2005 - 2006 - Pinsent Masons Water Yearbook 2012

FRANCE PART 3 (i): COMPANY ANALYSIS: MAJOR PLAYERS
Suez SA
Suez SA is the second largest water and wastewater company in France, but remains the world’s
leading international player in terms of the number of people served through its water and wastewater
operations. The company has gained many of its contracts via contacts made through the water and
sewerage engineering design and build projects carried out by its Degrémont subsidiary. Degrémont
is currently operating in 40 countries and has worked in 70 countries over the past 30 years. Suez
believes that 1billion people receive drinking water from its treatment plants, including 20% of China’s
urban population. Since 2003, Suez has reversed its expansion strategy, partly in order to ease its
debt burden. Some contracts have been sold and others handed back, especially in developing
economies. Suez is continuing to expand in Europe, North America and China.
Suez, profit and loss account
Y/E 31/12 (€million) 2000 2001 2002 2003 2004
Turnover 34,617 42,359 46,784 39,622 40,739
Operating income 3,778 4,064 3,708 3,205 3,601
Net income 1,919 2,087 -863 -2,165 1,804
Earnings per share (€) 2.01 2.12 -0.87 -2.18 1.81
Dividends per share (€) 0.66 0.71 0.71 0.71 0.80
Société Lyonnaise des Eaux et de l’Eclairage was founded in 1880, making it the third oldest private
sector water company in France. Major contract gains at the outset included Cannes (1880),
Barcelona (1881), Dunkirk (1902) and Casablanca (1914). In turnover terms, the company was
traditionally one of the smaller French multi-utility service and construction companies. This has been
changed by the mergers carried out in 1990 and 1997, the former with Dumez SA of France
(construction) and the latter with Compagnie Financiere Suez SA of Belgium (power and waste
management). The former was to ensure that La Lyonnaise was too large for Bouygues SA to bid for
and the latter to create a multi-utility at least equal to VE, its traditional rival.
Suez - Highlights
1880: Société Lyonnaise des Eaux et de l’Eclairage founded
1914-46: Activities in Morocco, Tunisia, Togo, Congo & New Caledonia
1947: Electricity activities in France nationalised
1958: 300,000 subscribers in France
1972: Acquisition of Degrémont
1980-90: Enters Spain, UK & USA for water provision
1990: Merger with Dumez SA
1991: Acquisition of SDI
1996: Acquisition of Northumbrian Water Plc for F7.4 billion
1996: Buys out Eau et Force SA
1997: Merger with Compagnie Suez
1997: Buys out Degrémont SA
1998: Acquisition of Browning Ferris International
1999: Acquisition of Nalco and Calgon, buy back of Browning Ferris’s stake in SITA
2000: Lyonnaise des Eaux organised into three divisions
2001: S-LDE renamed Suez, LDE renamed Ondeo
2002: Creation of Environmental Division (Ondeo and SITA)
2003: Partial divestment of Northumbrian, other contracts handed back, Calgon sold
2004: Partial divestment of EMOS, Puerto Rico contract handed back, Nalco sold
2005: Rest of Northumbrian sold, contracts closed in Argentina and Bolivia
From 1914 to 1946, Société Lyonnaise des Eaux provided water services in Morocco, Tunisia, Togo,
Congo and New Caledonia. These were nationalised in 1946. In 1972, the company sought to reenter
the international market through the acquisition of Degrémont. Contracts and acquisitions were
gained in Spain, the UK and USA between 1980 and 1990, along with the acquisition of SDI in France
in 1991. By 1993, the company served 40 million customers (25.5 million outside France). Since
then, Suez increased its international activities fourfold, through major contract gains, the 1996
acquisition of Northumbrian Water Plc, the acquisition of Aquas Andinas in Chile and acquisitions in
the USA.
217
Pinsent Masons Water Yearbook 2005 – 2006