2016 full-year results - industrial group, global … · launch of the transformation plan new...

2016 FULL-YEAR RESULTS

MARCH 1st, 2017

DISCLAIMER

2016 Full-Year Results

March 1st, 20172 I

This presentation contains estimates and/or forward-looking statements and information. These statements include financial

projections, synergies, estimates and their underlying assumptions, statements regarding plans, expectations and objectives

with respect to future operations, products and services, and statements regarding future performance. Such statements do

not constitute forecasts regarding SUEZ’s results or any other performance indicator, but rather trends or targets, as the case

may be. No guarantee can be given as to the achievement of such forward-looking statements and information.

Investors and holders of SUEZ securities are cautioned that forward-looking information and statements are subject to various

risks and uncertainties, which are difficult to predict and generally beyond the control of SUEZ, and that such risks and

uncertainties may entail results and developments that differ materially from those stated or implied in forward-looking

information and statements. These risks and uncertainties include, but are not limited to, those discussed or identified in the

public documents filed with the Autorité des marchés financiers (AMF). Investors and holders of SUEZ securities should

consider that the occurrence of some or all of these risks may have a material adverse effect on SUEZ. SUEZ is under no

obligation and does not undertake to provide updates of these forward-looking statements and information to reflect events

that occur or circumstances that arise after the date of this document.

More comprehensive information about SUEZ may be obtained on its website (www.suez.com).

This document does not constitute an offer to sell, or a solicitation of an offer to buy SUEZ securities in any jurisdiction.

FY 2016 HIGHLIGHTS: FULL COMMITMENT TO ACHIEVE TARGETS IN A TOUGH ENVIRONMENT

Jean-Louis CHAUSSADE

Chief Executive Officer

3 I2016 Full-Year Results

March 1st, 2017


March 1st, 20174 I

Revenue: €15,322m

EBIT: €1,282m(1)

ND / EBITDA: 3.0x

FCF: +€1,005m

Main achievements

Launch of the Transformation plan

New strategic move in China with full control of all our

Chinese activities through a single entity

Strengthened positioning in Italy through ACEA

Net Income GS: €420m

Revenue growth lifted by International division

+1.1% organic growth

+0.5% organic growth

+2.1% organic growth when adjusting for impact from

exceptionally high 2015 water volumes of 20m€

+3.1% growth

+4.3% EPS growth

In-line with target

Strong mobilization to improve cash-generation

Net debt: €8,042m

Negative FX and scope effects (+€240m)

2016 KEY HIGHLIGHTSFull commitment to achieve targets in a tough environment

(1) Includes +€36m provision reversal accounted for in H1 2016

Christophe CROS

Chief Financial Officer


March 1st, 2017

DISCIPLINE STRONGER THAN HEADWINDS


March 1st, 20176 I

- KEY FIGURES -

In €m FY 2015 FY 2016Organic

growth

REVENUE 15,135 15,322 +1.1%

EBITDA(1) 2,751 2,651 -0.1%

EBIT(1) 1,381 1,282 +0.5%

NET RESULT

Group Share408 420

FREE CASH FLOW 1,047 1,005

NET INVESTMENTS 1,626 705

NET DEBT 8,083 8,042

ND/EBITDA 2.9x 3.0x

HIGHLIGHTSKey targets achieved despite a tough environment

EBIT above target

In spite of FY revenues hampered by activity

slowdown in H2 and lower commodity prices

EBIT: +2.1% organic growth excl. exceptional 2015

water volumes for €20m

Discipline and proactivity rewarded

Compass: 180m€

Asset rotation: 486m€ divestment

Increase in profitability

Net result group share: +3.1%

EPS: +4.3%

(1) Including impact from Derun: €131 capital gain in 2015 and €36m provision reversal in 2016

FY 2016 REVENUE1.2% growth driven by International


March 1st, 20177 I (1) Recycling & Recovery

QUARTERLY REVENUE

Q1 Q2 Q3 Q4

+1,5%

+3,9%

-1,1% +0,1%

Quarterly organic growth

FY 2015 FY 2016

15,135

15,322+4.7%-1.3% +0.6%

Scope

International

Others

(3)

WaterEurope

R&R(1)

EuropeForex+210

+188(62)(185)

+39

Organic growth: +1.1%

In €m


March 1st, 20178 I

(1) Including impact from Derun: +€131 capital gain in 2015 and +€36m provision reversal in 2016

(2) Adjusted for +€131m capital gain in 2015 & +€36m provision reversal in 2016

(3) Including -€8m from the end of the Lille contract

1,381(1)

1,282(1)

Water

Volumes(3)

OthersForex Electricity

Scope

(95)

(28)(28)

+18(27) +30

EBIT

Margin

8.3%(2)

EBIT

Margin

8.1%(2)

Derun(2)

FY 2015 FY 2016

In €m

International

+31

Water Europe Recycling &RecoveryEurope

International

-3.5%+2,0%

+5,5%

ORGANIC GROWTH

BY DIVISION

FY 2016 EBITEuropean headwinds offset by international performance

WATER EUROPELack of inflation weighing on escalation formulas


March 1st, 20179 I

(1) At iso contracts(2) Escalation formula on Delegation of public services(3) Net balance between contracts gained / renewed / lost & amended;including -€82m from Lille

In €m

4,677

ScopeForex

Volume(1)

Tariffs(2)

Net Cial.Activity(3)

4,703

Works

+14

FY 2015 FY 2016

+88 (3) +29 (98)+16

NewServices

Others

(21)

REVENUE Contrasted key indicators evolution between countries

Commercial activity mainly affectedby the end of the Lille contract: -€82m

Positive scope effect from the consolidation of Nantaise des Eaux(+69m€)

Negative impact on tariffs from lower energy prices

New services: +14% in revenues

Volumes(1) Prices

France -2.0% +0.1%

Spain(4) +1.0% +0.3%

Chile +0.9% +4.0%

Forex(10) Volumes

(20) Lille(8)

Others+13

636(5)

611

FY 2015 FY 2016

13.6% 13.0%

EBIT% EBIT MARGIN

(4) Excluding upstream volumes(5) Adjusted figure following intra-group reclassification

6,357

+16

+38

Prices CommodityPrices

(36)

Construction

+21 6,302

(95)

RECYCLING & RECOVERY EUROPEImproved performance despite lower commodity prices


March 1st, 201710 I (1) Adjusted figure following intra-group reclassification

In €m

ScopeForex

Volumes

FY 2015 FY 2016

REVENUE

Strong increase in recovered volumes

Revenue hampered by commodity prices: negative trend in scrap metal (-10%) and plastic (-8%)

Upwards volumes & pricing trends overall,

positive impact of the commissioning of 3 new

EFW in UK and Poland

EBIT impacted by lower electricity prices: -27m€

Improved profitability thanks to cost-cutting efforts and on going rationalization

MtFY

2016∆ 16/15

Elimination 8.2 -4.0%

Recovery 16.9 +4.3%

Energy from Waste 8.5 +4.8%

Sorting & Recycling 8.3 +3.8%

Processed volumes 25.1 +1.4%

Forex(7) Electricity

prices(27)

Others+38

306(1) 310

FY 2015 FY 2016

4.8% 4.9%

EBIT% EBIT MARGIN

Derun(95)

Forex(11) Scope

+5

Others31

4,217

3,998 +2 (55)+32

Scope& Forex

North America

Europe LATAM

Asia

+132

AMEI(1)

+29

Australia

+80

INTERNATIONALSolid momentum in main regions


March 1st, 201711 I

(1) Africa, Middle East & India (2) At iso contracts(3) Adjusted figure following intra-group reclassification(4) €131 capital gain in 2015 and €36m provision reversal in 2016(5) Adjusted for +€131m capital gain in 2015 & +€36m provision reversal in 2016

In €m REVENUE

FY 2015 FY 2016

Volumes evolution

Strong activity in Asia, thanks to new contracts and +17% growth in waste volumes in Hong-Kong

Waste volumes up +7.5% in Australia, driven by soils volumes & new contribution of Perthwaste

Very dynamic growth in Africa-Middle East-India linked to construction activity

FY

2016∆ 16/15

DB backlog - €bn 1.3 +0.5%

China – Mm3 sold 208 +3.2%(2)

North America - Mm3 sold 291 +0.3%

Morocco - Mm3 sold 151 +0.4%

China/Australia – Waste treated mt 9.8 +11.2%

FY 2016

EBIT% EBIT MARGIN

566(3)

496

10.9%(5)

FY 2015

10.9%(5)

471

FY 2016From EBITDA to income from operating activities


March 1st, 201712 I

(1) Including impact from Derun: €131 capital gain in 2015 and €36m provision reversal in 2016(2) Performance shares & Stock Options(3) Includes -€160m of provision on assets, +€274m of capital gains and -€28m of rebranding costs in 2016

(vs. respectively -€87m, +€11m and -€28m in 2015)

In €m FY 2015 FY 2016 ∆ 16/15

∆ 16/15

excl.

Derun

EBITDA 2,751(1) 2,651(1) -3.6% -0.2%

Amortization (1,108) (1,111)

Net provisions 16 22

Other (concession charges, ESOP(2)) (279) (280)

EBIT 1,381 1,282 -7.2% -0.3%

Restructuring costs (71) (76)

Provisions on assets & others (3) (102) 84

INCOME FROM OPERATING ACTIVITIES 1,208 1,290 +6.8% +16.4%

FY 2016Income from operating activities to net result group share


March 1st, 201713 I

In €m FY 2015 FY 2016 ∆ 16/15

INCOME FROM OPERATING ACTIVITIES 1,208 1,290 6.8%

Cost of net debt (363) (360)

Other financial result (58) (63)

Income tax (173) (244)

NET RESULT 614 623 1.6%

Minority interest (206) (203)

NET RESULT GROUP SHARE 408 420 3.1%

Cost of net debt(1): 3.67% vs. 4.19%in 2015

Effective tax rate: 35.4% vs. 33.3% in 2015

(1) Excluding securitization cost and inflation-link cost in Chile

In €m INVESTMENTS

SELECTIVE CAPEX ALLOCATION


March 1st, 201714 I

34%

29%

37%Water Europe

R&R Europe

International

(122)160 104

631492

645

595

Maintenance CAPEX

Development CAPEX

Financial Investments

Disposals

FY 2015 FY 2016

1,626

705

(486)

Tight control on CAPEX

8% decrease in development CAPEX

Maintenance CAPEX: 3.9% of revenue, in line

with long term trend

Financial investments:

Acquisition of Perthwaste in Australia (€58m)

Majority stake in Driplex to reach industrial

customers in India

Acquisition of an additional stake of 10.85% in

ACEA to 23.33% financed through 20 million

new shares

Disposals of non-core assets:

Bristol Water

Ocea Smart Building

Finnish waste activity

Real estate assets

312Australian

minorities

buy-out c. 300Acea

deal

SOLID FCF, IN-LINE WITH GUIDANCE€1bn FCF target achieved thanks to strong mobilization to improve cash generation


March 1st, 201715 I

1,005

2,651(179)

(68)

(272)

EBITDA FY 2016

Concession charges

Other

Maint.capex

Free Cash Flow2016

2,129

Operating Cash Flow

(595)

Change in WCR

(148)

Tax expenses

(314)

Net Financial Expenses

Income of core

associated

(71)

In €m

Maintaining strong focus on cash generation

NET DEBTFinancial discipline to monitor debt


March 1st, 201716 I

31/12/15 31/12/16

(1,005)

+492

8,083

(382)+602

+148 +105 8,042

2.9x ND/EBITDA

3.0x ND/EBITDA

Others(2)

Free Cash Flow

Dividends paid(1)Dvpt.

Investments

Forex

In €m

(1) Out of which €353m paid to shareholders, €204m to minority interests, €11m of tax and €28m of hybrid coupon(2) Out of which €92m linked to scope effect

Net Fin. Investments

5,19% 5,08% 4,88%

4,45%4,19%

3,67%

4,36%4,13% 4,05%

3,49% 3,41%

2,97%

2011 2012 2013 2014 2015 2016

Cost of net debt

Cost ofgross debt

Significant decrease in cost of gross & net debt with an average duration to 6.4 years

A3 Rating, stable outlook by Moody’s

COST OF DEBT


March 1st, 201717 I

(1) Opening capital employed adjusted for scope effects prorata temporis and main FX(2) After allocation of tax credit from French tax group consolidation

In €bn

Water non regulated activities

Water regulated activities

Waste

Projects under construction

Non consolidated financial investments

2015 2016

5.0

4.4

4.5

0.8

0.2

14.8 15.0

4.9

4.6

4.6

0.80.1

TOTAL CAPITALEMPLOYED(1)

ROCEBY DIVISION(2)

6,0%

6,5%

7,0%

7,5%

8,0%

0,9 1 1,1 1,2

2015 2016Revenue/Capital Employed(1)

NOPAT/Revenue

6.6%

7.0% ROCEin 2016

Slight decrease in margin

1.02

1.01

6.9%

Water Europe

Waste Europe

International

ROCE (%)

Capital employed

6.3% WACC

€4.2bn

10.3%

7.0% ROCE

€6.7bn

7.9%

€4.0bn

6.0%

ROCE

TOWARDS A MORE EFFICIENT FULLY INTEGRATED SERVICES COMPANY




March 1st, 2017

ROSARITO DESALINATION PLANT IN MEXICO

Design, equip, operate and finance

Secure drinking water supplies in the coastal region

of Baja California

Total capacity of 380,000 m3 per day

37-year long O&M contract


March 1st, 201719 I

INNOVATIVE PARTNERSHIP WITH TOTAL IN

USED COOKING OIL

CHANGZHOU ENERGY FROM

HAZARDOUS WASTE PLANT

50/50 JV with Everbright International

30k tons p.a. capacity of various hazardous waste

Steam production sold to companies within the

development zone

Meeting both Chinese and European emission standard

10-year innovative partnership

Deploying a sustainable country-wide industry to

recycle used cooking oil to produce biofuels

Increasing the amount of used oil collected in

France by more than 20%

Helping Total meet its environmental targets

AT THE FOREFRONT OF OUR EVOLVING MARKETSLearnings from commercial milestones of 2016

TAKING ADVANTAGE OF MAJOR MARKET TRENDSIn a rapidly changing business environment


March 1st, 201720 I

PROVIDING ADDED-VALUE SERVICES TO HELP CUSTOMERS HANDLE

THEIR ENVIRONMENTAL CONSTRAINTS

RAPID CHANGES IN

PARADIGM

Digital

Customer power

EUROPEAN CONTEXT

Erosion of historical

models

Lower inflation

Industrial stagnation

SECULAR POSITIVE

DRIVERS

Hydric stress &

climate change

Greater needs for

resource

management

More stringent

regulation

GLOBAL MACRO-

ECONOMIC CONTEXT

Slower global growth

Commodities volatility

Political uncertainty

SPEEDING UP TRANSFORMATION Involving all the organization


March 1st, 201721 I

COMPETITIVENESS IN QUALITY AND COSTS IN ALL OUR ACTIVITIES

Customer centricity,

proximity and intimacy in main

geographies

Performance of our operations

Agility Organizations,

decision making processes

Excellence in our offers and

deliveries

Innovation with and for our clients

A UNIQUE WORLDWIDE REFERENCE

OF RESOURCES MANAGEMENT SERVICES

RESIZING COMMERCIAL CAPABILITIES FOR MORE EFFICIENCY

Strengthening fully integrated commercial networks

in all geographies

New models based on resources management

Initiate strategic industrial partnerships to

accompany our customers globally: Total, Dow…


March 1st, 201722 I

MOVING QUICKER THROUGH TRANSFORMATIONBuilding leadership of tomorrow’s markets

INCREASING CAPITAL ALLOCATION SELECTIVITY

IMPULSING DIGITAL TRANSFORMATION

PRIORITIZING SELECTED OPPORTUNITIES

Stable CAPEX envelope in 2017

Allocating more CAPEX to US regulated water

activities: c. +50%

Keeping on increasing CAPEX in International

Lower capex for trucks

Boosting Hazardous waste in China

Seizing market openings in LatAm

Expanding to Italy & Eastern Europe

Launching Smart Agriculture offers

Improving efficiency for both SUEZ and customers

through dematerialization

Open up new market opportunities: asset performance

management through cloud-based platforms and data,

specific apps

Launch e-commerce initiatives and platforms

2017 OUTLOOK




March 1st, 2017


March 1st, 201724 I

(1) Based on stable industrial production growth in Europe in 2017 and with budget assumption of stable commodity prices

(2) Subject to 2018 Annual General Meeting approval

OUTLOOK

2017: A YEAR OF TRANSFORMATION

TOWARDS A MORE EFFICIENT FULLY INTEGRATED SERVICES

COMPANY

Slight organic increase in revenue

and EBIT(1)

FCF: c.€1bn

Net debt/EBITDA: c.3x

Dividend: ≥ €0.65(2) per share


March 1st, 2017

APPENDICES

SIMPLIFIED FINANCIAL STATEMENTS 27

REGULATED ACTIVITIES 31

P&L 33

CASH FLOW STATEMENT 47

BALANCE SHEET 53

ACTIVITY OF DIVISIONS 60

SUSTAINABLE DEVELOPMENT 68

STOCK PERFORMANCE 73

TABLE OF CONTENTS


March 1st, 201726 I

APPENDICES

SIMPLIFIED FINANCIAL STATEMENTS


March 1st, 201727 I

SIMPLIFIED BALANCE SHEET


March 1st, 201728 I

ASSETS (€m) 31/12/2015 31/12/2016

NON CURRENT ASSETS 19,593 20,198

o/w net intangible assets 4,214 4,223

o/w goodwill 3,480 3,647

o/w net tangible assets 8,275 8,280

CURRENT ASSETS 8,039 8,954

o/w clients and other debtors 3,967 4,041

o/w cash and cash equivalents 2,079 2,925

TOTAL ASSETS 27,632 29,284

LIABILITIES (€m) 31/12/2015 31/12/2016

Equity, group share 5,420 5,496

Minority Interests 1,386 1,870

TOTAL EQUITY 6,805 7,366

Provisions 1,952 2,080

Financial Debt 10,355 11,165

Other Liabilities 8,520 8,673

TOTAL LIABILITIES 27,632 29,284

SIMPLIFIED INCOME STATEMENT


March 1st, 201729 I

In €m FY 2015 FY 2016

REVENUE 15,135 15,322

Depreciation, Amortization & Provisions (1,092) (1,091)

INCOME FROM OPERATING ACTIVITIES 1,208 1,290

Financial Result (421) (424)

Associates non-core - -

Income tax (173) (244)

NET RESULT 613 623

Minority interest (206) (203)

NET RESULT GROUP SHARE 408 420

SIMPLIFIED CASH FLOW STATEMENT


March 1st, 201730 I

In €m FY 2015 FY 2016

Operating cash flow 2,159 2,129

Income tax paid (excl. income tax paid on disposals) (154) (148)

Change in operating working capital (14) (68)

CASH FLOW FROM OPERATING ACTIVITIES 1,992 1,913

Net tangible and intangible investments (1,277) (1,086)

Financial investments (142) (195)

Disposals 122 488

Other investment flows (54) (39)

CASH FLOW FROM INVESTMENT ACTIVITIES (1,350) (833)

Dividends paid (571) (602)

Balance of reimbursement of debt / new debt 467 572

Interests paid / received on financial activities (324) (318)

Capital increase - 17

Net new hybrid 37 0

Change in share of interests in controlled entities (328)(1) 90

Other cash flows (92) (32)

CASH FLOW FROM FINANCIAL ACTIVITIES (811) (273)

Impact of currency, accounting practices and other - 38

CASH AND CASH EQUIVALENT AT THE BEGINNING OF THE PERIOD 2,249 2,079

Total cash flow for the period (170) 846

CASH AND CASH EQUIVALENT AT THE END OF THE PERIOD 2,079 2,925

(1) Includes -€312m of acquisition of the remaining 40% of Sembsita Pacific


March 1st, 201731 I

APPENDICES

REGULATED ACTIVITIES

REGULATED ACTIVITIES


March 1st, 201732 I

Chile

In USDm FY 2015 FY 2016

CA 538 563

EBITDA 253 260

EBIT 185 192

Net Debt 819 868

Capex 185 163

Rate base 1.764 1.853

US

In CLPbn FY 2015 FY 2016

CA 497 515

EBITDA 291 297

EBIT 221 228

Net Debt 601 552

Capex 127 97

APPENDICES

P&L


March 1st, 201733 I

REVENUE BY DIVISION


March 1st, 201734 I

In €m FY 2015 FY 2016 % total 16/15 ∆ Organic ∆

WATER EUROPE 4,677 4,703 30.7% +0.5% -1.3%

Water France, Italy and Central Europe 2,260 2,216 14.5% -2.0% -5.0%(1)

Water Spain and Chile 2,417 2,487 16.2% +2.9% +2.1%

RECYCLING & RECOVERY EUROPE 6,357 6,302 41.1% -0.9% +0.6%

France 3,341 3,319 21.7% -0.7% -1.7%

UK/Scandinavia 1,375 1,314 8.6% -4.4% +4.6%

Benelux/Germany 1,447 1,470 9.6% +1.6% +1.7%

Central Europe 194 198 1.3% +1.9% +4.6%

INTERNATIONAL 3,998 4,217 27.5% +5.5% +4.7%

Europe-Latam 662 589 3.8% -11.0% -8.4%

North America 959 962 6.3% +0.4% +0.2%

Asia 392 472 3.1% +20.4% +20.5%

Australia 976 1,021 6.7% +4.6% +2.9%

Africa, Middle East & India 1,009 1,173 7.7% +16.2% +13.1%

OTHER(2) 103 100 0.7% -2.9% -2.9%

TOTAL 15,135 15,322 100.0% +1.2% +1.1%


(2) Mainly SUEZ Consulting

REVENUE BY GEOGRAPHIES


March 1st, 201735 I

In €m FY 2015 FY 2016% in FY

2016∆ 16/15

FRANCE 5,119 5,023 32.8% -1.9%

Spain 1,769 1,753 11.4% -0.9%

UK 1,133 1,071 7.0% -5.4%

Others Europe 2,449 2,488 16.2% +1.6%

EUROPE (excluding France) 5,351 5,312 34.7% -0.7%

North America 1,138 1,210 7.9% +6.3%

South America 892 896 5.8% +0.4%

Oceania 1,004 1,083 7.1% +7.9%

Asia 497 615 4.0% +23.6%

Others International 1,133 1,182 7.7% +4.3%

INTERNATIONAL (excluding Europe) 4,665 4,986 32.5% +6.9%

TOTAL 15,135 15,322 100.0% +1.2%

REVENUE SCOPE EFFECT BY DIVISION


March 1st, 201736 I

In €mAcquisition/

first time consolidation

Disposal Total Scope

WATER EUROPE 121 (7) 113

R&R EUROPE 49 (13) 37

INTERNATIONAL 82 (22) 60

OTHER - - -

TOTAL 252 (42) 210

REVENUE GROWTH BY DIVISION


March 1st, 201737 I

In €m FY 2015 FY 2016 16/15 ∆ ∆ Organic ∆ Scope ∆ Forex

WATER EUROPE 4,677 4,703 +0.5% -1.3%(1) +2.4% -0.5%

R&R EUROPE 6,357 6,302 -0.9% +0.6% +0.6% -2.1%

INTERNATIONAL 3,998 4,217 +5.5% +4.7% +1.5% -0.7%

OTHER 103 100 -2.9% -2.9% +0.0% +0.0%

TOTAL 15,135 15,322 +1.2% +1.1% +1.4% -1.2%


EBITDA BY DIVISION


March 1st, 201738 I

(1) Adjusted figures following intra-group reclassification

(2) Including +€131m of Chongqing Water Group available-for-sale securities revaluation in 2015 and +€36m of

provision reversal link to this operation in 2016

In €m FY 2015(1) FY 2016 16/15 ∆ ∆ Organic ∆ Scope ∆ Forex

WATER EUROPE 1,320 1,277 -3.2% -3.4% +1.3% -1.1%

R&R EUROPE 767 748 -2.4% -2.0% +1.2% -1.6%

INTERNATIONAL 772(2) 745(2) -3.5% +9.0% -11.0% -1.5%

OTHER (107) (120) +11.4% +11.4% -0.0% +0.0%

TOTAL 2,751(2) 2,651(2) -3.6% -0.1% -2.1% -1.4%

EBIT BY DIVISION


March 1st, 201739 I

In €m FY 2015(1) FY 2016 16/15 ∆ ∆ Organic ∆ Scope ∆ Forex

WATER EUROPE 636 611 -3.9% -3.5% +1.1% -1.5%

R&R EUROPE 306 310 +1.5% +2.0% +1.7% -2.3%

INTERNATIONAL 566(2) 496(2) -12.4% +5.5% -15.8% -2.0%

OTHER (127) (136) +6.8% +6.8% -0.0% +0.0%

TOTAL 1,381(2) 1,282(2) -7.2% +0.5% -5.6% -2.0%

(1) Adjusted figures following intra-group reclassification

(2) Including +€131m of Chongqing Water Group available-for-sale securities revaluation in 2015 and +€36m of provision

reversal link to this operation in 2016

INCOME FROM ASSOCIATES


March 1st, 201740 I

In €m FY 2015 FY 2016 16/15 ∆

WATER EUROPE(1) 59 59 +0.2%

R&R EUROPE 10 14 +40.9%

INTERNATIONAL 197(2) 106(2) -46.4%

OTHER - - -

TOTAL 266(2) 179(2) -32.8%

(1) Mainly ACEA

(2) Including +€131m of Chongqing Water Group available-for-sale securities revaluation in 2015 and +€36m of

provision reversal link to this operation in 2016

60 70 74

100 90 76


March 1st, 201741 I

ONGOING STRONG DISCIPLINE ON COST SAVINGS Raised COMPASS target of €180m achieved

42%

49%

9%Procurementsavings

Operational savings

G&A savings

2%

31%

40%

27%

Other

Water Europe

R&R Europe

International

2014

160 160

H2

H1

2015

FY 2016 BREAKDOWN BY NATURE

FY 2016 BREAKDOWN BY DIVISION

In €m

2016

180

30

IMPACT OF CURRENCIES EVOLUTION


March 1st, 201742 I

1 EUR = USD GBP AUD CLP

FY 2016 average rate 1.11 0.82 1.49 748

FY 2015 average rate 1.11 0.73 1.48 726

Closing rate at 31/12/2016 1.05 0.86 1.46 704

Closing rate at 31/12/2015 1.09 0.73 1.49 769

€m FY 2016Forex

impact

Of which an impact in €m from:

USD GBP AUD CLP

Revenue 15,322 -183 +3 -127 -7 -27

EBITDA 2,651 -38 +1 -12 -1 -14

EBIT 1,282 -28 +1 -7 -1 -10

Net Financial Debt 8,042 148(1) +17 -71 -1 +160

(1) Including €16m of NIH and €13m of MtM

FY 2016: FROM EBITDA TO EBIT BY DIVISION


March 1st, 201743 I

FY 2015 (in €m)Water

Europe

R&R

Europe

Inter-

nationalOther

TOTAL

FY 2015

EBITDA(2) 1,320 767 772 (107) 2,751

Amortization (454) (444) (198) (12) (1 108)

Net provisions & depreciation (39) 37 19 (2) 16

Net concession renewal expenses (191) (53) (28) - (272)

Employees compensation plans in shares(1) - - - (7) (7)

EBIT(2) 636 306 566 (127) 1,381

FY 2016 (in €m)Water

Europe

R&R

Europe

Inter-

nationalOther

TOTAL

FY 2016

EBITDA 1,277 748 745 (120) 2,651

Amortization (458) (435) (204) (14) (1,111)

Net provisions & depreciation (38) 72 (18) 6 22

Net concession renewal expenses (170) (75) (27) - (272)

Employees compensation plans in shares(1) - - - (9) (9)

EBIT 611 310 496 (136) 1,282

(1) Free shares, ESOP relative to ENGIE and SUEZ programs

(2) Adjusted figure following intra-group reclassification

MINORITY INTEREST – P&L


March 1st, 201744 I

In €m FY 2015 FY 2016

WATER EUROPE 148 163

Of which AGBAR 142 156

R&R EUROPE 17 19

INTERNATIONAL 41 21

OTHER - -

TOTAL 206 203

TAX POSITION


March 1st, 201745 I

In €m FY 2015 FY 2016

Income before tax & share in net income from

Associates520 687

Income Tax

o/w Current income tax

o/w Deferred income tax

(173)

(176)

3

(244)

(200)

(44)

EFFECTIVE TAX RATE 33.3% 35.4%

EARNING PER SHARE


March 1st, 201746 I

In €m 31/12/2015 31/12/2016

Net Result Group Share 408 420

+ coupon attributable to holders of undated deeply

subordinated notes issued in September 2010(6) -


subordinated notes issued in June 2014(15) (15)


subordinated notes issued in June 2015- (13)

+ premium on partial reimbursment of undated deeply

subordinated notes issued in September 2010(13) -

Adjusted Net Result Group Share 374 393

In Millions

Weighted average number of outstanding shares 539.0 547.3(1)

Earnings per share (in euros)

Net income Group share per share 0.69 0.72

Net diluted income Group share per share 0.68 0.70

Total number of shares at year end 542,643,468 564,401,246(1)

of which treasury shares 1,959,749 1,914,796

(1) Including +20m of new shares resulting from the capital increase reserved to ACEA in September 2016

APPENDICES

Cash Flow Statement


March 1st, 201747 I

FROM EBITDA TO OPERATING CASH FLOW


March 1st, 201748 I

In €m FY 2015 FY 2016 16/15 ∆

EBITDA 2,751 2,651 -3.6%

Net disbursements under concession contracts (272) (272) -0.0%

Depreciation of current assets (12) (43) -

Restructuring (53) (77) +45.7%

Rebranding cost (28) (28) +2.1%

Dividends from associates 102 92 -9.8%

Provision for employee benefit & others (65) (15) -76.8%

Income of core associates (266) (179) -32.8%

OPERATING CASH FLOW 2,159 2,129 -1.4%

CASH FLOW GENERATION


March 1st, 201749 I

In €mWater

EuropeR&R

EuropeInter-

nationalOther FY 2016

Operating Cash Flow 963 542 559 66 2,129

Net interest paid on investment & financial activities (82) (66) (195) 28 (314)

Income tax (104) (63) (42) 62 (148)

Change in Working Capital (135) (43) (54) 163 (68)

Maintenance Capex (196) (250) (131) (18) (595)

FREE CASH FLOW 447 120 137 301 1,005

Development Investments (246) (104) (141) 0 (492)

Financial Investments (40) (10) (54) (1) (104)

Assets disposals 246 157 69 14 486

Dividends to minorities (161) (31) (17) (2) (211)

TOTAL 246 131 (6) 312 684

Dividends to shareholders (392)(1)

Net new hybrid issuance -

∆ in definition, perimeter and FX / MtMon net financial debt & other

(334)

CHANGE IN NET FINANCIAL DEBT (42)

(1) Out of which €353m paid to shareholders, €11m of tax and €28m of hybrid coupon

INVESTMENTS BY NATURE AND DIVISION


March 1st, 201750 I

FY 2016 (in €m)Maintenance

capex

Development

capex

Financial

investmentsDisposal

Total Net

investments

Water Europe (196) (246) (40) 246 (236)

R&R Europe (250) (104) (10) 157 (207)

International (131) (141) (54) 69 (257)

Other (18) (0) (1) 14 (5)

TOTAL FY 2016 (595) (492) (104) 486 (705)

FY 2015 (in €m)Maintenance

capex

Development

capex

Financial

investmentsDisposal

Total Net

investments

Water Europe (231) (301) (42) 52 (522)

R&R Europe (253) (140) (57) 46 (405)

International (144) (190) (368) 20 (682)

Other (17) 0 (4) 5 (16)

TOTAL FY 2015 (645) (631) (472) 122 (1,626)

STRINGENT INVESTMENT PROCESS & CRITERIA


March 1st, 201751 I

Operations

committee

Includes CEO,CFO, the relevant senior executive VP and the

relevant business unit CEO

Strict financial

investment

criteria

IRR > specific hurdle rate +200bp

Net Result: accretion in year 2 of operation

Positive FCF in year 1 of operation

Investment

thresholds

Acquisitions and divestments ≥ €10m (firm value)

Total capex ≥ €20m

Total cumulated revenues ≥ €100m (≥ €50m for DB contracts)

PLANNING OF MAJOR DEVELOPMENT CAPEX


March 1st, 201752 I

Major projectsEstimated

AmountOn/off BS

Expected

take-over

Clermont-Ferrand (Fr.) €210m OFF Jan. 2014

South Tyne & Wear (UK) €225m OFF Q2 2014

Suffolk (UK) €230m ON Q4 2014

As Samra (Jordan) €135m OFF Q3 2015

Poznan (Poland) €180m OFF Q4 2016

West London (UK) €270m OFF Q4 2016

Merseyside (UK) €290m OFF Q4 2016

Cornwall (UK) €200m OFF H1 2017

Surrey (UK) €110m ON Q4 2017

APPENDICES

Balance sheet


March 1st, 201753 I

SUEZ BONDS


March 1st, 201754 I

Pricing date Code ISIN Maturity date Duration Amount Issue

Spread

Coupon

Rate

16-June-14 FR0011993500 PERPETUAL €500m 225 3.000%

23-Mar-15 FR0012648590 PERPETUAL €500m 217 2.500%

Pricing date Code ISIN Maturity date Duration Amount Issue

Spread

Coupon

Rate

31-March-09 FR0010745976 08-Apr-19 10 years €800m 300 6.250%

19-May-09 FR0010765859 08-Jun-27 8 years €250m 180 1.904%

08-Jul-09 FR0010780528 22-Jul-24 15 years €500m 160 5.500%

09-Oct-09 FR0010785436 12-Oct-17 8 years €150m 108 4.500%

15-Jun-10 FR0010913780 24-Jun-22 12 years €750m 160 4.125%

12-May-11 FR0011048966 17-May-21 10 years €750m 86 4.078%

22-Nov-11 FR0011149962 22-Nov-18 7 years €100m 90 3.080%

02-Dec-11 FR0011158849 02-Dec-30 19 years £250m 260 5.375%

19-Mar-13 FR0011454818 25-March-33 20 years €100m 110 3.300%

01-Oct-13 FR0011585215 09-Oct-23 10 years €500m 77 2.750%

24-Feb-14 FR0011766120 27-Feb-20 6 years €350m 0.000%

19-June-15 FR0012817526 26-Jan-17 19 months €200m 20Euribor 3m +

20bps

25-June-15 FR0012829406 01-July-30 15 years €50m 75 2.250%

03-Sept-2015 FR0012949923 10-Sept-25 10 years €500m 80 1.750%

19-May-2016 FR0013173432 19-May-28 12 years €500m 87 1.250%

FINANCIAL DEBT AND LIQUIDITY POSITION


March 1st, 201755 I

3,479

2016

Undrawn

credit lines(1)

Cash(2)

761 5901 061

576

1 876

856 651 592 650145

2 387

2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 >2026

2,138

1,341

Liquidity position Gross debt(3) maturity profile

In €m

(1) Excluding €764m of treasury bills

(2) Cash net of current cash accounts

(3) Gross debt net of bank overdraft and commercial paper

FINANCIAL DEBT


March 1st, 201756 I

53%

21%

15%

1%4%6%

15%

72%

2%7%

4%Banks

Bonds

Leasing

OtherCommercial paper

EUR

USD

OthersGBP

CLP

76% 76%

13% 11%11% 13%

FY 2015 FY 2016

6,9 6,9 6,4

in years

FY 2014 FY 2015

Gross debt by type

FY 2016

HKD

Net debt by currency Net debt by rate type

Inflation

linked

Floating

Fixed

Net debt by average maturity

ASSETS & LIABILITIES OVERVIEW


March 1st, 201757 I

Minorities: €1,870m

706

1,164

Other

Subsidiary

Within

AGBAR

138

1,897

740

Non-consolidatedfinancial assets

Financial

Receivables(1)

Associates

110

801

567

711Other

provisions

Renewals(3)

Pension

liabilities

Landfills

(1) Including €419m on concessions (IFRIC12)

(2) Including €110m of net renewals (accounted for in other debt)

(3) These net provisions represent the gap between the expenses and the commitments on a linear basis of our

concession contracts

Provisions(2): €2,190m

Non current financial assets: €2,775m

CAPITAL EMPLOYED


March 1st, 201758 I

In €m 31/12/2015 31/12/2016

Net goodwill 3,480 3,647

Tangible and intangible

assets, net12,489 12,503

Net financial assets 183 143

Investment in associates 1,349 1,900

Provisions (1,659) (1,656)

Others (833) (850)

CAPITAL EMPLOYED 15,008 15,687

In €m 31/12/2015 31/12/2016

WATER EUROPE 6,598 6,914

R&R EUROPE 4,042 3,708

INTERNATIONAL 4,229 4,999

OTHERS 139 65

CAPITAL EMPLOYED 15,008 15,687

NOPAT, CAPITAL EMPLOYED AND ROCE


March 1st, 201759 I (1) Opening capital employed, adjusted for perimeter effects prorata temporis and significant Forex effects

In €m FY 2015 FY 2016

EBIT 1,381 1,282

Dividends 10 8

Interest and income from receivables and current assets 13 6

Other financial income and expenses (69) (67)

Income tax expense (167) (178)

NOPAT 1,168 1,051

Net goodwill 3,262 3,480

Tangible and intangible assets, net 12,285 12,489

Net financial assets 164 183

Investment in associates 1,169 1,349

Provisions (1,698) (1,539)

Impact of exchange rate fluctuations and material changes in scope 560 72

Others (886) (953)

CAPITAL EMPLOYED(1) 14,856 15,080

RETURN ON CAPITAL EMPLOYED (ROCE) 7.9% 7.0%

APPENDICES

Activity of divisions


March 1st, 201760 I

33%

6%

5%5%4%

7%

6%

5%

7%

11%

11%

BALANCED REVENUE BREAKDOWN


March 1st, 201761 I

Breakdown by geography 51% water - 49% waste

33% Rest of the World

Other Europe

Chile

34% Rest of Europe

Morocco

33% France

RoWAustralia

USAAsia

UK

Spain

Germany and

Benelux

21%

8%

8%

12%4%

7%

3%

8%

28%

Services

Elimination

EfW & other

recovery

Design

& Build

Sorting &

Recycling

Regulated

New

Services

Equipment

& Services

Concessions

& O&M

Water Waste

WATER EUROPEMain FY 2016 contracts (new and renewed)


March 1st, 201762 I

France

Valenciennes, water production: €256m, 16y

Poissy water production and distribution: €25m, 10y

Issoire, water: €79m, 12y

EDF Dalkia: €5m, 3y

Laon, water production and distribution: €44m, 12y

Asnieres-sur-Seine and Villeneuve-la-Garenne 3 marinas:

€32m, 30y

Sète, drinking water contract: €20m, 10y

Béziers, water and wastewater contract: €150m, 10y

Cayenne, drinking water contract: €200m, 12y

ACEA stakeholding increase to 23.3%

Napoli, DBO wastewater treatment plant: €125m, 5y

Cuma, DBO wastewater treatment plant: €79m, 5y

Italy

Benidorm water & sewerage: €180m,10y

Madrid, 4 wastewater treatment contracts: €52m

Barcelona, O&M of fountains: €5m, 4y

Spain

Chili

Aguas Manquehue, DB drinking water plant: €19m

Advanced solutions

Portugal (Coimbra), Smart Metering: €2m, 2y

France (Bobigny), Smart Metering: €1m, 10y

Spain (Cordoba), Smart Metering: €4m

France (Paris), Smart Metering & Data management.

€3m, 2y

WATER EUROPEWater tarif in Europe


March 1st, 201763 I

GLOBAL AVERAGE PRICE1st January 2015, at constant forex, €/m3

6,67

5,16

4,57 4,514,26 4,19

3,52 3,77

2,51

1,35

Average 4.05

Source: NUS Consulting

RECYCLING & RECOVERY EUROPEMain FY 2016 contracts (new and renewed)


March 1st, 201764 I

France

Dijon, waste collection: €52m, 5y

Orleans, waste collection: €18m, 7y

Grand Paris Express, waste collection and recovery: 5y

Tours, waste treatment: €76m, 4y

Métropole de Strasbourg, waste treatment and

incineration: €32m, 3y

La Rochelle, DBO sorting site: €17m, 5y

Egletons, waste to energy: €64m 15y

Sarrebourg, waste collection: €9m, 7y

Germany (Rastatt), municipal waste: €11m, 7y

Belgium (Limburg), municipal collection: €6m, 2 y

Belgium (Knokke), municipal waste management: €16m,

10y

Benelux and Germany

Industrial Clients

ARKEMA: management and recovery of waste of 28

industrial plants in France: €42m, 4y

RENAULT: waste management of plants in Tangiers in

Morocco, 3y and delegated management in France:

€48m, 5y

SAFRAN: waste management of 23 plants: €10m, 3y

TOTAL: used cooking oil recycling in France, 10y;

environmental management of Lacq platform, 7y; soil

depollution and treatment

DOW: hazardous waste plant acquisition in Germany

INEOS Belgium, liquid waste: €14m, 3y

ADISSEO chemicals treatment: €41m, 8y

Peugeot PSA, waste management: €56m, 4y

EDEKA: €90m, 1y

Prodeval – biogas recovery (22% stake acquisition)

Terracycle – innovative collection and recycling programs

(30% stake acquisition)

Rubicon – connected and digital solutions (acquisition of

minority stake)

Innovation

UK & Nordic

UK (Devon), recycling center and transfer stations:

€30m, 5y

Sweden (Tyresö), household waste collection: €18m, 9y

Central Europe

Poland (Warsaw), waste collection and treatment:

€16m, 2y

Poland (Wrocław), municipal solid waste collection:

€8m, 4y

(1) SRF – solid recovery fuel

RECYCLING & RECOVERY EUROPEMunicipal waste treatment mix in europe


March 1st, 201765 I

ANNUAL WASTE VOLUMES PER CAPITA & SPLIT OF TREATMENT MODE

Source: Eurostat - 2014 data

28%

1% 1% 1% 1% 2%4%

17% 18%

26% 28%

34%

42%

49%53%

55% 56% 59%

81%27%

50%44%

54%

35%

48%38%

50%

35%

35% 27%21%

18%

21% 15% 12%

18%10%

0%

28%33%

34%

27%

47% 24%

26%

18%

28%

22%28% 28%

34% 16% 21%16%

23%

25%

16%16% 16%

21%17% 17%

27%32%

15%19% 17% 17% 18%

6%

14%11%

17%

3%6% 4%

Composting Recycled Incineration Landfill

800

850

900

950

1 000

1 050

1 100

1 150

1 200

60

70

80

90

100

110

120

130

140

0,80

0,90

1,00

1,10

1,20

100

120

140

160

180

200

220

240

260

RECYCLING & RECOVERY EUROPECommodity prices evolution


March 1st, 201766 I

1.07

0.96

90 103

€/ton

€/literGASOIL (monthly average of the price at the pump)

1,080

951

€/tonPET (virgin material)

- Average 2014 - Average 2015 - Average 2016

1.05 (paper, recycled material)BDSV Sorte 1 (ferrous metal, recycled) €/ton

219

172 155

182 114114

871

9000.92

1.0

INTERNATIONALMain FY 2016 contracts (new and renewed)


March 1st, 201767 I

North America

Asia

Africa-Middle East-India

Oceania

Sri Lanka (Colombo), DB water production plant & consulting: €171m India (Calcutta) water distribution: €30m, 6y India (Mumbai), DBO water treatment:€42m, 8y Algiers, management contract: €34m, 2y

Australia (Sydney), water production: €670m, 14y

Australia (Perth), acquisition of Perthwaste for €58m

Industrial contract, Jemena gas processing equipment

contract, Parmalat

Mexico (Rosarito): DBO desalination plant

Mexico (Chapultepec, Mexico City) wastewater treatment

plant DBO + groundwater recharge: €10m

Panama (Ciudad David) wastewater network: €70m, 5y

Perou (Olmos), irrigation project: €120m, 20y

Poland (Mlawa), DBO wastewater treatment: €77m, 33y

Switzerland (Lausanne) DB: €40m

France (Achères), DB biogaz: €154m

France (Valenton), O&M wastewater: €26m, 10 months

Industrial contracts: Sanofi/Genzyme; Cargill

China (Jiaxing), O&M industrial wastewater treatment: €7m, 6y China (Dalian), Petrochemical wastewater, €10m China, BASF, hazardous waste: €19m, 6y Indonesia, Michelin, EP industrial, €2m China (Foshan), hazardous waste China, Solvay waste treatment Hong Kong (San Wai), wastewater treatment: €99m, 15y

Europe LatAm

USA (Rahway): O&M wastewater: €91m, 20y

USA (Newport): O&M wastewater: €109m, 20y

USA (Putnam): O&M wastewater: €27m, 10y

USA (New Jersey) regulated activity: €10m p.a.

USA (Delaware) regulated activity: €3m p.a.

Industrial contracts: KNPC, Intel, Shell

Canada (British Columbia) Victoria district: €12m

Date of new rates % of growth

New Jersey May 2016 c.5%

Delaware Dec 2016 c.14%

APPENDICES

Sustainable development


March 1st, 201768 I

SUSTAINABLE DEVELOPMENTRoadmap 2012-2016: 2016 results


March 1st, 201769 I

2016 Results 2016 Target 2016 vs.2015

Priority #1: Innovate to propose new services and improve the environmental performance of our clients

Better manage the whole water cycle

Save the equivalent of the consumption of 2,000,000 inhabitants within four years 1,681,000 2,000,000 ↗

Equip more than 20% of our clients with smart meters 21% 20% ↗

Increase the reuse of treated wastewater (Mm3) 882 ↗ ↗

Engage in the circular economy

Optimize waste management (tons recovered / tons eliminated)(1)2.0t/1t 2 ↗

Increase the amount of Refused-Derived Fuels (RDF) (tons) (1) 2,090,000 ↗ ↗

Improve our environmental footprint

Better manage GHG emissions (tons CO2 avoided / tons CO2 emitted)(1) 1.9 2 ↗

Increase energy generation by 15 % (GWh)(1) +19% +15% ↗

Priority #2 : Engage our employees

Achieve 18 hours/year of training and personal development per employee 17.0 18

Reduce the frequency rate of workplace accidents 12.7/5 15/5 Positive

Increase the proportion of women in management to 30 % 28.1 % 30

Priority #3 : Share our knowledge and promote access to essential services

Allocate €4m/year through the SE Initiative found to promote access to essential

services in developing countries and social integration.€4m €4m =

Co-construct the solutions with our clients

3 panels to discuss

the results of the

worldwide

materiality analysis

(1) Scope: R&R Europe

SUSTAINABLE DEVELOPMENTRoadmap 2012-2016: Assessment


March 1st, 201770 I

ResultsRoadmap

Target

Equip our clients with smart meters 21% 20%

Improve customer satisfaction and trust 87% 80%

Optimize waste management : ratio tons of waste recovered / tons of waste disposed 2.0 2

Train professionals and managers from water and sanitation in developing countries 149 100

The new 2017-2021 road map will be announced at the time of the next Annual Shareholder’s Meeting the 10th of May, 2017.

The 2012-2016 road map has come to an end and the environmental and social objectives that SUEZ has sethave been mostly met or even exceeded :

LEADER IN SUSTAINABLE DEVELOPMENTMember of flagship ESG indexes

2010 2011 2012 2013 2014 2015 2016


March 1st, 2017

ESR Rating

AgencyMarket Index SE score or rating

2010 2011 2012 2013 2014 2015 2016

71 77 84 80(1) 80 79 82

B« prime »

B « prime »

56 59 58

99 90 85

74 84 84 88 95 99 A(2)

82.2 83

72 I

SUSTAINABLE DEVELOPMENTRatings: Improved results

All scores on 100 unless otherwise indicated

(1) Lower grade due to a change in methodology

(2) Change in methodology. A = maximum score


March 1st, 2017

APPENDICES

Stock performance


March 1st, 201773 I

SHARE PRICE PERFORMANCE(1)

Stock performance and TSR since IPO


March 1st, 201774 I

Stock performance since January 2016

Total Shareholder Return since IPO (22/07/2008)

SUEZ -16.0% +36.5%

CAC 40 +5.6% +43.8%

EuroStoxx Utilities -9.0% -32.0%

(1) As of February 22nd, 2017

22

42

62

82

102

122

142Share performance since July 22, 2008(base 100 on 22-07-2008, SEV at €14)

SEV CAC40 Eurostoxx Utilities

+13%

-53%

+4%

Sophie LombardE-mail: [email protected]

Julien DesmaretzE-mail: [email protected]

Polina SipyaginaE-mail: [email protected]

Guilaine CurvalE-mail: [email protected]

E-mail: [email protected]: + 33 (0)1 58 81 24 05

SUEZTour CB21 – 16, place de l'Iris92040 Paris La Défense Cedex

CONTACTSFINANCIAL COMMUNICATION

mailto:[email protected]




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