Séché Environnement: Excellent Commercial, Operational and Financial Performance as at June 30, 2021
Solid business and favorable environment
Significant increase in operating profitability
Financial flexibility considerably improved
Upward revision of 2021 targets, on track to reach 2022 road map one year early
Planned acquisition of Osis-IDF
Commercial performance
Contributed revenue:
Operational performance
EBITDA:
COI:
Financial performance
Free operating cash flow:
2.7x financial leverage ratio -0.6x
2021 targets revised upwards1
Contributed revenue* close to
EBITDA between
(vs "aim for EBITDA of
Improved financial leverage ratio to 2.7x (vs "of around 2.9x at the end of 2021")
* at constant scope including TGAP (tax on polluting activities)
CHANGÉ,
Séché Environnement (Paris:SCHP) posted solid growth momentum in
The Group has increased its operating margins significantly and, thanks to its strong cash generation, it considerably improved its financial flexibility.
These results confirm the suitability of the Group's profitable growth strategy and the lasting effects of its industrial efficiency policy.
Séché revised its targets for 2021 and is expected to reach most of the business and operating profitability goals initially set for 2022.
New prospects for medium-term growth and increased operating profitability will be presented at the end of the year as part of an "Investor Day".
At the Board of Directors meeting held on
Over the period, Séché achieved commercial, operational and financial performance levels that were not only well above H1 2020, but also higher than H1 2019.
With its array of solutions to meet the long-term challenges faced by industrial and government clients in the establishment of a circular and decarbonized economy, Séché is positioned in the high value-added segment of waste recovery activities at the core of business lines with high barriers to entry. Drawing on innovations from its R&D work, which hews as closely as possible to the needs of its customers, the Group is able to capture the growth in its markets, in both volume and value, in
In
Operating margins have risen sharply: the industrial efficiency policy and cost control efforts laid out in the cost-cutting plan have contributed significantly to the increase in profitability of facilities and the entire organization. From a financial perspective, the Group has managed its debt while maintaining a dynamic growth investment policy, particularly at the international level, and cash generation has contributed to a major improvement in balance sheet flexibility.
These trends are sustainable. The excellent economic, operational and financial performances of the past period led the Group to revise its targets for 2021 upwards and it expects to be one full year ahead of schedule in achieving goals that had been set for 2022.
New targets for business growth and medium-term operating profitability will be announced at the end of the year. I firmly believe these will illustrate the relevance of Séché Environnement's profitable growth strategy implemented at the heart of the sustainable development markets in
Selected financial data
Consolidated data in €m
At |
2019
|
|
2020
|
|
2021 |
|
Gross
|
|
Contributed revenue |
314.4 |
|
299.7 |
|
354.7 |
|
+ |
|
EBITDA |
63.6 |
|
53.8 |
|
81.1 |
|
+ |
|
% of revenue |
|
|
|
|
|
|
|
|
Current operating income |
22.1 |
|
13.0 |
|
32.9 |
|
+ |
|
% of revenue |
|
|
|
|
|
|
|
|
Net financial income |
(8.4) |
|
(10.4) |
|
(9.4) |
|
- |
|
Income tax expense |
(5.0) |
|
(2.3) |
|
(7.2) |
|
|
|
Share of profit of associates |
(0.1) |
|
(0.1) |
|
(0.5) |
|
|
|
Minority interests |
(0.5) |
|
(0.0) |
|
(0.4) |
|
|
|
Net income (Group share) |
7.6 |
|
(0.9) |
|
13.5 |
|
- |
|
% of revenue |
|
|
( |
|
|
|
|
|
Earnings per share (Group share) |
0.96 |
|
( |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Recurring operating cash flow2 |
52.9 |
|
41.7 |
|
62.9 |
|
+ |
|
Industrial CapEx paid (excl. IFRIC 12) |
30.2 |
|
35.4 |
|
34.7 |
|
- |
|
Free operating cash flow3 |
35.0 |
|
39.4 |
|
45.1 |
|
+ |
|
Net financial debt under IFRS |
445.9 |
|
445.5 |
|
465.5 |
|
+ |
|
|
|
|
|
|
|
|
|
|
Financial leverage ratio |
3.2x |
|
3.3x |
|
2.7x |
|
-0.5x |
* Contributed revenue excluding TGAP (tax on polluting activities)
Summary of activity, income, and financial situation at
In H1 2021, Séché Environnement consolidated its profitable growth momentum and confirmed the favorable outlook for its business, operating profitability and financial position for the entire current fiscal year and beyond.
In
On the whole, International business confirmed the return to growth and, to varying degrees, posted more sustained levels of activity after a financial year tarnished by the pandemic in 2020. In
On a like-for-like basis, in H1 2021, Séché Environnement achieved commercial, operational and financial performance that not only exceeded the same period in 2020 but also significantly improved over the period ended on
On the finance front, the Group issued a bond of
Over the period, the Group managed its debt while maintaining an active growth investment policy, particularly in international markets. The Group's financial flexibility is improving significantly.
Drawing on its sustained growth momentum at the heart of the growing markets of the circular economy and the fight against climate change, Séché is confident that its industrial efficiency policy will continue to have a positive impact. For 2021 and beyond, it anticipates a continued increase in its operating margins, strong cash generation and continued improvement in its financial flexibility.
The Group is reviewing its targets ‒ especially in terms of operating results and financial position ‒ for 2021 and is expected to achieve, one year in advance, most of the targets initially set out in its 2022 road map6.
Finally, the Group recently announced its intention to acquire from
Strong markets and confirmed sales momentum
High-quality organic growth
At
At constant scope, contributed revenue stood at
In H1 2021, Séché Environnement confirmed the impressive increase in its activities in
-
In
France (74% of contributed revenue), activity rose sharply (+16.9% to€261.3m ), with the Group benefiting from high volumes and good prices in all its recovery and treatment markets, while Services business lines also confirmed their momentum;
-
Internationally, revenue (
€93.5m or +22.5% , reported data) recorded Spill Tech's contribution over four months at€11.1m . At constant scope and exchange rates, growth in this scope was9.4% .
Europe andSouth Africa posted significant growth, whileLatin America , which was slower to feel the effects of the public health crisis, suffered in H1 2021 from an unfavorable basis of comparison.
Operating results performed considerably better than in H1 2020 and above H1 2019:
-
EBITDA was
€81.1m , i.e.22.9% of contributed revenue. It posted an increase of50.7% compared toJune 30, 2020 (and was up27.5% over the same period in 2019)
It includes a scope effect related to the integration of Spill Tech as ofMarch 1, 2021 , for€3.4m (30.6% of revenue).
At constant scope, EBITDA increased by44.4% versusJune 30, 2020 . It came to22.6% of contributed revenue (versus18.0% atJune 30, 2020 , and20.2% atJune 30, 2019 ).
InFrance , the Group benefited from the 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 more positive trends in its business compared to the same period last year, as well as firm control of its operating expenses, particularly inLatin America ;
-
Current Operating Income (COI) was
€32.9m , i.e.9.3% of contributed revenue. It was up152.1% compared toJune 30, 2020 (and rose48.4% compared to the same period in 2019).
It includes Spill Tech's contribution of€2.9m (26.1% of revenue).
At constant scope, COI rose sharply compared toJune 30, 2020 (+130.0% ).
Current operating profitability was8.7% of contributed revenue (4.4% in H1 2020 and7.0% in H1 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 reached
€30.8m , or8.7% of contributed revenue, marking an increase of158.8% compared to 2020 (+42.6% compared to 2019). Its change mainly reflects the increase in COI.
Financial income improved to (
After recognition of a tax expense for (
Industrial investments (excluding IFRIC 12) were under control, at
Available operating cash flow stood at
Available cash was
Net financial debt (IFRS) was under control at
Recent events and outlook
Planned acquisition of eight operational centers from Osis IDF11
On
For Séché, the acquisition of these eight centers, grouped under the name "Agence Osis-IDF Collectivité", rounds out its range of environmental services with new promising business lines and expands its geographical coverage to Ile-de-
Agence Osis-IDF Collectivité is expected to generate revenue of around
Séché Environnement made an irrevocable pledge to Osis-IDF to acquire the Agence Collectivité subject, among other conditions, to the approval of the
As a result, the acquisition is expected to be finalized in early 2022. It will be funded from the Group's free cash flow, with no significant impact on the liquidity position or financial leverage.
Upward revision of 2021 targets
On the strength of its economic, operational and financial achievements in H1 2021, Séché Environnement is confident in its ongoing growth in
Good market trend in terms of volume and price
In H2 2021, Séché Environnement expects to continue to benefit in
Contracts with local authorities, which mainly relate to non-hazardous waste, should continue to benefit from the positive effects of transitioning to a circular economy.
These trends should continue to benefit from favorable commercial effects for the full year.
Internationally, most areas are expected to confirm their return to growth, this period benefiting in addition from the favorable comparison basis of H2 2020.
The contributed revenue12 expected for 2021 should therefore be close to
Accelerated improvement in operational performance
From an operational standpoint, Séché Environnement will continue its industrial efficiency strategy, 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.
These factors should enable the Group to improve its gross operating profitability (EBITDA/contributing revenue including TGAP) and aim for a new gross operating margin target14ranging from
Confirmation of significantly improved flexibility
Séché Environnement will maintain its selective investment policy in addition to development projects worth around
The Group confirmed the improvement in its financial flexibility objective, and is now targeting a leverage ratio of around 2.7x EBITDA at end-2021 (excluding external growth), after having already lowered it to 2.9x from 3.0x in
Medium-term outlook
Séché Environnement expects to achieve most of the targets it had set as the endpoint of its 2022 road map in 2021, one year ahead of schedule16.
New prospects to grow the business and raise operating profitability will be detailed as part of an "Investor Day" scheduled for the end of 2021.
Results presentation webcast
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
Next release
Third-quarter 2021 revenue:
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
Séché Environnement has been listed on Eurolist by Euronext (Compartment B) since
FINANCIAL INFORMATION AT
(Excerpts from the Management Report)
Comments on activity and results at
At
Net of non-contributed revenue, contributed revenue totaled
At constant scope, contributed revenue came to
Breakdown of revenue by geographic region
At |
2020 |
|
2021 |
|
Gross
|
|||||
|
In €m |
|
As a % |
|
In €m |
|
As a % |
|
As a % |
|
Subsidiaries in |
223.4 |
|
|
|
261.2 |
|
|
|
+ |
|
o/w scope effect |
- |
|
- |
|
- |
|
- |
|
|
|
International subsidiaries |
76.3 |
|
|
|
93.5 |
|
|
|
+ |
|
o/w scope effect |
13.6 |
|
- |
|
11.1 |
|
- |
|
|
|
Total contributed revenue |
299.7 |
|
|
|
354.7 |
|
|
|
+ |
|
Consolidated data at current exchange rates.
At constant rates, contributed revenue at, |
||||||||||
The first half of 2021 confirmed a high level of activity in
-
In
France , contributed revenue was up considerably (+16.9% ), to€261.2m versus€223.4m atJune 30, 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.
This robust market trend and sales momentum enabled the Group to benefit from volume effects and favorable price effects.
All activities contributed to growth.
Revenue earned inFrance accounted for73.6% of contributed revenue atJune 30, 2021 (versus74.5% one year earlier);
-
Internationally, revenue totaled
€93.5m onJune 30, 2021 , versus€76.3m one year earlier, a22.5% surge in reported data.
International revenue includes a scope effect of€11.1m , linked to the contribution of Spill Tech, which was integrated onMarch 1 , 20221.
It also had a significantly reduced negative exchange rate effect compared to H1 2020: (€1.0m ) versus (€10.2m ).
At constant scope and exchange rates, international revenue growth was9.4% over the period, illustrating the return to growth in most geographical regions:-
Europe (revenue:€34.2m , up4.0% ): growth momentum inEurope (good increase in Mecomer, hazardous waste platform activity inItaly ; Valls Quimica, chemicals recovery inSpain ; and UTM, industrial gas recovery inGermany ) was hampered by the lackluster performance of Iber-Trédi, waste trading inSpain . -
South Africa (revenue:€33.8m , up20.8% ):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:€6.4m , down25.4% ):Peru andChile , where the public health crisis started later, experienced the extended effects of the pandemic because its point of comparison was still strong in H1 2020; -
Rest of World (revenue:
€9.0m , up23.4% ): Solarca (industrial services) is returning to better business levels, but they still remain lower than in 2019, due to government restrictions on international travel which interfere with its ability to quickly execute projects.
-
Revenue earned by international subsidiaries accounted for
Breakdown of revenue by division
At |
2020 |
|
2021 |
|
Gross
|
|||||
|
In €m |
|
As a % |
|
In €m |
|
As a % |
|
|
|
Hazardous Waste division |
195.5 |
|
|
|
228.7 |
|
|
|
+ |
|
o/w scope effect |
13.6 |
|
- |
|
11.1 |
|
- |
|
- |
|
Non-Hazardous Waste division (excluding IFRIC 12 revenue and TGAP) |
104.2 |
|
|
|
126.0 |
|
|
|
+ |
|
o/w scope effect |
- |
|
- |
|
- |
|
- |
|
- |
|
Total contributed revenue |
299.7 |
|
|
|
354.7 |
|
|
|
+ |
|
Consolidated data at current exchange rates. |
||||||||||
The recovery and treatment sectors contributed significantly to growth, with the NHW division being particularly buoyed by the strength of
The HW division, which accounts for
At constant scope and exchange rates, the division's growth came to
-
In
France , the division brought in€165.1m in revenue, up16.5% compared to last year.
Over the period, the division was supported in its recovery and treatment activities by industrial business, which still showed robust volumes and pricing, while decontamination services, strengthened by the growth in environmental emergency interventions, posted highly encouraging growth levels;
-
Internationally, the division's revenue totaled
€52.5m atJune 30, 2021 versus€53.7m one year earlier, showing stability compared toJune 30, 2020 (+0.1% at constant exchange rates).
This stability includes geographical disparities, withEurope andSouth Africa returning to pre-crisis activity levels, whileLatin America and Solarca in the Rest of World were still adversely affected to varying degrees as a result of the health crisis.
NHW, which accounted for
-
In
France , the division brought in€96.1m in revenue, up17.7% compared to last year. The sector confirmed its good trend in volumes and prices, supported by the implementation of regulations related to the establishment of a circular economy and the increasing restrictions on the export of non-hazardous waste;
-
Internationally, revenue reached
€29.9m , posting a very steep increase of32.3% at current exchange rates and of30.7% at constant exchange rates, mainly due to the contribution ofInterwaste inSouth Africa .
Breakdown of revenue by activity
At |
2020 |
|
2021 |
|
Gross
|
|||||
|
In €m |
|
As a % |
|
In €m |
|
As a % |
|
|
|
Treatment |
144.2 |
|
|
|
164.0 |
|
|
|
+ |
|
o/w scope effect |
13.4 |
|
- |
|
- |
|
- |
|
- |
|
Recovery |
44.5 |
|
|
|
51.5 |
|
|
|
+ |
|
o/w scope effect |
0.1 |
|
- |
|
- |
|
- |
|
- |
|
Services |
111.0 |
|
|
|
139.2 |
|
|
|
+ |
|
o/w scope effect |
0.1 |
|
- |
|
11.1 |
|
- |
|
- |
|
Total contributed revenue |
299.7 |
|
|
|
354.7 |
|
|
|
+ |
|
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.
Waste treatment activities totaled
This growth masks a contrasting situation between
-
In
France , treatment activities are growing very significantly: +16.8% to€137.1m . They benefited from favorable volume and price effects, as well as the availability of facilities reinforced by the effects of the industrial efficiency policy;
-
Internationally, treatment activities posted slight growth compared to the same period in 2020 (to
€26.9m , or +2.3% at constant exchange rates): most geographical regions confirmed their return to normative activity levels, but these activities are still weighed down by the decreased business levels inLatin America , where the public health crisis began later (elevated benchmark for comparison).
Treatment activities accounted for
Recovery activities recorded revenue of
-
In
France (revenue:€41.2m , up23.6% ), the good trend in material recovery activities ‒ particularly hazardous waste ‒ driven by the implementation of regulations related to the circular economy, and energy recovery activities supported by customers' needs for low-carbon energy.
-
Internationally (revenue:
€10.3m , down7.7% on reported data and -7.8% at constant exchange rates), the positive trend in the activities of all subsidiaries, which was hampered by the negative trend at Iber Trédi inSpain (-19.5% ).
Recovery activities accounted for
Service activities recorded contributed revenue of
At constant scope and exchange rates, Services business rose considerably: up
-
In
France (revenue:€82.9m , up14.0% ), the contribution of "all-inclusive offers" that meet the growing needs of customers in terms of outsourcing their sustainable development issues, and the good performance of decontamination activities, strengthened by the growth momentum of emergency response services;
-
Internationally (revenue:
€45.2m , up 18,2% at current exchange rates and up19.4% at constant exchange rates), strong growth inInterwaste's services business inSouth Africa .
Service activities accounted for
EBITDA
At
This increase includes a scope effect linked to the consolidation of Spill Tech over four months for +
At constant scope, the EBITDA margin came to
This significant increase in profitability of the historical scope mainly reflects:
-
Volume effects and positive mix effects for +
€28.7m , mainly benefiting from treatment activities related to commercial momentum and the effects of the industrial efficiency policy;
-
Very positive price effects of +
€14.7m , in line with the high level of saturation of treatment facilities inFrance ;
Partially offset by increases in:
-
Variable operating expenses (+
€11.7m ), in line with the increase in activity;
-
Personnel expenses (+
€5.5 million ) due in part to the return to normal operating conditions for staff versus H1 2020 when there were pandemic constraints, and in part to the resumption ofInterwaste's activities;
-
Various charges (including property tax of
€0.4m ) amounting to€2.3m .
Breakdown of EBITDA by geographic scope
At |
2020 |
|
2021 |
|||||||||||
In €m |
Consolidated |
|
|
|
Internnal |
|
Consolidated |
|
|
|
Internnal |
|||
Contributed revenue |
299.7 |
|
223.4 |
|
76.3 |
|
354.7 |
|
261.2 |
|
93.5 |
|||
EBITDA |
53.8 |
|
42.7 |
|
11.1 |
|
81.1 |
|
64.5 |
|
16.6 |
|||
% of contributed revenue |
|
|
|
|
|
|
|
|
|
|
|
|||
Consolidated data at current exchange rates. |
||||||||||||||
For each geographic scope, the main changes were:
In
This steep increase (up
-
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;
-
The absence of H1 2020 non-recurring items, such as the industrial incident in Sénerval, which had an impact on EBITDA worth (
€7.6m ).
Internationally, EBITDA totaled
At constant scope, EBITDA reached
This
-
The improvement of business within this scope, especially in
South Africa ,
-
Partially offset by the increase in certain operating costs in
Europe and decreased business inLatin America (particularlyPeru ) despite measures taken to reduce operating expenses.
Current operating income
At
It includes a scope effect related to Spill Tech's four months of consolidation, for
At constant scope, COI rose sharply (+
This sharp improvement mainly reflects the increase in EBITDA (+
Breakdown of current operating income by geographic scope
At |
2020 |
|
2021 |
|||||||||
In €m |
Consolidated |
|
|
|
Internnal |
|
Consolidated |
|
|
|
Internnal |
|
Contributed revenue |
299.7 |
|
223.4 |
|
76.3 |
|
354.7 |
|
261.2 |
|
93.5 |
|
COI |
13.0 |
|
11.0 |
|
2.0 |
|
32.8 |
|
26.8 |
|
6.0 |
|
% of contributed revenue |
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated data at current exchange rates. |
||||||||||||
For each geographic scope, the main changes were:
-
In
France , current operating income totaled€26.8m , or10.3% of contributed revenue (versus€11.0m , or4.9% of contributed revenue one year earlier).
This good performance reflects the increase in the contribution of EBITDA (+€21.9m ) 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
€6.0m , or6.4% of revenue.
It includes a scope effect of€2.9m relating to the integration of Spill Tech as ofMarch 1, 2021 . The exchange rate effect is negligible.
At constant scope, COI reached€3.1m or3.8% of revenue (versus€2.0m , i.e.2.7% of contributed revenue a year earlier).
This change mainly reflects the improvement in EBITDA (+€2.0m ), partially offset by the increase in amortization expenses and provisions (€0.9m ).
Operating income
Operating income reached
Net financial income
At
This improvement reflects:
-
An increase in the cost of net debt, to (
€8.1m ) versus (€8.7m ) last year, combined with a fall in the cost of gross debt to2.78% (versus2.91% in H1 2020);
-
Favorable changes in the balance of other financial income and expenses, which were (
€1.2m ) versus (€1.7m ) one year ago, due to the improvement in foreign exchange income and, above all, the absence of losses on disposals of financial assets, which had adversely affected this total for (€1.0m ) in H1 2020.
Income tax
At
The effective tax rate was
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 (
Consolidated net income
At
After booking the minority interest share in that income, comprising a loss of (
Net earnings per share amounted to
Comments on cash flow and the financial situation as at
Cash flow
Summary of cash flows
| In €m at |
2020 |
|
2021 |
|
Cash flow from operating activities |
71.4 |
|
76.1 |
|
Cash flows from investing activities |
(42.1) |
|
(67.8) |
|
Cash flows from financing activities |
94.1 |
|
25.1 |
|
Change in cash flow from continuing operations |
123.4 |
|
33.4 |
|
Change in cash flow from discontinued operations |
- |
|
- |
|
Change in cash flow |
123.4 |
|
33.4 |
During the period, the change in cash flow increased from +
This variation of (
-
The increase in flows generated by operating activities: +
€4.7m ;
-
Changes in flows related to investment transactions: (
€25.7m );
-
A reduction in flows related to financing transactions: (
€69.0m )
Cash flows relating to operating activities
Over H1 2021, the Group generated
This change reflects the combined effect of:
-
The very positive developments in gross cash flow before tax and financial expenses, at
€73.8m (versus€46.0m one year earlier);
-
The change in WCR for +
€4.6m , i.e. a reduction of (€26.9m ) compared to the change observed in H1 2020, as no assignments of receivables were recorded during the period ‒ unlike last year;
-
Net taxes paid in the amount of (
€2.4m ) versus (€6.3m ) atJune 30, 2020 .
Cash flows relating to investments
In €m at |
2020 |
|
2021 |
|
Industrial investments |
26.0 |
|
43.7 |
|
Financial investments |
0.1 |
|
0.0 |
|
Investments recorded |
26.1 |
|
43.7 |
|
Industrial investments |
35.6 |
|
39.6 |
|
Financial investments |
0.0 |
|
0.0 |
|
Acquisition of subsidiaries - Net cash flow |
6.6 |
|
28.4 |
|
Investments paid out |
42.2 |
|
68.0 |
During H1 2021, recorded industrial investments amounted to
Excluding investments in concessions, they cover:
-
Recurrent investments totaling
€21.3m , representing6.0% of contributed revenue (versus€17.4m atJune 30, 2020 , i.e.5.8% of contributed revenue).
-
Non-recurrent investments totaling
€17.5m , or4.9% of contributed revenue (versus€8.4m atJune 30, 2020 , i.e.2.8% of contributed revenue). They mainly concern growth investments in subsidiaries inItaly andSouth Africa .
Industrial investments can be broken down between facilities as follows:
-
€6.0m in category 2 “public service delegation” expenses (versus€4.1m in H1 2020);
-
€11.0m for energy storage and production facilities (versus€6.4m in H1 2020);
-
€3.2m for thermal treatment systems, platforms and other treatments (versus€0.7m in H1 2020);
-
€0.4m for materials recovery tools (versus€0.7m in H1 2020);
-
€3.5m for eco-services tools, including the vehicle fleet (versus€1.4m in H1 2020);
-
€10.1m for holding activities relating to information systems, regulatory investments and development investments in subsidiaries (versus€8.0m in H1 2020)
-
€4.6m in miscellaneous recurring investments (versus€4.4m in H1 2020).
Cash flows relating to financing activities
Total net cash relating to financing activities amounted to +
-
Flows from new borrowings: +
€64.5m versus€122.8m in H1 2020, the last period recording a drawdown of€100m on the credit facility line;
-
Flows from loan repayments: (
€21.9m ) versus (€9.6m ) in H1 2020, this period having been subject to a moratorium on bank maturities.
-
Interest expense: (
€6.8m ) versus (€8.0m ) in H1 2020;
-
Flows from dividends paid to minority interests: (
€0.7m ) versus (€0.5m ) in H1 2020;
-
Cash flows without gain of control: (
€0.2m ) versus (€2.9m ) in H1 2020;
-
Repayment of lease liabilities (including interest on leases for
€0.9 million ): (€10.0m ) versus (€7.4m ) in H1 2020.
Debt and funding structure
Change in net debt
In €m at |
2020 |
|
2021 |
|
Bank loans |
217.4 |
|
239.5 |
|
Non-bank debt |
32.0 |
|
28.3 |
|
Bonds |
254.0 |
|
278.9 |
|
Lease liabilities |
42.5 |
|
47.8 |
|
Miscellaneous financial debt |
3.5 |
|
3.3 |
|
Short-term bank borrowings |
112.2 |
|
2.1 |
|
Equity investments |
- |
|
- |
|
Total financial debt (current and non-current) |
660.6 |
|
599.8 |
|
Cash balance |
(215.1) |
|
(134.3) |
|
Net financial debt (IFRS) |
445.5 |
|
465.5 |
|
of which due in less than one year (1) |
(31.7) |
|
(66.7) |
|
o/w due in more than one year |
477.2 |
|
532.2 |
|
Net bank debt (2) |
390.1 |
|
410.8 |
|
(1) The cash balance is considered over less than one year (2) Calculated according to the definition provided in the banking contract |
||||
Gross financial debt stood at
-
bank debt: +
€18.4m ;
-
bond debt: +
€24.9m ;
-
financial leases: +
€5.3m ;
-
various positions: (
€110.3m ) including current bank loans for (€110.1m ) following the full repayment of the credit facility in H2 2020.
At
Net financial debt (IFRS) is under control at
These are the changes recorded:
In €m |
|
|
|
|
Net financial debt at opening |
456.2 |
|
450.3 |
|
Non-cash change in debt |
13.4 |
|
11.9 |
|
Scope effect |
- |
|
3.7 |
|
Cash flows relating to operating activities |
(121.3) |
|
(76.1) |
|
Net industrial CAPEX paid |
64.2 |
|
39.6 |
|
Net financial CAPEX paid |
12.8 |
|
28.4 |
|
Dividends |
8.3 |
|
0.7 |
|
Net interest payments |
15.1 |
|
6.8 |
|
Changes in loans and financial receivables |
(0.2) |
|
(0.6) |
|
Interest paid on financial leases |
1.9 |
|
0.9 |
|
Net financial debt at closing |
450.3 |
|
465.5 |
Net financial investments paid include:
-
€22.9m : the fair value of the consideration transferred fromSpill Tech Group , as the net acquired debt amounts to a non-cash change in net debt for€3.7m (excluding lease liabilities);
-
€5.5m : payment of the last earnout associated with the acquisition of Mecomer.
According to the definition provided in the banking agreement, which specifically excludes some categories of debt (including non-recourse debt) and the effects of IFRS 16, net debt stood at
On this basis, financial leverage came out at 2.7x EBITDA (versus 3.3x a year earlier), illustrating significantly improved financial flexibility.
APPENDIX 1
Consolidated balance sheet
(in thousands of euros) |
|
|
|
307,115 |
326,577 |
Intangible fixed assets under concession arrangements |
43,052 |
39,101 |
Other intangible fixed assets |
37,876 |
41,281 |
Property, plant and equipment |
309,408 |
328,801 |
Investments in associates |
370 |
- |
Non-current financial assets |
7,616 |
6,753 |
Non-current derivatives - assets |
- |
- |
Non-current operating financial assets |
41,096 |
31,528 |
Deferred tax assets |
24,637 |
21,881 |
Non-current assets |
771,170 |
795,922 |
Inventories |
14,276 |
17,733 |
Trade and other receivables |
155,944 |
205,044 |
Current financial assets |
4,572 |
4,682 |
Current derivatives - assets |
- |
- |
Current operating financial assets |
32,457 |
28,572 |
Cash and cash equivalents |
215,116 |
134,329 |
Current assets |
422,365 |
390,360 |
Assets held for sale |
- |
- |
TOTAL ASSETS |
1,193,535 |
1,186,283 |
(in thousands of euros) |
|
|
Share capital |
1,572 |
1,572 |
Additional paid-in capital |
74,001 |
74,061 |
Reserves |
162,105 |
171,203 |
Net income |
(926) |
13,450 |
Shareholders’ equity (Group share) |
236,812 |
260,286 |
Minority interests |
5,393 |
4,212 |
Total shareholders’ equity |
242,205 |
264,497 |
Non-current financial debt |
477,234 |
532,255 |
Non-current derivatives - liabilities |
85 |
0 |
Employee benefits |
15,213 |
17,200 |
Non-current provisions |
19,374 |
24,575 |
Non-current operating financial liabilities |
330 |
3,366 |
Deferred tax liabilities |
6,252 |
6,295 |
Non-current liabilities |
518,699 |
583,690 |
Current financial debt |
183,330 |
67,589 |
Current derivatives - liabilities |
55 |
33 |
Current provisions |
2,012 |
1,076 |
Tax liabilities |
4,568 |
3,968 |
Current operating financial liabilities |
242,666 |
265,429 |
Current liabilities |
412,630 |
338,096 |
Liabilities held for sale |
- |
|
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY |
1,193,535 |
1,186,283 |
APPENDIX 2
Consolidated income statement
(In thousands of euros) |
|
|
Revenue |
313,246 |
382,477 |
Other business income |
78 |
421 |
Income from ordinary activities |
313,326 |
382,898 |
Purchases used for operational purposes |
(43,682) |
(46,095) |
External expenses |
(109,071) |
(132,251) |
Taxes and duties |
(23,461) |
(32,726) |
Employee expenses |
(83,266) |
(90,682) |
EBITDA |
53,635 |
81,144 |
Expenses for rehabilitation and/or maintenance of sites under concession arrangements |
(7,645) |
(5,094) |
Depreciation & amortization, impairment, and provisions |
(33,074) |
(42,823) |
Other operating items |
(77) |
(379) |
Current operating income |
13,039 |
32,848 |
Other non-current items |
(1,151) |
(2,063) |
Operating income |
11,888 |
30,785 |
Cost of net financial debt |
(8,692) |
(8,132) |
Other financial income and expenses |
(1,721) |
(1,232) |
Financial income |
(10,413) |
(9,365) |
Income tax |
(2,323) |
(7,168) |
Share of income of associates |
(67) |
(465) |
Net income from continuing operations |
(916) |
13,787 |
Income from discontinued operations |
- |
- |
Net income |
(916) |
13,787 |
o/w attributable to minority interests |
(10) |
(337) |
o/w Group share |
(926) |
13,450 |
Non-diluted earnings per share (in euros) |
(0.12) |
1.72 |
Diluted earnings per share (in euros) |
(0.12) |
1.72 |
APPENDIX 3
Consolidated statement of cash flows
(in thousands of euros) |
|
|
Net income |
(916) |
13,787 |
Share of income of associates |
67 |
465 |
Dividends from joint ventures and associates |
- |
- |
Depreciation & amortization, impairment, and provisions |
33,198 |
43,089 |
Income from disposals |
986 |
101 |
Deferred taxes |
(891) |
1,444 |
Other income and expenses |
1,761 |
1,246 |
Cash flows |
32,204 |
60,132 |
Income tax |
3,354 |
5,724 |
Cost of gross financial debt before long-term investments |
8,491 |
7,940 |
Cash flow before taxes and financial expenses |
46,049 |
73,795 |
Change in working capital requirement |
31,679 |
4,753 |
Tax paid |
(6,324) |
(2,417) |
Net cash flows from operating activities |
71,404 |
76,131 |
Investments in property, plant and equipment and intangible assets |
(36,485) |
(41,002) |
Disposals of property, plant and equipment and intangible assets |
904 |
1,403 |
Increase in loans and financial receivables |
(118) |
(77) |
Decrease in loans and financial receivables |
11 |
234 |
Takeover of subsidiaries net of cash and cash equivalents |
(6,482) |
(28,380) |
Loss of control over subsidiaries net of cash and cash equivalents |
55 |
(0) |
Net cash flows from investing activities |
(42,115) |
(67,821) |
(in thousands of euros) |
|
|
Dividends paid to equity holders of the parent |
- |
- |
Dividends paid to holders of minority interests |
(482) |
(715) |
Capital increase or decrease by controlling company |
- |
- |
Cash and cash equivalents without loss/gain of control |
(2,919) |
(168) |
Change in shareholders’ equity |
(300) |
24 |
New loans and financial debt |
122,779 |
64,555 |
Repayment of loans and financial debt |
(9,621) |
(21,852) |
Interest paid |
(7,985) |
(6,758) |
Repayment of lease liabilities and associated financial expenses |
(7,399) |
(10,011) |
Net cash flows from financing activities |
94,074 |
25,075 |
Total cash flow for the period, continuing operations |
123,362 |
33,385 |
Net cash flows from discontinued operations |
- |
- |
TOTAL CASH FLOWS FOR THE PERIOD |
123,362 |
33,385 |
Cash and cash equivalents at beginning of year |
80,741 |
98,184 |
Cash and cash equivalents at end of year |
202,988 |
132,251 |
Effect of changes in foreign exchange rates |
(1,065) |
(683) |
(1) of which: |
|
|
Cash and cash equivalents |
215,116 |
134,329 |
Short-term bank borrowings (current financial debt) |
(12,216) |
(2,078) |
APPENDIX 4
DEFINITION OF CONTRIBUTED REVENUE
New presentation of contributed revenue
In €m |
2020 presentation |
|
2021 presentation |
|||
At |
2020 |
|
2020 |
|
2021 |
|
Revenue (reported) |
313.2 |
|
313.2 |
|
382.5 |
|
IFRIC 12 revenue |
0.2 |
|
0.2 |
|
4.9 |
|
TGAP (tax on polluting activities) |
13.3 |
|
13.3 |
|
22.9 |
|
Contributed revenue |
313.0 |
|
299.7 |
|
354.7 |
|
Definitions
IFRIC 12 revenue: investments made for disposed assets, billed back to the Licenser and booked as revenue in accordance with IFRIC 12
TGAP:
It is slated to change between 2021 and 2025, in both very significant and very differentiated manners depending on the business lines and type of treatment:
- Non-economic revenue resulting from the 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).
1See press release from
2Earnings 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)
3Free cash before non-recurring industrial investments, financial investments, dividends and debt repayments.
4See press release from
5See press release from
6See Investor Day of
7See press release from
8Contributed revenue is reported revenue, less IFRIC 12 revenue (amount of investments in concessions, recognized as intangible assets, as well as revenue pursuant to the recommendations of IFRIC 12) and less the impact of the increase in the General Tax on Polling Activities (TGAP).
9 See press release from
10The definition included in the banking contract excludes certain debts from the calculation of net financial debt, such as non-recourse debt and lease liabilities.
11See press release from
12With a constant 2020 scope, including TGAP (tax on polluting activities) estimated at around
13See press release from
14See press release from
15See press release from
16See press release from,
View source version on businesswire.com: https://www.businesswire.com/news/home/20210913005557/en/
SÉCHÉ ENVIRONNEMENT
Analyst and Investor Relations
Head of Investor Relations
m.andersen@groupe-seche.com
+33 (0)1 53 21 53 60
Press and media
Head of Communications
c.descotes@groupe-seche.com
+33 (0)1 53 21 53 53
Source: Séché Environnement
