Suez : Icon News Results for the first half of 2021

Paris, 28 July 2021 - 5:45pm

RESULTS FOR THE FIRST HALF OF 2021: DRIVEN BY THE SUCCESS OF THE SUEZ 2030 PLAN,

SUEZ IS SHOWING A VERY SHARP UPSWING IN PERFORMANCE

THE GROUP CONFIRMS ALL OF ITS OBJECTIVES

• The results fully support the objectives set for 2021:

o Revenue: €8,711 million, with organic growth of +11.0% vs. H1 2020 and +5.7% vs. H1 2019

• 1. EBITDA: €1,601 million, with organic growth of +38.1% vs. H1 2020 and +11.2% vs H1 2019
  1. EBIT: €798 million, +€722 million vs H1 2020, +€153 million vs H1 2019
  1. Recurring EPS: €0.48
  1. Recurring free cash flow: €484 million
• Robust operational execution:
• 1. Continued strong sales momentum, with €1.8 billion in new contracts in the first half both in France and internationally

1. Municipal Water activities still resilient, strong rebound in Recycling & Recovery (particularly in France) and Environmental Tech & Solutions (especially SES and WTS)

• 1. Operating profitability strengthened by accelerated growth and by the €148 million in performance savings over the period
• Net debt down sharply to €8,625 million, supported by solid cash generation and the impact of more than €1 billion from disposals
• 1. Debt ratio reduced to 2.7 times EBITDA over a rolling 12-month period
• European taxonomy: 74% of consolidated 2020 revenues, and 90% identified by European regulations as contributing to the protection of the environment and the fight against global warming.
• Both the work to create the new SUEZ and the work in relation to Veolia's takeover bid continue to progress toward the achievement of the end-2021 target date for completing the transaction.

The SUEZ Board of Directors examined and authorized the publication of the condensed consolidated financial statements at 30 June 2021 at its meeting on 28 July 2021. They have been subject to a usual limited review by the statutory auditors.

Bertrand Camus, CEO of SUEZ, said:

"I am extremely proud of the results of our SUEZ 2030 plan, initiated only two years ago. In an environment made more complex by the pandemic and by Veolia's takeover bid, SUEZ's transformation has quickly borne fruit and the results have accelerated in the first half of 2021. Our performance is improving very strongly on all levels, showing a clear acceleration compared to 2019 and a strong rebound relative to 2020. The Group therefore confirms all of its objectives for 2021.

These excellent results were only possible as a result of the dedication and determination of our teams, and I thank them for their unwavering commitment.

SUEZPage 1 of 14

Head office: Tour CB21 − 16, Place de l'Iris, 92040 Paris La Défense Cedex, France − Tel.: [phone] − www.suez.com

Limited company with capital of 2,513,450,316 euros - SIREN (French business administration number): 433 466 570 RCS NANTERRE - VAT No.: FR76433 466 570

In addition to development and performance objectives, my roadmap is focusing on the implementation of the agreement with Veolia, with a particular emphasis on human resources.

This agreement will give rise to a new SUEZ: one that is both agile and robust, with a strong French base and significant resources to fuel international growth. Driven by our culture of innovation, our Group will continue to contribute to the preservation and restoration of the environment."

SUEZPage 2 of 14

Head office: Tour CB21 − 16, Place de l'Iris, 92040 Paris La Défense Cedex, France − Tel.: [phone] − www.suez.com

Limited company with capital of 2,513,450,316 euros - SIREN (French business administration number): 433 466 570 RCS NANTERRE - VAT No.: FR76433 466 570

KEY FIGURES FOR H1 2021

In million euros	30 June	30 June	30 June	Gross	Change	Organic	Organic
change	excl. FX	change	change
2019	2020	2021
	vs 2020	vs 2020	vs 2020	vs 2019
Revenues	8,656	8,167	8,711	+6.7%	+7.6%	+11.0%	+5.7%
EBITDA	1,521	1,196	1,601	+33.8%	+34.2%	+38.1%	+11.2%
EBITDA / Revenue	17.6%	14.6%	18.4%
EBIT	645	76	798	x10.5	x9.4	x9.0	+24.2%
EBIT / Revenue	7.4%	0.9%	9.2%
Net income, Group	212	-538	298
share
Recurring net	102	-368	304
income, Group share
Recurring earnings	€0.17	-€0.59	€0.48
per share

With regard to EBITDA and EBIT, it should be noted that in the first half of 2020 the Group had recognized -€61 million and -€281 million in costs and provisions, respectively, related to the economic situation, including the pandemic.

in million euros	30 June	30 June	30 June	Gross
change
2019	2020	2021
	vs 2020
Recurring free cash flow	-277	-346	484	+€830m
CapEx	-752	-626	-566	-9.5%
Working capital requirements1	-396	-4	-141	-€137m
Net debt	10,614	10,749	8,625	-19.8%
Net debt / EBITDA	3.4x	3.7x	2.7x	-1.0x

1 Includes the impact at 30 June 2021 of the decision to terminate the securitization program for -€367 million

SUEZPage 3 of 14

Head office: Tour CB21 − 16, Place de l'Iris, 92040 Paris La Défense Cedex, France − Tel.: [phone] − www.suez.com

Limited company with capital of 2,513,450,316 euros - SIREN (French business administration number): 433 466 570 RCS NANTERRE - VAT No.: FR76433 466 570

PERFORMANCE BY SEGMENT

WATER

in million euros	30 June	30 June	30 June	Gross	Organic	Organic
change	change	change
2019	2020	2021
	vs 2020	vs 2020	vs 2019
Revenue - H1	3,374	3,221	3,284	+2.0%	+4.1%	+0.7%
EBITDA - H1	853	682	814	+19.4%	+21.5%	+0.9%
EBIT - H1	432	108	411	+281.2%	+280.1%	+1.4%
Revenue - Q2	1,751	1,612	1,703	+5.7%	+7.8%	+0.5%

• The WATER segment recorded revenues of €3,284 +4.1% (€+130 million) compared to H1 2020. Over the first quarter, then by +7.8% in the second quarter.

million at end-June 2021, with organic growth of period, revenues grew organically by +0.3% in the

• • Europe: revenues grew organically by +4.8% (+€85 million) compared to H1 2020, despite the restrictive measures linked to the pandemic which adversely impacted tourism in the first half of the year. Water sales volumes increased by +0.5% in France and +2.5% in Spain. Prices are up by +1.0% on average in France, while holding steady in Spain.
  • Americas: revenues grew organically by +2.3% (+€19 million) compared to H1 2020. In the United
    States, water sales volumes rose sharply by +3.3%: exceptional Q2 weather conditions in some areas of the country led to unprecedented increases in water consumption. In Chile, the ongoing pandemic-related restrictions affected the volumes of water sold, down by -1.0% over the first half. Prices benefited from positive reindexations in the United States and in Chile in the second quarter and are up +3.0% and +2.3% respectively.
  • Asia-Pacific: revenues grew organically by +6.3% (+€12 million) compared to H1 2020. In particular, this performance is a reflection of the solid contribution from water infrastructure activities over the first half of the year and higher water sales volumes in mainland China, while Macao was affected by lower tourist activity during the half-year due to pandemic-related restrictions.
  • AMECAI: revenues grew organically by +3.2% (+€15 million) compared to H1 2020. The region benefited from the recovery in business activity and the increase in water sales volumes compared to the first half of 2020 but continuesto experience some operational disruptions due to the pandemic, particularly in India.
• EBIT for the segment was €411 million, against €108 million in H1 2020. This sharp increase is explained in particular by the -€176 million drop in costs and provisions related to the economic situation, including the pandemic, recorded in 2020.
  Compared to H1 2019, EBIT showed organic growth of +1.4% (+€6 million).

SUEZPage 4 of 14

Head office: Tour CB21 − 16, Place de l'Iris, 92040 Paris La Défense Cedex, France − Tel.: [phone] − www.suez.com

Limited company with capital of 2,513,450,316 euros - SIREN (French business administration number): 433 466 570 RCS NANTERRE - VAT No.: FR76433 466 570

RECYCLING AND RECOVERY

in million euros	30 June	30 June	30 June	Gross	Organic	Organic
change	change	change
2019	2020	2021
	vs 2020	vs 2020	vs 2019
Revenue - H1	3,741	3,452	3,913	+13.4%	+19.9%	+11.5%
EBITDA - H1	521	425	592	+39.0%	+46.2%	+20.3%
EBIT - H1	210	70	344	+389.2%	+345.4%	+50.4%
Revenue - Q2	1,878	1,613	1,920	+19.0%	+29.2%	+12.1%

• RECYCLING & RECOVERY recorded revenues of €3,913 million at 30 June 2021, with organic growth of +19.9% (+€687 million) compared to H1 2020. Over the period, revenues grew organically by +11.8% in the first quarter, then by +29.2% in the second quarter. The volume of waste processed rose by +4.6% over the half-year.
• • Europe: revenues grew organically by +22.8% (+€651 million) compared to H1 2020. In France and continental Europe, performance is driven by solid pricing dynamics, an increase in the volume of waste processed, and continuing buoyant prices for recycled raw materials. In the United Kingdom, optimization of the availability and saturation of processing capacities supported performance during the first half.
  • Asia-Pacific: revenues grew organically by +5.3% (+€28 million) compared to H1 2020, supported in particular by the increase in waste volumes processed in the region compared to H1 2020 and a strong level of variation order in Hong-Kong landfills.
  • AMECAI and Americas: revenues grew organically by +1.8% (+€1 million) and by +32.8% (+€8 million), respectively, compared to H1 2020.
• EBIT for the segment was €344 million, against €70 million in the first half of 2020, when EBIT was affected by -€42 million in costs and provisions related to the economic situation, including the pandemic. Compared to H1 2019, EBIT grew organically by +50.4% (+€106 million).

ENVIRONMENTAL TECH & SOLUTIONS

in million euros	30 June	30 June	30 June	Gross	Organic	Organic
change	change	change
2019	2020	2021
	vs 2020	vs 2020	vs 2019
Revenue - H1	1,708	1,643	1,668	+1.6%	+5.5%	+1.8%
EBITDA - H1	186	139	229	+64.5%	+69.4%	+27.3%
EBIT - H1	81	-13	117	N/A	N/A	+49.8%
Revenue - Q2	909	816	863	+5.8%	+8.8%	-0.8%

SUEZPage 5 of 14

Head office: Tour CB21 − 16, Place de l'Iris, 92040 Paris La Défense Cedex, France − Tel.: [phone] − www.suez.com

Limited company with capital of 2,513,450,316 euros - SIREN (French business administration number): 433 466 570 RCS NANTERRE - VAT No.: FR76433 466 570