Seche Environnement Sa · EURONEXT:SCHP
Seche Environnement Sa — H1 2021 Earnings Presentation
36 slides from Seche Environnement Sa's earnings presentation, Sep 14, 2021
Slide 1: Consolidated results as of June 30, 2021
Consolidated results as of June 30, 2021 Presentation of September 14, 2021
Slide 2: Excellent commercial, operational and financial performance in H1 2021
2 Excellent commercial, operational and financial performance in H1 2021 Joël Séché, Chairman of the Board of Directors Consolidated results as of June 30, 2021
Slide 3: Significantly improved performance compared to 2020 and 2019
3 Commercial, operational and financial performance Significantly improved performance compared to 2020 and 2019 Performance Performance vs. 6/30/19 vs. 6/30/20 Contributed revenue +13% Commercial performance Contributed revenue +18% Contributed revenue of €355m EBITDA +28% EBITDA +51% Operational p
Slide 4: Profitable growth momentum confirmed over the medium term
4 Economic, operational and financial performance Profitable growth momentum confirmed over the medium term Change in contributed revenue and EBITDA rate (in real terms) €m EBITDA/Revenue 700 24,0% 656,9 637,3 22,9% 23,0% 600 21,5% 22,0% 500 20,6% 21,0% 20,2% 400 20,0% 354,7 314,4 299,7 300 19,0% 18
Slide 5: On track to achieve 2022 targets
5 Commercial, economic and financial performance On track to achieve 2022 targets Most will be achieved by 2021 EBITDA: 21%-22% of revenue* Increase in operating income Revenue: €750m to €800m 10%-11% of revenue* Sustainable, Selective profitable investments growth Return on capital employed Special
Slide 6: Confirmation of profitable growth strategy
6 Confirmation of profitable growth strategy Maxime Séché, Chief Executive Officer Consolidated results as of June 30, 2021
Slide 7: A profitable growth strategy
7 A profitable growth strategy Added value of the R&D offer, technicality of processes, services Production of Responding to the scarce resources Material recovery challenges of a for high value-added sustainable industrial industries Hazard economy containment Low-cost Energy Circular Integ
Slide 8: France: a sustainable growth environment
8 France: a sustainable growth environment Sustainable growth trends Positive commercial effects Hazardous waste: HW markets: favorable position in a buoyant market Change in tons and average prices per ton (baseline: 100 in 2015) Regulations related to the implementation of the circular economy: 12
Slide 9: Industrial efficiency policy
9 Industrial efficiency policy Maximize commercial effects Increase the agility of the organization Flow optimization Supply Operational schedules chain Demand management Sales and Operations Management Quality, Certification and Risk Policy Health Safety Industrial Discipline in Strategic alignment
Slide 10: External growth
10 External growth Regional coverage and extension of the offering in France International growth platforms 2021 2019 South Africa: Acquisition of Spill Tech 2017 Peru: - Environmental emergency services - Decontamination Acquisition of 100% of Kanay France: - Revenue acquired: +€30m - HW incinerati
Slide 11: Consolidated financial statements as of June 30, 2021
11 Consolidated financial statements as of June 30, 2021 Baptiste Janiaud, Chief Financial Officer Consolidated results as of June 30, 2021
Slide 12: Changes in key indicators related to economic and financial performance
12 Consolidated financial statements at June 30, 2021 Changes in key indicators related to economic and financial performance as of June 30 2019 As a % of 2020 As a % of 2021 As a % of Gross In €m restated* contributed restated* contributed contributed change revenue revenue revenue Contributed reve
Slide 13: Sharp increase in contributed revenue: +18%
13 Activity as of June 30, 2021 Sharp increase in contributed revenue: +18% Considerable organic growth in most geographic areas Contributed revenue: €354.7m (vs. €299.7m at 6/30/20) 27.8 +18.4% (reported data) +15.0% (like-for-like*) 13.5 Balanced contribution from activities 299.7 Dynamic recovery
Slide 14: Solid level of activity confirmed
14 Activity as of June 30, 2021 Solid level of activity confirmed Good contribution from the business lines Change in contributed revenue per quarter Change in HW revenue per quarter (constant scope) (constant scope) -3.8% +31.5% +29.9% +2.4% 111,9 2020 107,7 109,9 109,8 99,9 2021 83,5 T1 T2 T3 T4 D
Slide 15: Change by geographic scope
15 Activity as of June 30, 2020 Change by geographic scope Strong growth in activity in France Varying situations internationally Change in contributed revenue International: Revenue of €93.5m, i.e. +22.5% (reported data) per geographic scope +9.4% (like-for-like*) Scope effect: +€11.1m (contributio
Slide 16: Development of the business mix
16 Operating results as of June 30, 2021 Development of the business mix Strong contribution from all activities Scope effect +11,1 Scope effect +11,1 Consolidated results as of June 30, 2021
Slide 17: Change in EBITDA by activity and geographic region
17 Operating results as of June 30, 2021 Change in EBITDA by activity and geographic region Strong growth in gross operating margin France International as of June 30 2020 2021 In €m Consolidated France Int’l. Consolidated France Int’l. Contributed revenue 299.7 223.4 76.3 354.7 261.2 93.5 EBITDA 53
Slide 18: Increase in EBITDA
18 Operating results as of June 30, 2021 Increase in EBITDA Volume effects, mix effects and favorable price effects EBITDA up 50.7% to €81.1m, i.e. 22.9% of contributed In €m revenue (vs. 18.0% at 6/30/2020) Scope effect: +€3.4m Negligible foreign exchange effect At constant scope: Positive volume a
Slide 19: Significant increase in COI
19 Operating results as of June 30, 2021 Significant increase in COI Strong contribution from the France scope In €m France International as of June 30 2020 2021 In €m Consolidated France International Consolidated France International Contributed revenue 299.7 223.4 76.3 354.7 261.2 93.5 Current op
Slide 20: From Current Operating Income to Net income, Group share
20 Change in other key subtotals as of June 30, 2021 From Current Operating Income to Net income, Group share as of June 30 2020 As a % of 2021 As a % of Gross change In €m contributed contributed revenue revenue Current operating income 13.0 4.3% 32.9 9.3% +152.1% Operating income 11.9 4.0% 30.8 8.
Slide 21: Industrial investments as of June 30, 2021
21 Industrial investments as of June 30, 2021 Return of industrial investments to their normative level Recovery of development investments Change in recognized investments in €m Breakdown of recognized investments CapEx (excl. IFRIC): 43.7 10.9% of contributed 4,9 revenue (vs. 8.3% at 6/30/2020) Fi
Slide 22: Strong free cash flow generation
22 Cash generation as of June 30, 2021 Agility Strong free cash flow generation In €m as of June 30 2020 2021 EBITDA 53.8 81.1 Dividends received from associates 0.0 0.0 Foreign exchange gain (loss) (0.9) (0.6) Income and expenses calculated in EBITDA 0.7 0.9 Costs of rehabilitation and maintenance
Slide 23: Stability of net debt (IFRS)
23 Net financial debt as of June 30, 2021 Agility Stability of net debt (IFRS) In €m Cash effects Non-cash effects o/w interest / o/w Spill Tech leases: 0.9 fin. leasing 4.2 Consolidated results as of June 30, 2021
Slide 24: Liquidity and flexibility
24 Capital structure as of June 30, 2021 Liquidity and flexibility Liquidity situation maintained at a high level Financial leverage down sharply Structure of gross financial debt in (€m) Sound liquidity situation (€m) 660.5 310.1 304.3 30,8 25,0 275.3 599.8 50,0 555.5 28,3 20,0 150,0 150,0 29,6 20,
Slide 25: Outlook: 2021 targets revised upwards
25 Outlook 2021 targets revised upwards Continuing commercial and operational momentum Operating Results Capital structure Business • Contributed Revenue including • EBITDA between 21% and 22% of • Industrial CAPEX of around €90 m TGAP: close to €750m before Spill contributed revenue, including Tech
Slide 26: Appendices
26 Appendices Consolidated results as of June 30, 2021
Slide 27: Definition of contributed revenue
27 Appendices Appendix 1 Definition of contributed revenue IFRIC 12 revenue: investments made for disposed assets and booked as revenue in accordance with IFRIC 12 Compensations : damages and compensation paid to Sénerval, net of variable cost savings, to cover operating losses sustained by Sénerval
Slide 28: Contributed revenue by geographic area
28 APPENDICES Appendix 2 Contributed revenue by geographic area South Africa 9,8% Chile 0,6% Peru 1,1% Mexico 0,1% France International Argentina 76,1% 23,9% 0,1% Italy Rest of World 6,5% 2,6% Spain Germany 2,8% 0,4% Breakdown of contributed revenue at 6/30/2021 Consolidated results as of June 30, 2
Slide 29: Breakdown of contributed revenue by division
29 APPENDICES Appendix 3 Breakdown of contributed revenue by division Reported data in €m NHW division: Contributed revenue of €126.0m (vs. €104.2m at 6/30/20), i.e. +20.9% On a like-for-like basis: Treatment: +19.7% to €62.5m - Commercial effects 126,0 Recovery: +21.1% to €17.7m - Normative contrib
Slide 30: Change in contributed revenue by activity
30 APPENDICES Appendix 4 Change in contributed revenue by activity Breakdown of contributed revenue by activity Change in Services Revenue by business lines (reported data in €m) (Reported data in €m) 11,1 0,1 128,1 45,7 110,9 37,4 11,1 0,1 164,0 144,2 82,4 73,6 44,5 51,5 6/30/2020 6/30/2021 06/30/2
Slide 31: Breakdown of contributed revenue by activity
31 APPENDICES Appendix 5 Breakdown of contributed revenue by activity Breakdown of contributed revenue by activity at 6/30/2021 Recovery 14% (vs. 14% at 6/30/20) 4% 10% 10% NHW recovery and treatment 6% Incineration and NHW platforms 2% Incineration and HW platforms Other HW treatment HW storage Tre
Slide 32: Breakdown of contributed revenue by client
32 APPENDICES Appendix 6 Breakdown of contributed revenue by client Breakdown of contributed revenue by division and client Breakdown of contributed revenue France at 6/30/2021 –consolidated data- by sector of activity at 6/30/2021 Chemicals 1% 3% NHW revenue: 35% 24% 2% Energy - comm. Environmental
Slide 33: Change in Operating Income
33 APPENDICES Appendix 7 Change in Operating Income as of June 30 2020 2021 Change €m % of contributed €m % of contributed change revenue revenue Contributed revenue 299.7 354.7 +18.4% EBITDA 53.8 18.0% 81.1 22.9% +50.7% Current operating 13.0 4.3% 32.9 9.3% +152.1% income Operating income 11.9 4.0%
Slide 34: Change in Financial income
34 APPENDICES Appendix 8 Change in Financial income as of June 30 2020 2021 Cost of gross financial debt (8.8) (8.3) Income from cash and cash equivalents 0.2 0.1 Other financial income and expenses (1.8) (1.2) Financial income (10.4) (9.4) Change in the gross cost of debt: Average cost of gross deb
Slide 35: Breakdown of shareholders and voting rights
35 APPENDICES Appendix 9 Breakdown of shareholders and voting rights Share ownership at 6/30/2021 Voting rights at 6/30/2021 20,5% 29,7% 0,6% 0,5% 4,9% 0,7% 0,5% 61,8% 7,2% 73,4% Total: 7,857,732 shares Total: 11,425,616 voting rights Séché family Séché family Pégase-53 Pégase-53 Treasury stock Trea
Slide 36: Note and Contact
NOTE 36 This document may contain information of a provisional nature. This information represents either trends or targets at the date of this document's creation and may not be considered as results forecasts or as any other type of performance indicators. This information is by nature subject to