SUEZ company profile

(AOF) – Key points

– World number two in environmental services, created in 1880;

– € 17.2 billion in turnover, generated mainly in Europe and America, generated by 3 divisions: water (39%), recycling and waste recovery (41%), then solutions and renewable energies;

– “Establish a sustainable environment now” business model based on long-term trades (and contracts) ensuring good visibility and high barrier to entry due to capital intensity, defined in the Shaping 2030 plan: ambition to be a world leader / use of contract selectivity, portfolio rotation, organizational simplicity and employee commitment to clients;

– Capital being remodeled: after its takeover bid launched at the end of July 2021, Veolia will sell to a consortium of shareholders a new Suez refocused on water and waste in France as well as international assets (Africa, Central Asia, China, India , Australia, Czech Republic); the capital will then be controlled by a consortium comprising GIP and Meridian for 40%, the Caisse des Dépôts for 20% and the employees for at least 3% / Bertrand Camus, managing director, will be replaced by a person outside the company;

– Debt reduced to € 8.8 billion at the end of September 2021 with a leverage effect of 2.7.

Challenges

– Shaping 30 strategy: by 2023: cost savings of € 1 billion and a 50% increase in R&D and digital investments;

– Innovation strategy articulated between waste (recycling and reuse) and water (alternative resources, treatment and distribution), with the ambition to generate 30% of revenues from technologies and solutions based on data: global network 17 research centers, including the BioresourceLab / investments in innovative companies via Suez Ventures, and participations in the start-up funds Démeter 3 and 6 and Paris Green funds / scientific and industrial partnerships, presence in collaborative platforms;

– Environmental strategy linked to the group’s activity, 74% of revenues contributing to environmental protection: 45% reduction in CO2 emissions, 100% sustainable solutions and 20 Mt of CO2 avoided per year for customers / storage carbon, in partnership with Airex Energie and Fermentalg / production of green hydrogen with Sipperec from urban waste…;

– In France, revival of investments to fight against water leaks (150-year-old network).

Challenges

– Implementation of the “new Suez” with a turnover of around € 7 billion;

– At the end of September 2021, an increase of 9.8% in sales and 29% in operating income;

– Target 2021, raised, with a turnover of over € 16 billion and an operating profit of over € 1.5 billion and a net debt of € 8.8 billion;

– Dividend increase of € 0.65 and exceptional distribution of € 1 billion.