• Share
  • Email
  • Embed
  • Like
  • Save
  • Private Content
2009 Annual Shareholders’Meeting - Presentation of Thomas Piquemal
 

2009 Annual Shareholders’Meeting - Presentation of Thomas Piquemal

on

  • 349 views

2010-04-28

2010-04-28

Statistics

Views

Total Views
349
Views on SlideShare
336
Embed Views
13

Actions

Likes
0
Downloads
2
Comments
0

1 Embed 13

http://www.finance.veolia.com 13

Accessibility

Upload Details

Uploaded via as Adobe PDF

Usage Rights

© All Rights Reserved

Report content

Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
  • Full Name Full Name Comment goes here.
    Are you sure you want to
    Your message goes here
    Processing…
Post Comment
Edit your comment

    2009 Annual Shareholders’Meeting - Presentation of Thomas Piquemal 2009 Annual Shareholders’Meeting - Presentation of Thomas Piquemal Presentation Transcript

    • 2009 SHAREHOLDERS’ MEETING 1
    • 2009 SHAREHOLDERS’ MEETING Presentation of Thomas PiquemalExecutive Vice President in charge of finance 2
    • Shareholders Meeting – May 7, 2009Table of Contents Overview of 2008 results First quarter 2009 key figures 2009 outlook 3
    • Shareholders Meeting – May 7, 2009Disclaimer 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 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 Environnements 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 Environnements 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 Environnements compliance with environmental laws may become more costly in the future, the risk that currency exchange rate fluctuations may negatively affect Veolia Environnements 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 2002. 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. 4
    • Shareholders Meeting – May 7, 2009 Overview of 2008 results  Revenue: €36,205 million, up 15.8% at constant exchange rates, including 9.6% organic growth  Operating cash flow: €4,137 million, up 2% at constant exchange rates  Net income attributable to equity holders of parent: €405 million  Sound financial structure: net liquidity of nearly €4 billion at December 31, 2008  2008 dividend: — €1.21 per share(1) payable in cash — option of payment in shares issued with a 10% discount(2) at the price of €16.06(1) Subject to approval by the Annual Shareholders Meeting on May 7, 2009(2) 10% discount to the average opening price on the Euronext of Veolia Environnement shares over the twenty trading days prior to the day of the Annual General Shareholders’ Meeting less the amount of the dividend. 5
    • Shareholders Meeting – May 7, 2009 Revenue breakdown By division By geographic zone Rest of the world 7%Transportation 17% Water 35% Asia/Pacific 8% North America France Energy 9% 40% Services 20% Waste 28% Europe ex-France 6 054 36% 2008 consolidated revenue: €36,205 million 6
    • Shareholders Meeting – May 7, 2009Breakdown of revenue by geographic zone€ billion Europe ex-France 13.2 +6.5% 11.6 France 14.5 +4.7% North America 13.6 2007(1) 2008 2.8 3.2 +10.3% 2007(1) 2008 Rest of the word 2007(1) 2008 1.6 2.6 +59.8% 2007(1) 2008 Asia - Pacific 2.3 2.7 +18.5% 2007(1) 2008 % Organic growth(1) To ensure the comparability of financial years, the accounts at 31 December 2007 have been restated by the amount of income from the disposals in 2008 (in particular for Clemessy & Crystal in the Energy division) according to IFRS 5 and are presented in the income statement in the “net income from discontinued operations” line item. 2007 revenue for Clemessy and Crystal was €696m. 7
    • Shareholders Meeting – May 7, 2009 Revenue growth by division in 2008€m Water Waste 12,558 +14.9% 10,928 +13.4% 9,214 10,144 +10.1% +4.5% Energy Services Transportation 7,449 +20.1% 6,200 5,590 6,054 +8.3% +12.0% +7.9% 2007 (1) % Growth at current exchange rates 2008 % Organic growth(1) To ensure the comparability of financial years, the accounts at 31 December 2007 have been restated by the amount of income from the disposals in 2008 (in particular for Clemessy & Crystal in the Energy division) according to IFRS 5 and are presented in the income statement in the “net income from discontinued operations” line item. 2007 revenue for Clemessy and Crystal was €696m. 8
    • Assemblée générale 2009 – 07.05.09 Shareholders Meeting – May 7, 2009Veolia Environmental Services (waste managementdivision): quarterly change in organic growth in 2008 Organic revenue growth rate +9.1% +7.7% +7.1% Q4 2008 / Q4 2007 Q1 2008 / Q2 2008 / Q3 2008 / Q1 2007 Q2 2007 Q3 2007 -4.5% Slowdown in organic growth in the waste management business in the 4th quarter of 2008 9
    • Shareholders Meeting – May 7, 2009 Operating cash flow (1) Change by division €m 2007 2008 Δ constant restated FX rates Water 1,851 1,821 +0.6% Waste 1,461 1,362 (1.6%) Energy Services 642(1) 755 +15.5% Transportation 279 292 +5.7% Other (69) (93) - Total Group 4,164(2) 4,137 +2.0%(1) Operating cash flow = cash flow from continuing operations before tax and financial elements(2) Operating cash flow restated to exclude €15m in cash flow from discontinued operations (Clemessy & Crystal in particular) 10
    • Shareholders Meeting – May 7, 2009 Operating cash flow (1)€m Change in operating cash flow Action plans2007 4 164 (2) Debt issuance in local Exchange rates (107) currencies 2009 plan to adapt to Waste management business (ex fuel) (104) downturn; €100 million in cost-cutting measures Structural costs (70) 2010 Efficiency Plan Acquisitions, fuel and other +76 Growth and productivity of our contracts +178 (up 4,3 %)2008 4,137(1) Operating cash flow = cash flow from continuing operations before tax and financial elements(2) Operating cash flow restated to exclude €15m in cash flow from discontinued operations (Clemessy & Crystal in particular) 11
    • Shareholders Meeting – May 7, 2009 From revenue to net income attribuable to equity holders of parent€m 2007 2008 restated (1)Revenue 31,932 36,205Operating income 2,483 1,951 Cost of net financial debt -819 -925 Other financial income & expense +4 -51 Corporate tax expense -418 -469 Equity in net income of affiliates +17 +19 Net income from discontinued operations -12 +184 Net income attributable to minority interests -327 -304Net income attrib. to equity holders of parent 928 405(1) To ensure the comparability of financial years, the accounts at 31 December 2007 have been restated by the amount of income from the disposals in 2008 (in particular for Clemessy & Crystal in the Energy division) according to IFRS 5 and are presented in the income statement in the “net income from discontinued operations” line item. 2007 revenue for Clemessy and Crystal was €696m. 12
    • Shareholders Meeting – May 7, 2009 Net investments €m 2007 2008 Maintenance 1,590 1,860 As % of consolidated revenue 5.0% 5.1% Growth 5,346 2,841 Total investments (1) 6,936 4,701 Divestments (2) (453) (761) Net investments (3) 6,483 3,940(1) Including net financial debt from acquired companies: +€38 million in 2007 and -€72 million in 2008(2) Net of the debt from discontinued operations(3) Excluding repayment of operating financial assets 13
    • Shareholders Meeting – May 7, 2009 Cash flow statement€m 2007 2008Net financial debt at opening (14,675) (15,125)Cash flow from operations 4,219 4,178 Tax paid (417) (348) Change in operating WCR (167) (80)Total cash flows generated from the businesses 3,635 3,750 Net investments (1) (6,483) (3,940) Repayment of operating financial assets 395 358 Change in receivables & other financial assets (30) (312)Total net cash flows from investments (6,118) (3,894) Dividends paid (2) (564) (753) Net interest expenses paid (786) (849) Capital increase (VE & minority interests) 3,058 (3) (77) Currency impacts & other 325 420Change in net financial debt (450) (1,403)Net financial debt at closing (15,125) (16,528)(1) Including net financial debt from acquired companies & excluding repayment of operating financial assets(2) €420m in 2007 and €553m in 2008 for Veolia Environnement(3) Including €2.6bn for the capital increase completed as of July 10, 2007 14
    • Shareholders Meeting – May 7, 2009 Debt ratios (1) and ratings  Debt ratios Net financial debt/ (Cash flow from operations + Repayment of operating financial assets) €bn 17 16.5 4 x Debt ratio 16 objective 3.6x 15.1 3,6x 15 14.7 3,4x 3.5 x 13.9 14 3,3x 13 Net financial debt 12 3 x Dec. 31, Dec. 31, Dec. 31, Dec. 31, 2005 2006 2007 2008  Ratings — Moody’s: A3/P-2 Negative (March 26, 2009) — Standard & Poor’s: BBB+/A-2 Negative (March 25, 2009)(1) 12-month moving average ratios 15
    • Shareholders Meeting – May 7, 2009 Balance sheet€m Dec. 31, 07 Dec. 31, 08Intangible assets (linked to concessions) 2,989 3,638Tangible assets 9,203 9,427Other non-current assets 11,506 11,678Operating financial assets (current and non-current) 5,628 5,751Cash and cash equivalents 3,116 3,850Other current assets 13,866 14,782Total Assets 46,307 49,126Equity (incl. minority interests) 10,191 9,532Financial debt (current and non-current) 18,240 20,757Other non-current liabilities 4,097 4,256Other current liabilities 13,779 14,582Total Liabilities 46,307 49,126 16
    • Shareholders Meeting – May 7, 2009 Proposed dividend policy (1) ar r ye e pe ag v er a 1.21€ 1.21€ 2008 dividend payable on 2 % : +2 1.05€ 0 07  in cash 2 0 4– 0.85€ — stable at €1.21 per share 20 0.68€ or0.55€ 0.55€ 0.55€  option of payment in shares — issued with a 10% discount(2) to the price of €16.06 2001 2002 2003 2004 2005 2006 2007 2008(1) Subject to approval by the Annual Shareholders Meeting on May 7, 2009(2) 10% discount to the average opening price on the Euronext of Veolia Environnement shares over the twenty trading days prior to the day of the Annual General Shareholders’ Meeting less the amount of the dividend. 17
    • First quarter 2009 key figures & 2009 outlook 18
    • Shareholders Meeting – May 7, 2009First quarter 2009 key figures Revenue: €9,267 million, up 5% at constant exchange rates, including 3.4% organic growth — Strong growth in Water, Energy and Transportation business lines that offset the 7.8% decline in revenue in Environmental Services (waste management division) Operating cash flow: €1,059 million, down 4.1% at constant exchange rates (down 6.6% at current exchange rates) — Impact expected in the second half resulting from the plan aimed at adapting the Environmental Services division to the economic downturn Net financial debt: €16.8 billion versus €16.5 billion at the end of 2008 — Significant improvement in free cash flow to -€220 million in the first quarter of 2009 from -€739 million in the first quarter of 2008 19
    • Shareholders Meeting – May 7, 2009Measures to improve cash flow generation in 2009versus 2008 2008 2009 €m objective Gross investments 4,701 3,400 Divestments (incl. industrial) 761 1,000 Repayment of operating 358 400 financial assets Net investments 3,582 2,000 Decrease in net investments by €1,600 million 20
    • Shareholders Meeting – May 7, 2009 2009 objectives Positive free cash flow (1) after payment of dividend How do we achieve this? Operating cash flow – Net investments (2) = ~€2 billion (3)(1) Free cash flow consists in cash generated (sum of total cash flow from operations and the repayment of operating financial assets) net of the following the cash components: (i) change in operating WCR, (ii) equity transactions (changes in capital, dividends paid and received), (iii) investments net of disposals (including changes in receivables and other financial assets), (iv) net interest expenses paid and (v) tax paid.(2) Net investments = gross investments – (disposals + repayment of operating financial assets)(3) At constant exchange rates 21
    • 2009 SHAREHOLDERS’ MEETING 22
    • Shareholders Meeting – May 7, 2009BACK-UP for Q&A session Slide with additional information for Thomas Piquemal1. Veolia Environnement has a sound financial structure2. Funding of infrastructure facilities for certain clients3. What finances our debt? 23
    • Shareholders Meeting – May 7, 2009Veolia Environnement has a sound financial structure  Confirmed, undrawn lines of credit of Liquidity exceeding €7.6 bn nearly €4 billion, without any at December 31, 2008 disruptive covenants  Net liquidity of €3,980 million versus € 3,876 million at December 31, 2007  Bonds: 68% of net debt Debt with a long maturity profile,  Average maturity of net debt: 9.3 yrs primarily in bonds  No significant debt repayments until 2012  €2.6 billion capital increase in July Acquisitions had been refinanced 2007 for the major acquisitions completed for approximately €2.4 in 2007 billion (Veolia waste in Germany, TMT in Italy and TNAI in the USA) 24
    • Shareholders Meeting – May 7, 2009 Within the framework of long-term contracts, Veolia Environnement may finance certain infrastructures for its clients Industrial outsourcing contracts € Bln Counterparty (IFRIC4) and concession contracts Water-Berlin 2.8 Land of Berlin comprising a public services obligation/BOT (IFRIC12), with the Cogenerations 0.5 EDF transfer of volume and price risks to France the client Waste-UK 0.3 Municipalities Assets treated as financial receivables: Water-Belgium 0.3 City of Brussels operating financial assets (OFA) Other 1.9 The most significant give rise to dedicated external funding Total 5.8 Average return at market conditions (2008 average return): 7.0% Repayment of principal: €358m in 2008 25
    • Shareholders Meeting – May 7, 2009 What finances our debt in 2008?Financing Op. Fin. Assets (OFA) Net debt - OFAs Total net debt €5,751m + €10,777m = €16,528mCash flows Revenue (interest EBITDA(1) Cash flow €4,178mfrom ops income): €400m + €3,778m = from ops: + OFA Repayment: € 358MOFA flows Repayment of € 4,536M principal: €358m = = 2.9x EBITDA(1) 3.6x Objective: 3.5 to 4x (1) EBITDA = Cash flow from operations excluding operating financial assets 26
    • 2009 SHAREHOLDERS’ MEETING 27