2008, First Half Results

Veolia Environnement Investor Relations – First Half 2008 Results – 07/08/2008

FIRST HALF 2008 RESULTS


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 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
long-term
changes affecting our performance under those contracts, 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 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.

2


Disclaimer

This document does not constitute an offer of securities in the United States or in any other jurisdiction. Securities may
not be offered in the United States without registration under the United States Securities Act of 1933 or an exemption
from registration. Veolia Environnement does not intend to register the offering described in this document or to
conduct a public offering of securities i the U i d S
d bli ff i f i i in h United States.

A French language prospectus relating to the French offering has been approved by the French Autorité des Marchés
Financiers under number 07-180. Copies of the French prospectus are available in France from Veolia Environnement
or from authorized financial intermediaries. The French prospectus contains a section that describes certain risk factors
p p
that investors should take into account before making any investment decision.

The offer and sale of the securities described in this document may be restricted by law or regulation. No offer will be
made in any jurisdiction or to any person except under circumstances in which such offer may lawfully be made.

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
th t th acquired b i
i d businesses are lik l t achieve. A t l EBITDA may b adversely affected b numerous
likely to hi Actual be d l ff t d by
factors, including those described under “Forward-Looking Statements” above.

3


Strong growth in revenue. Increase in cash flow from
operations and recurring operating income
p g p g

Strong increase in revenue at €18,092m: +19.5% at constant exchange
19.5%
rates (+17% at current exchange rates)

Further robust internal growth: +11.1%

Contribution of acquisitions completed in 2007 and early 2008: +8.4%

Operating cash flow at €2 151m: +9 3% at constant exchange rates (+6 9%
€2,151m: +9.3% (+6.9%
at current exchange rates)

Recurring operating income at €1 300m: +7 6% at constant exchange rates
€1,300m: +7.6%
(+5.2% at current exchange rates)

Recurring net income at €498m: +3.2%

Net earnings per share at €1.09 : -10% (1)

(1) Diluted by options
4

02
01 /0
/0 1/
6/ 20

0,6400
0,6600
0,6800
0,7000
0,7200
0,7400
0,7600
0,7800
0,8000
0,8200
20 30 07

100
110
120
130
140
150

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80
90
29 07 /0
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6/ 27 07
20 /0
07 2/
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7/ /0
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Veolia Environnement

24 07 26
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07 25 07
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9/ 20
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Change in EUR-GBP

20 /1
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Price of Brent In $
07
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20 1/
08 20
09 06 08
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4/ 2/
20 20
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07 /0
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20
5/ 04
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,
02
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-0,50
0,25
1,00
1,75
2,50
3,25
4,00
4,75

1/
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1,270
1,320
1,370
1,420
1,470
1,520
1,570
1,620

07
Q 13
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07
27
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07
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A volatile and uncertain economic environment

/1
Change in EUR-USD

2/
20
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Growth in US GDP (as % )

23
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1/
20
Q 08
1- 05
08 /0
3/
20
08
18
/0
4/
20
08
Q 02
2- /0
08 6/
20
08
Investor Relations – First Half 2008 Results – 07/08/2008


Well-managed long-term growth (€m)

2,151
18,092 2,012
1,910
15,462
13,941
13 941
+19.5%(1) +9.3% (1)
+11.6% (1)
+5.6% (1)

Consolidated revenue (2) Operating cash flow

1,236 1,300
1,129 482 498

381
+7.6% (1)
+3.2%
+9.8% (1)
+26.6%

Recurring operating income Recurring net income
(1) At constant exchange rates
(2) Revenue from ordinary activities under IFRS
6


Revenue(1): Double-digit organic growth
1,312 –102
198 –229 18,092
–60
765
(€m) -391
1,709 281
68
671
5,988
353

15,462
447
238

5,221
5,085

Water
W
Waste
4,196
Energy services
4,049 Transportation

3,321

2,970
2,724

H1 2007 Internal External Foreign H1 2008
growth growth exch.
impact
(1) See definition p. 6. +11.1% +8.4% -2.5% +17.0% 7


Consolidated revenue (1) for Veolia Water by activity (at
current exchange rates)

in €m
5,988
6,000
+14.7%
5,500 5,221
5,000
5 000

4,500

4,000 +6.4% 3,895
3,660
3,500
3 500

3,000

2,500
2,093
2,000
2 000 +34.1%
+34 1%
1,561
1,500

1,000

500

0
H1 2007 H1 2008
Veolia Water - Total
Veolia Water - Operations
Veolia Water – Works & E&C
(1) See definition p. 6.


Breakdown of revenue (1) by geographic region

(€m)
Δ at Δ at Internal
current constant growth
FX FX
+9 1%
9.1% +9.1%
9.1% +6.8%
+6 8%
+21.3% +23.5% +7.7%
+8.7% +23.0% +8.5%
+29.7% +34.9% +25.4%
25.4%
+64.6% +68.4% +66.9%

VE Group +17.0% +19.5% +11.1%

1,002 1,300
660 1,086

H1 2007 H1 2008

Consolidated revenue (1) in H1 2008: €18,092m

(1) See definition page 6
9


Impact of translating currencies into euros

The net impact at June 30, 2008, of variations in foreign exchange
against the euro was:

Revenue, a negative impact of €391 million

Operating cash flow, a negative impact of €49 million

Operating income, a negative impact of €30 million

10


Impact of foreign exchange on revenue during the first half
of 2008

Impact on Currencies
Main divisions impacted
revenue concerned

Waste >50%, Transportation >25%,
USD by -€195m Water >20%

Waste >60%, Water >15%,
GBP by -€195m Energy ~15%, Transportation < 5%

-€391m Non-€ European by +€79m Water ~30%, Waste ~20%,
Energy >40%, Transportation <10%

Asian by -€52m Water ~60%, Waste >25%,
Energy ~5%, Transportation >5%

Water >60%, Waste >30%,
Other countries by -€28m Energy ~5%, Transportation <5%

Water -€101m, Waste -€229m,
Energy -€1m & Transportation -€60m
11


Impact of foreign exchange on operating cash flow
in H1 2008
Impact on
Operating cash Currencies concerned Main divisions impacted
flow
f

USD by -€22m Primarily Waste
y

GBP by -€36m Primarily Waste and Water

-€49m

Non-€ European by +€18m Primarily Energy

Asian and other countries Primarily Waste and Water
by -€9m

Water -€16m, Waste -€44m,
Energy +€12m & Transportation -€1m
€1m

12


Impact of foreign exchange on operating income in H1 2008

Impact on
Operating Currencies concerned Main divisions impacted
income

USD by -€11m Primarily Waste
y

GBP by -€26m Primarily Waste and Water

-€30m

Non-€ European by +€13m Primarily Energy

Asian and other countries Primarily Waste and Water
by -€6m

Water -€11m, Waste -€29m
Energy +€9m & Transportation +€1m

13


Impact of rise in fuel costs on operating income: €36 m

Net impact
H1 08
Coverage Mechanism & Commentary
g y cost
(e) H1
Around 2/3 of total costs benefited from indexation 08/H1 07
Water NS NS
Approx. 66% of costs are indexed or hedged. primarily impacting €183m -€15m (1)
waste collection and transfer activities
activities.
Municipal Europe: contractual indexation formulas on either
monthly, quarterly or annual basis
Waste Industrial Europe: major LT industrial contracts indexed (particularly
in UK);
i UK) stronger i
impact on ST contracts partially compensated b
i ll d by
fees
North America Solid Waste: fuel surcharge generally with 30 day
delay
Energy NS NS

70% of costs are indexed €276m -€21m
French passenger transportation: indexation on the majority of
contracts
Transpor
Germany, Netherlands, Scandinavia (ex-Sweden), Pacific: Full or
t partial (e.g. Germany) indexation typically with annual revision
Sweden: no indexation
North America: managed by municipality or indexed by contract
(1) Based on 2007 scope. Rise in fuel costs had around €5m impact on the division’s total acquisitions
14


Operating cash flow

( )
(€m)

H1 2008
Δ current Δ constant
H1 2007 FX FX

Water 867 904 +4.3% +6.2%
Waste 678 715 +5.5% +12.0%
Energy services 359 432 +20.3% +16.8%
Transportation
T i 129 146 +12.5%
12 % +13.4%
13 4%
Holding (21) (46) - -
Total G
T t l Group 2,012
2 012 2,151
2 151 +6.9%
6 9% +9.3%
+9 3%

15


From recurring operating income to operating income

( )
(€m)

H1 2007 H1 2008
Δ current Δ constant H1 08 margin
FX FX
Water 574 597 +3.9% +5.8% 10.0%
Waste 389 405 +4.0% +11.5% 8.0%
Energy services
E i 251 290 +15.7%
15 7% +11.9%
11 9% 7.2%
7 2%
Transportation 48 63 +31.0% +29.9% 2.1%
Holding -26
26 -55
55 - - -
Total Group recurring
operating income 1,236 1,300 +5.2% +7.6% 7.2%
Non-recurring it
N i items +36
36 +6
6
Total Group
Operating income
p g 1,272
, 1,306
, +2.7% +5.0% 7.2%

16


Growth in operating cash flow by division

€2,151m (2)
€m
€2 012m (2)
€2,012m
€1,910m (2)
904
€1,726m (2)
867 +6.2%
+6 2%
826
Water
767
Waste
Energy
715
Transportation
678 +12.0%
+12 0%
562
507

393 432
321 359 +16.8%
(1) Compound annual growth rate
147 150 129 +13.4%
+13 4% 146 (2) Veolia Environnement’s operating
H1 2005 H1 2006 H1 2007 H1 2008 cash flow, incl. holdings

17


Growth in recurring operating income by division

€1,300m (2)
€m
€1 236m (2)
€1,236m
€1,129m (2)

597
€955m ( )
(2)
+5.8%
+5 8%
574
527
463 Water
Waste

405 Energy

389 Transportation
T i
307 +11.5%
247

267 290
+11.9%
224 251
(1) Compound annual growth rate
60 74 48 +29.9%
+29 9% 63 (2) Veolia Environnement’s recurring
H1 2005 H1 2006 H1 2007 H1 2008 operating income, incl. holdings

18


Operating performance by division

The market trend of the past 18 months continued: strong growth in new
projects for the construction of facilities: wastewater treatment plants,
desalination plants, recycling facilities

In France, rise in operating income: good contribution of works and continued
operational efforts aimed at reducing costs that outweighed th erosion i
ti l ff t i d t d i t th t t i h d the i in
volumes recorded in distribution.

In Europe the wastewater treatment plant in Brussels began operations First
Europe, operations.
year of integration of unregulated business interests in the United Kingdom
(former Thames). In Germany, growth in the contribution of the Braunschweig
contract.

Veolia Water Solutions & Technologies: significant increase in operating
results in-line with the growth in revenue.

19



In France: slight increase in operating income in the sorting/recycling and
incineration business lines despite a downward trend in volumes treated, in
particular in industrial non-hazardous waste
waste. Also contributing was the
integration of Bartin Recycling.

In Europe: the United Kingdom continued to perform well (new integrated
contracts, West Berkshire, Shropshire and Southwark), very good contribution
of Scandinavian countries and the Czech Republic. In Germany, integration
u de ay o eo a U
underway of Veolia Umwelt Services (ex-Sulo).
e t Se ces (e Su o)

United States: good performance of the solid waste business, thanks to the
favorable impact of pricing despite lower volumes; excellent performance of
p p g p p
industrial services and hazardous waste.

Asia-Pacific: significant increase in results in the region (full-year impact of the
Taiwan contract) and very good performance in Australia.

20



In France, double-digit growth in operating income: positive impact stemming
from the increase i energy prices, slightly more f
f th i in i li htl favorable weather conditions
bl th diti
than in 2007 and satisfactory commercial development in the thermal business
as well as in specialized subsidiaries.

Outside France: favorable weather effect in Central Europe and impact of the
contribution of recent acquisitions, primarily TNAI in the United States and
Praterm in Poland.

Slightly positive contribution of sales of surplus CO2 emission rights quotas,
although significantly lower than in 2007.

21



Recurring operating income significantly improved despite the impact of the rise
in fuel prices and the impact of the end of reduced social/wellfare charges in
p p g
France

High level of performance was maintained in France in urban and inter-urban
transportation
Significant increase in the contribution from outside France:
Germany: turnaround continued, operational optimization and growth momentum
(Bremen, impact 2011)
United States: further profitable development of transport on demand, improved
profitability in transit business, extension of the Boston (MBCR) contract, the Las
Vegas contract h b
V t t has been extended 3 years
t d d
Further improvement in profitability in Australia (Melbourne contracts as well as
contracts in New South Wales and West Australia)
Netherlands: turnaround is under way thanks to operational optimization and
y p p
renegotiations, impact in H2 2008 and 2009

22


Strategic positions taken in the European waste market
over the past 2 years
UNITED KINGDOM

Cleanaway UK in June 2006: acquisition on
the basis of £595m enterprise value and
market share doubled in the United Kingdom
(15% versus 7% before the transaction)

GERMANY
FRANCE
Sulo (unchallenged
S l ( h ll d
Bartin Reycling Group in
specialist in paper and
February 2008 for €190m in
plastics recycling as well as
enterprise value: N°3 in ferrous
organic recycling) in July
and non-ferrous metals
non ferrous
2007: acquisition for
recovery & recycling in France
€1,308m in enterprise value
(after disposal of container
manufacturer) and position
strengthened in Germany
ITALY
(11%)
VSA Tecnitalia (ex-TMT) in October
2007: acquisition for €338m based on a
100% enterprise value equivalent;
i l i l
larger market share in Italy (28% of
incineration market vs. 6%)
23


Integration and performance of Sulo, German unchallenged
specialist in paper and plastics recycling

July 2007:
Acquisition of Sulo, for a total amount of €1,450m in enterprise value
Immediate divestment of the container business for €142m

First half of 2008: contrasting market developments in Germany
Non renewal
Non-renewal of contract in DSD
Shortfall ~€40m in EBITDA
Decline in margins in industrial non-hazardous waste on a full year basis
in comparison with
Continued strength in the paper market
acquisition business plan

2008-2010 action plan:
Cost reduction plan: merging of commercial agencies,
Increase profitability in industrial waste sorting centers (MRFs)
Development of an integrated offering for household packaged waste and
industrial on-site
24


Overview of main acquisitions (2007 – YTD)

H1 2008 revenue: €965m
H1 2008 operating cash flow: €89m
Revenue
Acquisition Date of 1st Consolidation and Description
H1 2008
Thames non- Consolidated Nov. 28, 2007. Expands non- €80m
Water regulated water regulated water activities in the UK
activities (UK)
VSA Tecnitalia Consolidated Oct. 3, 2007. Largest private €38m
(formerly TMT) operator in thermal waste treatment market. Full
p j
projects online in 2011 (expected revenue of
( p
€200m in 2011).

Bartin Recycling €136m
Waste Consolidated Feb. 13, 2008. #3 in France in (4 ½ months)
ferrous and non-ferrous metals recycling.
Recycling business with low level of capital
Sulo intensity/depreciation.
€523m
First consolidation, July 2, 2007. German N°2,
specialized in packaged waste.
TNAI Consolidated Dec. 2007. Largest portfolio of
C 00 €172m
district heating and cooling networks in the US.
Energy In-line with acquisitions business plan in US$.
Praterm Consolidated February 1, 2008. Expands heating €16m
network activities in Poland. (5 months)

25


From revenue (1) to net income

( )
(€m)
H1 2007 H1 2008

Revenue 15,462 18,092
Operating income 1,272 1,306
Cost of net financial debt (392) (426)
Other financial income (expenses)
( ) ( )
(11) ( )
(9)
Tax (235) (227)
Equity in net income of affiliates 10 9
Net income attributable to minority interests (143) (150)

Net income from continuing operations 501 503

Income from divested operations (8) (2)
Net income 493 501
Recurring net income 482 498

(1) See definition page 6
26


Cost of borrowing

(€m) H1 2007 H1 2008

Average net financial debt 14,900 15,614
Cost of gross financial debt 392 422
Cost f borrowing
C t of b i 5.27%
5 27% 5.41%
5 41%

Cost of borrowing:
5.41%(1) vs. 5.49% at December 31, 2007
(1) Adjustedfor the favorable impact of the unwinding of hedging transactions, the cost of borrowing stood
at 5.66% at June 30, 2008
27


Investments

Growth
(€m)
Financial Operating
incl. New
Maintenance chge in Industrial projects(1) financial Total
consolidation assets
scope

Water 293 19 186 195 77 770
Waste 367 35 49 357 2 810
Energy services 100 28 81 176 35 420
Transportation 149 22 26 74 2 273
Other 3 (2) 25 17 - 43

Total at 06/30/08 912 102 367 819 116 2,316
Total at 06/30/07 742 93 304 444 132 1,715
1 715

(1) Of which primarily th acquisition of Biothane (Solutions and Technologies) and an increased participation i th A hk l
hi h i il the i iti f Bi th (S l ti dT h l i ) d i d ti i ti in the Ashkelon
project in Israel in Water; the acquisition of Bartin Recycling Group and other investments in Europe in Waste; the
acquisition of Praterm in Energy services and the acquisition of Rail4Chem in Transportation.
28


Free cash flow before new projects

(€m)
H1 2007 H1 2008
06/30/2008

Cash flow from operations (1) 2,009 2,163
Repayment of operating financial assets 176 194
Total cash generation
g 2 ,185
, 2,357
,
Maintenance capital expenditures (742) (912)
New operating financial assets (132) (116)
Change in operating WCR (246) (249)
Tax paid (140) (168)
Interest paid (320) (369)
(2)
Rights issue reserved for minority shareholders 15 (126)
Investments in current growth and development (397) (469)
Asset disposals 181 261
Other 9 9
Free cash flow before new projects = 413 = 218

(1) Cash flow from operations = EBITDA
(2) Includes the reduction in capital linked to the terms for the repayment of “drainage” receivables (in the Berlin contract)
(
in the Water division. 29


Changes in net financial debt at June 30, 2008

H1 2007 H1 2008
(€m)

Net financial debt at January 1st 14,675 15,125

Free cash flow (413) (218)
Investments in new projects 444 819
Dividends paid 501 726
Impact of foreign exchange and other (7) (120)

Net financial debt at June 30 15,200 16,332

30


Debt ratios (1)

(€bn) 17 4

16,5 16.3
16

15,5 15.2
15.1
15

14,5 3.5x
14
3.4 x
13,5
3.3 x
13

12,5

12 3
June 30 2007
30, Dec 31 2007
31, June 30 2008
30,

Net financial debt
_ Net financial debt/(Cash flow from operations + Repayment of operating
financial assets)

(1) 12-month moving average ratios
31


Debt management: very solid financial stability

Ratings
Moody’s: A3/P-2 Stable (confirmed in April 2008)
Standard & Poor’s: BBB+/A-2 Stable (confirmed in April 2008)
Poor s:
2008 bond issues (total of €1.7bn, maturity ranging from 5 to 30 years)
2008 bond redemption: €1.2 bn, o/w €1bn already redeemed in H1.
2009: €102m
Average maturity: 9.6 years [vs. 9.2 years in 2007]
Group liquidity: €7.8bn of which €4.0bn in undrawn syndicated credit with a 2012 maturity

Net financial debt after hedges Currencies

(gross debt after hedges)
g g
(1)
Fixed rate: 64% Other 15%
o/w Euro: 72% Euro 66%
GBP 9%
o/w US D ll
/ Dollar: 39%
o/w GBP Sterling: 84%
Floating rate:36%
USD 10%

32


OUTLOOK AND ACTION PLAN


2008 objectives

Assumption: economic and monetary conditions as observed in the first half of the year
currency parities
fuel costs
climate
economic situation in the United States and in Europe

2008 objectives

Increase in total revenue above 12% at current exchange rates
Increase in cash flow from operations of approx. 6% at current exchange rates
approx

Continued increase in the dividend per share: +10% (1)
p %

(1) To be paid in 2009 for the 2008 fiscal year. Subject to approval of the May 7, 2009 Annual Shareholders Meeting
34


Results to-date of the 2007-2009 plan

2007 actual 2008
Overview of 2007-2009 objectives estimated

Average annual revenue growth > 10% +14.0% >+12%
Total amount of allocated investments
range between €15bn and €20bn €6.9bn ~€5bn
After-tax ROCE: 10%
(ex potential effect of timing of acquisitions) 10.9%
10 9% 9-9.5%
9-9 5%

35


Evolution of the Company’s organization

Geographic organization has been strengthened with a focus on
4 regions (E
i (Europe/North A
/N th America/Asia/Middle East)
i /A i /Middl E t)
Leadership position consolidated: development of our
capabilities, our expertise, our capacity to innovate and our
p , p , p y
investments in research and development
Transversal links and bridge ways set up to take full advantage of
our size (institutional representation commercial coordination
representation, coordination,
shared services and functions, etc.)

36


Momentum for business growth confirmed

Strong organic growth in the period
High
Hi h number of contract renewals (e.g. France)
b f t t l ( F )
Significant commercial successes in the area of privatizations
and outsourcing contracts
g
Strong growth in engineering, design and construction
Strong organic growth in the industrial and tertiary sectors
g g g y

37


Cost savings plan: "Efficiency 2010”plan”
Savings to be doubled in 2 years

In the past 5 years, the Group has launched an efficiency drive and achieved
recurring cumulative savings of around €580m in operating income
Veolia 2005: €368m saved over 3 years (2004-2006)
PACT (Continual Cross Improvement Plan): >€200m over 2 years (2007 – 2008E)
Implementation of an "Efficiency 2010” plan aimed at saving €400m over
2 years (2009-2010): €180m in 2009, €220m in 2010, thus €400m in
cumulative savings in full year 2011
Action plan covering various fields and having a significant impact (purchasing,
operations, assets, support functions)
Mobilization of all managerial lines in France and outside France (management,
dedicated team, backing by local network)
Steering organization in line with the plan’s goals (objectives in terms of savings,
monitoring tools, reporting)
)
Implementation of best practices on a wider scope
Implementation cost of plan: €60 - €80m

38


Acceleration of the asset rotation program

Objective:
€1bn in disposals completed or committed in 2008 (compared with
recurring annual disposal value ranging between €300m and €500m)
At least €1.5bn in disposals in the 2008-2009 period
Criteria and approaches chosen:
pp
Businesses making a marginal contribution
Companies or contracts operating in mature markets, with the prospect of
lower profitability
l fit bilit
Non-strategic operational units that have been turned around
Development of partnerships
Non-operational assets

39


Control of investments

2008: gross capital spending of around €5bn
o/w ~ €1.9bn in maintenance capital expenditures
o/w ~ €1.9bn in internal growth investments
o/w ~ €1.2bn in external growth investments
2009: gross capital spending of around €4.5bn
Thus a total of between €16bn - €17bn over the 2007-2009 period
Heightened control of working capital requirements

40


2008-2010 Action Plan

Priority given to improving ROCE: 10% net at the end of 2010

Productivity improvement

Improvement in the contribution of recent acquisitions

Implementation of the 2010 Efficiency Plan: €400m in full year 2011

Increasing f
I i free cash fl
h flow

Asset rotation: €1.5bn in disposals committed or completed in the period 2008-2009

Heightened control of new investments. Criteria of IRR ≥ WACC +3% maintained.
2009 capex target: €4.5bn

Strengthen geographic organization in order to increase commercial synergies
41


APPENDICES


Appendix

First half impacted by moves in currencies Appendix 1
91% of VE’s consolidated revenue at 06/30/08 is in OECD member countries Appendix 2
Breakdown of revenue by division Appendix 3
Operating cash flow margins Appendix 4
Recurring operating income margins Appendix 5
From recurring net income to net income Appendix 6
“Efficiency 2010” Veolia Environnement Efficiency plan Appendix 7
Liquidity Appendix 8
Overview of Operating Financial Assets Appendix 9
Business momentum confirmed Appendix 10
Definition of ROCE Appendix 11
Stability of Veolia Environnement’s long-term shareholder base Appendix 12

43


Appendix 1: First half impacted by moves in currencies

Main currencies H1 2007 H1 2008 Δ H1 2008/H1 2007
(foreign currency 1 = € …)
US dollar
Average rate 0.7496 0.6475 -13.6%
Closing rate 0.7405 0.6344 -14.3%
14.3%

GBP sterling
Average rate 1.4802
1 4802 1.2828
1 2828 -13.3%
-13 3%
Closing rate 1.4837 1.2622 -14.9%

Czech crown
Average rate 0.0354 0.0398 +12.4%
Closing rate 0.0348 0.0419 +20.4%

Korean won
Average rate 0.0008 0.0007 -12.5%
Closing rate 0.0008 0.0006 -25.0%
The average rate applies to the income statement and cash flow statement
The closing rate applies to the balance sheet
44


Appendix 2: 91% of Veolia Environnement’s consolidated
revenue at June 30, 2008 is in OECD member countries

Other Europe (OECD) 18%
N. America
(OECD) 9%
Asia / Pacific (OECD) 5%
Germany 9%
Other Europe (Non-
OECD) 1%
S. America 1%
UK 8%
Other Asia (Non-
OECD) 2%
Middle East 2%
Africa 3%

France 42%

OECD member countries ~ 91% of Veolia Environnement’s revenue
Non-OECD countries ~ 9% of Veolia Environnement’s revenue

45

2008, First Half Results

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