Press Release Paris, November 7, 2018

Transcription

1 Paris, Nvember 7, 2018 KEY FIGURES FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2018 (UNAUDITED IFRS FIGURES) CONTINUATION OF SUSTAINED REVENUE GROWTH AND CLEAR ACCELERATION OF RESULTS PROGRESSION REVENUE : 18,761M, +6.6% 1 FOR THE NINE MONTHS +7.8% 1 IN THE THIRD QUARTER VS +6.0% 1 IN THE FIRST SEMESTER EBITDA : 2,418M, +6.9% 1 FOR THE NINE MONTHS +9.4% 1 IN THE THIRD QUARTER VS +5.8% 1 IN THE FIRST SEMESTER 228M IN COST SAVINGS ACHIEVED DURING THE FIRST NINE MONTHS: 80M in Q3, after 78M in Q2 and 70M in Q1 CURRENT EBIT : 1,100M, GROWTH OF +9.8% % 1 IN THE THIRD QUARTER VS + 6.8% 1 IN THE FIRST SEMESTER CURRENT NET INCOME GROUP SHARE: 457M, +20% 1 AND +18.1% 1 EXCLUDING CAPITAL GAINS 2018 OBJECTIVES FULLY CONFIRMED Antine Frért, Chairman and CEO, indicated: Velia s 9-mnth results are very satisfying. Revenue grwth is sustained and slid, and prvides perating leverage resulting in a grwth in net current incme f 20% 1 as f September 30. The third quarter was particularly gd, with an acceleratin f all f ur peratinal indicatrs. Grwth in revenue and incme in the third quarter is the strngest perfrmance since 2014: revenue is thus up by 7.8% 1, EBITDA is up 9.4% 1, and current EBIT up 18.4% 1. The Grup's grwth is driven by ur cmmercial dynamism and ur cntinued strict discipline in terms f cst reductin. The cst savings achieved fr the nine mnths are perfectly in line with ur annual bjective f 300M. The cmbinatin f these perfrmances allws us t fully cnfirm ur bjectives and t be cnfident in ur utlk fr Grup cnslidated revenue was 18,761M cmpared t 17,991M represented in the first nine mnths f 2017, a grwth f 4.3% at current exchange rates, f 6.6% at cnstant exchange rates, and f 4.7% at cnstant scpe and exchange rates. 1 At cnstant exchange rates Published date at current exchange rates fr nine mnths: revenue up 4.3%, EBITDA up 5.1%, current EBIT up 7.4%, and current net incme-grup share up 15.5%, and 14.7% excluding capital gains.. 1

2 Paris, Nvember 7, 2018 Velia nce again delivered strng revenue grwth, +7.8% at cnstant exchange rates in Q3, after +5.1% in Q2, and +7.0% in Q1. Exchange rate variatin had an unfavrable impact f 419M n revenue as f September 30 (ntably M cming frm the weakening f the dllar, - 77M frm the Argentinian pes, - 67M frm the Australian dllar, and - 21M frm the British pund). The impact was - 357M in the first half f the year, and was cnsiderably reduced in Q3. The scpe effect was psitive fr 345M, principally the effect f small tuck in acquisitins cmpleted in The impact f energy prices (+ 130M) and recycled materials (- 96M f which - 119M due t lwer paper prices) ttaled + 34M and is stable cmpared t June 30. At cnstant exchange rates, the variances fr the first 9 mnths were as fllws: In France, activity increased slightly (+0.7%). Water revenue was stable (-0.1%) with price indexatin f +0.7% and vlume increase in Q3 thanks t a ht summer, but vlumes were still dwn 0.7% at the end f September. Waste grew by 1.7% (after -0.7% et the end f June) thanks t gd cmmercial mmentum and excellent vlumes (+4.3%), partially cmpensated by the decrease in recycled material prices. Eurpe excluding France grew by 7.0%. All regins exhibited grwth. Central and Eastern Eurpe grew by 5.7% (4.1% at the end f June) in spite f unfavrable climate impact in Energy, thanks t the increase in energy prices, and in Water, t gd vlumes (+0.7%) and price increases. Nrthern Eurpe registered strng grwth (+12.0%). Germany grew by 4.6% thanks t the gd mmentum in Waste activity. Benelux was up by 22.1% and the Scandinavian cuntries by 46.5%, with the impact f acquisitins made in UK/Ireland prgressed by 3.8% thanks t high availability rates fr the PFIs, gd cmmercial wins with industrial custmers, and electricity price increases. The Rest f the Wrld cntinued t grw strngly with an increase f 12.9%. Nrth America prgressed by 4.4% (+13.1% in rganic grwth) in spite f the divestiture f Industrial Services, thanks t the strng perfrmance f Energy in Q1, cmmercial successes (ntably in Energy Efficiency and Industrial Water), and gd vlumes and prices in Waste. Latin America rse by 30.2% due t tariff increases, gd cmmercial develpment, and the integratin in May 2018 f the activities f Grup Sala, a leader in hazardus and municipal waste in Clmbia. Asia grew by 18.1%. China was up by 13.5% with strng grwth in Waste (hazardus and recycling), and in Energy. Equally slid perfrmances came frm Suth Krea in Industrial Water and Japan with the startup f the Hamamatsu cncessin. The Pacific Zne grew by 13.2% thanks t the startup f new assets and targeted small acquisitins in Waste. Africa and Middle-East were up by 9.6% due t gd perfrmances in Energy services in the Middle- East. Glbal Businesses revenue increased by 4.6%, after being up 1.3% at the end f June. Hazardus Waste cntinued t exhibit strng grwth (+9.5%) thanks t gd cmmercial mmentum, an increase in treated vlumes, and gd prgressin in il recycling. Cnstructin activity picked up in the third quarter, +3.2% at Velia Water Technlgies, whse backlg als grew (+4% annually, at 1,884M). SADE revenue was up by 20.1% in the 3 rd Quarter with gd perfrmance in France. At cnstant exchange rates and excluding the impacts frm cnstructin and Energy prices, revenue was up by 5.1 in Q3, fllwing +5.3% in Q2 and +4.6% in Q1. By activity, at cnstant exchange rates: Water revenue increased by 2.9%. Waste exhibited strng grwth, +9.8% at the end f September, with excellent vlumes, up by 4.0% (+3% in Q1, +4.9% in Q2, +4% in Q3). Energy was up by 8.8% thanks t very favrable cmmercial and vlume impacts, and increases in 2

3 Paris, Nvember 7, 2018 heating and electricity prices in Nrth America and Central Eurpe, partially cmpensated by an unfavrable weather impact (- 25M) especially in Central Eurpe in Q2. The Grup nce again delivered excellent cmmercial perfrmance in the curse f the first 9 mnths f the year, f nte: In Water in France, Velia wn the wastewater cncessin fr the metrplis f Brdeaux (7 year cntract fr 352M). In Industrial markets, the Grup wn new cntracts in Energy Efficiency, including Dw Dupnt in Virginia (United States) and Arcelr Mittal at Fs-sur-Mer ( 450M, 20-year cntract). Furthermre, the rate f renewal fr expiring cntracts remains very satisfactry in all f the Grup s businesses. EBITDA was up by 6.9% at cnstant exchange rates, at 2,418M cmpared t 2,301M fr represented September (+5.1% at current exchange rates). The exchange rate variatin had a negative impact f - 41M n EBITDA, but was cmpensated by the scpe effect f + 52M.. At cnstant exchange rates, the cmbinatin f sustained revenue grwth with the cntinuing high level f cst savings ( 228M: 80M in Q3, 78M in Q2, and 70M in Q1) resulted in a 6.9% prgressin in EBITDA. Reintegrating Gabn, EBITDA grwth wuld have been 4.7% at cnstant exchange rates. Energy and recycled material prices had an unfavrable impact f - 64M n EBITDA grwth, including the squeeze effect n fuel prices and heating prices f - 20M in Q1 in Central Eurpe, the impact f lwer paper prices f - 18M, and a diesel fuel price increase f - 22M. EBITDA variances at cnstant exchange rates break dwn as fllws: in France, EBITDA was stable, in line with revenue evlutin. Water EBITDA grew thanks t the cst savings achieved. Waste shwed a decline as a result f lwer recycled paper prices. In Eurpe excluding France, EBITDA grew in spite f the price cst squeeze in Energy in Central and Eastern Eurpe. EBITDA in the Rest f the Wrld is shwing strng grwth, driven by revenue grwth. In Glbal Businesses, EBITDA rebunded, with cntinuing duble-digit grwth fr Hazardus Waste and a clear imprvement in cnstructin in Q3 (Velia Water Technlgies and SADE). Current EBIT increased by 9.8% at cnstant exchange rates, and reached 1,100M cmpared t 1,024M fr represented September 30, (+7.4% at current exchange rates). Exchange rate variatin had a negative impact f - 25M n current EBIT Current EBIT variatin benefited frm the grwth in EBITDA. Depreciatin (including principal repayment n perating financial assets) was stable at 1,233M cmpared t 1,227M fr represented September 30, Prvisin reversals were dwn and the amunt f prvisins, fair-value adjustments, and gains n industrial dispsals reached + 27M vs. + 75M fr represented September 30, The cntributin f equity-accunted jint ventures and assciates t current net incme increased by 13 M t 89 M. Current Net Incme Grup Share was 457M, cmpared t 396M fr September 30, 2017 represented results, a 20% increase at cnstant exchange rates (and +18.1% at cnstant exchange rates and excluding capital gains). 3

4 Paris, Nvember 7, 2018 Cst f net financial debt was dwn, at M (vs M) thanks t ur active debt management plicy and the reductin in the carrying cst f the cash. Other current financial expenses and incme were M cmpared t M fr September 30, 2017 represented. Capital gains n financial dispsals were 30.6M vs. 14.7M fr represented September 2017, mainly due t the divestiture f the Industrial Services activity in the United States. The current tax rate was stable at 24.3%. Grss industrial capex reached 1,134M ( 982M at the end f September 2017), with stable maintenance investments (at 467M) and grwth investments up frm 516M t 667M, in line with the acceleratin f cmmercial develpment. Net Financial Debt was up n September 30, 2018 due t the reimbursement f the hybrid debt fr 1,452M. Net financial debt reached 10,527M n September 2018; the increase vs. December 31, 2017 is due t: The reimbursement f the hybrid debt fr 1,452M An unfavrable seasnal variatin in wrking capital f 789M Net financial investments fr 283M Net financial debt will be significantly lwer than 10 billin at the end f the year, befre taking int accunt the divestiture f Transdev. Adjusted fr the hybrid debt reimbursement and cnsidering the sale f Transdev, net financial debt shuld be at a level cmparable t recent years. Fully cnfirmed bjectives ********** 2018 (at cnstant exchange rates): Cntinuatin f sustained revenue grwth EBITDA grwth greater than that f 2017 Cst reductins f mre than 300M 2019* : Cntinuatin f revenue grwth and full effect f cst savings EBITDA between 3.3bn and 3.5bn (excluding IFRIC 12), and between 3.5bn and 3.7bn including IFRIC 12 Dividend grwth in line with that f current net incme * At cnstant exchange rates (based n rates at the end f 2016) 4

5 Paris, Nvember 7, 2018 Velia grup is the glbal leader in ptimized resurce management. Present n the five cntinents and with clse t emplyees, the Grup designs and prvides water, waste, and energy management slutins that cntribute t the sustainable develpment f cmmunities and industries. Thrugh its three cmplementary business activities, Velia helps t develp access t resurces, t preserve available resurces, and t replenish them. In 2017, the Velia grup supplied 96 millin peple with drinking water and 62 millin peple with wastewater service, prduced nearly 55 millin megawatt hurs f energy and cnverted 47 millin metric tns f waste int new materials and energy. Velia Envirnnement (listed n Paris Eurnext: VIE) recrded cnslidated revenue f billin in 2017 (USD 30.1 billin). Imprtant disclaimer Velia Envirnnement is a crpratin listed n the Eurnext Paris. This press release cntains frward-lking statements within the meaning f the prvisins f the U.S. Private Securities Litigatin Refrm Act f Such frward-lking statements are nt guarantees f future perfrmance. Actual results may differ materially frm the frward-lking statements as a result f a number f risks and uncertainties, many f which are utside ur cntrl, including but nt limited t: the risk f suffering reduced prfits r lsses as a result f intense cmpetitin requiring significant financial and human resurces, the risk that changes in energy prices and taxes may reduce Velia Envirnnement s prfits, the risk that gvernmental authrities culd terminate r mdify sme f Velia Envirnnement s cntracts, the risk that acquisitins may nt prvide the benefits that Velia Envirnnement hpes t achieve, the risks related t custmary prvisins f divesture transactins, the risk that Velia Envirnnement s cmpliance with envirnmental laws may becme mre cstly in the future, the risk that currency exchange rate fluctuatins may negatively affect Velia Envirnnement s financial results and the price f its shares, the risk that Velia Envirnnement may incur envirnmental liability in cnnectin with its past, present and future peratins, as well as the ther risks described in the dcuments Velia Envirnnement has filed with the Autrités des Marchés Financiers (French securities regulatr). Velia Envirnnement des nt undertake, nr des it have any bligatin t prvide updates r t revise any frward lking statements. Investrs and security hlders may btain frm Velia Envirnnement a free cpy f dcuments it filed ( with the Autrités des Marchés Financiers. This dcument cntains nn-gaap financial measures. These nn-gaap financial measures might be defined differently frm similar financial measures made public by ther grups and shuld nt replace GAAP financial measures prepared pursuant t IFRS standards. Cntacts Grup Media Relatins Laurent Obadia Sandrine Guendul Tél : + 33 (0) sandrine.guendul@velia.cm Investr & Analyst Relatins Rnald Wasylec - Ariane de Lamaze Tél. : + 33 (0) /

6 Paris, Nvember 7, 2018 FINANCIAL INFORMATION FOR THE 9 MONTHS ENDED SEPTEMBER 30, 2018 A] PREFACE GABON Velia Africa, thrugh its 51% subsidiary, SEEG, managed the distributin f drinking water and electricity thrughut all Gabn under the terms f a cncessin agreement signed in 1997 and ext fr five years in March On February 16, 2018, the Gabnese Republic unilaterally terminated the cncessin agreement signed with the Grup s subsidiary, SEEG Sciété d énergie et d eau du Gabn, (Gabn Energy and Water Cmpany), alleging several different reasns including that f the general interest. The same day, thrugh Ministerial rder, all material and human resurces were seized by the Gabnese Republic. A further Ministerial rder als appinted an executive bdy t implement terminatin and seizure measures. On 8 March 2018, pursuant t the cncessin agreement, SEEG submitted a request fr cnciliatin t the Internatinal Centre fr Settlement f Investment Disputes ("ICSID") in an attempt t reach an amicable settlement and t be cmpensated fr the damage suffered as a result f the unlawful measures taken by Gabn. At the end f the cnciliatin perid, the parties were nt able t find an amicable slutin. Subsequently, SEEG and Velia Africa initiated an arbitratin prceedings befre ICSID n 20 September Since March 31, 2018, the cessatin f activities in Gabn has led the Grup t classify SEEG in net incme frm discntinued peratins in accrdance with IFRS 5. The interim financial statements fr the nine mnths September 30, 2017 were re-presented accrdingly t ensure cmparability, fllwing the reclassificatin f the Grup s activities in Gabn in Net incme frm discntinued peratins in accrdance with IFRS 5. CHANGES IN ACCOUNTING STANDARDS With effect frm January 1, 2018, the Grup applies IFRS 9, the new financial instruments standard, which replaces IAS 39. The new standard prvides fr the retractive applicatin f the classificatin and measurement rules applicable t financial assets and liabilities and, in particular fr the Grup, new impairment methdlgies fr trade receivables and an adjustment t the amrtized cst f renegtiated bnd issues. The impact in the incme statement n EBITDA and current EBIT f the restatements resulting frm the first-time applicatin f this standard were nt material. The applicatin as f January 1, 2018 f IFRS 15 des nt have a significant impact n the Grup s financial statements as f September 30,

7 Paris, Nvember 7, 2018 B] KEY FIGURES Change 2017 / 2018 (in millin) Nine mnths September 30, 2017 published Nine mnths September 30, 2017 re-presented Nine mnths September 30, 2018 at cnstant exchange rates Revenue 18, , , % 6.6% EBITDA 2, , , % 6.9% EBITDA margin 12.9% 12.8% 12.9% Current EBIT (1) 1, , , % 9.8% Current net incme - Grup share % 20.0% Current net incme Grup share, excluding capital gains and lsses n financial divestitures net f tax % 18.1% Industrial investments (981.7) (981.7) (1,134.5) Net free cash flw (63.0) (88.8) (297.9) Net financial debt (8,419.0) (8,411.1) (10,526.6) (1) Including the share f current net incme f jint ventures and assciates viewed as cre Cmpany activities. The main freign exchange impacts were as fllws: FX impacts fr the nine mnths September 30, 2018 (vs September 30, 2017 re-presented) % (in millin) Revenue -2.3% EBITDA -1.8% Current EBIT -2.5% Current net incme -4.5% Net financial debt -0.7%

8 Paris, Nvember 7, 2018 C] INCOME STATEMENT 1. GROUP CONSOLIDATED REVENUE Grup cnslidated revenue fr the nine mnths September 30, 2018 increased 6.6% at cnstant exchange rates t 18,761.4 millin, cmpared t re-presented 17,991.4 millin fr the nine mnths September 30, Excluding Cnstructin (2) revenue and energy price effects, revenue imprved by +5.0% (+5.1% in Q3, fllwing +5.3% in Q2 and +4.6% in Q1). As in the first half, revenue grwth was marked by favrable mmentum in the third quarter f 2018: at cnstant exchange rates Q Q Q France 0.6% -1.1% 2.6% Eurpe, excluding France 6.9% 6.7% 7.4% Rest f the wrld 14.7% 13.2% 10.7% Glbal Businesses 3.5% -0.6% 11.4% Grup 7.0% 5.1% 7.8% Third quarter grwth in France stems frm: - an upturn in Water vlumes (weather impact) and higher tariff indexatin - gd cmmercial mmentum in Waste, partially ffset by the negative impact f the change in recycled paper prices. By segment, the change in revenue cmpared t re-presented figures fr the nine mnths September 30, 2018 breaks dwn as fllws: (in millin) Nine mnths September 30, 2017 re-presented Nine mnths September 30, 2018 Change 2017 / 2018 at cnstant exchange rates at cnstant scpe and exchange rates France 4, , % 0.7% 0.7% Eurpe, excluding France 6, , % 7.0% 2.8% Rest f the wrld 4, , % 12.9% 11.9% Glbal Businesses 3, , % 4.6% 3.2% Other % -12.0% -12.0% Grup 17, , % 6.6% 4.7% (2) Cnstructin revenue encmpasses the Grup s engineering and cnstructin activities (mainly thrugh Velia Water Technlgies and SADE), as well as cnstructin cmpleted as part f perating cntracts. 8

9 Paris, Nvember 7, 2018 Revenue increased +0.7% in France at cnstant scpe cmpared t re-presented figures fr the nine mnths September 30, 2017; Water revenue slipped -0.1%, while Waste revenue increased +1.6% at cnstant scpe. Water revenue fell -0.1% cmpared t re-presented figures fr the nine mnths September 30, 2017, due t a -0.7% in vlumes (+0.7% in Q3 against -1.5% at the end f June), partially ffset by higher tariff indexatin and increase f cnstructin revenue; Waste revenue increased +1.6% at current exchange rates and cnstant scpe cmpared t represented figures fr the nine mnths September 30, 2017: lwer recycled paper prices (-29% r - 55 millin) were ffset by higher landfill and incineratin vlumes and cmmercial activity. Eurpe excluding France grew +7.0% at cnstant exchange rates cmpared t re-presented figures fr the nine mnths September 30, 2017, with slid mmentum in the majrity f regins: In the United Kingdm/Ireland zne, revenue increased +3.8% at cnstant exchange rates t 1,632.4 millin, thanks t very gd PFI availability, higher electricity tariffs, industrial service cntract wins, further excellent cmmercial cllectin results and the gd perfrmance f industrial custmer activities. The fall in recyclate sales remains limited (- 10 millin); In Central and Eastern Eurpe, revenue increased +5.7% at cnstant exchange rates cmpared t represented figures fr the nine mnths September 30, 2017 t 2,187.7 millin. The unfavrable weather impact (- 37 millin) was mre than ffset by: in Energy: higher vlumes and tariffs (+ 40 millin), in Water: an increase in inviced water vlumes (+0.7%, i.e. + 6 millin), higher tariffs in mst cuntries f the zne (impact f + 19 millin), as well as increasing Cnstructin activities, in Waste, the impact f targeted acquisitins in 2017 (plastic recycling in Hungary and Industrial Waste cllectin in the Czech Republic); In Nrthern Eurpe, revenue increased +12.0% at cnstant exchange rates cmpared with the represented prir year perid t 1,966.5 millin. This strng grwth was mainly driven by 2017 acquisitins in Nrdic cuntries and the Netherlands. Germany, the main cntributr ( 1,357.2 millin) reprted revenue grwth f +4.6%: Waste activities were penalized by lwer recyclate prices (- 33 millin), ffsetting the favrable impact f 2017 acquisitins, while in Energy, higher tariffs ffset the fall in vlumes sld. Strng grwth in the Rest f the wrld f +12.9% at cnstant exchange rates cmpared t represented figures fr the nine mnths September 30, 2017: Revenue rse +13.1% at cnstant scpe and exchange rates t 1,480.9 millin in Nrth America, i.e. an increase f +4.4% at cnstant exchange rates, mainly due t strng grwth in Energy (+27% at cnstant exchange rates tied t price and vlume increases fllwing cld weather at the beginning f the year), cmmercial wins in Energy (Dw Dupnt cntract in the United States), the cmmissining f Bimass sites in Canada, higher vlumes in hazardus waste and cmmercial wins in Industrial Water; Strng revenue grwth in Latin America (+30.2% at cnstant exchange rates) t millin, thanks in part t cmmercial develpments in Ecuadr, Chile, Brazil and the integratin frm May, 2018 f Grup Sala s activities in Clumbia ( 54 millin); Revenue in Asia increased by +18.1% at cnstant exchange rates t 1,259.3 millin. Strng revenue grwth in China (+13.5%) was due t increased Waste vlumes, cnstructin revenue (landfill site) and the start-up f the Cangzhu incineratin plant. The rest f the zne is driven by strng cmmercial dynamism: start f peratins n the Hamamatsu cncessin and develpment f EPC activities in Japan, and develpment f industrial water treatment activities in Krea (KleanNara cntract); 9

10 Paris, Nvember 7, 2018 The Pacific zne recrded +13.2% revenue grwth at cnstant exchange rates year-n-year (represented figures), due t the cmbined impact f higher industrial water vlumes, cnstructin vlumes, the start-up f new Waste assets (including Wdlawn MBT) and targeted tuck-ins frm 2017; In Africa/Middle East, revenue increased +9.6% at cnstant exchange rates, with favrable vlume, electricity sales and cnstructin impacts in Mrcc and strng cmmercial develpment in the Middle East (energy services in the tertiary sectr). Glbal businesses: revenue increased +4.6% at cnstant exchange rates versus the re-presented prir-year perid: Hazardus Waste activities increased by +9.5% at cnstant exchange rates, thanks t higher vlumes prcessed (tied in part t Greater Paris cnstructin wrk) and grwth in il recycling activities; Velia Water Technlgies activities enjyed an upsurge in the third quarter (+3.2% at cnstant exchange rates), but remain dwn by -5.9% at cnstant exchange rates ver the first nine mnths f the year. The Velia Water Technlgies backlg is up +4% cmpared with Q at 1,884 millin. Sade als recrded strng Q3 grwth (+20%) driven by excellent activity in France and Telecm netwrk wrksites. The increase in revenue between 2017 and 2018 breaks dwn by main impact as fllws: The freign exchange impact n revenue was millin (-2.3% f revenue) and mainly reflects fluctuatins in the U.S. dllar ( millin), the Argentine pes ( millin), the Australian dllar ( millin) and the pund sterling ( millin). The cnslidatin scpe impact f millin relates t: Develpments in 2017: integratin f Crvara industrial assets and Hans Anderssn in Scandinavia (+ 135 millin) and the recycling and plastic waste businesses f Van Scherpenzeel Grpe B.V. in the Netherlands (+ 43 millin) as well as the acquisitin in Germany f Eurlgistik in September 2017 (+ 25 millin) and in Krea f Hanbul (+27 millin); 2018 transactins: sale f the Industrial Services divisin in the United States (- 130 millin) and acquisitin f Grup Sala in Clmbia (+ 54 millin). Energy and recyclate prices had an impact f + 34 millin, with ntably an increase in energy prices f millin (primarily in the United States and Nrthern Eurpe), ffset by a drp in recyclate prices (- 96 millin, including millin fr paper). Cmmercial mmentum imprved significantly (Cmmerce/Vlumes impact) t millin: Vlumes increase f millin, in line with a +4% rise in waste vlumes ver nine mnths (France, United Kingdm, Latin America and Asia), vlume grwth in hazardus waste partially ffset in Energy by lwer vlumes in electricity and gas sld in Germany; A cmmercial effect f millin, due t numerus industrial cntract wins in Eurpe (in Waste in Germany and in Iberia with new energy efficiency cntracts), the United States (cntract wins in Industrial Water and Energy), Latin America (cntract wins in Water in Argentina and Clumbia and in Waste in Chile and Brazil) and in multi-industrial activities (Arcelr cntract); Cnstructin activities f millin (versus + 48 millin at the end f June) which benefited frm numerus prjects in the Rest f the Wrld and a upsurge f activity by Velia Water Technlgy and Sade n the third quarter; Weather impact in Energy f - 25 millin (unfavrable impact in Central Eurpe frm the secnd quarter, partially ffset by a psitive weather impact in Nrthern America in first quarter). 10

11 Paris, Nvember 7, 2018 Favrable price effects (+ 153 millin) are tied t psitive tariff indexatin in France and the United Kingdm in Waste, in Central Eurpe in Water, in Nrth America in Water and Hazardus Waste, in Mrcc in electricity, and the impact f higher prices in Asia and Latin America. By business, the change in revenue cmpared with represented September 30, 2017 breaks dwn as fllws: Change 2017 / 2018 (in millin) Nine mnths September 30, 2017 re-presented Nine mnths September 30, 2018 at cnstant exchange rates at cnstant scpe and exchange rates Water 7, , % 2.9% 2.9% Waste 6, , % 9.8% 4.8% Energy 3, , % 8.8% 8.5% Grup 17, , % 6.6% 4.7% WATER Water revenue increased by +2.9% at cnstant exchange rates and at cnstant scpe and exchange rates cmpared t re-presented figures fr the nine mnths September 30, This imprvement can be explained as fllws: WASTE - A psitive cmmerce / vlume impact f +0.3% excluding cnstructin activity, tied t higher vlumes in Central Eurpe (+0.7%) and cmmercial mmentum in the Rest f the Wrld (Nrth America and Latin America), ffsetting reduced vlumes in France (-0.7%: negative weather impact in the secnd quarter); - A psitive price impact f +1.3% with higher tariffs ntably in Central Eurpe and Water price indexatin in France (+0.7%); - steady cnstructin activity (+1.2%), up in the Rest f the Wrld (particularly in the Pacific and Middle East), cupled with a pick-up f cnstructin activity in Velia Water Technlgies and Sade in third quarter. Waste revenue rse cnsiderably by +9.8% at cnstant exchange rates cmpared with re-presented figures fr the nine mnths September 30, 2017 (+4.8% at cnstant cnslidatin scpe and exchange rates), due t: - A cnslidatin scpe impact f +5.0% tied t acquisitins in Germany, Sweden and Asia, ffset by the sale f the Industrial Services divisin in the United States (- 123 millin); - A cmmerce / vlume impact f +4.0% (excluding cnstructin), with higher waste cllectin and treatment vlumes in France (+4.3%) and in the Rest f the Wrld (United States, Asia, Latin America and Australia) and a strng increase in hazardus waste vlumes prcessed; - A psitive price effect f +1.6% (mainly in Latin America, the United Kingdm and Asia); 11

12 Paris, Nvember 7, The negative impact f recyclate prices (-1.4%), ntably due t the fall in paper prices. ENERGY Energy revenue rse +8.8% at cnstant exchange rates cmpared with re-presented figures fr the nine mnths September 30, 2017 (+8.5% at cnstant cnslidatin scpe and exchange rates). This imprvement can be explained by: - A cmmercial and vlume effect f +4.8% (excluding Cnstructin), with higher energy vlumes in Central Eurpe and Africa and the Middle East (ENOVA cntract win) and the start-up f new cntracts in Canada and in multi-utility industrial activities; - A psitive price effect (+1.9%) with a strng increase in heating and electricity prices in Nrth America and Central Eurpe (Pland); - A negative weather impact (-0.7%), particularly in Central Eurpe in the secnd quarter; - A cnslidatin scpe impact (+0.3%) 2. EBITDA Grup cnslidated EBITDA fr the nine mnths September 30, 2018 was 2,418.1 millin, up 6.9% at cnstant exchange rates n the prir-year perid (re-presented). The EBITDA margin increased frm 12.8% in the nine mnths September 30, 2017 (re-presented) t 12.9% in the same perid t September 30, In France, EBITDA slightly imprved : In Water, cst savings impacted psitively n EBITDA and ffset the negative impact f lwer vlumes (- 7 millin) and the cntinued price squeeze, mderated by better price indexatin, In Waste, EBITDA fell fllwing a decrease in recycled paper prices (-29% fall in the average selling price f recycled paper and cardbard cmpared t September 2017) and higher diesel prices (- 11 millin) partially ffset by grwing vlumes in landfills; The imprvement in EBITDA in Eurpe excluding France was the result f several impacts: In Central and Eastern Eurpe, EBITDA decreased due t higher fuel csts and a price squeeze in Energy in the Czech Republic and Pland and an unfavrable weather effect (- 15 millin); this decrease was partially ffset by the psitive impact f higher Water tariffs in Bulgaria, the Czech Republic and Rmania and perating efficiency gains, Slid grwth in EBITDA in the United Kingdm, with imprved availability f incineratin plants and efficiency gains; lwer recycled paper prices were ffset by higher ferrus metal prices, Increased EBITDA in Nrthern Eurpe, due t scpe transactins perfrmed in 2017 in Scandinavia, the Netherlands and Germany, and further perating efficiency gains in Belgium and Germany; Cntinued strng EBITDA grwth in the Rest f the wrld: Imprvement in the United States, mainly due t favrable price and vlume effects in Energy (weather impact in Q1 and higher electricity prices), 12

13 Paris, Nvember 7, 2018 Higher EBITDA in Latin America, ntably due t gd perfrmance in Waste in Brazil and Argentina and in Water in Ecuadr and Clmbia, Sustained EBITDA grwth in Asia, driven by grwth in municipal water in Japan and new hazardus waste cntracts in China (Cangzhu and Changsha), partially ffset by negative weather impacts, higher cal prices in China and end f the Chengdu BOT cntract; In the Glbal businesses segment, very gd hazardus waste perfrmance (including the turnarund f the il recycling business) was accmpanied by a sharp rebund in cnstructin activities in Q in Velia Water Technlgies. The increase in EBITDA between 2017 and 2018 breaks dwn by impact as fllws: The freign exchange impact n EBITDA was millin and mainly reflects fluctuatins in the U.S. dllar ( millin), the Argentine pes (- 7.9 millin), the Australian dllar (- 6.2 millin), the Brazilian real (- 5.0 millin), the Chinese renminbi (- 3.1 millin) and the pund sterling (- 2.9 millin). The cnslidatin scpe impact f + 52 millin partially relates t develpments in 2017 and ntably the integratin f Crvara industrial assets and Hans Anderssn recycling assets in Scandinavia and the acquisitin f Eurlgistik in Germany and the Van Scherpenzeel Grpe B.V. in the Netherlands, as well as the acquisitin in 2018 f Grup Sala in Clmbia. Cmmerce and vlume impacts ttaled + 89 millin, thanks t rganic revenue grwth bsted by strng cmmercial develpment and higher vlumes, ntably in Waste. The Weather impact n EBITDA was - 23 millin, with the impact f an extremely mild secnd quarter in Central Eurpe and significant rain in spring nly partially ffset in France and Central Eurpe in the third quarter. Energy and recyclate prices had a negative impact n EBITDA (- 64 millin), due t a price squeeze tied t higher fuel csts (- 29 millin), negative impact f recyclates (- 13 millin) mainly n paper prices (- 18 millin) and higher diesel csts in Waste (- 22 millin). The price squeeze impact f - 93 millin mainly relates t weak price indexatin in Water and Waste, which nly partially cvers pressure n wage increases and ther csts. Cst savings plans cntributed 228 millin. These savings mainly cncern perating efficiency (50%) and purchasing (30%) and were achieved acrss all gegraphical znes: France (27%), Eurpe excluding France (26%), Rest f the wrld (24%), Glbal businesses (19%) and Crprate (4%). The guidance f 300 millin fr fiscal year 2018 is cnfirmed. 13

14 Paris, Nvember 7, CURRENT EBIT Grup cnslidated current EBIT fr the nine mnths September 30, 2018 was 1,099.8 millin, up 9.8% at cnstant exchange rates n the nine mnths September 30, 2017 re-presented. The recnciling items between EBITDA and current EBIT fr the nine mnths September 30, 2018 and 2017 are as fllws: (in millin) Nine mnths September 30, 2017 re-presented Nine mnths September 30, 2018 EBITDA 2, ,418.1 Renewal expenses (201.3) (200.8) Depreciatin and amrtizatin (*) (1,226.6) (1,233.2) Prvisins, fair value adjustments & ther: Current impairment f prperty, plant and equipment, intangible assets and perating financial assets 9.0 (1.3) - Net charges t perating prvisins, fair value adjustments and ther Capital gains r lsses n industrial divestitures Share f current net incme f jint ventures and assciates Current EBIT 1, ,099.8 (*) Including principal payments n perating financial assets (OFA) f millin fr the nine mnths September 30, 2018 (cmpared t represented millin fr the nine mnths September 30, 2017). The imprvement in current EBIT at cnstant exchange rates reflects: EBITDA grwth; The increase in depreciatin and amrtizatin charges at cnstant exchange rates ( millin r +4.8% cmpared t the nine mnths September 30, 2017), in line with the develpment f the Grup s activities and cnslidatin scpe impacts; The decline in principal payments n perating financial assets in 2018 (frm millin t millin) mainly relating t cntract changes in China and Suth Krea; The unfavrable change in prvisins, fair value adjustments An imprvement in the cntributin f equity-accunted entities. The freign exchange impact n Current EBIT was millin and mainly reflects fluctuatins in the U.S. dllar (- 8.1 millin), the Argentine pes (- 6.5 millin), the Brazilian real (- 3.2 millin), the Chinese renminbi (- 2.9 millin), the Australian dllar (- 1.9 millin) and the pund sterling (- 1.6 millin), partially ffset by favrable fluctuatins in the Czech crwn (+ 6.0 millin). 14

15 Paris, Nvember 7, NET FINANCIAL EXPENSE The cst f net financial debt fell t millin fr the nine mnths September 30, 2018, cmpared t millin fr the nine mnths September 30, 2017 re-presented. The net financing rate is 4.13% cmpared t 5.02% fr the nine mnths September 30, 2017 re-presented. This decrease is mainly due t the benefits f active debt management and a decrease in cash carrying csts. Other financial incme and expenses ttaled millin fr the nine mnths September 30, 2018, cmpared t millin fr the nine mnths September 30, 2017 re-presented. These expenses include interest n cncessin liabilities (IFRIC 12) f millin and the unwinding f discunts n prvisins f millin, an imprvement cmpared t September 30, Capital gains r lsses n financial divestitures ttaled 30.6 millin fr the nine mnths September 30, 2018 (including the capital gain n the dispsal f Industrial services in the United States f 36 millin and n the dispsal f a landfill site in China and fair value adjustments t assets held fr sale in Eurpe excluding France), cmpared t 14.7 millin fr the nine mnths September 30, 2017 re-presented. 5. INCOME TAX EXPENSE The current incme tax expense is millin. This amunt includes taxatin f the capital gain n the dispsal f the Industrial Services divisin in the United States f USD 9 millin. The current incme tax rate fr the nine mnths September 30, 2018, excluding capital gains n dispsals, is 24.3% (unchanged n September 30, 2017 re-presented). 6. CURRENT NET INCOME Current net incme attributable t wners f the Cmpany was millin fr the nine mnths September 30, 2018, cmpared t 396 millin fr the nine mnths September 30, 2017 re-presented. Excluding capital gains and lsses n financial divestitures net f tax and minrity interests, current net incme attributable t wners f the Cmpany rse 18.1% at cnstant exchange rates t millin frm millin fr the nine mnths September 30, 2017 re-presented. D] FINANCING Net free cash flw was millin fr the nine mnths September 30, 2018, cmpared t - 89 millin fr the nine-mnths September 30, 2017 re-presented. Free Cash Flw evlutin versus September 30, 2017 re-presented reflects essentially an increase f net capital expenditures, a change in perating WCR in line with the develpment f Grup activities. Overall, net financial debt is - 10,527 millin cmpared t - 9,285 millin (including f the redemptin f the hybrid debt) as f December 31, 2017 re-presented. Evlutin f net financial debt versus December 31, 2017 is mainly explained by Free Cash Flw evlutin (with negative impact f peratinal WCR because f seasnality), net financial investment ( 283 millin) and payment f dividends ( 634 millin). In additin t the change in net free cash flw, net financial debt was impacted by favrable exchange rate fluctuatins ttaling + 11 millin as f September 30, 2018 cmpared with December 31,

16 Paris, Nvember 7, 2018 APPENDIX Recnciliatin f 2017 published data fr the 9 mnths September 30, 2017 with represented data (in m) 30 September 2017 published IFRS 5 IFRS 9 Adjustement (2) Adjustment 30 September 2017 represented Revenue 18, ,0 17,991.4 EBITDA 2, ,301.3 Current EBIT (1) 1, ,024.3 Current net incme Grup share Grss industrial investments Net free cash-flw Net financial debt -8, ,411 (1) Including the re-presented share f current net incme f jint ventures and assciates fr the three mnths September 30, (2) Figures fr the six mnths September, 2017 were re-presented accrdingly t ensure cmparability, fllwing the reclassificatin f the Grup s activities in Gabn in Net incme frm discntinued peratins in accrdance with IFRS 5. (in m) 30 September 2017 published IFRS 5 Adjustment IFRS 9 Adjustment 30 September 2017 represented France 4, ,0 0,0 4,036.8 Eurpe excluding France 6, ,0 0,0 6,103.8 Rest f the Wrld 4, ,0 4,585.9 Glbal businesses 3, ,0 0,0 3,240.0 Other ,0 0, Ttal Revenue 18, ,0 17,