SITA CZ a.s.

08.04.2010 - source: SUEZ ENVIRONNEMENT

The Board of Directors, meeting on 24 February 2010, approved the 2009 SUEZ ENVIRONNEMENT financial statements, which will be submitted for the approval of the General Meeting on 20 May 2010. On the date of the press release, the financial statements have been audited and certified by the auditors.

SITA CZ is 100% subsidiary of SUEZ ENVIRONNEMENT group and is one of the most significant companies undertaking the waste management in Czech Republic and Slovakia.

Commenting on the 2009 results, Jean-Louis Chaussade, CEO of SUEZ ENVIRONNEMENT, stated:

"In 2009, SUEZ ENVIRONNEMENT demonstrated the strength of its development business model and its ability to adapt in a difficult macro-economic environment. The Group achieved its COMPASS cost optimization programme one year in advance and generated substantially higher free cash flow.
At the same time, its solid financial profile and commercial dynamism have enabled the Group to continue its development with major strategic movements, such as the construction of the Group's second European water pillar with the step up in AGBAR expected mid-2010 and the construction of the largest desalination plant in the Southern Hemisphere in Melbourne.
Thanks to its financial solidity and sustainable and profitable development business model, SUEZ ENVIRONNEMENT expects going back to growth in 2010, in a still-fragile macro-economic environment. I firmly believe that our water and waste business activities are entering a new era, where they find themselves at the heart of the developing circular economy. The Copenhagen Summit was a real wake-up moment for awareness of climate change. Our customers, whether municipalities, commercial and industrial customers alike, seek from now on to reconcile quality of service with sustainable development. By developing innovative green proposals for the sustainable management of resources, SUEZ ENVIRONNEMENT takes a clear lead over in the growth markets of water and waste which address the essential needs of populations and respond to environmental emergencies."

2009: SOLID RESULTS IN LINE WITH OBJECTIVES

• Revenue: €12.3 billion, +0.6% at constant forex
• EBITDA: €2,060m, –1.2% at constant forex, i.e. an EBITDA/revenue ratio of 16.8%
• Free cash flow: €891m, a 20% increase excluding non recurring items in 2009
• Net result Group share: €403m i.e. €0.82 per share
• Net financial debt: €6,282m, i.e. net financial debt/EBITDA ratio of 3.0
• Proposed stable dividend2 of €0.65 per share

2010 OBJECTIVES AND OUTLOOK: CONFIRMATION OF FREE CASH FLOW GENERATION AND PROFITABILITY PROTECTION PRIORITIES

• launch of a new Compass cost optimization plan for 2010-2012
• Revenue growth e 5 % compared to 2009, at constant forex
• EBITDA growth e 8% compared to 2009, at constant forex
• 2010 Free cash flow Generation e €0.7 billion
• 2010 Net investments d €1.3 billion4 plus €0.6 billion related to the step up in Agbar
• Net financial debt/EBITDA ratio of around 3x by 2012 with a new COMPASS cost optimization plan of €250m over the period 2010-12 and pursuit of the capex selectivity in 2011 and 2012

COMMERCIAL DYNAMISM AND NEW GREEN OFFERS CONTRIBUTE TO THE DEVELOPMENT OF ALL ITS DIVISIONS

To meet customer expectations in terms of the circular economy, SUEZ ENVIRONNEMENT has continued its research and development and innovation policy by launching new "green" commercial initiatives which combine quality of service with environmental performance. Promoted under the Edelway offer, these " green" initiatives mark SUEZ ENVIRONNEMENT's commitment to its customers that it will meet its objectives and progress indicators in protecting natural resources and biodiversity and reducing greenhouse gas emissions. Its Edelway projects are also key selling points when bidding for contacts. This commercial dynamism and innovation has permitted the continued development of all divisions of the Group.

WASTE EUROPE

2009 was marked, on the one hand, by the sharp fall in industrial production and, on the other hand, by weak demand for secondary raw materials.
In this context, the Waste Europe division generated revenue of €5,319m, a 5% decrease at constant forex (-7.5% organic change). EBITDA was €798m, down 12.1% at constant forex (organic growth down by -15.5%). Continuous cost reduction efforts (€70m COMPASS savings generated in 2009) such as the optimization of waste flow management (saturation of treatment capacity and internalization of volumes) helped to protect profitability which came to 15% of revenues. The division also optimised its maintenance capex, increasing its free cash flow generation by 4.5% to €341m.

Sorting and Recovery were particularly affected in 2009. The fall in these activities, with revenues of €850m in 2009, represents almost 40% of the division's turnover decline. The volumes processed in landfills and energy recovery plants slipped by 2.6% over the year, notably from industrial and commercial customers, with a sharp decline in early 2009 followed by stabilisation from the 2nd quarter.

The last quarter of 2009 benefited from a favourable base effect.

With the emergence of the circular economy, the Sorting and Recovery activities remain attractive over the long term. At Limay, SUEZ ENVIRONNEMENT has commissioned the industrial site of France Plastiques Recyclage to recover 40,000 tonnes of PET plastic bottles into R-PET. The granulates are re-used by packaging companies to produce new plastic bottles that use less raw materials and are more environmentally friendly.

Source: Press release SUEZ ENVIRONNEMENT
Exact wording: Press release SUEZ ENVIRONNEMENT – Annual Results 2009

Read: 358

back