4. Investor Relations , key figures as of September 30, 2012
Key figures for nine months ending September 30, 2012
Sept. 30, Δ
In €M Sept. 30, 2011 Sept. 30,
2011
re‐presented(1) Δ Constant
published 2012
FX
Revenue 23,963 20,913 21,599 3.3% 1.3% (4)
Adjusted operating cash flow 2,391 2,077 1,946 ‐6.3% ‐8.0%
Adjusted operating cash flow
2,077 2,034 ‐2.0% ‐3.7%
excluding Dalkia Italy write‐downs
Adjusted operating income 1,251 1,118 841 ‐24.8% ‐25.8%
Adjusted operating income excluding
1,118 930 ‐16.9% ‐17.9%
Dalkia Italy write‐downs
Operating income (2) 568 446 718 +61.0% +59.4%
Free Cash Flow (3) +58 +58 ‐72
Net financial debt 15,045 15,045 15,176
(1) To ensure the comparability of periods, the first nine months 2011 financial statements have been re‐presented to include:
‐ the impact of the reclassification into “net income from discontinued operations” of operations in the process of being sold such as the whole Veolia Transdev income (from March 3rd to September 30th 2011)
except the activities of the group Société Nationale Maritime Corse Méditerranée (SNCM) the Solid waste activities in the United States in the Environmental Services division, and the public lighting activities
(Citelum) in the Energy Services division;
‐ the impact of the reclassification into “net income from discontinued operations” of divested activities such as the regulated activities in the United Kingdom in the Water division;
‐ the impact of the reclassification into ‘continuing operations’ of the “Pinellas” incineration activities within the Montenay International entities in the United States in the Environmental Services division, whose
divesture process was interrupted in the second semester of 2011.
For the record, as of September 30,2011, the Transportation Division as a whole (from January 1st to March 3rd, 2011) was reclassified into “net income from discontinued operations”.
(2) Non recurring items include impairment losses on goodwill recorded in respect of Company subsidiaries as of September 30,2011 in Southern Europe and the United States and Impairment losses on non‐current
assets recorded in the respect of Company subsidiaries mainly in Italy.
(3) Free Cash Flow represents cash generated (sum of operating cash flow before changes in working capital and principal payments on operating financial assets) net of the cash component of the following items: (i)
changes in working capital for operations, (ii) operations involving equity (share capital movements, dividends paid and received), (iii) investments net of disposals (including the change in receivables and other
financial assets), (iv) net financial interest paid and (v) tax paid.
4
(4) +1.0% at constant scope & FX
5. Investor Relations , key figures as of September 30, 2012
Commercial Development
Water
• France: more than 100 contract renewals
• New industrial contracts in Asia :
Gain of the industrial water and energy optimization contract of Chengde Iron (China): €44M
of cumulated revenue over 7 years
Environmental Services
• France : contract renewals at September‐end > €220M, and new contracts > €45M (cumulated
revenue)
• USA : contract renewals at September‐end > $350M (cumulated revenue)
• China: New concession contract, in partnership with a Chinese company, for a hazardous waste
treatment facility in Changsha (Hunan Province) : cumulated revenue of €320M over 25 years
Energy Services
• New contracts for more than €194M of annual revenue, of which 50% in France, the rest in Central
Europe and China. Examples:
France: Industrial utilities for Ajinomoto Eurolysine in Amiens : Cumulated revenue of €23M
over 12 years
Slovakia: First EPC contract of Energy services for 74 schools in Kosice : cumulated revenue
of €80M over 18 years
5
6. Investor Relations , key figures as of September 30, 2012
Good resilience of activities in a difficult environment
(1/2)
Water: Revenue stable at constant scope & FX in Q3, similar to Q2, with
improvement in Operations activities and lower growth in Technologies &
Networks
• Operations: flat revenue in Q3 at constant scope & FX, versus ‐2.9% in Q2 due mainly
to France (+2.7% versus ‐1.5%)
Stabilized volumes and favorable indexations in the 3rd quarter
Environmental Services: revenue declined 3.4% at constant scope & FX in Q3,
versus ‐5.7% in Q2:
• Geographic refocusing: cessation and restructuring of certain activities in North Africa
and Italy
• Recycled raw material prices below 2011 historically high levels
Impact at Sept.30, 2012 of roughly ‐€143M on revenue
• Impact of lower volumes limited to ‐1% for the 9 months in a difficult environment,
particularly in the UK and Germany for industrial customers
• Good resilience in France, particularly in hazardous waste and incineration
Energy Services: revenue increased 5.3% at constant scope & FX in the nine
months, similar to H1 trend
• Higher energy prices: positive impact of €176M vs. 9M 2011 6
7. Investor Relations , key figures as of September 30, 2012
Good resilience of activities in a difficult environment
(2/2)
Improvement in 3rd quarter adjusted operating cash flow to €562M versus
€544M in Q3 2011
• Favorable base effect (operational difficulties in Q3, 2011)
• Limited restructuring costs recorded in Q3
• 3rd quarter adjusted operating cash flow increased 3.3%, after a decline of 3.2% in Q1
and ‐19.6% in Q2 (including the receivables write‐down in Italy)
• At September 30, 2012: YTD adjusted operating cash flow declined 8% at constant
exchange rates (‐3.7% excluding the receivables write‐downs in Italy) to €1,946M,
versus ‐10.6% at constant exchange rates for the half year ended June 30, 2012
Adjusted operating income in Q3 followed the same trend as H1 2012
• At September 30, 2012: YTD adjusted operating income declined 25.8% at constant
exchange rates (‐17.9% excluding the receivables write‐down in Italy) to €841M
7
8. Investor Relations , key figures as of September 30, 2012
Net financial debt
Net financial debt of €15.2 billion
Seasonal movement in WCR: ‐ €648M (‐€542M at September 30, 2011)
YTD Gross investments of €2,244M, versus €1,846M at September 30, 2011
• Reinvestment of 10% in UK regulated water business (€44M): guaranteed return of 9%
• Buyback of minorities in our Water activities in Czech Republic for €79M, and in the
Azaliya JV for €246M
• Increase in growth investments in Energy Services
Asset divestments and transactions in process
• Asset divestments of €1,660M in YTD September 30, 2012
• Closing of the U.S. solid waste divestment expected before end of November
• VTD Memorandum of Understanding signed with the Caisse des Dépôts
• Berlin: equity method accounting for our participation as of November 1, 2012
=> net debt reduction of about €1.4 billion
In Q4, the Company should generate FCF of €2.5 to €3 billion
8
9. Investor Relations , key figures as of September 30, 2012
Convergence Plan implementation (1/2)
Efficiency Plan: €105M in net savings for the YTD ending September 30,
2012 (impact on operating income)
Cost reductions/ Convergence 1 : €45M net savings for the YTD ending
September 30, 2012 (impact on operating income)
As of June 30, As of September Adj. Op. Income
2012 30, 2012 Projection 2012
Convergence 1 Adj. Op. Adj. Op. Adj. Op. Adj. Op. At June At Sept.
Cash Flow Income Cash Flow Income 30 30
Gross savings 59 59 94 94 109 117
Implementation
‐25 ‐32 ‐45 ‐49 ‐59 ‐63
costs
Net savings 34 27 49 45 50 54
9
10. Investor Relations , key figures as of September 30, 2012
Convergence Plan implementation (2/2)
325 projects
In €M approved
Impact at Sept. 30, 2012:
109 117
100
75 303 contributing projects
Implementation costs 60
Gross cost savings
€94M gross savings
€45M net savings
‐38 (Op.income)
‐52 ‐59 ‐63
‐80
2012 Feb. 17 Apr. 27 July 20 Oct. 31
Objective 2012e 2012e 2012e 2012e
Breakdown of net savings by geography at Sept. 30, Breakdown of net savings by lever at Sept.
2012 30, 2012
France
7% Purchasing
10%
17% North America &
Australia
Latin America and
Organizational
Southern Europe 33%
Efficiency
7% Asia, Africa, Middle
East
Central & Eastern IT costs
33% 5% Europe
Northern Europe
11% Corporate HQ 1% External
59%
Expenses
4% Other
13% 10
11. Investor Relations , key figures as of September 30, 2012
Mid‐term objectives confirmed
• Divestments of €5 billion
• Reduce net financial debt below €12bn(1)
2012‐2013: • Cost reduction in 2013: gross impact of €270M and net(2)
Transition impact of €170M on operating income
period • Commitment on dividend policy
→ €0.70(3) per share in 2012 paid in cash or in
shares
→ €0.70(3) per share in 2013
• Organic revenue growth > 3% CAGR (mid‐cycle)
• Adjusted Operating Cash Flow > 5% CAGR (mid‐cycle)
2014 and • Leverage(4) of 3.0x(5)
beyond: • Mid‐term: historical payout ratio(3)
• Cost reduction in 2015: gross impact of €500M and net(2)
New impact of €470M on operating income
Veolia
(1) Before closing exchange rate impact
(2) Net of implementation costs
(3) Subject to approval of Veolia’s Board of Directors and Shareholders
(4) Net financial debt / (Operating cash flow before changes in working capital + principal payments on
operating financial assets) 11
(5) ±5%
13. Investor Relations , key figures as of September 30, 2012
Summary of Appendices
Appendix 1 : Main 9M 2011 re‐presented figures IFRS 5
Appendix 2 : Impact of variations in foreign exchange rates during the 9
months
Appendix 3 : Revenue by quarter
Appendix 4 : Revenue by geographic region
Appendix 5 : Revenue by division
Appendix 6: Water
Appendix 7: Environmental Services
Appendix 8 : Energy Services
Appendix 9: Quarterly evolution of net financial debt
Appendix 10: Evolution of recycled raw material prices
Appendix 11 : Main impacts of French fiscal tax laws and proposals 2012 &
2013
13
14. Investor Relations , key figures as of September 30, 2012
Appendix 1: Main 9M 2011 re‐presented figures IFRS5(1)
(€M) 9M 2011 9M 2011
published Re‐presented (1 )
Revenue 23,963.4 20,913.4
Adjusted operating Cash Flow 2,391.2 2,076.9
Adjusted operating income 1,250.9 1,118.1
Operating income(2) 568.0 446.1
Free Cash Flow (3) +58.0 +58.0
(1) To ensure the comparability of periods, the first nine months 2011 financial statements have been re‐presented to include:
‐ the impact of the reclassification into “net income from discontinued operations” of operations in the process of being sold such as the whole Veolia Transdev income
(from March 3rd to September 30th 2011) except the activities of the group Société Nationale Maritime Corse Méditerranée (SNCM), the Solid waste activities in the
United States in the Environmental Services division and the public lighting activities (Citelum) in the Energy Services division;
‐ the impact of the reclassification into “net income from discontinued operations” of divested activities such as the regulated activities in the United Kingdom in the
Water division;
‐ the impact of the reclassification into ‘continuing operations’ of the “Pinellas” incineration activities within the Montenay International entities in the United States in
the Environmental Services division, whose divesture process was interrupted in the second semester of 2011.
For the record, as of September 30,2011, the Transportation Division as a whole (from January 1st to March 3rd, 2011) was reclassified into “net income from
discontinued operations”.
(2) Non recurring items include impairment losses on goodwill recorded in respect of Company subsidiaries as of September 30,2011 in Southern Europe and the United
States and impairment losses on non‐current assets recorded in the respect of Company subsidiaries mainly in Italy.
(3) Free Cash Flow represents cash generated (sum of operating cash flow before changes in working capital and principal payments on operating financial assets) net of the
cash component of the following items: (i) changes in working capital for operations, (ii) operations involving equity (share capital movements, dividends paid and
received), (iii) investments net of disposals (including the change in receivables and other financial assets), (iv) net financial interest paid and (v) tax paid. 14
16. Investor Relations , key figures as of September 30, 2012
Appendix 3: Revenue by quarter
In €M 1st quarter 2nd quarter 3rd quarter
2011 2012 Δ 2011 2012 Δ 2011 2012 Δ
Re‐ constant Re‐ constant Re‐ constant
presented(1) scope & presented(1) scope & presented(1) scope &
FX FX FX
Water 2,880.2 3,018.7 +5.2% 3,047.2 3,076.7 ‐0.3% 3,024.7 3,113.5 ‐
Environmental 2,196.3 2,197.0 ‐1.1% 2,357.3 2,284.8 ‐5.7% 2,252.5 2,269.0 ‐3.4%
Services
Energy Services 2,286.6 2,502.6 +6.2% 1,311.2 1,418.0 +5.6% 1,179.4 1,260.6 +3.4%
Other 120.5 132.9 ‐3.6% 104.6 150.0 +40.7% 152.9 175.3 +11.6%
Company 7,483.6 7,851.2 +3.5% 6,820.3 6,929.5 ‐0.4% 6,609.5 6,818.4 ‐0.3%
Variation at +4.9% +1.6% +3.2%
current scope & FX
(1) See note 1 Appendix 1 (IFRS 5) and IFRS 8 reclassifications
16
17. Investor Relations , key figures as of September 30, 2012
Appendix 4: Revenue by geographic region
In €M
20,913 21,599
Δ Δ constant Δ excl. FX &
2,185 FX scope
1,934
Central & Eastern +13.0% +16.3% +7.5%
Europe
8,327 8,583
France +3.1% +3.1% +3.4%
Europe excl.
France and Central ‐4.1% ‐6.2% ‐4.9%
& Eastern Europe
5,786 5,551 United States +8.4% ‐1.2% ‐0.7%
Asia Pacific +9.4% ‐0.4% +1.8%
1,246 1,351
Rest of the world +7.4% +5.9% +2.6%
2,089 2,286
1,531 1,643 Total +3.3% +1.3% +1.0%
Nine Nine
months months
Sept. 30, Sept. 30,
2011 (1) 2012
(1) See note 1 Appendix 1
17
18. Investor Relations , key figures as of September 30, 2012
Appendix 5: Revenue by division
in €M
21,599
20,913
9,209 Δ Δ excl. FX &
8,952 Δ constant scope
FX
9 064 Water +2.9% +0.9% +1.6%
Environmental ‐0.8% ‐3.8% ‐3.4%
6,751 Services
6,806 Energy Services +8.5% +8.2% +5.3%
Other +21.2% +19.0% +14.8%
5,181 Total +3.3% +1.3% +1.0%
4,777
378 458
Nine Nine
months months
Sept. 30, Sept. 30,
2011 (1) 2012
(1) See note 1 Appendix 1 18
19. Investor Relations , key figures as of September 30, 2012
Appendix 6: Water:
Revenue increased 2.9% to €9,209M
Nine months revenue at
Operations: Revenue of €6,435M, stable at September 30 (€M)
constant scope & FX compared to Sept. 30,
2011: improvement in Q3, with stable revenue 8,952 9,209 +2.9%
compared to a decline of 2.9% in Q2
• France: revenue increased at constant scope by
2.7% in Q3 versus a decline of 1.5% in Q2:
6,435 +0.6%
volumes stabilized in Q3 and favorable indexation 6,395
despite continued contractual erosion
• Outside France: stable revenue +0.5% (‐0.6% at
constant scope & FX); good performance in Central
Europe and China, but lower revenue in Berlin 2,774 +8.5%
2,557
(lower prices mandated by FCO), in Australia (end
of Adelaide contract) and in the US (end of the
Indianapolis contract) 2011* 2012
Technologies & Networks: Revenue increased Operations
8.5% (+5.1% at constant scope & FX) Technologies & Networks
• Slowdown in revenue growth in Q3 * The 2011 financial statements have been re‐presented in
order to ensure comparability of periods for the U.K regulated
Water activities
19
20. Investor Relations , key figures as of September 30, 2012
Appendix 7: Environmental Services
Stable revenue at €6,751M
Nine months revenue at
Revenue variation 9M2012 / 9M2011 : ‐0.8%
September 30 (€M)
‐3.4%
Price and volumes of recycled materials ‐2.2 % 6,806 constant 6,751
Waste volumes & level of activity ‐1.0 % scope &
Service price increases +0.7 % FX
Other ‐1.0 %
Foreign exchange +3.0%
Scope ‐0.4%
France (+0.4% at constant scope, comparable
to June 30): stronger activity levels, notably
in hazardous waste treatment and
incineration, as well as higher recycled
volumes and certain price increases offset
the unfavorable effect of recycled raw 2011* 2012
material prices * The 2011 financial statements have been re‐presented in order to ensure the
comparability of periods for the U.S. Solid Waste activities
UK (‐5.4% at constant scope & FX, versus
‐7.4% at constant scope & FX at June 30): Revenue growth by quarter
decline in landfill volumes partially In €M 2011 2012 Variation Δ
compensated by increased tonnage constant
incinerated (New Haven) scope &
FX
Germany (‐14.0% at constant scope) : impact
of lower prices and volumes of recycled raw 1 st quarter 2,196 2,197 ‐ ‐1.1%
materials nd quarter
2 2,357 2,285 ‐3.1% ‐5.7%
USA (+0.3% at constant scope & FX):
primarily due to hazardous waste treatment 3rd quarter 2,253 2,269 +0.7% ‐3.4%
9 months 6,806 6,751 ‐0.8% ‐3.4% 20
21. Investor Relations , key figures as of September 30, 2012
Appendix 8: Energy Services
Revenue increased 8.5% to €5,181M
Revenue increased 8.5% (+5.3% at constant Nine months revenue at
September 30 (€M)
scope & FX) to €5,181M, versus +5.9% for the
YTD at June 30 (Q3 was not significant in 5,181 +8.5%
terms of trends) 4,777
• Higher energy prices : positive impact of €176M vs. 2011
and favorable weather impact (+€48M)
2,800 +7.5%
In France, revenue increased 9.6% (+10.8% at 2,605
constant scope)
• Good contractual performance, favorable weather and
price effects (increase in average fuel basket prices of
15.4%)
2,172 2,381 +9.6%
Outside France, revenue increased 7.5%, (and
was stable at constant scope & FX)
2011** 2012
• Central & Eastern Europe* remains the primary
geographic zone of growth (revenue increase of +20.7% France Outside France
and +5.6% at constant scope & FX) despite lower
electricity sales in the Czech Republic and the end of
* Poland, Czech Republic, Slovakia, Hungary, Bulgaria, Romania, Baltic
cogenerated energy subsidies in Hungary countries
* * The 2011 financial statements have been re‐presented in order to
• Italy: continued restructuring of Siram, in light of ensure comparability of periods for the Citelum activities
planned divestment
21
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Appendix 10: Evolution of recycled material prices
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Investor Relations , key figures as of September 30, 2012
23
