5. Investor Relations Key Figures as of March 31, 2013
Key figures for the three months ended March 31, 2013
In €M March 31,
2012
published
March 31, 2012
re‐presented(1)
March
31, 2013
Δ Δ at
constant
FX
Revenue 7,826 5,991 5,757 ‐3.9% ‐3.2%(2)
Adjusted operating cash flow 900 581 542 ‐6.7% ‐6.3%
Operating income 544 303 290 ‐4.3%
Operating income after share of net
income of equity‐accounted entities(3) ‐ 412 403 ‐2.0%
Adjusted operating income(4) 544 411 405 ‐1.5% ‐1.2%
Gross investments 656 472 335
Free cash flow ‐519 ‐339 +594
Net Financial Debt 15,021 12,746 10,106
Loans granted to joint ventures ‐ 3,587 3,304
Adjusted Net Financial Debt ‐ 9,159 6,802
5
(1) Q1 2012 re‐presented for IFRS 5, 10 and 11 (IFRS 5 adjustment applies only to the income statement, see Appendix 1)
(2) ‐3.0% at constant consolidation scope and exchange rates
(3) Including the share of net income of joint ventures and associates
(4) Including the share of adjusted net income of joint ventures and associates
7. Investor Relations Key Figures as of March 31, 2013
Environmental Services
Revenue declined by 4.6% at constant scope & exchange rates to €1,932M
• Price and volumes of recycled materials ‐2.5%
• Waste volumes / activity levels ‐3.5%
• Service price increases +0.9%
• Other +0.5%
• Currency effect ‐0.6%
• Scope ‐1.2%
Revenue variation 3M2013 / 3M2012: ‐6.4%
Evolution of Revenue by country:
• France: decline in activity (difficult macro‐economic environment and repeated bad weather in the
first quarter of 2013) and unfavorable impact of recycled raw material prices
• Germany: impact of the decline in prices and volumes of recycled raw materials and decline in the
industrial and commercial sector
• UK: increase in PFI construction revenue and higher tonnages incinerated
• USA: increase in hazardous waste treatment and decline in industrial services
• Asia Pacific: good performance in Australia
Decline in adjusted operating cash flow and adjusted operating income(1), despite the impact of the
Convergence Plan, related to:
• Decline in volumes
• The unfavorable impact of lower prices and volumes of recycled raw materials
7
(1) Including the share of net income of joint ventures and associates
10. Investor Relations Key Figures as of March 31, 2013
Continued reduction in Net Financial Debt
Net financial debt reduction of €716M
• CAPEX of €335M, versus €472M€ in Q1 2012
• Variation in working capital of ‐€675M
• Hybrid +€1,470M
Adjusted net financial debt of €6.8bn versus re‐presented €7.8bn at December
31, 2012
Divestments: €5bn completed in 2012(1) & €1bn objective in 2013(2)
• Mars 7, 2013: Signature of purchase agreement for the divestment of Moroccan Water
activities to the Actis investment fund (€370M)
€88M in associated debt reduction expected in 2013
• March 21, 2013: Signature of purchase agreement for the divestment of Portuguese
Water activities to Beijing Enterprise Water Group (€95M)
10
(1) Before application of IFRS 10 & 11 and including the debt reduction of €1.4bn related to the change to equity method accounting for the Berlin Water
contract on October 31, 2012
(2) Including repayments of loans granted to joint ventures related to divestments
15. Investor Relations Key Figures as of March 31, 2013
15
Mid‐term objectives confirmed
(1) Including the debt reduction of €1.4 billion related to the change to equity method accounting for the Berlin Water contract and repayment
of loans to joint ventures
(2) Before closing exchange rate impact
(3) Net of implementation costs, of which due to the new accounting treatment of joint ventures, ~80% will benefit adjusted operating income
(4) Subject to the approval of Veolia’s Board of Directors and the Annual General Shareholders Meeting
(5) In cash or shares
(6) Adjusted net financial debt/ (Operating cash flow before changes in working capital + OFA Repayments)
(7) 5%
2012‐2013:
Transformation
Period
• €6 billion in divestments (1)
• 2013 net financial debt, under new IFRS standards:
Net Financial Debt between €8bn and €9bn(2)
Adjusted Net Financial Debt between €6bn and €7bn(2)
• Cost reductions:
in 2013: €170M net impact(3)
• Extended dividend commitment of €0.70 (4) per share in 2013(5) and
2014
Beginning in
2014:
New
Veolia
• Organic revenue growth > 3% per year (mid‐cycle)
• Adjusted operating cash flow growth >5% per year (mid‐cycle)
• Leverage ratio(6) of 3.0x(7) beginning in 2014
• Mid‐term: Payout ratio in line with historic level
• Cost reductions in 2015: €750M net impact(3)
15
23. Investor Relations Key Figures as of March 31, 2013
Appendix 6: Environmental Services revenue versus
Industrial Production
23
Industrial Production and Veolia Environmental Services Organic Growth
-20%
-15%
-10%
-5%
0%
5%
10%
15%
Q1
2008
Q2
2008
Q3
2008
Q4
2008
Q1
2009
Q2
2009
Q3
2009
Q4
2009
Q1
2010
Q2
2010
Q3
2010
Q4
2010
Q1
2011
Q2
2011
Q3
2011
Q4
2011
Q1
2012
Q2
2012
Q3
2012
Q4
2012
Q1
2013
Veolia Enviromental Services Organic Growth
Industrial Production
Y-Y Growth Rate (in %) vs. previous year's quarter
Weighted average industrial production indices for 4 key countries, including SARP and SARPI: France, UK (excluding PFI contracts), Germany,
and North America (excluding U.S. solid waste beginning in 2012)
Sources : OECD Extract Database; INSEE (France, February 2013); Federal Ministry of Economics and Technology (Germany, February 2013);
average of January‐February when March figures not available (France, UK, Germany)