2. Relations Investisseurs, chiffres clés au 30 septembre 2011
Disclaimer
Veolia Environnement is a corporation listed on the NYSE and Euronext Paris. This document contains "forward‐looking
statements" within the meaning of the provisions of the U.S. Private Securities Litigation Reform Act of 1995. Such
forward‐looking statements are not guarantees of future performance. Actual results may differ materially from the
forward‐looking statements as a result of a number of risks and uncertainties, many of which are outside our control,
including but not limited to: the risk of suffering reduced profits or losses as a result of intense competition, the risks
associated with conducting business in some countries outside of Western Europe, the United States and Canada, the risk
that changes in energy prices and taxes may reduce Veolia Environnement's profits, the risk that we may make
investments in projects without being able to obtain the required approvals for the project, the risk that governmental
authorities could terminate or modify some of Veolia Environnement's contracts, the risk that our long‐term contracts may
limit our capacity to quickly and effectively react to general economic changes affecting our performance under those
contracts, the risk that acquisitions may not provide the benefits that Veolia Environnement hopes to achieve, the risk that
Veolia Environnement's compliance with environmental laws may become more costly in the future, the risk that currency
exchange rate fluctuations may negatively affect Veolia Environnement's financial results and the price of its shares, the
risk that Veolia Environnement may incur environmental liability in connection with its past, present and future operations,
as well as the risks described in the documents Veolia Environnement has filed with the U.S. Securities and Exchange
Commission. Veolia Environnement does not undertake, nor does it have, any obligation to provide updates or to revise
any forward‐looking statements. Investors and security holders may obtain a free copy of documents filed by Veolia
Environnement with the U.S. Securities and Exchange Commission from Veolia Environnement.
This document contains "non‐GAAP financial measures" within the meaning of Regulation G adopted by the U.S. Securities
and Exchange Commission under the U.S. Sarbanes‐Oxley Act of 2002. These "non‐GAAP financial measures" are being
communicated and made public in accordance with the exemption provided by Rule 100(c) of Regulation G
This document contains certain information relating to the valuation of certain of Veolia Environnement’s recently
announced or completed acquisitions. In some cases, the valuation is expressed as a multiple of EBITDA of the acquired
business, based on the financial information provided to Veolia Environnement as part of the acquisition process. Such
multiples do not imply any prediction as to the actual levels of EBITDA that the acquired businesses are likely to achieve.
Actual EBITDA may be adversely affected by numerous factors, including those described under “Forward‐Looking
Statements” above.
2
10/11/2011
3. Relations Investisseurs, chiffres clés au 30 septembre 2011
Table of Contents
Impact of foreign exchange variation
Key figures for the nine months ending September 30, 2011
Breakdown of revenue by division
Operating trends by division
Operational performance
Free Cash Flow (FCF)
Net financial debt at September 30, 2011
Appendices
3
10/11/2011
4. Relations Investisseurs, chiffres clés au 30 septembre 2011
Impact of FX on first 9 months of 2011 accounts
Evolution of the euro 9M 2011 / 9M 2010
Average rate Closing rate
• Australian dollar +7.7% +1.4%
• Czech koruna +4.3% ‐0.6%
• U.K. pound sterling ‐1.6% ‐0.8%
• U.S dollar ‐6.9% +1.1%
Impact on the company’s main figures
• Revenue ‐€40M
• Adjusted operating cash flow ‐ €6M
• Adjusted operating income +€5M
• Decline in net debt (at end of period rates) ‐ €97M
4
10/11/2011
5. Relations Investisseurs, chiffres clés au 30 septembre 2011
Key figures for nine months ending September 30, 2011
In €M Sept. 30, Sept. 30, 2010 Sept. 30, Current Constant
2010 re‐presented
(1)
2011 exchange exchange
published rates rates
Revenue 25,467.9 20,684.9 23,963.4 +15.8% +16% (2)
Revenue excluding VTD 21,181.5 ‐ 21,688.3 +2.4% (3) +2.6% (3)
Adjusted operating cash flow 2,665.6 2,368.6 2,391.2 +1.0% +1.2%
Adjusted operating cash flow margin 10.5% 11.5% 10.0%
Adjusted operating cash flow excluding 2,426.2 ‐ 2,266.3 ‐6.6% (3) ‐6.3% (3)
VTD
Adjusted operating income 1,495.6 1,368.7 1,250.9 ‐8.6% ‐9.0%
Adjusted operating income margin 5.9% 6.6% 5.2%
Adjusted operating income excluding 1,406.5 ‐ 1,230.6 ‐12.5% (3) ‐12.9% (3)
VTD
Operating income 1,566.4 1,459.9 568.0
Free Cash Flow (220) (220) +58.0
Net financial debt 15,767 15,767 15,045
(1) The financial statements of 2010 have been re‐presented, in order to insure the comparability of periods:
‐ for the reclassification into “net income from discontinued operations” of Proxiserve activities in the Water and Energy Services divisions, Norway operation s
in the Environmental Services division and the activities in Netherlands in the Water division;
‐ for the reclassification into “net income from discontinued operations” of the Transportation division as a whole (for the accounts in the nine months ending
September 30, 2010 of: €4,286.4 million in revenue, €239.4 million in adjusted operating cash flow and €89.1 million in adjusted operating income)
‐ for the reclassification into “continued operations” of the Renewable Energies business within the Energy Services division.
(2) +3.7 % at constant scope and exchange rates
(3) Variations compared to previously published figures for the nine months ending September 30. 2010 excluding the contribution of Veolia Transport
5
10/11/2011
6. Relations Investisseurs, chiffres clés au 30 septembre 2011
Breakdown of revenue by division
in €M
23,963
20,685 excl.
current constant scope &
9,284 FX rates FX rates FX
8,885
Water +4.5% +4.7% +2.1%
7,328 Environ. Services +6.1% +6.6% +7.0%
6,906
Energy Services +3.7% +3.5% +2.1%
5,076 Transport (2) 100% ‐ ‐
4,894
2,275 Total Company +15.8% +16.0% +3.7%
Nine months 2010 Nine months
re‐presented (1) 2011
(1) The financial statements of 2010 have been re‐presented, in order to ensure the comparability of periods:
‐ for the reclassification into “net income from discontinued operations” of Proxiserve activities in the Water and Energy Services divisions, Norway operation
s in the Environmental Services division and the activities in Netherlands in the Water division;
‐ for the reclassification into “net income from discontinued operations” of the Transportation division as a whole (for the accounts in the nine months ending
September 30, 2010 of: €4,286.4 million in revenue, €239.4 million in adjusted operating cash flow and €89.1 million in adjusted operating income)
‐ for the reclassification into “continued operations” of the Renewable Energies business within the Energy Services division.
(2) Veolia Transdev revenue for the period ending September 30, 2011 is accounted for as a scope effect
6
10/11/2011
7. Relations Investisseurs, chiffres clés au 30 septembre 2011
WATER
Operations: Revenue increased 4.5% (+1.7% at Revenue nine months ending
constant scope and exchange rates) September 30, 2011 (€M)
• France: slight decline in revenue in the context of
contractual erosion (notably the SEDIF), and lower 8,885 9,284 +4.5%
volumes sold during the summer, and despite a
favorable price effect
• Outside France: Revenue grew 8.2%: good 6,438 6,727 +4.5%
performance in Europe (Germany, Central and Eastern
Europe due to contracts purchased from United
Utilities) and in Asia (China and Japan)
2,447 +4.5%
Technologies and Networks: Revenue increased 2,557
4.5% (+3.0% at constant scope and exchange
rates) 9M 2010* 9M 2011
• Continued declines in municipal (including the Operations
scheduled completion of the large Marafiq/ Fujairah / Technologies and Networks
Ras Laffan contracts), offset by the rebound in D&B and
Industrial Solutions, and the Hong Kong contract * The financial statements of 2010 have been re‐presented, in order to ensure the
comparability of periods for the Netherlands and Proxiserve activities
(€108M in revenue)
7
10/11/2011
8. Relations Investisseurs, chiffres clés au 30 septembre 2011
ENVIRONMENTAL SERVICES
Revenue variation 9M2011 / 9M2010 : +6.1% Revenue nine months ending
September 30, 2011 (€M)
Recyled materials price and volumes +2.9 % +7.0% 7,328
6,906
Waste volumes +1.6% constant
scope & FX
Price increases +0.9 %
Other +1.6%
Foreign exchange ‐0.5 %
Scope ‐ 0.4 %
France: organic growth of +6.7%: volumes
increased, notably in the treatment of 9M 2010* 9M 2011
hazardous waste, continued high level of
recycled raw materials prices * The financial statements of 2010 have been re‐presented, in order to ensure the
comparability of periods for the Norwegian activities
UK: organic growth of +9.9% due in particular
to PFI contracts Revenue growth by quarter
Germany: Organic growth of +8.8% due to In €M 2010 2011 Variation At
constant
higher paper prices scope and
FX
USA: progression of solid and hazardous st
waste activity, offset by the negative impact 1 quarter 2,113 2,361 +11.8% +10.2%
of Marine Services 2nd quarter 2,401 2,533 +5.5% +7.3%
3rd quarter 2,392 2,434 +1.7% +3.7%
9 months 6,906 7,328 +6.1% +7.0% 8
10/11/2011
9. Relations Investisseurs, chiffres clés au 30 septembre 2011
ENERGY SERVICES
Revenue increased 3.7% (+2.1% at
constant scope and exchange rates) to Revenue nine months ending
€5,076 M September 30, 2011 (€M)
4,894 5,076
Higher energy prices
• Impact of roughly €156 M vs. September 2010
Unfavorable climate effect, principally in
France and in Central Europe
• Impact of roughly ‐ €128 M vs. September
2010
Difficulties in Spain and Italy:
• Halt in solar, persistent difficulties in
installation, challenging commercial
renegotiations
* The financial statements of 2010 have been re‐presented, in order to ensure the
comparability of periods for the Germany and Proxiserve activities
9
10/11/2011
10. Relations Investisseurs, chiffres clés au 30 septembre 2011
TRANSPORT
Following the combination of Veolia Transport and Transdev,
consolidation of the new entity, proportionally integrated at 50% since
March 3, 2011:
• €2,275M in revenue from March to September 2011 (of which Veolia
Transport €1,629M and Transdev €646M)
• Excluding the scope effect related to the VTD combination (‐ €1932M),
revenue declined 1.9%
On a pro forma basis* (9 months VTD 2010/2011), the new entity posted a
revenue decline of 1.2%:
• Of which ‐4.3% primarily due to divestments (RATP)
• Of which +3.4% due to organic growth primarily related to new contracts in France,
Australia and the United States
* 9 months of Veolia Transdev at 100%
10
10/11/2011
11. Relations Investisseurs, chiffres clés au 30 septembre 2011
OPERATIONAL PERFORMANCE
• Adjusted operating cash flow increased 1.2% at constant exchange rates to
€2,391.2M versus re‐presented €2,368.6M for the nine months ending
September 30, 2010. Excluding Veolia Transdev, adjusted operating cash flow
would have declined 6.3% at constant exchange rates compared to previously
published figures at September 30, 2010.
• Adjusted operating income declined 8.6% to €1,250.9M versus re‐presented
€1,368.7M for the nine months ending September 30, 2010. Excluding Transport
activities, adjusted operating income would have declined 12.9% at constant
exchange rates compared to previously published figures at September 30, 2010.
11
10/11/2011
12. Relations Investisseurs, chiffres clés au 30 septembre 2011
Positive Free Cash Flow: + €58M versus ‐€220M for
the period ending September 30, 2010
• Adjusted operating cash flow of €2,391M increased 1.2% at constant
exchange rates
Of which €125M related to the new entity Veolia Transdev (presented as
external growth ), and representing a variation of ‐6.3% at constant exchange
rates excluding VTD vs. published Sept. 30, 2010 figures
• Favorable seasonal evolution of working capital in Q3 (+ €116M), but
‐€542M cumulative at the end of September
• Controlled gross investments: €1,846M
• €1,169M of divestments, of which:
Impact of Veolia Transdev combination: €540M
Divestment of Norway sorting and recycling activities
Divestment of Solid Waste activities in Belgium
12
10/11/2011
14. Relations Investisseurs, chiffres clés au 30 septembre 2011
Appendix 1: Main 9M 2010 re‐presented figures IFRS5(1)
9M 2010 IFRS5 IFRS5 9M 2010
(€M) published Adjustment
)
(a Adjustment Re‐presented(1)(2)
VTD(b)
Revenue 25,467.9 (496.6) (4,286.4) 20,684.9
Adjusted operating cash flow 2,665.6 (57.6) (239.4) 2,368.6
Adjusted operating income 1,495.6 (37.8) (89.1) 1,368.7
Free Cash Flow (3) (220.0) (220.0)
(1) (a) To ensure the comparability of period, the first nine months 2010 financial statements have been re‐presented to include:
‐ the impact of the reclassification into “net income from discontinued operations” of “Proxiserve” activities in the Water and Energy Services division, Norway
operations in the Environmental Services division and the activities in Netherlands in the Water division;
‐ the impact of the reclassification into ‘continuing operations’ of the renewable energies activities in the Energy Services division.
(b) To ensure the comparability of period, the 2010 financial statements have been re‐presented to include the impact of the reclassification into “net income from
discontinued operations” of the Transportation Division as a whole.
(2) The financial statements for the first nine months of 2010 have not been re‐presented to adjust for the fraud discovered during the second quarter of 2011 in the
Marine Services business in the United States (a unit of the Environmental Services Division), as the impact during the period was not significant.
(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
10/11/2011
15. Relations Investisseurs, chiffres clés au 30 septembre 2011
Appendix 2: Quarterly revenue
1st quarter 2nd quarter 3rd quarter Nine months ending
September 30
2010 2011 Δ 2010 2011 Δ 2010 2011 Δ 2010 2011 Δ
constant Re‐ constant constant constant
Re‐ Re‐ Re‐
scope & present scope & scope & scope &
presen FX FX presen FX present FX
ed (1)
ted (1) ted (1) ed (1)
Water 2,883 2,986 ‐1.5% 2,941 3,159 +6.4% 3,061 3,139 +1.2% 8,885 9,284 +2.1%
Environmental 2,113 2,361 +10.2% 2,401 2,533 +7.3% 2,392 2,434 +3.7% 6,906 7,328 +7.0%
Services
Energy 2,264 2,407 +3.3% 1,370 1,386 +0.2% 1,260 1,283 +2.0% 4,894 5,076 +2.1%
Services
Transport ‐ 334 na ‐ 983 na ‐ 958 na ‐ 2,275 na
Company 7,260 8,088 +3.4% 6,712 8,061 +5.5% 6,713 7,814 +2.3% 20,685 23,963 +3.7%
Variation at +11.4% +20.1% +16.4% +15.8%
current FX
(1) (a) To ensure the comparability of period, the first nine months 2010 financial statements have been re‐presented to include:
‐ the impact of the reclassification into “net income from discontinued operations” of “Proxiserve” activities in the Water and Energy Services division, Norway operations
in the Environmental Services division and the activities in Netherlands in the Water division;
‐ the impact of the reclassification into ‘continuing operations’ of the renewable energies activities in the Energy Services division.
(b) To ensure the comparability of period, the 2010 financial statements have been re‐presented to include the impact of the reclassification into “net income from
discontinued operations” of the Transportation Division as a whole.
16. 10/11/2011
ja
n
0
20
40
60
80
100
120
140
160
180
fe 08
b
m 08
ar
ap 08
m r 08
ay
ju 08
n
0
ju 8
au l 08
g
se 0 8
pt
oc 0 8
t
no 08
v
de 08
c
ja 08
n
Cardboard
fe 09
b
m 09
ar
ap 09
m r0
Paper
ay 9
ju 09
n
0
ju 9
l
au 09
g
se 0 9
Metals
pt
oc 0 9
t
no 09
v
de 09
c
ja 09
n
fe 10
b
m 10
ar
ap 10
m r 10
ay
ju 10
n
1
ju 0
Evolution of raw materials prices (€/t)
l
au 10
g
se 1 0
pt
oc 1 0
t
no 10
v
de 10
c
ja 10
n
fe 11
b
m 11
ar
ap 11
m r 11
ay
ju 11
n
1
ju 1
l
au 11
Appendix 3: Evolution of recycled raw materials prices
g
se 1 1
pt
oc 1 1
t1
1
0
50
100
150
200
250
300
350
400
450
500
Relations Investisseurs, chiffres clés au 30 septembre 2011
16
17. Relations Investisseurs, chiffres clés au 30 septembre 2011
Investor relations contact information
Ronald Wasylec, Directeur des Relations avec les Investisseurs et Actionnaires individuels
Téléphone +33 1 71 75 12 23
e‐mail ronald.wasylec@veolia.com
Ariane de Lamaze
Téléphone +33 1 71 75 06 00
e‐mail ariane.de‐lamaze@veolia.com
38 Avenue Kléber – 75116 Paris ‐ France
Fax +33 1 71 75 10 12
Terri Anne Powers, Director of North American Investor Relations
200 East Randolph Street
Suite 7900
Chicago, IL 60601
Tel +1 (312) 552 2890
Fax +1 (312) 552 2866
e‐mail terri.powers@veoliaes.com
http://www.finance.veolia.com
17
10/11/2011