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Suez raises the ambition of its 2030 plan to better reaffirm its independence



           


The management of Suez wants to build shareholder loyalty in the face of the attempted takeover orchestrated by Veolia (photo: Suez).
The management of Suez wants to build shareholder loyalty in the face of the attempted takeover orchestrated by Veolia (photo: Suez).
FRANCE. On Tuesday 22 September 2020, Suez unveiled the acceleration of its 2030 plan and its determination to double shareholder value by 2022. "The tangible results of the execution of the refocusing strategy announced in 2019, obtained from 2020 on multiple sites, allow us to bring forward the timetable. With Suez 2030, our group is in a position to seize the many growth opportunities in our businesses," says a press release. The programme is now targeting annual savings of €1.2 billion by 2023, whereas €900 million will already be achieved by 2022. In addition, the company is committed to "increasing employee shareholding over the next two years".

Suez thus intends to respond to Veolia's hostile takeover bid by insisting on its "priorities to invest in value-added services to foster Suez's growth in order to be the independent, agile and dedicated leader in environmental services", as its CEO Bertrand Camus states in a press release. It provides for growth investments of at least €4.5 billion from June 2020 to December 2022, with a reinforcement in priority and high-growth businesses such as water, plastic recycling, hazardous waste, digital technologies and solutions, as well as selective international development.

"The Board of Directors has reviewed with satisfaction the performance achieved in the execution of the Suez 2030 transformation plan. It supports management in the amplification of this plan, which will significantly increase the value creation of the independent Suez Group for all its stakeholders," said Philippe Varin, Chairman of the Board of Directors of the group specialising in environmental services.

The main target of these messages: shareholders so that they do not give in to the competitor Veolia. They are promised "a unique potential for value creation". Suez evokes a recurring net profit per share of between €0.75 and €0.80 in 2021 and between €0.90 and €1 in 2022.

Suez (turnover of €18.01 billion in 2019) expects a turnover of more than €16 billion in 2021 and more than €17 billion in 2022. Its EBIT (earnings before tax and interest) is estimated at around €1.35 to €1.50 billion in 2021 and €1.7 billion in 2022. It was €1.40 billion in 2019.


Frédéric Dubessy


Tuesday, September 22nd 2020



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