Key figures at March 31, 2011

Transcription

1 Key figures at March 31, 2011 Conference call on May 5, 2011 Pierre François Riolacci Chief Financial Officer

2 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 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 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

3 Table of contents Impact of foreign exchange variation Accounting impact of Veolia Transport / Transdev combination Key figures at March 31, 2011 Breakdown of revenue by division Commercial dynamics Operating trends by division Free Cash Flow Net financial debt at March 31, objectives Appendices 3

4 Impact of FX on first 3 months 2011 accounts Depreciation of the euro 3M 2011 / 3M 2010 Average rate Closing rate Australian dollar +11.2% +6.8% Czech koruna +5.8% +3.5% U.K. pound sterling +3.8% +0.7% U.S. dollar +1.2% 5.4% Impact on the Company s main figures Revenue Adjusted operating cash flow Adjusted operating income + 128M + 16M + 10M Decline in net debt (at end of period rates) 199M 4

5 Accounting impact of Veolia Transport / Transdev combination In accordance with IFRS 3 revised and IFRS 5, and following Veolia s loss of control of the Transport division (closure March 3, 2011): The former Veolia Transport operations are reclassified to discontinued operations for the months of January and February The new entity Veolia Transdev (VTD) is consolidated by proportional integration at 50% beginning March 3, Divestment, by Veolia Transport and prior to the closing at March 3, 2011, of certain French and Swiss transportation assets to RATP. Evaluation of opening balance sheet is in process. Impact on the accounts at March 31, 2011 The revenue associated with the new entity VTD (at 50%) for the month of March 2011 amounted to million. Net financial debt of the Group is reduced by 533 million primarily due to the refinancing of the new Veolia Transdev entity at 50%, due to consolidation by proportional integration by the Caisse des Dépôts and Veolia Environnement. If the combination had not taken place, the revenue of the former Veolia Transport operations accounted for at 100% for the first three months of 2011 would have been 1,377 million compared to 1,356 million published for the same period ending

6 Key figures for 1 st quarter 2011 In M Q published Q re presented (1) Q Current exchange rates Constant exchange rates Revenue 8, , , % +9.6% (2) Adjusted operating cash flow 1, % +2.0% Adjusted operating cash flow margin 11.8% 13.1% 12.2% Adjusted operating income % 2.6% Adjusted operating income margin 7.5% 8.8% 7.8% Operating income % Free Cash Flow Net financial debt 15,218 (3) 15,218 (3) 14,511 (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 the German operations in the Energy Services division, the Norwegian operations in the Environmental Services division and the Netherlands operations in the Water division; - for the reclassification into net income from discontinued operations of the entire Veolia Transport operations (for the accounts in the three months ending March 31, 2010 of: 1,355.9 million in revenue, 58.9 million in adjusted operating cash flow, and 5.0 million in adjusted operating income) - for the reclassification into continuing operations of the Renewable Energies business within the Energy Services division. (2) At constant scope and exchange rates: +3.4% (3) Net financial debt at December 31,

7 Breakdown of revenue by division In M 7,330 8,159 2,918 3,021 Water Δ current FX rates +3.6% Δ constant FX rates +1.8% Δ excl. scope & FX 1.4% 2,113 2,361 Environ. Services +11.8% +9.3% +10.2% Energy +6.3% +5.3% +3.3% Transport (2) 100% 0% 0% 2,299 2,443 Total Company +11.3% +9.6% +3.4% Q re-presented (1) Q (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 the German operations in the Energy Services division, the Norwegian operations in the Environmental Services division and the Netherlands operations in the Water division; - for the reclassification into net income from discontinued operations of the entire Veolia Transport operations (for the accounts in the three months ending March 31, 2010 of: 1,355.9 million in revenue, 58.9 million in adjusted operating cash flow, and 5.0 million in adjusted operating income) - for the reclassification into continuing operations of the Renewable Energies business within the Energy Services division. (2) Veolia Transdev Q1 revenue is a scope effect 7

8 Commercial dynamics Thames Water in the United Kingdom awarded Vennsys Limited, a consortium led by Veolia Water U.K., a contract to manage all its water metering services, encompassing meter installation, meter reading and the implementation of automatic meter reading by radio communication. This 10 year contract represents total estimated revenue of approximately 240 million; In Kuwait, Veolia Water signed a contract to design, build and operate a new reverse osmosis desalination unit at the Az Zour South plant for estimated cumulative revenue of 81 million; In the United States, Veolia Water signed a contract to design and build a system to treat mine water in West Virginia and a contract to design, build and operate a produced water facility for an oilfield in California.These two contracts should generate estimated cumulative revenue of $150 million; Veolia Environmental Services has been designated as the preferred bidder for the Private Finance Initiative (PFI) contract for treatment of up to 350,000 tons of residual waste per year for Hertfordshire county in the United Kingdom for 25 years; The contract for street cleaning and waste collection and recycling for the Haringey district of London was awarded to Veolia Environmental Services for a duration of 14 years and estimated cumulative revenue of over 270 million; Award of the operations and maintenance contract for the Centre Hospitalier Universitaire de Montréal (CHUM) for 30 years by Dalkia and estimated cumulative revenue of 1.6 billion Canadian dollars (roughly 1.2 billion); In Abu Dhabi, the contract awarded to the Energy Services division for the design, build and operation of three central cooling facilities for 29 years and estimated cumulative revenue of 373 million; Contract award in the transportation division for operation of the bus network in Macao, via a joint venture with RATP Développement in Asia, for 7 years and estimated cumulative revenue of 75 million (Veolia share). 8

9 Evolution of Water division revenue M 4, % 3.7% +1.5% +4.3% +3.5% 3,500 3,000 2, ,000 1,500 1, ,150 2,132 2,161 2,166 2,194 2,257 2,284 2,372 2,132 2,237 0 Q Q Q Q Q Q Q Q Q Q Operations Works excl. M/F/R M/F/R *Marafiq / Fujairah / Ras Laffan 9

10 Environmental services: Confirmed progression of volume growth +11.8% at current FX, +9.3% at constant FX and +10.2% at constant scope and FX Q VES Organic revenue growth (%) +10.2pts Of which Recycled materials (price, volumes) +4.8pts Industrial waste volumes (1) +2.3pts Municipal waste volumes +0.9pt Price increases +0.9pt Others +1.3pt (1) Non hazardous industrial waste, and hazardous waste and associated services Environmental Services quarterly Revenue growth % 2,237 2,401 2, % 6.5% 2, % 2, % 10.0% 8.0% ,193 2, % ,111 2,113 2, % % 2.0% % T1 T2 T3 T4 T1 n 1 n Organic Growth 10

11 Strong free cash flow: + 539M versus + 45M in Q Adjusted operating cash flow increased 3.7% to 997M Controlled gross investments: 528M 840M in asset divestments (versus 279M in Q1 2010), of which: Impact of Veolia Transport / Transdev combination Divestment of sorting and recycling activities in Norway Seasonal change in working capital requirements: 571M 11

12 Reduction in net financial debt In M 18,000 16,000 14,000 16,819 16,827 15,902 16,027 15,765 15,377 15,127 15,218 14,511 12,000 10, Mar Jun Sep dec Mar Jun Sep Dec Mar

13 Confirmation of 2011 objectives GROWTH Continued organic growth Adjusted operating income in the 4% to 8% range* Net income improvement FINANCIAL DISCIPLINE A program of asset divestments of at least 1.3 billion Efficiency Plan cost savings of at least 250M in 2011 Positive free cash flow after dividend payment * Excluding the impact of Veolia Transport / Transdev combination 13

14 Appendix 1: Main 1Q 2010 re presented figures (1) ( M) At March 31, 2010 published At March 31, 2010 Represented (1) Revenue 8, ,329.7 Adjusted operating Cash Flow 1, Adjusted operating income Free Cash Flow (2) (1) 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 German operations in the 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 net income from discontinued operations of the Transportation Division as a whole (key P&L indicators amounted 1,355.9M in revenue, 58.9M in adjusted operating cash flow and 5.0M in adjusted operating income as of March 31,2010); the impact of the reclassification into continuing operations of the renewable energies activities in the Energy Services division. (2) 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

15 Appendix 2: Evolution of recycled raw material prices janv-08 févr-08 mars-08 avr-08 mai-08 juin-08 juil-08 août-08 sept-08 oct-08 nov-08 déc-08 janv-09 févr-09 mars-09 avr-09 mai-09 juin-09 juil-09 août-09 sept-09 oct-09 nov-09 déc-09 janv-10 févr-10 mars-10 avr-10 mai-10 juin-10 juil-10 août-10 sept-10 oct-10 nov-10 déc-10 janv-11 févr-11 mars-11 avr-11 Cardboard Paper Metals

16 Investor relations contact information Ronald Wasylec, Directeur des Relations avec les Investisseurs et Actionnaires individuels Téléphone e mail ronald.wasylec@veolia.com Ariane de Lamaze Téléphone e mail ariane.de lamaze@veolia.com 38 Avenue Kléber Paris France Fax Terri Anne Powers, Director of North American Investor Relations 200 East Randolph Street Suite 7900 Chicago, IL Tel +1 (312) Fax +1 (312) e mail terri.powers@veoliaes.com 16