water technologies & solutions: boosting the group …

December 13th, 2017

WATER TECHNOLOGIES

& SOLUTIONS: BOOSTING

THE GROUP TRAJECTORY

2017 Education Day - December 13th, 2017

2

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.

Disclaimer


Agenda

3

1Introduction: Boosting the Group trajectory

M. Jean-Louis Chaussade, CEO of SUEZ

2

Water Technologies & Solutions: An unparalleled expertise in the fast growing

industrial water market

M. Marie-Ange Debon, SUEZ Senior Executive Vice-President in charge of International

& M. Heiner Markhoff, CEO of Water Technologies & Solutions

4

Conclusion: Accelerating our transformation

M. Jean-Louis Chaussade, CEO of SUEZ

A leading digital platform underpinning growth strategy

M. Ralph Exton, Chief Marketing Officer of Water Technologies & Solutions

3

Water Technologies & Solutions: A game changer for SUEZ commercial development

M. Marie-Ange Debon, SUEZ Senior Executive Vice-President in charge of International

Water Technologies & Solutions: An unparalleled expertise enhancing SUEZ’ value creation

M. Christophe Cros, SUEZ Chief Financial Officer

Chemical & Monitoring Solutions: Delivering value through integrated solutions and services

M. Amy Ericson, Executive Vice-President Chemical & Monitoring Solutions

Engineered Systems: Helping customers address their toughest water challenges

M. Kevin Cassidy, Executive Vice-President Engineered Systems

3

5

JEAN-LOUIS CHAUSSADE

CEO of SUEZ

BOOSTING THE

GROUP TRAJECTORY


A transformational move and a catalyst

for future growth for SUEZ

A huge step forward towards a leading position

in industrial water solutions & services

Becoming a unique integrated player

on this segment with full coverage

of the entire value chain

Creating a global leader in industrial water

5


Water Technologies & Solutions business:

“the” brick missing to allow the Group to become

an undisputed reference across all its businesses

Offer integrated solutions to address

all the resources challenges of our customers

Enhancing the Group’s business profile

6


Greater access to the large and fast-growing

Industrial water market driven by strong demand

& regulatory trends

Group financial profile enhanced,

thanks to a high cash-generative activity

A unique opportunity to boost our profitable

7

growth profile

Value creation for all our

stakeholders, particularly our

employees and shareholders


A perfect fit to accelerate our strategy

8

SUEZ revenue exposure to international in 2016(1)

Before

33%67%

International

Europe

After

40%

60%

International

Europe

SUEZ revenue exposure to industrial clients in 2016(1)

Before

34%

66%

Industrial

Municipal

After

40%60%

Industrial

Municipal

€15.3bn

€15.3bn €17.3bn

€17.3bn

(1) Based on unaudited pro forma, combining GE Water and SUEZ Industrial Solutions

MARIE-ANGE DEBON

SUEZ Senior Executive Vice-President

in charge of International

AN UNPARALLELED

EXPERTISE IN THE FAST

GROWING INDUSTRIAL

WATER MARKET


Water Technologies & Solutions:

10

$2.7bn2016 Sales(1)

c. 80%outside Europe

$281m2016 EBITDA(1)

a key player in industrial water with high growth potential

50,000clients

c. 100countries

of operations

~10,000employees

45manufacturing

and service centers Worldwide

(1) Based on unaudited pro forma, combining GE Water and SUEZ Industrial Solutions; including best estimates of US GAAP conversion into IFRS


Leverage our know-how and global capabilities

to solve our customers’ toughest water,

wastewater and process challenges

Utilize our deep domain expertise to help

customers:

Drive productivity, efficiency and reliability

Promote circular economy

Reduce environmental footprint

11

Solving the toughest water and process

challenges of industrial customers…


… in a still fragmented market

12

3.8

2.82.7 2.5

2.12.0 1.8

1.2 1.1

Ecolab: Global Energy division; Xylem: Based on Industrial Water and Public Utilities portions of Water Infrastructure and Applied Water divisions; Danaher: Water Quality; Solenis: latest available; Evoqua:

latest available; Pentair: Industrial water focused divisions of the Flow & filtration solutions and Water quality systems segments

Industrial water competitive landscapeEstimated revenue in $bn


International

team

Experienced

leadership

Integrated

team

An international and experienced leadership team composed

of key talents from GE’s former water business and SUEZ

• Multicultural

• 10 nationalities among the Top20 Management team

• Distributed all over the world based on key geographies

• Talented managers with 20-25 years of seniority on average

• A significant experience in industrial verticals and industrial water

applications

• Maintained GE Water organization structure

• Combining top management from legacy GE Water and SUEZ IS

13

HEINER MARKHOFF

CEO of Water Technologies & Solutions

STRONG MARKET

DYNAMICS SUPPORTED

BY SIGNIFICANT

SECULAR DRIVERS


~$0.3~$5

~$1.5

~$3

~$1

~$3

~$7

~$3

~$11

~$13

~$67

~$17

A large addressable market leaving room

15

for further penetration

Potential

addressable

market

> $100bn

Currently

served

market

~$24bn

Industrial

process

chemicalsMembrane base

equipment

Non-membrane water

equipment (engineering,

filtration, floatation, …)

Other equipment

(sludge, oil water

separation)

Water outsourcing

(mobiles, O&M)

Industrial

water chemicals

Disinfection

(ozone/UV)

Served CapEx /

Equipment market

Served OpEx market

(incl. chemicals)

Other Equipment

(e.g. traditional

filtration, mixing, ...)Other OpEx

Total Organic

Carbon

instruments

Source: Global Water Intelligence, internal analysis


Non-membrane

water equipment

16

Rela

tive g

row

th r

ate Water

outsourcing

Water treatment

chemicals

Industrial

process

chemicals

Membrane

Other

equipment

Profitability

TOC

Market segments with attractive profiles

Source: internal analysis

Disinfection


Water scarcity: more prevalent need

for water reuse solutions

17

Focus on energy efficiency driving

the future of water and wastewater treatment

Growing trends towards industrial

water outsourcing

Increasing regulatory requirements

Solid underlying market trends

Customers focus on productivity

and efficiency gains


Market is expected to grow

18

c. 109

c. 132

20202016

Global market for industrial water treatment

2016–2020


by an average c. 5% per annum between 2016 and 2020

In $bn


19

Strong underlying drivers lead to increasing demand

Increased production

Tightening discharge

parameters

Unconventional Oil & Gas

Increase in produced water

Environmental regulations

Water scarcity

Poor quality near-mine water sources

Tightening water discharge

regulations

Water scarcity

Environmental regulation

Water scarcity

Device demand

Contamination prevention

Environmental regulation

(1) Only industrial Opex figures available for chemicals


Oil & Gas Upstream

Power

Mining

Oil & Gas downstream/ chemicals

Micro Electronics

Pharma & Cosmetics

Market dynamics

Global annual expenditures

2016 ($bn)

Expected average annual growth

2016 - 2020

18 ++Food & Beverage

Key drivers

15 ++

13 +

7 +++

6 ++

1(1) +++

1(1) +++

Water withdrawal regulation

Water scarcity

Environmental regulations

Optimization of production costs

Emerging markets growth

High mineral prices

Total cost of operation

Crude variability

Discharge limitations/costs

Cost-driven market

HEINER MARKHOFF


BUILDING A BUSINESS

POISED FOR

PROFITABLE GROWTH


WT&S: delivering full-service across the value chain

21

Expert

services

Engineering,

procurement,

construction

Equipment

and systems

On site services,

product and

equipment

supply

Lifecycle

replacement

and services

Data intelligence

and analytics for

asset performance

Specialty

chemicals

Technologies Delivery ModelsSolutions & Services


Building on the best technology companies

22

to grasp market opportunities

Portfolio build-upMaking of GE Water

as an integrated companyExecute growth

strategy

Acquired and successfully integrated 5 key major water businesses

Leverage integration experience to quickly and efficiently combine

with SUEZ industrial water activities

Exited low return/non-strategic businesses and strengthened technology

& services portfolio

Consolidated and strengthened manufacturing footprint, supply chain, information systems and management

Investing in digital and analytical capabilities

$2.7bn

of revenue

in 2016

Industrial

Solutions

http://www.ionics.com/


Chemical & monitoring solutions:

23

delivering value through integrated solutions and services

Description

Key applications

Served segments

BoilerHydrocarbon

Processing Cooling

Oil & Gas

Production

Refining & Chemical Processing Upstream Oil & Gas

Power Commercial & Institutional

Food & Beverage Primary Metals & Mining

Integrated chemical treatment solutions for industrial

water & process applications

Wastewater


Engineered systems: delivering solutions through technology

24

to help customers solve their toughest water challenges

Description

Key technologies

Served segments

MembranesWater

Outsourcing

Zero Liquid

DischargeOzone Ultraviolet

A leading equipment and technology solution provider for

water and wastewater treatment, water reuse and outsourcing

Refining & Chemical Processing Upstream Oil & Gas

Power Commercial & Institutional

Food & Beverage Primary Metals & Mining

Municipal


40%

60%

A balanced business mix

25

Engineered

Systems

2016 Pro-forma sales by solution type2016 Pro-forma sales by segment

Balanced business mix Steady, recurring sales

56%

44%

RecurringNon Recurring

Chemical &

Monitoring Solutions


23%

16%

16%

14%

9%

8%

6%

6%2%

19%

22%

7%7%

45%

A balanced business mix

26

Europe

North America

2016 Pro-forma sales by major industries(1)2016 Pro-forma sales by region

Asia-Pacific

Latin

AmericaMiddle-East Africa

Power

Middle

Market

Downstream

Oil & Gas

Food &

Beverage

Municipal

Pulp & Paper

Mining

Microelectronics

& Pharma

Petrochemical

(1) Data relating to GE Water scope only

HEINER MARKHOFF


A WINNING STRATEGY

BASED ON FIVE

DIFFERENTIATING

FACTORS


28

1/ Strong presence all around the world drawing

from an unparalleled supply-chain footprint

Primary focus on global product manufacturing

and fulfillment

Significant manufacturing process engineering domain expertise

Manages 45 manufacturing sites and all active facilities

Global operation business processes including customer care, production sales and

inventory, asset and fleet management, logistics, lean six sigma and investment mgmt

Manages global product quality, responsible for Cost of Quality

Key

Chemical Monitoring Solutions (CMS)

Engineered Systems (ES)

Combined

from an unparalleled supply-chain footprint


29

Industrial WaterSolutions

Chemical Water Treatment

and Related Services

Operations& Maintenance

Engineering, Procurement

and Construction

Equipment & Systems

Monitoring/ Analytics/

Digital ServicesInstrumentation

Present No/Limited Presence

2/ Leading presence across the entire value chain


30

Diverse blue-chip customer base across key industry verticals

Focused effort to expand strategic industrial

Result-oriented value proposition for customers

Strong experience and technical sales force

3,000 customer facing professionals

3/ Strong go-to-market capabilities across the globe

Highly recognized brands in the industry

(ZeeWeed, GenGard, Sievers, Ozonia, InSight…)


~400 scientists and engineers with strong domain expertise

Global technology footprint with R&D centers across the world

Large portfolio of c. 3,200 patents/applications

Developing leading edge technologies:

Green chemistry

Next generation membrane technology

Energy neutral water treatment

Integrated solutions for Oil & Gas

4/ Strong R&D and innovation capabilities

31


5/ A leading digital platform driving value creation

32

Increased customer collaboration

Faster proposal generation

Elevated on-site service

Streamlined fulfillment

Utilize data and advanced analytics

Optimize performance of customer assets

Automate data collection and reporting

24/7 digitized access

Customized solutions

eCommerce

Customer engagement

Customer asset/plant

management

Workforce & supply chain optimization

Workforce & supply chain

optimization

Asset performance

management

Customer engagement

Digital tools to enhance productivity and maximize value

HEINER MARKHOFF


OUR AMBITION:

STRENGTHEN OUR

GLOBAL LEADERSHIP


A clear roadmap for growth

34

Field

Services and

Engineering

Being bolder in selected growth regions

Leveraging key accounts and the SUEZ Group to drive business growth

Driving portfolio differentiation and competitiveness

with accelerated commercialization

Creating new service models based on expanded offerings and data/analytics

Digitalization of our core processes to gain internal productivity

Operating with agility and speed

1

5

4

3

6

2


35

Field

Services and

Engineering

Targeting more than $3 billion of revenue by 2020

Focus on execution will drive mid-single digit growth

2016

CMS

ES

Synergies

Salesc.$2.7bn

2020

> $3.1bn


An unparalleled industrial water platform

36

Field

Services and

Engineering

1 Addressing a >$100bn market expected to grow by 5%

2Operating in key growing industrial verticals with large

blue-chip client portfolio

3 Global footprint - Global capabilities with regional execution to deliver

4 Leading presence across the entire industrial water value chain

Strengthen the global leadership position

in the water technologies and solutions sector

5 Solid business model built for profitable growth

CHEMICAL & MONITORING

SOLUTIONS: DELIVERING

VALUE THROUGH INTEGRATED

SOLUTIONS AND SERVICES

AMY ERICSON

Executive Vice-President

Chemical & Monitoring Solutions


Providing added value services through integrated solutions

38

Key financials

2016 total sales: ~$1.1 billion

% Recurring: ~95%

2016 Sales breakdown

By geography By end market

9%

20%

6%

3%

11%

51%

11%

18%

25%13%

3%

9%

21%Europe

Asia-Pacific

Greater China

Middle-East Africa

Latin America

North

America

Chemical

process

industry

Power

RefiningCommercial &

instutitions

Upstream

Oil & gas

Food

& Beverage

Other


Providing added value services through integrated solutions

39

Segment Key applications

Water treatment

chemicals

Oil & Gas process

chemical treatment

Industrial process

chemical treatment

• Prolongs the life of physical assets

• Maximizes process productivity

• Prevents issues due to corrosion, deposition, fouling and biological growth on operations

• Meets wastewater regulations

• Antifoulant chemical treatment, corrosion inhibitors, and finished product additives

• Real-time monitoring and domain expertise to maximize performance, dependability, and business productivity

• Cost effective solutions to address flow assurance, asset integrity, and production optimization challenges in onshore and offshore field applications

Comprehensive portfolio of chemical treatments:

• Longer run times

• Less fouling

• Improved compliance with safety regulations

• Enables customers in mining, minerals and power industries to tackle suppressing dust and reducing air emissions


Significant opportunities to cross-sell the entire SUEZ portfolio through existing customers

Entrenched customer relationships drive sales

40

across full portfolio

Driving growth Business

development

Maintaining and growing customer relationships

with value-add solutions

Long lead sales process:

~6 to 24 months from initial contact

to ramp up

Daily customers interaction with commercial and

field service teams on customer sites

Digital and monitoring capabilities

designed into customer

processes driving efficiency, asset

protection, and reliability

Entrenched relationship with

customers resulting in steady

stream of business and opportunities

for growth

Defend customer base, build

pipeline, and drive cross-selling

across portfolio

Less than ~5% customer attrition

per annum


A sound profile enabling recurring activity

41

A diversified portfolio of clients

Coveted blue-chip customer base across

industry verticals

No customer accounts for more than 5%

of the business

Result-oriented value proposition for customers

Long-lasting business relationship based on value delivery

Index based mulitple-year contractual

agreements

Pricing improvements through value creation

and service excellence

A partner in improving customers' operation

95% contract renewal rate,

building the base for steady business baseline


Water treatment chemicals:

42

a leading provider of water treatment solutions

• People: industry’s deepest bench of subject

matter experts fully supporting commercial teams

(execution at the ground level)

• Differentiated Technology: for highly stressed

cooling water, for boiler treatment with simplified

and best-in-class chemistry, membrane cleaning

with lowest total cost of cleaning and restoration

• Solutions: ability to bundle specialty chemical

applications with digital solutions for transparency

and ease of operations

Competitive advantages

Cooling - A leader in halogen resistant chemistry

supported with differentiated GenGard technology

Boiler – Differentiated film forming condensate

and feedwater treatment

Membrane chemicals – Cleaners and antiscalant

endorsed and tested for SUEZ and competitive

membranes

Wastewater – Full portfolio of coagulants and

flocculants differentiated with NOVUS technology

Key highlights

Service-based business model for specialty chemical

applications; trusted provider of digital-based asset

protection and process efficiency expertise

Primary industry verticals served

o Power

o Refining

o CPI

o Food & Beverage

o Commercial & Institutions


• People: industry’s deepest bench of subject matter experts fully supporting commercial teams (execution at the ground level)

• Differentiated Technology committed to specific industries: fuels and combustion for Power, scale and dust control for mining, increased output and quality of product for sugar, ethanol, corn milling and breweries for Food & Beverage

• Solutions – Bundling of customer designed formulations, hardware and packaged software

Industrial process chemical treatment


43

Dust control – Mine to Power plant dust control

capabilities with patented oxidation inhibitors

Scale control – Best-in-class industrial process

antiscalants for mining, FGD, and steel centered

around the Patented and differentiated STP

dispersant

Food process – Class leading technologies with

GRAS and FDA approval for sugar and biofuels,

corn milling, and brewing industries

Fuel treatment – Best-in-class technologies

and OEM approved for slagging control from

the combustion of fuels. Also helps power plants

meet regulatory emission targets


o Power

o Food & Beverage

o Mining

o Steel

Key highlights


Oil & Gas Process Chemical Treatment:

44

cost-effective solutions to solve the sector challenges

• People: industry’s deepest bench of subject

matter experts fully supporting commercial

teams (execution at the ground level)

• Differentiated Technology: advanced antifoulant

programs, ethylene compressor, flow assurance

to maximize the toughest of crude compositions

• Solutions: unique, fully integrated chemical,

equipment and operational service offering

for Oil & Gas


Predictive capabilities – Identify crude issues

before they occur and to process more low cost

crudes

Corrosion control – Maximize product yields while

minimizing performance risk

Fouling control – Leading edge technology provider

for Ethylene market (e.g. high temperature furnace

antifoulant)

Polymerization control – Optimized program using

multiple polymerization inhibitors, building on market

leading styrene inhibitor technology

Flow assurance – Modelling software database

allows dose rate optimisation and up to 50% pipeline

CAPEX reduction

Key highlights


o Refining

o CPI

o Upstream

Finish product additives – Used to bring product

to market and regulatory specification

CASE STUDY #1

PROTECTION OF ASSETS

AMY ERICSON


Chemical & Monitoring Solutions


Provide greater flexibility, lower overall cost

and improve margins of a large refinery in India

Customer: a large refinery in India

A large refinery in India, operating multiple crude & vacuum unit complexes, wanted to systematically

increase the TAN operating limits of their crude feed, as a way to provide greater flexibility in crude

selection, lower overall cost of crude, and improve refinery margins

Challenges

The corrosion inhibition results achieved using Predator 61N while processing crudes in a TAN range

of 0.5 – 0.8 mg/g KOH were excellent. The results show that corrosion rates, in the highest risk loops,

were controlled within acceptable limits. There was no measurable increase in the pressure drop in any

of the vacuum column packed beds

Outcome

SUEZ recommended the use of Predator 61N for excellent corrosion inhibition performance, lowest level

of phosphorous in any phosphate-ester based corrosion inhibitor and its synergistic blend of phosphate-ester

and phosphonate salt that has the lowest potential to foul the vacuum column packed beds

SUEZ solution

47


Considerably improving environmental performance

of an Oil & Gas customer with monitoring solutions

Customer: a Scottish petrochemical plant

Water cooling system limited to four cycles due to calcium phosphate and calcium carbonate scaling

Challenges

Increased water cycles in the cooling tower to eight cycles, conserving approximately 400 million liters

of water per year and thereby delivering significant and sustainable savings

Outcome

Utilized data analytics on the information received from online monitoring of the plant’s cooling system

Based on the intelligence from the analytics, provided integrated solution with GenGard chemistry,

TrueSense cooling control and InSight asset performance management system

SUEZ solution

48


49

Aligning talent capabilities & coverage

to execute faster on imperatives

49

2 core products groups 2 key differentiators

Strategies to propel growth through innovation and differentiation

• Water treatment chemistry

• Process treatment chemistry

• Application expertise and services

• Digital integration with industry vertical

automation/analytics

Fortify and leverage key accounts

for growth in priority industry verticals

Environmental stewardship

Drive growth

in core

• Grow in markets with stringent regulations – FGD, dust control, raw water/dewatering, etc.

• Accelerate integrated solutions in HPI/CPI

Expand in

Oil & Gas Production

• Commercialize Flow Assurance by leveraging offshore platform wins

• Vertical integration - Raw material consolidation, cost out, and partnerships

Expand

geographically

• HPI/CPI: India, Mexico, Saudi Arabia, Russia and Caspian; Upstream: Caspian, North Sea and Australia

• Invest in incremental local expertise and service capabilities

Leverage digital• Develop new business models… guaranteed outcomes and pay for performance

• Leverage productivity gains from automation & applied data analytics, e-commerce, and other digital tools

Grow inorganically

• Niche growth areas for backwards integration and/or product portfolio completion

• Selected regional plays to improve market penetration

• Scale up digital software capabilities

1

2

3

4

5

Driving 3 Key Outcomes for Our Customers

Operational stability / reliabilityProductivity

IP protected specialty

chemicals

KEVIN CASSIDY


Engineered Systems

ENGINEERED SYSTEMS:

HELPING CUSTOMERS

ADDRESS THEIR TOUGHEST

WATER CHALLENGES


Solving customers' toughest water challenges

51

Key financials

2016 total sales: ~$1.6bn

Large backlog:

• Projects: $600m+

• Services: $1bn+

2016 Breakdown by subsegment

34%

33%

33%

ProductsProjects

Services

2016 Breakdown by region

Europe

Asia

Middle-East

Africa

Latin America

North

America45%

22%

11%

19%

3%


Providing full lifecycle water treatment

52

• Product development & domain expertise drive PRODUCTS

sales and build foundation for PROJECTS AND SERVICES

• PROJECTS pull through

Products combined with process

engineering expertise and work

with partner EPCs or utilize our

own capabilities to deliver a

complete solution and build

an installed base

• SERVICES pull through

Products combined with

engineering expertise, field

service, and fulfillment to build

a recurring revenue stream

• Combination of Products, Projects, Services, and Digital create

a complete LIFECYCLE offering and provides ongoing aftermarket

services to the installed base as well as expansion opportunities

Customer

Lifecycle

Lifecycle

Projects Services

Products

Opportunities to drive efficiency, reliability, and asset protection

through digital monitoring and predictive analytics across

all segments and product life cycles


Products: providing first-class equipment

53

Product portfolio

Key product Product capabilities

Membranes

• Water recovery and reuse

• Drinking water treatment

• Reverse osmosis pretreatment

• Compliance with environmental regulations

• Pressurized and immersed

Standard equipment

• Reverse osmosis: industrial water, seawater desalination, ultrapure water,

and wastewater applications

• Electroseparation: Food and beverage applications, whey separation,

glycerin desalting, fruit juice de-acid, ultrapure water, robust water /

wastewater treatment; high recovery

Analytical instruments

• Total organic carbon monitoring

• Regulatory compliance productivity and process control

• Pharmaceutical and semiconductor segments

Purification

& disinfection

• Purify water and wastewater with Ozone against chlorine resistant

micro-organisms and viruses. Ozone is an efficient treatment for removal

of micropollutants and Hard COD

• Robust membrane technology

• Low lifecycle cost for customers

• World-class production and fulfillment

Competitive advantage


Projects: a leading technology provider for integrated water projects

Key technology Technology capabilities

Membrane bioreactor

(MBR)

• Municipal and industrial wastewater treatment for reuse or discharge;

operating in a small footprint

Zero liquid discharge• Provide zero liquid discharge treatment solutions in water stressed areas

and treat the toughest water to meet the most stringent regulations

Anaerobic digestion• Recycle Municipal sludge, biosolids and industrial (or Food & Beverage

industry) bio-waste into methane and valuable by-products

Oil water separation• Equipment to separate water from hydrocarbon in Upstream

and Downstream/refinery Oil & Gas

• Integrate core product technology

• World-class process engineering expertise

• Global execution


54

Technology portfolio

CASE STUDY #2

MEMBRANE BIOREACTOR

KEVIN CASSIDY


Engineered Systems


57

Membranes, a key equipment in water systems

SUEZ is a world leader in membrane

bioreactor (MBR) technology with

over 1,000 plants installed across

the entire globe.

Increased productivity

Smaller footprint

Simplified design

Energy savings

Guaranteed reliability

ZeeWeed membrane...A key building block

in Membrane Bioreactors


58

Customer: a large petrochemical plant in Italy

Built in the late sixties, the plant became one of the most important facilities in Europe. Groundwater

started to be contaminated by heavy metals (arsenic, iron and manganese) and hydrocarbons.

With intervention from the authorities, the site was forced to reclaim the contaminated areas

Challenge

Customer was able to reliably treat its contaminated groundwater and reuse it as boiler make-up.

In addition, the water reuse plan helped the plant establish a more positive environmental image

in the local authority

Outcome

Providing a ZeeWeed membrane bioreactor system, which combines the proven activated sludge process

with the absolute barrier charateristic of ultrafiltration membranes

SUEZ solution

An example of application –Allowing reuse of water in a large industrial site


Services: a leading provider of water outsourcing

59

Mobile • One of the world's largest fleets of mobile water treatment systems, supplying any water

quantity and quality needed on a short-term, emergency, or commissioning basis

Build-own-operate• Wide range of applications including boiler feed water, desalination,

and water reuse serving industries and municipalities

Service deionization• Rental and regeneration of deionization resin vessels to customers

in the microelectronics, commercial and light industrial segments

Operating & Maintenance • Optimize the operation of customers' water assets

• Integrate core products expertise

• One of the largest global fleets of mobile assets

• World-class field service and fulfillment capabilities

• Financing capabilities


Key services Technology capabilities

Service portfolio

CASE STUDY #3

Water outsourcing

KEVIN CASSIDY


Engineered Systems


Providing a mobile trailer for nearly any situation

61

Delivering a wide range of water treatment solutions

for planned and unplanned events, including:

Emergency outages or equipment failure

Planned outages for equipment repair

Seasonal demands and product expansion

Plant start-ups

Changes in raw water quality

Sudden changes in effluent specifications

Augmentation/expansion of existing water plant

Regeneration and cleaning services

Drought and hurricanes


62

Rapid deployment of mobile assets

Production continuity, productivity gains

No capital investment to meet seasonal

demands

Reduced time and costs for repairs

and new plant or process startups

Guaranteed water quality and quantity

Extended asset life with high-quality water

treatment

Safe operation and regulatory compliance

A mobile trailer can be transported

and in service within hoursWhy choose SUEZ?

Pioneers in mobile water treament with the

largest fleet of more than 800 units in service

Water treatment can occur independent

from weather, limited resources and address

restrictions on municipal supply or discharge

Cost of owning complex technology means

that flexibility from Mobile Water treatment

can deliver tremendous value

Water purification outsourcing is growing

rapidly which reduces costs and improves

reliability

One of the leading providers of water treatment outsourcing


63

Customer: a 250 MW power plant in Western US

An example of application –Allowing savings thanks to our mobile solutions

Contaminant levels: unexpected 80% increase in the amount of total dissolved solids

Capacity: levels of wastewater productions much higher than anticipated, with ponds reaching maximum

levels after 3 years, while they were planned for 15 years

Challenges with their 3 evaporation ponds

Shutting down operations or de-rating until the excess of water could be hauled away in trucks,

which would be extremely costly

Initial solutions

Allowing the customer to save $20m

Outcome

Wastewater reuse and treatment to remove contaminants; entire system was delivered in just days

and functioned as self-contained operation in containerized water treatment units

SUEZ solution


Growth trajectory clearly identified

Develop new products Enter into new markets Bring new economic models

Translate design/build capability;

contract directly with end users - grow

installed base and service opportunity

Build and shape most attractive

segments: energy neutral,

tough-to-treat, Lithium, FGD

Expand standardization to reduce

design/engineering cost, improving

competitiveness in the mid-market

(Food & Beverage, Pharma,

cosmetics)

1

2

3

1

2

4

3

Expand mobile fleet-based

technology offerings: wastewater

with membranes…

Create funding capacity with external

financing to accelerate BOO

and O&M growth

Extend BOO and O&M reach

to include more industrial waste water

operations, refurbishments and asset

management

Drive additional services enabled

by digital

64

Innovate, incubate & commercialize

energy efficient technologies:

Zeelung, Ozone M Series, Alt brine

concentration

Advance core membrane

technologies: Next gen 500,

High flow RO, Sulfate removal NF

Expand instrument offering: new

segments beyond TOC; Endotoxin

Improve portfolio competitiveness;

design to value

1

2

4

3

Products Projects ServicesLead with Technology Grow Installed Base Drive Outsourcing

Strengthen the core

Build on core membrane,

water/wastewater & disinfection

product technology expertise

Focus on strength of core WTS

technology & product portfolio

with selective EP+C scope

Improve utilization in mobile,

drive recurring revenue streams

(BOO, Industrial O&M)

RALPH EXTON

Chief Marketing Officer

of Water Technologies & Solutions

A LEADING DIGITAL

PLATFORM

UNDERPINNING

GROWTH STRATEGY


A leading digital platform driving value creation

67

Increased customer collaboration

Faster proposal generation

Elevated on-site service

Streamlined fulfillment

Utilize data and advanced analytics

Optimize performance of customer assets

Automate data collection and reporting

24/7 digitized access

Customized solutions

eCommerce

Customer engagement

Customer asset/plant

management

Workforce & supply chain optimization

Workforce & supply chain

optimization

Asset performance

management

Customer engagement

Digital tools to enhance productivity and maximize value


Strong value proposition to customers enabling asset protection, predictive maintenance,

and improved overall system efficiency

Deepens customer relationships and increases retention

Enhanced top and bottom-line growth through an integrated thread of digital platforms and initiatives

68

Driving growth and profitability via digitalization

InSight APMeCommerceWebsite

• Operate assets at the

highest levels of reliability,

efficiency and output

• Modernize the B2B

buying experience

• Leverage digital marketing

to generate leads and drive

revenue


InSight APMInSight is an Asset Performance Management solution that uses data

and analytics to ensure assets operate at the highest levels of reliability,

efficiency and output

A leading digital platform driving client retention

active assets under management

c. 50,000customers connected

4,000+

Industries served20+

countries served75+

Agnostic

IoT connectivity

Visualize, trend,

alert, report Cloud-based,

analytics driven

CONNECT

PREVENT

PREDICT

69


Delivering financial value and outcomes

71

Lead with best-in-class digital innovations that enhance

customer experiences, generate profitable business growth,

and drive business productivity

Leadership & differentiationBe recognized in the Water market

as an innovative digital leader

Customer experienceDrive customer loyalty by enhancing

quality and reliability with digital tools

and initiatives

Top line growth & cash flowLeverage digital to generate

incremental revenue and improve

cash position

Bottom line productivityDeliver efficiencies through digitized

self-service, advanced manufacturing,

and digital engineering tools

for our customers

HEINER MARKHOFF


POISED FOR GROWTH

IN EMERGING MARKETS


73

Growing emerging markets to more than $1.1bn by 2020

Key

Chemical Monitoring Solutions (CMS)

Engineered Solutions (ES)

Combined

Europe

North America

Asia Pacific

$1.2bn

$0.6bn

$0.5bn

MEALATAM

$0.2bn$0.2bn

WT&S revenue split by region


Example: India is increasingly a key growing market

74

Rapid growth in population,

urbanization & industrialization leading

to increase in water requirements

Twofold increase in industrial water

demand expected in the next 15 years

(~50,000 million liters per day)

<50% of industrial wastewater

is currently treated

Sound market drivers A market growing by more than 15% p.a.

over the coming years


Long & recognized experience in India: >450 projects executed over more than 30 years

Strong local capabilities: ~ 650 local team with 4 manufacturing facilities & R&D center

Significant market share & strong presence in heavy industries

(Power, Refinery & Metals) and Food & Beverage sector

Comprehensive solution provider

Driving the adoption of advanced technologies: localized membrane manufacturing

& technology based products and integrated zero-liquid discharge solutions

Leading Water & Process Chemicals solutions provider for Utilities

(Cooling, Boiler, wastewater) & Crude Oil processing

Center of excellence for Engineering and Digital technologies for global requirements

Longstanding presence in the country

75

and deep knowledge of local dynamics

Driving strong double digit growth in India

AN UNPARALLELED

EXPERTISE IN THE FAST

GROWING INDUSTRIAL

WATER MARKET

HEINER MARKHOFF



An unparalleled industrial water platform

77

Field

Services and

Engineering

1 Addressing a >$100bn market expected to grow by 5%

2 Operating in key growing industrial verticals with large blue-chip client portfolio

3 Global footprint - Global capabilities with regional execution to deliver

4 Leading presence across the entire industrial water value chain

Strengthen the global leadership position

in the water technologies and solutions sector

5 Solid business model built for profitable growth

Q&A SESSION

MARIE-ANGE DEBON



WATER TECHNOLOGIES & SOLUTIONS:

A GAME CHANGER

FOR SUEZ COMMERCIAL

DEVELOPMENT


Accelerating Group strategic priorities

80

Industrial clients

International

development

Accelerating the trajectory through two levers:

top-line synergies & key account management

x2 large industries

revenues x5 Industrial

water revenues

+38%of revenues

generated

internationally

MARIE-ANGE DEBON



DERIVING SIGNIFICANT

TOP-LINE SYNERGIES


Breakdown of synergies by initiative

Cross training of services

and product

Proper incentive mechanisms

Key accounts and market drive

Regional leadership

to develop synergies

Enhanced business offerings

Marketing & communications

More than $750m of opportunities identified

82

15

200

2019

300

20182017

250

2020

400

300

50

Forecasted

orders funnel,

$m p.a.

Orders funnel

$m p.a.

Total of initiatives identified

Initiative description

Combined offering1

Cross-selling2

Insourcing3

>$750m of opportunities identified,

spread over more than 300 projects

In $m

>$750m

>$750m

Target: achieve 200m euro p.a.

in top line synergy by 2022

Total of opportunities identified

Key enablers required to implement initiative

Support from:

Commercial operations

Specialized sales

SUEZ Group procurement

Digital as a business

enabler


83

By marketsBy nature

Achieve 200m euro p.a. in top line synergies

51%

36%

4%

6%3%

20%

13%

3%

11%8%

5%1%

12%

1%

26%

Products

Projects

Services

ChemicalsDigital

O&G

Chemical

& Pharma

EPC

F&B

Mining & MetalsMicroelectronic

P&P

Other

Automotive

Municipal

A well diversified portfolio of synergies opportunities


Segment Amount

Insourcing

Several areas of potential in SUEZ plants well underway

Anticorrosion, antiscalant, digital monitoring in Energy-from-Waste in Europe & Asia CMS

Membranes, membrane chemicals and wastewater treatment chemicals for desalination

and wastewater treatment plantsES+CMS

Combined offerings

3 dimensions: GE Water + SUEZ IS, WTS + R&R Europe, WTS + Municipal

Municipal water client in America – Technologies for Anaerobic Digestion and O&M ES $7-15m

Eurasia industrial water client – Ultrafiltration, reverse osmosis and Zero-liquid discharge ES $20m

Power client in India – Zero-liquid discharge and pretreatment ES $30-40m

Power clients in Europe – WTS newly referenced thanks to a broader range of capabilities

in WTSCMS >$10m

Cross-selling:3 dimensions: GE Water + SUEZ IS, WTS + R&R Europe, WTS + Municipal

SUEZ municipal water client in China – Ozone and membranes ES $4-5m

US oil & gas clients – Chemicals and BOO ES+CMS $3m

84

Significant progress in extracting revenues synergies,

with encouraging quick wins

KEY ACCOUNTS

MANAGEMENT

MARIE-ANGE DEBON




Lower environmental footprint:

Lower CO² emission

Lower energy consumption

Reduce water consumption

Increase waste recovery

Increasing client demand for integrated offers…

Common drivers

of demand for

waste and water

offers

86


Success factors

for key account

approach

Create for each market,

a more comprehensive

offer to our customers

Strengthen

our relationship

with key customers

Foster water & waste

cross-selling

Become trusted

points of contacts

at global level and

throughout our BUs

Better understand

customers’ needs

to develop tailored &

differentiating solutions

Global answers

provided

by capitalizing

on our global footprint

Close internal

coordination

to guarantee level

of services globally

Build innovative

integrated

solutions

that can be scaled

over the market

Significant

performance

contribution

and cross-selling

opportunities

87

… highlighting the need for

an integrated KAM approach


7 Regional KA led by R&R Europe

13 Regional KA led by WTS

Local & National accounts led by BUs

Experts support

Marketing & Commercial Support

An enhanced global KAM structure to drive innovative offering

88

Chemical

& Pharma.Oil & Gas

Food &

BeveragePower Construction

Pulp

& Paper

Mining &

Metallurgy

EXECUTIVE

SPONSORS

REGIONAL KA

Activity Level

NATIONAL KA

GLOBAL KA

Group Level

22 Global Key Accounts


89

Unlocking the potential of our presence

in all key industrial markets

WATER ~ €2.0bn

WASTE ~ €1.5bn

WATER ~ €0.5bn

WASTE ~ €1.5bn

Power

Chemical &

Pharmaceutical

Construction

Mining &

Metallurgy

Oil & Gas

Food & Beverage

Pulp & Paper

Total

revenue

€1.9bn

Total

revenue

€3.5bn

Chemical &

Pharmaceutical

Power

Construction

Mining &

Metallurgy

Oil & Gas

Food & BeveragePulp & Paper

Before integration After integration


Supplying paper for recycling with adapted quality

Recovering fiber along production process

Minimizing waste production

Full recycling of all valuable waste streams

Securing the supply of high quality water and reuse water

Securing water discharge with global effluent management

Supplying green fuels

Optimizing energy recovery from your effluent

Case study: seize new opportunities

90

A fully integrated

company positioned

on the whole recycling

paper value chain,

with activities

in plastics packaging.

114 sites in

8 European countries,

8,064 employees

Sustainable

energy sufficiency

Zero

residual

waste

100% Fiber optimization

Water

neutral plant

KEY ENVIRONMENTAL CHALLENGES

SUEZ solutions

with a large pulp & paper customer

CHRISTOPHE CROS

SUEZ Chief Financial Officer

WATER TECHNOLOGIES

& SOLUTIONS:

AN UNPARALLELED

EXPERTISE ENHANCING

SUEZ’ VALUE CREATION


A strategic acquisition financed via a well balanced structure which: Preserves SUEZ strong investment grade profile (rating A3 confirmed Moody's)

Maintains the Group’s financial flexibility to support development ambitions

92

WTS70% 30%

Transaction structure Key financing terms

€680m equity provided by CDPQ

€750m capital increase in May 2017

€600m hybrid bond in April 2017 at 2,875%

€1,200m senior unsecured bond in March 2017:

- €500m maturing in 2025 at 1.0%

- €700m maturing in 2029 at 1.5%

WATER

Industrial Solutions

Transaction structure set to preserve SUEZ financial flexibility


2016 revenue(1) ($bn)

273 8 281

0

100

200

300

GE Water SUEZ IS WTS

93

2.1

0.5 2.7

0,0

1,0

2,0

3,0

GE Water SUEZ IS WTS

Overview of 2016 pro-forma figures for WTS

2016 EBITDA(1) ($m)

3.0

2.0

1.0

0.0



Key 2016 unaudited pro forma indicators(1)

94

27%

35%

23%

14%

EBIT CAPEX

42%

25%

28%

9%

€2.90bn

39%

21%

39%

11%30%

26%

32%

11%

Revenue EBITDA

International

Water Europe

Recycling &

Recovery Europe

Water Technologies

& Solutions

Others

International

Water Europe

Recycling &

Recovery Europe

Water Technologies

& Solutions

Others

International

Water Europe

Recycling &

Recovery Europe

Water Technologies

& Solutions

Others

International

Water Europe

Recycling &

Recovery Europe

Water Technologies

& Solutions

Others

€17.3bn

€1.44bn €0.80bn

-10%

-4%

1%

1%



95

WTS: already fully integrated to the Group

and ready to deliver synergies

Brand transition

from GE Water to

WT&S well ongoing

Management teams already

in place, leveraging on both

GE and Suez talents

Functional processes

and systems integration

on track

Joint go-to-market already

in motion, leveraging

GE Water expertise

GE WATER

INTEGRATION

MILESTONES

ACHIEVED


Confirmed revenue and cost synergies

96

Implementation costs €65m over 2017-19

Cost synergies

Manufacturing

Engineering

Service operations

Purchasing

SG&A

€65m of EBITDA p.a. by 2022

of which 80% by 2020

Run-rate identified Sources of synergies

Synergies to contribute €90m to EBITDA by 2022

€200m of revenues p.a.,

representing more than €25m

EBITDA contribution by 2022

Revenue synergies

Significant revenue synergies from

cross-selling industrial water

activities leveraging on SUEZ

geographical footprint

Additional cross-selling opportunities

to be derived from waste activities(1)

(1) Not factored in synergy figures


Full benefit of cost synergies by end 2022

97

COST SYNERGIES DELIVERY TIMELINE

COST SYNERGIES IMPLEMENTATION AREAS

Q4 2017 2018 2020 2022

c. 5% of target c. 25-30% of target 80% of target100%

of €65m target

Purchasing SG&A Service operations Manufacturing Engineering

• Systematic SUEZ

volume consolidation

• Accelerate product

management / Design to

Costs initiatives &

leverage across entire

portfolio

• Function by

function blueprint

towards good

practice

• Leverage Group

scale

• Best in class global

mobile and field

service

• Align products

portfolio & supply

chain

• Combination

of manufacturing

sites of CMS

• Leverage

manufacturing

excellence

• Best in class global

projects engineering

network

Full benefit of costs & revenue synergies realized by 2022

c. 80% of cost synergies to be generated by 2020


Key early wins support mid-term targets

98

Amount Status

Sourcing

Categories reviews ongoing $5m p.a. Achieved

Supply chain

Sites restructuring

(e.g. joint offices in China and South East Asia)c. $1m p.a. Achieved

Manufacturing - capacity sharing & insourcing opportunities (Canada) c. $1m p.a. Achieved

Service operations

Mobile assets managed as single pool, leading to increased utilization

& optimized investmentsAchieved

Optimize number of sites in ES c. $5m In-progress


Confirmation of mid-term guidance for WTS

99

EBITDA to grow

faster than revenueEBITDA

EBITDA margin

to improve gradually

Expected mid-single

digit revenue growthTopline growth

Reach >$3.1bn revenue by 2020

Revenue synergies phasing included

in the top line growth

Attractive

cash conversion

profile (>70%)Cash conversion Low capital intensity


Confirmation of value creation objectives for the Group

100

WTS ROCE above SUEZ WACC in 2020ROCE

Double-digit accretion based on run-rate cost synergies

EPS accretion in 2018(1)

EPS

Positive FCF as soon as 2018(1)FCF

(1) Excluding integration costs


21.9x 21.5x18.1x

22.1x

0

5

10

15

20

25

Xylem Ecolab Kurita Evoqua

12.5x10.0x

0

5

10

15

2016 EBITDA 2016 EBITDA + costsynergies

EV/EBITDA FY+1 (2016) Today (2017e)

EV/Op Cash flow FY+1 (2016) Today (2017e)

Compelling valuation confirmed by peers multiples

101

Synergies

Acquisition multiples Peers multiples

17.0x 16.0x

9.0x

16.0x

0

5

10

15

20

Xylem Ecolab Kurita Evoqua

17.4x

12.8x

0

5

10

15

20

2016 Op CF 2016 Op CF + costsynergies

Synergies


WTS contribution in Q4 2017:

Revenue: $550-600m

EBIT: > $50m

Full-year 2017:

Transaction costs of €40m, below EBIT

WTS contribution in 2018:

Revenue: c. $2,800m (+3-4% gross variation), supported by 4% growth in orders in 2017

EBITDA: c. $290m, including $20m of transitory costs

EBIT: c. $200m, including $20m of transitory costs(2)

c. $80m of integration costs booked below EBIT

102

2018: dedicated to the implementation

of the value capture program(1)

(1) Combination of GE Water and SUEZ Industrial Solutions, including best estimates of US GAAP conversion into IFRS

(2) Excluding purchase price allocation, to be set by the end of H1 2018


103

1 WTS, a new business unit to enhance growth and financial profile of the Group

2 Confirmation of attractive mid-term guidance (revenue, margin, cash)

3 WTS already fully integrated to the Group and ready to deliver

4 Significant revenue and cost synergies confirmed

5 Compelling valuation confirmed by further increase in sector multiples

6Strong value creation for SUEZ shareholders at EPS,

ROCE and FCF level

WTS: a unique platform to boost value creation

JEAN-LOUIS CHAUSSADE

CEO of SUEZ

ACCELERATING

OUR TRANSFORMATION


Building a global leadership position in industrial water

105

WTS and SUEZ Group Commercial and cost synergies

Meet financial targets Driving growth with key accounts

Value capture

Leverage SUEZProfitable growth

Integration


Growing the company around two strategic pillars

106

Delivering

value-added

services and

solutions

Leverage

know-how

to manage

infrastructures

World-class portfolio of products, services and solutions

Differentiating offers through our innovation capabilities

Low capital intensity segment

Large perimeter of expertise and complexity of projects

limits competition

Long-term and profitable contracts

Opportunities to extend this business models to new

areas: irrigation networks and dams, BOO for

industrials, large organic waste to energy facilities

Q&A SESSION

THANK YOU!


Sophie Lombard

E-mail: [email protected]

Tel: + 33 (0)1 58 81 24 93

Julien Desmaretz

E-mail: [email protected]

Tel: + 33 (0)1 58 81 24 84

SUEZ

Tour CB21 – 16, place de l'Iris

92040 Paris La Défense Cedex

Contacts

109

Financial communication

APPENDIX


An international and experienced leadership team composed

111

CEO

Heiner MARKHOFF

Chemical & Monitoring

Solution (CMS)

Amy ERICSON

Engineered Systems (ES)

Kevin CASSIDY

CMS Europe leader

& Europe

integration

Julien ROJO

CMS North America

Nancy WHITE

Global Products

Thomas BUER

Global Services

Karine ROUGE

Global Projects

Gabriel TOFFANI

Global Sales

Chris JEFFERY

Business development through 4 regions

Greater China

Tim HUANG

Latin America

Eduardo PAVANI

India, Asia, Pacific

Hoshang

SUBAWALLA

Middle-East, Africa

Pierre PAULIAC

Myron VAN ERT

8 transversal functions

Finance: Mamta PATEL

Value Capture: Stéphane BOYER

HR: Brian DAVIES

Sourcing: François BACALOU

Marketing, Communication,

Strategy, Business Development

& Digital:

Ralph EXTON

Supply Chain/Manufacturing:

Istvan ZSIRAI/Martin KOSTO

Legal and Ethics:

Deborah LLOYD

Technology and Innovation:

Tom STANLEY

IT: John KOCHAVATR

of key talents from GE’s former water business and SUEZ

water technologies & solutions: boosting the group …

Documents