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2008 overview and outlook
2008 overview and outlook
2008 overview and outlook
2008 overview and outlook
2008 overview and outlook
2008 overview and outlook
2008 overview and outlook
2008 overview and outlook
2008 overview and outlook
2008 overview and outlook
2008 overview and outlook
2008 overview and outlook
2008 overview and outlook
2008 overview and outlook
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2008 overview and outlook

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2008-10-22

2008-10-22

Published in: Business, Economy & Finance
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  • 1. 1 INVESTOR DAY October 22nd, 2008
  • 2. 2INVESTOR DAY October 2008 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.
  • 3. 3 2008 overview and outlook Jérôme Contamine
  • 4. 4INVESTOR DAY October 2008 2008 Operating cash flow (1) +6% in operating cash flow from continuing activities (157) ~€4,400 m (1) €4,100 to €4,200 m Water - €80 m Other - €40 m Economic slowdown Germany Italy Volume, climate Evolution of tariffs Deferred Projects Contingency for economy : - € 80 m Waste mgt - €100 m 2008E (estimate 7 August 2008) 2008E (estimate 19 October 2008)
  • 5. 5INVESTOR DAY October 2008 From 2007 to 2008 Cash Flow from operations 3 800 3 850 3 900 3 950 4 000 4 050 4 100 4 150 4 200 4 250 2007 Impact of foreign exchange Impact economic conditions Impact fuel Acquisitions -CO2 + electricity prices SG & A Resolution 2007 litigation Berlin Social Costs Veolia Transport Growth & Productivity 2008 € m
  • 6. 6INVESTOR DAY October 2008 2008 – slowdown in investments and acceleration of disposals Net investments in 2008 estimated at €3.9 B versus €6 B in 2007. Eau Propreté Energie Transport A disposal program completed or committed to in the area of €1 B by the end of 2008 *includind approximatively €300m for Clemessy and Cristal and €74m for the partnership with Mubadala 2008 net investments by business 2007 net Investments by business 65 563 355 415 260 100 374* 173 907Total disposals Committed Decided Total 2008 decided to date 39 108 344 61 374 Cômpleted July/August 2008 Industrial disposals 141 213 197 In € mlns 2006 2007 Completed 30-06-08 Financial disposals 214 202 63 •2008 ROCE after tax of around 8.5%
  • 7. 7INVESTOR DAY October 2008 Strong financial stability Secure / Flexible A secure debt profile – No bond maturity > €100 m before February 2012 (€1 Bn), – No bond maturity above €1.5 Bn, – Average net financial debt duration of nearly 10 years (9.6 years at 30 June 2008), – A debt ratio (1) below 4x (3.4x at 30 June 2008), – Stable ratings: – Moody’s: A3/P-2 Stable – Standard & Poor’s: BBB+/A-2 Stable. (1) = net financial debt/(cash flow from operations+prncipal repayment of operating financial assets) 2008e cost of borrowing: 5.7 / 5.8% versus 5.49% at 31/12/2007
  • 8. 8INVESTOR DAY October 2008 Liquidity position 7.71.76.0Liquidity position 3.82.21.6Short-term financial debt 3.90.03.9Undrawn confirmed lines 3.81.72.1Cash and equivalents Total Subsidiary Amounts at 30 June ‘08 VE SA Amounts at 20 Oct. ‘08 (Data in € B)
  • 9. 9INVESTOR DAY October 2008 Strong financial stability Bond maturities Data at 30 June 2008 - (amount of €10,803 m at 30 June 2008) Bond maturities€m 0 200 400 600 800 1000 1200 1400 1600 2012 2016 2020 2024 2028 2032 2036
  • 10. 10INVESTOR DAY October 2008 Strong financial stability Fixed rate: 64% – Of which Euro : 72% – Of which Dollar : 39% – Of which Pound sterling : 84% Variable rate: 36% Currencies Net financial debt after hedging 66%10% 9% 15% Euro USD GBP Other (1) Data at 30 June 2008 (1) Of which Zloty : 2% and Yuan : 2%
  • 11. 11INVESTOR DAY October 2008 Conditions for A- average at 10 years Average financing rate for Veolia Rate for the issue Strong financial stability Reference points for Veolia in € since 2003 as compared with the conditions for issues (A- average at 10 years)
  • 12. 12INVESTOR DAY October 2008 Detail of confirmed undrawn credit lines N. B. : The documentation does not contain any disruptive covenants 20 April 20122,850Syndicated Credit (45 banks) 3,875Total 29 December 2010100RBS 23 December 201075SOCIETE GENERALE 20 December 2010125ABN AMRO 15 November 2010100CIC 4 January 2010100CALYON 3 March 2009150BNP PARIBAS 9 February 2009200NATIXIS 29 December 2008100DEUTSCHE BANK 23 December 200875SOCIETE GENERALE Maturities Amounts in €m Banks
  • 13. 13INVESTOR DAY October 2008 Strong financial stability Control / Optimization A centralized debt – at 80 % in VE SA (excluding proportionally consolidated companies and project financing companies), – VE SA : only rated enitity, with the ability to raise very long-term funds, in €/$/£ (with the exception of Three Valleys, the British Water subsidiary) – allowing for a control and an optimization of the cost of borrowing: • through the management of the split of fixed rate / variable rate debt, • by a balance/match by currency and maturity between debt and cash flows. A highly developed system of international cash pooling – deployed in France, Germany, Great Britain and the Czech Republic and the United States, and in the implementation process in Italy and Benelux (the overall group of these countries representing 88% of the company`s revenue), – Daily management of Veolia Environnement cash positions through automated fund management system at the level of VE SA, – VE is responsible for the selection of banks and the negotiation of banking conditions (2008 renegotiation: €1.7 m of savings per year).
  • 14. 14INVESTOR DAY October 2008 Strong financial stability Ratios Moody’s A3/P-2 Stable (cf. September 2008 report) Standard & Poor’s BBB+/A-2 Stable (cf. October 2008 report) 31/12/2004 Adj 31/12/2005 Adj 31/12/2006 31/12/2007 30/06/2008 2 2,5 3 3,5 4 4,5 5 NFD/(Cash flow from operations + Principal repayment of operating financial assets) 3.3 x (1)3.4 x 3.6 x 3.9 x 3.4 x (1) 3,83 x before taking into account the capital increase announced on 12 June 2007

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