SUEZ reports its 2017 financial estimates and 2018 outlook
ESTIMATED PERFORMANCE FOR 20171 IN LINE WITH GROUP GUIDANCE
ON ORGANIC REVENUE GROWTH, FREE CASH FLOW AND LEVERAGE
ORGANIC EBIT GROWTH IMPACTED IN THE FOURTH QUARTER BY ADDITIONAL SPECIFIC EXPENSES, LEADING TO A C.2% DECLINE IN 2017. EXCLUDING THESE ITEMS, THE TREND OBSERVED WAS IN LINE WITH THAT OF THE FIRST NINE MONTHS OF THE YEAR AT +1.4%
IN 2018, ORGANIC EBIT GROWTH EXPECTED TO ACCELERATE TO ABOUT 3%, BOOSTED BY GROWTH FROM WATER TECHNOLOGIES & SOLUTIONS. OVERALL, EBIT GROWTH WILL BE C.10% AT CONSTANT EXCHANGE RATES2
Excluding these items, annual organic growth in EBIT would have been in line with the 1.4% trend reported at the earnings presentation at end-September 2017.
- Revenue of c.€15.8 billion, an organic increase of c.+1.5%;
- EBITDA of c.€2,640 million, an organic decrease of c.2.0%;
- EBIT of c.€1,280 million, an organic decrease of c.2.0%;
- Net income Group share of c. €300 million. This includes, as previously stated, €45 million in costs related to the GE Water acquisition and €72 million in costs for the voluntary departure plan in France. The other restructuring costs are offset by capital gains;
- Free cash flow of more than €1 billion; Net financial debt of c.€8.5 billion, for leverage of 3.2x;
- 2017 dividend of €0.65 per share3.
- Total growth in revenue at constant exchange rates of c.9%, based on an approximately $2.8 billion contribution from the Water Technologies & Solutions division and more than 1% organic growth at the three other divisions;
- Total increase in EBIT of 10% based on an approximately $200 million contribution from the Water Technologies & Solutions division and 3% organic growth at the three other divisions4;
- Free cash flow of about €1 billion5;
- Net financial debt/EBITDA ratio of close to 3.0x;
- The pursuit of an attractive dividend policy: ≥ €0.65 per share in respect of 2018 results6.
2 Excluding the impact of the change in US tax law on regulated water activities, resulting in the transfer of €25 million in income from EBIT to taxable income, which is neutral to net income Group share
3 Subject to approval by the 2018 Annual General Meeting
4 Excluding the impact of the GE Water purchase price allocation, which will be determined in 2018
5 Excluding payments associated with the voluntary departure plan in France and recognized in 2017 and excluding the GE Water integration costs
6 Subject to approval by the 2019 Annual General Meeting