PARIS, February 26 /PRNewswire-FirstCall/ -- The SUEZ Board of
Directors meeting February 25, 2008, chaired by Gerard Mestrallet,
approved the Group's results for financial year 2007. The accounts
will be submitted for approval to the Annual General Shareholders'
Meeting, May 6, 2008. Further improvement in operating performance
and profitability - EBITDA: EUR 7.9 billion (+12.4%) - Current
operating income: EUR 5.2 billion (+15.1%) - Net income Group
share: EUR 3.9 billion (+8.8%) - Net earnings per share: EUR 3.09
(+8.1%) - Dividend per share: EUR 1.36 (+13.3%) - ROCE: 13.7%
(versus 13% in 2006) - Investments: EUR 6.1 billion (EUR 3.9 bn. in
2006) A sound, balanced, sustainable value and job-creating
business model - Sharp acceleration in industrial development: -
Investments were up +60% over 2006 - Developments in electricity,
renewable energy, natural gas, and LNG production - 26,500 new
hires in 2007, of whom more than 10,000 in France and nearly 3,800
in Belgium - Continued dynamic shareholder remuneration policy: -
Proposed +13.3% increase in 2007 ordinary dividend - Growth in
ordinary dividends/share since 2003: +70% - Share buy-back program
(EUR 1.1 billion for the year 2007) - 2008 performance targets: -
EBITDA growth approximately 10%(1) - Accelerated industrial
development - New dividend increase for 2008, continued share
buyback program (EUR 300 million until the end of first semester
2008) - Growth outlook strengthened by the Gaz de France proposed
merger: - Post-merger EBITDA target: EUR 17 billion by 2010(1) -
Merger completion during first-half 2008 Gerard Mestrallet, SUEZ
Chairman and CEO, commented: "By presenting strong results growth
in 2007 that exceeded our targets, SUEZ has demonstrated once again
the strength and effectiveness of its business model and capacity
to create shareholder value. In contrast with the uncertain
business and financial climate, the long-term pattern of growth of
the Group's businesses enables an ambitious development strategy.
This strategy is based on top-flight industrial positions, on
markets offering a high degree of predictability and on the
well-known know-how of its teams. The proposed project with Gaz de
France strengthens SUEZ' capacity to combine sustained growth,
financial discipline, and recurring profitability." 2007 Results
Analysis The Group registered another record-breaking performance
in 2007. Ever expanding markets, abundant commercial successes, and
balanced contributions to net income growth from every business
line provide a clear picture of future Group performance. Revenues:
EUR 47.5 billion, +7% During 2007, SUEZ recorded sustained growth
in business activity, with revenues at EUR 47.5 billion. Organic
revenue growth increased +6.2% over 2006 (+7.2% excluding climate
effect.(2)). Each business line made a significant contribution to
organic growth. Strong growth in current operating income At EUR
5,175 million, current operating income reached historically high
levels, up sharply both in terms of total and organic growth
(+15.1% and +10.5% respectively). This record is due to improved
profitability from electricity activities in Europe, the
performance of North American LNG activities, and expanding
electricity sales in Latin America. The energy services and
environment businesses recorded results with continuous improvement
in operating profit. Income from operating activities was stable at
EUR 5.4 billion, despite lower gains from disposals. In 2006,
disposals generated capital gains of EUR 1.1 billion, versus EUR
0.3 billion for 2007 (in particular, Agbar's sale of Applus,
Electrabel's disposal of shares in the Walloon and Brussels
inter-municipal companies, and the sale of 3% of Electrabel's share
in Elia). Net income Group share: EUR 3.9 billion Net income Group
share came to EUR 3.9 billion (compared with EUR 3.6 billion in
2006), an 8.8% increase, as a result mainly of recognition of
deferred losses (EUR 500 million positive impact) resulting from
the sale of SUEZ-Tractebel to Electrabel. Recurring net income grew
12.3%. Further improvement in Group profitability Return on capital
employed (ROCE) increased to 13.7%, versus 13% at year-end 2006.
Increased liquidity generation, accelerated industrial development,
sound financial structure Net cash flow increased +16.5% to EUR 4
billion. In 2007, the Group made industrial and financial
investments of EUR 6.1 billion, a +60% increase over 2006 totals.
SUEZ applies stringent investment criteria. Among its 2007
investments were several renewable energy projects (acquisitions of
Compagnie du Vent in France, Ventus Energy in Canada, and wind farm
operations in Portugal), traditional energy projects (Germany, the
Netherlands), an increase in its Gas Natural stake, as well as the
squeeze out of Electrabel. At December 31, 2007, net debt stood at
EUR 13.1 billion, including EUR 0.9 billion in connection with the
Agbar tender offer launched jointly with Caixa Criteria. This
operation, begun in 2007 and finalized in early 2008, was a clear
success. The change in debt level reflects accelerated investments,
a dynamic shareholder remuneration policy (EUR 1.9 billion for
dividends and EUR 1.1 billion for the share buyback program), and
strong liquidity generation from operating activities. Outlook The
Group enjoys excellent prospects. The effectiveness of the SUEZ
business strategy is supported by accelerated changes in the
businesses where the Group is present and by Europe's energy price
dynamics. These latter are principally a function of higher fossil
fuel prices, growing environmental concerns, new infrastructure
requirements, and energy supply security considerations. Ambitious
2008 objectives Based on its commercial successes and particularly
promising growth prospects for all its businesses, the Group has
established ambitious financial objectives for 2008: - EBITDA
growth in the +10% range - More investment in 2008 than in 2007 -
Pursuit of share buyback program (EUR 300 million till the end of
first semester 2008) - Maintenance of an "A" credit rating -
Another dividend increase for 2008 and a policy of higher dividend
payouts than 50% of recurring net income. Acceleration in
industrial investments The Group's objective for 2008 is to exceed
level of investment in 2007. These investments will respect the
Group's stringent financial discipline (maintain an "A" rating for
medium-term debt and observe strict in-house investment criteria)
and will focus principally on renewable and conventional
electricity generating capacity, mainly in Europe, Latin America,
and North America. Continued dynamic shareholder remuneration
policy Given 2007 results and a favorable outlook for each of the
Group's businesses, the Board of Directors decided at its February
25, 2008 meeting to recommend to the May 6, 2008 Annual General
Shareholders' Meeting an ordinary dividend of EUR 1.36 for 2007,
representing an increase of +13.3% over the dividend paid for 2006.
Continuous dividend increases since 2003 (+70%) reflect the Group's
dynamic shareholder remuneration program, in step with its profit
trend, offering a return on investment that is competitive with the
entire sector. Since 2007 this dividend payout policy has been
matched with share buyback programs that will be continued in 2008.
5-year recruitment program to hire 110,000 new employees The Group
intends to hire 110,000 new employees between 2008 and 2012,
including 52,000 in France and 10,000 in Belgium. This active
hiring policy responds to trends in SUEZ businesses, to anticipated
structural changes in operations' requirements, and the necessity
to match Group resources to customer needs. This comprehensive
recruitment program reflects the Group's confidence in a future
where it will hire, invest, and share the fruits of its performance
with employees. The program positions SUEZ as one of Europe's
leading recruiters. A future bolstered by the Gaz de France merger
The Group's promising outlook is fortified by its Gaz de France
merger project. GDF SUEZ will be a leading global player in energy
and public utilities industry leader. Throughout 2007, SUEZ and Gaz
de France continued their active development efforts. Even before
considering the merger's operational synergies, their 2007
performances bear out the profitability of their respective
business activities. Already, a joint GDF SUEZ integration team is
at work to ensure the new Group will be operational from the first
day of the merger, scheduled for first-half 2008. GDF SUEZ has set
performance targets to match its ambitions: - EUR 17 billion in
EBITDA by 2010(1) - 10% to 15% average annual growth in dividends
per share for dividends paid between 2007(3) and 2010 - Strong "A"
credit rating. Results for 2007 will be transmitted live Tuesday,
February 26, 2008 at 8:30 a.m. (Paris time) and thereafter will be
available on the SUEZ Website: http://www.suez.com/ SUEZ, an
international industrial and services Group, designs sustainable
and innovative solutions in the management of public utilities as a
partner of public authorities, businesses and individuals. The
Group aims to answer essential needs in electricity, natural gas,
energy services, water and waste management. SUEZ is listed on the
Brussels, Luxembourg, Paris 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 149,000 people
worldwide and achieved revenues of EUR47.5 billion in 2007, 89% of
which were generated in Europe and in North America. Important
Information This document does not constitute an offer to purchase
or exchange or the solicitation of an offer to sell or exchange any
securities of SUEZ or Gaz de France, nor shall there be any
purchase, sale or exchange of securities in any jurisdiction
(including the United States, Germany, Italy and Japan) in which
such offer, solicitation, purchase or sale or exchange would be
unlawful prior to the registration or qualification under the laws
of such jurisdiction. The distribution of this communication may,
in some countries, be restricted by law or regulation. Accordingly,
persons who come into possession of this document should inform
themselves of and observe these restrictions. To the fullest extent
permitted by applicable law, SUEZ disclaims any responsibility or
liability for the violation of such restrictions by any person. The
Gaz de France ordinary shares which would be issued in connection
with the proposed business combination set out in this document to
holders of SUEZ ordinary shares (including SUEZ ordinary shares
represented by SUEZ American Depositary Shares) may not be offered
or sold in the United States except pursuant to an effective
registration statement under the United States Securities Act of
1933, as amended, or pursuant to a valid exemption from
registration. In connection with the proposed business combination,
and as far as necessary, the required information documents will be
filed with the Autorite des marches financiers ("AMF") and, if
applicable, the United States Securities and Exchange Commission
("SEC"). Forward-looking statements This document contains
forward-looking information and statements. These statements
include financial projections, synergies, cost-savings and
estimates and their underlying assumptions, statements regarding
plans, objectives, savings, expectations and benefits from the
transaction and expectations with respect to future operations,
products and services, and statements regarding future performance.
Although the managements of SUEZ believes that the expectations
reflected in such forward-looking statements are reasonable,
investors and holders of SUEZ ordinary shares are cautioned that
forward-looking information and statements are not guarantees of
future performances and are subject to various risks and
uncertainties, many of which are difficult to predict and generally
beyond the control of SUEZ, that could cause actual results,
developments, synergies, savings and benefits from the transaction
to differ materially from those expressed in, or implied or
projected by, the forward-looking information and statements. These
risks and uncertainties include those discussed or identified in
the public filings made by SUEZ with the AMF, including those
listed under "Facteurs de Risques" in the Document de Reference
filed by SUEZ on April 4, 2007 (under no: D.07-0272). Except as
required by applicable law, SUEZ does not undertake any obligation
to update any forward-looking information or statements. This press
release is also available on the Internet: http://www.suez.com/
2007 Highlights SUEZ Energy Europe - Electrabel acquisition of
several wind farms in Portugal (at Mourisca, Fafe, and Nave) with
total capacity of 100 MW. - Acquisition of Compagnie du Vent
(France). - Decision to invest in 5 power plants in the Netherlands
and Germany. - Confirmation by IAEA's OSART mission of the Tihange
power plant's excellent safety level. - Joint development by Volvo
and Electrabel of first CO2-free emissions plant. - Agreement
between Honda and Electrabel for installation of close to 70,000
square feet of photovoltaic cells at the Honda site at Alost. -
Development of 2 cogeneration power plants in partnership with
Lanxess and Degussa. - Final agreement on cable activity disposal.
- Further increase of Distrigas sales outside Belgium (France,
Netherlands, Germany) - 1st LNG delivery of Qatar in Zeebrugge
within the framework of the long term contract (20 years) signed
between the Qatari producer RasGas II and Distrigas - 1,000th LNG
load by Distrigas in Zeebrugge SUEZ Energy International -
Acquisition of a 51% equity stake in Bahia Las Minas, Panama's
largest thermoelectric power generation company, with total
installed capacity of 280 MW; conversion of a 100 MW fuel oil unit
to coal with an extension of 83 MW under construction. - Start of
construction of the Sao Salvador hydroelectric power plant (241 MW)
and Estreito (1,086 MW) in Brazil. - Awards for the financing of
the Barka 2-Rusail projects in Oman, Hidd in Bahrain, and Marafiq
in Saudi Arabia for a total of USD 5.5 billion. - Acquisition of
Ventus Energy, the Canadian wind farm development company with 29
MW of power in operation, 178 MW under construction, and 2,000 MW
in development. - Signing of contract to provide the City of Dallas
150 MW of electricity (equivalent to 90% of the municipality's
electricity consumption), nearly half of which from renewable
energy sources. - Contract to construct a 5.5 million m3 capacity
LNG regasification terminal at Mejillones in northern Chile. -
Contract to construct 2 coal-fired 150 MW power plants in Chile to
supply mining customers (Codelco and Antofagasta Minerais). -
Construction of a new 193 MW gas turbine power plant in Peru. -
Acquisition in the Philippines of a 600 MW coal-fired electrical
power plant at Calaca. - Contract with the Electricity Generating
Authority of Thailand (EGAT) to construct a 660 MW coal-fired
electrical power plant at Map Ta Phut industrial estate. -
Acquisition of a 176 MW hydroelectric power plant at Ponte de Pedra
(Brazil). SUEZ Energy Services - Acquisition of full ownership in
Crespo y Blasco. - 3 SUEZ Energy Services subsidiaries (Axima,
Endel, and Ineo) join Areva to build the "Georges Besse II" uranium
enrichment plant. - Contract to design and operate centralized
heating and hot water systems for the "Quartier des Temps
Durables," France's first eco-district heated with zero CO2
emissions, Limeil-Brevannes (France). - Contract for facilities
management services (Elyo, Ondeo IS) for the chemical platform at
Villers-Saint-Paul (France). - Renewal of Endel's contract for the
Guyanese Space Center. - Contract (Ineo, Axima) for air
conditioning and electrical installations for the new Aeroports de
Paris S3 terminal. - Contract (Fabricom AS) to develop Statoil's
Snorre oil platform in the North Sea. - Contract for engineering
and construction for Total of 21 offshore oil production platforms
in the North Sea, off the Netherlands coast. - Axima Services
operations and maintenance contract for the Montreal airport
baggage handling system. SUEZ Environment - Successful tender offer
for Agbar, in partnership with La Caixa and Hisusa. - Renewal of a
waste collection and wastewater treatment contract with the City of
Indianapolis (9 years, EUR 178 million). - Contract for the design,
construction, and operation of a wastewater reuse plant, at Dubai
(USD 800 million contract). - Degremont awarded contract for the
construction of a new wastewater treatment plant at Le Havre (EUR
76 million). - Degremont signs two contracts in India for the
design, construction, and operation of a drinking water plant in
Mumbai (Bombay) and for a wastewater recycling plant at New Delhi
(EUR 86 million). - Degremont signs two contracts for a Cairo
wastewater treatment plant (EUR 55 million). - Management contract
to operate the wastewater collection system involving 4 treatment
plants for the City of Grasse (20 years, EUR 124 million). -
Degremont and Agbar sign a contract to operate a wastewater
treatment plant at Farfana, Chile (10 years, EUR 150 million) -
Agbar signs a contract to operate water and wastewater services for
the City of Oran (5.5 years, EUR 30 million). - Acquisition of 33%
of Aguas de Valencia, company responsible for managing the Valencia
region water system (EUR 135 million). - Contract with the City of
Nimes (France) for urban cleaning and household waste collection (7
years, EUR 30 million). - Contract for operation of the Montpellier
biomethanization plant (10 years, EUR 120 million). - Contract for
the design, construction, and operation of a household waste
mechanical-biological sorting facility in the Ales region (Gard)
(22 years, EUR 123 million). - Acquisition of Easco (UK),
specialized in metals recycling (2006 revenues of EUR110 million).
- Design, construction, and operation of a bio-mechanical waste
treatment plant at Mindarie, Australia (20 years, EUR 72 million).
--------------------------------- (1). Based on the GDF SUEZ EBITDA
definition. (2). Estimated impact of year to year temperature
differences. (3). Based on the Gaz de France dividend paid in 2007
for 2006 (EUR 1.10 per share); SUEZ shareholders will also receive
a SUEZ Environment dividend. Summary balance sheet at 12/31/07 in
EURm ASSETS 12/31/06 12/31/07 LIABILITIES 12/31/06 12/31/07 NON
CURRENT Equity, ASSETS 46,806 51,395 group share 19,504 22,193
Minority interests 3,060 2,668 CURRENT ASSETS 26,629 27,732 TOTAL
EQUITY 22,564 24,861 o/w financial assets at fair value through
income 833 1,320 Provisions 9,786 9,555 o/w cash & equivalents
7,946 6,720 Financial debt 19,679 21,656 Other liabilities 21,406
23,055 TOTAL TOTAL ASSETS 73,435 79,127 LIABILITIES 73,435 79,127
Summary income statement in EURm 2006 2007 Revenues 44,289 47,475
Depreciation, amortization & provisions (1,685) (1,913) Current
operating income 4,497 5,175 Income from operating activities 5,368
5,408 Financial income (loss) (731) (722) Income tax (815) (528)
Share in net income of associates 373 458 Minority interests (588)
(693) Net result, group share 3,606 3,924 In EURm 12/31/06 12/31/07
Gross cash flow before financial loss and income tax 6,383 7,267
Income tax paid (excl. income tax paid on disposals) (985) (1,006)
Change in operating working capital (226) (244) CASH FLOW FROM
OPERATING ACTIVITIES 5,172 6,017 Net tangible and intangible
investments (2,186) (2,999) Financial investments (1,404) (2,870)
Disposals and other investment flows 3,224 1,188 CASH FLOW FROM
INVESTMENT ACTIVITIES (366) (4,681) Dividends paid (1,721) (1,969)
Balance of reimbursement of debt / new debt (5,206) 900 Interests
paid on financial activities (755) (958) Capital increase 162 833
Other cash flows 582 (1,324) CASH FLOW FROM FINANCIAL ACTIVITIES
(6,938) (2,518) Impact of currency, accounting practices and other
(296) (44) CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE PERIOD
10,374 7,946 TOTAL CASH FLOWS FOR THE PERIOD (2,428) (1,226) CASH
AND CASH EQUIVALENTS AT THE END OF THE PERIOD 7,946 6,720 Press
contacts: +331-4006-6651 / 6668; Financial analyst contacts:
+331-4006-6531 / 6629; Belgium: +32-2-510-76-70. DATASOURCE: SUEZ
CONTACT: Press contacts: +331-4006-6651 / 6668; Financial analyst
contacts: +331-4006-6531 / 6629; Belgium: +32-2-510-76-70.
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