The SUEZ Board of Directors meeting February 25, 2008, chaired by Gérard Mestrallet, approved the Group’s results for financial year 2007. The accounts will be submitted for approval to the Annual General Shareholders’ Meeting, May 6, 2008.
Further improvement in operating performance and profitability
- EBITDA: EUR 7.9 billion (+12.4%)
- Current operating income: EUR 5.2 billion (+15.1%)
- Net income Group share: EUR 3.9 billion (+8.8%)
- Net earnings per share: EUR 3.09 (+8.1%)
- Dividend per share: EUR 1.36 (+13.3%)
- ROCE: 13.7% (versus 13% in 2006)
- Investments: EUR 6.1 billion (€ 3.9 bn. in 2006)

A sound, balanced, sustainable value and job-creating business model
Sharp acceleration in industrial development:
- Investments were up +60% over 2006
- Developments in electricity, renewable energy, natural gas, and LNG production
- 26,500 new hires in 2007, of whom more than 10,000 in France and nearly 3,800 in Belgium

Continued dynamic shareholder remuneration policy:
- Proposed +13.3% increase in 2007 ordinary dividend
- Growth in ordinary dividends/share since 2003: +70%
- Share buy-back program (EUR 1.1 billion for the year 2007)

2008 performance targets:
- EBITDA growth approximately 10%1
- Accelerated industrial development
- New dividend increase for 2008, continued share buyback program (EUR 300 million until the end of first semester 2008)
Growth outlook strengthened by the Gaz de France proposed merger:
- Post-merger EBITDA target: EUR 17 billion by 20101
- Merger completion during first-half 2008

Gérard Mestrallet, SUEZ Chairman and CEO, commented: “By presenting strong results growth in 2007 that exceeded our targets, SUEZ has demonstrated once again the strength and effectiveness of its business model and capacity to create shareholder value. In contrast with the uncertain business and financial climate, the long-term pattern of growth of the Group’s businesses enables an ambitious development strategy. This strategy is based on top-flight industrial positions, on markets offering a high degree of predictability and on the well-known know-how of its teams. The proposed project with Gaz de France strengthens SUEZ’ capacity to combine sustained growth, financial discipline, and recurring profitability.”
1. Based on the GDF SUEZ EBITDA definition.

Outlook
The Group enjoys excellent prospects. The effectiveness of the SUEZ business strategy is supported by accelerated changes in the businesses where the Group is present and by Europe’s energy price dynamics. These latter are principally a function of higher fossil fuel prices, growing environmental concerns, new infrastructure requirements, and energy supply security considerations.
Ambitious 2008 objectives
Based on its commercial successes and particularly promising growth prospects for all its businesses, the Group has established ambitious financial objectives for 2008:
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EBITDA growth in the +10% range
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More investment in 2008 than in 2007
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Pursuit of share buyback program (EUR 300 million till the end of first semester 2008)
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Maintenance of an “A” credit rating
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Another dividend increase for 2008 and a policy of higher dividend payouts than 50% of recurring net income.
Acceleration in industrial investments
The Group’s objective for 2008 is to exceed level of investment in 2007.
These investments will respect the Group’s stringent financial discipline (maintain an “A” rating for medium-term debt and observe strict in-house investment criteria) and will focus principally on renewable and conventional electricity generating capacity, mainly in Europe, Latin America, and North America.
Continued dynamic shareholder remuneration policy
Given 2007 results and a favorable outlook for each of the Group’s businesses, the Board of Directors decided at its February 25, 2008 meeting to recommend to the May 6, 2008 Annual General Shareholders’ Meeting an ordinary dividend of EUR 1.36 for 2007, representing an increase of +13.3% over the dividend paid for 2006.
Continuous dividend increases since 2003 (+70%) reflect the Group’s dynamic shareholder remuneration program, in step with its profit trend, offering a return on investment that is competitive with the entire sector.
Since 2007 this dividend payout policy has been matched with share buyback programs that will be continued in 2008.
5-year recruitment program to hire 110,000 new employees
The Group intends to hire 110,000 new employees between 2008 and 2012, including 52,000 in France and 10,000 in Belgium. This active hiring policy responds to trends in SUEZ businesses, to anticipated structural changes in operations’ requirements, and the necessity to match Group resources to customer needs.
This comprehensive recruitment program reflects the Group’s confidence in a future where it will hire, invest, and share the fruits of its performance with employees. The program positions SUEZ as one of Europe’s leading recruiters.
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