Seche Environnement Sa · EURONEXT:SCHP
Seche Environnement Sa — H1 2013 Earnings Presentation
30 slides from Seche Environnement Sa's earnings presentation, Sep 3, 2013
Slide 1: Company presentation
Company presentation September 3, 2013
Slide 2: H1 2013 Highlights
H1 2013 Highlights Finalization of divestment from Hime with no accounting impact in 2013 Success of growth strategy Sustained and lasting growth despite a sluggish macroeconomic environment Growth in eco-services and recovery markets, particularly in HW Contracts in Strasbourg and Nantes in investm
Slide 3: Consolidated results at June 30, 2013
Jean Geissler CONSOLIDATED RESULTS AT JUNE 30, 2013 3
Slide 4: Summary financial data
Summary financial data At June 30 2012 2013 Gross IFRS consolidated data change (€m) % rev. (€m) % rev. Reported revenue 212.2 239.3 Revenue excluding IFRIC 12* 207.9 100.0% 223.8 100.0% +7.7% EBITDA 41.6 20.0% 37.7 16.9% -9.4% Current operating income 19.8 9.5% 15.8 7.0% -20.2% Financial income 3.1
Slide 5: Solid consolidated activity in a listless economic environment
Solid consolidated activity in a listless economic environment €m IFRIC 12 revenue: €15.5m 239.3 240 vs. €4.3m at June 30, 2012 15,5 Concession investments at Strasbourg-Sénerval and Nantes-Alcea 220 212.2 209.6 0,8 4,3 200 180 160 223,8 208,8 207,9 Revenue excluding IFRIC 12: €223.8m 140 vs. €207.9
Slide 6: Balanced growth for businesses
Balanced growth for businesses Published consolidated data NHW division: Revenue excluding IFRIC 12 of €83.1m €m vs. €76.5m at June 30, 2012 239.3 240 Scope: consolidation of Tree (+€1.5m) and Sogad change to equity method (-€1.1m). 15,5 220 212.2 At constant scope, revenue growth excluding IFRIC 12
Slide 7: Gross operational profitability: Impact of mix effects
Gross operational profitability: Impact of mix effects IFRS consolidated data At June 30 2012 2013 (€m) Conso. France Intl. Conso. France Intl. Rev. excl. IFRIC 12 207.9 195.9 12.0 223.8 211.9 11.9 EBITDA 41.6 40.5 1.1 37.7 37.3 0.4 As a % of revenue 20.0% 20.7% 8.9% 16.9% 17.6% 3.1% France (99% of
Slide 8: Details of mix effects: Sharp growth in service businesses
Details of mix effects: Sharp growth in service businesses Change in waste mix Organic growth Mix effects External and/or Scope effect 2.9 temporary 41.6 (5.0) factors 0.2 (2.0) 37.7 of which waste mix: (2.0) of which Eco- Services and of which non- Platforms: (3.0) renewal of H1 2012 effects: 1.3 o
Slide 9: COI level reflecting EBITDA change
COI level reflecting EBITDA change IFRS consolidated data At June 30 2012 2013 Gross (€m) % revenue €m % revenue change Revenue excluding IFRIC 12 207.9 100% 223.8 100% +7.7% EBITDA 41.6 20.0% 37.7 16.9% -9.4% Current operating income 19.8 9.5% 15.8 7.0% -20.2% Operating income 19.2 9.2% 14.9 6.7% -
Slide 10: Financial income: absence of interest income on HIME convertible
Financial income: absence of interest income on HIME convertible IFRS consolidated data in €m Increased cost of gross financial debt: At June 30 2012 2013 Change in average net debt Cost of debt increased to 5.12% vs. 4.66% in H1 2012 (April 2012 refinancing) Gross financial borrowing costs (4.6) (5
Slide 11: Group net income slightly down
Group net income slightly down IFRS consolidated data in €m At June 30 2012 2013 Operating income 19.2 14.9 Financial income 3.1 (5.9) Corporate tax (6.6) (3.2) Nominal tax rate of 35.9% Net income from consolidated companies 15.6 5.8 Hime: not booked as of H2 2012 Share of income from associates (9
Slide 12: Accounting and fiscal treatment of corporate tax
Accounting and fiscal treatment of corporate tax Differed Tax revenues related to Hime accounted for at December 31, 2012 €63.3m Provisions for Hime assets (Differed Tax on Assets): €147.4m x 34.4% = €50.7m Corporate Tax on Hime Convertible interest s: €36.3m x 34.4% = €12.5m Treatment of Corporate
Slide 13: Increase in concession investments (IFRIC 12)
Increase in concession investments (IFRIC 12) Investments under control (excluding IFRIC 12) Breakdown of investments booked Storage 22% (€m) 12.9% of reported revenue Energy 31.0 50% Incineration and platforms 3% Chemical purification 15,5 21.1 13% International 4,3 0,4 Eco-services 2% 0,2 4,2 3% 1
Slide 14: Solid operating cash flows before concession investments
Solid operating cash flows before concession investments IFRS consolidated data in €m At June 30 2012 2013 Change in EBITDA CF before tax and financial 35.2 30.6 expenses - Maintenance capex * 11.4 10.2 - Change in WCR 2.2 (4.3) Corporate tax paid: reimbursement of pre- payment - Corporate tax paid
Slide 15: Good liquidity position
Good liquidity position Consolidated data in €m Net CAPEX ∆ WCR paid Cash flow 4.3 30.6 (33.0) Tax Dividends ∆ (8.1) Borrowings 11.3 24.2 22.5 (3.4) of which financial: 0.9 Cash 12/31/12 Cash 06/30/13 Consolidated results at June 30, 2013 – Presentation on September 3, 2013 15
Slide 16: Stable consolidated shareholders' equity
Stable consolidated shareholders’ equity Consolidated data in €m Net income Dividends 5.6 (8.1) 256.2 Miscellaneous 254.3 0.6 o/w hedges: 0.9 Shareholders’ equity Shareholders’ equity (Group share) (Group share) at 12.31.12 at 06.30.13 Consolidated results at June 30, 2013 – Presentation on Septembe
Slide 17: Net debt under control, Improved ROCE
Net debt under control Improved ROCE Change in shareholders' equity and net debt Debt ratios 2,74 2,91 2,23 0,49 0,70 0,71 345,5 30.06.12 31.12.12 30.06.12 256,2 254,3 Leverage Gearing 223,1 223,7 200,7 ROCE after tax and at constant scope 7,00% 30.06.12 31.12.12 30.06.13 Net debt Shareholders' equi
Slide 18: Markets and Outlook
Manuel Andersen MARKETS AND OUTLOOK 18
Slide 19: Séché, a major player in the circular economy
Séché, a major player in the circular economy Waste Treatment Hierarchy according to EU 2008 Directive Material Recovery 4 5 1 2 3 6 Energy Recovery 7 Seclusion 8 in safety Consolidated results at June 30, 2013 – Presentation on September 3, 2013 19
Slide 20: Tailored treatment...
Tailored treatment... Consolidated results at June 30, 2013 – Presentation on September 3, 2013 20
Slide 21: ... for all types of waste
- DRIMM Montech/Escatallens (82) id é : ‘ - Opale Environnement - Sénerval 3 F - Calais (62) Sheeuena lH) ; i> - Séché Eco-Industries “ Changé (53) - §VO Eco-industries Le Vigeant (87) - Tree La Dominelais (35) - NHW: non-hazardous waste Alcéa Nantes (44) Béarn Environnement Pau (64) Oléron (17) Sén
Slide 22: A specialist in hazardous industrial waste
A specialist in hazardous industrial waste Breakdown of revenue excluding IFRIC 12 Breakdown of revenue excluding IFRIC 12 by client base and division by business sector Municipalities Municipal Non-hazardous waste 37% Services, NHW Environment 3% Municipalities, NHW 1% Chemicals 2% 2% 13% 3% Indust
Slide 23: Growth strategy: Technological approach to markets
Growth strategy: Technological approach to markets Unique positioning Managing industrial risks: recognized expertise in highly technical waste (Secoia, etc.) Integrated services: ability to target outsourcing markets (“global offers”) Development in profitable niches Very hazardous waste: industria
Slide 24: Growth strategy: Capturing new markets and territories
Growth strategy: Capturing new markets and territories Supporting customers (industrials and local authorities) Complementary businesses and/or territories Synergies with existing facilities Launching Upstream businesses Strengthening position on recovery markets: supporting regulatory changes (EPR,
Slide 25: Change in activity mix: an approach geared to Customers/Markets
Change in activity mix: an approach geared to Customers/Markets Services 14% 8% Recoveries 6% 10% 25% H1 2013 revenue: €223.8m 10% 1% (excluding IFRIC 12) 6% 17% Services 29% 27% 9% 12% Treatments Note: CA 2005 : 338M€ 76 % 14% 7% 12% 6% 3% NHW Storage 12% 8% Services 11% 6% HW Storage 25% 10% 13% T
Slide 26: Optimization of tools (2013-2014)
Optimization of tools (2013-2014) PCB treatments: Tailoring treatment structures Stabilizing contribution to operating margin Contribution of Strasbourg – Sénerval : Increasing capacity of furnaces in second half of 2013 Start of heating network in Q4 Development of platforms: Increasing capacity of
Slide 27: Conclusion
Joël Séché CONCLUSION Résultats consolidés au 30 juin 2013 – Présentation du 3 septembre 2013 27
Slide 28: Medium-term outlook
Medium-term outlook Growth sustained by commercial development Increased operating profitability, beginning in the second half of 2013 Automatic improvement of operating incomes in 2013:disappearance of temporary negative factors in 2012 fiscal year Increased profitability of Strasbourg: fully opera
Slide 29: Recent shareholder changes
Recent shareholder changes Shareholders at June 30, 2013 Shareholders at July 26, 2013 Shares (8,634,870) Shares (8,634,870) 19,7% Joël Séché 37,2% Joël Séché 37,2% 37,1% In Amarosa In Amarosa concert: concert: FSI CDC 62.1% 62.1% Autocontrôle Autocontrôle Public 22,4% Public 0,6% 0,6% 5,0% 20,0% 20
Slide 30: Q&A
Q&A Manuel Andersen m.andersen@groupe-seche.com www.groupe-seche.com 30