ACTIVITY AND RESULTS SIGNIFICANTLY ABOVE
2020 LEVELS AND LARGELY ABOVE 2019
VEOLIA IS AHEAD OF ITS OBJECTIVES AND IS
HEADING TOWARDS A RECORD YEAR OF PROFITS
2021 OBJECTIVES RAISED:
EBITDA TARGET RAISED FROM MORE THAN €4BN TO
MORE THAN €4.1BN
COMBINATION WITH SUEZ : ON 29 JUNE,
RECOMMENDATION OF VEOLIA TENDER OFFER BY SUEZ BOARD AND BINDING
OFFER ON NEW SUEZ FROM THE CONSORTIUM MERIDIAM-GIP-CDC/CNP FOR
€10.4bn
OPENING OF THE TENDER OFFER ON SUEZ AT
€19.85€1 DIVIDEND INCLUDED SINCE JULY 29th
*******************************
- REVENUE OF €13 645M, UP+11.2%2 vs. H1 2020 AND UP +4.6%2 vs.
H1 2019
- VERY STRONG EBITDA GROWTH, TO €2 081M, AN INCREASE OF
+31.4%2 vs. H1 2020 AND OF +6.2%2 vs. H1 2019, THANKS TO GOOD
COMMERCIAL MOMENTUM IN ALL BUSINESSES, AND TO €204M EFFICIENCY
GAINS AHEAD OF THE ANNUAL TARGET OF €350M
- CURRENT EBIT OF €901M, MORE THAN DOUBLED vs. H1 2020 AND
INCREASED BY +7.8%2 vs. H1 2019
- NET CURRENT INCOME GROUP SHARE OF €516M, STRONGLY UP +49%2
vs. H1 2019
- 2021 EBITDA GUIDANCE RAISED FROM MORE THAN €4.0BN TO MORE
THAN €4.1BN
Regulatory News:
Veolia (Paris:VIE):
Antoine Frérot, Veolia’s Chairman & CEO commented:
«Veolia achieved record results in the first half of 2021. All our
operational and financial indicators have registered outstanding
growth, both compared to 2020 and to 2019. At the beginning of the
year, I had announced that Veolia’s performance in 2021 would be
above 2019. With revenue up by +4.6%, EBITDA growth of +6.2% and
current net income increasing by +49% compared to the 1st half of
2019, we are very much ahead of this objective and are starting the
second semester at full speed, thanks to the adaptation measures
put in place early on to overcome the effects of the sanitary
crisis as quickly as possible.
These absolutely remarkable results and the much better than
expected level of activity notably thanks to our innovation
capabilities, allow us to raise our 2021 objectives and to now
target an EBITDA of more than €4.1 billion for the full year.
I am therefore very confident for the second part of the year. I
am also very proud of the Group’s collective capacity to bounce
back strongly, and I want to warmly thank all Veolia employees for
their unfailing commitment.
It is this collective strength that has enabled us over the past
few years to raise Veolia’s performance ever higher. Just as Veolia
is about to acquire Suez, the Group has never been in better shape.
On July 29th, a new step forward was taken with the opening of our
tender offer for Suez shares. By the end of the year, the operation
should be finalized and we will give birth to the undisputed world
champion of ecological transformation».
1
i.e. €20.5 per share including the €0.65
dividend detached on July 6th 2021
2
Variation at constant exchange rates
*******************************
- Very strong growth of revenue in H1 2021 : revenue of €13
645M compared to €12 412M in H1 2020, an increase of +9.9% at
current exchange rates, of +11.2% at constant exchange rates and of
+10.4% at constant scope and exchange rates.
Compared to H1 2019, revenue increased by +4.6% at constant
exchange rates.
In the first half of 2021, Veolia’s activity progressed
significantly and continued to benefit from the adaptation measures
put in place in March 2020 to face the sanitary crisis.
At constant exchange rates, Q2 revenue growth vs. 2020
accelerated to +19.7 %, after +4.0 % in the 1st quarter, due to the
lower comparison basis of Q2 2020, most penalized by the sanitary
crisis.
Compared to 2019, at constant exchange rates, after +2.8% in Q1,
revenue increased by +6.5% in Q2, with notably an acceleration in
Global business (Hazardous waste activities, Water technology and
networks), in Europe (UK, Germany) and in the US.
Exchange rates variations unfavorably impacted revenue growth by
-1.3% (-€160M).
Scope effect was +€108M. Growth in Central and Eastern Europe
(Czech Republic and Hungary mainly) and in Global Business (Osis
acquisition) more than offset the divestiture of Sade Telecom and
of the cleaning business in Singapore.
Energy prices (heat and electricity) had a favorable impact on
revenue of +€68M, and recycled material prices of +€206M, of which
+€144M for paper and cardboard.
Weather effect was a positive of +€83M
The Volumes/Commerce was very positive, +€761M, or +6.1% on the
Group’s revenue growth, thanks to the strong commercial momentum,
the recovery of waste volumes, both hazardous waste and commercial
and industrial, and the rebound of works.
Service prices continued to be well oriented, leading to a
favorable impact of +€167M on the Group’s revenue, or +1.3%.
By geography and at constant exchange rates, the evolution over
the 1st half is as follows
- In France, revenue grew strongly, by +14.2 % vs. H1, 2020, and
by +3.1 % vs. H1, 2019, to €2 844M. Both Water and Waste activities
recorded a strong growth. Water revenue increased by +6.5%, thanks
to works recovery. Water works had in effect been significantly
penalized in H1 2020 due to the sanitary crisis. Water volumes were
up +0.6% and tariffs +0.7%. Waste revenue grew sharply, by +23.5%
vs. H1, 2020, including a catch-up effect as H1 2020 was penalized
by the lockdown impact on commercial and industrial activities in
France (mid-March to end of May 2020). Waste volumes were up +9.5%
in H1 and prices up +3.6%. Waste activities also benefited from the
strong increase of recycled materials prices (+8.0 % impact on H1
waste revenue in France, with average recycled cardboard prices of
€144/ton in H1 2021 vs. €49/ton in H1 2020). Revenue growth was
also very significant vs. H1 2019, +6.9%.
- Europe excluding France also exhibited strong growth, with a
revenue of €5 278M, up +14.2 % vs. H1, 2020 and up +11.4 % compared
to H1, 2019. This progression is mostly attributable to Central and
Eastern Europe, up by +25.6 %, mainly in the Energy business,
thanks to favorable weather, increased heat and electricity prices
and the integration of new assets in Prague et Budapest. UK (and
Ireland) grew by +6.6%: PFI facilities performed very well, showing
an average availability rate of 93,1 %, C&I volumes picked up
strongly and recycled materials prices increased significantly.
Germany waste activity rebounded thanks to C&I volume catch up
and recyclate prices. Scandinavia and the Netherlands recovered as
well, thanks to good commercial performance with industrial clients
and strong plastic recycling activity. Italy and Spain grew by
+11.8% with new contracts and works recovery.
- Rest of the World revenue came out up +4.0% compared to H1
2020, to €3 310M. All geographies progressed, except Pacific,
slightly down (-3.0%) due to asset divestitures in Energy.
China-Hong- Kong revenue increased by +5.6% with a strong
performance of all the businesses. Japan was stable due to the end
of some construction contracts, but exhibited a strong commercial
momentum with the signing of many significant contracts of which
the 1st potable water concession in Miyagi for a total backlog of
close to €800M over 20 years. Latin America grew sharply, by
+16.3%, driven by well oriented volumes and prices in water and
waste. North America resumed growth, +2.2% in H1 after a decrease
of 2.9% in Q1, thanks to good hazardous volumes and price
increases. Africa Middle East growth accelerated in Q2 to +9.2%,
after +1.6% in Q1, with good volumes throughout the entire
region.
- Global businesses recorded a very strong rebound in the 2nd
quarter, reaching a total revenue of €2 211M in H1, up +17.5 % at
constant scope. Construction activities were up +17.5 %, including
+14.1% for Veolia Water Technologies and +21.7% for SADE at
constant scope (restated of the divestiture of SADE Telecom).
Indeed Q2 2020 was harmed by several construction works stops, in
the peak of the sanitary crisis. Construction activities are also
up compared to 2019, by +5.2%. Hazardous waste continued to
progress strongly, up +25.9 % vs. H1 2020 and +9.8 % vs. H1 2019.
This activity continued to deliver strong growth in all our
geographies which confirms the validity of our strategic choices.
Industrial and energy services have recovered after the trough of
H1 2020 and are up +17.8%.
By business, at constant scope and exchange rates, the evolution
over the 1st half is as follows:
Water revenue increased by +3.5%: volumes were up by 0.6% in
France and stable in Central and Eastern Europe and works activity
resumed in France. Water Technology and networks grew sharply, by
17.5%, thanks to commercial momentum and a favorable comparison
basis. Waste revenue increased by +13.7%, including volumes up
+6.3%, continued well oriented prices (up 2.6%), and the impact of
higher recycled material prices (+4.4% effect). By quarter, volumes
were about stable in Q1 (-0.9%), accelerated in Q2 (+14.5%),
including a favorable comparison basis. The effect of higher
recyclate prices was amplified in Q2 to +5.7%, after +3.2% in Q1.
Energy revenue increased by 19.5% and by 10.3% at constant scope
and exchange rates, with a favorable weather impact of +2.4%, and a
heat and electricity prices impact of +2.7%.
- Strong growth of EBITDA to €2 081M vs. €1 599M in H1 2020,
an increase of +31.4 % at constant exchange rates vs. H1 2020 and
of +6.2% vs. H1 2019.
- Exchange rates variations unfavorably impacted EBITDA by -€20M
(-1.3%) while scope had a positive effect of +€66M (+4.1%).
- Solid growth of revenue vs. H1 2019 translated into a good
operating leverage effect at the EBITDA level with an EBITDA margin
increase of 0.3 point vs. 2019 and of 2.4 point vs. H1 2020. The
strong growth of EBITDA was driven by higher volumes and activity
level for +€272M (+17% impact), by efficiency gains for €204M,
ahead of the annual objective of €350M (+12.8% impact on EBITDA
growth in H1), by favorable weather impact of +€28M (+1.8%), by
higher recyclate and energy prices for +€50M (+3.1%) and finally by
a price cost squeeze effect of -€119M (-7.4%).
- Current EBIT more than doubled to €901M vs. €438M in H1
2020.
- Exchange rates variations weighed in for -€10M.
- Current EBIT growth of €473M at constant FX came entirely from
EBITDA growth. Depreciation and amortization (including operating
financial assets reimbursement) increased by €41M to €1 095M.
Provisions, fair value adjustments and industrial capital gains
amounted to +€10M vs. -€16M in H1 2020, but are stable compared to
2019. Provisions had temporarily increased in H1 2020 due to
sanitary crisis. Current net income from joint ventures and
associates progressed by €8M to reach €48M, mainly due Chinese
concessions JV.
- Current net income group share of €516M vs. €7M in H1 2020
and €352M in H1 2019.
- Current net income group share reached €516M, thanks to :
- Very strong increase of Current EBIT
- Cost of financing down sharply, by €64M to -€152M, due to very
favorable Euro debt refinancing (Euro bond average borrowing rate
of 1.93% vs. 2.21% in H1 2020), higher cash remuneration and
strictly controlled WCR throughout the semester (despite activity
rebound), as well as the unwinding of a portfolio of interest rates
derivatives which generated a €20M income.
- Other financial income and expense +€58M vs. -€84M in H1 2020
include Suez dividend corresponding to our 29.9% stake for
+€122M.
- Net financial capital gains of -€5M in H1 2021 vs. 0 in H1 2020
and +€18M in H1 2019.
- Higher income tax expense of -€188M vs. -€64M in H1 2020 and
-€121M in H1 2019. Current tax rate was 25%.
- Non-controlling interest increased to -€98M vs. -€67M in H1
2020 and -€89M in H1 2019.
- Net income group share was €301M, including €31M of specific
COVID costs, €35M of restructuring charges and €63M of Suez
acquisition costs.
- Net financial debt of €13 767M at June 30, 2021 vs. €13 217M
at December 31 , 2020.
- Net industrial capex controlled and slightly down to €834M vs.
€873M in H1 2020, while maintaining growth capex.
- Strict WCR management and cash collection control over the past
3 years has led to a continuous improvement, particularly marked
this 1st half, with a WCR reduction of €302M vs. H1 2020, despite
the unfavorable seasonal effect.
- Net free cash flow generation therefore increased significantly
to reach +€270M vs. -€515M in H1 2020.
- Net financial investments amounted to €245M and including
mainly the closing of the acquisition of Osis from Suez which had
been initiated prior to the launch of the offer on the entire Suez
Group.
- Exchange rates variations had an unfavorable impact on net
financial debt of -€145M.
**************
- 2021 Prospects* raised (before Suez integration)
Following the excellent H1 performance, EBITDA objective for
2021 was raised. New 2021 prospects are the following
- Revenue above 2019
- More than €350M of efficiency gains : €250M recurring
efficiencies and €100M of complementary savings from the Recover
& Adapt plan
- EBITDA target raised from more than €4bn to more than
€4.1bn, a growth >12% vs. 2020
- Net financial debt below €12bn at the end of 2021 and a
leverage ratio below 3 times
- Objective to recover the pre-crisis dividend policy in
2021
* At constant forex
****************
Tender offer on Suez Group
- On October 6th 2020, Veolia has acquired 29.9% of Suez capital
from Engie in view of launching a tender offer on the whole Suez
Group.
- On May 14th 2021, Veolia and Suez Boards of Directors have
concluded a final combination agreement by which Veolia will launch
a Tender Offer on Suez Group at €20.5 per share coupon included, in
order to create the world champion of the ecological
transformation
- On June 29th 2021, Suez Board of Directors has recommended the
Offer of Veolia at €20.5 per share coupon included. On the same
day, Meridiam, GIP and CDC/CNP consortium of investors remitted a
binding offer of €10.4bn to Veolia and Suez to acquire « New Suez »
assets.
- This transaction carries out a very ambitious project. By
combining the very solid Suez and Veolia competencies, this
transaction will significantly accelerate the development of the
new entity facing growing competition, and enable the sector in
France, in Europe and worldwide to tackle the environmental
challenges of the 21st century.
- Veolia will retain the majority of Suez activities outside
France and will significantly strengthen its footprint in Spain,
the US, Latin America, Australia and the UK
- The new Group will generate a combined revenue of €37bn, with
230 000 employees
- This operation will create value for Veolia shareholders as
from 2022 notably through operational and procurement synergies
estimated at €500M and will increase net current income per share
(including hybrid coupon and before PPA- purchase price allocation
amortization) by 40% in 2024
- On July 20th, a step forward was reached. The French Stock
Exchange Authority (AMF) declared Veolia’s proposed tender offer on
the remaining 70.1% stake in Suez, previously filed on June 29th,
compliant.
- Tender Offer has been opened since July 29th
- Veolia’s objective is to close the operation by the end of
2021.
- The Tender Offer will be closed after EU anti-trust
clearance.
Veolia group aims to be the benchmark company for ecological
transformation. With nearly 179,000 employees worldwide, the Group
designs and provides game-changing solutions that are both useful
and practical for water, waste and energy management. Through its
three complementary business activities, Veolia helps to develop
access to resources, preserve available resources, and replenish
them.
In 2020, the Veolia group supplied
95 million people with drinking water and 62 million people with
wastewater service, produced nearly 43 million megawatt hours of
energy and treated 47 million metric tons of waste. Veolia
Environnement (listed on Paris Euronext: VIE) recorded consolidated
revenue of €26.010 billion in 2020. www.veolia.com
Important disclaimer
As the changes in the health crisis are difficult to estimate,
we draw your attention to the “forward-looking statements” that may
appear in this press release and relating to the consequences of
this crisis which may affect the future performance of the
Company.
Veolia Environnement is a corporation listed on the Euronext
Paris. This press release contains “forward-looking statements”
within the meaning of the provisions of the U.S. Private Securities
Litigation Reform Act of 1995. Such forward-looking statements are
not guarantees of future performance. Actual results may differ
materially from the forward-looking statements as a result of a
number of risks and uncertainties, many of which are outside our
control, including but not limited to: the risk of suffering
reduced profits or losses as a result of intense competition, the
risk that changes in energy prices and taxes may reduce Veolia
Environnement’s profits, the risk that governmental authorities
could terminate or modify some of Veolia Environnement’s contracts,
the risk that acquisitions may not provide the benefits that Veolia
Environnement hopes to achieve, the risks related to customary
provisions of divesture transactions, the risk that Veolia
Environnement’s compliance with environmental laws may become more
costly in the future, the risk that currency exchange rate
fluctuations may negatively affect Veolia Environnement’s financial
results and the price of its shares, the risk that Veolia
Environnement may incur environmental liability in connection with
its past, present and future operations, as well as the other risks
described in the documents Veolia Environnement has filed with the
Autorité des Marchés Financiers (French securities regulator).
Veolia Environnement does not undertake, nor does it have, any
obligation to provide updates or to revise any forward looking
statements. Investors and security holders may obtain from Veolia
Environnement a free copy of documents it filed (www.veolia.com)
with the Autorités des Marchés Financiers.
This document contains "non‐GAAP financial measures". These
"non‐GAAP financial measures" might be defined differently from
similar financial measures made public by other groups and should
not replace GAAP financial measures prepared pursuant to IFRS
standards.
FINANCIAL INFORMATION FOR THE PERIOD ENDED
JUNE, 30 2021
A] KEY FIGURES
Change 2020 / 2021
(€ million)
Half-year ended June 30, 2020
Half-year ended June 30,
2021
∆
∆ at constant exchange rates
∆ at constant scope and exchange
rates
Revenue
12,412
13,645
9.9%
11.2%
10.4%
EBITDA (1)
1,599
2,081
30.1%
31.4%
27.3%
EBITDA margin
12.9%
15.3%
Current EBIT (1)
438
901
105.9%
108.1%
105.3%
Current net income - Group Share
7
516
Current net income - Group Share
excluding capital gains and losses on
financial divestitures net of tax
6
520
Net income - Group share
(138)
301
Net industrial investments
(873)
(834)
Net free cash flow (2)
(515)
270
Opening net financial debt
(10,680)
(13,217)
Closing net financial debt
(11,850)
(13,767)
(1)
Including the share of current net income
of joint ventures and associates viewed as core Company
activities.
(2)
The indicators are defined in Chapter 5,
Section 5.5.8 of the 2020 Universal Registration document.
The main foreign exchange impacts on key figures were as
follows:
%
(€ million)
FX impacts vs June 30, 2020
Revenue
-1.3%
(160)
EBITDA
-1.3%
(20)
Current EBIT
-2.2%
(10)
Current net income
N/A
(4)
Net financial debt
1.1%
145
B] INCOME STATEMENT
- GROUP CONSOLIDATED REVENUE
1.2 REVENUE BY OPERATING SEGMENT
The Group consolidated revenues totaled €13,645.1 million for
the half-year ended June 30, 2021, compared with €12,412.0 million
for the half-year ended June 30, 2020, up +11.2% at constant
exchange rates and +10.4% organically.
Quarterly revenue trends at constant exchange rates by operating
segment for H1 2021 are as follows:
Change at constant exchange rates vs.
2020
Q1 2021
Q2 2021
H1 2021
France
5.7%
23.5%
14.2%
Europe excluding France
9.0%
20.9%
14.2%
Rest of the world
0.6%
7.7%
4.0%
Global businesses
-5.0%
32.5%
12.4%
Group
4.0%
19.7%
11.2%
At the end of June 2021, year-on-year trends observed in the
first quarter were confirmed with revenue growth accelerating in Q2
(+19.7% at constant exchange rates vs. +4% in Q1 2021). The first
half of 2021 therefore confirmed:
- the return to profitable growth, reflected by an upturn in
waste activities which benefited from the positive impact of
recyclate prices,
- excellent performance in energy activities boosted by favorable
weather effects in the first quarter,
- and resilient water activities.
Change 2020 / 2021
(€ million)
Half-year ended June 30, 2020
Half-year ended June 30,
2021
∆
∆ at constant exchange rates
∆ at constant scope and exchange
rates
France
2,490.6
2,843.7
14.2%
14.2%
14.2%
Europe excluding France
4,623.7
5,278.3
14.2%
14.2%
9.9%
Rest of the world
3,308.0
3,310.0
0.1%
4.0%
3.8%
Global businesses
1,988.5
2,211.0
11.2%
12.4%
17.5%
Other
1.2
2.1
-
-
-
Group
12,412.0
13,645.1
9.9%
11.2%
10.4%
Revenue increased +14.2% in France compared with H1
2020:
- Water revenue is up +6.5 compared with H1 2020, with a +0.6%
rise in water volumes distributed year-on-year and positive tariff
indexation (+0.7%). The second quarter was also marked by strong
commercial momentum with numerous municipal water contracts renewed
and increased construction activity (return to 2019 levels),
offsetting the loss of the Toulouse contract.
- Waste revenue grew +23.5% on H1 2020, benefiting notably from
a recovery in industrial waste collection with higher volumes
(+12.7% vs. June 2020), good recycled material trends (+€98
million) and an increase in treatment activity with higher landfill
volumes (+4.6%).
Europe excluding France revenue grew 14.2% at constant
exchange rates compared with H1 2020, benefiting from higher
recyclate prices and a positive weather effect in energy, due to a
particularly severe winter. These items combined with the
integration of new entities in Central Europe and the end of the
health crisis in the United Kingdom in the second quarter, offset
water and waste volumes which remained below pre-health crisis
levels:
- In Central and Eastern Europe, revenue increased +25.6%
at constant exchange rates year-on-year to €2,087.1 million. This
growth was mainly driven by:
- An organic growth in all activities (+10.1% at constant scope
and exchange rates) mainly driven by volume growth, higher tariff
indexations in energy notably in Poland and Hungary, and a positive
weather effect of €58 million (Czech Republic and Poland)
- A scope impact of €260 million, with the integration of new
activities acquired at the end of 2020 in cogeneration in Hungary
(BERT), heat distribution in the Czech Republic (Prague Right Bank)
and waste in Russia (MAG);
- In the United Kingdom/Ireland, revenue increased +6.6%
at constant exchange rates to €1,150.2 million. After a strict
lockdown in the first quarter, industrial waste and landfill
volumes recovered significantly from April, returning to pre-health
crisis levels from the middle of the second quarter. In addition,
revenue benefited from higher recyclate prices and robust
incineration levels (higher volumes processed).
- In Northern Europe, revenue grew +7.0% at constant
exchange rates year-on-year to €1,403.5 million. The increase is
mainly driven in the Netherlands and in the Nordic countries by
commercial developments and recycling activities benefiting from
higher recyclate prices. In Germany, revenue grew +11.9% at
constant scope, impacted by the surge in recyclate prices (€66
million, including €57 million for paper) and a positive weather
impact in the energy sector (+€24 million).
Revenue increased +4.0% in the Rest of the World at
constant exchange rates year-on-year, with contrasted trends across
the regions:
- Revenue in Latin America increased +16.3% at constant
exchange rates, this progression was driven notably by favorable
tariff indexation in Argentina (local inflation) and Ecuador,
growth in hazardous waste activities in Chile and commercial wins
in waste (Peru and Colombia) and water (Peru).
- In Africa/Middle East, revenue grew +9.2% at constant
exchange rates following new contract wins and positive tariff
indexation in the Middle East, increased volumes in Morocco and
business growth in Western Africa (Ivory Coast).
- In North America, revenue increased +2.2% at constant
exchange rates year-on-year to €832 million, thanks to higher
volumes and favorable price effects in hazardous waste activities.
The activity benefited from a favorable change in the price/volume
mix, partially offset by the impacts of a weather event in the
first quarter (shutdown of certain sites). The energy activity was
penalized by lower volumes and the end of certain contracts
(Lumberton).
- Revenue increased +2.1% at constant exchange rates in
Asia due to delayed startup of new installations. Growth was
mainly driven by an increase in hazardous waste activities,
construction activity in Hong Kong and scope impacts in China and
India.
- In the Pacific zone, revenue fell -3.0% at constant
exchange rates. Measures taken as a result of the health crisis
impacted waste activities (lower volumes), while energy activities
were affected by a divestiture of an industrial asset (impact -€16
million).
Global businesses revenue increased 12.4% at constant
exchange rates compared with the half-year ended June 30, 2020,
despite the sale of the Sade Telecom business at the end of 2020.
At constant scope and exchange rates, segment revenue increased
17.5%:
- Hazardous waste activities in Europe increased
significantly by +25.9% at constant exchange rates in the
half-year, with good volume and price levels and a recovery in
sanitation activities.
- Veolia Water Technologies revenue increased +14.1% at
constant exchange rates, with a strong recovery in activity and
notably higher technology activities in the United Kingdom, the
ramp-up of Mobile Unit activities, the development of municipal
projects in France and desalination projects in the Middle East.
VWT bookings totaled €733 million in H1 2021, compared with €640
million in H1 2020.
- SADE which sold its Telecom activity at the end of 2020
(scope impact of -€148 million) reported a fall of -6.1% at
constant exchange rates and an increase of +21.7% at constant scope
and exchange rates, driven by dynamic commercial activity in France
and internationally (Belgium and Ivory Coast).
1.3 REVENUE BY BUSINESS
In the context of a third pandemic wave in certain geographies,
the Group’s activity by business is marked by resilient
Water activities, with Q2 growth (+11.7% at constant
exchange rates year-on-year vs. -3.4% in Q1) driven notably by a
recovery in construction activity, a strong upturn, higher than Q1,
in Waste (+27.1% at constant exchange rates in Q2 vs. 3.4%
in Q1) due to a recyclate price/volume effect and continued good
activity levels in Energy (+21.9% at constant exchange rates
excluding the weather impact after +13.8% in Q1).
Change 2020 / 2021
(€ million)
Half-year ended June 30, 2020
Half-year ended June 30,
2021
∆
∆ at constant exchange rates
∆ at constant scope and exchange
rates
Water
5,095.8
5,214.6
2.3%
3.9%
7.3%
of which Water Operations
3,896.4
3,974.3
2.0%
3.5%
3.5%
of which Technology and Construction
1,199.4
1,240.3
3.4%
5.1%
17.5%
Waste
4,667.8
5,304.1
13.6%
14.6%
13.7%
Energy
2,648.4
3,126.4
18.0%
19.5%
10.3%
Group
12,412.0
13,645.1
9.9%
11.2%
10.4%
Water revenue
Water Operations revenue increased +3.5% at constant
scope and exchange rates year-on-year, confirming this activity’s
resilience and driven at the end of the half-year by an upturn in
construction activity.
2019
Q1
2020
Q2
2020
T3
2020
T4
2020
2020
Q1
2021
Q2
2021
Water France volumes
+0.7%
-0.1%
+0.3%
+0.8%
+0.8%
+0.8%
+1.2%
+0.1%
Water France tariffs
+1.4%
+1.5%
+1.5%
+1.5%
+1.5%
+1.5%
+0.7%
+0.7%
Technology and Construction revenue is up +5.1% at
constant exchange rates compared with June 30, 2020. This increase
is mainly driven by VWT, with growth reported by Westgarth (a
subsidiary specializing in the Oil & Gas sector), increased
construction activity for municipalities in France and the United
States and growth in desalination (mainly Um Al Qwain project).
Waste revenue
Revenue increased +14.6% in the Waste business at
constant exchange rates, compared with the half-year ended June 30,
2020, benefiting from strong volume growth (+6,3%), ongoing high
recyclate prices (+4.4%) and positive tariff increases (+2.6%).
2019
Q1
2020
Q2
2020
Q3
2020
Q4
2020
2020
Q1
2021
Q2
2021
Waste volumes
+1.5%
-1.8%
-14.7%
-2.6%
-1.8%
-5.2%
-0.9%
+14.5%
Waste tariffs
+2.4%
+2.4%
+1.9%
+1.6%
+2.3%
+2.0%
+1.7%
+3.7%
The second quarter reported a marked upturn in waste volumes,
particularly for commercial and industrial waste and accelerated
growth in Hazardous Waste treatment, with high volumes in Europe
and Asia. These good trends enabled a return to pre-health crisis
waste volumes, except for commercial and industrial waste which
remain down in certain geographies.
Energy revenue
Energy revenue grew +19.5% at constant exchange rates
compared with the half-year ended June 30, 2020 and +10.3%
organically, restated for the scope effects of integrating Prague
Right Bank heating network activities and cogeneration
installations in Budapest (+€237 million in revenue).
The business’ strong growth is supported by a highly favorable
weather impact during the half year (+2.4%) notably in Central and
Eastern Europe, an increased price effect (+2.7%) driven by price
rises in Poland and higher volumes (+3.2%) notably in Italy and
Central Europe .
1.4 ANALYSIS OF THE CHANGE IN GROUP REVENUE
The increase in revenue breaks down by main impact as
follows:
The foreign exchange impact of -€160 million (-1.3% of
revenue) mainly reflects fluctuations in American
(-€116 million) and Asian (-€31 million) currencies, partially
offset by an improvement in the Australian and UK currencies1.
The consolidation scope impact of €108 million mainly
concerns the impact of integrating the Prague Right Bank urban
heating network (€126 million), the Budapest cogeneration
installations (€111 million) and waste processing activities in
Russia (€25 million) in Central Europe, as well as the sale of
SADE’s Telecom network activities in the Global businesses segment
(-€148 million) and the integration in 2021 of OSIS.
Energy and recyclate prices had an impact of +€274
million, driven by a strong increase in recyclate prices (+€206
million, including €144 million for paper) and energy prices in
Europe (Central Europe benefited from heating tariff increases in
Poland and Germany, with favorable impacts on electricity
tariffs).
The Commerce / Volumes / Works impact is +€761 million,
driven by activity growth in the three Group businesses.
Favorable price effects (+€167 million) are mainly tied
to higher tariff indexation of +2.6% in waste and +0.9% in
water.
2. GROUP EBITDA
Group consolidated EBITDA for the half-year ended June
30, 2021 was €2,080.7 million, up 31.4% at constant exchange rates
year-on-year. The margin rate is 15.3% for H1 2021, compared with
12.9% for H1 2020.
The increase in EBITDA between 2020 and 2021 breaks down by
impact as follows:
The foreign exchange impact on EBITDA was -€20 million
and mainly reflects unfavorable fluctuations in American (-€15
million), and Central European (-€4 million) currencies2.
The consolidation scope impact of +€66 million mainly
reflects the impact of the acquisition of the Prague Right Bank
urban heating network and the Budapest cogeneration installations
in 2020.
Commerce and volume impacts are +€272 million. This
increase was driven by higher waste volumes (mainly in France and
Europe), a recovery in construction activity in Water in France and
in Global businesses and improved commercial margins in Water and
Waste activities in France.
The energy weather impact is +€28 million and primarily
concerned Northern Europe and Central and Eastern Europe.
Energy and recyclate prices had a favorable impact on
EBITDA of +€50 million (vs. +€25 million at June 30, 2020),
including +€14 million in energy and +€36 million in recyclates,
with the price squeeze on fuel costs reducing the effect of
recyclate and energy prices on the margin.
The impact of prices net of cost inflation is -€119
million.
Cost-savings plans contributed +€204 million at the end
of June, ahead of the €350 million annual objective and
include:
- post-health crisis additional savings efforts under the
Recover & Adapt plan for €58 million;
- the efficiency plan for €146 million and mainly concerning
operating efficiency (58%) and purchasing (31%) across all
geographic zones: France (23%), Europe excluding France (35%), Rest
of the world (25%), Global businesses (10%) and Corporate (7%).
3. CURRENT EBIT
Group consolidated current EBIT for the half-year ended June 30,
2021 was €900.7 million, up significantly by 108.1% at constant
exchange rates on the half-year ended June 30, 2020.
EBITDA reconciles with Current EBIT for the half-year ended June
30, 2021 compared with June 30, 2020 as follows:
(€ million)
Half-year ended June 30, 2020
Half-year ended June 30,
2021
EBITDA
1,599.0
2,080.7
Renewal expenses
(132.3)
(142.7)
Depreciation and amortization1
(1,053.7)
(1,095.8)
Provisions, fair value adjustments &
other
(15.6)
10.1
Share of current net income of joint
ventures and associates
40.1
48.4
Current EBIT
437.5
900.7
The significant +€473 million increase in Current EBIT
year-on-year (+108.1% at constant exchange rate) is mainly due
to:
- a marked improvement in EBITDA (+€502 million at constant
exchange rates),
- an increase in depreciation and amortization3 impacted by 2020
scope entries,
- a favorable difference in provisions and other, including
higher capital gains on industrial divestitures (+€40 million at
constant exchange rates) relating to asset rotation transactions in
Sweden and Norway,
- the share of current net income of joint ventures and
associates
The foreign exchange impact on Current EBIT was -€10 million and
mainly reflects fluctuations in American currencies (-€6
million)4.
4. NET CURRENT FINANCIAL EXPENSE
The net financial expense for the half-year ended June 30, 2021
is -€98.5 million, compared with -€299.6 million for the half-year
ended June 30, 2020. The marked decrease is mainly due to the
inclusion of dividends received on the Group’s investment in Suez
in respect of 2020 of +€122 million and to an improvement in the
net finance cost.
Cost of net financial debt
The cost of net financial debt totaled -€152.4 million for the
half-year ended June 30, 2021, compared with
-€215.6 million for the half-year ended June 30, 2020. This
significant decrease in the Group’s cost of net financial debt is
due to favorable bond issue refinancing conditions in 2020,
historically low foreign currency interest rates, increased
commercial paper which contributes to the performance of the cost
of non-euro denominated debt and the positive impact of the
cancellation of the interest rate hedging portfolio (pre-hedge
swaps) set-up in 2020.
The Group’s financing rate (excluding IFRS 16 impacts) was
therefore 2.51% at June 30, 2021, compared with 4.36% at June 30,
2020 (2.43% vs. 3.96% including IFRS 16 impacts).
Other financial income and expenses
Other financial income and expenses totaled +€53.9 million for
the half-year ended June 30, 2021, compared with -€84.0 million for
the half-year ended June 30, 2020.
They include interest on concession liabilities (IFRIC 12) of
-€37.8 million, the unwinding of discounts on provisions of -€5.9
million and Suez dividends for 2020 (€122 million) for the Group’s
shareholding (29.9%) – dividends received on July 8, 2021.
Losses on financial divestitures recognized in the first half of
2021 totaled -€4.6 million and mainly consist of the gain on
disposal of Utilities Services activities in Nordic countries (+€13
million), offset by the loss on the divestiture of Aqua Utilities
activities in Veolia Water Technology (-€7 million) and disposal
costs in North America (-€3 million).
In H1 2020, gains on current financial divestitures totaled
+€0.2 million.
5. CURRENT INCOME TAX EXPENSE
The current income tax expense for the half-year ended June 30,
2021 amounted to -€188.4 million, compared with -€63.4 million for
the half-year ended June 30, 2020.
The current income tax rate for the half-year ended June 30,
2021 is 25.0%, versus 64.9% for the half-year ended June 30,
2020.
6. CURRENT NET INCOME
Current net income attributable to owners of the Company
was €516 million for the half-year ended June 30, 2021, compared
with €7 million for the half-year ended June 30, 2020. Excluding
capital gains and losses on financial divestitures net of tax and
minority interests, current net income attributable to owners of
the Company is €520 million, compared with €6 million for the
half-year ended June 30, 2020.
7. NET INCOME (LOSS) FOR THE YEAR
Net income attributable to owners of the Company
was +€301 million for the
half-year ended June 30, 2021, compared with -€138 million for the
half-year ended June 30, 2020.
Net income attributable to owners of the Company per
share was €0.53 (basic) and
€0.51 (diluted) for the half-year ended June 30, 2021, compared
with -€0.25 (basic) and -€0.25 (diluted) for the half-year ended
June 30, 2020.
8. CURRENT NET INCOME (LOSS) / NET INCOME (LOSS) ATTRIBUTABLE
TO OWNERS OF THE COMPANY
The share of net income attributable to
non-controlling interests totaled €95.4 million for the
half-year ended June 30, 2021, compared with €66.3 million for the
half-year ended June 30, 2020.
Net income attributable to owners of the
Company was €301 million for the half-year ended June 30,
2021, compared with -€138 million for the half-year ended June 30,
2020.
Current net income attributable to owners
of the Company was €516 million for the half-year ended June
30, 2021, compared with €7 million for the half-year ended June 30,
2020.
Net income attributable to owners of the Company per share for
the half-year ended June 30, 2021 was €0.53 (basic) and €0.51
(diluted) compared with -€0.25 (basic) and -€0.25 (diluted), for
the half-year ended June 30, 2020. Current net income attributable
to owners of the Company per share was €0.91 (basic) and €0.87
(diluted) for the half-year ended June 30, 2021, compared with
€0.01 (basic) and €0.01 (diluted) for the half-year ended June 30,
2020.
The weighted average number of outstanding shares in the
half-year ended June 30, 2021 was 566,541,9045.
Net income (loss) attributable to owners of the Company for the
half-year ended June 30, 2021 breaks down as follows:
(€ million)
Current
Non-current
Total
EBIT
900.7
(160.9)
739.8
Cost of net financial debt
(152.4)
-
(152.4)
Other financial income and expenses
53.9
(22.7)
31.2
Pre-tax net income (loss)
802.2
(183.6)
618.6
Income tax expense
(188.4)
(29.6)
(218.0)
Net income (loss) of other
equity-accounted entities
-
-
-
Net income (loss) from discontinued
operations
-
(4.6)
(4.6)
Net (income) loss attributable to
non-controlling interests
(98.3)
2.8
(95.4)
Net income (loss) attributable to
owners of the Company
515.5
(215.0)
300.5
Net income (loss) attributable to owners of the Company for the
half-year ended June 30, 2020 breaks down as follows:
(€ million)
Current
Non-current
Total
EBIT
437.5
(145.1)
292.5
Cost of net financial debt
(215.6)
(215.6)
Other financial income and expenses
(84.0)
(84.0)
Pre-tax net income (loss)
138.0
(145.1)
(7.1)
Income tax expense
(63.4)
8.3
(55.2)
Net income (loss) of other
equity-accounted entities
-
-
-
Net income (loss) from discontinued
operations
-
(9.0)
(9.0)
Net (income) loss attributable to
non-controlling interests
(67.0)
0.8
(66.3)
Net income (loss) attributable to
owners of the Company
7.4
(145.0)
(137.6)
Current EBIT reconciles with operating income, as shown in the
income statement, as follows:
(€ million)
Half-year ended June 30, 2020
Half-year ended June 30,
2021
Current EBIT
437.5
900.7
Impairment losses on goodwill and negative
goodwill
(44.2)
(1.6)
Net charges to non-current provisions
21.4
5.0
Restructuring costs
(23.4)
(35.5)
Personnel costs - share-based payments
(2.2)
-
Non-current provisions and impairment of
property, plant and equipment, intangible assets, operating
financial assets and other
(92.7)
(63.0)
Share acquisition costs, with or without
acquisition of control
(4.0)
(65.8)
Total non-current items
(145.1)
(160.9)
Operating income after share of net
income of equity-accounted entities
292.5
739.8
Restructuring costs for the half-year ended June 30, 2021 mainly
concern Waste activities in France for -€19 million and the Nordic
countries for -€5 million.
Provisions for impairment and other non-current expenses mainly
concern costs relating to health crisis adaptation measures and
costs incurred in respect of a litigation in North America.
C] CHANGES IN NET FREE CASH FLOW AND NET
FINANCIAL DEBT
Net free cash flow is +€270 million for the half-year
ended June 30, 2021, up significantly year-on-year (+€785
million).
The change in net free cash flow compared with the half-year
ended June 30, 2020 reflects:
- the increase in EBITDA in the half-year driven by the
accelerated recovery in the second quarter and the intensification
of commercial and operating efficiency efforts
- net industrial investments of €834 million, down 4.5% at
current exchange rates (-2.8% at constant exchange rates) thanks to
ongoing strict control over investments and an increase in
industrial divestitures.
- maintenance investments of €504 million (4% of revenue);
- growth investments in the current portfolio of €346 million
(€336 million in the half-year ended June 30, 2020);
- discretionary investments of €122 million, down -€6 million
compared with 2020;
- industrial divestitures of €138 million;
- a marked improvement in the change in operating working
capital requirements to -€381 million, compared with -€683 million
for the half-year ended June 30, 2020 thanks to ongoing debt
recovery efforts and a reversal of the impact of the health
crisis.
Overall, net financial debt amounted to €13,767 million,
compared with €13,217 million as of December 31, 2020.
The following table summarizes the change in net financial debt
and net free cash flow:
(€ million)
Half-year ended June 30, 2020
Half-year ended June 30,
2021
EBITDA
1,599
2,081
Net industrial investments
(873)
(834)
Change in operating WCR
(683)
(381)
Dividends received from equity-accounted
entities and joint ventures
53
30
Renewal expenses
(103)
(143)
Other non-current expenses and
restructuring charges
(97)
(95)
Interest on concession liabilities (IFRIC
12)
(40)
(38)
Interest on IFRS 16 lease liabilities
(18)
(14)
Financial items (current interest paid and
operating cash flow from financing activities)
(213)
(201)
Taxes paid
(140)
(135)
Net free cash flow before dividend
payment, financial investments and financial divestitures
(515)
270
Dividends paid
(347)
(504)
Net financial investments
(370)
(245)
Change in receivables and other financial
assets
(68)
(9)
Issue / repayment of deeply subordinated
securities
0
1
Proceeds on issue of shares
(6)
10
Free cash flow
(1,306)
(477)
Effect of foreign exchange rate movements
and other
136
(74)
Redemption of hybrid debt
0
0
Change
(1,170)
(550)
Opening net financial debt
(10,680)
(13,217)
Closing net financial debt
(11,850)
(13,767)
Compared with December 31, 2020, the change in net financial
debt is mainly due to:
- net free cash flow generation of +€270 million for the
period;
- the payment of the dividends voted by the Combined
Shareholders’ Meeting of April 22, 2021 (€397 million);
- net financial investments of €245 million (including
acquisition costs and net financial debt of new entities) and
mainly comprising the impact of the acquisition of OSIS and an
organic fertilizer plant in France and the divestment of Utilities
Services activities in Sweden and Norway and of the Shenzhen water
concession in China.
Net financial debt was also impacted by negative foreign
exchange effects of -€145 million as of June 30, 2021 compared with
December 31, 20206.
9. INDUSTRIAL AND FINANCIAL INVESTMENTS
9.1 INDUSTRIAL INVESTMENTS
Total Group gross industrial investments, including new
operating financial assets, amounted to -€972 million for the
half-year ended June 30, 2021, compared with -€962 million for the
half-year ended June 30, 2020.
Industrial investments, excluding discontinued operations, break
down by segment as follows:
Half-year ended June 30, 2021 (€
million)
Maintenance and contractual
requirements (1)
Discretionary growth
Total gross industrial
investments (2)
Industrial divestitures
Total net industrial
investments
France
210
8
218
(23)
24
Europe excluding France
316
51
367
(55)
312
Rest of the world
217
44
261
(23)
238
Global businesses
81
19
100
(37)
63
Other
26
0
26
0
26
Group
850
122
972
(138)
834
(1)
Including maintenance investments of €504
million (including IFRS16 leases) and contractual investments of
€346 million.
(2)
Including new OFA in the amount of -€53
million.
Half-year ended June 30, 2020 (€
million)
Maintenance and contractual
requirements (1)
Discretionary growth
Total gross industrial
investments (2)
Industrial divestitures
Total net industrial
investments
France
194
19
213
(18)
195
Europe excluding France
332
32
364
(32)
332
Rest of the world
211
71
382
(16)
266
Global businesses
84
6
90
(23)
67
Other
13
0
13
0
13
Group
834
128
962
(89)
873
(1)
Including maintenance investments of €497
million and contractual investments of €336 million.
(2)
including new OFA in the amount of -€60
million.
9.2 FINANCIAL INVESTMENTS AND DIVESTITURES
Net financial investments totaled -€245 million as of June 30,
2021, compared with -€370 million as of June 30, 2020.
Financial investments totaled €413 million in the half-year
ended June 30, 2021 (including acquisition costs and net financial
debt of new entities) and mainly included the impacts of the
acquisition of Osis in France (€262 million, excluding IFRS 16 debt
and €336 million including IFRS 16 debt) and of an organic
fertilizer facility in France (€22 million). In June 2020,
financial investments amounted to -€368 million (including
acquisition costs and net financial debt of new entities) and
mainly included the impacts of the acquisition of Alcoa assets in
the United States (€231 million) and Nagpur shareholders in India
(€113 million), as well as the acquisition of shares in Torrepet
which specializes in plastic recycling in Spain.
Financial divestitures totaled €168 million for the half-year
ended June 30, 2021 (including disposal costs) and mainly included
the sale of the 5% stake in the Shenzhen concession in China by VE
CGE (€80 million, excluding the repayment of the shareholder loan
of €105 million), as well as the sale of Utilities Services
activities in Sweden and Norway in the amount of €32 million (total
transaction of €70 million).
Financial divestitures totaled -€2 million for the half-year
ended June 30, 2020 (including disposal costs) and primarily
concerned the sale of Foshan medical activities in China for €14
million.
10. OPERATING WORKING CAPITAL
The change in operating working capital requirements (excluding
discontinued operations) was -€381 million for the half-year ended
June 30, 2021, compared with -€683 million for the half-year ended
June 30, 2020.
This marked improvement reflects major debt recovery efforts and
strict working capital management across the whole Group.
11. EXTERNAL FINANCING
Structure of net financial debt
As of June 30, 2021, net financial debt after hedging is
borrowed 97% at fixed rates (compared with 98% as of December 31,
2020).
The average maturity of net financial debt was 5.9 years as of
June 30, 2021 compared with 7.5 years as of June 30, 2020.
(€ million)
As of June 30, 2020
As of June 30, 2021
Non-current financial debt
11,995
11,618
Current financial debt
7,580
8,341
Bank overdrafts and other cash position
items
188
225
Sub-total financial debt
19,763
20,184
Cash and cash equivalents
(7,029)
(5,454)
Allocation of the fair value of hedging
instruments
(59)
8
Liquid assets and financing financial
assets
(825)
(971)
Net financial debt
11,850
13,767
Group liquidity position
Liquid assets of the Group as of June 30, 2021 break down as
follows:
(€ million)
Dec 31, 2020
June 30, 2021
Veolia Environnement:
Undrawn syndicated loan facility
3,000.0
3,000.0
Undrawn MT bilateral credit lines
1,000.0
1,000.0
Undrawn ST bilateral credit lines
-
Letters of credit facility
21.6
22.3
Cash and cash equivalents (1)
5,542.2
5,259.1
Subsidiaries:
Cash and cash equivalents (1)
1,132.9
1,165.8
Total liquid assets
10,696.7
10,447.2
Current debt and bank overdrafts and
other cash position items
Current debt
7,599.6
8,340.1
Bank overdrafts and other cash position
items
217.6
224.5
Total current debt and bank overdrafts
and other cash position items
7,817.2
8,564.6
Total liquid assets net of current debt
and bank overdrafts and other cash position items
2,879.5
1,882.6
(1)
Including liquid assets and assets linked
to financing included in net financial debt.
APPENDICES
RECONCILIATION OF GAAP INDICATORS AND THE INDICATORS USED BY
THE GROUP
The reconciliation of Current EBIT with operating income, as
shown in the income statement, is presented in chapter 8. Likewise,
the reconciliation of current net income with net income
attributable to owners of the Company, as shown in the income
statement, is presented in chapter 8.
The reconciliation of Net cash from operating activities of
continuing operations (included in the Consolidated Cash Flow
Statement) with net free cash flow is as follows:
(€ million)
Half-year ended June 30, 2020
Half-year ended June 30,
2021
Net cash from operating activities of
continuing operations
440.0
1,058.1
Plus:
Industrial investments, net of grants
(604.1)
(620.8)
Proceeds on disposal of industrial
assets
89.5
138.5
New operating financial assets
(59.8)
(53.0)
Principal payments on operating financial
assets
65.7
83.4
New finance lease debt
(234.4)
(225.8)
Dividends received
53.4
30.1
Net financial interest
(275.5)
(246.2)
Less:
Share acquisition and disposal costs, and
other
10.3
105.8
Net free cash flow
(514.9)
270.1
The reconciliation of industrial investments, net of grants
(included in the Consolidated Cash Flow Statement) with industrial
investments is as follows:
(€ million)
Half-year ended June 30, 2020
Half-year ended June 30,
2021
Industrial investments, net of
grants
(604.1)
(620.8)
New finance lease debt
(234.4)
(225.8)
Change in concession working capital
requirements
(63.2)
(72.7)
New operating financial assets
(59.8)
(53.0)
Industrial investments
(961.5)
(972.3)
DEFINITIONS
The definition of one of the non-GAAP financial indicators used
by the Group has been modified.
From fiscal year 2021 and with a view to improving comparability
with other issuers, the impacts of applying IFRS 2, Share-based
payments, are now included in Current EBIT.
Non-GAAP indicators
To calculate Current EBIT (which includes the share of
current net income of joint ventures viewed as core Company
activities and associates), the following items are deducted from
operating income:
- goodwill impairments of fully controlled subsidiaries and
equity-accounted entities;
- restructuring charges;
- non-current provisions and impairment;
- non-current and/or significant impairment of non-current assets
(property, plant and equipment, intangible assets and operating
financial assets);
- share acquisition costs.
For the other indicators, please refer to the 2020 Universal
Registration Document.
CONSOLIDATED INCOME STATEMENT
(€ million)
Half-year ended June 30,
2020
Half-year ended June 30,
2021
Revenue
12,412.0
13,645.1
Cost of sales
(10,717.8)
(11,374.3)
Selling costs
(279.3)
(279.0)
General and administrative
expenses
(1,059.0)
(1,136.4)
Other operating revenue and
expenses
(103.5)
(164.0)
Operating income before share
of net income (loss) of equity-accounted entities
252.4
691.4
Share of net income (loss) of
equity-accounted entities
40.1
48.4
o/w share of net income (loss) of
joint ventures
27.9
33.0
o/w share of net income (loss) of
associates
12.2
15.4
Operating income after share
of net income (loss) of equity-accounted entities
292.5
739.8
Cost of net financial debt
(215.6)
(152.4)
Other financial income and
expenses
(84.0)
31.2
Pre-tax net income
(loss)
(7.1)
618.6
Income tax expense
(55.2)
(218.0)
Net income (loss) from
continuing operations
(62.3)
400.6
Net income (loss) from
discontinued operations
(9.0)
(4.6)
Net income (loss) for the
period
(71.3)
396.0
Attributable to owners of the
Company
(137.6)
300.5
Attributable to non-controlling
interests
66.3
95.5
NET INCOME (LOSS) ATTRIBUTABLE
TO OWNERS OF THE COMPANY PER SHARE
Basic
(0.25)
0.53
Diluted (*)
(0.25)
-
NET INCOME (LOSS) FROM
CONTINUING OPERATIONS ATTRIBUTABLE TO OWNERS OF THE COMPANY PER
SHARE
Basic
(0.23)
0.54
Diluted (*)
(0.23)
-
NET INCOME (LOSS) FROM
DISCONTINUED OPERATIONS ATTRIBUTABLE TO OWNERS OF THE COMPANY PER
SHARE
Basic
(0.02)
(0.01)
Diluted (*)
(0.02)
-
(*) Performance shares and OCEANE bonds
convertible into new shares are excluded from diluted net income in
the first half of 2020 as they are not dilutive.
CONSOLIDATED STATEMENT OF
FINANCIAL POSITION - ASSETS
(€ million)
As of December 31,
2020
As of June 30, 2021
Goodwill
5,888.9
6,054.7
Concession intangible assets
3,544.9
3,571.5
Other intangible assets
1,371.3
1,309.6
Property, plant and equipment
8,216.6
8,342.0
Right of use (net)
1,529.5
1,541.0
Investments in joint ventures
1,020.8
1,370.9
Investments in associates
353.9
346.9
Non-consolidated investments
(*)
3,102.2
3,816.0
Non-current operating financial
assets
1,198.1
1,133.9
Non-current derivative
instruments - Assets
53.5
58.3
Other non-current financial
assets
427.3
364.1
Deferred tax assets
1,036.5
1,045.9
Non-current assets
27,743.5
28,954.8
Inventories and
work-in-progress
797.7
784.0
Operating receivables
9,106.2
9,523.7
Current operating financial
assets
172.8
181.9
Other current financial
assets
1,073.2
1,314.1
Current derivative instruments -
Assets
174.8
147.2
Cash and cash equivalents
5,840.0
5,453.9
Assets classified as held for
sale
455.7
283.8
Current assets
17,620.4
17,688.6
TOTAL ASSETS
45,363.9
46,643.4
(*) Non-consolidated investments consist
of Suez shares for €3,765.0 million as of June 30, 2021, compared
with €3,046.0 million as of December 31, 2020 and other securities
for €51.0 million as of June 30, 2021 compared with €56.2 million
as of December 31, 2020.
CONSOLIDATED STATEMENT OF
FINANCIAL POSITION - EQUITY AND LIABILITIES
(€ million)
As of December 31,
2020
As of June 30, 2021
Share capital
2,893.1
2,898.0
Additional paid-in capital
7,291.8
7,286.9
Deeply-subordinated perpetual
securities
1,987.1
1,964.0
Reserves and retained earnings
attributable to owners of the Company
(4,955.8)
(4,198.6)
Total equity attributable to
owners of the Company
7,216.2
7,950.3
Total equity attributable to
non-controlling interests
1,098.5
1,157.3
Shareholders’ equity
8,314.7
9,107.6
Non-current provisions
1,846.8
1,911.9
Non-current financial
liabilities
10,836.4
10,331.4
Non-current IFRS 16 lease
debt
1,296.8
1,286.8
Non-current derivative
instruments - Liabilities
65.3
70.7
Concession liabilities -
non-current
1,459.9
1,439.2
Deferred tax liabilities
1,094.4
1,114.7
Non-current
liabilities
16,599.6
16,154.7
Operating payables
11,850.4
11,853.9
Concession liabilities -
current
145.6
154.3
Current provisions
510.7
584.4
Current financial liabilities
7,196.7
7,931.2
Current IFRS 16 lease debt
402.9
408.9
Current derivative instruments -
Liabilities
117.9
140.3
Bank overdrafts and other cash
position items
217.6
224.5
Liabilities directly associated
with assets classified as held for sale
7.8
83.6
Current liabilities
20,449.6
21,381.1
TOTAL EQUITY AND
LIABILITIES
45,363.9
46,643.4
CONSOLIDATED CASH-FLOW STATEMENT
(€ million)
Half-year ended June 30,
2020
Half-year ended June 30,
2021
Net income (loss) for the
period
(71.3)
396.0
Net income (loss) from
continuing operations
(62.3)
400.6
Net income (loss) from
discontinued operations
(9.0)
(4.6)
Operating depreciation,
amortization, provisions and impairment losses
1,078.3
1,059.3
Financial amortization and
impairment losses
13.1
(8.5)
Gains (losses) on disposal of
operating assets
3.0
(39.0)
Gains (losses) on disposal of
financial assets
(16.0)
0.3
Share of net income (loss) of
joint ventures
(27.9)
(33.0)
Share of net income (loss) of
associates
(12.2)
(15.4)
Dividends received
(0.9)
(123.0)
Cost of net financial debt
215.6
152.4
Income tax expense
55.2
218.0
Other items
80.5
35.0
Operating cash flow before
changes in working capital
1,326.4
1,646.7
Change in operating working
capital requirements
(683.3)
(380.9)
Change in concession working
capital requirements
(63.2)
(72.7)
Income taxes paid
(139.9)
(135.0)
Net cash from operating
activities of continuing operations
440.0
1,058.1
Net cash from operating
activities of discontinued operations
(24.7)
(13.2)
Net cash from operating
activities
415.3
1,044.9
Industrial investments, net of
grants
(604.1)
(620.8)
Proceeds on disposal of
industrial assets
89.5
100.0
Purchases of investments
(323.2)
(310.5)
Proceeds on disposal of financial
assets
(5.7)
176.5
Operating financial assets
-
-
New operating financial assets
(59.8)
(53.0)
Principal payments on operating
financial assets
65.7
83.4
Dividends received (including
dividends received from joint ventures and associates)
53.4
30.7
New non-current loans granted
(136.5)
(64.5)
Principal payments on non-current
loans
80.3
161.4
Net decrease/increase in current
loans
(11.9)
16.2
Net cash used in investing
activities of continuing operations
(852.3)
(480.6)
Net cash used in investing
activities of discontinued operations
(0.6)
-
Net cash used in investing
activities
(852.9)
(480.6)
CONSOLIDATED CASH-FLOW STATEMENT
(CONTINUED)
(€ million)
Half-year ended June 30,
2020
Half-year ended June 30,
2021
Net increase (decrease) in
current financial liabilities
1,097.8
(596.5)
Repayment of current IFRS 16
lease debt
(243.7)
(229.1)
Other changes in non-current IFRS
16 lease debt
(61.1)
(64.8)
New non-current borrowings and
other debt
1,996.8
791.4
Principal payments on non-current
borrowings and other debt
(29.2)
(15.6)
Change in liquid assets and
financing financial assets
(359.1)
(135.5)
Proceeds on issue of shares
1.0
17.4
Share capital reduction
-
-
Transactions with non-controlling
interests: partial purchases
(3.8)
(1.9)
Transactions with non-controlling
interests: partial sales
0.2
0.3
Proceeds on issue of deeply
subordinated securities
-
0.8
Coupons on deeply subordinated
securities
-
(23.9)
Purchases of/proceeds from
treasury shares
(6.4)
10.1
Dividends paid
(346.4)
(480.2)
Interest paid
(218.0)
(194.3)
Interest on IFRIC 12 operating
assets
(39.8)
(37.8)
Interest on IFRS 16 lease debt
(*)
(17.8)
(14.0)
Net cash from (used in)
financing activities of continuing operations
1,770.5
(973.6)
Net cash from (used in)
financing activities of discontinued operations
(2.0)
(0.1)
Net cash from (used in)
financing activities
1,768.5
(973.7)
Effect of foreign exchange rate
changes and other
(27.0)
17.2
Increase (decrease) in
external net cash of discontinued operations
(3.6)
-
NET CASH AT THE BEGINNING OF
THE YEAR
5,541.1
5,622.4
NET CASH AT THE END OF THE
PERIOD
6,841.4
5,229.4
Cash and cash equivalents
7,110.6
5,453.9
Bank overdrafts and other cash
position items
-269.2
-224.5
NET CASH AT THE END OF THE
PERIOD
6,841.4
5,229.4
(*) Interest on IFRS 16 lease debt is not
included in the Cost of net financial debt, but in Other financial
income and expenses
1 Main foreign exchange impacts by
currency: US dollar (-€89 million), Argentine peso (-€27 million),
Japanese yen (-€23 million), Polish zloty (-€16 million), Brazilian
real (-€10 million), Hong Kong dollar (-€8 million), Australian
dollar (+€35 million), Czech koruna (+€10 million), pound sterling
(+€8 million).
2 Foreign exchange impacts by currency: US
dollar (-€9 million), Argentine peso (-€5 million),Polish zloty
(-€5 million), United Arab Emirates dirham (-€2 million), Hungarian
forint (-€2 million), Brazilian real (-€1 million), Australian
dollar (+€4 million), Czech koruna (+€3 million).
3 Including principal payments on
operating financial assets
4 Foreign exchange impacts by currency: US
dollar (-€3 million), Argentine peso (-€3 million), Polish zloty
(-€2 million), United Arab Emirates dirham (-€2 million), Hungarian
forint (-€1 million), Czech koruna (+€2 million), Swedish crown
(+€1 million)
5 As of June 30, 2020, the instruments
(mainly related to the OCEANE convertible bonds issued on September
12, 2019) were excluded from the calculation of diluted net income
per share as they are anti-dilutive.
6 Mainly driven by negative impacts on the
pound sterling (-€44 million), US dollar (-€39 million), Czech
koruna (-€25 million) and Polish zloty (-€14 million).
View source
version on businesswire.com: https://www.businesswire.com/news/home/20210728006158/en/
Group Media Relations Laurent Obadia Edouard de La Loyère
Tél : + 33 (0)1 85 57 85 23 Investor & Analyst
Relations Ronald Wasylec - Ariane de Lamaze Tél. : + 33 (0)1 85
57 84 76 / 84 80
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