Séché Environnement 2017 Consolidated results Meeting of March 6, 2018
Joël Séché Chairman and CEO 2017: FINANCIAL RETURNS AND STRATEGIC ACHIEVEMENTS Consolidated results 2017 - Meeting of March 6, 2018 2
2017: Dynamic development strategy Solid financial performance Strength of the external growth strategy • €70m in acquisitions in France on the NHW* markets and outside France on the HW* markets • Substantial contribution to revenue and operating income beginning in 2017 Solid activity within the historical scope • Markets driven by the economic environment • Increase in new recycling and treatment capabilities Growth in current operating income: • Increase in COI within the historical scope at 7.7% of contributed revenue • Good current operating income in the new scope at 8.2% of revenue Improved financial solidity in H2 • Free cash flow strongly positive and substantial decrease in net debt • Financial leverage reduced to 3.3x * NHW: Non Hazardous Waste HW: Hazardous Waste Consolidated results 2017 - Meeting of March 6, 2018 3
Hazardous Waste Markets: Robust activity in France and acquisitions abroad France: deployment of commercial offerings International services: Acquisition of Solarca � Recovery: � Industrial maintenance activities with a core target � Bromine: Doubling the authorized capacity and major customer base (energy, etc.) contract with a European chemical company � Commercial deployment to the Middle East and � Treatment: Asia: Accompanying existing clients and winning � Salaise 4 platform: Stronger positions with diverse over international clients industrial clients � Class 1: Increased sustainability by extending permits to Changé facility on the long term � Services: � Medical waste markets: Fast business growth � Radiation Protection: Integration into service activities (comprehensive solutions, decontamination, etc.) Chile: Acquisition of SAN (class I) Peru: Acquisition of Taris (class I) and implementation of Kanay synergies (Haz.Waste � Consolidating operations: improving processes ("stabilizing" procedures) and strengthening the incineration) sales strategy (class 1) � Setting up common management under the � Deploying new treatment offerings (acid waste from authority of the CEO of Kanay mining clients) � Industrial and commercial integration: complementary facilities and business lines Consolidated results 2017 - Meeting of March 6, 2018 4
Non-Hazardous Waste Markets: Stronger positions in the circular economy Expansion of the geographical network in Growth and innovation in the recovery the "Grand Ouest" region business lines � Created the SEO division by acquiring 3 � SRF energy recovery: startup of LEN companies: contract � Strengthened the geographical network in DESYOUEST farming Brittany, Pays de la Loire, and Vendée cooperative Boiler Energy recovery � Geographically and industrially Hot water 77° plant complementary with SEI, Triadis, and Alcéa sites Hot water � Development of local solutions for 117° Laval governments and businesses (treatment, heating recovery, and services) system Recovered waste (biogas and SRF) Public utilities and district heating � Materials recovery: ramping-up of Changé sorting center � Volume effects: Technical performance and capturing the market � Goals: Sorted volumes +50% and recovery of non-recyclables (SRF) Consolidated results 2017 - Meeting of March 6, 2018 5
Operational and financial performance meets expectations Contributed revenue +11% to €512m COI +16% to €40m, i.e. 7.8% of contributed revenue Net income (Group share) +293% to €15.4m, i.e. 3.0% of contributed revenue Bank covenants under control with financial leverage of 3.3x and gearing of 1.3x Consolidated results 2017 - Meeting of March 6, 2018 6
2018: Priority given to selective growth Growth Profitability Cash generation • France • Increase in capabilities • Selectivity of CapEx • Strong performance by • Recovery: Bromine, SRF • Development divisions: investments limited • Treatment: • Steady HW markets Contribution from • Maintenance platform activities investments stale • Solid NHW markets • Business momentum in recovery and services • Actions on operational • Strengthening the levers financial structure • Availability of tools • WCR under control • International • Cost control • financial structuring to • LatAm: Promising aid development markets (Chile, Peru) • Process improvement • Rest of the World: Implementing • Generating free cash commercial synergies flow with Solarca An "Investor Day" will be held at June 26, 2018 that will detail the strategic plan and the development prospects Consolidated results 2017 - Meeting of March 6, 2018 7
Baptiste Janiaud Chief Administrative and Financial Officer ECONOMIC AND FINANCIAL PERFORMANCE IN 2017 Consolidated results 2017 - Meeting of March 6, 2018 8
Key figures 2017 Audited consolidated IFRS data Contributed revenue 460.1 100.0% 511.9 100.0% +11% +2% EBITDA 89.1 19.4% 98.1 19.2% +10% +0% Current operating income 34.4 7.5% 39.7 7.8% +16% +5% Operating income 26.2 5.7% 37.3 7.3% +43% +31% Financial income (10.7) - (13.6) - - - Net income (Group share) 3.9 0.8% 15.4 3.0% +293% +295% Net industrial CapEx paid (excl. IFRIC) 51.4 11.2% 57.1 11.2% +11% - Gross cash flow 11.1 2.4% 64.4 12.6% +481% - Net banking debt 279.0 - 325.8 - +17% - * At constant scope and exchange rates Consolidated results 2017 - Meeting of March 6, 2018 9
Change in reported revenue: +11.8% Audited IFRS data in €m 534.5 4.5 Non-contributed revenue: €22.6m 7.2 0.2 22.6 (vs. €18.1m at 12/31/16) 29.2 Organic growth Contributed revenue: €511.9m (vs. €460.1m at 12/31/16) 15.2 +11.3% gross 478.2 +1.6% at constant scope 511.9 18.1 Scope effects: +€44.4m Change in contributed 460.1 revenue Organic growth in line with forecasts: � HW: Industrial markets bolstered by the economic recovery, but unfavorable 2016 comparison basis � NHW: Solidity of local government contracts NHW Scope HW division NHW Non- 12/31/2016 scope effect (organic*) division contributed 12/31/2017 (reported) effect HW (organic*) revenue (reported) * At constant scope and exchange rates Consolidated results 2017 - Meeting of March 6, 2018 10
A Group that is becoming more international: International revenue at 11% contributed revenue Breakdown of contributed revenue by geographic area International: €55.6m in revenue, or +163% (gross data) 31.0 24.6 Scope effect: +€31.0m 21.1 13.4 � Treatment: +€6.1m � Services: +€24.8m At constant scope: Revenue up +17.4% � Spain: Strength in recovery activities International - scope (regenerating solvents) effect � Argentina: PCB "spot" contracts International - constant scope Insignificant forex effect France - scope effect 443.0 439.0 France: €456.4m in revenue, or +3.9% (gross data) France - constant scope Scope effect: +€13.4m � Treatment: €9.1m � Energy recovery: €1.1m Audited IFRS data in €m � Services: €3.2m At constant scope: Revenue +0.9% - Unfavorable basis of comparison from H2 2016 2016 2017 Consolidated results 2017 - Meeting of March 6, 2018 11
Change in activity at constant scope: Strong base effect in Q4 Audited IFRS data in €m Audited IFRS data in €m Change in HW revenue per quarter Change in contributed revenue per quarter (at constant scope and exchange rates) (at constant scope) -10.6% +11.1% +4.8% -2.1% 86.7 2016 -2.0% 77.2 77.5 73.5 2017 69.5 70.1 70.2 68.6 Q1 Q2 Q3 Q4 +5.7% +3.6% Audited IFRS data in €m 2016 Change in NHW revenue per quarter 2017 126.9 (Contributed revenue at constant scope) 124.4 -0.1% +16.6% +1.4% +3.5% -3.5% 116.6 116.0 110.8 112.1 2016 110.7 110.3 40.8 42.1 46.8 42.5 41.9 2017 39.4 40.7 40.1 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Consolidated results 2017 - Meeting of March 6, 2018 12
Contribution of activities to growth in contributed revenue (constant scope) Audited IFRS data in €m Treatment Recovery Eco-Services +€6.1m +€8.6m €(7.4)m +0.3 +1.4 (11.6) +8.3 467.5 (0.7) +0.9 +2.7 +6.4 460.1 Arbitrage of Strong 2016 waste mix basis (2.5) +2.0 Strong 2016 basis NHW HW NHW Incineration Other Material Energy Global Decontamin Other incineration 12/31/2016 storage storage and HW treatments recovery recovery offers -ation Services 12/31/2017 and platforms recycling Consolidated results 2017 - Meeting of March 6, 2018 13
Increase in EBITDA: +10.1% in gross data Details of effects Audited IFRS data in €m Audited IFRS data in €m Scope Maintenance- Variable 98.1 effect Repairs and operational Price employee expenses Volume Property Structural effects expenses effects 2.0 (1.7) ownership tax expenses 9.4 0.8 89.1 (2.2) 2.7 (1.9) Development charges related to the change of scope (staff) Operational EBITDA EBITDA 12/31/16 12/31/17 Scope effect: €9.4m (21.2% of revenue) � France: €3.4m (25.4% of revenue) � International: €6.0m (19.4% of revenue) Consolidated results 2017 - Meeting of March 6, 2018 14
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