2. Important disclaimer
Veolia Environnement is a corporation listed on the NYSE and Euronext Paris. This document contains
“forward-looking statements” within the meaning of the provisions of the U.S. Private Securities Litigation
Reform Act of 1995. Such forward-looking statements are not guarantees of future performance. Actual
results may differ materially from the forward-looking statements as a result of a number of risks and
uncertainties, many of which are outside our control, including but not limited to: the risk of suffering
reduced profits or losses as a result of intense competition, the risk that changes in energy prices and taxes
may reduce Veolia Environnement’s profits, the risk that governmental authorities could terminate or modify
some of Veolia Environnement’s 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.
INVESTOR DAY October 2008 2
3. Dalkia : Europe’s leading energy services
company
Olivier Barbaroux
3
5. Dalkia in the energy chain
GAS/OIL: ELECTRICITY: Generation
Exploration, Production
MAJOR ENERGY
COMPANIES Transmission
Wholesale
market
Local production,
cogeneration, biomass
Distribution
(heat, gas, electricity)
Managing End users: homes, offices, public buildings,
demand hospitals, industrial plants, shopping centres
INVESTOR DAY October 2008 5
6. Energy in the city
CO2
INDUSTRIAL PLANTS
Steam, electricity, compressed
BUILDINGS: air, industrial gases, hot water,
HVAC, chilled water, cooling, vacuum
lighting, CO2
electricity,
lifts, safety
systems
CO2 Central heating
systems or
cogeneration plants
Hospitals NETWORKS
Hot or cold water
Steam
Electricity
Public lighting
INVESTOR DAY October 2008 6
7. Overall 2007 energy balance
Energy savings
12.9 TWh
4.6Mt 20.9 Mt CO2
Savings Energy Services
12.7 TWh
Renewables
6.9 TWh
Coal 25.8 TWh
Oil 4.2 TWh
Heat
41.9 TWh
Gas
53.0 TWh
Power
Other 4.9 TWh 14 TWh
95 TWh 69 TWh
Fuel Purchases Transformation Energies & Services
INVESTOR DAY October 2008 7
8. Market leader in our business segments:
local authorities
Managing local authorities’ energy needs
Revenue:
€1.6bn* or 20% of total managed revenue for 2007**
No. 1 in France (with 45% of the market) and Italy
Serving 21,500 educational, cultural, leisure
and sports facilities
Serving 5,641,000 multi-family housing units.
• From management reporting INVESTOR DAY October 2008 8
** Excluding district heating and cooling systems
9. Market leader in our business segments:
district networks
The world leader, managing 700 district networks
Revenue:
€1.9bn or 25% of total managed revenue for 2007*
No.1 in Europe with 31% of the outsourced market
Leading private operator in the USA, pioneer in China as operator of the
Harbin and Jiamusi district networks
Very large facilities: Lodz, Poznan (Poland), Vilnius (Lithuania),
Ostrava (Czech Republic)
Advanced technologies: network management software, optimized
maintenance, ramp-up of biomass-fired plants.
* From management reporting INVESTOR DAY October 2008 9
10. Market leader in its business segments:
industry
3,895 industrial facilities managed worldwide
Revenue:
€1.7bn or 22% of total managed revenue for 2007 *
No. 1 in France (with 27% of the market) and the
United Kingdom
Strong positions in Italy, Sweden and Spain
Fast-growing presence in Central and Eastern Europe
Key to entry in potential markets.
INVESTOR DAY October 2008 10
* From management reporting
11. Market leader in its business segments: health
4,967 hospitals managed worldwide
Revenue:
€1.1bn or 14% of total managed revenue for 2007 *
No. 1 in France (with 32% of the market) and Italy (21%)
Strong positions in Sweden, UK, Spain, Latin America
Fast-growing presence in Central and Eastern Europe
Key to entry in emerging markets.
* From management reporting INVESTOR DAY October 2008 11
12. Contract description by business
Operating
Average size Average length
margin
3 to 5 years without
Building energy €100,000 to investment
3 to 10%
management €5,000,000 8 to 12 years with
investment
20 to 30 years
District networks 8 to 15% > €5,000,000 Unlimited in certain
countries
5 years without
€500,000 to investment
Industrial utilities 4 to 8%
€5,000,000 10 to 12 years with
investment
INVESTOR DAY October 2008 12
13. Dalkia: the leading energy services provider
Estimated total European outstourcing market: €41bn
33%
27%
20%
17%
3%
Dalkia IDEX and Power Facilities Electrical
equivalents companies management construction &
companies installation
companies
Several dozen
ISS, Johnson Several dozen
Controls, Faceo Bouygues, Vinci
Compass, Eurogen Eiffage, Ferrovial
GDF-Suez, Fortum, Jones Lang Cegelec, Siemens
Vattenfall, EON, … Lassalle, … Spie, …
Specialists Dominant energy No energy management skills
producer model
INVESTOR DAY October 2008 13
14. Synergies within Veolia
Business Tools
– Diageo – Shared services centre in Lyon
– PSA Trnava – Shared services centre in Germany
– Cle (ArcelorMittal in Brazil) – Environmental research centre
(CRPE) in France
INVESTOR DAY October 2008 14
15. Dalkia’s critical success factors
The unique energy market environment
The global issues raised by greenhouse gas emissions
Strong skills in energy facility engineering and energy
trading, backed by powerful R&D capabilities
INVESTOR DAY October 2008 15
17. Financial performance
€M 2004 2007 CAGR
Turnover 4,948 6,896 +12%
EBITDA 542 656 +8%
EBITDA Margin 11 % 9.5%
EBIT 255 388 +19%
EBIT Margin 5.2 % 5.6%
Employed capital 1,958 3,013 +12%
ROCE before tax 10 % 11.7%
INVESTOR DAY October 2008 17
18. Action plan
Concentrate resources on core activities
– Close to core business
– Reinforcing existing country positions
– Arbitrage in high profitability projects
Reinforce efficiency plan
Reduce working capital
Divest from non core activities
Positive net cash flow (after investments and dividends)
INVESTOR DAY October 2008 18
19. Trends
2007 2011 (target)
€M
Turnover 6,896 + 5 - 7%
EBITDA Margin 9.5% 12%
EBIT Margin 5.6% 7%
ROCE before tax 11.7 % 13 - 14%
INVESTOR DAY October 2008 19
21. Favourable market background
Energy efficiency and renewable energies
IEA – CO2 emissions (millions of tons)
Baseline Emissions 62 Gt
- 16% 6% Nuclear Power
CO2 emissions (Gt CO2/yr)
19% Fossil fuel power generation mix
21% Renewable energies
Dalkia’s
54% energy efficiency business
BLUE Map Emissions 14 Gt
INVESTOR DAY October 2008 21
22. Strategic focus on energy efficiency
Long term practice in energy savings
– Energy savings (+24.8% of savings from 2003 to 2007)
– Global reduction of CO2 emissions (+28.3% from 2003 to 2007)
Major ambition on global warming mitigation
Renewables
Wasted energy CO2
Global offer for use
building Partnering with
energy industry to
Local Wasted modernize
structuring energy use
electricity
IT Target : -38 % process
generation
in 2020 in and reduce CO2
France emissions
Isolation Steam
(Grenelle)
High
performance
hardware:
INVESTOR DAY October 2008 22
23. Strategic focus on renewable energies
Biomass: European leader. Aiming for 13 Mt in Europe
by 2015
– Priority targets: Europe, USA, Latin American
Concentrated solar power
– Targeting mainly Southern Europe, North Africa, Middle East
INVESTOR DAY October 2008 23
24. Very promising market outlooks
Heating networks
Europe: €17bn
China and North America: equivalent
Russia: 3 x Europe Local Authorities
Europe: €30bn
Potential outside Europe to be
explored
Industry
Europe: €70bn
North America: equivalent
China and India: very strong potential
Health
Commercial Europe: €25bn
Considerable potential throughout the world
Europe: €90bn
Similar opportunities in the Americas
Growing opportunities in Asia and India
INVESTOR DAY October 2008 24
25. Focus on high-value-added projects
Heating or cooling networks
Biomass-fired CHP plants
Deployment of photovoltaic, thermal and thermodynamic
solar energy
Stepped up focus on cogeneration
Building energy refurbishment services
Zero-carbon projects for industry
Industrial park development
Ramp-up of integrated hospital management solutions
INVESTOR DAY October 2008 25
27. Favourable market trends
Climate change
Without a massive reduction in CO2
emissions, climate experts warn
that the pace of global warming will
accelerate.
INVESTOR DAY October 2008 27
29. Strong growth potential
Energy services market based on two scenarios
Europe - €bn in constant euros
€103bn
Biomass
Energy
services
€69bn
Market size (in €bn)
District
networks
€41bn
2007 2020 2020
Scenario 1 Scenario 2
Oil at $100/b Oil at $200/b
INVESTOR DAY October 2008 29
30. Investor Relations contact information
Nathalie PINON, Head of Investor Relations
and Financial Communication
38 Avenue Kléber – 75116 Paris - France
Telephone +33 1 71 75 01 67
Fax +33 1 71 75 10 12
e-mail nathalie.pinon@veolia.com
Brian SULLIVAN, Vice President, US Investor Relations
200 East Randolph Drive, Suite 7900
Chicago, IL 60601 - USA
Telephone +1 (630) 371 2847
Fax +1 (630) 282 0423
e-mail brian.sullivan@veoliaes.com
Web site
http://veolia-finance.com
INVESTOR DAY October 2008 30
