Accelerating GDF SUEZ transformation

PR Newswire/Les Echos/ 

                                                              December 5 2012
                     Accelerating GDF SUEZ transformation

* Accelerating development in fast growing countries (LNG, independent power
  production) and in the key points : energy efficiency and renewable
* Group structure simplified and strongly refocused on energy businesses
* Strengthening presence in promising segments: bioenergy, City of Tomorrow,
  electricity storage, smart energy, non-conventional gas
* Adjustment of relationship with Suez Environnement following the decision not
  to renew the shareholders' agreement
     Perform 2015 action plan

* Ambitious action plan with a EUR3.5bn gross P&L contribution and a EUR1bn
  capex and working capital requirement optimization, adapted to current 
  difficult environment in Europe
* Reducing debt by one third in two years, with a target of around EUR30bn by
  the end of 2014
* Cutting annual capital expenditures by 20% in 2013 and 2014, to EUR7-8bn 
  per annum 

* 2012 financial targets confirmed
* Challenging 2013-2014 outlook in Europe
* Sustained international growth
* Rebound expected in 2015
* Group's attractive dividend policy confirmed

Throughout 2012, GDF SUEZ has accelerated its transformation in a context of
deep and accelerated changes within energy markets. Demand crisis in Europe,
driven by the macroeconomic slowdown, structural changes in the US market offer
with non-conventional gas and strong demand growth in fast growing markets have
led to a new global energy landscape.

2012 was also marked by stricter regulations and higher tax on the Group's
historic markets and increased power production overcapacity. In Belgium, the
increase in the nuclear contribution and higher transmission grid fees impacted
the results for electricity production while sales in the retail segment were
affected by the temporary freeze on gas and electricity prices. In France,
partial price increases agreed by the government on July 1st and October 1st
have not offset the rise in supply costs. More recently, new fiscal measures
have also had a detrimental effect on the Group's earnings.

Group structure simplified and strongly refocused on energy businesses

Since 2008, GDF SUEZ has built exceptional positions in each of its businesses,
as well as a balanced and modern production mix designed to address upcoming
challenges: Gas, LNG, renewables, a mix of complementary businesses oriented to
the future - secured sourcing, generation, energy services / energy efficiency -
and unique geographic mix with a balanced European presence and a leadership in
fast growing markets: Brazil, Chile, Singapore, Middle East, Peru, Thailand or

In 2012, the Group has carried out several structural transactions positioning
GDF SUEZ as a global leader in the energy market:

- The acquisition of International Power's minority interests, completed in
  mid-2012, has accelerated the Group's development in fast growing markets, in
  which the Group will allocate 40% to 50% of its growth capex in the medium-
  term vs. 30% today. This strategic transaction also contributes to 
  simplifying the Group structure.

- At the beginning of 2012, the Group created the Energy Europe business line
  in order to address new challenges in European markets which require more
  integration and optimization. It has significantly improved the Group's 
  ability to implement synergies in the region. The Group is reaffirming its 
  intention to remain a major energy player in Europe and to participate in 
  Europe's energy transition in the long run.

The shareholders' agreement in Suez Environnement is due to expire in July 2013.
In agreement with the other members, GDF SUEZ announced today its intention not
to renew it. This step will represent a major change for Suez Environnement.
Over the past five years, the shareholders' agreement allowed to list Suez
Environnement, support its development, build its strong identity and become a
global leader in the environment markets. In particular, the acquisition of
Agbar was a key milestone for the development of Suez Environnement.

GDF SUEZ will continue to support the development strategy implemented by Suez
Environnement's management. The Group reaffirms its willingness to remain both a
long term strategic partner and the reference shareholder of Suez Environnement.
GDF SUEZ has no intention to reduce its stake in Suez Environnement.

GDF SUEZ reaffirms that various industrial cooperations are useful in order to
satisfy efficiently the client needs of both Groups. This industrial cooperation
has already proved its efficiency, for instance in the Middle East where sea
water desalination requires a high level of power, or on other topics such as
City of Tomorrow or bioenergy, which are key issues of the urban planning for
the coming years. GDF SUEZ and Suez Environnement intend to maintain industrial,
commercial and services cooperation through agreements that will be signed by
both Groups.

GDF SUEZ will switch from a full consolidation of Suez Environnement to an
equity consolidation.

An ambitious action plan, Perform 2015, adapted to the current challenging
environment in Europe

In a context of global economic crisis, of decline in commodity prices and of
regulatory, fiscal and competitive increased pressure in Europe, GDF SUEZ has
implemented a pluriannual action plan for 2012- 2015, allowing both to protect
and to increase value creation while reducing significantly net debt, with a
target of around EUR30bn by the end of 2014.

The main priorities of the plan are the following:

From the second half of 2012, a performance plan was set up within all business
lines in order to reduce costs and implement longer term actions which will
materialize from January 1st 2013 onwards.

- Improving operational efficiency by cutting costs, increasing revenues and
  systematically implementing better operating practices and synergies. These
  actions are expected to generate a gross P&L contribution of EUR3.5bn per year
  as of 2015, and a further gross contribution of EUR1bn thanks to capex and
  working capital optimization.

- Reinforcing financial flexibility through a decrease in capex, which will be
  refocused on fast growing energy markets where GDF SUEZ benefits from decisive
  competitive advantages. In these markets, projects under construction will 
  allow the Group to increase its installed capacity by more than 20% and the
  redeployment of LNG activities to Asia will contribute to double LNG sales by
  2020. In Europe, Group's growth will be supported by both the development of
  energy efficiency activities, targeting a 40% increase in revenue by 2017, and
  the commissioning of additional capacity of 2,000 MW of renewables by 2017.
- Enhancing our asset optimization program to EUR11bn(1) over 2013-2014. Scope
  changes (asset disposal and deconsolidation) will be mainly carried out in
  mature markets, in line with the Group's strategic objectives.
This action plan will also be accompanied by an adapted recruitment policy based
on two priorities, a focus on operating needs linked to business and
geographical market dynamics, and a significant improvement of internal
mobility. Over the first nine months in 2012, the Group hired 25,700 people
worldwide, allowed internal mobility of 6,500 employees and the natural turnover
represented 5,600 departures.

The action plan also encompasses an enhancement of projects in promising fields,
such as bioenergy, City of Tomorrow, electricity storage, smart energy or
non-conventional gas.

2012 financial targets confirmed, challenging 2013-2014 outlook in Europe,
further impacted by asset optimization program, a net debt reduction by
one-third in two years and a rebound expected in 2015(2)

In this context:

- The Group confirms its financial targets for 2012, in particular its net
  recurring income group share and its net debt/ EBITDA ratio, assuming average
  weather conditions and stable regulation.

(1) Net debt impact.
(2) Previous 2015 targets are no longer relevant due to scope and environment

For 2013, financial targets(3) are the following:

- Net recurring income group share(4) between EUR3.1bn and EUR3.5bn, assuming
  average weather conditions and stable regulation. This target is based on an
  estimated EBITDA between EUR13bn and EUR14bn, pro- forma of the equity-
  accounted consolidation of Suez Environnement (which should contribute 
  EUR2.5bn to 2012 group EBITDA) and net of the impact of the asset portfolio 
  optimization program (0.7 billion euros).

- Gross capex: between EUR7bn and EUR8bn.

- Net debt to EBITDA below or equal to 2.5x and "A" credit rating maintained.

In 2014, net recuring income group share is expected to be in the same range as
in 2013.

In 2015, the Group will benefit from the development of its strongholds in fast
growing markets that already contribute 30%(5) of its net income today, and from
the improved profitability of all its merchant assets in mature markets.

In this context, the Board of Directors reaffirms its confidence and its
commitment to the Group's dividend policy. It will be proposed to maintain a
dividend of 1.5 euro per share for the 2012 fiscal year at the General Assembly
due to take place on April 23rd, 2013.

Gérard Mestrallet, Chairman and CEO of GDF SUEZ reaffirms the strength of the
Group assets: " Thanks to its balanced business model, GDF SUEZ was able to
confirm all its industrial and financial targets for 2012. Faced with a
challenging energy outlook in 2013-2014 in Europe, GDF SUEZ has decided to
accelerate its transformation, simplify its Group structure, reduce its cost
base, its capex and its debt. In the meantime, the Group will concentrate its
development towards activities such as LNG and independent power production in
fast growing markets, and towards energy efficiency and renewable energy in its
European and International base. The Group is confident in the relevance of its
strategy and in the strength of its reaction to the crisis."

A live webcast of the event and the presentations used in this conference will
be available on GDF SUEZ website: 


* 28 February 2013 - 2012 Full-year results publication

* 23 April 2013 - Annual General Meeting of GDF SUEZ shareholders - 2013 First
  quarter results publication

* 1 August 2013 - 2013 First half results publication

(3) Targets assume average weather conditions, full pass through of supply costs
in French regulated gas tariffs, Doel 3 and Tihange 2 restart in February 2013,
no other significant regulatory and macro economic changes, pro-forma of the
equity-accounted consolidation of Suez Environnement as of 1st January 2013,
commodity prices assumptions based on market conditions as of end of August 2012
for the non-hedged part of the production, and average foreign exchange rates as
follow for 2013: EUR/$1.27, EUR/BRL 2.42.
(4) Excluding restructuring costs, MtM, impairment, disposals, other non
recurring items and nuclear contribution in Belgium.
(5) 2011 pro forma International Power.


This communication contains forward-looking information and statements. These
statements include financial projections, synergies, cost-savings and estimates,
statements regarding plans, objectives, savings, expectations and benefits from
the transactions and expectations with respect to future operations, products
and services, and statements regarding future performance. Although the
management of GDF SUEZ believes that the expectations reflected in such
forward-looking statements are reasonable, investors and holders of GDF SUEZ
securities are cautioned that forward-looking information and statements are not
guarantees of future performances and are subject to various risks and
uncertainties, many of which are difficult to predict and generally beyond the
control of GDF SUEZ, that could cause actual results, developments, synergies,
savings and benefits to differ materially from those expressed in, or implied or
projected by, the forward-looking information and statements. These risks and
uncertainties include those discussed or identified in the public filings made
by GDF SUEZ with the Autorité des marchés financiers (AMF), including those
listed under "Facteurs de Risque" (Risk factors) section in the Document de
Référence filed by GDF SUEZ with the AMF on 23 March 2012 (under no:
D.12-0197). Investors and holders of GDF SUEZ securities should consider that
the occurrence of some or all of these risks may have a material adverse effect


GDF SUEZ develops its businesses around a model based on responsible growth to
take up today's major energy and environmental challenges: meeting energy needs,
ensuring the security of supply, combating climate change and optimizing the use
of resources. The Group provides highly efficient and innovative solutions to
individuals, cities and businesses by relying on diversified gas-supply sources,
flexible and low-emission power generation as well as unique expertise in four
key sectors: liquefied natural gas, energy efficiency services, independent
power production and environmental services. GDF SUEZ employs 218,900 people
worldwide and achieved revenues of EUR90.7 billion in 2011. The Group is listed
on the Brussels, Luxembourg and Paris stock exchanges and is represented in the
main international indices: CAC 40, BEL 20, DJ Stoxx 50, DJ Euro Stoxx 50,
Euronext 100, FTSE Eurotop 100, MSCI Europe, ASPI Eurozone and ECPI Ethical
Index EMU.

Press contact:                      Investor Relations contact:

Tel France: +33 (0)1 44 22 24 35    Tel: +33 (0)1 44 22 66 29
Tel Belgium: +32 2 510 76 70        E-Mail: 


Breakdown by main effect (in EURbn) 
~17      ~(2.5)      ~14.5    ~(0.7)   ~13.8     ~(0.2)       ~0.8 
2012      SUEZ        2012     Scope    2012    2012 non  Commissioning 
  Environnement  post-SE          proforma  recurring 
~(0.3)          ~(0.6)        ~0.6         ~(0.3)          13-14 
Volume & price  Volume & price   Action  Fixed cost drift in   2013 
E&P/GNL        Gas/Power       Plan    energy businesses 
Breakdown by business line (in EURbn) 
~17      ~(2.5)      ~14.5    ~(0.7)   ~13.8    ~(0.6) 
2012      SUEZ        2012     Scope    2012    ENERGY 
  Environnement  post-SE          proforma  EUROPE 
~(0.1)      ~0.7        (0.2)          ~0.2         ~0       13-14 
Mature  Fast growing  GLOBAL GAZ  INFRASTRUCTURES  ENERGY     2013
markets   markets       & LNG                     SERVICES
A EUR3.1-3.5bn guidance on 2013 NRIgs 
In EURbn                                                    2013
EBITDA                                                     13-14
Depreciation, amortization and provisions & others        ~(6.0)
Current Operating Income                                     7-8
Financial result (recurring)                           (2.0-2.2)
Income tax (recurring)                                 (1.8-2.0)
Share in net income of associates (recurring)               ~0.5
Non controlling interests (recurring)                  (0.6-0.8)
Net recurring income group share                         3.1-3.5 
INVESTOR DAY - December 6, 2012 
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