Séché accelerates its ecological transition
and unveils its 2026 financial trajectory
New commitments for Climate, Reduction of
Water and Energy Consumption, and in favor of Biodiversity
Protection
Confirmation of 2023 Objectives 2024
– 2026 perspectives for sustainable, profitable growth
Regulatory News:
Séché Environnement (Paris:SCHP) presents its financial and
non-financial 2026 trajectory at the Investors Day on December 12,
2023.
At the core of a proactive approach aimed at accelerating its
ecological transition and of its customers as well, the Group has
made new ambitious commitments under its Climate strategy.
It is also strengthening its energy policy by raising its
targets for energy self-sufficiency and adopting a new Water
Efficiency policy. Finally, the Group is also stepping up and
intensifying its long-standing commitment to Biodiversity.
On the strength of the important alignment of its activities
with the European green taxonomy, Séché confirms its growth and
operating income targets for 2023 and sets out its ambitions for
2024 in terms of growth in its business and operating
income.
Over the 2024-2026 period, the Group will be pursuing a
strategy that will enable it to achieve significant organic growth
and further improve its operating, gross and current
margins.
At the same time, it will maintain its strict financial
discipline in order to maximize free cash flow generation and
consolidate its flexible, liquid balance sheet.
2026 non-financial commitments
Climate – Energy1 GHG Emissions2: -13% GHGs avoided by
material recovery: +50% Energy consumption - 12% Energy
self-sufficiency rate of 310% +36%
Water Water consumption: -13%
Biodiversity Progress of Act4Nature sites: 80%3
2026 financial trajectory
Confirmation of 2023 targets
Contributed revenue of between €990m and
€1,000m EBITDA of between €215m and
€219m Leverage ratio of 2.7x EBITDA excluding 2023
acquisitions
2024 Targets Organic growth of +5% compared
to 2023 targets + Consolidated scope effect (full year) of +€65Mm
Adjusted EBITDA of €230m Adjusted COP of
€105m Financial leverage ratio under 2.7x adjusted EBITDA
(at constant scope 12.31.2023)
2024 - 2026 Perspectives (at constant scope 12.31.2023)
Adjusted contributed revenue of +5% per year (CAGR)
Adjusted EBITDA +9% per year (CAGR) to target EBITDA of
between €265m and €275m - i.e. 22% to 23% of contributed revenue
Adjusted COP +14% per year (CAGR) to target COP of between
€132m and €144m - i.e. 11% to 12% of contributed revenue
Free cash flow generation (before acquisitions) superior
or equal to €250m over the period
Financial leverage ratio of less than 3 times EBITDA
(with return to target within 12 months in the event of
acquisitions)
Séché, a player in the ecological transition
A specialist in waste management and environmental safety, Séché
Environnement is positioned in the growth markets of the ecological
transition.
With its range of solutions for the circular economy and the
decarbonization of economic activities (34% of its 2023E
contributed revenue), coupled with its expertise in hazardous waste
management (21% of its 2023E contributed revenue), the Group
implements a secure circular economy for manufacturers and local
authorities.
It also offers its customers a wide range of high value-added
services (45% of its 2023E contributed revenue) to meet the
environmental safety challenges of their activities.
Séché's activities address the long-term issues facing economic
players in terms of ecological transition, and in particular
climate change, the depletion of natural resources and the
protection of biodiversity.
Through its activities in the valorization of rare resources and
the production of recovered energy, the Group also provides answers
to the short-term challenges faced by local communities and
manufacturers in terms of access to raw materials, water and
energy, by producing these resources, regenerated and low-carbon,
available locally and at competitive prices.
In this respect, its environmental performance, as much as its
capacity for innovation in research and development or its
organization focused on industrial efficiency, is one of the
foundations of its growth strategy.
Séché Environnement thus asserts itself as a partner to its
industrial customers and local authorities in their ecological
transition, at the service of a low-carbon industrial economy, its
ecological transition challenges being the ecological transition
challenges of its customers.
A strategy of profitable growth in sustainable growth
markets
Operating in highly regulated markets in France and abroad,
Séché Environnement benefits from the trend towards tighter
regulatory constraints imposed on economic players in order to
reduce their ecological footprint.
Buoyed by its capacity for innovation and the dynamism of its
markets, the Group's activities are focused on adding value to the
environmental value chain.
For all these reasons, they boast strong visibility, sustained
growth, high and rising operating margins, and proven
resilience.
Séché backs up this strategy of organic growth with an active
policy of external growth, both in France and internationally,
which now accounts for around 30% of its sales and where the Group
has taken leading commercial positions in certain geographical
areas, such as Northern Italy and Southern Africa.
The breadth of its offering, the resulting cross-selling
synergies, and its ability to anticipate the regulatory changes
impacting its markets, have enabled the Group to post organic
growth rates significantly higher than forecast GDP growth rates in
the geographical areas in which it operates.
Combining sustained growth and high operating margins, the Group
has achieved average annual growth in contributed revenue of +14%
between 2018 and 2022 - of which +7% organic - with EBITDA up by
+17% over the same period - of which +14% organic.
New 2026 non-financial commitments
Séché Environnement has a sustainable business model as defined
by the European green taxonomy.
Based on the six delegated acts published by the European
Commission on June 5, 2023, the company's activities are eligible
and aligned at 86% and 67% of sales respectively.
These figures are well above the average for economic activities
in Europe (<10%), illustrating the company's contribution to the
greening of the economy.
Demonstrating the international group's ability to combine
economic growth with a reduction in its customers' environmental
impact, Séché Environnement has announced new non-financial targets
for 2026.
Séché Environnement's new environmental objectives are as
follows:
- Continue to decarbonize its activities: -13% greenhouse gas
emissions4 (in line with the target validated bySBTi in the
beginning of 2023)
- Consolidate capacity to decarbonize its customers by
increasing material recycling activities: +50% of greenhouse gases
avoided
- Reinforce the group's energy sobriety: -12% in energy
consumption
- Increase the company’s energy resilience: 310% energy
self-sufficiency
- Reduce water consumption by its activities: -13% in water
consumption
- Preserve biodiversity: 80% progress in its Act4Nature action
plan.
In anticipation of the expectations of the CSRD, quantified and
planned action plans are also associated with these environmental
objectives.
These various objectives will make it possible to reduce Séché
Environnement's environmental impacts, as well as those of its
customers, reinforcing the company's positioning as a key player in
the ecological transition.
Commercial, operational and financial trajectory to
2026
Confirmation of 2023 targets5
Séché Environnement confirms its 2023 targets and expects to
post for the current financial year:
- Contributed revenue of between €990m and €1,000m
- EBITDA between €215m and €219m
- Financial leverage ratio of around 2.7x EBITDA before the
acquisitions made in the 2nd half of 2023, or around 3x EBITDA
including these acquisitions.
Adjusted revenue, adjusted EBITDA, adjusted COP6
Séché Environnement incorporates significant volatility factors
into its main financial aggregates, in particular those relating to
the contribution to sales and operating margins of environmental
emergency activities (contracts of "exceptional scope") or those
linked to price effects in its energy recovery activities
(indexation of energy sales contracts or changes in market prices,
costs of integrating subsidiaries).
By way of illustration, these impacts can be broken down as
follows:
Calculation of adjusted revenue
In €m
2022
2023E
Published contributed revenue
895
- – 1000
Emergency contracts of
“exceptional scope”
-25
-
Energy (effect-price)
-
-14
Adjusted published contributed
revenue
870
976 - 986
Calculation of adjusted EBITDA
In €m
2022
2023E
Published EBITDA
202
215– 219
EBITDA / contributed revenue
22.6%
21.7% - 21.9%
Emergency contracts of
“exceptional scope”
-8
-
Energy (effect-price)
-
-9
STEI (non-recurring integration
events)
+2
Adjusted EBITDA
194
208– 212
Adjusted EBITDA / adjusted contributed
revenue
22.1%
21.3% - 21.5%
The 2024-2026 perspectives presented below has been adjusted for
the potential impact of these non-recurring effects on contributed
revenue and EBITDA.
Pursuit of strong organic growth
Drawing on its expertise in complex waste management and
industrial infrastructure safety, and positioned at the heart of
environmental and sustainability issues for territories and
industrial companies, Séché will continue to deploy its range of
high value-added environmental solutions in France and abroad.
In France, the Group's business should be buoyed by the dynamic
Circular Economy and, above all, Industrial Services markets.
In the Circular Economy markets, Séché will focus on developing
its capacities in the field of energy recovery from non-hazardous
waste, against a backdrop of declining treatment capacities, and
material recovery from hazardous waste.
In the Services markets, Séché will benefit from a buoyant
regulatory environment and from the growth dynamic resulting from
its new offer in the industrial water cycle businesses and from the
expected cross-fertilization with the Group's other activities and
customer bases. The Group will also benefit from the growth
momentum of its "global offers", a delegated management service for
industrial customers.
Outside France, the Group is confident in its ability to
maintain solid growth, particularly:
- In Italy, where the new Mecomer-Furia group offers powerful
commercial and industrial synergies, making Séché one of the
leading operators in the hazardous waste market;
- In Southern Africa (South Africa and Namibia), where the Group
offers the most comprehensive range of waste management and
environmental safety solutions for industrial customers through
Interwaste, Spill Tech and Rent-A-Drum.
The Group is also confident in its ability to take advantage of
the positive trend in its Latin American markets, where it has
recently strengthened its position in emergency environmental
services with the recent acquisition of Essac in Peru.
Séché anticipates adjusted contributed revenue of around
€1,200M in 2026, representing an average organic growth rate of
around +5% over the period.
Improved gross and current operating profitability
The Group will pursue its strategy of industrial efficiency,
based on rigorous requirements in terms of safety, regulatory
compliance and operational excellence.
In this context, the Group is implementing a productivity plan
which enables it to anticipate:
- Improving the utilization rate of its industrial and logistics
facilities;
- Strict control of capital expenditure.
These should stabilize over the period at around the levels
reached in 2023, i.e. between €100M and €110M a year.
The normalized investment rate stands at around 9% of
contributed revenue (vs. 10% previously), including 3% maintenance
capital expenditure, 2% safety and regulatory capital expenditure,
and 4% development capital expenditure.
Séché will benefit from other levers on its gross and current
operating profitability, such as the profitability ramp-up of new
business perimeters (in particular in the industrial water cycle
businesses) or the control of its operating expenses through a
savings plan that should enable a reduction in expenses of the
order of €20M over the period (at constant scope).
Lastly, the preponderance of Services activities in the business
mix should lead to faster growth in operating income than EBITDA
over the period.
By 2026, the Group is aiming for:
- Adjusted EBITDA of between €265M and €275M, i.e. a gross
operating profitability rate of between 22% and 23% of contributed
revenue.
- Adjusted COP of between €132M and €144M, i.e. a current
operating profitability rate of between 11% and 12% of contributed
revenue.
Maximized free cash flow generation
Séché Environnement will strive to maximize its free cash flow
generation7 by controlling its investments around their current
level, neutralizing its change in working capital requirements on
average over the period, and an appropriate dividend policy.
The Group thus intends to generate free cash flow of at least
€250M over the 2024 to 2026 period (excluding
acquisitions).
Investor Day broadcast
A broadcast of the Investor Day will start at 8:30 am
(CET) on December 12, 2023, in French and English only.
To follow the presentation, log on to the Company's website
(home page): - In French: https://www.groupe-seche.com/ - In
English: https://www.groupe-seche.com/en
Material to accompany the presentation will be available from
8:00 AM on Séché Environnement's website: - In French:
Présentation-Journée-Investisseurs - In English:
Investor-Day-Presentation
A replay of the Investor Day will be available at a later date
in both languages on the Company's website at the same
addresses.
Upcoming events
Consolidated results at December 31, 2023: March 11, 2024 after
market close
About Séché Environnement
Séché Environnement is a leading player in waste management,
including the most complex and hazardous waste, and in
environmental services, particularly in the event of an
environmental emergency. Thanks to its expertise in creating
circular economies, decarbonization, and hazard management, the
group has been contributing to the ecological transition of
industries and territories and to the protection of living things
for nearly 40 years. Séché Environnement, a French family-owned
industrial group, deploys the cutting-edge technologies developed
by its R&D department on the ground, in more than 120 sites in
15 countries, including some fifty industrial sites in France. With
over 5,700 employees, including 2,500 in France, Séché
Environnement generated revenue of nearly €900 million in 2022, 30%
of which from its international operations.
Séché Environnement has been listed on the Euronext Eurolist
(Compartment B) since November 27, 1997. It is included in the CAC
Mid&Small and EnterNext Tech 40 indexes. ISIN Code: FR
0000039139 - Bloomberg: SCHP.FP - Reuters: CCHE.PA
For more information: www.groupe-seche.com
---------------------------------
1 At constant 2020 perimeter 2 Scope 1 and 2 3 New Act4Nature
2023-2027 cycle 4 Scope 1 and 2 5 See: Press release of September
11, 2023 6These aggregates are presented for illustrative purposes,
and the restatements made do not meet accounting criteria. They
will not be restated in the Group's financial statements. 7 Free
cash flow: EBITDA - Rehabilitation & GER expenses - Industrial
Capex - Change in WCR - Interest paid - Tax paid - Dividends
View source
version on businesswire.com: https://www.businesswire.com/news/home/20231211172420/en/
SÉCHÉ ENVIRONNEMENT Analyst / Investor Relations
Manuel ANDERSEN Director of Investor Relations
m.andersen@groupe-seche.com +33 (0)1 53 21 53 60
Media Relations Constance Descotes Communications
Department c.descotes@groupe-seche.com +33 (0)1 53 21 53 53
Schwab US TIPs (AMEX:SCHP)
Graphique Historique de l'Action
De Août 2024 à Sept 2024
Schwab US TIPs (AMEX:SCHP)
Graphique Historique de l'Action
De Sept 2023 à Sept 2024