Suez : Icon News Results of SUEZ 2030 strategic plan ahead of the objectives, confirming the Group’s unique value creation potential, to benefit all stakeholders

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 €0.75 to €0.80 in 2021 and up to €1.0 in 2022
• Ordinary dividend at €0.65 paid in 2021 and growing to €0.70 in 2022
• Exceptional dividend or share buyback of at least €1bn 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 €1.2bn in annual savings by 2023, of which €900m to be achieved by 2022.
• Finally, SUEZ reaffirms its commitment to expanding employee shareholding over the next two years.

GROWTH PERSPECTIVES IN 2021 AND 20221

SUEZ is able to provide visibility on its financial trajectory for 20211 and 20221 as follows:

• Revenues seen above €16bn in 2021 and above €17bn in 2022;
• EBIT targeted between €1.35 and €1.50bn in 2021 and at around €1.7bn in 2022
• Recurring EPS targeted at between €0.75 and €0.80 in 2021 and €0.90 and €1.0 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 €4.5bn 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

SUEZ

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

Limited Liability Company with a share capital of €2,513,450,316 - Siren (French business administration number) 433 466 570 RCS Nanterre - VAT FR 76433 466 570

1. 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 €1.5bn;

• 1. Continued targeted capex to boost organic growth (€3bn);
• Sustained Group's deleveraging for circa €1bn 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 €2bn by the end of 2022, of which:
• 1. Ordinary dividends of €0.65 per share payable in 2021 increasing to €0.70 per share in 2022;
  1. A potential addition of at least €1bn extraordinary distribution in the course of 2021;
• Additionally, €1bn 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 €500m 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."

SUEZ

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

Limited Liability Company with a share capital of €2,513,450,316 - Siren (French business administration number) 433 466 570 RCS Nanterre - VAT FR 76433 466 570

CONTACTS
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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 €18.0 billion in 2019.

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SUEZ

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

Limited Liability Company with a share capital of €2,513,450,316 - Siren (French business administration number) 433 466 570 RCS Nanterre - VAT FR 76433 466 570