Seche Environnement Sa · EURONEXT:SCHP
Seche Environnement Sa — H1 2024 Earnings Presentation
42 slides from Seche Environnement Sa's earnings presentation, Sep 4, 2024
Slide 1: Consolidated results to June 30, 2024, Acquisition of ECO, Outlook 2024-2026
Consolidated results to June 30, 2024 Acquisition of ECO Outlook 2024 - 2026 September 4, 2024 Conference
Slide 2: The speakers
2 Consolidated results at June 30, 2024 - Outlook for 2024-2026 September 4, 2024 conference The speakers You can now send your questions by e-mail to to Manuel Andersen, Head of Investor Relations m.andersen@groupe-seche.com Baptiste Janiaud Manuel Andersen Chief Financial Officer Head of Investor
Slide 3: H1 2024, in brief: Highlights of the period
3 H1 2024, in brief Highlights of the period Consolidated results to June 30, 2024 Impact of exogenous or one-off effects on certain activities : Circular economy: sharp drop in energy prices impacting waste-to-energy activities in France Services: lower industrial incident rates in France and inter
Slide 4: Key operating and financial indicators
4 Consolidated financial statements at June 30, 2024 Key operating and financial indicators At June 30 2023 As % of 2024 As % of Gross Like-for- Change at In €m revenue revenue change like constant change scope and exchange rates Revenue contribution 491,6 100,0% 505,1 100,0% +3% -5% -5% Gross opera
Slide 5: Consolidated financial statements at June 30, 2024
5 Consolidated financial statements at June 30, 2024 Baptiste Janiaud, Chief Financial Officer Manuel Andersen, Head of Investor Relations Consolidated results to June 30, 2024 - Outlook
Slide 6: H1 2024 Revenue: Contributed revenue
6 H1 2024 Revenue Contributed revenue Organic growth penalized by energy and spot activities Non-contributed revenue: €35.3m vs. €38.5m at 30.06.23 38,5 35,3 IFRIC 12 investments: €4.0m vs. €9.0m TGAP: €31.3m vs. €29.5m Change 505,1 Contributed revenue: €505.1m (vs. €491.6m at 31.06.23) of contribut
Slide 7: Quarterly business trend
7 H1 2024 Revenue Quarterly business trend Better business trend in Q2 Contribution by quarter in €m French revenue by quarter in €m (like-for-like) (like-for-like) -6,5% -0,2% -0,9%* 183,4 2023 182,5 182,0 181,8 200,9 -7,4%* 171,5 2024 Q1 Q2 Q3 Q4 Consolidated data 2023 279,9 International revenue
Slide 8: Details of Spot and Energy effects
8 H1 2024 Revenue Details of "Spot" and "Energy" effects Spot markets: one-off effect mainly impacting Q1 Energy" effect: normalization of energy prices « Emergency Response » Revenue in €m Energy Revenue in €m (on a like-for-like basis) 23,7 29,7 €(7,3)m of which price effect €(€9.2)m 4,9 25,1 22,1
Slide 9: Organic growth excluding exogenous or one-off effects
9 H1 2024 Revenue Organic growth (excluding exogenous or one-off effects) driven by Circular Economy and Hazard Management activities Like-for-like revenue growth excluding exogenous or one-off effects in €m 491,6 467,5 71,3 46,1 ≈+2%* of which 420,3 France: ≈+3%* 425,2 International: ≈-2%* -3,8 S1
Slide 10: France and International revenue contribution
10 H1 2024 Revenue France: resilient businesses (excluding "Spots" and "Energy" effects) International: contribution of new perimeters International: revenue €151.0m, up 20.1% on a reported basis, down 8.1% on a like- Contribution to revenue for-like basis*. by geographic area in €m Forex effect: €(
Slide 11: Changing business mix: lower contribution from Services
11 H1 2024 Revenue Changing business mix: lower contribution from Services Solidity of the Circular Economy -excluding energy- and of Hazard Management Scope Scope effect effect + 20.1 + 6.8 Scope effect Scope effect +30.8 + 6.8 Consolidated data in €m ‘Emergency’ ‘Energy’ ‘Salaise’ effect effect ef
Slide 12: Change in consolidated EBITDA
12 Operating results to June 30, 2024 Change in consolidated EBITDA Impact of exogenous or one-off effects: (€16.2) million France International of which (11.2): ‘Energy¹ ‘ ‘Spots²’ of which (5.0): ‘Salaise²’ effects "Spots² effect At June 30 2023 2024 In €m Consolidated France Internal Consolidated
Slide 13: EBITDA stable on a like-for-like basis excluding one-off effects
13 Operating results to June 30, 2024 EBITDA stable on a like-for-like basis excluding exogenous or one-off effects EBITDA on a like-for-like basis down 15.7% to €85.9m, or 18.4% of revenue (vs. 20.7% at 30.06.23) EBITDA by effect in €m (like-for-like) Volume and mix effects: decline in volumes in N
Slide 14: Current Operating Income
14 Operating results to June 30, 2024 Growth in Current Operating Income reflecting growth in EBITDA Control of depreciation and amortization In €m France International At June 30 2023 2024 In €m Consolidated France International Consolidated France International Contributed revenue 491,6 365,9 125,
Slide 15: From recurring operating income to Group net income
15 Main intermediate operating totals at June 30, 2024 From recurring operating income to Group net income At June 30 2023 As % of 2024 As % of Gross change In €m revenue revenue Current operating income 45,3 9,2% 29,6 5,9% -34,7% Operating income 45,5 9,3% 28,2 5,6% -38,0% Financial income (11,4) (
Slide 16: H1 2024 Industrial CAPEX
16 H1 2024 Industrial CAPEX Control of maintenance investments Targeted development investments Booked capital investments in €m Breakdown of booked investments by activity (%) Total CAPEX: 6.8% of contributed revenue (vs. 7.5% at 06/30/23) 36,7 34,2 Non-recurring Capex Main Maintenance & Repair Ser
Slide 17: Significant generation of free cash flow
17 Cash generation at June 30, 2024 Significant generation of free cash flow Strong improvement in WCR In €m At June 30 2023 2024 EBITDA 101,9 88,3 Other operating income and expenses (1,7) 0,2 Rehabilitation and maintenance expenses on concession sites and assets (including MM&R) (11,7) (12,4) Recu
Slide 18: Financial agility: Controlling net debt
18 Net financial debt at June 30, 2024 Financial agility Controlling net debt In €M Cash effects Non-cash effect Consolidated results to June 30, 2024 - Outlook
Slide 19: Financial flexibility maintained
19 Financial position at June 30, 2024 Financial flexibility maintained Liquidity situation maintained at a high level Structure of gross financial debt (in €m) Strengthened liquidity position (in €m) 361,0 311,3 332,2 804,1 788,0 150,0 170,0 21,5 175,0 20,1 20,0 713,6 61,8 20,0 69,4 20,0 22,9 70,7
Slide 20: Debt maturity (before ECO acquisition)
20 Financial position at June 30, 2024 Debt maturity (before ECO acquisition) IFRS Gross financial debt repayment schedule (in €m) 390 361 332 320 138 107 97 98 99 95 47 46 49 47 Cash + RCF + Facility <1 year 1 to 2 years 2 to 3 years 3 to 4 years 4 to 5 years >5 years At 12/31/23 At 06/30/24 Consol
Slide 21: Acquisition of ECO
21 Acquisition of ECO Baptiste Janiaud Chief Financial Officer Consolidated results to June 30, 2024 - Outlook
Slide 22: ECO in figures
22 ECO in figures Market leader in hazardous waste management in Singapore LEADER IN A GROWING Player N°1 32% 439k tpa MARKET serving Southeast Asia's most 2022 TAM developed economy market share (1) (4% CAGR 2017-2022) SIGNIFICANT 610+ ~10 years COMMERCIAL REACH AND customers, including key ~100% a
Slide 23: Business portfolio and customers
23 Business portfolio and customers Diversified activities across 8 business lines First-rate, loyal industrial customers By business activity By customer type(2) Activated carbon Public authorities RECOVERY Breakdown of 2023 revenue Carbon soot waste processing 9% Semiconductors 10% Chemistry 8% 27
Slide 24: A state-of-the-art industrial platform
24 A specialist in hazardous waste A state-of-the-art industrial platform offering the first incineration capacity in markets with high barriers to entry Expertise in handling complex hazardous A wide range of facilities with diversified and and biohazardous waste Start-up of new incinerator for car
Slide 25: Industrial and geographical synergies
25 Industrial and geographical synergies Complementary technological offering and extension of industrial customer coverage to the Asian market South America RoW South America South Africa 4% Singapore 4% RoW By geography 1% 6% 1% 9% South Africa Europe 9% 12% €1,014m France €66m Europe €1,080m Fran
Slide 26: Séché + ECO in figures
26 Séché + ECO in figures Acquisition accretive to operating income from 2024 The new Séché + ECO group (proforma 2023) In €m - Fiscal 2023 Revenue figures EBITDA ROC Séché 1014 218 101 As % of revenue 100,0% 21,3% 10,0% ECO 66 29 20 As % of revenue 100,0% 45,1% 30,3% Proforma Séché + ECO 1080 247 1
Slide 27: Acquisition rationale
27 Acquisition rationale An accretive acquisition in the dynamic hazardous waste markets of Southeast Asia 1 Acceleration of Séché's international development in promising environmental markets in Singapore 2 Investment in a regional leader offering a complete range of hazardous waste management ser
Slide 28: Targets 2024-2026
28 Outlook Targets 2024 - 2026 Baptiste Janiaud Chief Financial Officer Wastewater sludge treatment - ECO (Singapore) Consolidated results to June 30, 2024 - Outlook
Slide 29: Dynamic growth in spot business in H2 and early 2025
29 Outlook 2024 - 2026 Dynamic growth in spot business in H2 and early 2025 Start-up of major Services contracts in France and abroad ‘Emergency’ activities well oriented in S2 "Las Salinas (Chile): an exceptional new spot contract 47,6 47,2 An international tender for a highly 29,7 technical projec
Slide 30: Outlook for 2024-2026 confirmed
30 Outlook 2024 - 2026 Outlook for 2024 - 2026 confirmed Continued profitable growth • Growth to accelerate in H2 • Organic growth of 5% a year on average on the historical Objectives 2024* • France: assumption of stable energy prices and dynamic spot perimeter + contribution of ECO targeting revenu
Slide 31: Improved 2024 targets
31 Outlook 2024 -2026 Improved 2024 targets 2026 outlook revised upwards with the integration of ECO*. Contributed revenue Change in EBITDA in €m and EBITDA Change in COI in €m and COI margin in % (in €m) margin in % of contributed revenue of contributed revenue ≈1290 330 ≈305 - ≈315 ≈165 - ≈175 310
Slide 32: Questions & Answers
32 QUESTIONS & ANSWERS You can send your questions to by e-mail to Manuel Andersen, Investor Relations Director m.andersen@groupe-seche.com Interim Financial Report for 2024 is fully available on Séché’s website www.groupe-seche.com Hazardous waste treatment - ECO (Singapore) Consolidated results to
Slide 33: Appendices
33 Appendices Consolidated results to June 30, 2024 - Outlook
Slide 34: Definition of contributed revenue
34 APPENDICES Appendix 1 Definition of contributed revenue IFRIC 12 revenue: investments in concession assets recognized as revenue and operating expenses under EBITDA in accordance with IFRIC 12. TGAP: General Tax on Polluting Activities paid by waste producers and collected on behalf of the State
Slide 35: Contributed revenue: detail of scope effect
35 APPENDICES Appendix 2 Contributed revenue: detail of scope effect At June 30, 2024 - In €m France International Total Hazardous waste - 26,9 29,9 Non-hazardous waste O,6 10,1 10,7 Total 0,6 17,1 37,6 Change in scope of consolidation : Séché Assainissement Rhône-Isère -ARI- (consolidated at 1er Ju
Slide 36: Revenue contribution by geographical area
36 APPENDICES Appendix 3 Revenue contribution by geographical area Peru Mexico 2,8% Chile 0,3% 0,8% Misc. Europe 1,6% Southern Africa 8,7% France International 70,1% 29,9% Italy 11,9% Rest of the World 1,3% Spain Germany 2,2% 0,3% Breakdown of revenue at 30.06.24 Consolidated results to June 30, 202
Slide 37: Breakdown of revenue by sector
37 APPENDICES Appendix 4 Breakdown of revenue by sector Non-Hazardous: revenue down 4.8% to €160.4m (reported data) Perimeter effect: €10.7m (SARI 38; Furia; RAD) 10,7 Like-for-like: revenue down 11.6% on a reported basis 149,7 France: revenue €123.9m, down 6.5% vs. 06/30/23 168,4 International: rev
Slide 38: Operating income trend
38 APPENDICES Appendix 5 Operating income trend At June 30 2023 2024 Gross €m % Contributed revenue €m % Contributed revenue change Contributed revenue 491,6 505,1 + 2,8 % EBITDA 101,9 20,7% 88,3 17,5 % - 13,3 % COI 45,3 9,2% 29,6 5,9 % -34,7 % Operating Income 45,4 9,3% 28,2 5,6 % - 36,4 % Operatin
Slide 39: Net financial expense
39 APPENDICES Appendix 6 Net financial expense At June 30 – In €m 2023 2024 Gross cost of debt (11,1) (15,5) Cash and cash equivalents 0,7 2,1 Other financial income and expense (1,0) (1,0) Net financial income (11,4) (14,4) Change in gross borrowing costs : Average cost of gross debt at 4.17% (vs.
Slide 40: ESG performance and new extra-financial objectives
40 APPENDICES Appendix 7 ESG performance and new extra-financial objectives Alignment with the European green taxonomy, a further illustration of the Group's promising positioning in ecological transition activities: Eligibility rate: 86 Alignment rate: 68 to the European green taxonomy on the basis
Slide 41: Ownership structure and voting rights
41 APPENDICES Appendix 8 Ownership structure and voting rights Breakdown of shares at 06/30/24 Breakdown of voting rights at 06/30/24 18,3% 29,1% 0,7% 0,7% 4,5% 0,8% 1,1% 61,8% 7,2% 75,7% Total: 7,857,732 shares Total: 12,547,092 voting rights Séché Family Séché Family Pégase-53 Pégase-53 Treasury s
Slide 42: Disclaimer
42 DISCLAIMER This document may contain forward-looking statements. This information represents either trends or objectives at the date of this document, and should not be regarded as forecasts of results or any other performance indicator. By their very nature, these statements are subject to risks