Séché Environnement : Activity at September 30, 2013

Regulatory News :

Séché Environnement (Paris:SCHP) :

Continued growth: Revenue excluding IFRIC 12 of €333.8m, up by 8.0% (at constant scope)

• Solid growth strengthened by new contracts
• Activity sustained by strong growth in eco-services

Outlook for 2013 confirmed

As at September 30, 2013, Séché Environnement reported consolidated revenue up by 10.6%, at €353.0m vs. €319.1m a year earlier.

Restated for revenue under IFRIC 12, representing investments made in asset under concessions (€19.3m as at September 30, 2013 vs. €9.0m a year earlier), activity over the first nine months increased by 7.6% at constant scope.

At constant scope1 and excluding IFRIC 12 revenue, revenue growth stood at 8.0% for the first nine months of 2013 compared to the same period a year earlier.

During the first nine months of the year, in a listless macroeconomic context, divisions saw a healthy level of recurring activity, buoyed by the contribution of new contracts signed in 2012 (+€9m).

The third quarter of 2013 unfolded in line with trends posted for the previous two quarters, with equally strong growth (+7.6% excluding IFRIC 12 revenue and at constant scope).

Growth over the first nine months of 2013, sustained by the development of eco-services and platform activities, bolsters the Group's expectations for fiscal year 2013.

Consolidated data in €m

The consolidated revenue reported on September 30, 2012 at constant exchange rates would have reached €318.9m.

Comments on activity in the third quarter of 2013

Consolidated revenue for the third quarter of 2013 amounted to €113.8m, an increase of 6.4% compared to the third quarter of 2012 (€106.9m).

Restated for revenue under IFRIC 12, consolidated activity for the third quarter increased by 7.6% to €110.0m (versus €102.2m last year).

At constant scope and excluding IFRIC 12, the increase in consolidated revenue still amounts to 7.6% for the third quarter of 2013 (negligible scope effects).

In a continuing listless macroeconomic context during this period, the recovery and treatment divisions saw a healthy level of activity, albeit unequal between businesses:

• With revenue of €67.1m, the Hazardous Waste division posted growth of 3.7% at current scope. Restated for the scope effect associated with the consolidation of Gerep using the equity method (-€0.9m), the division's growth at constant scope rose to +4.8%.
  
  Growth was sustained by eco-services (comprehensive services and decontamination) as well as platform activities.
  
  The division was penalized by a weaker performance from storage due to the situation at the Hungaropec site in Hungary, where activity had not yet resumed in the third quarter.
  
  Internationally, revenues amounted to €4.7m for the third quarter, compared to €5.8m last year, a 19.2% decline. Activity was penalized by storage activity in Hungary (Hungaropec) and solvent regeneration activity in Spain (Valls Quimica). Note the lack of a significant foreign exchange effect.
• The Non-Hazardous Waste division posted revenue of €46.7m in the third quarter, marking a 10.6% increase compared to the same period last year.
  
  Restated for revenue under IFRIC 12 (€3.8m in the third quarter of 2013 vs. €4.7m in the same period last year), as well as scope effects related to the consolidation of Tree (+€1.5m) and the change in accounting method for Sogad (-€0.5m), revenue growth for the division excluding IFRIC 12 revenue and at constant scope amounted to +12.1%.
  
  The period saw a favorable base of comparison due to the low level of activity in the third quarter last year.
  
  Whereas the storage businesses saw a moderate 3% decline compared to the same period last year, the division posted satisfactory growth sustained by new contracts signed in 2012 (Nantes-Alcéa and Scherwiller) that accounted for €2.3m as well as by recovery activities and decontamination businesses.

Outlook for 2013 confirmed

In a macroeconomic context with a low visibility, Séché Environnement relies on solid industrial markets and recurring contracts with communities.

Consolidated activity in the fourth quarter will benefit from positive trends in the eco-services (comprehensive services and decontamination) platform and recovery markets.

Note that the NHW division's growth will increase in the fourth quarter due to a more standard base of comparison, to the extent that the Nantes-Alcéa and Scherwiller contracts contributed to fourth-quarter activity in 2012. In terms of scope, remember that Tree was consolidated from October 1, 2012.

The solid level of anticipated activity reinforces the Group's expectations in terms of gradually improving EBITDA in 2013. Indeed, increasing operating margins remains partly dependent on the Strasbourg incinerator's return to full capacity, expected in 2014 after significant modernization work carried out in 2012 and 2013. Therefore, the new heating network, which will contribute to increasing the incinerator's energy efficiency, will start up as planned during the fourth quarter of 2013.

Conference call

A conference call will be held in French today at 6pm (Paris time).

To join the conference, please dial: +33 1 48 50 50 80 + code 44 32 06 46 #

The slideshow for the conference is available at:
http://www.groupe-seche.com/EN/accueil_56.html

A recording of the conference will be available starting on October 25, 2013, by dialing:
+33 1 48 50 50 89 + code 50 33 67 #

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About Séché Environnement

Séché Environnement is one of the leading players in the treatment and storage of all types of non-radioactive industrial and household waste in France, whether from industry or from local communities. Its facilities enable it to offer high-quality comprehensive solutions that incorporate all environmental requirements.

Séché Environnement is the leading independent operator in the country with a unique positioning at the hub of the high value-added waste recovery, treatment and storage markets.

The Group offers integrated specialized services:

• recovery or energy recovery of hazardous and non-hazardous waste;
• treatment (incineration, physical-chemical, etc.);
• storage of ultimate hazardous and non-hazardous waste,

It is actively developing its business on waste management outsourcing markets for its clientele of large communities and major industrial companies.

Séché Environnement has been listed on Eurolist by Euronext since November 27, 1997
Compartment B – ISIN: FR 0000039139 – Bloomberg: SCHP.FP – Reuters: CCHE.PA)

Important notice

This press release may contain information of a provisional nature. This information represents either trends or targets at the date of the press release's publication and may not be considered as results forecasts or as any other type of performance indicators. This information is by nature subject to risks and uncertainties that are difficult to foresee and are usually beyond the Company's control, which may imply that expected results and developments differ significantly from announced trends and targets. These risks notably include those described in the Company’s Registration Document, which is available on its website at (www.groupe-seche.com). This information therefore does not reflect the Company's future performances, which may differ considerably, and no guarantee can be given as to the achievement of these forward-looking figures. The Company makes no commitment on the updating of this information. More comprehensive information on the Company may be obtained in the Documentation section of its website at www.groupe-seche.comunder Regulated Information. This press release does not constitute an offer of shares nor a solicitation in view of an offer of shares in any country whatsoever, including the United States. Distribution of this press release may be subject to the laws and regulations in force in France or abroad. Persons in possession of this press release must be aware of these restrictions and observe them.

1 The reported revenue for the period includes a scope effect of -€0.9m resulting partly from the consolidation of Tree from October 1, 2012 (+€3.0m) and Triadis Béziers from July 2, 2012 (+€0.6m), as well as the change in accounting method for Sogad (-€1.6m) and Gerep (-€2.9m) from January 1, 2013.

Registered office: Les Hêtres – BP 20 – 53811 Changé Cedex