Confirmed strong business in main regions
Significant increase in operating profitability Doubling in net
income Reinforced financial robustness
Roadmap through to 2025 Organic growth:
contributed revenue close to €1,000m Profitability: EBITDA between
24% and 25% of revenue Flexibility: leverage < 3x EBITDA
mid-cycle if acquisitions
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APPENDIX 5 - NEW BREAKDOWN OF BUSINESS
ACTIVITIES
FORMER PRESENTATION (Photo: Séché Environnement)
Séché Environnement (Paris:SCHP):
Main objectives met or exceeded one year ahead of
schedule
Commercial performance:
Contributed revenue: €736m, +15%
Operational performance:
EBITDA: €170m or 23.1% of revenue, +24% COI: €71m or 9.7%
of revenue, +50%
Profit performance:
Net Income €28m or 3.9% of revenue, +106%
Financial performance:
Free operational cash flow: €77m, +25% Financial leverage
ratio: 2.7x, -0.4x
Dividend proposed: €1.00 per share (vs. €0.95 for
the year 2020)
Outlook for 2022
Growth in contributed revenue:
- Scope effect stemming from the integration of Séché
Assainissement on January 1, 2022 and 12-month contribution from
Spill Tech
- Organic growth based on H2 2021 trends, with market effects
remaining positive in France and a continued improvement
internationally
EBITDA margin (EBITDA / contributed revenue) confirmed
for at least the level reached in 2021
CAPEX: similar to 2021 given development investments
Financial leverage ratio stable at 2.7x EBITDA ex.
acquisitions
At the Board of Directors meeting held on March 4, 2022 to
approve the financial statements drawn up on December 31, 2021, the
Chairman, Joël Séché, stated:
“Séché Environnement’s excellent commercial, operational,
financial and non-financial performances in fiscal 2021 once again
demonstrate the quality of its positioning and the relevance of its
growth strategy in the circular economy and decarbonized economy
sectors.
These performances were generated by its internal and external
growth strategy, policy on industrial efficiency and cost
reduction, controlled investments and financial agility.
They are also a result of the constant commitment of the women
and men that make up this Company. I would like to thank each of
them on behalf of our Board.
Séché Environnement moved ahead with its external growth
transactions in 2021. It did so internationally, with the
acquisition of Spill Tech, a South African environmental emergency
specialist, and in France, with the acquisition of Osis-IDF
centers, a major player in sanitation, which in early 2022 has
enriched the range of our environmental services businesses under
the name Séché Assainissement.
Séché Environnement is benefiting from the lasting effects of
its profitable growth strategy and in 2021 posted strong increase
across all its business activities in its main scopes and an even
stronger increase in operational margins.
Net income was twice as high as in 2020.
Our Group continued to improve its cash flow and financial
flexibility through sold cash management. It also shored up its
balance sheet by substantially lengthening the maturity of its
financial debt for an improved cost, thanks to the successful issue
of its first environmental impact bond.
A year ahead of schedule, it has met or even exceeded most of
the objectives set in 2019 for 2022.
These performances are sustainable.
Working in sustainably buoyant and opportunity-rich markets and
harnessing financial flexibility and strong cash flow, our Group is
confident about its short- and long-term outlook.
For 2025, it is targeting contributed revenue, at constant
scope, of nearly €1bn, while continuing to improve its operational
margins and maintaining strict objectives on cash-flow generation
and financial flexibility.
Also for 2025, fully in line with the Paris Agreement on the
climate and consistent with its ambitious Climate for 2030
strategy, Séché Environnement will reduce its greenhouse gas
emissions by 10% and increased by 40% the avoided greenhouse gas
emissions by its clients; illustrating its commitment to the fight
against climate change and in favor of a circular and decarbonized
economy.”
Selected financial data
Consolidated data in €m
As of December
2019 restated*
2020 restated*
2021
Gross change
Contributed Revenue
687.8
641.7
735.8
+14.7%
EBITDA
135.4
137.0
170.3
+24.3%
% of contributed revenue
19.7%
21.3%
23.1%
Current Operating Income
47.8
47.5
71.5
+50.5%
% of contributed revenue
6.9%
7.4%
9.7%
Net financial Income
(17.5)
(20.4)
(24.1)
+18.1%
Income tax
(10.4)
(8.4)
(14.1)
+67.9%
Share of Income of Associates
ns
(1.5)
(0.9)
Share of non-controlling interests
(1.0)
(0.1)
(1.2)
Group net income
17.8
13.8
28.4
+105.8%
% du CA
2,6%
2,2%
3,9%
Earnings per share
2.27
1.77
3.64
+105.7%
Dividend per share (€ per
share)
0.95
0.95
1.00
+5.3%
Recurrent operating cashflow1
113.2
110.9
139.9
+26.1%
Net Capex paid
69.0
64.2
87.4
+36.1%
Free operating cashflow2
48.7
61.6
77.4
+25.6%
Cash and cash equivalents
92.3
105.3
172.2
+63.5%
Net financial debt (IFRS)
456.2
450.3
474.9
+5.5%
Financial leverage ratio
3.1x
3.1x
2.7x
-0.4x
* Contributed revenue has been calculated ex. TGAP since 2021.
Contributed revenue in 2019 and 2020 was recalculated to enable the
comparison of data.
Summary of activity, income, and financial situation at
December 31, 2021
In fiscal 2021, Séché Environnement pursued its profitable
growth momentum in buoyant markets while maintaining an
opportunistic external growth strategy both internationally and in
France.
In France, the Group benefited from strong volumes and positive
price trends on industrial and local-authority markets, bolstering
its business activities relating to the circular economy and hazard
management. The Services businesses also returned to strong growth
compared with the previous year.
This solid commercial momentum was driven by the implementation
of an industrial efficiency policy that promotes the full
availability of recovery and treatment tools and, with the effects
of the savings plan, improves the organization's performance. Séché
acquired Osis-IDF’s centers, a sanitation company in Ile-de-France,
integrating it in the consolidation scope on January 1, 2022 under
the name Séché Assainissement.
The International business confirmed its return to growth in the
main regions in which the Group operates, particularly in Europe
(Mecomer) and South Africa (Interwaste). In South Africa, Séché
Environnement acquired Spill Tech, a leading operator in the
environmental emergency sector, thus supplementing its network in
this promising region.
The Group posted a significant increase in operating margins,
and net income attributable to company shareholders more than
doubled in relation to 2020.
Over the period, the Group controlled its net debt while
maintaining an active growth investment policy, particularly in
international markets.
The Group seized opportunities having emerged at the end of the
year on debt markets to refinance its senior banking debt through
2023 as well as a number of bonds with the same maturity through a
seven-year bond issue featuring ESG impact criteria and with a
substantially reduced rate.
Underpinned by solid cash generation and improved financial
flexibility, and with a considerably strengthened liquidity
position and extended debt maturity, Séché Environnement is
confirming its ability to actively pursue its development strategy
in France and internationally.
Solid organic growth in main scopes
At December 31, 2021, Séché Environnement posted contributed
revenue3 of €735.8m, up 14.7% compared with December 31, 2020. The
figure includes a €34.0m contribution from Spill Tech, consolidated
on March 1, 2021.
At constant scope, contributed revenue stood at €701.8m, up 9.4%
compared with December 31, 2020 (€641.7m) and 9.3% at constant
exchange rates. The figure also compares favorably with contributed
revenue at December 31, 2019 (€687.8m).
In 2021, Séché Environnement confirmed strong business growth in
France and returned to growth in its main international scopes:
- In France (72% of contributed revenue), business activity rose
substantially, by 9.3% to €531.7m. The Group benefited from high
volumes and good price trends in its circular economy and hazard
management businesses, while the Services activities confirmed
their return to dynamic growth after a 2020 year hampered by the
impacts of the health crisis;
- Internationally (28% of contributed revenue), revenue came out
at €204.1m, up 31.6% as reported, including a 10-month contribution
of Spill Tech amounting to €34.0m. At constant scope and exchange
rates, growth in this scope was +8.8%. Europe (Mecomer), South
Africa (Interwaste) and the rest of the World (Solarca) confirmed
dynamic growth, while Latin America reached a level after the
deterioration in 2020.
Operating income improved considerably relative to 2020 and 2019
alike:
- EBITDA was €170.3m, or 23.1% of contributed revenue. It
increased 24.3% compared with 2020 and 25.8% compared with 2019. It
includes a scope effect related to the integration of Spill Tech on
March 1, 2021, for €10.2m or 30.0% of the subsidiary’s revenue. At
constant scope, EBITDA increased 16.9% versus June 30, 2020. It
came to 22.8% of contributed revenue (versus 21.3% in 2020 and
19.7% in 2019).
- In France, the Group benefited from the strong availability of
its facilities, strengthened by the effects of its industrial
efficiency policy, which enabled it to process increased volumes
and take advantage of favorable price effects and mix effects.
- Internationally, the Group benefited from an improved trend in
its businesses relative to last year, along with a particularly low
cost base in regions where business remained less brisk, such as
Latin America.
- Current operating income (COI) amounted to €71.5m, or 9.7% of
contributed revenue. COI increased 50.5% compared with 2020. It
includes Spill Tech's contribution of €8.6m (25.3% of the
subsidiary’s revenue). At constant scope, COI rose strongly
compared with 2020, by 32.4%, and compared with 2019 (+31.6%).
Current operating profitability was 9.0% of contributed revenue
(7.3% in 2020 and 6.9% in 2019). This major improvement mainly
reflects the favorable trend in gross operating profitability in a
context of controlled depreciation expenses in line with the
selective investment policy;
- Operating income came out at €68.7m, or 9.3% of contributed
revenue, for a 55.2% increase compared with 2020. At constant
scope, operating income totaled €60.1m, up 36.0% relative to 2020
and 28.7% to 2019. The trend in 2021 was driven mainly by the
increase in COI.
Financial income stood at -€24.1m, compared with -€20.4m a year
earlier.
The trend reflects the slight decrease in the cost of gross debt
(2.76% vs. 2.79% in 2020) and the increased weight of the balance
of financial income and expenses, notably owing to early repayments
of various borrowings, including senior banking debt and Euro PP
bonds for €4.4m.
After recognition of income tax for -€14.1m compared with -€8.4m
in 2020, the share of income of associates at -€0.9m versus -€1.5m
and results from minority interests at -€1.2m versus -€0.1m, net
income attributable to company shareholders came out at €28.4m, or
3.9% of contributed revenue, compared with €13.8m in 2020 (2.2% of
contributed revenue) and €17.8m in 2019 (2.6%).
Industrial investments (ex. IFRIC 12) reached €92.4m, or 12.6%
of contributed revenue (vs. €63.0m or 9.4% in 2020). With
maintenance investments having held steady over the period, the
increase reflects the recovery in development investments suspended
in the previous year owing to the pandemic, particularly outside
France.
Free operating cash flow stood at €77.4m (versus €61.6m in
2020), for an increase of 22.7%. EBITDA cash conversion ratio stood
at 45% well above the target of 35% set by the Group4.
Cash and cash equivalents totaled €172.2m (vs. €105.3m a year
earlier) and served to further boost the already solid liquidity
position5, from €275.3m at end-2020 to €342.2m at end-2021.
Net financial debt (IFRS) was under control at €479.9m (versus
€450.3m at December 31, 2020) and the financial leverage ratio was
down substantially to 2.7x EBITDA (vs. 3.3x a year earlier),
illustrating a vast improvement in the Group's financial
flexibility.
The dividend was €1.00 per share based on income per share of
€3.64 (vs. €1.77 in 2020).
Recent events and outlook
Integration of Séché Assainissement (formerly Osis-IDF
centers)
The eight Osis-IDF centers, the acquisition of which was
announced in the third quarter of 20216 and which are now
wholly-owned by Séché Environnement, were included in the
consolidation scope from January 1, 2022, under the name Séché
Assainissement.
The scope of the acquired activities generated revenue of
approximately €27m in 2021, for EBITDA of around €4m and EBIT of a
similar amount.
Roadmap through to 2025
Drawing on its sustained growth momentum at the heart of the
growing markets of the circular economy and the fight against
climate change, Séché Environnement is benefiting from the lasting
effects of its industrial efficiency policy.
The Group is confident in its commercial, operational and
financial outlook in the short and medium term.
Outlook for 2022
Séché Environnement is basing its assumptions on a return to
normal in the health situation in France and the regions in which
the Group operates. The outlook does not take into account any
adverse macroeconomic consequences resulting from current
geopolitical tensions.
In 2022, the Group will benefit from the consolidation of Séché
Assainissement from January 1, 2022 and the contribution of Spill
Tech over the full year (12 months instead of 10 in 2021).
After delivering a strong performance in 2021 partly due the
favorable comparison basis of H1 2021, Séché Environnement expects
to continue its organic growth on trends comparable to H2 2021:
- In France, in its industrial and local-authority markets alike,
the Group should benefit from the momentum of its activities
relating to the circular economy and decarbonization. These markets
are boosted by the implementation of favorable regulations and the
strong level of industrial production, which is contributing to
positive trends in volumes and prices.
- Internationally, Séché Environnement is expected to continue to
grow in buoyant markets. In Italy, Mecomer should benefit from the
gradual start-up of its new capacity, while Interwaste and Spill
Tech in South Africa should maintain a solid growth rate. Solarca
has a very large order book (around €20m), bolstering the positive
outlook for this subsidiary in 2022. Latin American business is
expected to trend more positively.
From an operational standpoint, Séché Environnement will
continue its industrial efficiency policy, based on heightened
selectivity in its investments, improving the use conditions of its
facilities and optimizing its logistics structure. In addition, it
will maintain its productivity efforts through its cost-cutting
plan.
Gross and current operating margin should therefore at least
remain at the levels seen in 2021 (excluding acquisitions).
Industrial investments are expected to remain robust, close to
2021 levels, due to planned international development investments,
particularly in South Africa.
The financial leverage ratio is expected to remain at the level
recorded in 2021.
Roadmap to 2025
For 2025, Séché Environnement aims to achieve contributed
revenue of close to €1bn (at constant 2022 scope) with a gross
operating margin7 of between 24% and 25% (excluding
acquisitions).
After making sustained development investments in 2022, the
Group expects to return to its standard capex of around 10% of
contributed revenue between 2023 and 2025.
The Group is maintaining its target of free operating cash flow
generation of more than 35% of EBITDA, which will allow significant
cash generation and a further improvement in its financial
flexibility between 2023 and 2025 (excluding acquisitions). In the
event of acquisitions, Séché Environnement reaffirms its ability to
maintain its standard mid-cycle financial leverage ratio below 3x
EBITDA.
In terms of its non-financial performance and under its 2030
climate strategy, which is aligned with the objectives of the 2017
Paris Agreement, the Group will reduce its own greenhouse gas
emissions by 10% by 2025 and increase the greenhouse gases avoided
by its clients by 40% thanks to its recycling activities and
low-carbon energy production.
Results Presentation Webcast March 8, 2022 at 8:30 am
Connection to the home page of Séché Environnement's website In
French: https://www.groupe-seche.com/fr In English:
https://www.groupe-seche.com/en
Upcoming Events
Q1 2022 Revenue: April 26, 2022 after market
Annual General Meeting of Shareholders: April 29, 2022
About Séché Environnement
Séché Environnement is the leader in the treatment and recovery
of all types of waste including the most complex and hazardous
waste, and decontamination, protecting the environment and health.
Séché Environnement is a family-owned French industrial group that
has supported industrial and regional ecology for over 35 years
with innovative technology developed by its R&D team. It
delivers its unique expertise on the ground in local regions, with
more than 100 sites around the world, including around 40
industrial sites in France. With 4,600 employees, of which 2,000 in
France, Séché Environnement has revenue of about €750 million, of
which 28% is earned internationally, driven on the medium term by
internal and external growth momentum via its many acquisitions.
Thanks to its expertise in creating circular economy loops, the
treatment of pollutants and greenhouse gases, and hazard
containment, the Group directly contributes to the protection of
the living world and biodiversity – an area it has actively
supported since its creation.
Séché Environnement has been listed on Eurolist by Euronext
(Compartment B) since November 27, 1997. It is eligible for equity
savings funds dedicated to investing in SMEs and is included in the
CAC Mid&Small, EnterNext Tech 40 and EnterNext PEA-PME 150
indexes. ISIN: FR 0000039139 – Bloomberg: SCHP.FP – Reuters:
CCHE.PA
FINANCIAL NFORMATIONS FINANCIERES AT
DECEMBER 31, 2021
(Extracts from the Report of the
Board)
Comments on activity and results at December 31, 2021
At December 31, 2021, Séché Environnement reported consolidated
revenue of €790.1m, compared with €673.1m a year earlier.
Reported consolidated revenue includes non-contributed revenue
of €54.3m (versus €31.4 million at December 31, 2020) broken down
as follows:
As at December 31
2020
2021
IFRIC 12 investments
0.6
8.7
TGAP8
30.8
45.6
Non contributed Revenue
31.4
54.3
Reported data in €m
Net of non-contributed revenue, contributed revenue totaled
€735.8m at December 31, 2021, amounting to a 14.7% increase
relative to December 31, 2020 (€641.7m). It includes the
contribution of Spill Tech, consolidated as of March 1, 2021, for
€34.0m.
At constant scope, contributed revenue amounted to €701.8m, up
sharply by 9.4% on December 31, 2020, as reported, and +9.2% at
constant exchange rates.
Breakdown by geographical scope
As at December 31
2020
2021
Gross change
In €m
%
In €m
%
%
Subsidiaries in France
486.6
75.8%
531.7
72.3%
+9.3%
o/w scope effect
-
-
-
-
International subsidiaries
155.1
24.2%
204.1
27.7%
+31.6%
o/w scope effect
13.6
-
34.0
-
Total contributed revenue
641.7
100.0%
735.8
100.0%
+14.7%
Consolidated data at current exchange
rates. At constant exchange rates, contributed revenue at December
31, 2020 was €642.9m, illustrating a positive foreign exchange
effect of €1.2m.
The first half of 2021 confirmed a high level of activity in
France and abroad in the main geographical regions:
- In France, contributed revenue rose a considerable 9.3% to
€531.7m, versus €486.6m at December 31, 2020. Séché Environnement
benefited from industrial markets supported by the high level of
industrial production and local authorities contracts driven by the
implementation of regulations related to the circular economy.
These bullish markets and strong sales momentum enabled the Group
to report favorable volume and price effects, while Services
activities also performed well (Large Account services,
Environmental Services). Activities related to the circular economy
and hazard containment drove growth. Revenue earned in France
accounted for 72.3% of contributed revenue at Friday, December 31,
2021 (versus 75.8% one year earlier);
- Internationally, revenue totaled €204.1m versus €155.1 million
at December 31, 2020, for a 31.6% increase as reported.
International revenue includes a scope effect of €34.0m, resulting
from the contribution of Spill Tech, integrated on March 1, 2021.
It also recorded foreign exchange gains of +€1.2m, mainly due to an
appreciation of the South African rand against the euro. At
constant scope and exchange rates, international revenue growth was
+8.8% over the period, illustrating the return to growth in most
geographical regions:
- Europe (revenue: €70.4m, up 7.5%) recorded a significant upturn
in Mecomer’s activities (hazardous waste treatment in Italy) and a
good performance by Valls Quimica (chemicals recovery in Spain) and
UTM (industrial gas recovery in Germany);
- South Africa (revenue: €67.2m, up 14.5% at current exchange
rates and +9.3% at constant exchange rates): Interwaste confirmed
its return to normative activity levels in markets driven by the
needs of major industrial clients in terms of environmental
solutions at the highest international standards;
- Latin America (revenue: €14.3m, -9.3% at current exchange rates
and -1.6% at constant exchange rates) stabilized in 2021 and showed
some signs of recovery at the end of the year;
- Solarca in the Rest of the World (revenue: €18.2m, up 20.8%)
recorded stronger levels of activity, but the subsidiary is still
being affected by restrictions on international travel in some
parts of the world.
Revenue earned by international subsidiaries accounted for 27.7%
of contributed revenue at December 31, 2021 (versus 24.2% one year
earlier).
Breakdown by activity
As at December 31
2020
2021
Gross change
In €m
%
In €m
%
Services
248.8
38.8%
301.4
41.0%
+21.1%
o/w scope effect
0.1
-
34.0
-
-
Circular economy, decarbonization
218.9
34.1%
243.1
33.0%
+11.1%
o/w scope effect
13.4
-
-
-
-
Hazard management
174.0
27.1%
191.3
26.0%
+10.0%
o/w scope effect
0.1
-
-
-
-
Total contributed revenue
641.7
100.0%
735.8
100.0%
+14.7%
Consolidated data at current exchange
rates.
All activities contributed in a balanced manner to growth, with
services also benefiting from the contribution of the newly
consolidated Spill Tech.
Service activities recorded contributed revenue of €301.4m at
December 31, 2021 (versus €248.8m one year earlier, i.e. an
increase of +21.1% in reported data). This strong increase includes
Spill Tech's contribution of €34.0m.
At constant scope and exchange rates, Services business rose a
considerable 6.4% year on year. They benefited from:
- In France (revenue: €174.0m, up 3.8%), the contribution of Key
Accounts Services, and notably "all-inclusive offers" that meet the
growing needs of clients in terms of outsourcing their sustainable
development issues, and the good performance of Environmental
Services (decontamination, emergency interventions);
- Internationally (revenue: €93.4m, +14.9%), renewed growth for
Solarca and the strong performance of Interwaste in South
Africa.
Service activities accounted for 41.0% of contributed revenue at
December 31, 2021 (versus 38.8% one year earlier).
Circular economy and decarbonization activities generated
revenue of €243.1m at December 31, 2021 (vs. €218.9m a year
earlier), a significant increase of +11.1% in reported data and of
+11.2% at constant exchange rates. This increase reflects:
- In France (revenue: €176.3m, up 13.2%), the good trend in
material recovery and recycling businesses driven by the
implementation of regulations related to the circular economy, and
energy recovery activities supported, among other aspects, by the
ramp up of the Osiris contract.
- Internationally (revenue: €66.8m, up 5.8% as reported and +6.2%
at constant exchange rates), strong trends in the solvent
regeneration business in Spain (Valls Quimica)
Activities related to the circular economy and decarbonization
accounted for 33.0% of contributed revenue at December 31, 2021
(vs. 34.1% one year earlier).
Hazard management activities generated revenue of €191.3m, up
+10.0% year on year in reported data and +10.6% at constant
exchange rates:
- In France, hazard management activities increased
significantly, +11.1% to €181.4m. They benefited from positive
volume and price effects in line with strong trends in HW
activities; with revenue of €9.9m, these activities posted a
decline of -7.2% compared with 2020 as reported, but an increase of
+2.6% at constant exchange rates.
- Internationally, with revenue of €9.9m, these activities posted
a decline of -7.2% compared with 2020 as reported, but an increase
of +2.6% at constant exchange rates. This change reflects the
modest performance of final waste management activities in Latin
America.
Hazard management activities accounted for 26.0% of contributed
revenue at December 31, 2021 (versus 27.1% one year earlier).
Breakdown by division
As at December 31
2020
2021
Gross change
In €m
%
In €m
%
Hazardous waste division
405.2
63.1%
483.9
65.8%
+19.4%
o/w scope effect
13,6
-
34,0
-
-
Non Hazardous waste division
236.5
36.9%
251.9
34.2%
+6.5%
o/w scope effect
-
-
-
-
-
Total contributed revenue
641.7
100.0%
735.8
100.0%
+14.7%
Consolidated data at current exchange
rates.
The Hazardous waste division, which accounts for 65.8% of
consolidated contributed revenue (versus 63.1% in 2020), generated
revenue of €483.9m, up 19.4% from December 31, 2020. The figures
include a scope effect of €34.0m related to the integration of
Spill Tech.
At constant scope and exchange rates, the HW division’s revenue
was up 11.4%, driven by renewed growth in industrial production in
most of the regions in which the Group operates:
- In France, the division brought in €333.3m in revenue, up 11.7%
from €298.4m in 2020. Over the period, this division’s circular
economy activities were underpinned by the good level of activity
in the recycling and low-carbon energy generation businesses, with
the launch of the Osiris contract. In addition, its hazard
containment activities were driven by positive trends on industrial
markets, both in terms of volumes and prices. Services activities,
in particular environmental services, returned to strong growth
after being disrupted by the pandemic in 2020;
- Internationally, the division's revenue totaled €150.6m at
December 31, 2021 (versus €106.8m a year earlier), for an increase
of 41.0%. At constant scope and exchange rates, growth came out at
+10.4% year on year, illustrating the good performance of most
markets over the period, with the exception of Latin America, which
remained more sluggish.
The Non-Hazardous waste division, which accounted for 34.2% of
contributed revenue (versus 36.9% a year earlier), generated
contributed revenue of €251.9m, up 6.5% year on year in reported
data and +5.4% at current exchange rates:
- In France, the division brought in €198.4m in revenue, up 5.4%
compared with 2020 This division was driven by its activities in
the circular economy, boosted by the implementation of
incentivizing regulations and ever tougher restrictions on waste
exports, which are facilitating the sector’s good performance in
terms of volumes and prices;
- Internationally, this division’s revenue totaled €53.6m, an
increase of 10.9% as reported and +5.5% at constant exchange rates.
This growth reflects contrasting trends between Interwaste’s
buoyant sales momentum in South Africa and the weaker performance
in Latin America.
EBITDA
At December 31, 2021, EBITDA rose sharply, by 24.3% year on
year, to €170.3m, or 23.1% of contributed revenue (vs. €137.0m,
i.e. 21.3% of contributed revenue at December 31, 2020).
This increase includes a scope effect linked to the
consolidation of Spill Tech over ten months, representing +€10.2m,
or 30.0% of the subsidiary’s revenue. The exchange rate effect is
negligible.
At constant scope, EBITDA totaled €160.1m, or 22.8% of
contributed revenue.
The increase in EBITDA at constant scope (+€23.1m) mainly
reflects:
- Volume effects and positive mix effects for +€42.7m, mainly
benefiting from treatment activities related to commercial momentum
and the effects of the industrial efficiency policy;
- Price effects of +€22.6m, in line with the high level of
treatment facilities in France;
Partially offset by trends in:
- Variable operating expenses (+€31.2m), in line with the
increase in activity;
- Fixed operating expenses (+€8.2m) of which staff expenses
partly related to the strong recovery in Services activities
(particularly Environmental Services - Decontamination);
- Various expenses (insurance premiums, communication expenses
…), for +€2.8m, the period benefiting however from the decrease of
certain expenses such as taxes of production.
Breakdown of EBITDA by geographical area
As at December 31
2020
2021
In €m
Consolidated
France
Internnal
Consolidated
France
Internnal
Revenue
641.7
486.6
155.1
735.8
531.7
204.1
EBITDA
137.0
111.3
25.7
170.3
132.4
37.9
% revenue
21.3%
22.9%
16.6%
23,1%
24,9%
18,6%
Consolidated data at current exchange
rates
For each geographic scope, the main changes were:
- In France, EBITDA totaled €132.4m, or 24.9% of contributed
revenue (versus €111.4m, i.e. 22.9% of contributed revenue a year
earlier). This increase is mainly attributable to:
- Favorable commercial effects in terms of volumes, waste mix and
prices, in line with the good market trends in France and the
improvement in the utilization rate of facilities resulting from
the industrial efficiency policy;
- Controlled operating expenses, linked in particular to
optimization of the logistics organization and the cost-cutting
plan;
- A €1.5m increase in various expenses such as insurance premiums
or communication expenses.
- Internationally, EBITDA totaled €37.9m, or 18.6% of contributed
revenue. The figures include a scope effect of €10.2m related to
the integration of Spill Tech. At constant scope, EBITDA reached
€27.7m, or 16.4% of contributed revenue (versus €25.6m, i.e. 16.5%
of revenue in 2020). This change is mainly attributable to:
- The improvement in activity levels compared to 2020 (volume and
mix effects), particularly in South Africa and at Solarca;
- Offset in part by the increase in certain operating costs in
Europe and decreased business in Latin America (particularly Peru)
despite measures taken to reduce operating expenses.
Current operating income
At December 31, 2021, current operating income was €71.5m, or
9.7% of contributed revenue, representing a sharp increase of
+50.5% on the previous year (€47.5m, or 7.4% of contributed
revenue).
It includes a scope effect related to the integration of Spill
Tech for €8.6m or 25.3% of the subsidiary’s revenue. The exchange
rate effect is negligible.
At constant scope, COI rose sharply (+32.4%) to €62.9m, or 9.0%
of contributed revenue. This sharp improvement mainly reflects the
increase in EBITDA (+€23.1m).
Breakdown of COI by geographical perimeter
As at December 31
2020
2021
In €m
Consolidated
France
Internnal
Consolidated
France
Internnal
Revenue
641.7
486.6
155.1
735.8
531.7
204.1
COI
47.5
41.0
6.5
71.5
54.7
16.8
% Revenue
7.4%
8.4%
4.2%
9.7%
10.3%
8.2%
Consolidated data at current exchange
rates
For each geographic scope, the main changes were:
- In France, current operating income totaled €54.7m, or 10.3% of
contributed revenue (versus €41.0m, or 8.4% of contributed revenue
one year earlier). This good performance reflects the increase in
the contribution of EBITDA in France (+€21.1m) minus, in
particular, the increase in depreciation charges related to the
final waste storage business lines and the start of new
facilities.
- Internationally, COI totaled €16.8m, or 8.2% of revenue.
Restated for the scope effect of €8.6m related to the consolidation
of Spill Tech, COI at constant scope and exchange rates amounted to
€8.2m or 4.8% of revenue (vs. €6.5m, or 4.2% of contributed revenue
in 2020). This performance essentially reflects the improvement in
international EBITDA at constant scope (+€2.0m).
Operating income
Operating income reached €68.7m, or 9.3% of contributed revenue,
recording a +55.4% increase compared with June 30, 2020.
This positive trend mainly reflects the increase in COI.
This figure also included goodwill impairment totaling -€1.6m
recorded on Kanay in Peru (for - €0.9m) and Moz Environmental in
Mozambique (for -€0.8m) following damage to its facilities.
Net financial income
At December 31, 2021, financial income was -€24.1m compared with
-€20.4m in 2020. This improvement reflects in particular:
- An increase in the cost of net debt, to -€18.2m versus -€17.1m
a year ago, following the increase in gross financial debt, with a
slightly lower cost of borrowing than in the previous year, of
2.76% (vs. 2.79% in 2020);
- The recognition in “Other financial income and expenses” of
-€4.4 million representing early repayment penalties on the senior
bank debt maturing in 2023 and certain euro-PPs with the same
maturity.
Income tax
At December 31, 2021, the corporate tax expense was -€14.1m
versus -€8.4m a year ago. It is broken down as follows:
- France, -€9.7m, vs. -€7.5m a year earlier.
- Internationally, -€4.4m, vs. -€0.9m a year earlier, of which
-€2.3m related to the Spill Tech scope.
The effective tax rate was 31.5% versus 35.3% at December 31,
2020.
Share of income of associates
The share of net income of affiliates primarily comprised the
Group’s share of the income of Gerep and Sogad and amounted to
-€0.9m at December 31, 2021 versus -€1.5m a year earlier.
Consolidated net income
At December 31, 2021, consolidated net income was €29.6m versus
€13.9m one year earlier.
After booking the minority interest share in that income,
comprising a loss of -€1.2m versus -€0.1m in 2019, primarily
representing the minority interest shares in Solarca and Mecomer,
net income attributable to company shareholders at December 31,
2021 was €28.4m, i.e. 3.9% of contributed revenue (vs. €13.8m a
year earlier).
Net earnings per share amounted to €3.64 versus €1.77 at
December 31, 2020.
Comments on cash flow and the financial situation as at
December 31, 2021
Cash flows
Summary of the consolidated statement of cash flows
In €m as at December 31
2020
2021
Cashflows from operating activities
121.4
142.3
Cashflows from investing activities
(73.2)
(117.6)
Cashflows from financing activities
(30.0)
41.6
Change in cashflows of continuing
operations
18.1
66.2
Change in cashflows from discontinued
operations
ns
-
Change in cashflows
18.1
66.2
During the period, the change in cash and cash equivalents rose
from +€18.1m to +€66.2m.
The change of +€48.1m reflects:
- The increase in flows generated by operating activities:
+20.9m
- Changes in flows related to investment transactions:
-€44.4m
- An increase in flows related to financing transactions:
€71.6m
Cash flows from operating activities
In fiscal 2021, the Group generated €142.3m in cash flows from
operating activities (versus €121.4m a year earlier), up
€20.9m.
This trend reflects the combined effect of:
- The €31.8m increase in cash flows before tax and financial
expenses to €153.1m (vs. €121.3m a year earlier);
- The -€0.6m decline in the working capital requirement, which
stood at +€11.3m at the end of 2020. This item includes a scope
effect related to the consolidation of Spill Tech, for €4.3m. It
also incorporates a transfer of receivables of €23.8m vs. €24.2m in
2020;
- Net taxes paid in the amount of -€10.1m versus -€11.2m in
2020.
Cashflows from investing activities
In €m as at December
2020
2021
Net industrial capex recorded
63.0
92.4
Net financial capex recorded
0.0
1.2
Total net capex recorded
63.0
93.8
Net industrial capex paid
64.2
87.4
Net financial capex paid
(0.0)
0.8
Acquisition of subsidiaries – Net
cashflows
9.0
29,4
Total net capex paid
73.2
117.6
In fiscal 2021, recorded industrial investments amounted to
€92.4m (versus €63.0m in 2020), breaking down as follows:
- Recurrent investments totaling €50.4m, representing 6.8% of
contributed revenue (versus €43.2m in 2020, i.e. 6.7% of
contributed revenue).
- Development investments totaling €42.0m, or 5.7% of contributed
revenue (versus €19.8m in 2020, i.e. 3.1% of contributed revenue).
These mainly concern growth investments in Italy (Mecomer) and the
ERP project.
Industrial investments can be broken down as follows:
- €14.0m in category 2 “public service delegation” expenses
(versus €9.8m in 2020;
- €18.7m for energy storage and production facilities (versus
€13.9m in 2020;
- €7.6m for thermal treatment systems, platforms and other
treatments (versus €6.7m in 2020;
- €3.9m for materials recovery tools (versus €0.9m in 2020;
- €20.0m for eco-services tools, including the vehicle fleet
(versus €11.4m in 2020;
- €16.9m for holding activities relating to information systems,
regulatory investments and development investments in subsidiaries
(versus €10.7m in 2020.
- €11.3m in miscellaneous recurring investments (versus €9.8m in
2020).
Cash flows from financing activities
Total net cash relating to financing activities amounted to
+€41.6m in 2021, essentially reflecting:
- Flows from new borrowings: €380.3m vs. €64.4m a year earlier.
This line includes a €80m Euro PP issue in March 2021 and a €300m
senior bond issue in November 2021
- Flows from loan repayments: -€293.8m vs. -€51.0m in 2020. These
flows mainly include the early repayment of the senior bank loan
maturing in 2023 and of certain euro-PP bonds
- Interest expense: -€15.3m vs. -€15.1m in 2020
- Flows from dividends paid to minority interests: -€1.1m vs.
-€0.9m in 2020
- Cash flows without gain of control: -€2.1m vs. -€4.1m in 2020,
partially representing the impact of the acquisition of an
additional 5% interest in Solarca
- Change in shareholder’s equity: €0.2m
- Repayment of lease liabilities for -€19.2m, including interest
on leases for €2.0 million, vs. -€16.2m including interest for
€1.9m a year earlier.
Debt and funding structure
Change in financial debt
In €m as at December
2020
2021
Bank loans
241.5
139.1
Non recourse bank loans
29.6
27.0
Bonds
229.3
425.3
Lease liabilities
45.0
45.7
Miscellaneous debt
3.1
2.3
Short-term banks borrowings
7.1
7.7
Gross financial debt
555.5
647.1
Cash balance
(105.3)
(172.2)
Net financial debt
450.2
474.9
o/w due in less than one year (1)
(37.5)
(108.1)
o/w due in more than one year
487.7
583.0
(1) Cash and cash equivalents are
considered as less than one year
Gross financial debt stood at €647.1m at December 31, 2021,
compared with €555.5m a year earlier. This €91.6m increase mainly
reflects changes in:
- Bank debt, excluding non-recourse debt, which fell €102.4m
following the early repayment of the senior bank loan;
- Bond debt: +€196.0m, reflecting the balance of new issues (made
in March and November) and early repayments on certain Euro PP
bonds at the end of the year;
At December 31, 2021, the cash balance stood at €172.2m, up
€66.9m year on year.
Net financial debt (IFRS) is under control at €474.9m versus
€450.2m a year earlier.
Over the period, it changed as follows:
In €m
12/31/2020
12/31/2021
Net financial debt at opening
456.2
450.3
Scope effect
-
3.1
Cashflows from operating
activities
(121.3)
(142.3)
Net industrial capex paid
64.2
87.4
Net financial capex paid
9.0
30.2
Dividends
8.3
8.5
Net interests paid (o/w interests on
leases)
17.0
17.3
Cash and cash equivalent without gain of
control
4.0
2.0
Others
0.2
(0.2)
Non cash change
12.7
18.7
Net financial debt at closing
450.3
474.9
Net financial investments paid include:
- €23.9m: the fair value of the consideration transferred from
Spill Tech Group including transaction fees), as the acquired
financial debt amounts to a non-cash change in net debt – scope
effect – for €3.1m (excluding lease liabilities);
- For the balance: mainly the payment of the last earnout on the
acquisition of Mecomer group.
The financial leverage ratio came out at 2.7x EBITDA (versus
3.3x a year earlier), illustrating significantly improved financial
flexibility.
APPENDIX 1
CONSOLIDATED CASHFLOW STATEMENT
(In thousands of euros)
31/12/2020
31/12/2021
Goodwill
309,079
324,156
Intangible fixed assets from under
concession arrangements
41,419
36,846
Other intangible fixed assets
39,156
41,901
Property, plant, equipment
313,768
344,847
Investments in associates
180
50
Non-current financial assets
7,209
11,054
Non-current derivatives - assets
-
-
Non-current operating financial assets
35,930
29,516
Deferred tax – assets
23,438
21,447
Non-currents assets
770,179
809,816
Inventories
15,009
17,321
Trade and other receivables
171,023
186,035
Current financial assets
974
3,218
Current derivatives - assets
-
-
Current operating financial assets
32,103
36,220
Cash and cash equivalents
105,265
172,201
Current assets
324,374
414,996
Assets held for sale
-
-
TOTAL ASSETS
1,094,554
1,224,812
(in thousands of euros)
31/12/2020
31/12/2021
Share capital
1,572
1,572
Additional paid capital
74,061
74,061
Reserves
163,479
165,452
Net income
13,815
28,384
Shareholder’s equity (share of the
Group)
252,927
269,469
Minority interests
4,302
5,426
Total shareholder’s
equity
257,230
274,895
Non-current financial debt
457,847
552,173
Non-current rental debt
29,882
30,833
Non-current derivatives - liabilities
0
0
Employee benefit
16,497
17,178
Non-current provisions
22,185
24,314
Non-current operating financial
liabilities
2,377
4,722
Deferred tax – liabilities
6,076
5,383
Non-current liabilities
534,865
634,603
Current financial debt
52,647
49,102
Current rental debt
15,161
14,977
Current derivatives - liabilities
75
-
Current provisions
1,756
1,810
Trade payables
115,150
137,343
Other current liabilities
116,229
111,161
Tax liabilities
1,440
922
Current liabilities
302,459
315,314
Liabilities held for sale
-
-
TOTAL LIABILITIES AND
SHAREHOLDER’S EQUITY
1,094,554
1,224812
APPENDIX 2
CONSOLIDATED INCOME STATEMENT
(in thousands of euros)
12/31/2020
12/31/2021
Revenue
673,076
790,117
Oher business income
780
1,207
Income from ordinary activities
673,856
791,324
Purchases used for operational
purposes
(85,007)
(97,760)
External expenses
(240,026)
(280,042)
Taxes and duties
(47,663)
(59,021)
Employee expenses
(164,154)
(184,218)
EBITDA
137,007
170,282
Expenses for rehabilitation and/or
maintenance of sites under concession arrangements
(12,488)
(10,692)
Depreciation & amortization,
impairment and provisions
(76,840)
(86,624)
Other operating items
(144)
(1,469)
Current operating income
47,535
71,496
Other non-current items
(3,292)
(2,813)
Operating income
44,243
68,684
Cost of net financial debt
(17,020)
(18,184)
Other financial income and expenses
(3,419)
(5,941)
Financial income
(20,439)
(24,126)
Share of income in associates
(1,477)
(908)
Income tax
(8,404)
(14,051)
Net income
13,923
29,599
o/w attribuable to minority interest
(107)
(1,215)
o/w Group share
13,815
28,384
Non-diluted per share (in euros)
1,77
3,64
Diluted per share (in euros)
1,77
3,64
APPENDIX 3
CONSOLIDATED CASHFLOW STATEMENT
(in thousand of euros)
12/31/2020
12/31/2021
Net Income
13,923
29,599
Share of income of associates
1,477
908
Dividends from joint venture and
associates
-
-
Depreciation & amortization,
impairment and provisions
76,210
87,181
Income from disposals
829
676
Deferred tax
201
2,235
Other income and expenses
3,904
4,018
Cashflows
96,544
124,616
Income tax
8,204
11,816
Cost of gross financial debt
16,532
16,626
Cashflows before taxes and financial
expenses
121,279
153,058
Change in WCR
11,310
(645)
Tax paid
(11,233)
(10,147)
Net cashflows from operating
activities
121,356
142,266
Investments in property, plant, equipment
and intangible assets
(66,392)
(89,565)
Disposals of property, plant, equipment
and intangible assets
2,171
2,119
Increase in loans and financial
receivables
(543)
(1,207)
Decrease in loans and financial
receivables
473
380
Takeover of subsidiaries net of cash and
cash equivalents
(9,003)
(29,335)
Loss of control of subsidiaries net of
cash and cash equivalents
52
1
Net cashflows from investing
activities
(73,242)
(117,608)
(in thousands of euros)
31/12/2020
31/12/2021
Dividends paid to equity holders of the
parent
(7,412)
(7,410)
Dividends paid to holders of minority
interests
(861)
(1,078)
Capital increase or decrease by
controlling company
407
-
Cash and cash equivalents without
loss/gain of control
(4,066)
(2,077)
Change in shareholder’s equity
(168)
202
New loans and financial debt
64,431
380,261
Repayment of loans and financial debt
(51,013)
(293,842)
Interest paid
(15,115)
(15,296)
Repayment of lease liabilities and
associated expenses
(16,245)
(19,185)
Net cashflows from financing
activities
(30,043)
41,575
Total cashflow of the period for
continuing activities
18,072
66,233
Net cashflow from discontinued
activities
(1)
-
TOTAL CASHFLOWS FOR THE
PERIOD
18,071
66,233
Cash and cash equivalents at the beginning
of the year
80,741
98,184
Cash and cash equivalents at the end of
the year
98,184
164,520
Effects of changes in foreign exchange
rates
631
(103)
(1) o/w:
Cash and cash equivalents
105,265
172,201
Short term banks borrowings
(current financial debt)
(7,081)
(7,682)
APPENDIX 4
DEFINITION OF CONTRIBUTES REVENUE
New presentation of contributed revenue
In €m
As at December 31
2019
2020
2021
Reported Revenue
704.4
673.1
790.1
IFRIC 12 Revenue
-
0.6
8.7
Compensation
16.6
-
-
TGAP
30.9
30.8
45.6
Contributed Revenue
656.9
641.7
735.8
Definitions
IFRIC 12 revenue: investments made for disposed assets,
recognized as revenue and intangible assets or in financial assets
in accordance with the IFRIC 12 interpretation.
Compensation: diversion compensation paid to Sénerval (net of
variable cost savings on non incinerated tonnage) in 2019 to cover
the costs incurred to ensure the continuity of services to local
authorities during asbestos removal at the Eurométropole Strasbourg
incinerator.
TGAP: General Tax on Polluting Activities paid by the waste
producer and collected by waste management operators on behalf of
the State. This tax is paid to the government with no impact on
operating margins.
It is slated to change between 2021 and 2025, in both very
significant and very differentiated manners, leading to the
recognition of:
- Non-economic revenue resulting from a significant increase in
the amount of tax collected, particularly within the NHW
division;
- Widely varying changes across operations, not representative of
their economic developments, in particular in the treatment
businesses (incineration and storage of final waste).
APPENDIX 6
APPLICATION OF REGULATION EU
2020/852
(“GREEN TAXONOMY”)
The European Taxonomy classifies economic activities with a
favorable impact on the environment. The aim is to direct
investment towards “green” businesses.
Business activities classified as sustainable meet at least one
of the following six objectives:
- No. 1: climate change reduction
- No. 2: climate change adaptation
- No. 3: sustainable use and protection of water and sea
resources
- No. 4: transition to a circular economy
- No. 6: protection and restoration of biodiversity and
ecosystems
The business activity must make a substantial contribution to
one or more of the six objectives without doing no significant harm
to the other objectives (the “DNSH” principle).
An initial delegated act (Act 1) on the climate (first two
objectives) of the European Taxonomy was adopted on June 4,
2021.
The Platform for Sustainable Finance proposed criteria for a
second delegated act (Act 2) in August 2021. These criteria
proposals concern the alignment of economic activities with
objectives 3 to 6. It is on the basis of this proposal that the
European Commission will draft a proposal of Act 2 in 2022.
The entities concerned by this new obligation publish the share
of their revenue, the share of their CAPEX and the share of their
OPEX relating to activities eligible for the Taxonomy.
Séché Environnement has classified its activities according to
their eligibility for Act 1 and the criteria proposed for Act
2.
The sole obligation is the publication of information on the
eligibility of economic activities for Act 1.
In a spirit of transparency, the Group is thus preparing ahead
of time for the classification of all its activities according to
their eligibility for the two delegated acts.
Eligible share
2021
Act 1
Act 2
Total
Contributed revenue
16%
58%
74%
OPEX
17%
65%
82%
CAPEX
16%
44%
61%
Based on Act 1 of the Taxonomy, the following Group activities
are eligible:
- The collection and transport of non-hazardous waste sorted at
source
- The recovery of from non-hazardous waste
- Other low-carbon manufacturing technologies (mainly the
production of basic organic chemical products)
- The generation of photovoltaic electricity
Based on the proposed criteria for Act 2 of the Taxonomy, the
following Group activities are eligible:
- The collection and transport of hazardous waste
- The treatment of hazardous waste for material recovery
- The treatment of hazardous waste for pollution prevention and
control
- Decontamination to prevent and control pollution
- Environmental emergency services
- Urban wastewater treatment
- Other renewable and recovered energies, notably from hazardous
waste
It should be noted that service activities (41% of turnover and
91% considered eligible for taxonomy) consume less CAPEX than
circular economy and decarbonization activities, as well as those
of hazard management.
This considerable share of business activities, operating
expenses and industrial investments eligible for the Taxonomy
illustrates the Group’s strong positioning in businesses related to
the ecological transition.
1 Earnings before interest, tax, depreciation and amortization
plus dividends received from subsidiaries and the balance of other
operating income and expenses and cash, less site maintenance and
restoration expenses, major maintenance expenses under concession
arrangements ("public service delegations") and investments in
concessions (IFRIC 12). 2 Free cash before non-recurring industrial
investments, financial investments, dividend and debt repayments. 3
Contributed revenue is reported revenue, less IFRIC 12 revenue
(amount of investments in concessions, recognized as revenue and
activated in intangible assets or in financial assets in accordance
with the recommendations of the IFRIC 12 interpretation) and less
the General Tax on Polluting Activities (TGAP). 4 See press release
of December 17, 2019 5 Cash and cash equivalents + facilities + RCF
6 See press release of August 2, 2021 7 EBITDA / contributed
revenue 8 General Tax on Polluting Activities, paid by the waste
producer and then transferred to the government by Séché
Environnement in respect of some of its activities in France
View source
version on businesswire.com: https://www.businesswire.com/news/home/20220307005582/en/
SÉCHÉ ENVIRONNEMENT
Analyst / Investor Relations Manuel Andersen Head of
Investor Relations m.andersen@groupe-seche.com +33 (0)1 53 21 53
60
Media Relations Constance Descotes Head of Communications
c.descotes@groupe-seche.com +33 (0)1 53 21 53 53
Seche Environnement (EU:SCHP)
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