2010, first half results

53
First half 2010 First half 2010 results

Upload: ve-finance

Post on 23-Jan-2015

162 views

Category:

Business


3 download

DESCRIPTION

2010-08-06

TRANSCRIPT

Page 1: 2010, First Half Results

First half 2010First half 2010results

Page 2: 2010, First Half Results

Investor Relations, 2010 first half results ‐ 06/08/10

DisclaimerDisclaimerVeolia Environnement is a corporation listed on the NYSE and Euronext Paris. This document contains "forward‐lookingstatements" within the meaning of the provisions of the U.S. Private Securities Litigation Reform Act of 1995. Suchforward‐looking statements are not guarantees of future performance. Actual results may differ materially from theforward‐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 risksassociated with conducting business in some countries outside of Western Europe, the United States and Canada, the riskthat changes in energy prices and taxes may reduce Veolia Environnement's profits, the risk that we may makeinvestments in projects without being able to obtain the required approvals for the project, the risk that governmentalth iti ld t i t dif f V li E i t' t t th i k th t l t t tauthorities 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 thosecontracts, the risk that acquisitions may not provide the benefits that Veolia Environnement hopes to achieve, the risk thatVeolia Environnement's compliance with environmental laws may become more costly in the future, the risk that currencyexchange rate fluctuations may negatively affect Veolia Environnement's financial results and the price of its shares, therisk that Veolia Environnement may incur environmental liability in connection with its past present and future operationsrisk 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 ExchangeCommission. Veolia Environnement does not undertake, nor does it have, any obligation to provide updates or to reviseany forward‐looking statements. Investors and security holders may obtain a free copy of documents filed by VeoliaEnvironnement 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. Securitiesand Exchange Commission under the U.S. Sarbanes‐Oxley Act of 2002. These "non‐GAAP financial measures" are beingcommunicated 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 recentlyannounced or completed acquisitions. In some cases, the valuation is expressed as a multiple of EBITDA of the acquiredbusiness, based on the financial information provided to Veolia Environnement as part of the acquisition process. Suchmultiples 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

2

Statements” above.

Page 3: 2010, First Half Results

Investor Relations, 2010 first half results ‐ 06/08/10

Table of contentsTable of contents

Highlights

2010 first half results

2010 objectives

3

Page 4: 2010, First Half Results

Antoine FrérotChief Executive Officer

Page 5: 2010, First Half Results

Investor Relations, 2010 first half results ‐ 06/08/10

Overview of trends in activity (1)Overview of trends in activity (1)

Water: declining revenue in Works activities

First half of 2010

Water: declining revenue in Works activities• Continued lower Works activity mainly due to the completion of 3 large contracts in the Middle EastG d ili f ti d it th d f th P i t t• Good resilience of operations despite the end of the Paris contract

Environmental Services: market improvement • Strong rebound in prices of recycled raw materials and services pricing remain g p y p gat good levels

• Improvement in volumes is fragile and uneven• Contract signature selectivityg y

Energy Services: first half stable• Climate conditions more favorable at the beginning of the year / negative impact of energy pricesimpact of energy prices 

Transportation: good dynamics masked by the end of 3 contracts• Negative revenue impact of €350m related to the end of the Bordeaux, Melbourne and Stockholm contracts

5

Melbourne and Stockholm contracts• Revenue growth of 8.8% excluding the impact of these contracts

Page 6: 2010, First Half Results

Investor Relations, 2010 first half results ‐ 06/08/10

Overview of trends in activity (2)

Reappearance of opportunities for organic growth in core targets

Near and mid‐term

Overview of trends in activity (2)

Reappearance of opportunities for organic growth in core targets• For public collectivities• In all our specialties

Interesting opportunities to exchange and optimize assets• Water in Central Europe• Water in Central Europe

Portfolio of United Utilities contracts in EuropeEntry of IFC into the capital of Veolia Voda for 9.5%

E ffi i i th C h R bli• Energy efficiency in the Czech RepublicDivestment of 85% of Usti and 15% of Dalkia CeskaNWR Energy (industrial platform in Ostrava and Poland)

Continued pursuit of asset portfolio redeployment

6

Page 7: 2010, First Half Results

Investor Relations, 2010 first half results ‐ 06/08/10

Significant commercial and strategic advancesSignificant commercial and strategic advances

SEDIF contract win for 12 yearsy

Important commercial successes bring profitable growthW t L Ré i R P t b d C t l i t t• Water: La Réunion, Royan, Petrobras and Catalonia contracts

• Environmental Services: High performance sorting and recycling in Nantes, Staffordshire, Angers’ biopôle, Waste‐to‐energy in Beauvais

• Dalkia: Cogeneration by biomass in Lodz Poznan as well as in France (7• Dalkia: Cogeneration by biomass in Lodz, Poznan as well as in France (7 projects)  

• Transportation: Saxony, Bavaria, Rhine Westphalia, Boston, Phoenix• Multiple divisions: Renault in Tangierp g

Signature of agreement for the merger of Veolia Transport / Transdev on May 5, 2010y ,

7

Page 8: 2010, First Half Results

Investor Relations, 2010 first half results ‐ 06/08/10

Improvement confirmedImprovement confirmedSlight decline in revenue: ‐1.2%• Noticeable improvement in the second quarter in all divisionsp q

Operating cash flow growth of 2.7%

Improvement in recurring operating income: +6.6% (operating income +11.2%)I t i i t d i• Improvement in associated margins

Growth in recurring net income: +6.6%, (+69.9% growth in net income)

2010 Efficiency Plan: €132m in cost savings in H1• Cost reductions proceeding in line with annual €250m target

Strong growth in operating cash flow – net investments to €1,533m vs €850m (+80%)• Maintained discipline regarding gross investments: €1,333m (‐12%)Maintained discipline regarding gross investments: €1,333m ( 12%)

• Divestments: €766m vs. €268m

• Stable free cash flow vs. H1 2009 including the 86% cash dividend payment   

Net financial debt amounted to €16bnNet financial debt amounted to €16bn • Unfavorable exchange rate effect: +€674m

• Extension of debt maturity after the debt exchange in July 2010

8

Page 9: 2010, First Half Results

Investor Relations, 2010 first half results ‐ 06/08/10

2010 objectives confirmed2010 objectives confirmed

• Recurring operating income improvement

• Positive free cash flow after dividend payment(1)

• €3bn of divestments over 2009 – 2010 – 2011

• €250m in cost reductions

• Maintain ratio objective: net debt / (cash flow from operations + repayment of Operating Financial Assets)

9(1) Excluding the planned merger of Veolia Transport/Transdev

Page 10: 2010, First Half Results

Pierre‐FrançoisPierre‐François RiolacciChief Financial Officer

Page 11: 2010, First Half Results

Investor Relations, 2010 first half results ‐ 06/08/10

2010 First half key figuresEn €m H1 2009

Adjusted (1) H1 2010 current FX rates

constant FX rates

2010 First half key figures

Revenue 17,389.3 17,177.3 ‐1.2% ‐3.3%Operating Cash Flow(3) 1,835.2(2) 1,885.4 +2.7% +0.2%

Margin rate 10.6 % 11.0%Recurring operating income 1,011.5 1,078.2 +6.6% +3.5%

Margin rate 5.8 % 6.3%Operating Income 1,011.5 1,125.2 +11.2% +7.9%Recurring net income attributable to equity holders of parent 287.3 306.2 +6.6%

Net income attributable to equityNet income attributable to equity holders of parent 220.3 374.2 +69.9%

Dec 31 2009

June 30 2010 FX Impact2009 2010 p

Net financial debt 15,127 16,027 +674

11

(1) First half 2009 results have been adjusted in order to assure the comparability of periods for the reclassification into «net income from discontinued operations” of UK operations in the Transportation division and the Eolfi activities in the Energy Services division;

(2) As of January 1, 2010, due to the application of the new amendment to IAS 7, operating cash flow for H1 2009 has been adjusted for renewal expenses by an amount of €148.3 m, of which €102.3m is within the Water division and €46.0m is within the Energy Services division.

(3) For detailed definition refer to 2009 Form 20-F page 74

Page 12: 2010, First Half Results

Investor Relations, 2010 first half results ‐ 06/08/10

Impact of FX movements on H1 2010 accountsImpact of FX movements on H1 2010 accountsEuro depreciation  H1 2010 / H1 2009

Average Rate Closing RateAverage Rate        Closing Rate

• Australian dollar +27% +21%• Czech koruna +6% +1%• Pound sterling +3% +4%• Polish zloty +12% +7%

ll• U.S. dollar 0% +15%

I G ’ i fiImpacts on Group’s main figures  • Revenue +€357m• Operating cash flow +€47m• Operating cash flow  +€47m• Recurring operating income  +€32m

12

• Higher net debt (at end of period rates) +€674m

Page 13: 2010, First Half Results

Investor Relations, 2010 first half results ‐ 06/08/10

Breakdown of consolidated revenueBreakdown of consolidated revenue

By division By geographic region

Water€5,901m

Transportation€2,847m Asia / Pacific

Rest of the world€1,008m

,,

North America€1 679m

€1,271m

17%34% 10%

7%6%

Energy Services€3,721m          

F

€1,679m

22% 40%

37%

10%

Environmental

France €6,903m

Europe ex. France

27% 37%

C lid t d H1 2010 R f €17 177

EnvironmentalServices €4,708m

Europe ex. France €6,316m

13

Consolidated H1 2010 Revenue of €17,177m

Page 14: 2010, First Half Results

Investor Relations, 2010 first half results ‐ 06/08/10

Revenue

In €m+ 35717 389 - 384

Revenue

+ 35717,389- 185

38417,177

H1 2009adjusted (1)

Internalgrowth

Externalgrowth

FX effect H1 2010adjusted

-1.1%growth

-2.2%growth

+2.1% -1.2%

14(1) First half 2009 results have been adjusted in order to assure the comparability of periods for the reclassification into «net income from discontinued operations”

of UK operations in the Transportation division and the Eolfi activities in the Energy Services division

Page 15: 2010, First Half Results

Investor Relations, 2010 first half results ‐ 06/08/10

Breakdown of revenue by divisionBreakdown of revenue by divisionIn €m

Current FX rates

Constant FX rates

Exc. Scope 

& FX

17,389 17,177

FX rates FX rates & FX

Water ‐5.4% ‐7.1% ‐5.7%

Environmental Services 4.6% 1.9% 6.6%

6,235 5,901

Energy Services 0.2% ‐1.6% 0.6%

Transportation ‐3.1% ‐5.2% ‐5.2%

VE Group 1 2% 3 3% 1 1%

4,502 4,708

VE Group ‐1.2% ‐3.3% ‐1.1%3,713

2,939

3,721

2,847

H1 2009 adjusted (1)

H1 2010

15(1) First half 2009 results have been adjusted in order to assure the comparability of periods for the reclassification into «net income from discontinued operations”

of UK operations in the Transportation division and the Eolfi activities in the Energy Services division

Page 16: 2010, First Half Results

Investor Relations, 2010 first half results ‐ 06/08/10

An inflexion during second quarter in all divisionsAn inflexion during second quarter in all divisionsRevenue in €m

1st Quarter 2nd  Quarter 1st Half 

2009 2010 At  2009 2010 At  2009 2010 At 2009 2010 constantFX

2009 2010 constantFX

2009 2010 constantFX

Water 3,143 2,923 ‐7.8% 3,092 2,978 ‐6.4% 6,235 5,901 ‐7.1%, , , , , ,

Waste  2,188 2,204 ‐0.7% 2,314 2,504 4.3% 4,502 4,708 1.9%

Energy services 2,398 2,312 ‐4.9% 1,315 1,409 4.6% 3,713 3,721 ‐1.6%

Transportation 1,431 1,356 ‐6.2% 1,508 1,491 ‐4.4% 2,939 2,847 ‐5.2%

Group 9,160 8,794 ‐5.1% 8,229 8,383 ‐1.3% 17,389 17,177 ‐3.3%

Variation at     4 0% +1 9% 1 2%

16

current FX  ‐4.0% +1.9% ‐1.2%

Page 17: 2010, First Half Results

Investor Relations, 2010 first half results ‐ 06/08/10

Breakdown of revenue by geographic areaBreakdown of revenue by geographic areaIn €m

Current FX rates

Constant FX rates

Exc. Scope & FX

17,389 17,177

FX rates FX rates

France ‐0.8% ‐0.8% 1.4%

Europe ex. France 2.3% ‐0.4% 1.6%

6,962 6,903

North America 4.2% 2.9% 2.7%

Asia / Pacific ‐4.0% ‐14.4% ‐15.2%

Rest of world 23 3% 25 9% 17 1%

6,177 6,316

Rest of world ‐23.3% ‐25.9% ‐17.1%

Group VE ‐1.2% ‐3.3% ‐1.1%1,6111,3241 315

1,679

1 0081,271

H1 20101,315 1,008H1 2009

adjusted (1)

17(1) First half 2009 results have been adjusted in order to assure the comparability of periods for the reclassification into «net income from discontinued operations”

of UK operations in the Transportation division and the Eolfi activities in the Energy Services division

Page 18: 2010, First Half Results

Investor Relations, 2010 first half results ‐ 06/08/10

Revenue : Veolia Water, down 5.4%Revenue : Veolia Water, down 5.4%Veolia Water Solutions & Technologies: ‐ 26.2% at constant scope and FX • Impact of the completion of large Design & Build contracts (Marafiq, Fujairah, Ras Laffan). Identical trend in first and second quarters

• Backlog for D&B activity has stabilized

First half revenue (€m)

Backlog for D&B activity has stabilized• Good activity in the « Solutions » business

France : Revenue decline of 2.4% at constant scope• Decline in Works ( 6 3%)

6,2355,901-5.4%

• Decline in Works (‐6.3%)• Slight increase in operations activity (+3.4%) excluding impact of the end of the Paris contract   

Outside France: +1.1% at constant scope and FX 12 6%

-1.3%4,013

2 222

3,960

1 941Outside France: +1.1% at constant scope and FX • Europe (excl. France): +3.0% at constant scope and FX (United Kingdom, Northern Europe)

• Africa / Middle East: +3.3% at constant scope and FX due to S1 09 S1 10

-12.6%2,222 1,941

Operationsincreased volumes and tariffs in 2009• Asia Pacific: ‐4.9% at constant scope and FX due to end of construction of the Gold Coast desalination plant (Australia)

Operations

Works and E&C

18

Page 19: 2010, First Half Results

Investor Relations, 2010 first half results ‐ 06/08/10

Revenue: Veolia Environmental Services: +4.6%Revenue: Veolia Environmental Services:  4.6%First half revenue

(€m)

Waste volumes  ± 0%

Variation in revenue H1 2010 / H1 2009       +5%4,502 4,708+4.6%

Price and volumes of recycled materials + 6%

Rise in service prices  + 1%

FX effects + 3%FX effects + 3%

Scope ‐ 5%

Breakdown of revenue by activity H1 09 H1 10Breakdown of revenue by activity2009 H1 2010

Urban cleaning and collection 23%8%

8%22%8%

8%

Non hazardous industrial waste collection and services

Hazardous industrial waste collection and services

Sorting and recycling 

Hazardous waste treatment13%

6% 6%

19

Hazardous waste treatment 

Waste‐to‐energy from non hazardous waste

Landfilling of non hazardous and inert waste 24%

18%

13%

24%

16%

16%

Page 20: 2010, First Half Results

Investor Relations, 2010 first half results ‐ 06/08/10

Veolia Environmental Services: Breakdown of revenue by geographic arearevenue by geographic area

% of H1 2010

Δ at 2010 

revenueconstant scope & FX

France 34% +7% Higher recycled raw materials pricesContract selectivity (municipal collection)Contract selectivity (municipal collection)Closure of 2 landfills Good activity for hazardous waste

Germany 12% +12% Higher recycled raw materials pricesGermany 12% +12% Higher recycled raw materials pricesCompetitive pressure on municipal, DSD contracts and industrial waste contracts

United 16% +4% Positive contribution of integrated contracts (PFI)United Kingdom

16% +4% Positive contribution of integrated contracts (PFI)Decline in industrial waste volumes and landfilled volumes during the first half, with stabilization in the second quarter

North America 14% +5% Improvement in solid waste volumes in the second quarterImprovement in Industrial Services

Rest of the 24% +6%

20

Rest of the world

24% +6%

Page 21: 2010, First Half Results

Investor Relations, 2010 first half results ‐ 06/08/10

Revenue: Veolia Energy Services, stable, +0.2%Revenue: Veolia Energy Services, stable,  0.2%

Lower energy pricesLower energy prices• impact of ‐€83m First half revenue

(€m)

Favorable climate in the first half of 2010 primarily in France and Central Europe• impact of +€65m -1.9%1 ,952

3,713 3,721

1,915

+0.2%

p

Stabilization in Works activities at constant scope +2.6%1,761 1,807scope

H1 09 H1 10

Outside France

(1)

Outside France

France

21(1) First half 2009 results have been adjusted in order to assure the comparability of periods for the reclassification into «net income from discontinued operations”

of UK operations in the Transportation division and the Eolfi activities in the Energy Services division

Page 22: 2010, First Half Results

Investor Relations, 2010 first half results ‐ 06/08/10

Revenue: Veolia Transportation, down 3.1%Revenue: Veolia Transportation, down 3.1%Revenue down 5.2% at constant scope and FX rates• Non‐renewal in 2009 of the Bordeaux, Stockholm and Melbourne contracts (‐€350m)

• Good commercial development

First half revenue (€m)

Valenciennes, The Netherlands (Haaglanden), Germany, United‐States

2,940 2,848-3.1%

Revenue growth of 1.8% in France at constant scope

H1 09 H1 10Revenue decline of 9.7% outside France at constant scope and FX rates (impact of Stockholm and Melbourne ‐€300m)

(1)

Stockholm and Melbourne ‐€300m)

22(1) First half 2009 results have been adjusted in order to assure the comparability of periods for the reclassification into «net income from discontinued operations”

of UK operations in the Transportation division and the Eolfi activities in the Energy Services division

Page 23: 2010, First Half Results

Investor Relations, 2010 first half results ‐ 06/08/10

Operating cash flow (1)Operating cash flow 

In €m H1 2009adjusted(2) H1 2010

current FX

FX effect

constant FXadjusted FX rates effect FX rates

Water 808 788 ‐2.5% 16 ‐4.4%lEnvironmental Services 540 627 +16.1% 15 +13.3%

Energy Services 374 386 +3.2% 11 +0.1%Transportation 160 159 ‐0.6% 5 ‐3.8%Transportation 160 159 0.6% 5 3.8%Other ‐47 ‐75 ‐ ‐Total Group 1,835 1,885 +2.7% 47 +0.2%

23

(1) Operating Cash Flow = cash flow from continuing operations before tax and interest expense(2) First half 2009 results have been adjusted in order to assure the comparability of periods for the reclassification into «net income from discontinued operations”

of UK operations in the Transportation division and the Eolfi activities in the Energy Services division As of January 1, 2010, due to the application of the new amendment to IAS 7, operating cash flow for H1 2009 has been adjusted for renewal expenses by an amount of €148.3 m, of which €102.3m is within the Water division and €46.0m is within the Energy Services division.

Page 24: 2010, First Half Results

Investor Relations, 2010 first half results ‐ 06/08/10

Operating cash flow margin improvementOperating cash flow margin improvement

H1 2009 margin 

adjusted (1)H1 2010 margin

Water 13.0% 13.4%Environmental Services 12.0% 13.3%Energy Services 10.1% 10.4%Transportation 5.4% 5.6%OtherOther ‐ ‐

Total Group 10.6% 11.0%

24

(1) First half 2009 results have been adjusted in order to assure the comparability of periods for the reclassification into «net income from discontinued operations” of UK operations in the Transportation division and the Eolfi activities in the Energy Services division .As of January 1, 2010, due to the application of the new amendment to IAS 7, operating cash flow for H1 2009 has been adjusted for renewal expenses by an amount of €148.3 m, of which €102.3m is within the Water division and €46.0m is within the Energy Services division.

Page 25: 2010, First Half Results

Investor Relations, 2010 first half results ‐ 06/08/10

Efficiency Plan: Cost reduction progressing in line with annual €250m objectiveline with annual €250m objective 

Efficiency Plan

€mH1 2009 

(Reminder)H1 2010

Water 37 38Environmental Services 25* 43Energy Services 21 31Transportation 15 18

Other 3 2Other 3 2

Total Group 101 132

53 % of the annual objective realized during the first half

25*  Excluding the Environmental Services Division’s separate Plan of Adaptation in 2009

Page 26: 2010, First Half Results

Investor Relations, 2010 first half results ‐ 06/08/10

Recurring operating income increased 6.6%Recurring operating income increased 6.6%

In m€ H1 2009adjustéd (1) H1 2010        Current 

FX ratesFX 

effect 

Constant FX rates

Water 596 590 ‐1.0% 13 ‐3.3%Environmental services 134 251 86.6% 8 80.7%

Energy services 256 268 4.8% 8 +1.6%

Transportation 81 48 ‐40.7% 3 ‐43.8%

Holding ‐56 ‐79Holding 56 79Recurring operating income 1,011 1,078 +6.6% 32 +3.5%Of which change in fair value of provisions for landfill rehabilitation ‐18 ‐33p f f

26

(1) First half 2009 results have been adjusted in order to assure the comparability of periods for the reclassification into «net income from discontinued operations” of UK operations in the Transportation division and the Eolfi activities in the Energy Services division

Page 27: 2010, First Half Results

Investor Relations, 2010 first half results ‐ 06/08/10

Recurring operating income margin improvementRecurring operating income margin improvement

Recurring operating

In €mH1 2009 margin 

H1 2010i

g p gincome margins

gadjusted (1) margin

Water 9.6% 10.0%Environmental services 3.0% 5.3%Energy services 6.9% 7.2%Transportation 2 8% 1 7%Transportation 2.8% 1.7%

Holding ‐ ‐

Total Group 5.8% 6.3%Total Group 5.8% 6.3%

27

(1) First half 2009 results have been adjusted in order to assure the comparability of periods for the reclassification into «net income from discontinued operations” of UK operations in the Transportation division and the Eolfi activities in the Energy Services division

Page 28: 2010, First Half Results

Investor Relations, 2010 first half results ‐ 06/08/10

Net income increased 70%Net income increased 70%

H1 2010

In €m Recurring Non‐recurring

Total Recurring Non‐recurring

Total

H1 2009 (1)

recurring recurring

Operating income 1,011 ‐ 1,011 1,078 47 1,125

Cost of net financial debt (2) ‐406 ‐ ‐406 ‐443 ‐ ‐443Cost of net financial debt  406 406 443 443

Corporate Tax Expense ‐198 ‐ ‐198 ‐188 ‐ ‐188

Share in net income of associates 7 ‐ 7 9 ‐ 9N t i f di ti dNet income from discontinued operations ‐ ‐68 ‐68 ‐ 43 43

Net income attributable to non‐controlling interests ‐127 1 ‐126 ‐149 ‐22 ‐171

Net income attributable to equity holders of parent 287 ‐67 220 306 68 374

28

(1) First half 2009 results have been adjusted in order to assure the comparability of periods for the reclassification into «net income from discontinued operations” of UK operations in the Transportation division and the Eolfi activities in the Energy Services division

(2) Including «other financial income and expenses », of which -€37m in unwinding discounts on provisions in 1H 2010

Page 29: 2010, First Half Results

Investor Relations, 2010 first half results ‐ 06/08/10

Cost of borrowingCost of borrowingIn €m H1 2009 H1 2010

Δ30/06/1030/06/09

Cost of net financial debt ‐379 ‐408 ‐29

Impact of change in average debt +15Impact of change in interest rates 38Impact of change in interest rates ‐38

Other ‐6

16 819 16 827

16 02716 500

17 000

Average net financial debt:

In €m

15 902

15 12715 377

16 027

15 500

16 000Average net financial debt:

€15,542m at June 30, 2010 versus

€16,888m at June 30, 2009

Cost of borrowing stood at

5.06% versus 4.76% in 2009 14 000

14 500

15 000

29

(4.47% at H1 2009 and 5.07% at H2 2009)

14 000Marc. 31,

09June 30,

09Setp. 30,

09Dec. 31,

09Marc. 31,

09June 30,

09

Page 30: 2010, First Half Results

Investor Relations, 2010 first half results ‐ 06/08/10

Completed Divestments in H1 2010Completed Divestments in H1 2010 

Industrial and financial divestments H1 2010 (1) 766In €m

Industrial and financial divestments H1 2010  766 

Mature assets 396• Of which Montenay ‐ Dade (Environmental Services)• Of which Montenay  Dade (Environmental Services), Usti nad Labem (Dalkia)

Non‐strategic assets 106g• Of which Mediterranea delle Acque (Water); Brazil, IrelandKorea (Environmental Services)

Development partnerships 192• Of which IFC in Veolia Voda, CEZ in Dalkia Ceska Republica

Industrial Divestments 72

30

(1) Including capital increase subscribed by minority shareholders, net financial debt of divested companies and partial divestments between non-controlling shareholders (with no change in consolidation scope)

Page 31: 2010, First Half Results

Investor Relations, 2010 first half results ‐ 06/08/10

Maintained discipline on net investments: €352mMaintained discipline on net investments: €352m

In €m H1 2009 H1 2010

Maintenance capital expenditures  710 458

As % of consolidated revenue 4.1% 2.7%Investments in growth/existing operations(ex. operating financial assets)

316 392

Financial investments in growth (1) 248 324

New operating financial assets 242 159

Gross investments 1,516 1,333 ‐183

Industrial and financial divestments (2) ‐268 ‐766 +498

Repayment of operating financial assets ‐263 ‐215Repayment of operating financial assets 263 215

Net investments 985 352 ‐633

31

(1) Including partial acquisitions between non-controlling shareholders (with no change in consolidation scope) and net financial debt from acquired entities(2) Including capital increase subscribed by minority shareholders of €108m in H1 2010 and €57m in H1 2009, net financial debt of divested companies and partial

divestments between non-controlling shareholders (with no change in consolidation scope)

Page 32: 2010, First Half Results

Investor Relations, 2010 first half results ‐ 06/08/10

Strong cash generated from operationsStrong cash generated from operationsIn €m H1 2009 H1 2010

h l i (1)Cash Flow From Operations(1) 1,836 1,878Repayment of Operating Financial Assets 263 215

Total cash generation 2,099 2,093Total cash generation 2,099 2,093Gross investments ‐1,516 ‐1,333Divestments 268 766

Cash generated from operations 851 1,526Variation WCR ‐114 ‐382Taxes paid ‐218 ‐197Taxes paid ‐218 ‐197Interest expense ‐347 ‐352Dividend (2) ‐402 ‐709Other (3) 73 ‐19

Free Cash Flow ‐157 ‐133

32

(1) Of which financial cash flow and cash flow from discontinued operations ((€2m) in H1 2010 et (€6m) in H1 2009)(2) Dividend paid to shareholders and minority shareholders and other movements(3) Includes in particular changes in receivables and other financing assets totaling (€27m) in H1 2010 and €62m in H1 2009

Page 33: 2010, First Half Results

Investor Relations, 2010 first half results ‐ 06/08/10

Change in net financial debtChange in net financial debt

In €m H1 2009 H1 2010

Net financial debt at January 1st ‐16,528 ‐15,127Free cash flow ‐157 ‐133FX ff t 30 674FX effects ‐30 ‐674Other ‐112 ‐93

Net debt at June 30 ‐16,827 ‐16,027Change in net debt ‐299 ‐900

Strong liquidity position : €9.7bn at the end of June 2010Pursuing active debt management• Average maturity of net debt of 9.9 years following the debt swap in July 2010 related to bonds due in 2012 and 2013 (average maturity of 9.5 years at June 30, ( g y y2010 and 10 years at the end of December 2009)

Ratings• Moody’s : P‐2 / A3 negative outlook (confirmed on July 8 2010)

33

• Moody s : P 2 / A3 negative outlook (confirmed on July 8, 2010)• Standard & Poor’s : A‐2 / BBB+ Stable outlook (April 21, 2010: ratings confirmed & outlook revised from negative to stable)

Page 34: 2010, First Half Results

Investor Relations, 2010 first half results ‐ 06/08/10

2010 objectives confirmed2010 objectives confirmed

• Recurring operating income improvement

• Positive free cash flow after dividend payment(1)

• €3bn of divestments over 2009 – 2010 – 2011

• €250m in cost reductions

• Maintain ratio objective: net debt / (cash flow from operations + repayment of Operating Financial Assets)

34(1) Excluding the planned merger of Veolia Transport/Transdev

Page 35: 2010, First Half Results

First half 2010First half 2010 results

Page 36: 2010, First Half Results

Sommaire

Appendices

Page 37: 2010, First Half Results

Investor Relations, 2010 first half results ‐ 06/08/10

Table of contents of appendicesTable of contents of appendicesCurrency movements Appendix 1Impact of FX rates on H1 2010 operating cash flow Appendix 2p p g ppGross investments by division Appendix 3Debt management  Appendix 4I t f f i t d bt A di 5Impact of foreign currency on net debt Appendix 5VE SA bond redemption schedule  Appendix 6Consolidated balance sheet Appendix 7Main contracts won or renewed in 1H10 Appendix 8Accounting treatment for renewal expenditures (IAS 7)  Appendix 9Veolia ‐ Transdev: calendar Appendix 10Veolia ‐ Transdev: calendar  Appendix 10

37

Page 38: 2010, First Half Results

Investor Relations, 2010 first half results ‐ 06/08/10

Appendix 1: Currency movementsAppendix 1: Currency movements 

U S dollar

H1 2009 H1 2010 H1 2010 / H1 2009

Main currencies (1 unit of foreign currency = €…)

U.S. dollarAverage rate 0.7507 0.7528 +0.3%Closing rate 0.7075 0.8149 +15.2%

Pound sterling Average rate 1.1187 1.1494 +2.7%Closing rate 1.1736 1,2233 +4.2%

Korean wonAverage rate 0.0006 0.0007 +17.2%Closing rate 0.0006 0.0007 +20.2%

Australian dollarAverage rate 0.5322 0.6730 +26.5%Closing rate 0.5761 0.6943 +20.5%

Czech korunaAverage rate 0.0368 0.0389 +5.5%Closing rate 0.0386 0.0389 +0.7%

38

The average rate applies to the income statement and cash flowThe closing rate applies to the balance sheet

Page 39: 2010, First Half Results

Investor Relations, 2010 first half results ‐ 06/08/10

Appendix 2: Impact of FX rates on H1 2010 operating cash flowoperating cash flow

H1 2008 (1)

H1 2009

H1 20102008 (1) 2009 2010

Currency Local currency (in millions) Δ H1 

2010/

Change €/X H1 2010 H1 

2010/

Impact on H1 2010 op. 

h flH1 2009 

H1 2009

cash flow (€m)

U.S. dollar zone  (USD)

209 203 255+28%

1.328+0.3%

+1

Pound sterling zone (GBP)

209 174 164‐6%

0.870+2.7%

+5

Czech koruna zone (CZK)

3,725 3,593 3,331 25.734 +6(CZK) ‐7% +5.2%

Korean won zone (KRW)

39,252 35,319 46,253+31%

1,532.27+14.7%

+4

Australian dollar zone 47 30 51 1 486 +11Australian dollar zone (AUD)

47 30 51+70%

1.486+20.9%

+11

Polish zloty  zone (PLN)

211 217 264+22%

4.003+10.6%

+7

39

(1) 2008 figures have not been restated for activities that are expected to be divested

Page 40: 2010, First Half Results

Investor Relations, 2010 first half results ‐ 06/08/10

Appendix 3: Gross investments by divisionAppendix 3: Gross investments by division  

Growth

In €mMaintenance

Financial incl. Δ in  Industrial 

New operating  TotalMaintenance consolidation 

scopecapex financial 

assetsTotal

Water 116 107 197 110 530Environmental Services 189 33 74 12 308Environmental Services 189 33 74 12 308Energy Services 40 181 73 19 313Transportation 103 2 39 18 162Other 10 1 9 0 20Other 10 1 9 0 20Total H1 2010 458 324 392 159 1,333Total H1 2009 710 248 316 242 1,516

40

Page 41: 2010, First Half Results

Investor Relations, 2010 first half results ‐ 06/08/10

Appendix 4: Debt managementAppendix 4: Debt managementRatings• Moody’s :  P‐2 / A3 negative outlook (confirmed July 8, 2010)• Standard & Poor’s :  A‐2 / BBB+ stable outlook (April 21, 2010) 

Bond redemption:  €23m in H1 2010Average maturity of net debt : 9.5 years at June 30, 2010 vs. 10 years in 2009Group liquidity:  €9.7bn, including €4.6bn in undrawn confirmed credit 

lines( without any disruptive covenants)Net Group liquidity:  €6.3 bn

Other 19% (1)Fixed rate: 62%

Net financial debt after hedges at June 30, 2010

Currencies (gross debt after hedges)          at June 30, 2010

GBP 10%

Fixed rate: 62%

o/w Euro: 80%

o/w USD: 52%Euro 61%

Variable rate: 38% USD 10%

o/w GBP: 42%

Variable cap-rate: 6%

41(1) o/w RMB 4% and HKD 3%

Variable cap-rate: 6%

Page 42: 2010, First Half Results

Investor Relations, 2010 first half results ‐ 06/08/10

Appendix 5: Impact of foreign currency on net debtAppendix 5: Impact of foreign currency on net debt

N t d bt t D b 31 2009 €15 127Net debt at December 31, 2009 €15,127mNet debt at June 30, 2010 €16,027m• Change €900m• Change   €900m

• Of which the impact of FX €674m• Of which the impact of FX €674mUS dollar €283mPound sterling €151mHong Kong dollar €92mChinese renminbi yuan €73m

42

Page 43: 2010, First Half Results

Investor Relations, 2010 first half results ‐ 06/08/10

Appendix 6: VE SA bond redemption schedule after the bond exchange completed July 1, 2010after the bond exchange completed July 1, 2010

1600

1800

CZKGBP

€1 8b

€0.02bn€0.8bn

Average maturity of net debt moved from 9.5 years to 9.9 years after bond exchange completed July 1, 2010 

1400

USDEURO €10.3bn

€1.8bn

Total €12.9bn

y g p y ,

1000

1200

800

400

600

200

43

02010 2012 2014 2016 2018 2020 2022 2024 2026 2028 2030 2032 2034 2036 2038

Page 44: 2010, First Half Results

Investor Relations, 2010 first half results ‐ 06/08/10

Appendix 7: Consolidated balance sheetAppendix 7: Consolidated balance sheet

In €m 12/31/09 06/30/10In €m / / / /

Intangible assets (concessions) 3,625    4,114Property, plant & equipment 9,382   9,903Oth t t 11 313 12 306Other non‐current assets 11,313    12,306Operating financial assets (current and non‐current) 5,652   5,723Cash & cash equivalents 5,614    5,058Other current assets 14,231    13,744Total Assets 49,817    50,848Capital (including minorities) 10,131    10,739p , ,Financial debt (current and non‐current) 21,086    21,715Other non‐current liabilities 4,381    4,868Other current liabilities 14 219 13 526Other current liabilities 14,219    13,526Total Liabilities & Shareholders Equity 49,817    50,848

44

Page 45: 2010, First Half Results

Investor Relations, 2010 first half results ‐ 06/08/10

Appendix 8: Main contracts won or renewed since the beginning of 2010

INTERNAL GROWTH

since the beginning of 2010‐ Renewals: 70 main contracts renewed in France during the 1st half 2010 in Water (o/w 36 in drinking water & 34 in 

wastewater), 108 in Waste (o/w 52 from local authorities & 56 from companies), 2 in Transportation & 85% of contracts due to expire during the 1st half 2010 renewed in Energy Lens

SMICTOMFlandres Morinie

contracts due to expire during the 1st half 2010 renewed in Energy SEDIF (Syndicat des Eaux d’Ile de France) (water) 

Public service concession based on the useful innovation on the following performances: ‐ technological : single control center « ServO », water traceability,third‐generation remote meter reading ; ‐ environmental : « Zero carbon service » ;  ‐ social: social program called « Water for all » ; – Length: 12 years – Cumul rev : €3bn

Strasbourg

Oise

Caisse desDépôts

GIMDCarré de Réunion

SEDIF– Length: 12 years – Cumul. rev.: €3bn ‐ Outsourcing / Privatization: « Biopôle » waste recovery center from the Angers Loire metropolitan area (1st VES mechanical 

biological treatment facility with composting & anaerobic digestion located in France) (waste)– Length: 6 years – Cumul. rev.: €46m 

SMICTOM Flandres Morinie (waste) – Length: 8 years – Cumul. rev.: €40m Bayonne (transportation) – Length: 7 years – Cumul. rev.: €140m

RennesOrléans

Tours

Biopôle

Lanester

AncenisAngers

Bayonne (transportation) Length: 7 years  Cumul. rev.: €140m Antibes (transportation) – Length: 5 years – Cumul. rev.:  €55m Oise semipublic mass transit authority – Integrated services system for the Oise transit hub 

(transportation) – Length: 12 years – Cumul. rev.: €29m Montluçon – Energy performance contract (energy) – Length: 10 years ‐ Engineering / Design & Build: The « Grand Prado » from the Reunion North Interdistrict Community (CINOR) (BOT) (water)

Limoges

Montluçon

The « Grand Prado » from the Reunion North Interdistrict Community (CINOR) (BOT) (water)– Length of contract: 20 years – Cumul. rev.: €270m incl. €75m for construction

Carré de Réunion in Versailles (D&B) (water) – Cumul. rev.:  €48m  CRE 3 (construction & operation of 7 new biomass cogeneration plants in Rennes, 

Strasbourg, Orléans, Tours, Angers, Lens & Limoges) (energy) Town of Lanester (Morbihan) (DBO contract for a biomass heating network)

BayonneAntibes

PARTNERSHIPS

(energy) – Operating length: 24 years 

Agreements between Veolia Environnement & Caisse des Dépôts relative to the Veolia Transport‐Transdev merger (1) (50/50 before the new group’s IPO) (transportation)

Partnership between Veolia Environnement & the Groupe Industriel Marcel Dassault (GIMD) Outsourcing / Privatization Renewals

GrandPrado

4545

Partnership between Veolia Environnement & the Groupe Industriel Marcel Dassault (GIMD) with the undertaking by GIMD to maintain its 5% holding of the stock & voting rights of Veolia Environnement for a period of 5 years

(1) Signature of the definitive agreements announced on May 5, 2010

Engineering / Design & Build Partnerships with other companies

Page 46: 2010, First Half Results

Investor Relations, 2010 first half results ‐ 06/08/10

Appendix 8: Main contracts won or renewed since the beginning of 2010

INTERNAL GROWTHLofoten

Vesteralen

since the beginning of 2010‐ Renewals: Westminster (waste)

– Length: 7 years (7‐year option) – Cumul. rev.: €298m excl. option Medway Council (1) (waste) – Length: 7 years – Cumul. rev.: €125m

NorwayNorwaySwedenSweden

Moray

Highlands

Tay

Scottish

E4

Medway Council  (waste) Length: 7 years  Cumul. rev.: €125m  Kristianstad/Skane County (transportation)

– Length: 8 years (2‐year option) – Cumul. rev.: €74m excl. option E4 (interregional line) (transportation) – Length: 8 years – Cumul. rev.: €69m Frankfurt (transportation) – Length: 6 years – Cumul. rev.: €57m Lofoten (transportation) – Length: 7 years (3‐year option) – Cumul. rev.: €31m excl. option V t l (t t ti ) L th 7 (3 ti ) C l €30 l ti

GermanyGermanyUnited KingdomUnited Kingdom

Staffordshire PolandPoland

Poznan

WaterSolutions

EstoniaEstonia

Tallinn

Kristianstad

Lodz

Vesteralen (transportation) – Length: 7 years (3‐year option) – Cumul. rev.: €30m excl. option

‐ Outsourcing / Privatization: Staffordshire County Council (1) (waste) ‐ Length: 25 years 

– Cumul. rev. for the County Council : £1bn incl.  third party waste & sale of electricity

‐ Engineering / Design & Build:

Construction of 2 boilers wholly dedicated to biomass in Lodz & Poznan (energy) GermanyGermany

Czech Rep. Czech Rep. 

United KingdomUnited KingdomWestminster

EXTERNAL GROWTH

Bielsko BialaNWR EnergyCEZ IFCFrancfurt

Medway

od Construction of 2 boilers wholly dedicated to biomass in Lodz & Poznan (energy)– Additional yearly rev. : €364m

Construction & operation of a set of solar photovoltaic fields in the region of Pouilles (energy) – Operating length: 20 years – Cumul. rev.: €160 m for construction

Acquisition (2) of several United Utilities activities in Europe (water):

BulgariaBulgaria

Sofia

ItalyItaly

Acquisition  of several United Utilities activities in Europe (water): ‐ 58% stake in Sofiyska Voda (water & wastewater for the city of Sofia in Bulgaria) ‐ 26% stake in AS Tallinna Vesi (water & wastewater for the Tallinn in Estonia)  ‐ 33% stake in Aqua SA (water & wastewater for the city of Bielsko Biala in Poland) ‐ portfolio of outsourcing, industrial engineering & infrastructure contracts in UK  ‐minority stakes in 3 PFI contracts in Scotland (Tay, Moray & Highlands)  

Acquisition of NWR Energy (leader in Czech Rep. In the mining & industrial sector)

PouillesPARTNERSHIPS

Acquisition of NWR Energy (leader in Czech Rep. In the mining & industrial sector) from the NWR group (energy)

Partnership between Veolia Energy‐Dalkia & CEZ (1er company in the Czech energy market) (energy): ‐ disposal by Dalkia International of its 15% stake in Dalkia Ceska Republica’s shares to CEZ ‐ disposal by Dalkia Ceska Republica of its 85% stake in Dalkia Usti Nad Labem to CEZ

P hi b CREED (V li ’ W & E R h C )

Outsourcing / Privatization

Interests acquisitions in others companies

Renewals

Partnerships with other companies

Engineering / Design & Build

46

Partnership between CREED (Veolia’s Waste management & Energy Research Center),the company Dalkia & Lodz Technical University (energy)

Partnership between Veolia Voda & the IFC (International Financial Corporation – World Bank) (water) ‐ 9.5% stake acquisition via a rights issue in Veolia Voda by IFC  

Partnership between Veolia Water & Scottish Water with the new JV establishment « Scottish WaterSolutions » (backed notably by Veolia Water UK) dedicated to delivering the Scottish Water investmentprogram over the 2010‐2015 period, one of the largest in the UK water industry (water)

(1) Signature announced on July 2010(2) Transaction subject notably, to the competition authorities & 

to the EBRD’s approval for Continental Europe (excl. Poland)

Partnerships with other companies

Page 47: 2010, First Half Results

Investor Relations, 2010 first half results ‐ 06/08/10

Appendix 8: Main contracts won or renewed since the beginning of 2010

INTERNAL GROWTH

since the beginning of 2010‐ Renewals: Boston (transportation) – Length: 2 years – Cumul. rev.: €486m    York (Bus Rapid Transit) (transportation)

‐ Length: 5 years – Cumul. rev.: €71m 

‐ Outsourcing / Privatization: Phoenix (transportation) – Length: 5 years – Cumul. rev.: €314m

CanadaCanada

York (bus & transport of people with special needs) (transportation)– Length: 5 years (5‐year option) – Cumul. rev.: €80m excl. option

Savannah (transportation)– Length: 5 years (5‐year option) – Cumul. rev.: €61m excl. option

Boston (trigeneration for 6 hospitals) (energy)$

United StatesUnited States Boston

Phoenix

CleantechGroup

York

Baltimore cooling network( g p ) ( gy)

– Length: 10 years – Cumul. rev.: $70m Suburbio hospital under PPP (Public‐Private Partnership) in the 

State of Bahia (energy)– Operating length: 20 years – Cumul. rev.: €107m

‐ Engineering / Design & Build:

Savannah

EXTERNAL GROWTH

g g / g Petrobras P63 (1) & Tupi (D&B) (water) – Cumul. rev.: €41m

BrazilBrazil

S b rbio Hospital

PARTNERSHIPS

Acquisition of a cooling network in Baltimore (energy)

Partnership between Veolia Environnement & Cleantech Group (leading global innovation network of start‐ups & investors in

Outsourcing / Privatization

Interests acquisitions in other companies

Renewals

Engineering / Design & Build

Suburbio Hospital

P63 & Tupi 

47

(leading global innovation network of start ups & investors in clean technologies) with the program « Veolia Innovation Accelerator » (VIA) with the objective to boost cleantech innovation by cooperating with the most innovative start‐ups

Interests acquisitions in other companies Partnerships with other companies

(1) Announced on Aug. 2010

pPetrobras

Page 48: 2010, First Half Results

Investor Relations, 2010 first half results ‐ 06/08/10

Appendix 8: Main contracts won or renewed since the beginning of 2010since the beginning of 2010

INTERNAL GROWTH

l ChinaChina‐ Renewals:

Rockingham – Manudrah (transportation)– Length: 10 years – Cumul. rev.:  €150m

/

ChinaChina

Shenzhen ‐ Engineering / Design & Build:

Shenzhen Baoan Sludge (D&B) (water) – Cumul. rev.:  €17m

Baoan

AustraliaAustralia

Rockingham

48

Renewals

Engineering / Design & Build

Page 49: 2010, First Half Results

Investor Relations, 2010 first half results ‐ 06/08/10

Appendix 8: Main contracts won or renewed since the beginning of 2010

‐ Engineering / Design & Build: Khenifra (D&B) (water) – Cumul. rev.: €16m

INTERNAL GROWTH

since the beginning of 2010

Khenifra (D&B) (water) Cumul. rev.:  €16m

PARTNERSHIPSRenault plant

Khenifra Partnership between Veolia Environnement & the Qatari Diar

MoroccoMorocco

Khenifra Partnership between Veolia Environnement & the Qatari Diar fund with the undertaking by the sovereign fund to maintain its 5% holding of the stock & voting rights of Veolia Environnement for a period of 3 years with a common ambition to work together on infrastructure & utilities projects in 

fthe Middle East & North Africa Partnership between Veolia Environnement, Renault & 

the Kingdom of Morocco to build the Renault’s Tangier plantwhich emits zero carbon & zero industrial liquid discharges(multiservices)

QatarQatarQatari Diar

(multiservices)

49

Engineering / Design & Build

Partnerships with other companies

Page 50: 2010, First Half Results

Investor Relations, 2010 first half results ‐ 06/08/10

Appendix 9: Accounting treatment of renewal expenditures according to the new amendment specifying the implementation conditions of IAS7p y g p

Veolia Environnement is generally subject to the obligation of maintaining and repairing assets of facilities it manages under public 

h bl fl d bservice contracts. In accounting terms, this obligation is reflected by renewal expenses (for assets covered by public‐private partnership service contracts in France).

li i f h d if i hIn application of the new amendment specifying the implementation conditions of IAS7 Statement of Cash Flow, renewal expenditures are booked as operating expenses as of January 1, 2010 whereas they were previously treated as maintenance2010, whereas they were previously treated as maintenance expenditures. As a  consequence, during reconciliation, in the cash flow statement between “Net income attrib to equity holders ofstatement, between  Net income attrib. to equity holders of parent” and “Net cash flow from operating  activities”, renewal expenses are no longer eliminated, as of January 1, 2010, in the “Depreciations, provisions and operating value impairments” item.The deduction of renewal expenditures from the operating cash flow and maintenance costs, has no impact on the cash position, net income, or shareholders’ equity.

50

Page 51: 2010, First Half Results

Investor Relations, 2010 first half results ‐ 06/08/10

Appendix 9: Accounting treatment of renewal expenditures according to the new amendment specifying the implementation conditions of IAS7

2008adjusted (1)

2008 adjusted (1) and adjusted for IAS 7  

Renewal        expenditures

€m

p y g p

Revenue

Operating cash flow

Recurring operating income

35,765

4,105

2,275

‐ 390

35,765

3,715

2,275

Maintenance capex

Operating cash flow(2) ‐ net investments

1,860

601

1,470

601

‐ 390

Revenue 34 551 34 551

2009published

2009 adjusted for IAS 7

Renewal        expenditures

€m

Revenue

Operating cash flow

Recurring operating income

34,551

3,956

1,932

‐ 361

34,551

3,595

1,932

Maintenance capex

Operating cash flow(2) ‐ net investments

1,632

2,357

1,271

2,357

‐ 361

51

(1) To ensure the comparability of financial years, 2008 financial statements have been adjusted: - by the divestment of Freight operations in the Transportation division in December 2009 and of Waste-to-Energy operations in the Waste Division in the United States in August 2009; which are presented in the income statement in the line item “net income from discontinued operations” according to IFRS 5;- by the reclassification into “net income from discontinued operations” of UK operations in the Transport division and of the Eolfi activities in the Energy Services division;

(2) Including the operating cash flow from discontinued operations

Page 52: 2010, First Half Results

Investor Relations, 2010 first half results ‐ 06/08/10

Appendix 10: Veolia ‐ Transdev: CalendarAppendix 10: Veolia  Transdev: Calendar 

May 5, 2010: Signature of definitive agreement for merger of Veolia Transport with Transdevg pJoint notification to competition authorities / oversight of economic concentration procedureClosing: after closing unresolved conditions and notably after approval from competition authorities

h h f l k dIPO within 12 months of closing, market conditions permitting

Page 53: 2010, First Half Results

Investor Relations, 2010 first half results ‐ 06/08/10

Investor Relations contact informationInvestor Relations contact information

Ronald Wasylec, Directeur des Relations avec les Investisseurs et Actionnaires individuelsTéléphone +33 1 71 75 12 23

e‐mail [email protected]

Xavier d’OuinceXavier d OuinceTéléphone +33 1 71 75 19 34

e‐mail xavier.d‐[email protected]

38 A Kléb 75116 P i F38 Avenue Kléber – 75116 Paris ‐ FranceFax +33 1 71 75 10 12

Terri Anne POWERS, Director of North American Investor Relations200 East Randolph Street

Suite 7900Chicago, IL 60601

Tel +1 (312) 552 2890Tel +1  (312) 552 2890Fax +1 (312) 552 2866

e‐mail [email protected]

53

http://www.veolia-finance.com