Séché Environnement : Activity in the first half of 2013

Regulatory News:

Séché Environnement (Paris:SCHP):

Revenue excluding IFRIC 12: €223.8m, up 8.2% (at constant scope)

• Solid performance of divisions: healthy level of activity bolstered by business developments
• Varying levels of growth between businesses: strong growth of services and recovery

Outlook: very gradual improvement of operating income beginning in 2013

As at June 30, 2013, Séché Environnement generated consolidated revenue up by 12.8% to €239.3m vs. €212.2m in the first half of 2012.

The reported revenue for the period includes a scope effect of -€0.9m resulting partly from the consolidation of Tree¹ (+€1.5m) and Triadis Béziers² (+€0.6m), as well as the change in accounting method for Sogad (-€1.1m) and Gerep³ (-€1.9m). Restated for these scope effects, growth of reported revenue at constant scope stood at 13.4% in the first half of 2013 compared to the same period last year.

Revenues reported also include revenue under IFRIC 12, representing concession investments (€15.5m as of June 30, 2013 versus €4.3m a year earlier). Excluding IFRIC 12 revenue and at constant scope, activity in the first half increased by 8.2%.

This solid performance, achieved amid an unfavorable macroeconomic context, demonstrates the soundness of divisions, which saw a satisfactory level of recurring activities, bolstered by the contribution of business developments in 2012.

The significant revenue growth illustrates the success of the Group's growth strategy alongside trends in its markets and in response to the needs of its clientele, including industrials and communities. It is also due in part to the more rapid development of its service (decontamination) and recovery divisions, compared to the development of some historic divisions.

This varied growth between businesses will result in mix effects once again for 2013. Séché Environnement therefore expects a slight increase in operating income for the current fiscal year.

¹ Fully consolidated company from October 1, 2012
² Fully consolidated company from July 1, 2012
³ Companies consolidated using the equity method from January 1, 2013

Audited consolidated data in €m

Strong performances by divisions but growth varied between businesses

In a listless macroeconomic context during the first half of 2013, the recovery and treatment divisions saw a healthy level of activity, albeit unequal between businesses:

• With revenues of €140.6m, the Hazardous Waste (HW) division posted growth up 7.0% at current scope. Restated for the scope effect associated with consolidation of Gerep using the equity method (-€1.9m) and consolidation of Triadis Béziers (+€0.6m), the division's growth at constant scope rose to +8.1%.

The division is buoyed by strong markets, such as waste management outsourcing for industrials, and solid divisions, such as decontamination (e.g. asbestos removal) and recovery (purification, regeneration, etc.).

PCB activities confirmed their trend toward stabilizing around expected levels, with revenue of €7.7m (vs. €8.6m in the first half of 2012). In contrast, storage businesses fell considerably, accentuated by suspended activity at Hungaropec (Hungary).

Internationally, revenues amounted to €11.9m for the period, slightly down (-1.0%) compared to the first half of 2012, penalized by Hungary and Spain. Note the lack of a significant foreign exchange effect.

• The Non-Hazardous Waste (NHW) division posted revenue of €98.6m, marking a 22.1% increase compared to the same period last year.

Restated for revenue under IFRIC 12 (€15.5m in the first half of 2013 vs. €4.3m 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 (-€1.1m), revenue growth for the division excluding IFRIC 12 revenue and at constant scope amounted to +8.3%.

This solid level of activity reflects recurring contracts with communities, the contribution of business developments carried out in 2012 (Nantes-Alcéa, Scherwiller, etc.) and the strength of the decontamination markets.

This performance was achieved even while the division was impacted in Q1 and part of Q2 by the end of the work that has been ongoing since 2012 on the Strasbourg-Sénerval incinerators. In addition, storage businesses grew in line with trends posted last year.

Outlook

In an economic context with little visibility, Séché Environnement relies on strong industrial markets and recurring contracts with communities.

Séché Environnement continuously updates its services to meet new regulatory requirements and address its clients' sustainable development needs. This leads to sustained growth, but means developing more quickly within services, decontamination and recovery divisions rather than its original businesses, with higher value-added.

These changes to the activity mix drag down operating margins, which reached a low-point in 2012, due to temporary negative factors, as well.

The disappearance of these negative factors will likely contribute directly to a recovery of operating income in 2013; however, given continuing mix effects, this improvement in operating income may be very gradual from 2013 onwards.

Conference call

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

To attend 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/presentation_56.html

The conference record will be audible on July 26, 3013 at:
+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)

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

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 which 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.com under 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.