16/10/2019 – News / Utilities / Environment / SUEZ / Global
SUEZ launches comprehensive plan to become global leader in environmental services
French utilities giant SUEZ has announced a comprehensive strategic plan to position the Group now for the opportunities and the challenges of the next decade.
Entitled ‘Shaping SUEZ 2030’, the plan enhances “value creation for all stakeholders over four years, with material results as soon as 2021” the firm said in a statement, in order to position SUEZ as the global leader in environmental services.
“Given the key trends in our business – the continued growth of the circular economy and its impact on our customers, the emergence of new business models and new competitors, combined with a profound shift of the mindset of citizens towards the climate crisis and a need for concrete action – SUEZ will accelerate its transformation.”
‘Shaping SUEZ 2030’
The new plan is said to leverage on the Group’s core strengths – “innovation, best in class technologies and know-how, exceptional teams and an excellent reputation”, the firm said. “The plan drives selectivity in growth, simplicity in its way of working and a renewed engagement grounded on a passion for the environment.”
The Group will pursue “Selectivity in organic growth, comprising capex discipline and also portfolio rotation for which businesses have been identified accounting for 15-20 per cent of our capital employed.”
It will also create a “leaner organisation, underpinned by a €1bn efficiency plan by 2023.” The aim of this investment will be, in part, to “improve operating profitability as well as finance a step-up in investment in innovation and digitisation.”
Opportunities across segments
“We see opportunities across each of our three business segments – Water, Recycling & Recovery and Environmental Technologies & Solutions,” said Bertrand Camus, SUEZ CEO. “We will grow in international markets, do more with industrial customers and win business based on technology and data-driven environmental solutions, with Europe remaining at the heart of our innovation and sustainability.
“The success of SUEZ 2030 will be based on mobilising the energy and expertise of all our committed employees – to better serve our customers and partners. Our new values - passion for the environment, customer first, respect, team spirit – combined with a culture which revives our winning-spirit, will all support the deep transformation which underpins our strategic plan,” he added.
Tangible change as early as 2021
Change at SUEZ will already be evident by 2021 and the Group’s financial objectives for that year reflecting its “intention to focus going forward on profitability and sustainability,” said the statement.
2021 guidance includes €0.8 recurring EPS, €500 million recurring Free Cash Flow and Net Debt at 2.8–3.0 times EBITDA.
“With Shaping SUEZ 2030, our ambition is to be the global leader in environmental services, making us the preferred choice of our customers, employees and stakeholders, working together to restore and preserve the fundamental elements of the environment: water, air and soil,” said Mr Camus.