Confirmation of 2007 Performance Objectives (In EUR millions) 2007
2006 Total growth Organic growth Revenues (1) 23,729 22,353 +6.2%
+3.7% Revenues, climate effect +6.9% excluded (2) Revenues posted
total growth of EUR1,376m which can be broken down as follows: -
Organic growth (+EUR799m); - Effect of gas price increases
(+EUR96m); - Changes in group structure (+EUR673m), including: -
newly consolidated companies (+EUR1,406m): SEE +EUR605m (full
consolidation of CNR +EUR367m, acquisition of Rendo and Cogas in
the Netherlands +EUR236m), SEI +EUR60m (acquisition in Panama), SES
+EUR87m (acquisition of Crespo y Blasco in Spain), SE +EUR654m
(acquisitions in the Waste Management business and the fully
integration of Hisusa Group from 2007, April 1st). - disposals
(-EUR733m): SEE -EUR217m (disposal of Brussels network Operator as
of July 1, 2006, proportional consolidation of AlpEnergia as from
August 2006), SEI -EUR228m (disposal of Hanjin City Gas in May
2006), SES -EUR51m, SE -EUR237m (disposals in Brazil and
Argentina); - Exchange rate fluctuations (-EUR192m), mainly related
to the US dollar (-EUR173m). Over 89% of the Group's revenues were
generated in Europe and North America with 81% recorded in Europe.
Organic growth in revenues (+3.7% and +6.9% excluding climate
effect) stems mainly from: - increased electricity sales in Europe
and internationally, - strong growth in LNG activity, - expansion
of installation and energy services activities in France and HVAC
in other European countries, - a net increase in water and waste
services activities in Europe, - double-digit growth in activities
in China, Australia, and the Middle East. All the Group's
businesses continue to exhibit strong commercial dynamism. SUEZ
confirms its performance objectives for 2007. REVENUE CONTRIBUTION
BY BUSINESS ACTIVITY (In EUR millions) June 30, 2007 June 30, 2006
Gross change Organic growth (1) SUEZ Energy Europe (2) 8,779 8,391
+4.6% +0.7% SUEZ Energy International (2) 3,208 3,058 +4.9% +10.4%
SUEZ Energy Services 5,549 5,362 +3.5% +3.3% SUEZ Environment 6,192
5,543 +11,7% +5.1% TOTAL GROUP 23,729 22,353 +6.2% +3.7% (1) See
page 5 for a breakdown of growth on a comparable basis. (2) Total
sales of electricity and natural gas (SUEZ Energy Europe and SUEZ
Energy International) were EUR 11,987 million, with an organic
growth of 3.3%. SUEZ ENERGY EUROPE (In EUR millions) June 30, June
30, Gross change Organic 2007 2006 growth Revenues 8,779 8,391
+4.6% +0.7% Revenues, climate effect excluded +7.7% Sales for SUEZ
Energy Europe recorded a total growth of 4.6% (+EUR389m) in the
first half of 2007. On a comparable basis and excluding the gas
price effect, revenues showed organic growth of +0.7%. Climate
effect excluded, organic growth totaled +7.7%. - Electricity Sales
of electricity totaled EUR5,681m compared to EUR4,888m at the end
of June 2006, an organic growth of +9.8%. The increase in
electricity sales is the result of both the drive of prices in
Europe and the increase in volumes: - In Belgium, the change in
revenues reflects the increase in electricity market prices,
strongly effected by the increase of fossil fuels prices. The
volumes sold showed a slight decline (-1.3TWh, or -3.4%) due to the
mild weather, the full opening of retail markets and the decrease
of wholesales. - In the Netherlands, the quantities sold by +4.8%
and the total growth in revenues of +20.2% result from the
consolidation of Rendo and Cogas in october 2006. - Electricity
sales outside of Benelux rose +22.5% and accounted for 41% of
electricity sales in Europe. The increase in revenues benefited
from the placing into service of power plants in Spain and Italy,
the commercial successes in France, Germany and the full
integration of Compagnie Nationale du Rhone (CNR). - Natural gas
The decrease in gas volumes sold by Electrabel (-17.6%) was largely
attributable to the impact of the climate conditions on its sales
to residential customers in Benelux. The average temperatures
recorded in the first half of 2007 were +36% higher than those in
the first half of 2006, which had been particularly harsh. Also
sensitive to the climate factor, Distrigaz showed an organic drop
in growth (-EUR166m, or -13%) because of the decrease in volumes
sold in Belgium and due to fewer opportunities for arbitrage.
Excluding Benelux, Distrigaz is successfully pursuing its growth
strategy in the industrial customers segment, a strategy that is
particularly marked in the Netherlands and Germany. The LNG
business is experiencing strong growth with the sale of 4 shipments
in the first half of 2007. - Other activities The decrease in
revenues recognized for the other activities (-EUR84.4m) was the
result of the disposals in the Services business; it was partially
offset by the good performance of the trading business. SUEZ ENERGY
INTERNATIONAL (In EUR millions) June 30, 2007 June 30, 2006 Gross
change Organic growth Revenues 3,208 3,058 +4.9% +10.4% The sales
of SUEZ Energy International grew by +10.4% (or +EUR297m) in terms
of organic growth. This increase is the product of the commercial
drive in all the areas of development, in a context characterized
by strong growth of energy demand and price increase. More
specifically, the organic growth of the business originated in: -
North America (+EUR118m), mainly due to the commercial success of
SERNA (SUEZ Energy Resources North America, supplier of electricity
to commercial and industrial customers in the United States). -
Asia/Middle East (+EUR37m), due to the development of the Group in
the Gulf countries (+EUR20m) and the rise in sales in Thailand
(+EUR12M) due to an increase in volumes, and in Turkey (+EUR6m) due
to the increase in the price of electricity sustained by that of
gas. - Latin America (+EUR87m), where the increase in electricity
sales in Brazil (+EUR42m), Peru (+EUR28m) and Chile (+EUR18m) can
be explained both by the increase in price and by that of volumes
sold. - The Liquefied Natural Gas business (+EUR55m): pursuit of
the optimization activity from London. SUEZ ENERGY SERVICES (In EUR
millions) June 30, June 30, Gross change Organic 2007 2006 growth
Revenues 5,549 5,362 +3.5% +3.3% Revenues, climate effect excluded
+5.6% The organic growth of sales at SUEZ Energy Services was +3.3%
(+EUR172m). Climate effect excluded, the organic growth totaled
approximately 5.6%. - The installation and maintenance business
recorded strong growth in France (+7.1%, +EUR106m), namely with
some very steady new orders for Ineo and Axima. Conversely, despite
their commercial development, the service activities in France
(Elyo) showed an organic decline due to the particularly mild
winter temperatures. - Activities in Belgium reported strong growth
(+12.4%, +EUR86m). - Except for France and Benelux, activities grew
by +3.4% (+EUR34mEUR), this increase being impacted by mild winter
temperatures. SUEZ ENVIRONMENT (In EUR millions) June 30, June 30,
Gross change Organic 2007 2006 growth Revenues 6,192 5,543 +11.7%
+5.1% Water Europe 2,303 1,793 +28.4% +4.6% Waste Europe 2,758
2,445 +12.8% +6.7% Engineering 451 518 -13.0% -10.7% International
680 786 -13.4% +13.3% N.B.: Currently, Safege is listed under
engineering (and no longer within Europe Water) SUEZ Environment
posted organic growth of +5.1% (+EUR270m), in line with its
2007-2009 objectives. The total growth of +11.7% (+EUR649m) is
marked on the one hand by the fully integration of Hisusa Group
from 2007, April 1st and on the other hand by the withdrawals from
consolidation in Brazil and Argentina over the 1st half of 2006. -
Sales for Water Europe posted organic growth of +4.6% (+EUR79m),
mainly from the water and wastewater business of Agbar (+7.1%,
+EUR52m) and from the signing of new wastewater and services
contracts in France (+3.2%, +EUR28m). The Group won and renewed
numerous contracts in 2007 (Blagnac Airport, Intercommunal
Wastewater Syndicate for Cote de Nacre, Corbeil-Essonnes,
Montargoise and Rives du Loing Agglomeration, etc.) - Sales for
Waste Europe reported sharp organic growth of +6.7% (+EUR166m), in
France (+6.5%, +EUR84m) thanks to higher treatment volumes
(incineration, recycling, and landfill activities), in the United
Kingdom (+14.3%, +EUR61m) with the contribution of the Private
Finance Initiative (PFI) types of contracts in Cornwall and
Northumberland, in the Netherlands (+5.7%, +EUR17m) and in Flanders
thanks to increased volumes sold for Sleco incinerator. In France,
since the beginning of the year, many contracts were won
(Methanisation Montpellier, Symove-Normandy-Picardy, SYCTOM of
Paris, Saint Etienne, etc.) or renewed (Urban community of Lille,
Agglomeration community of Valenciennes, etc.). - The Engineering
business reported a sharp organic decline over the half-year
(-10.7%, -EUR54m) following the delivery of the Perth desalination
plant that had generated significant business in 2006. New
contracts won (Le Havre, Alicante, Doha, Halifax, Barka...) will
contribute to sales from second half-year 2007. - International
activities recorded sustained organic growth (+13.3%, +EUR79m)
originating from contracts in China (+20.3%) in the water business
(Chongqing, Sanya, Tanggu) and in waste management (startup of the
SCIP incinerator in Shanghai), increased sales in Morocco (Lydec,
+6.9%), startup of the Algiers management contract in the 2nd
quarter of 2006 and from Waste Management business in Australia
(+15.9%). REVENUE BREAKDOWN BY GEOGRAPHIC ZONE 89% of the Group's
revenues are generated in Europe and North America with 81%
recorded in Europe. Revenue breakdown by geographic zone is as
follows: (In EUR millions) June 30, % June 30, % 2007/2006 2007
2006 change France 6,011.2 25.3% 5,391.1 24.1% 11.5% Belgium
5,783.8 24.4% 6,022.1 26.9% -4.0% Subtotal France-Belgium 11,794.9
49.7% 11,413.1 51.1% 3.3% Other European Union 6,998.3 29.5%
6,064.7 27.1% 15.4% Other European countries 321.6 1.4% 339.7 1.5%
-5.3% Sub-total Europe 19,114.8 80.6% 17,817.5 79.7% 7.3% North
America 2,075.1 8.7% 1,969.9 8.8% 5.3% Sub-total Europe and North
America 21,189.9 89.3% 19,787.4 88.5% 7.1% Asia, Middle East and
Oceania 1,155.0 4.9% 1,293.8 5.8% -10.7% South America 1,079.7 4.5%
966.9 4.3% 11.7% Africa 304.1 1.3% 305.0 1.4% -0.3% TOTAL 23,728.7
100.0% 22,353.1 100.0% 6.2% (Change in gross values) N.B.: The
change in sales in Asia Middle East was impacted by the disposal of
Hanjin City Gas in 2006. In addition, the 2006 data were adjusted
to include Baymina (Turkey) in the Asia, Middle East and Oceania
zone (previously under "Other countries in Europe"). BREAKDOWN 0F
ORGANIC GROWTH ON A COMPARABLE BASIS Organic growth in revenues is
analyzed on a comparable basis (In EUR millions) June 30, 2006 June
30, 2006 Organic growth Revenues 23.729 22.353 Changes in Group
structure (1) -1.406 -733 Exchange rate fluctuations -192 Natural
gas price variations 96 Comparable basis 22.323 21.524 +3.7% (1)
Accounting respectively for 2007 revenues from newly-consolidated
companies and 2006 revenues from disposals. SUEZ, an international
industrial Group, designs sustainable and innovative solutions for
the management of public utility services as a partner of public
authorities, businesses and individuals. The Group aims to meet
essential needs in electricity, natural gas, energy services, water
and waste management. SUEZ is listed on the Brussels, Luxembourg,
Paris, New York and Zurich stock exchanges and is represented in
the major international indices: CAC 40, BEL 20, DJ STOXX 50, DJ
EURO STOXX 50, Euronext 100, FTSE Eurotop 100, MSCI Europe and ASPI
Eurozone. The Group employs 140,000 people worldwide and reported
revenues of EUR44.3 billion in 2006, 89% of which were generated in
Europe and in North America. Disclaimer This press release contains
certain non-historic data representing forward-looking statements,
particularly with respect to future events, trends, plans or
objectives. These statements are based on management's current
views and assumptions and involve a number of risks and
uncertainties that may lead to a significant difference between
actual results and those suggested either explicitly or implicitly
in these statements (or suggested by past results). Additional
information about these risks and uncertainties appears in
documents filed by SUEZ with the U.S. Securities and Exchange
Commission and the Autorite des Marches Financiers (French
securities regulator). These forward-looking statements are made as
of the date of the present release; SUEZ shall not undertake to
update or revise them, whether in connection with new information,
future events, or for any other reason. This release is also
available on the Internet: http://www.suez.com/ (1). Organic growth
is understood exclusive of the positive impact of gas price. (2).
Excluding the impact of an exceptionally mild winter compared to
that of 2006 on gas and heating sales, the organic growth of
revenues would be approximately 6.9%. Press Contacts: France:
+33-(0)1-40-06-66-51 Belgium: +32-2-510-76-70 Analyst Contacts:
France: +33-(0)1-40-06-66-29 DATASOURCE: SUEZ CONTACT: Press
Contacts: France: +33-(0)1-40-06-66-51, Belgium: +32-2-510-76-70;
Analyst Contacts: France: +33-(0)1-40-06-66-29
Copyright