%			29%				22%		19%		17%		23%			18%				15%
														33%						26%				27%		29%		1%
			30%								29%									27%					18%
	30%			31%												25%
				35%									28%
															32%
								27%
								50%															13%		17%
											26%						24%				13%		80%
														35%
	28%																	37%
																				21%				51%
			53%		51%		43%				57%		43%		39%		44%								42%			49%		49%
	23%							31%												24%
														21%
												2%					17%
						1%		1%		1%		1%
			1%		1%							6%

Composting		Recycling		Incineration		Landfilling

(1)Source: Eurostat (2018 data , ex. UK and Greece : 2017 data)

58 I FY19 Results | 26th February 2020

Recycling & Recovery Europe

Commodity prices evolution

BDSV Sorte 1 (ferrous metal, recycled) - in €/ton		1.05 (corrugated board) - in €/ton	150
				131	121
				114
290
270
230	268	240		100
202	93			78
235
	229		82		78		64
					68
		170					57	50
134								30
	Brent - in €/baril

Average FY 2019

85

Average FY 2018

78		71
55	52	65 58	59
61
	44	55
41	47
	29

59 I FY19 Results | 26th February 2020

Recycling & Recovery Europe

Commodity prices evolution

PET (Virgin material) - in €/ton									PEBD - in €/ton
											1,740
1317	1375
											1,600
	1224									1,525		1,480
1070	1086									1,438	1,375
1080	964									1439
1066									1,380
908		940										1303	1,255
823		880									1,173
Electricity - in €/Mwh - CAL 20
Average FY 2019							58	56		55
							54
Average FY 2018										52 51
									50
				45	44				46
		4341						45	49	45
								48
39	39							44
	39		39	41
33
	36	35

28

28

CAL20 FR

CAL20 DE

CAL20 NL

60 I FY19 Results | 26th February 2020

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.

61 FY19 Results | 26th February 2020

CONTACTS

FINANCIAL COMMUNICATION

Mathilde Rodié

E-mail: [e-mail]

Cécile Combeau

E-mail: [e-mail]

Baptiste Fournier

E-mail: [e-mail]

E-mail: [e-mail]

Tel: + 33 (0)1 58 81 24 05

SUEZ

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