Seche Environnement Sa · EURONEXT:SCHP
Seche Environnement Sa — H1 2011 Earnings Presentation
38 slides from Seche Environnement Sa's earnings presentation, Sep 6, 2011
Slide 1: Consolidated results at June 30, 2011
Consolidated results at June 30, 2011 - Paris September 6, 2011 S é ché ch é Environnement Consolidated results at June 30, 2011 Meeting on September 6, 2011 1
Slide 2: Growth and profitability, financial stability confirmed
Consolidated results at June 30, 2011 - Paris September 6, 2011 Growth and profitability Financial stability confirmed Robust organic growth Revenue +8.6% Solid operating margins maintained COI to 14% of rev. at a high level Sharp increase in net income of cons.ted companies ICC +32% Net income up m
Slide 3: A Group closely linked to developments in Sustainable Development markets
Consolidated results at June 30, 2011 - Paris September 6, 2011 A Group closely linked to developments in Sustainable Development markets Facilities that are constantly adapting: A strategy focused on expanding the offer... …to satisfy the latest needs of our industrial clients and local governments
Slide 4: Consolidated accounts at June 30, 2011
Consolidated results at June 30, 2011 - Paris September 6, 2011 Consolidated accounts at June 30, 2011 4
Slide 5: Operating margins performed well, sharp increase in net income
Consolidated results at June 30, 2011 - Paris September 6, 2011 Operating margins performed well Sharp increase in net income at June 30 2010 2011 Change Consolidated data (under IFRS) EURm % rev. EURm % rev. Revenue 193.0 100% 209.6 100% +8.6% EBITDA(*) 47.9 24.8% 49.7 23.7% +3.7% COI 29.8 15.4% 29
Slide 6: Activity continued at solid level in the 1st half of 2011
Consolidated results at June 30, 2011 - Paris September 6, 2011 Activity continued at solid level in the 1st half of 2011 in EUR m in EUR m Solid organic growth: revenue +8.6% 220 to EUR 209.6m 209.6 200 On the core Hazardous Waste and Non- 193.0 Hazardous Waste businesses 180 178.2 In France and ab
Slide 7: Good level of organic growth in France and abroad
Consolidated results at June 30, 2011 - Paris September 6, 2011 Good level of organic growth in France and abroad France: revenue +8.5% to EUR 197.9m in EURm in EURm (vs. EUR 182.4m) +8.6% Solid growth +8.6% 220 209.6 Industrial clients: +10.4% 200 11.7 +10.4% Good performance from business lines 19
Slide 8: Mixed trends by division
Consolidated results at June 30, 2011 - Paris September 6, 2011 Mixed trends by division in EURm Hazardous Waste (HW): revenue +1.5% in EURm +8.6% +8.6% to EUR 136.2m vs. EUR 134.1m) 209.6 193.0 Market solidity confirmed +24.7% +24.7% Industrial output back to normal compared with a strong 2010 base
Slide 9: Limited impact of the change in accounting presentation
Consolidated results at June 30, 2011 - Paris September 6, 2011 Limited impact of the change in accounting presentation Consolidated data (under IFRS) at June 30 2010 2011 12/31/2010 in EURm Reported Restated Reported Reported Restated Revenue 193.0 193.0 209.6 402.1 402.1 EBITDA 47.4 47.9 49.7 101.
Slide 10: Solid operating margins
Consolidated results at June 30, 2011 - Paris September 6, 2011 Solid operating margins Consolidated data (under IFRS) at June 30 2010 (restated) 2011 Consolidated France International Consolidated France International Revenue 193.0 182.4 10.6 209.6 197.9 11.7 EBITDA 47.9 47.0 0.9 49.7 48.6 1.1 i.e.
Slide 11: EBITDA growth affected by exogenous items
Consolidated results at June 30, 2011 - Paris September 6, 2011 EBITDA growth affected by exogenous items Consolidated Consolidateddata dataininEURm EURm Activity mix effects Organic (1.3) +3.4 (1.6) 49.7 growth 49.7 Energy 47.9 47.9 +1.3 Other non- current(1) EBITDA EBITDA 2010 2011 at 06/30 (1) of
Slide 12: Increase in current operating income
Consolidated results at June 30, 2011 - Paris September 6, 2011 Increase in current operating income Consolidated data (under IFRS) at June 30 2010 (restated) 2011 Change EURm % rev. EURm % rev. Revenue 193.0 100% 209.6 100% +8.6% EBITDA 47.9 24.8% 49.7 23.7% +3.7% COI 29.8 15.4% 29.0 13.8% -2.7% Op
Slide 13: Income from consolidated companies to 11.3% of revenue
Consolidated results at June 30, 2011 - Paris September 6, 2011 Income from consolidated companies to 11.3% of revenue Consolidated data in EURm (under IFRS) at June 30 2010 2011 Cost of net debt 1.2 3.8 Other financial income and expenses 0.3 1.1 Financial income 1.5 4.9 Corporate tax (8.2) (10.0)
Slide 14: Net income up markedly: +82%
Consolidated results at June 30, 2011 - Paris September 6, 2011 Net income up markedly: +82% Consolidated data in EURm (under IFRS) at June 30 2010 2011 Net income from consolidated companies 17.8 23.6 Share of companies accounted for by the equity method (9.4) (7.8) Minority interests 0.3 0.1 Conso
Slide 15: Solid management of maintenance investments, development investments
Consolidated results at June 30, 2011 - Paris September 6, 2011 Solid management of maintenance investments Development investments Booked Bookedcapex capex Booked Bookedcapex capex 22.4 EURm 22.4 EURm 13.5 13.5 10.8 10.8 at 06/30 atatJune June30, 30,2011 2011 Booked capex: EUR 22.4m (10.7% of reven
Slide 16: Change in operating cash flow, reflecting the increase in investments
Consolidated results at June 30, 2011 - Paris September 6, 2011 Change in operating cash flow, reflecting the increase in investments Consolidated data in EURm (under IFRS) at June 30 2010 2011 Cash flow before corporate tax and financial 47.3 45.4 expenses Maintenance capex (7.7) (12.9) Change in W
Slide 17: Growth financed with cash
Consolidated results at June 30, 2011 - Paris September 6, 2011 Growth financed with cash Consolidated Consolidateddata dataininEURm EURm ∆ WCR Tax * net CAPEX Cash flow 4.6 payments (13.8) (26.1) 45.4 Dividends 42.8 ∆ loans* 42.8 (11.1) 24.5 (17.3) 24.5 Cash Cash 12/31/10 12/31/11 * net of new borr
Slide 18: Stability of net debt, financial situation bolstered
Consolidated results at June 30, 2011 - Paris September 6, 2011 Stability of net debt Financial situation bolstered Consolidated Consolidateddata Consolidated data Consolidateddata data ininEURm EURm Covenants: Gearing < 1.1 Leverage < 3 18
Slide 19: Shareholders' equity increases, Hime contribution neutral
Consolidated results at June 30, 2011 - Paris September 6, 2011 Shareholders' equity increases Hime contribution neutral Consolidated data in EURm Consolidated data in EURm ICC Dividends 382.4 381.7 382.4 381.7 (11.1) 23.6 1.1 (7.8) 7.1 368.8 368.8 Miscellaneous Share of Share of fair (o.w. fair val
Slide 20: Hime consolidated results and financial situation
Consolidated results at June 30, 2011 - Paris September 6, 2011 Hime Consolidated results and financial situation at June 30, 2010 20
Slide 21: Highlights from the 1st half-year 2011
Consolidated results at June 30, 2011 - Paris September 6, 2011 Highlights from the 1st half-year 2011 Strong growth: revenue +8.4% of which 5.6% at constant scope Water (+8.5%): Scope effect: growth at constant scope lowered to +5.0% Core business performed well in France and abroad Cleanliness (+8
Slide 22: Substantial growth of businesses: revenue +8.4%
Consolidated results at June 30, 2011 - Paris September 6, 2011 Substantial growth of businesses: revenue +8.4% (+5.6% at constant scope) Water: +8.5% to EUR 655.0m Scope effect: EUR 21.2m Strong activity of businesses in EURm +8.4% +8.4% France: +8.0% to EUR 592.6m 823.4 (+4.1% at constant scope) 8
Slide 23: Increase in EBITDA
Consolidated results at June 30, 2011 - Paris September 6, 2011 Increase in EBITDA Consolidated data (under IFRS) at June 30 2010 2011 EURm % rev. EURm % rev. Revenue 759.8 100% 823.4 100% EBITDA 86.9 11.4% 90.8 11.0% COI 30.2 4.0% 40.1 4.9% EBITDA: +4.6% to EUR 90.8m, i.e. 11.4% of revenue Water: s
Slide 24: Change in EBITDA: contribution by Division
Consolidated results at June 30, 2011 - Paris September 6, 2011 Change in EBITDA: contribution by Division Consolidated data in EURm Consolidated data in EURm 90.8 90.8 (0.7) 86.9 +4.6 86.9 Cleanliness Cleanliness Water Water EBITDA EBITDA at 06/30 2010 2011 24
Slide 25: Financial income higher
Consolidated results at June 30, 2011 - Paris September 6, 2011 Financial income higher Consolidated data in EURm (under IFRS) at June 30 2010 2011 Bank interest expenses (45.3) (47.0) Cash flow income 0.3 1.1 Other income and expenses (0.6) (2.8) Restated financial income (45.6) (48.7) Interest exp
Slide 26: Breakdown of Taxes, Change in Net Income
Consolidated results at June 30, 2011 - Paris September 6, 2011 Breakdown of Taxes Change in Net Income Consolidated data in EURm (under IFRS) at June 30 2010 2011 Corporate tax on non-consolidated (0.2) (0.4) subsidiaries Differed tax resulting from: - amortization of allocated goodwill 3.9 3.9 - a
Slide 27: Sharp rise in gross CAPEX
Consolidated results at June 30, 2011 - Paris September 6, 2011 Sharp rise in gross CAPEX Investments booked Investments booked Water: EURm EURm Productivity investments (online statement, etc.); vehicles and 64.5 70 64.5 operating equipment 60 8,6 International: (development capex in Spain, etc.) 5
Slide 28: Contraction in operating flows
Consolidated results at June 30, 2011 - Paris September 6, 2011 Contraction in operating flows Consolidated data in EURm (under IFRS) at June 30 2010 2011 Cash flow before corporate tax and financial 79.4 82.4 expenses Change in WCR related to operating activities 35.2 (33.8) Corporate tax (paid)/re
Slide 29: Increase in net debt, stability of financial ratios
Consolidated results at June 30, 2011 - Paris September 6, 2011 Increase in net debt Stability of financial ratios Consolidated data in EURm Consolidated data in EURm EURm X EBITDA EURm X EBITDA Leverage determined using the loan agreement method 29
Slide 30: Outlook
Consolidated results at June 30, 2011 - Paris September 6, 2011 Outlook 30
Slide 31: From the Business of an Environmental Specialist to a Specialist of Environmental Businesses
Consolidated results at June 30, 2011 - Paris September 6, 2011 From the Business of an Environmental Specialist to a Specialist of Environmental Businesses 2000 2000 2005 2005 A Specialist of Storage A Specialist of Treatments A Specialist of Storage A Specialist of Treatments Cross-business Cross-
Slide 32: New businesses
Consolidated results at June 30, 2011 - Paris September 6, 2011 Long-standing growth markets New businesses with high visibility Sustainable development Client Séché’s New growth regulations challenges offer drivers Eco-services Services Soil Remediation New businesses Environmental Environmental Ou
Slide 33: New growth drivers: material or energy recoveries
Consolidated results at June 30, 2011 - Paris September 6, 2011 New growth drivers : material or energy recoveries Recovery of Non-Hazardous Waste: multi-business approach Development of material recovery Modernization of sorting facilities: wide-scale roll-out of mechanical sorting, identifying rec
Slide 34: New growth drivers: the delegated management of infrastructure
Consolidated results at June 30, 2011 - Paris September 6, 2011 New growth drivers: the delegated management of infrastructure Incinerator IncineratorininStStPierre Pierred'Oléron d'Oléron Management/optimization of infrastructure for local governments New public service delegation: incinerator in O
Slide 35: New growth drivers: cross-business activities
Consolidated results at June 30, 2011 - Paris September 6, 2011 New growth drivers: cross-business activities Rehabilitation Rehabilitationof ofaamine… mine… … …then thenaa10-year 10-yearmanagement managementcontract contract 35
Slide 36: A policy focused on development capex
Consolidated results at June 30, 2011 - Paris September 6, 2011 A policy focused on development capex Robust investment program, aimed at developing new Group business lines: approx. EUR 50m in 2011(1) Maintenance investments: approx. EUR 22m Development capex: approx. EUR 28m Materials recovery (mo
Slide 37: Outlook for 2011
Consolidated results at June 30, 2011 - Paris September 6, 2011 Outlook for 2011 Macro-economic environment undoubtedly shaky in H2 Revenue growth: approx. +7% (excluding investments in concessions booked in accordance with IFRIC 12) Stability of COI (in value terms) reflects: Impact of exogenous ch
Slide 38: Q&A
S é ché ch é Environnement chose Electrogeloz, Electrogeloz, a printing press certified by Imprim- Imprim - Vert® Vert ® Consolidated results at June 30, 2011 - Paris September 6, 2011 and printed this document on Cyclus Office, 100% recycled paper. Q&A Manuel Andersen m.andersen@groupe- m.andersen@