Good morning, ladies and gentlemen. Thank you for taking part in this meeting presenting our consolidated results as of June 30, 2021, session environment. This is wholly done via webcast. Of course, I feel it's unfortunate I can't see you personally at this time as well. At my side, we have Maxime Sechet, our CEO and on the other side, Patrice Hanyal, our CFO.
At the end of our presentation, we will field any questions you might have. You can start asking the questions now by pressing the button question on your screen. H1-twenty 21. We saw excellent commercial, operational and financial performance. I have 3 main points having to do with these interim results.
Baptiste will be running you through the results in detail. My first message though is that in H1 'twenty one, we can say We went well above our targets in commercial terms, financial terms and operational terms. First half for not just versus the first half of twenty twenty, which was hit by the health crisis, but also versus the first half of twenty nineteen. We can See, the overall figures are well above they were during that benchmark period. This performance is very much about our overall growth momentum and ongoing improvement of operating margins.
This has been the case for Seche environement for many years now. To talk about activities specifically. It's buoyant in our main scope, particularly in France. We've also seen this, a confirmed recovery in most geographies internationally. We see a resumption in volumes in H2 2020.
This continued, which shows structural momentum in the waste to market. Contributed revenue, €355,000,000 up 18% compared to the same period in 2020, also up 13% versus the first half of 2019. Now let's talk about operating income. Our Operating performance shows strong growth in all of our figures. And we can see in both EBITDA and COI increases in value and margin versus equivalent periods in 20 2019 and in 2020.
EBITDA reaching almost 23% of contributed revenue, COI improving substantially over 9% of contributed revenue. This is a level of profitability, which we hadn't for several years. This growth is thanks to commercial operations to address industrial lagging and our cost cutting plans that were enacted. Now the financial situation also demonstrates significant improvement in the soundness, the strength of our balance sheet. The first half is further confirmation a strong cash available cash flow generation above our target of 35% of EBITDA.
The financial leverage its 2x7 EBITDA, and it's strongly up and strong improvement compared to leverage 30 June 2020, which is 3.3x on EVE. We can compare this very favorably to leverage on 30 June 2019, which was 3.2x EBITDA, which shows great flexibility in our balance sheet. A second message I would like to say to you this morning. This very good performance yet again confirms the strength of our momentum in profitable growth, enabling VICI to reap the benefits of the economic recovery after 2020, where the group, nevertheless, showed the resilience of its activities and its margins as well. This dynamic of profitable growth has been underway for several years based on 3 pillars: the positioning of our focus on value added business lines, our industrial efficiency and growth through acquisition.
Maxime will go through these 2 pillars in detail, talking to you about the basics of our model for growth and achievements in the first half of 2021. I'd point out that during the first half of twenty twenty one, our group completely smoothed out the effects of the health crisis in 2020 without swaying from its path of growth and profitability. Firstly, because of service offerings with very high added value enables us to tap into growth in our markets, volume and value growth, both in France and internationally. Next, because thanks to improved industrial efficiency, our entire organization increased its operating profitability, working on our waste mix, improving productivity of our facilities and also optimizing flow management. Lastly, during this half year period, CECE continued to adapt and add to its services offering through targeted acquisitions.
With the acquisition of Spill Tech in South Africa, we added to our offering of recovery and treatment with higher value services and tackling urgent environmental matters. We have also announced our intention to acquire Oasis Ile de France. Their specialized in sanitation services, which is a recurring business developed in territories where we don't have a footprint and with the renewed customer portfolio. After this first half. I observed that we are ahead of our roadmap.
We will be reaching, in all likelihood, our targets as of 2021, 1 year ahead of schedule. We'll be reaching targets of most of our operational and financial targets we set our sights on for 2022. This is why 2021 targets have been revised upward. New medium term targets will be disclosed to you toward the end of the year during an Investors Day meeting. A third message for you.
Performance we're seeing after this first half of twenty twenty one our sustainable, lasting. They'll continue to improve further. So we revised upward our targets for 2021 in terms of overall activity, operating income and financial flexibility. Therefore, on a like for like basis and scope for this year, we expect contributed revenue close to the initial target, the minimum that we have set for 2022, which is €750,000,000 This is to say, with the integration of Spill Tech, as of this year, 2021, we're going beyond this minimum target we've set for 2022. I'd make the same point in terms of operating profitability.
Here, we'll see a significant increase versus last year. So EBITDA should be between 21% 22% of contributed revenue. Strong generation of cash flow will be maintained. Now we're targeting financial leverage improved at 2.7 times EBITDA for the 2021 period, which is 3.1 times for the end of 2020. Last March, I'd remind you, we'd already improved our target of financial leverage for 2021, reducing it by 2x, 9x versus 3x 3.2x previously.
As I said, these are sustainable lasting trends. New medium term targets for growth in business and growth in operating profitability will be disclosed toward the end of the year during Investors Day. These new targets. We'll display our ability to continue sustainably growth in profitability of our operations with our new scope of activity within a new economic environment. Will give you further details on medium term targets, financial targets, but also non financial targets.
These are also a focus of our growth model. Now I'd like to give the floor to Maxime Sechet, who will talk you through the main factors, which were driving our growth as well as profitability during this half yearly period. Maxime has the floor. Good morning to you, 1 and all. This good performance in the first half shows the relevance, the appropriateness of our strategy for growth based on 3 pillars: 1st of all, our positioning secondly, our policy of industrial efficiency and then external growth, which is selective and profitable.
As you know, we're a global player in waste management with expertise in Recovery of Energy and Materials as well as Hazardous Materials. Thanks to the flexibility of organization, our ambitious R and D policy and also thanks to our ability to roll out internationally. We can support our clients in industry and in municipalities and meet their needs, which are at the core of our challenges in this century, I. E, decarbonized economy, circular economy and biodiversity. We've been well positioned in waste management, both hazardous and nonhazardous.
We've been able to, therefore, tap into growth in those markets, positive commercial effects there in the first half, specifically trending upward tick in prices, positive waste mix, initial effects of our industrial efficiency policy. Hazardous Waste Markets, here we observe good level of production in strategic industry, our core industry, saturation of facilities in France and in Europe that lens of sulfur price increases and arbitrage strategy, the mix effect waste mix effect. Also, we're seeing great interest in the circular economy with recovered materials to cut pressure on resources and improve our product life cycle. Nonhazardous waste markets. Here, we see trends that are favorable structurally.
The regulatory environment is favorable, boosting the economic viability of solutions on offer. We continue rolling out and using our expertise for energy recovery. As you know, we developed, for instance, Laval, the first CSR boiler in France. Solid fuels used for the urban waste system in the wintertime urban heating systems are in the wintertime, and it's also used in the summertime at farming facilities. We'll develop this for our clients, both industry municipalities with more sorting upstream of the treatment facilities to further recover materials as well as energy.
2nd pillar of our policy of growth is industrial efficiency, thanks to which our positive commercial effects pan out and can be seen operationally. We focused our effort on some essential points here. First of all, better coordination of the commercial efforts through operational management to optimize the waste mix. We set up an industrial and commercial plan with a short term timeline schedule to predict volumes and flows and monthly discussions between Commerce, Logistics and Operations. The target being to maximize our scheduling ergo customer satisfaction.
We're also working to improve on the supply chain to improve customer service and reduce transportation costs. We are optimizing flows of waste using rail and so forth and also upstream preparations that we can maximize tons per hour and capacities used by our incineration facilities. We've also achieved made investments for revamping our facilities to maximize availability and throughput. For instance, Siles to investments in revamping, enables us to gain 10% in additional capacity, optimize smoke processing, and we're still expecting new regulatory requirements in this area. We've also developed a preventive maintenance plan, which in addition to technical elements will enable us to increase installed capacity for our facilities.
Furthermore, we've undertaken actions on productivity levers such as professionalization of our purchasing departments, inter alia, standardization of nomenclature to optimize group procurement. We don't forget one of the most important points here, which is safety. We developed safety trainings. We've formalized safety points for each team, each shift, and we're also getting systematic feedback on issues. This is a way of enhancing performance, and it's also certainly a way of respecting our employees by focusing on safety.
A third pillar in our strategy, external growth, which is selective and profitable. The target here is to add to complete our offer of services and our territorial coverage, supporting our clients and being proactive in terms of what their needs will be. In France, we're mainly targeting territories where we're not established yet all business lines that are in line with our strategy to add to our offering. Internationally, here, we're talking about gaining market share in countries with high potential for development and where environmental regulations are favorable. That's our framework for the acquisitions strategy.
We've added to our scope, particularly internationally and been doing so since 2018. This year, we continued rolling out this strategy to acquisitions. At the beginning of 2021, we finalized the acquisition of Spilltec in South Africa. We selected the company firstly for its intrinsic qualities, its inherent qualities. Spilltek is growing very well and it's profitable growth, strong profitable growth.
Furthermore, they're a good fit. It's complementary. They have synergy with InterWest. We're already Activities and Environmental Services plus BillTac. The group becomes the number one waste operator in South Africa.
And the first operator, which is integrated throughout the value chain. Now we're offering all waste management facilities collection, recovery, treatment with quality standards, which we continue to grow. To go back to Spilltek, this is a company whose revenue is around €30,000,000 in a full year. We're confident in their outlook for growth. Business is up by 40% since 2018.
Furthermore, this acquisition is accretive as from the first half with EBITDA, which is 30% of revenue. In France, we just announced our intention to acquire 8 agencies of OSIS Ile de France, representing around €27,000,000 of revenue. This is in line with our rationale of extending our footprint toward throughout Ile de France, surrounding Paris, focusing on waste management services and sanitation services and extending our customer base. This should be finalized beginning of 2022, subject to approval by the Antitrust Authority. Thank you very much.
I'll give the floor now to Baptiste.
Thank you, Maxime. Good morning to you all. I'll present the consolidated financial statements at June 30, 2021, starting with a chart of the key economic and financial indicators. The figures speak for themselves at June 30, 2021. Even if we took up the 2019 numbers restated from contributed revenue given the restatement of the tax on pollution activities, all the indicators trending favorably in terms of activity, EUR324,000,000 at June 30, up 18.4%, a strong increase in operating income, be it EBITDA up 50 0.1% and COI, 39.1%, up 152%, strong changes versus 20 but also strong increases versus 2019 through net income, 13,500,000 euros sharply up versus previous years.
De facto, we see a very favorable increase in margins, be it the EBITDA margin 22.9 percent or the operating margin at 9.3% all net income related to revenue coming in at 3.8%. This a change in cash flow that is favorable with a cash flow preservation policy. Cash flow up and net debt at €465,500,000 that the effect reflects the increase in CapEx, resumption of industrial growth CapEx as well as financial through an acquisition policy via Spilltec, as Maxime indicated. So we cash standpoint. We're coming in with net debt that is flat, and it's the noncash items that change by €15,000,000 versus December 31, 2020, net financial debt, strong, very strong balance sheet, improved leverage, as was said, 2.7 times the EBITDA, which is favorable and maintain strong liquidity at June 30 this year.
When we Look, the main aggregates, of course, starting with the activity, as was said, €382,500,000 in revenue versus €313,000,000 at June 30th last EUR 27,800,000 in noncontributed revenue, primarily EUR 4,900,000 linked to EFRIC 12 revenue to the Montauban operation and €29,200,000 of tax some polluting activity sharply up versus €13,300,000 in H1 'twenty. Remind you this tax is collected by the waste producer on behalf of the state and restated as noncontributed revenue, so as to present operating margins that are real. Contributed revenue comes in at €354,700,000 You see that in the blue section of the chart up 18.4 percent with a scope effect impact 11.1% linked to the acquisition of SPIL TEC consolidated as of March 1 this year, shown here is a H1 impact that is in full to be taken into account in anticipations like for like contributed revenue comes in at €343,600,000 plus So up 14.6 percent, like ForEx impact like for like taking us to plus 15%, reflecting a positive and strong contribution of all activities in France and internationally. The green line, 43 point €9,000,000 that represent the organic growth as such, made up of hazardous So waste and nonhazardous waste business lines, fifty-fifty for both value chains.
Quarter by quarter, we see, as I indicated, the nonhazardous waste by value chain, plus €22,000,000 in organic hazardous waste plus EUR 22,000,000 by focusing, firstly, on nonhazardous waste, we see a strong increase plus to 20.6 percent, 2 strong quarters in 'twenty one driven by a sharp increase in volumes and prices in France, up €15,000,000 international increase primarily in South Africa with a strong contribution of interweight, plus €6,000,000 versus the first half twenty twenty. For hazardous waste now, plus 22,000,000 organic, 2 strong quarters in 2021, broadly flat with sustained growth in France versus H120, stemming primarily from processing and recovery and stability internationally with a clear disparity according to geographies. Turning briefly to the France International split, as I indicated, strong momentum in France, plus 16.9 percent, thanks to all activities, positive price and volume mix on the back of a good trend in Industrial Markets, plus 9.4% international with a very dynamic €34,000,000 up 21 percent. The rest of the world primarily serviced to Industry via Solarca, up €29,000,000 plus 3 percent. Only Latin America revenue coming in at €6,500,000 remains clearly impacted by the pandemic and weakness in industrial activity in its main geographies.
Moving swiftly over this slide, the key point is by activity contributed revenue driven by all activities, including without the scope effect on the Service segment. We see the processing activities highly contribute to recovery and very positive, strong rebound in Services, both for hazardous waste, like for like and non hazardous waste as regards the actual scope. Turning to the operating income, starting with EBITDA. As I indicated, we're posting EBITDA at June 30th coming in at €81,100,000 20 2.9% of contributed revenue with a scope effect you can find on the international part of €3,400,000 The acquisition of SPILTEG. Increased activity led to an increase in EBITDA.
Excluding scope. We have an operating margin that would have come in at 22.6%, as Maxime indicated. We see that as of now, the the acquisition of Spilltec is both accretive on our EBITDA in operating margins that clearly reflects our strategy, and that's very positive. EBITDA increase is the result both in increased margins in France and internationally with overall a good trend of industrial and municipal markets and a significant increase the utilization rate of our facilities. On the right, international, the rebound of EBITDA of Winter Waste in South Africa, which contributes to the significant increase in group EBITDA.
When we use the different price and volume the effect. We see the importance of volume effects linked to the rebound of H1-twenty 1 plus, up €29,000,000 When we look at that volume effect, we see half of that's made up of an increase in France of the treatment volumes versus Q2 last year, which was weak. Also an increase in the utilization of our facilities up 10% there of that's for France, EUR 14,000,000 links to treatment, EUR 7,000,000 to the rebound in services in France through the momentum of our works and the global offering and EUR 7,000,000 internationally, primarily in South Africa for half and the rest in Europe and the rest of the world. The price effect that's positive, just under €15,000,000 And the key point is, of course, the improved margins through an increase in activities, both volume and prices, faced with good containment of operating margins, which was a key factor in H1 performance. Turning to the current operating income.
As you see, COI comes in at 32,900,000 euros. That's an operating margin of 9.3%, sharply up. €26,800,000 that's €10,300,000 of contributed revenue with primarily the course of the increased the EBITDA with the effects indicated, an increase in provisions to amortization linked to a treatment It was dynamic and increased amortization on the back of the investment policy conducted on thermal treatment facilities. International, €6,000,000 in COI with an increase in margins versus 2 €1,000,000 last year, which is the result of organic growth of EBITDA for €2,000,000 and the increase of current operating income internationally, €2,900,000 with the acquisition of Spiltec. Moving down the income statement to net income, we see, 1st of all, improved in our financial expense at income at €9,400,000 in spite of an increase in net debt, 78% of our financial costs in the first half of the tax, it's spent €7,200,000 That's linked the increased earnings with an effective tax rate, contained 34.1% versus 35 point to 1% last year.
Slight negative income on equivalent costs linked to a shutdown of the waste treatment, 13,500,000 net income group share, as I indicated sharply, up. Just a word now on the balance sheet items, we see a return of industrial investments at a more normative level. Last year, we protected the cash during H1 'twenty, during the lockdown. So day factor, there's resumed resumption in CapEx above all non recurring one off CapEx that are growth CapEx recurring 6% of contributed revenue maintaining our production facilities 17.5 percent 1 offs in growth projects, increased capacity, investing in recovery facilities, nonhazardous and hazardous waste treatment facilities to increase the range of services offered to clients and improved standards, notably in South Africa, which led to this good contribution that we saw. And like last year, Turning to cash flow.
We have recurring cash flows sharply up, thanks up 21,000,000 thanks to the improved EBITDA and operating cash flow available after mandatory expenses up 6,000,000 this half versus last year in spite of all the CapEx rolled out. That strong cash generation that has allowed the resumption of an active CapEx policy, both industrial and financially, to fund our expansion and de facto increases debt, but in a limited manner, up EUR 15,000,000. No cash the effect. These are non cash impacts linked primarily to the recovery of log fees and the spill tech debt that Impac's debt directly. Turning to liquidity.
The group maintains a strong liquidity position, €3,300,000 €134,000,000 in active treasury, a leverage 2.7 times EBITDA. So that's a very significant improvement of the end of 2020, 3.1x and 3 point 3 times end of June last year. Looking at the outlook for 'twenty one, we've reviewed the the outlook for 'twenty one upwards with target revenue that will come close to €750,000,000 excluding the integration of Spilltec. In terms of activities with de facto expecting continued positive momentum in France in H2 continued of a good level of activity in Europe and South Africa. We're hoping for the ramp up of activities that are suffering today, the health situation in LatAm and international work projects international that are still suffering to travel restrictions in certain areas.
This brings us to anticipating level of activity in H2 'twenty one in line with H1. From the terms of operating income. As you've seen, we have a H1 that's very dynamic. Even if 2 swallows, don't make us some. Our target for EBITDA is 21%.
Given the H1 and the outlook for H2. We expect to be above that target with an EBITDA target between 'twenty one and 'twenty two of revenue, contributed revenue, including polluting tax as regards to our CEOI that current operating income should follow the same trend as EBITDA. Financial structure is key. We continue to to protect the cash flow situation. We're still expecting Industrial CapEx of the order of €90,000,000 with resumption in growth investments, liquidity abundant liquidity with available free cash flow, 35 percent of EBITDA.
It's the case we maintain it. Flexibility where we improve the leverage target. We were expecting 2 point 9 times EBITDA. Given the situation, we expect to maintain the leverage target, improved to 2.7 percent times EBITDA at constant scope. That's the presentation of results and the main targets.
Let's Now move to the Q and A session.
Thank you for talking us through the results as of 30 June. It's time for our question and answer session. We'll field those questions. Do we have the questions now? Yes?
Okay. Question 1. Hello from Jean Francois, conge Jean. Margins in Aurelia you've reached in France, Are they sustainable for the medium term? 2nd question, guidance for revenue, €750,000,000 Is this before Speltek and OSIS?
Next, what are the trends in Latin America? Are we seeing signs of recovery and improvement? Fourthly, Spilltec margins, are they sustainable? What about these levels. Next, what about your CapEx policy medium term after €90,000,000 in 2021?
On question 1, margins reached in Italy and France, rather sustainable medium term answer. Several points here. Firstly, these are half yearly results. Outlook for the medium term will be submitted to you during the Investors Day toward the end of the year. As Maxime pointed out, If you look at half yearly results, there's an improvement in margins of EBITDA and operating margins, which relate to cyclical elements as well as structural elements.
Cyclical elements. First of all, we can say that today, there's good growth in industrial production. The macro economy is buoyant in the main geographies of this group. Then structural elements having to do with the cost cutting plan, the industrial efficiency plan, enhanced productivity, which we see in our facilities and improvement in waste mix. We'll be presenting to you the medium term outlook driven both by cyclical elements as well as structural elements, realizing, of course, that our task will be to set up action plans for structural elements so that we can boost margin levels which and underpin margin levels we've announced here.
Next question, guidance on revenues, euros 750,000,000. Is this before Speltek and OSIS? Let me mention, We're getting close to EUR 750,000,000 according to our expectations. We'll get close to EUR 750,000,000 in revenue. Now of course, this excludes Spilltek.
Together with Spilltek, we would have gone above €750,000,000 Remember, Spilltek is consolidated starting on 1 March 2021. So the revenue for Spilltek, EUR 30,000,000 is on an annual basis, not over 10 months. OSIS, no impact in 2021 of OSIS. So of course, guidance of for 750,000,000 near close to 750,000,000 excludes OSIS. Question, trends for Latin America.
Well, as I mentioned to you, as of 30 June, we're not seeing any improvement for Latin America. Clearly, there has been an impact by the health crisis, also an impact in terms of the overall economy in Latin America. We hope we've reached a low point of trough. The health situation will improve and there'll be a recovery in these areas. We are maintaining our strategy of managing our business locally and adjusting operating costs to any deterioration in overall activity.
So far no improvement in our financials there as of end of June. Now our CapEx policy medium term is the next question. Now of course, we will outline this for you during the Investors Day. That's a very important point. Important thing here is to realize that now we've come back to normative recurring CapEx.
We're going to maintain the normative level. However, having to do with growth investments, here we will continue to be highly selective in industrial and financial terms. It will all depend on opportunity and financial flexibility that we have within the group. Next question was to build on this. Question for Mr.
Pierre Chong. The government's announced a support plan for R and D and Recycling. Are you going to apply for the government assistance support? Same another question. Would you talk about the stock of waste to be managed in France as China has announced it won't be importing waste?
Well, let me say that it's very important for us to have a true sector of recovery and recycling within France. It's very important to be able to recycle, reinsert secondary and primary materials and have energy recovery facilities in France. This way, we'll go to develop jobs that couldn't be offshored from France and help contribute to reindustrialization in France. Would you like to add something on this? No, thank you.
We have a question now also from Peirchanga. Could you explain changes in the TGAP tax in upcoming years, this increase in TGAP? Could it be passed on to the customers? The government does indeed have a plan to increase the tax on fleeting materials, CGAP. It's a publicly disclosed governmental plan.
You can look it up. This is why we've included under in non contributed revenue because de facto, we pass along this increase in TJP to the clients. We say that these are governmental measures, and we tell the clients invoicing of these our straight pass along. So there won't be any issue in terms of any changes in our operating key figures. Question important question here from Nicolas Hajio asking, could you talk to us about Italy?
Is the situation still as good in terms of prices and volumes growth in that country? Is this due to investments to increase capacity. And we'll all of this will only start bearing fruit as of 2022. It's a positive situation in Italy would be my answer. There's no capacity impact.
It's only an increase Increasing capacity will just start in 2022. We're in a positive situation. No increases in capacity or prices, but nonetheless, continues to be a positive situation, therefore, contributing to our group's operational aggregates in the first half of twenty twenty one. What are the further questions? Next one, indicate Nicolas Raio, H2 revenue indication, Your indication seems cautious.
Is this due to the catch up effect that you saw in H2 2020? Yes. If you look at quarterly changes, we had Q2 2020, which was very low due to lockdowns. Then there was a rebound because of opening back up of waste recovery centers and opening up of services in Q3 2020. Therefore, We're expecting in the second half revenue will be similar to our revenue figures in the second half of twenty twenty.
Let me just add Another question for Niccolo. What are growth opportunities, acquisition opportunities after Suezvelia merger? We will, as I've said, panelize opportunities if there are any that arise, we'll be highly selective. And as Baptiste said, thanks to our cash on hand and our financial flexibility, leverage of 2.7 times. We are in a position to react quickly if any opportunity were to come up.
Would you like to add something? Are there no further questions? Well, then I would like to thank you. Thank you.