1 2009 HALF YEAR RESULTS
August 26, 2009
2009Half Year Results
2 2009 HALF YEAR RESULTS
"The actual communication includes forward looking information and statements. Those prospective elements are based upon hypothesis, financial projections, estimations and statements regarding projects, objectives and expectations concerning operations, future products or services or future performances. No guarantee can be given on the realization of those prospective elements. Investors and shareholders of SUEZ ENVIRONNEMENT Company shares are informed that those forward looking information and statements are subject to a number of risks and uncertainties, hardly predictable and generally outside SUEZ ENVIRONNEMENT Company control and that could cause actual results to differ materially from those expressed or suggested by any such forward looking information and statements. Those risks include, but are not limited to, those developed or identified in public documents filed with theAutorité des Marchés Financiers (AMF). The attention of investors and shareholders of SUEZ ENVIRONNEMENT Company shares is drawn on the fact that the realization of all or part of those risks is susceptible to have a significant unfavorable effect on SUEZ ENVIRONNEMENT Company. SUEZ ENVIRONNEMENT Company disclaims any obligation or undertaking to release publicly any updates or revisions to any of those forward-looking statements."
DISCLAIMER
HALF YEAR RESULTS
JEAN-LOUIS CHAUSSADE
HIGHLIGHTS
4 2009 HALF YEAR RESULTS
H1 2009 HIGHLIGHTS
� H1 2009 performance
- Delivering on priorities
- Improved Q2 2009 operational performance versus Q1 2009
� Continued commercial development in each division
� Perspective
- Reinforced competitive positioning
- 2009 objective: overall stability of operational performance at constant forex
5 2009 HALF YEAR RESULTS
H1 2009 PERFORMANCEDELIVERING ON PRIORITIES
� Protection of margins
- Revenue growth & EBITDA improvement for Water Europe & International
- Resilient profitability: EBITDA margin 16.2% in H1 2009- Improved for Water Europe (21.8%), stable for International (14.7%), at 14.2% for Waste Europe
- Acceleration of cost optimization: Compass ahead of mid-year objective
- €175m net profit group share (0.36€/share)
� Strict control of cash & reinforced financing profile
- Sharp increase of FCF at €428m
- Higher selectivity of investments: maintenance capex / revenues at 4.8%
- Successful financing on debt capital markets (2.85bn€ at end of July 2009)
- Maintained robust capital structure after 0.65€/share dividend payment
EFFICIENT ADAPTATION OF PRIORITIES IN THE DETERIORATED ECONOMIC CONTEXTEFFICIENT ADAPTATION OF PRIORITIES IN THE DETERIORATED ECONOMIC CONTEXT
6 2009 HALF YEAR RESULTS
H1 2009 PERFORMANCEDELIVERING ON PRIORITIES
MAINTAINED HIGH PROFITABILITYSTRONG INCREASE IN FREE CASH FLOW GENERATION
MAINTAINED HIGH PROFITABILITYSTRONG INCREASE IN FREE CASH FLOW GENERATION
H1 2009H1 2008
€275m
€428m(2)+56%
SHARP GROWTH INFREE CASH FLOW
4.6%
FCF / Revenues
7.3%
H1 2008 H1 2009
€5,872m€6,030m
-1.2%excl.forex
RESILIENCE OF REVENUES
At 06/30/09At 12/31/08
€55m
€104m+89%
ACCELERATION OFCompass PROGRAMME (1)
31%
% of 2010 target (€180m)
58%
€951m
PROTECTING EBITDA MARGIN
16.7%
EBITDA / Revenues
16.2%
€1,006m
H1 2008 H1 2009
- 4.2% excl.forex
H1 2008 H1 2009
(1) Cumulated EBITDA impacts(2) Including reimbursement in 2009 of €76m for tax paid in France in 2008
7 2009 HALF YEAR RESULTS
H1 2009 PERFORMANCEIMPROVED Q2 2009 OPERATIONAL PERFORMANCE VERSUS Q1 2009
� Impact of crisis on Group’s H1 2009 revenues
- Strong reduction of GDP & industrial production in all geographies in H1 09
- Reduction of activity in Waste Europe : sales -7.3% and EBITDA -17.8% at constant FX
- c. 50% of the sales reduction (ie. c. -3.6%) coming from sorting & recycling- Treated(1) volumes decrease by c. -6% in EfW(2) + landfill
- High single digit I&C volume reduction- Slight volume decrease of residential waste
- Resilient activity in water , marginal impact of lower works
� Better operational result in second quarter
- Q2 2009 EBITDA close to Q2 2008 excluding forex
- Q2 2009 EBITDA margin at 16.9% vs 15.4% in Q1 2009
- Efficient costs management: growing impact of Compass
IMPROVING MOMENTUM FOR H2 2009CONFIRMED STRATEGIC LONG TERM VISION ON FULL VALUE CHAIN MANAGEMENT
IMPROVING MOMENTUM FOR H2 2009CONFIRMED STRATEGIC LONG TERM VISION ON FULL VALUE CHAIN MANAGEMENT
(1) Excluding hazardous waste (2) Energy from waste
8 2009 HALF YEAR RESULTS
HIGHLIGHTS / COMMERCIAL DEVELOPMENTWATER EUROPE
� New contracts
- France : Le Havre (€19m, 4y), Port Saint Louis du Rhône (€18m, 20y)- Spain : Martorell-Barcelona (30y), Marchena-Sevilla (17y), wastewater treatment plants
in Madrid (Canal de Isabel II, 4y and 8y), Garrigues Sud (2.5y), Coria-Caceres (25y), Cunit Tarragona (15y, 12 000 inhab.), Socovos Albacete (20y, 2 000 inhab.)
- Safege in Algeria (€25m, 4y)
� Strengthening positions with contract renewals
- France : SIAEP Montbazens (€43m, 12y), SIVOM Bassin Ehn (€18m, 15 y), Syseg de Givors (€15m, 9y), Syndicat du Puy en Velay (€13m, 12y), Syndicat deSalles-Mios (€12m, 12y), SIE Roannaise de l’Eau (€11m, 8y), Tarare (€11m, 12y)
- Spain : Torremolinos Malaga (25y, 60 000 inhab.), Olot-Girona (20y, 32 000 inhab.), Villanueva de la Serena-Badajoz (25y, 25 000 inhab.), Ribera de Gata-Cáceres(10y, 23 600 inhab.), Algorfa-Alicante (20y, 4 000 inhab.)
� On-going process of unfolding the "paritaires" companies in France
- Approved by the European Commission on August 5, 2009,process on track for end of 2009
9 2009 HALF YEAR RESULTS
HIGHLIGHTS / COMMERCIAL DEVELOPMENTWASTE EUROPE
� Continued commercial activity in all geographies
- France : La Rochelle recycling centre, Leroy-Somers (3y, France)
- UK: I&C collection contracts of Kimberly Clark, Gate Gourmet, and Airbus (€12m, 3 to 4y)
- Germany : collection contracts for municipal clients (City of Pforzheim, LK Hildburghausen)and I&C clients (IHKW, WÖRWAG), DSD contracts (€17m)
- Belgium : Limburg.net (€34m, 8y)
- Preferred bidder of the energy from waste facility in Guernsey (DBO, 194m£)
� Renewals: consolidating our positions
- France : Vichy Val d’Allier (€68m, 20y), SMETOM du Haut-Doubs (€38m, 15y),Montpellier (€29m, 15y), SMICTOM Carcassonnais (€17m ,5y), Grand Lyon (€13m, 5y), SMICTOM Ouest Audois (€12m, 8y), Pontarlier (€36m, 5y renewable twice), La Roche-sur-Yon (€12m, 6y), SMICTOM Saverne (€11m, 6y)
- UK: Doncaster municipal contract (£53m, 7y)
� Start of operation
- EVI energy-from-waste facility (Netherlands/Germany, 335 000 tons/year)- Limay France Plastique Recyclage (bottle-to-bottle, 30kton), Evian Volvic Sources contract
10 2009 HALF YEAR RESULTS
HIGHLIGHTS / COMMERCIAL DEVELOPMENTINTERNATIONAL
� Degrémont - Inauguration of Barcelona desalination plant, the largest in Europe- Start of works for Ciudad Juarez BOT in Mexico (€154m), Baraki (Algeria, €68m),
Malta (€35m), Cleveland sludge incinerator (US, €37m), Petrobras (€31m)
� United Water: on going rate case strategy- Pre-qualified for Croton water treatment plant operation & maintenance (NY City)- New Jersey (+18% in April 09, $+27m of revenue/year), Delaware (+11% in April 09)- Extension of West Basin (California, wastewater contract, 5+5y)
� Asia-Pacific - China : JV for Suzhou Sludge Project (30y, €30m, 49% Sino French), JV acquisition in
Tianjin to operate the Jieyuan Water Plant (14y, €77m), renewal of Island East Transfer station contract (Hong Kong, €25m, 4,5y), Yuelai concession (Chongqing, 40y, €0.8bn)
- Australia : renewal of the waste collection and treatment contract in Brisbane (€120m, 8y), inauguration of SAWT (West of Sydney) and Mindarie (Perth) waste treatment plants
� CEMME(1)
- Abu Dhabi : preferred bidder for the hazardous waste management contract(20,000t, 15y, €200m)
- Morocco : waste contracts of Oujda (10y, €37m) and El Jadida (7y, €13m)- Jordan : water contract of Disi Amman ($200m, 25y)
(1) Central Europe, Mediterranean and Middle East
11 2009 HALF YEAR RESULTS
PERSPECTIVEREINFORCED COMPETITIVE POSITIONING
� Strong, balanced and flexible business model- Confirmed long term strategy on attractive markets driven by growing world water
demand and circular economy- Balanced asset mix to protect profitability and better rebound- Strong capacity to deliver on priorities
� Reinforced competitive positioning- Reinforced growth drivers : more environmental needs and regulatory objectives
- Stimulus plan largely focused on environment- Continued greenfield development to fuel future growth
- Technology and sustainable development : key pillars of strategy- Reverse osmosis desalination leadership - Sustainable development: new commercial opportunities, publication of 2008
performance, 2012 objectives- Strong financial profile
- To selectively support growing needs of financing from municipalities (PPP)(1)
- To seize future opportunities of attractive assets when up for sale at relevant prices
STRENGHTENED LONG TERM GROWTH DRIVERSWELL POSITIONNED TO GRAB FUTURE GROWTH OPPORTUNITIES
STRENGHTENED LONG TERM GROWTH DRIVERSWELL POSITIONNED TO GRAB FUTURE GROWTH OPPORTUNITIES
(1) Public-Private Partnerships
12 2009 HALF YEAR RESULTS
� A growing market with leading reverse osmosis technology
� Leading position of SUEZ ENVIRONNEMENT in reverse osmosis - 250 plants built by Degrémont in 40 years- 6 plants of more than 120 000 m3/ day since 2 y (Fujaïrah, Wadi Ma'in, Perth, Barka, Barcelona, Al Dur)- July 2009: inauguration of Barcelona desalination plant, the largest in Europe- August 2009: Melbourne , largest desalination plant in the southern hemisphere
- PPP project with total investment: €2bn
- Revenues for SUEZ ENVIRONNEMENT: €1.2bn over 30y- Sustainable development plant: integrated into the environment, preserving natural setting,
creating an ecological space, reducing the environmental impact with 100% renewable energy
REINFORCED COMPETITIVE POSITIONINGLEADERSHIP IN REVERSE OSMOSIS DESALINATION
2007 2016
WORLD DESALINATION CAPACITYFORECASTS (2007-2016)
70%
30%
CAPEX FORECASTS
Reverse Osmosis
World reverse osmosis cumulated capex by region (2005-2015)
Source: Global Water Intelligence
Thermal
Americas
Mediterranean
Asia Pacific
Middle East
44%
10% 14%
32%
60%
40%+10.5% CAGR
47 Mm3/day
107 Mm3/day
Source: Global Water Intelligence
13 2009 HALF YEAR RESULTS
PERSPECTIVE BEST EFFORTS TO REACH OPERATIONAL STABILITY VERSUS 2008 AT CONSTANT FOREX
� H2 2009
- Maintained priorities in H2 2009 in a very challenging and still uncertain economic environment- Strong free cash flow generation & margin protection- Solid financial situation
- H2 2009 operational performance > H1 2009- With high Q3 2008 comparative basis
� FY 2009 objective
- Overall stability of revenues and EBITDA at constant forex- FCF 2009 > FCF 2008
- Investments selectivity: €1.3bn of net investments(1) (-25% vs 2008)
- Net financial debt / EBITDA(2): around 3 times
� 2010 Compass objective
- Achievement ahead of schedule: > €180m in less than 3 years
OFFERING ATTRACTIVE SHAREHOLDER VALUEOFFERING ATTRACTIVE SHAREHOLDER VALUE
(1) Excluding strategic investments(2) Based on rolling 12 months EBITDA
JEAN-MARC BOURSIER
FINANCIAL RESULTS
HALF YEAR RESULTS
15 2009 HALF YEAR RESULTS
H1 2009 FINANCIAL HIGHLIGHTSDELIVERING ON DEFINED PRIORITIES
� Difficult economic environment
- Further GDP reduction, negative forex impact, still low commodity prices
� Efficient delivery on new priorities
- Protection of operational profitability - EBITDA margin at 16.2%, Compass in advance vs. mid-year objective
- Increased Free Cash Flow generation: +56% vs H1 2008
- Maintained strong balance sheet: net financial debt / EBITDA(1) at 3.18x
- Improvement of debt profile: high liquidity, increased diversification & maturity
� Improving operating performance
- Q2 better than Q1
- H2 objective of further improvement
OPERATIONAL IMPROVEMENT IN Q2 AND EXPECTED FOR H2OPERATIONAL IMPROVEMENT IN Q2 AND EXPECTED FOR H2
(1) Based on rolling 12 months EBITDA
16 2009 HALF YEAR RESULTS
(1) Excluding public offer on AGBAR (€708m)(2) Based on rolling 12 months EBITDA
5,9712.84x
543(1)
275
201
508
1,006
6,030
H1 2008
- 12.8%175Net Result Group share
+11.0%603Net Investments
-
+55.6%
- 22.5%
- 5.5%- 4.2%
- 2.6% - 1.2%
09/08 ∆
6,5073.18x
428
393
951
5,872
H1 2009
Free Cash Flow
Revenue∆ at constant Forex
Net financial debt at Dec. 31, 2008 and June 30, 2009Net financial debt / EBITDA(2)
EBITDA ∆ at constant Forex
Current Operating Income
In €m
FCF AND NET INCOME TO REVENUE RATIOS AT RESPECTIVELY 7.3% AND 3.0%FCF AND NET INCOME TO REVENUE RATIOS AT RESPECTIVELY 7.3% AND 3.0%
H1 2009 KEY FINANCIALSSTRONG FREE CASH FLOW GENERATION
17 2009 HALF YEAR RESULTS
-87
+55 -288
+150+136,030 5,872
1,927
2,599
1,338
1,882
2,893
1,247
In €m
Water Europe
Waste Europe
International
H1 2008 Forex Tuck-in WaterEurope
WasteEurope
International& other
H1 2009
-1.2% excluding forex
Other (1)
(1) HQ revenue & R+I Alliance
GROWTH IN WATER EUROPE AND INTERNATIONAL DIVISIONS GROWTH IN WATER EUROPE AND INTERNATIONAL DIVISIONS
H1 2009 REVENUESGROWTH IN WATER, IMPACT OF CRISIS IN WASTE
-3.7%
5,872
H1 2009
-4.7%-2.7%Organic ∆
2,829
Q1 09
3,043Revenues
Q2 09In €m
18 2009 HALF YEAR RESULTS
Total H1 2009 revenues: €5,872m
H1 2009 REVENUESBALANCED POSITIONING
REVENUES BALANCED BY GEOGRAPHIES AND ACTIVITIESREVENUES BALANCED BY GEOGRAPHIES AND ACTIVITIES
Revenue by geographies
(1) Rest of the World (2) Central Europe, Mediterranean and Middle East
12%
2%5%
81%
13%
2%6%
79%
H108 H109
Australia
Europe
USA
RoW(1)
23%
Waste Europe
International
44%
Water Europe33%
International: €1,338m
North AmericaDegrémont
33%21%
19%
27%
Asia-Pacific
CEMME(2)
Water Europe: €1,927m
43% 57%Lyonnaise des EauxAGBAR 53%
21%
26%
UK/Scandinavia
France
Benelux/Germany
Waste Europe: €2,599m
19 2009 HALF YEAR RESULTS
-14
1,006
951
420
368
197
388
459
185
In €m
Water Europe
Waste Europe
International
H1 2008
Forex
H1 2009
-7.8% -1%
-4.2% excluding forex
BETTER PROFITABILITY IN Q2 DUE TO STRONG OPERATIONAL EFFORTS BETTER PROFITABILITY IN Q2 DUE TO STRONG OPERATIONAL EFFORTS
H1 2009 EBITDAMAINTAINED HIGH PROFITABILITY
16.2%16.9%15.4%EBITDA margin
951
H1 2009
436
Q1 09
514EBITDA
Q2 09In €m
Other -26 -34Q1 2009 Q2 2009
-36-5
20 2009 HALF YEAR RESULTS
H1 2009: PERFORMANCE BY DIVISIONWATER EUROPE
� +3.0% organic growth of revenue (€+55m): Lyonnaise des Eaux +2.9% (€+31m), AGBAR +3.1% (€+24m)
- Commercial dynamism- Tariffs increases (France, Spain, Chile and UK)- Continued trend of potable water volume reduction in Europe (-1% on average)- Decrease of works and services with limited impact on margins
� Pursuit of productivity efforts- +7.5% organic growth of EBITDA (€+28m)- High level of profitability : EBITDA margin improvement: 21.8% (+120bp) - €10m of Compass contribution in H1 2009- High free cash flow contribution at 8% of revenue
+3.0%
+7.5%
09/08∆ organic
1,882
388
20.6%
139
H1 2008
+3.2%
+10.4%
09/08∆ const
FX
1,927
420
21.8%
155
Revenue
EBITDA
EBITDA margin
FCF
H12009In €m
-1.0%349AGBAR Spain
-0.6%
09/08∆
321LDEF(1)
H12009Mm3 sold
(1) Retail volumes sold excluding mixed companies
21 2009 HALF YEAR RESULTS
H1 2009: PERFORMANCE BY DIVISIONWASTE EUROPE
� -10.3% organic growth (€-288m): France -10.1% (€-149m), UK/Scandinavia -10.9% (€-67m), Benelux/Germany -10.0% (€-72m)
- Half of sales decrease in Sorting & Recycling activities (price and volume negative effects)- Half from the reduction in collected and treated volumes, mainly C&I,
partly compensated by modest tariff increases (France, UK and Belgium)- Start of operation of EVI incinerator in April 2009 (Germany/Netherland)
� Profitability and cash generation protected- 14.2% EBITDA margin despite -21.1% organic decrease of EBITDA (€-94m)- Cost optimization (staff, fleet, sites mothballing, waste flow management, maximized internalization
of volumes): €29m of Compass contribution in H1 2009- Positive FCF thanks to increased maintenance capex selectivity- Unfavorable fuel hedges (€-19m in EBITDA for H1 2009): Waste Europe EBITDA margin of 14.9%
excluding fuel hedges
-10.3%
-21.1%
09/08∆ organic
2,893
459
15.9%
223
H12008
-7.3%
-17.8%
09/08 ∆ const
FX
2,599
368
14.2%
157
Revenue
EBITDA
EBITDA margin
FCF
H12009In €m
-5.9%8,548Total EfW + Landfill
+1.0%(2)
-9.2%
09/08∆
2,953
5,595
EfW – Ktons (1)
Landfill – Ktons (1)
H1 2009
(1) Non hazardous waste volume treated in Europe (2) Including effect of EVI incinerator
22 2009 HALF YEAR RESULTS
H1 2009 SORTING / RECYCLING
� Confidence in long term growth drivers- Presence on the full value chain is key in waste- Regulation and environmental willingness
to support the circular economy- Organization and growing maturity of the value segment- Development of industrial partnerships
� Activities strongly impacted by the crisisin the short term- Very low demand in all countries- Strong reduction in both volumes and prices:
-20% to -50% depending on commodities- Strong efforts relate to staff and capacity optimization
as well as contracts renegotiation
� Impact on H1 2009 performance- Revenues: €372m (6% of SE total sales vs 8% in H1 08)- Organic decrease: €-165m (-2.7% impact at SE sales level)
MARKET DIRECTLY AFFECTED BY THE CRISIS, LONG TERM STRATEGY MAINTAINED MARKET DIRECTLY AFFECTED BY THE CRISIS, LONG TERM STRATEGY MAINTAINED
-34%
09/08 org. ∆
-25% 372495Revenues (€m)(1)
H1 0809/08∆H1 09
(1) Revenues from sorting, recycling and material recovery
100
150
200
250
300
350
400
450
500
déc-0
6fé
vr-0
7av
r-07
juin-
07ao
ût-07
oct-0
7dé
c-07
févr
-08
avr-0
8jui
n-08
août-
08oc
t-08
déc-0
8fé
vr-0
9av
r-09
juin-
09
€ / T
onne
Spot Last quarter average
173
Average metal price E40 (Source UCFF)
-10
0
10
20
30
40
50
60
70
80
déc-06
févr-0
7avr-
07
juin-07
août-0
7oc
t-07
déc-07
févr-08
avr-08
juin-08
août-08
oct-0
8
déc-08
févr-09
avr-09
juin-09
€ / T
onn
e
Spot Last quarter average
25
Average paper price 1.02 (Source REVIPAP)
23 2009 HALF YEAR RESULTS
H1 2009: PERFORMANCE BY DIVISIONINTERNATIONAL
� +1.0% organic growth (€+13m) - Degrémont -2.5% (€-11m) but 27-month backlog in DB end June 09 (Al Dur, Rasafa, Baraki,
Bordeaux, Ciudad Juarez, Mutxamel…)
- North America -1.1% (€-2m) - Rate cases effects in Regulated activities (New Jersey +18%)- High renewal rate of contracts, at better margins- Poor weather conditions in H1, end of Milwaukee contract
- CEMME(2) +6.0% (€+21m) - Good performance of waste activity in Poland- Lydec: overall positive price effect and positive volume effect in all activities
- Asia Pacific +2.1% (€+5m)- Positive price and volume effect in collection and treatment in waste activities in Australia - Pursuit of growth in China
� +8.6% organic growth of EBITDA (€+15m)- €8m of Compass contribution in H1 2009
+1.0%
+8.6%
09/08∆ organic
1,247
185
14.8%
12
H1 2008
+6.0%
+4.6%
09/08 ∆ const FX
1,338
197
14.7%
20
Revenue
EBITDA
EBITDA margin
FCF
H1 2009In €m
-7.5%
+5 months
+0.2%
09/08∆
145
27 months
62
United Water(1) - Mm3 sold
Degremont – backlog
Lydec – Mm3 sold
H1 2009
(1) Volume indicator based on 5 main utilities (2) Central Europe, Mediterranean and Middle East
24 2009 HALF YEAR RESULTS
5%
24%
44%
27%
CUMULATED EBITDA IMPACT TO DATE (€104m) BREAKDOWN BY NATURE
Procurement savings
Operational savings
SG&A savings
Impact Health & Safetyand risk management
€49M OF STRUCTURAL GAINS IN H1 2009, ABOVE MID-YEAR OBJECTIVE €49M OF STRUCTURAL GAINS IN H1 2009, ABOVE MID-YEAR OBJECTIVE
H1 2009COMPASS: ADVANCEMENT AHEAD OF SCHEDULE
CUMULATED EBITDA IMPACT TO DATE (€104m) BREAKDOWN BY DIVISIONS
9%20%
48%
23%
Water Europe
Waste Europe
International
Other & HQ
Actual New target
Initial objective
55
01/01/08
180
12/09 12/10
125
In €m
40
80
120
12/08
104
06/09
25 2009 HALF YEAR RESULTS
� Optimization of logistic costs and organizations- Optimization of waste flow management- Decrease in number of trucks: -2.6% (~ -320 trucks)
� Mothballing/closure of 14 industrial sites - 3 sorting plants (France)- 2 landfills (Sweden, UK)- 3 metal reprocessing sites (UK)- 6 transfer stations and depots (UK)
� Optimization of manpower costs - Reorganization of work- Reduction of overtime and interim labor- Short time working
� Renegotiation of purchasing contracts
H1 2009COMPASS: EXAMPLES OF ON-GOING INITIATIVES TO IMPROVE OPERATIONAL EFFICIENCY
26 2009 HALF YEAR RESULTS
- 5.5%9511,006EBITDA
-8.2%(407)(376)Depreciation & amortization
-(150)(122)Other (Concession charge, Provisions, ESOP (1))
+2.7%(133)(129)Cost of debt
-189Other financial result
+14.1%2118Associates
-72%(41)(146)Income tax
-22.8%(53)(69)Minority interest
- 12.8%175201NET RESULT GROUP SHARE
-29.8%363518INCOME FROM OPERATING ACTIVITIES
10(2)
508
H1 2008
-
- 22.6%
09/08 ∆
393CURRENT OPERATING INCOME
(30)(3)Assets disposal and Other
H1 2009In €m
(1) Free shares, ESOP & Stock Options relative to GDF SUEZ global programs(2) Of which sale of SUEZ shares by AGBAR for €42m(3) Restructuring costs mainly
H1 2009 EARNING PER SHARE OF 0.36€H1 2009 EARNING PER SHARE OF 0.36€
Cost of net financial debt: 4.6% versus 5.6% in 2008
€33m of deffered tax asset
H1 2009: FROM EBITDA TO NET RESULT GROUP SHARE
27 2009 HALF YEAR RESULTS
H1 2009H1 2008
275
428+56%(1)
826
428-285 -26 -36
H1 2009: FREE CASH FLOW GENERATIONSTRONG INCREASE IN FCF FREE CASH FLOW
951
-1254.6%
FCF/Revenues
7.3%
EBITDA Concessions, restructuring, etc.
Operatingcash flow
MaintenanceCapex
Changein WCR
Taxexpense(1)
Net financial expense
Free CashFlow
-52
In €m
(1) Including reimbursement in 2009 of €76m for tax paid in France in 2008
28 2009 HALF YEAR RESULTS
H1 2009: NET FINANCIAL DEBTMAINTAINING A STRONG BALANCE SHEET
6,507
5,971
-428
+318
+403
+243
3.18xNet financial debt/EBITDA
3.18xNet financial debt/EBITDA
(1) Including development capex of €260m, disposal €60m and financial investments of €118m(2) Including a €13m forex effect and €182m perimeter
2.84xNet financial debt/EBITDA
2.84xNet financial debt/EBITDA
Net financial debt12/31/08
Free cashflow
Net developmentinvestments(1)
Dividendspaid
Others(2) Net financial debt06/30/09
29 2009 HALF YEAR RESULTS
Net financialinvestments
MaintenanceCapex
317
DevelopmentCapex
146
WaterEurope
WasteEuropeInternational 39%
30%
23%
� Optimization of maintenance capex
- 4.9% of revenues vs 5.3% for H1 2008
� Selective developments to fuel future growth
- Recycling and sorting facilities
- Equipment
- Energy-from-Waste Facilities (Baviro)
- Mapucho interceptor (Chile)- Increase in Regulated Asset Base
in the US- New water treatment plants (Vallauris,
Coudekerque)
� H1 2009 investment in line with FY objective of €1.3bn(3)
H1 2009: NET INVESTMENTS
58(2)
285
260
H108 H109
(1) Excluding AGBAR takeover €708m(2) Including Gas Natural Capital increase for €89m(3) Excluding strategic investments
80(1)
543603
Other8%
30 2009 HALF YEAR RESULTS
(1) Excluding GDF SUEZ(2) On net financial debt
INCREASED MATURITY & DIVERSIFICATION IN LINE WITH FINANCING POLICIESINCREASED MATURITY & DIVERSIFICATION IN LINE WITH FINANCING POLICIES
GROSS DEBT BREAKDOWN BY TYPEAT JUNE 30, 2009
�Liquidity at 06/30/09: €4.5bn
- Cash: €3.2bn
- Undrawn credit lines: €1.2bn
�Diversification of financing sources
- €2.35bn bond raised between April and June 2009 (July 8, 2009: 15y bond issue at €0.5bn)
- GDF SUEZ: financing agreement up to 2010
- Moody’s rating: A3 (LT), Prime 2 (ST), stable outlook
- 69% fixed interest rate / 31% variable(2)
�Extension of average maturity
GDF SUEZLeasing
Others
Banks
Bonds
32%
8%
5%
35%
21%
H1 2009: NET FINANCIAL DEBTSTRONG FINANCIAL PROFILE
EXTENSION OF AVERAGE MATURITY(1)
FY 2007 FY 2008 H1 2009 July 09
2.2y
5.7y4.4y
5.1y
31 2009 HALF YEAR RESULTS
Overall stability at constant FXREVENUE & EBITDA
> €120m (vs. 2007)COMPASS SAVINGS
> 2008 FREE CASH FLOWFREE CASH FLOW
Around 3 timesNET FINANCIAL DEBT/EBITDA (2)
c. €1.3bn (-25% vs 2008)TOTAL NET INVESTMENTS (1)
FY 2009 OBJECTIVES
PRIORITY TO FCF GENERATION & SOLID BALANCE SHEET2009 OBJECTIVES
BEST EFFORTS TO REACH OVERALL OPERATIONAL STABILITY AT CONSTANT FOREXBEST EFFORTS TO REACH OVERALL OPERATIONAL STABILITY AT CONSTANT FOREX
(1) Excluding strategic investments(2) Based on rolling 12 months EBITDA
HALF YEAR RESULTS
JEAN-LOUIS CHAUSSADE
CONCLUSION
33 2009 HALF YEAR RESULTS
CONCLUSION
� Good resilience to crisis withCompass program ahead of schedule
� Delivering on priorities
� Overall operational stability at constant forex for FY 2009
� Unchanged strategic vision and confirmed balanced business model
� Reinforced competitive positioningto seize growth opportunities
APPENDICES
35 2009 HALF YEAR RESULTS
APPENDICESTABLE OF CONTENTS
� Summary financial statements 36
� Shareholding structure 40
� Activity of divisions 42
� Sustainable development 51
� Scope and FX effects 55
� Financial indicators 58
� Tax and Debt 74
� Assets & liabilities overview 79
Pages
Summary financial statements
APPENDICES
37 2009 HALF YEAR RESULTS
SUMMARY BALANCE SHEET
6,2786,492Other Liabilities
06/30/0912/31/08LIABILITIES
21,47419,711TOTAL LIABILITIES
9,6607,721Financial Debt
1,3721,328Provisions
4,1644,170TOTAL EQUITY
697638Minority Interests
3,4683,532Equity, group share
06/30/0912/31/08ASSETS
21,47419,711TOTAL ASSETS
1,9891,669o/w cash & cash equivalents
1,21051o/w financial assets at fair value through income
7,8706,579CURRENT ASSETS
2,9712,898o/w goodwill
13,60413,133NON CURRENT ASSETS
38 2009 HALF YEAR RESULTS
SUMMARY INCOME STATEMENT
175201NET RESULT GROUP SHARE
69
(146)
18
(120)
518
508
(369)
6,030
H1 2008
53
(41)
21
(115)
363
393
(420)
5,872
H1 2009
Minority interest
Income tax
Associates
In €m
Financial Result
INCOME FROM OPERATING ACTIVITIES
CURRENT OPERATING INCOME
Depreciation, Amortization & Provisions
REVENUE
39 2009 HALF YEAR RESULTS
SUMMARY CASH FLOW STATEMENT
1,482
15
1,466
(32)
610
95
0
(120)
1,105(1)
(470)
(1,244)
77
(858)(1)
(464)
681
(92)
(110)883
H1 2008
1,989
321
1,669
40
71
(1,155)
1
(94)
1,722
(403)
(556)
107
(118)
(545)
765
(26)
(36)826
H1 2009
CASH AND CASH EQUIVALENT AT THE END OF THE PERIOD
Total cash flow for the period
CASH AND CASH EQUIVALENT AT THE BEGINNING OF THE PE RIOD
Impact of currency, accounting practices and other
CASH FLOW FROM FINANCIAL ACTIVITIES
Other cash flows
Capital increase
Interests paid on financial activities
Balance of reimbursement of debt / new debt
Dividends paid
CASH FLOW FROM INVESTMENT ACTIVITIES
Disposals and other investment flows
Financial investments
In €m
Net tangible and intangible investments
CASH FLOW FROM OPERATING ACTIVITIES
Change in operating working capital
Income tax paid (excl. income tax paid on disposals)Gross cash flow before financial loss and income tax
(1) Including AGBAR take over €708m
Shareholding structure
APPENDICES
41 2009 HALF YEAR RESULTS
SHAREHOLDING STRUCTURE
100.00%489,699,060489,699,060TOTAL
253,117,737
1,350,000
235,231,324
4,125,000
6,191,630
6,906,750
9,599,359
35,001,610
173,406,974
51.73%
0.23%
48.04%
0.84%
1.26%
1.41%
1.96%
7.15%
35.41%
% atJune 30, 2009
December 31, 2008
253,317,736
1,150,000
235,231,324
4,125,000
6,191,630
6,906,750
9,599,359
35,001,611
173,406,974
June 30,2009
Public & employees
Treasury Stocks
TOTAL SHAREHOLDERS AGREEMENT
Sofina
CNP Assurances
Areva
CDC
Groupe Bruxelles Lambert
GDF SUEZ
Activity of divisions
APPENDICES
43 2009 HALF YEAR RESULTS
EVOLUTION OF ESTIMATED GDP GROWTH FOR 2009
-6,0%
-5,0%
-4,0%
-3,0%
-2,0%
-1,0%
0,0%
1,0%
2,0%
3,0%
4,0%
+ 1,3%
- 3,8%
- 2,0%
- 0,3%
+ 0,5%
+ 3,8%
- 1,3% - 1,4%
+ 0,5%
+ 2,2%+ 3,0%
- 3,8%
Euro Zone US Advanced Economies World
Ap/May 08 Oct 08 April 09Jan 09Nov 08 July 09
EURO ZONE-4.8%
(IMF July 2009)
Source: IMF
44 2009 HALF YEAR RESULTS
WATER EUROPE
NEW CONTRACTS RENEWALS
(1) Syndicat Intercommunal d'Alimentation en Eau Potable (2) Communauté d'Agglomérations
� France - Le Havre (€19m, 4y)- Port-Saint-Louis-du-Rhône (€18m, 20y)- Soviba Le Lion d’Angers Terrena (€7m, 10y)- Collectivité les hautes rivières (€8m, 25y)- Siaap (€7m, 4y)
� Spain- Marchena-Sevilla (17y) - Wastewater treatment plants in Madrid
8 and 4 years (canal Isabel II)- Garrigues Sud (2.5y)- Martorell-Barcelona (30y)- Coria Caceres (25y)
� OIS- Geostock (€3m)- Graulhet (€4m)- Scottish & Newcastle (€4m)- Electrabel (€3m, 2y)
� Safege- Strasbourg (€2m)- Algeria (€25m)
� France - SIAEP de Montbazens-Rignac (€43m, 12y)- SIVOM Bassin Ehn, (€18m, 15y) - Syseg de Givors (€18m, 3y)- Syndicat du Puy-en-Velay (€13m, 12y)- Syndicat de Salles-Mios (€12m, 12y) - SI Roannaise de l’Eau (€11m, 8y)- Tarare (€11m, 12y)- Cernay-la-ville (€9m, 12y)- Fleury Merogis (€8m, 8y)
� Spain- Torremolinos-Malaga (25y)- Olot-Girona (20y)- Ribera de Gata-Caceres (10y)- Villanueva de la Serena-Badajoz (25y)- Algorfa-Alicante (20y)
ACQUISITIONS
� France - ISIOM (April 2009, €5m of revenues in 2008)
45 2009 HALF YEAR RESULTS
WASTE EUROPE
NEW CONTRACTS RENEWALS
ACQUISITIONS
� Sita France - Municipal: Bordeaux (€11m, 4y), Aix (€5m, 3y)
- I&C: Carrefour (€4m, 1y), Coca-Cola, Arkema, Leroy Somers
� Sita UK- Kimberly Clark (€4m, 3y), Airbus (€4m, 4y),
Gate Gourmet (€4m, 3y)
� Sita Sweden- SSAB (€4m, 3y)
- Lidingö, Svedala, Skara & Malmö (€29m, 5y average)
� Sita Netherland- EVI incinerator (365,000 tons), in service
on April 2, 2009
- CRH (€2m, 4y), United Cooperative Hospitals (€1m, 1.5y), Van der Valk Hotels (€1m, 3y),Procter & Gamble (€1m, 2y)
� Sita Germany - IHKW, Bottom ashes (€8m, 15y), WÖRWAG
(€4m, 5y), LK Hildburghausen (€3m, 5y)
� Sita Flanders- Limburg.Net (€34m, 8y)
� Guernsey: Preferred bidder for EfW facility (DBO contract, £194m)
� Sita France - Vichy Val d’Allier (€68m, 20y)
- SMETOM du Haut-Doubs (€38m, 15y)
- Montpellier (€29m, 15y)
- SMICTOM Carcassonnais (€17m, 5y)
- Grand Lyon (€13m, 5y)
- SMICTOM Ouest Audois (€12m, 8y)
- Pontarlier (€36m, 5+5+5y)
� Sita UK - Doncaster (£53m, 7y)
� Sita Belgium - Recupel (€7m, 3y), AIDE (€4m, 3y)
� Sita Sweden- Allren: waste management company,
with 80 employees, 70 vehiclesand total annual revenues of €13m
� Sita UK- Swansea: April 2009, revenues of €13m
46 2009 HALF YEAR RESULTS
-10
0
10
20
30
40
50
60
70
80
avr-07
juin-0
7oct-
07
avr-08
juin-0
8oct-
08
avr-09
juin-0
9
25
Last quarter average
Price
E40 MONTHLY AVERAGE PRICE (ferrous metal, recycled) ALUMINIUM PRICE (raw material)
PET PRICE (plastic, raw material) PAPER 1.02 PRICE (recycled material)
€/ton $/ton
€/ton
Source: CSEMP Source: REVIPAP
COMMODITY PRICES EVOLUTION
100
150
200
250
300
350
400
450
500
avr-0
7jui
n-07
oct-0
7
avr-0
8jui
n-08
oct-0
8
avr-0
9jui
n-09
173
1 200
1 250
1 300
1 350
1 400
1 450
1 500
1 550
1 600
1 650
1 700
mar
s-07
juin-
07
sept
-07
mar
s-08
juin-
08
sept
-08
mar
s-09
juin-
09
1 403
1 200
1 400
1 600
1 800
2 000
2 200
2 400
2 600
2 800
3 000
3 200
3 400
janv
-07
avr-0
7
juil-
07
oct-0
7
janv
-08
avr-0
8
juil-
08
oct-0
8
janv
-09
avr-0
9
juil-
09
1 818
Source: UCFF
€/ton
Source: LME
47 2009 HALF YEAR RESULTS
INTERNATIONAL
NEW CONTRACTS
� Degrémont- Melbourne (€1.2bn, 30y)- Malta (€35m) - Baraki (Algeria, €68m)- Brazzaville (Congo, €16m)
- Cleveland (USA, €37m)- Ciudad Juarez (Mexico, €154m)
� Asia Pacific- Tianjin - Water (€77m)- Yuelaï - Water (€0.8bn, 40 years)- Hong Kong - Waste Transfert station (€25m, 4.5y) - Brisbane - Waste (€120m, 8y)
� Middle East- Preferred bidder for Abu Dhabi
hazardous waste management contract (20,000t, €200m, 15y)
- Oudja - Waste (Morocco, €37m, 10y) - El Jadida - Waste (Morocco, €13m, 7y)- Disi Aman - Water (Jordan, $200m, 25y)
ACQUISITIONS
� China - JV with CSPU for the Suzhou Sludge
Project - Water (30y, €30m, 49% Sino French)- Earth Tech’s activities in Tianjin - Water (€12m)
48 2009 HALF YEAR RESULTS
THE US WATER REGULATED BUSINESS MODEL
50% Equity
50% Debt
Shareholder ReturnAllowed ROE x
Rate base financed by equity
Corporate Income Taxes
Cost of debt
Depreciation & Amortization
OPEX
Revenues Requirement : basis to set the new rates
1. Set Regulated Asset Base
� Rate base is defined based on “Used and useful assets”
� Financing: 50/50 gearing accepted by regulators
2. Set Allowed Net Return
� Regulators usually allow ROE in the range of 10%
� Growth in earnings primarily driven by rate base growth (CAPEX)
3. Set new Rates
� Rates are set to allow recovery of OPEX, assets (through D&A), cost of debt and all taxes whilst leaving the utility a fair return on equity invested
+
All expenses that are deemed prudent and fair to the
customer are pass-through
=
Rate Base Targeted Net Result
49 2009 HALF YEAR RESULTS
313 327 360 385
186 189 218 267
2005 2006 2007 2008
Regulated Non Regulated
UNITED WATER
UW: Dynamic Rate Case strategy20 utilities in 8 states
In $m
UW: Revenue Evolution
1,2 1,31,4
1,6
2005 2006 2007 2008
UW: RAB(1) growth: 10% CAGR
+8.0%+11.4%
+10.6%
Utility Effective date for new ratesROE
granted
Amount granted
(M$)% growth
New Jersey April 2009 10.3% 26.5 18%
Arlington Hills April 2009 (2 years phase in) 0.2 23%West Milford April 2009 (3 years phase in) 0.3 48%
Toms River November 2008 10.0% 10.1 62%
Ow ego / Nichols April 2008 0.3 30%
Connecticut March 2008 1.0 28%
New Jersey October 2007 10.0% 19.3 15%
Arkansas August 2007 0.9 12%
New York December 2006 (3 years phase in) 12.0 27%
Delaw are January 2007 3.8 21%
Pennsylvania September 2006 5.9 25%
Idaho August 2006 3.6 11%New Rochelle 2005 (4 years phase in) 9.7% 5.2 20%
Rate case starting or in progress in 2009 for :New Jersey, Toms River, New York, Delaw are, Pennsylvania, Idaho, New Rochelle
� United Water gets ~10% ROE in most jurisdictions
� Intensified CAPEX programs to fuel rate case strategy
� Significant rate case activity will take place in 2009 and 2010
� United Water gets ~10% ROE in most jurisdictions
� Intensified CAPEX programs to fuel rate case strategy
� Significant rate case activity will take place in 2009 and 2010
(1) Net Utility Plant less contributions received
499 516578
652
In $bn
50 2009 HALF YEAR RESULTS
16.9x17.6x
19.3x20.1x
20.8x21.9x
22.7x
25.8x
30.9x
Penni
chuc
k Cor
pYor
k Wat
er C
oSJW
Cor
p
Amer
ican
State
s Wat
er C
oAqu
a Am
erica
Inc
Conne
cticu
t Wat
er S
ervic
es in
c
Midd
lesex
Wat
er C
o
Califo
rnia
Wat
er S
ervic
e Gro
up
Artesia
n Res
ourc
es C
orp
1.3x1.4x
1.7x1.8x
1.9x1.9x2.1x
2.3x
2.5x
York W
ater C
oAqu
a Amer
ica In
cPen
nichu
ck C
orp
Ameri
can S
tates
Wate
r Co
Califor
nia W
ater
Ser
vice G
roup
Conne
cticu
t Wate
r Ser
vices
inc
SJW C
orp
Midd
lesex
Wate
r Co
Artesia
n Reso
urce
s Cor
p
US WATER REGULATED UTILITIES MARKET MULTIPLES
PRICE EARNING RATIO(1)
(1) Source: Edward Jones report, June 30, 2009
Weighted Average
PRICE TO BOOK RATIO(1)
Sustainable development
APPENDICES
52 2009 HALF YEAR RESULTS
SUSTAINABLE DEVELOPMENT 2012 OBJECTIVES
� Publication of 2008 performance and of 2012 objectives- B+ rating of Global Reporting Initiative (GRI)
� 4 priorities & 12 commitments: 2012 improvement objectives
(1) Lyonnaise des Eaux scope
2 - Innovate to respond to environmental challenges
� 95% of the waste sent to landfills equipped with biogas collection and treatment systems
� Improve energy efficiency by 5%
� Increase the production of renewable energy by 10%
� 100% of sensitive sites to have implementeda biodiversity action plan
4- Build our development with all stakeholders
� Generalize the dialogue with the stakeholdersof our operating subsidiaries
� Implement a dedicated reporting system for this commitment
� Obtain a statement of reasonable assuranceon all verified environmental and social indicators
1- Conserve resources and engagein the "circular economy"
� Raise the global recovery rate of household and non-hazardous industrial waste to 36%
� Save the equivalent of the consumption of a French town of 700,000 inhabitants within four years (1)
3- Empower our employees as actorsof sustainable development
� Maintain the effort to provide an average of 15 hours of annual training per employee
� Reduce the frequency rate of workplace accidentsto below 14
� Increase the proportion of women in the workforceto 20% and women in management to 26%
53 2009 HALF YEAR RESULTS
SUSTAINABLE DEVELOPMENT MELBOURNE, A REFERENCE PROJECT
� Contract specificities- Joint venture : AquaSure (SUEZ ENVIRONNEMENT/ Degrémont, Thiess and Macquarie Group)- Contract : design, construction and operation- Capacity : 450,000 m3 of drinking water per day, (possible extension to 600,000 m3 per day)- Location : 80 km south of Melbourne on the Bass Strait- Investment : €2billion
� Revenues for SUEZ ENVRIONNEMENT:€1.2 billion over 30 years- Design and construction of the plant
(3 years, Thiess Degrémont joint-venture)- Operation (27 years, Dégremont Thiess Services
joint-venture)
� Financing:- Financing provided by 12 banks - Guaranties: COFACE and KEIS (Korean agency for export financing)
� Committed to respond to sustainable development issues
SUEZ ENVIRONNEMENT CONFIRMS ITS LEADING POSITION IN THE FIELD OF SEAWATER DESALINATION BY REVERSE OSMOSIS
SUEZ ENVIRONNEMENT CONFIRMS ITS LEADING POSITION IN THE FIELD OF SEAWATER DESALINATION BY REVERSE OSMOSIS
54 2009 HALF YEAR RESULTS
SUSTAINABLE DEVELOPMENT MELBOURNE, A REFERENCE PROJECT
� An innovative architectural project:- Complete integration into the natural environment- Architectural concept including rooftop gardens- Sand dune settlement / creation / development- Total re-planting program for the site and creation
of a coastal park- Minimal visual and acoustic impact
� A solution which minimizes the impact on populationand environment - Choice of a buried electric transmission cable
(on more than 80km)- The transmission cable will be laid along the pipe discharge
� 100% of the plant’s energy consumption compensatedby the supply of carbone certificates. Long term contracts with AGL through renewable energyprojects development in Victoria State- Macarthur 330 MW wind farm (400 jobs) - Oaklands Hill 63MW wind farm (200 jobs)
Scope and FX effects
APPENDICES
56 2009 HALF YEAR RESULTS
MAIN CHANGES IN CONSOLIDATION SCOPE
WATER EUROPE INTERNATIONALWASTE EUROPE
FC = Full Consolidation / PC = Proportional Consolidation
2009 ACQUISITIONS
� Jiangsu Water Group (Agbar): PC at 51%, from January 2009
� Grupo Lince (Agbar): FC from January 09
2008 ACQUISITIONS
� Essal (Agbar): PC at 51% from July 08
DISPOSAL / EXIT
� ASM (Agbar): PC at 51%, until March 2008
� Tribugest (Agbar): PC at 51%, until December 2008
2009 ACQUISITIONS
� Allren (SITA Sweden): FC from Q2 2009
START OF OPERATION
� EVI (SITA NL): FC from April 2009
2008 ACQUISITIONS
� Val Horizon (SITA Fr): FC from July 2008 (6 months)
� Boone Comenor (SITA Fr): FC from September 2008(4 months)
� Doopa (SITA Flandres): FC from June 2008 (6 months)
2008 ACQUISITIONS
� NACO (UW): FC from July 08 (5 months)
� USG (UW): FC from August 08 (5 months)
� WPT (Degrémont): FC from July 2008
DISPOSAL / EXIT
� Spolana (SITA CZ), FC until March 2008
2009 ACQUISITIONS
� Tianjin (Chine JVs): PC at 52% from March 2009
57 2009 HALF YEAR RESULTS
IMPACT OF CURRENCIES EVOLUTION
1.39
1.41
1.53
1.33
USD
0.95
0.85
0.78
0.89
GBP
2.03
1.74
1.65
1.88
AUD
10.87
10.81
9.38
10.86
SEK
4.48H1 2009 average rate
4.15Closing rate at 12/31/2008
PLN
4.45Closing rate at 06/30/2009
3.49H1 2008 average rate
(21)
(9)
(38)
Other
50
(11)
(81)
GBP
(16)
6
32
USD
13
(14)
(87)
Total
Net Financial Debt
in €m
EBITDA
Revenue
The average rate applies to the income statementThe closing rate applies to the balance sheet
Financial indicators
APPENDICES
59 2009 HALF YEAR RESULTS
REVENUE(1) BY DIVISION
6,030
8
370
254
193
431
1,247
722
700
1,471
2,893
807
1,074
1,882
H1 2008
5,872
8
365
261
277
436
1,338
664
547
1,388
2,599
822
1,104
1,927
H1 2009
-3.7%
+0.4%
+6.0%
+2.1%
-1.1%
-2.5%
+1.0%
-10.0%
-11.0%
-10.1%
-10.3%
+3.1%
+2.9%
+3.0%
Organic ∆
-2.6%TOTAL
+0.4%OTHER(4)
-1.4%CEMME(3)
+2.8%Asia-Pacific
+43.6%North America
+1.1%Degrémont
+7.3%INTERNATIONAL
-8.1%SITA Benelux/Germany
-21.8%
-5.6%
-10.2%
+1.8%
+2.8%
+2.4%
09/08 ∆
SITA UK/Scandinavia
In €m
SITA France
WASTE EUROPE
AGBAR
Lyonnaise des Eaux(2)
WATER EUROPE
(1) After intercompany eliminations (2) Including Lyonnaise des Eaux, Eurawasser, Safege, OIS, Italy.(3) Central Europe, Mediterranean and Middle East (4) R&I Alliance, HQ.
60 2009 HALF YEAR RESULTS
REVENUE BY GEOGRAPHIES
6,030
701
5,330
145
274
1,147
617
730
2,416
4,911
H1 2008
5,872
759
5,113
135
369
1,047
452
736
2,374
4,609
H1 2009
-26.7%7.7%United Kingdom
+0.8%12.5%Spain
-2.6%
+8.4%
-4.1%
-7.4%
+34.7%
-8.7%
-1.8%
-6.1%
09/08 ∆
100.0%TOTAL
12.9%Rest of the world
87.1%SUB TOTAL
2.3%
6.3%
17.8%
40.4%
78.5%
2009 %
Australia
In €m
North America
Other Europe
France
EUROPE
61 2009 HALF YEAR RESULTS
REVENUE SCOPE EFFECT BY DIVISION
150
62
83
5
Total Scope
187
79
83
25
First time consolidation
(37)
(17)
0
(20)
Disposal
INTERNATIONAL
WASTE EUROPE
TOTAL
In €m
WATER EUROPE
62 2009 HALF YEAR RESULTS
SPLIT OF REVENUE GROWTH BY DIVISION
2.5%
0.0%
+5.0%
+3.0%
+0.3%
Scope ∆
-3.7%
+0.4%
+1.0%
-10.3%
+3.0%
Organic ∆
6,030
8
1,247
2,893
1,882
H1 2008
5,872
8
1,338
2,599
1,927
H1 2009
0.0%+0.4%Other
1.3%+7.3%INTERNATIONAL
-3.2%-10.2%WASTE EUROPE
-1.5%
-0.8%
Forex ∆
-2.6%TOTAL
+2.4%
09/08 ∆In €m
WATER EUROPE
63 2009 HALF YEAR RESULTS
EBITDA BY DIVISION
1,006
(26)
185
459
388
H1 2008
951
(34)
197
368
420
H1 2009
-33.1%-33.1%Other(1)
+8.6%+6.5%INTERNATIONAL
-21.1%-19.8%WASTE EUROPE
-6.1%
+7.5%
Organic ∆
-5.5%TOTAL
+8.3%
09/08 ∆In €m
WATER EUROPE
(1) R&I Alliance, HQ.
64 2009 HALF YEAR RESULTS
CURRENT OPERATING INCOME (COI) BY DIVISION
508
(47)
123
232
200
H1 2008
393
(59)
111
132
210
H1 2009
-23.4%-22.5%TOTAL
-24.4%
-9.7%
-43.0%
+4.5%
09/08 ∆
-24.4%Other
-8.7%INTERNATIONAL
-45.4%WASTE EUROPE
+4.9%
Organic ∆In €m
WATER EUROPE
65 2009 HALF YEAR RESULTS
508
(24)
(105)
+7
(376)
1,006
H1 2008
- 22.6%
+16.7%
+3.8%
-
-8.2%
- 5.5%
09/08 ∆
(407)Depreciation & amortization
393CURRENT OPERATING INCOME
(109)Net disbursements under concession contracts
951EBITDA
(28)Employees compensation plans in shares(1)
(13)Net provisions release / (accrual)
H1 2009In €m
(1) Free shares, ESOP & Stock Options relative to GDF SUEZ
H1 2009: FROM EBITDA TO COI
66 2009 HALF YEAR RESULTS
393
(28)
(109)
(13)
(407)
951
TOTAL
210
-
(82)
(13)
(115)
420
WaterEurope
132
-
(17)
5
(224)
368
WasteEurope
111
-
(10)
(9)
(66)
197
International
(59)
(28)
-
5
(1)
(34)
Other
Depreciation & amortization
CURRENT OPERATING INCOME
Net disbursements under concession contracts
EBITDA
Employees compensation plans in shares(1)
Net provisions
In €m
(1) Free shares, ESOP & Stock Options relative to GDF SUEZ
H1 2009: FROM EBITDA TO COI BY DIVISION
67 2009 HALF YEAR RESULTS
+2.7%(133)(129)Cost of debt
-189Other financial result
+14.1%2118Associates
-71.9%(41)(146)Income tax
-22.8%(53)(69)Minority interest
- 12.8%175201NET RESULT GROUP SHARE
-29.8%363518INCOME FROM OPERATING ACTIVITIES
(30)
40(1)
508
H1 2008
+8.4%
-
- 22.6%
09/08 ∆
(32)(2)Other
393CURRENT OPERATING INCOME
2Assets disposal
H1 2009In €m
(1) Of which €42m relative to sale of SUEZ shares by AGBAR(2) Mainly restructuring costs
H1 2009: FROM COI TO NET RESULT GROUP SHARE
68 2009 HALF YEAR RESULTS
FROM EBITDA TO GROSS CASH FLOW BEFOREFINANCIAL RESULT AND INCOME TAX
883
2
14
(28)(1)
(7)
(105)
1,006
H1 2008
826
(4)
18
(16)
(14)
(109)
951
H1 2009
Provision for employee benefit
Dividends from associates
Restructuring
Depreciation of current assets
Net disbursements under concession contracts
GROSS CASH FLOW BEFORE FINANCIAL RESULT AND INCOME TAX
In €m
EBITDA
(1) Of which - €19m of spin-off & IPO costs
69 2009 HALF YEAR RESULTS
NET INVESTMENTS BY NATURE AND DIVISION
(378)
(91)
(96)
(126)
(64)
Development investments
(603)60(285)TOTAL H1 2009
(48)44(1)Other
(138)4(45)International
(234)11(119)Waste Europe
(183)
Total Net investmentsDisposal
Maintenanceinvestments H1 2009 (In €m)
(0)(118)Water Europe
(1) Excluding €708m related to AGBAR take over
(296)(1)
(4)
(68)
(163)
(61)
Development investments
(543)(1)70(317)TOTAL H1 2008
(6)(1)(1)Other
(117)(3)(46)International
(312)24(173)Waste Europe
(107)
Total Net investmentsDisposal
Maintenanceinvestments H1 2008 (In €m)
50(97)Water Europe
70 2009 HALF YEAR RESULTS
FREE CASH FLOW
275
26
34
(149)
(110)
(92)
(317)
883
H1 2008
428
31
23
(105)
(36)
(26)
(285)
826
H1 2009
Change in Working Capital
Cash Tax Expenses
Financial Interests Paid
FREE CASH FLOW
Dividends Received on Fixed Financial Assets
Financial Interests Received
Maintenance capex
In €m
GROSS CASH FLOW BEFORE FINANCIAL RESULT AND INCOME TAX
71 2009 HALF YEAR RESULTS
CASH FLOW GENERATION
(80)
(11)
4
(142)
(61)
(29)
(19)
178
International
61
(3)
11
(245)
49
(69)
(25)
343
WasteEurope
536CHANGE IN NET FINANCIAL DEBT
(241)∆ in perimeter and FX / MtM on net financial debt
(318)Dividends to shareholders
23933TOTAL
(85)(1)(70)Dividends to minorities
60
(662)
(25)
(36)
(55)
826
H1 09
44(0)Assets disposals
OthersWater
EuropeIn €m
(92)(183)Total investments
(47)34Change in Working Capital
148(85)Income tax
(12)0Net interest paid on investment & financial activities
(31)337Gross cash flow before financial loss and income tax
72 2009 HALF YEAR RESULTS
CHANGE IN SHAREHOLDER EQUITY
(84)Dividend minorities
4,164
120
6
42
(318)
53
175
4,170
H1 2009
Net result minorities
Dividend group share
Forex impact
Shareholder Equity at 06/30/2009
Other
Fair value adjustments and other
Net result group share
In €m
Shareholder Equity at 12/31/2008
73 2009 HALF YEAR RESULTS
CAPITAL EMPLOYED AT 06/30/2009
(551)Others
(1,310)Provisions
233Investment in associates
708Net financial assets
8,542Tangible and intangible assets, net
2,971Net goodwill
10,591CAPITAL EMPLOYED AT 06/30/09
As of 06/30/09In €m
252Others
2,676International
4,356Waste Europe
3,306Water Europe
10,591CAPITAL EMPLOYED AT 06/30/09
As of 06/30/09In €m
Tax and Debt
APPENDICES
75 2009 HALF YEAR RESULTS
TAX POSITION
36.7%
(146)
(121)
(25)
397
H1 2008
16.5%
(41)
(97)
56
248
H1 2009
EFFECTIVE TAX RATE
Income Tax
o/w Current income tax
o/w Deferred income tax
In €m
Income before tax & share in net income from Associates
� Deferred tax - Non recurring impact: €33- French tax group impact: €39m
76 2009 HALF YEAR RESULTS
2009 BONDS
5.50%160€500m15 yearsJuly 22, 2024FR0010780528July 8, 2009
May 19, 2009
May 7, 2009
March 31, 2009
March 31, 2009
Pricing date
4.875%160€300m5 yearsApril 8, 2014FR0010745984
€250m
€800m
€1,000m
Amount
June 8, 2017
April 8, 2019
April 8, 2014
Maturity date
5.20%1808 yearsFR0010765859
FR0010745976
FR0010745984
Code ISIN
6.25%30010 years
4.875%
Coupon RateSpread Duration
2255 years
77 2009 HALF YEAR RESULTS
July 2009
163485
302
127911
34468525
0 6
3,071(2)
1,413
1,142
1,479
2009 2010 2011 2012 2013 2014 >2014
FINANCIAL DEBT AND CASH POSITIONAT END OF JULY 2009
GROSS DEBT MATURITY PROFILE(1)
(1) Gross debt excluding discounted interests(2) €500m 15-year bonds settled on July 22nd, 2009
GDF SUEZ
External Debt
Undrawncredit lines
CASH POSITION
3,230
1,224
Cash at the end of June
500 (2)
78 2009 HALF YEAR RESULTS
FINANCIAL DEBT AT 06/30/09
NET FINANCIAL DEBT BREAKDOWNBY CURRENCY
GBP
OTHER
EURO
USD
57%
18%7%
19%
GROSS DEBT BREAKDOWN BY TYPE
BONDS
LEASING
OTHER
BANKS
GDF SUEZ
At end December 2008
GDF SUEZ
LEASING
OTHER
BANKS
BONDS
34%
9%
6%
12% 39% 21%
8%
35%
32%
5%
At end June 2009
51% 55% 69%
49% 45% 31%
H1 2008 FY 2008 H1 2009
Fixed
Floating
NET FINANCIAL DEBT BREAKDOWNBY RATE TYPE
Assets & liabilities overview
APPENDICES
80 2009 HALF YEAR RESULTS
ASSETS & LIABILITIES OVERVIEW AT 06/30/09
PROVISIONS(1): €1,728M
LANDFILLS
OTHER PROVISIONSRENEWALS(2)
PENSION LIABILITIES
(1) Including €356m of renewals (accounted for in suppliers' debt)(2) These provisions represent the gap between the expenses and the commitments on a linear basis of our concession contracts
356
408
511
453
81 2009 HALF YEAR RESULTS
ASSETS & LIABILITIES OVERVIEW AT 06/30/09
MINORITIES: €697M
OTHER
MINORITY INTERESTS IN AND WITHIN AGBAR
174
523
FINANCIALRECEIVABLE
Including €298mon concessions
(IFRIC12)
NON-CONSOLIDATED FINANCIAL ASSETS
� Gas Natural(1)
� ACEA(1)
� Eyath(1)
� Aguas de Valencia
� Chongqing Water Group
� …
549
233
723
(1) Marked-to-Market
FINANCIAL ASSET: €1,505M
ASSOCIATES