Saur delivers strong profitable growth across all segments in 2024

Saur reported revenues of €2,317 million in 2024, up +10.8%. Organic growth was 7.8%, reflecting price increase in Water services, sustained organic growth in Industrial water solutions and a successful commercial development across all Business Units. Acquisitions had a net positive impact on growth, due to the integration of Ekos Poznań in Poland as well as the acquisition of Natural Systems Utilities in the USA and CTGA in Portugal.

EBITDA* came in at €274 million in 2024, up +23.3%. Profitability growth was driven by all business units coupled with a margin increase of +1.2 pts, notably driven by Water services through commercial development, price increase and improving productivity, despite lower volumes in France. Industrial water solutions benefitted from a strong commercial momentum.

Operating result* was positive, at €19 million in 2024 (compared to €(9) million last year), as a result of a strong EBITDA* performance combined with a significant reduction in exceptional costs, despite higher depreciation & amortization expenses.

Financial result* was €(32) million in 2024. The improvement compared to 2023 is mainly explained by the positive impact of unrealized gains linked to the marked-to-market of the Virtual PPA in Iberia which offset the increase in financial interest following the new bond issued in 2024.

Net result was €(19) million in 2024 (compared to €(55) million last year).

Free cash flow breaking even at €(3) million (compared to €(76) million last year). Funds from operations increased by €30 million compared to last year mainly driven by EBITDA* growth and strict monitoring of exceptional costs. Change in working capital significantly improved by €48 million compared to the year prior, mainly driven by a successful Group led initiative. Organic capital expenditures stable compared to the year prior.

The Chief Executive Officer has decided to not recommend to the General assembly the payment of a dividend for the year ended December 31st, 2024.

Water services – France

Water services – France revenue increased by +4.1% to €1,399 million in 2024. Growth dynamic was positive, underpinned by tariff indexation, works development and commercial momentum, despite lower volumes and unfavorable weather.

EBITDA* came in at €132 million in 2024, up by 11.4% compared to the same period last year. EBITDA margin improved despite lower volumes thanks to commercial development and productivity gains. Inflationary impacts on costs have been offset by tariff increase.

Water services – International

Water services – International delivered revenues of €374 million in 2024. Revenues increased by 23.2%, driven by volumes, price increase, works development and commercial activity. The acquisitions of Ekos Poznań in Poland and CTGA in Portugal also had a positive impact on the topline (+6.4pts).

EBITDA* came in at €66 million in 2024. This represents an increase of +63.1% compared to 2023. EBITDA margin significantly improved by 4.3pts, thanks to cost reduction especially on energy, and price increase, notably following successful negotiations with Las Palmas municipality.

Industrial water solutions

Industrial water solutions posted a growth of +22.5%, of which +12.8% organic, reaching €545 million revenues in 2024. This success was driven across all business lines and by the strategic acquisition of Natural Systems Utilities, which bolstered market presence in the United States.

EBITDA* increased by +20.2% in 2024 to reach €76 million, with sustainable margin level at 14.0%.

Net debt was €1,398 million, up +€157 million compared to December 31st, 2023.

At December 31st, 2024, the Group had cash and cash equivalents of €671 million (including treasury liabilities and €53 million NEU commercial paper) and total liquidity of €821 million.

Group leverage decreased by (0.5)pts to reach 4.9x as of December 31st, 2024 (1).

In October 2024, the Group successfully refinanced its revolving credit facility for an amount of €400 million with a final maturity of five years. Additionally, the Group issued a Blue Bond with a nominal amount of €550 million and a five-year maturity to refinance the bond maturing in September 2025.

As part of this transaction, a partial buyback of the €450 million tranche was executed for an amount of €208 million.

In 2024, Saur’s overall CSR performance continues to be recognized:

• EcoVadis Gold Medal (77/100): recognized leadership in CSR performance
• 99/100 on Gender Equality Index for the second consecutive year

In 2024, Saur strengthened its commitment to climate change by taking actions both to reduce greenhouse gas emissions and to adapt to new climatic conditions. The methodology for calculating the carbon footprint has been completely overhauled for all scopes 1, 2 and 3, making it possible to update the data more accurately and improve the reliability of the results. For scope 3 in particular, Saur has relied as much as possible on physical rather than monetary flows.

At the same time, Saur has launched a first wave of analysis of the sites it operates in terms of their exposure and vulnerability to climate hazards in order to identify risks and adapt infrastructures accordingly.

As at December 2024, the Group considered that based on the current trajectory it will not be able to meet the objectives set for 2025 in our April 2027 and September 2028 sustainability linked bonds.

FY2025 outlook:

• Revenue: Robust organic growth
• EBITDA: Operational excellence and costs focus
• Continued deleveraging

We are providing this information voluntarily, and the material contained in this announcement is presented solely for information purposes and is not to be: (i) construed as providing investment advice; (ii) relied upon or the form the basis for any investment decisions; or (iii) regarded as a recommendation or an offer to sell, or a solicitation of any offer to buy any securities or other form of financial asset.

This presentation contains forward-looking statements which are based on current plans and forecasts of Saur’s management. Such forward-looking statements are by their nature subject to a number of important risk and uncertainty factors that could cause actual results to differ in a variety of substantial and very material respects from the plans, objectives and expectations expressed in such forwardlooking statements.

No representation or warranty, express or implied, is provided in relation to the fairness, accuracy, correctness, completeness or reliability of the information, opinions or conclusions expressed therein.

These such forward-looking statements speak only as of the date on which they are made, and Saur undertakes no obligation to update or revise any of them, whether as a result of new information, future events or otherwise (and has no notification obligations to any person in this regard). It should not be regarded by recipients as a substitute for the exercise of their own judgment. Neither Saur, nor any of its directors, officers, employees, affiliates, direct or indirect shareholders, advisors or agents accepts any liability for any direct, indirect, consequential or other loss or damage suffered by any person as a result of relying on all or any part of this announcement and any and all liability is expressly disclaimed.