2010, First Half Results

First half 2010
First half 2010
results

Investor Relations, 2010 first half results ‐ 06/08/10

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 t
th iti ld terminate or modify some of V li E i
i t dif f Veolia Environnement's contracts, th risk th t our l
t' t t the i k that long‐term contracts may
t t t
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 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
past, 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.

2


Table of contents
Table of contents

Highlights

2010 first half results

2010 objectives

3

Antoine Frérot
Chief Executive Officer


Overview of trends in activity (1)
First half of 2010
Water: declining revenue in Works activities
Water: declining revenue in Works activities
• Continued lower Works activity mainly due to the completion of 3 large
contracts in the Middle East
• G d ili
Good resilience of operations despite the end of the Paris contract
f ti d it th d f th P i t t
Environmental Services: market improvement
• Strong rebound in prices of recycled raw materials and services pricing remain
g p y p g
at good levels
• Improvement in volumes is fragile and uneven
• Contract signature selectivity
g y
Energy Services: first half stable
• Climate conditions more favorable at the beginning of the year / negative
impact of energy prices
impact of energy prices
Transportation: good dynamics masked by the end of 3 contracts
• Negative revenue impact of €350m related to the end of the Bordeaux,
Melbourne and Stockholm contracts
Melbourne and Stockholm contracts
• Revenue growth of 8.8% excluding the impact of these contracts
5


Near and mid‐term
Reappearance of opportunities for organic growth in core targets
Reappearance of opportunities for organic growth in core targets
• For public collectivities
• In all our specialties

Interesting opportunities to exchange and optimize assets
• Water in Central Europe
Water in Central Europe
Portfolio of United Utilities contracts in Europe
Entry of IFC into the capital of Veolia Voda for 9.5%
•E
Energy efficiency in the Czech Republic
ffi i i th C h R bli
Divestment of 85% of Usti and 15% of Dalkia Ceska
NWR Energy (industrial platform in Ostrava and Poland)

Continued pursuit of asset portfolio redeployment

6


Significant commercial and strategic advances
Significant commercial and strategic advances

SEDIF contract win for 12 years
y

Important commercial successes bring profitable growth
• W t L Ré i
Water: La Réunion, Royan, Petrobras and Catalonia contracts
R P t b dC t l i t t
• Environmental Services: High performance sorting and recycling in Nantes,
Staffordshire, Angers’ biopôle, Waste‐to‐energy in Beauvais
• Dalkia: Cogeneration by biomass in Lodz Poznan as well as in France (7
Dalkia: Cogeneration by biomass in Lodz, Poznan as well as in France (7
projects)
• Transportation: Saxony, Bavaria, Rhine Westphalia, Boston, Phoenix
• Multiple divisions: Renault in Tangier
p g

Signature of agreement for the merger of Veolia Transport / Transdev on
May 5, 2010
y ,

7


Improvement confirmed
Improvement confirmed
Slight decline in revenue: ‐1.2%
• Noticeable improvement in the second quarter in all divisions
p q
Operating cash flow growth of 2.7%
Improvement in recurring operating income: +6.6% (operating income +11.2%)
• I
Improvement in associated margins
ti i t d i
Growth in recurring net income: +6.6%, (+69.9% growth in net income)
2010 Efficiency Plan: €132m in cost savings in H1
• Cost reductions proceeding in line with annual €250m target
Strong growth in operating cash flow – net investments to €1,533m vs €850m (+80%)
• Maintained discipline regarding gross investments: €1,333m (‐12%)
Maintained discipline regarding gross investments: €1,333m ( 12%)
• Divestments: €766m vs. €268m
• Stable free cash flow vs. H1 2009 including the 86% cash dividend payment
Net financial debt amounted to €16bn
Net financial debt amounted to €16bn
• Unfavorable exchange rate effect: +€674m
• Extension of debt maturity after the debt exchange in July 2010

8


2010 objectives confirmed

• Recurring operating income improvement

• Positive free cash flow after dividend payment(1)

• €3bn of divestments over 2009 – 2010 – 2011

• €250m in cost reductions

• Maintain ratio objective: net debt / (cash flow from
operations + repayment of Operating Financial Assets)

(1) Excluding the planned merger of Veolia Transport/Transdev 9

Pierre‐François
Pierre‐François
Riolacci
Chief Financial Officer


2010 First half key figures
2010 First half key figures
En €m H1 2009 H1 2010  current  constant
Adjusted (1) FX rates FX rates

Revenue 17,389.3 17,177.3 ‐1.2% ‐3.3%
Operating Cash Flow(3) 1,835.2(2) 1,885.4 +2.7% +0.2%
Margin rate 10.6 % 11.0%
Recurring operating income 1,011.5 1,078.2 +6.6% +3.5%
Margin rate 5.8 % 6.3%
Operating Income 1,011.5 1,125.2 +11.2% +7.9%
Recurring net income attributable to 287.3 306.2 +6.6%
equity holders of parent
Net income attributable to equity
Net income attributable to equity 220.3 374.2 +69.9%
holders of parent

Dec 31 June 30 FX Impact
p
2009 2010

Net financial debt 15,127 16,027 +674

(1) First half 2009 results have been adjusted in order to assure the comparability of periods for the reclassification into «net income from discontinued operations”
of UK operations in the Transportation division and the Eolfi activities in the Energy Services division;
(2) As of January 1, 2010, due to the application of the new amendment to IAS 7, operating cash flow for H1 2009 has been adjusted for renewal expenses by an
amount of €148.3 m, of which €102.3m is within the Water division and €46.0m is within the Energy Services division.
11
(3) For detailed definition refer to 2009 Form 20-F page 74


Impact of FX movements on H1 2010 accounts
Impact of FX movements on H1 2010 accounts
Euro depreciation H1 2010 / H1 2009
Average Rate Closing Rate
Average Rate Closing Rate
• Australian dollar +27% +21%
• Czech koruna +6% +1%
• Pound sterling +3% +4%
• Polish zloty +12% +7%
• U.S. dollar
ll 0% +15%

Impacts on Group’s main figures
I G ’ i fi
• Revenue +€357m
• Operating cash flow
Operating cash flow +€47m
• Recurring operating income +€32m

• Higher net debt (at end of period rates) +€674m
12


Breakdown of consolidated revenue
Breakdown of consolidated revenue
By division By geographic region
Rest of the world
Transportation Water
€2,847m
, ,
€5,901m Asia / Pacific €1,008m
€1,271m
17% North 6%
America 7%
34% 10%
€1,679m
€1 679m
Energy
Services 22%
€3,721m 40%
37% France
F
27% €6,903m

Environmental Europe ex. France
Europe ex. France
Services €6,316m
€4,708m

Consolidated H1 2010 Revenue of €17,177m
C lid t d H1 2010 R f €17 177
13


Revenue
In €m
17,389
17 389 + 357 - 384
- 185 17,177

H1 2009 FX effect External Internal H1 2010
adjusted (1) growth growth
+2.1% -2.2% -1.1% -1.2%

of UK operations in the Transportation division and the Eolfi activities in the Energy Services division 14


Breakdown of revenue by division
Breakdown of revenue by division
In €m

17,389 17,177
  
Current Constant Exc. Scope
FX rates
FX rates FX rates
FX rates & FX
& FX
6,235 5,901
Water ‐5.4% ‐7.1% ‐5.7%
Environmental Services 4.6% 1.9% 6.6%
4,502 4,708 Energy Services 0.2% ‐1.6% 0.6%
Transportation ‐3.1% ‐5.2% ‐5.2%
VE Group
VE Group ‐1.2%
1 2% ‐3.3%
3 3% ‐1.1%
1 1%
3,713 3,721

2,939 2,847
H1 2009 H1 2010
adjusted (1)



An inflexion during second quarter in all divisions
An inflexion during second quarter in all divisions
Revenue in €m

1st Quarter 2nd Quarter 1st Half
2009 2010 At
constant
2009 2010 At
constant
2009 2010 At
constant
FX FX FX

Water 3,143 2,923
, , ‐7.8% 3,092
, 2,978
, ‐6.4% 6,235
, 5,901 ‐7.1%
,

Waste 2,188 2,204 ‐0.7% 2,314 2,504 4.3% 4,502 4,708 1.9%

Energy services 2,398 2,312 ‐4.9% 1,315 1,409 4.6% 3,713 3,721 ‐1.6%

Transportation 1,431 1,356 ‐6.2% 1,508 1,491 ‐4.4% 2,939 2,847 ‐5.2%

Group 9,160 8,794 ‐5.1% 8,229 8,383 ‐1.3% 17,389 17,177 ‐3.3%
Variation at
current FX ‐4.0%
4 0% +1.9%
+1 9% ‐1.2%
1 2%

16


Breakdown of revenue by geographic area
Breakdown of revenue by geographic area
In €m

17,389 17,177
   Exc.
Current Constant Scope & FX
FX rates
FX rates FX rates
FX rates
6,962 6,903
France ‐0.8% ‐0.8% 1.4%
Europe ex. France 2.3% ‐0.4% 1.6%
North America 4.2% 2.9% 2.7%
6,177 6,316 Asia / Pacific ‐4.0% ‐14.4% ‐15.2%
Rest of world
Rest of world ‐23.3%
23 3% ‐25.9%
25 9% ‐17.1%
17 1%
1,611 1,679 Group VE ‐1.2% ‐3.3% ‐1.1%
1,324 1,271
1,315
1 315 1,008
1 008
H1 2009 H1 2010
adjusted (1)



Revenue : Veolia Water, down 5.4%
Revenue : Veolia Water, down 5.4%
Veolia Water Solutions & Technologies: ‐ 26.2% at
constant scope and FX
• Impact of the completion of large Design & Build contracts
(Marafiq, Fujairah, Ras Laffan). Identical trend in first and First half revenue
second quarters (€m)
• Backlog for D&B activity has stabilized
Backlog for D&B activity has stabilized
• Good activity in the « Solutions » business 6,235 -5.4%
5,901
France : Revenue decline of 2.4% at constant scope
• Decline in Works ( 6 3%)
Decline in Works (‐6.3%) 4,013 -1.3% 3,960
• Slight increase in operations activity (+3.4%) excluding impact
of the end of the Paris contract
Outside France: +1.1% at constant scope and FX
Outside France: +1.1% at constant scope and FX 2,222 12 6%
2 222 -12.6% 1,941
1 941
• Europe (excl. France): +3.0% at constant scope and FX (United
Kingdom, Northern Europe)
S1 09 S1 10
• Africa / Middle East: +3.3% at constant scope and FX due to
Operations
increased volumes and tariffs in 2009
Works and E&C
• Asia Pacific: ‐4.9% at constant scope and FX due to end of
construction of the Gold Coast desalination plant (Australia)

18


Revenue: Veolia Environmental Services: 4.6%
Revenue: Veolia Environmental Services: +4.6%
First half revenue
(€m)
Variation in revenue H1 2010 / H1 2009 +5%
4,502 +4.6% 4,708
Waste volumes ± 0%
Price and volumes of recycled materials + 6%
Rise in service prices + 1%
FX effects
FX effects + 3%
+ 3%
Scope ‐ 5%

Breakdown of revenue by activity
Breakdown of revenue by activity H1 09 H1 10

2009 H1 2010
8% 8%
8% 23% 8% 22% Urban cleaning and collection
Non hazardous industrial waste collection and services
6% 6%
Hazardous industrial waste collection and services
Sorting and recycling
13% Hazardous waste treatment
Hazardous waste treatment
16%
Waste‐to‐energy from non hazardous waste
24% 24%
Landfilling of non hazardous and inert waste
19
18% 16%


Veolia Environmental Services: Breakdown of
revenue by geographic area
revenue by geographic area

% of H1 Δ at
2010
2010 constant
revenue scope & FX
France 34% +7% Higher recycled raw materials prices
Contract selectivity (municipal collection)
Contract selectivity (municipal collection)
Closure of 2 landfills
Good activity for hazardous waste
Germany 12% +12% Higher recycled raw materials prices
Higher recycled raw materials prices
Competitive pressure on municipal, DSD contracts and
industrial waste contracts
United
United 16% +4% Positive contribution of integrated contracts (PFI)
Positive contribution of integrated contracts (PFI)
Kingdom Decline in industrial waste volumes and landfilled
volumes during the first half, with stabilization in the
second quarter
North America 14% +5% Improvement in solid waste volumes in the second
quarter
Improvement in Industrial Services
Rest of the
Rest of the 24% +6%
world
20


Revenue: Veolia Energy Services, stable, 0.2%
Revenue: Veolia Energy Services, stable, +0.2%

Lower energy prices
Lower energy prices
• impact of ‐€83m First half revenue
(€m)

3,713 +0.2% 3,721
Favorable climate in the first half of 2010
primarily in France and Central Europe
• impact of +€65m
p 1 ,952 -1.9% 1,915

Stabilization in Works activities at constant 1,761 +2.6% 1,807
scope

H1 09(1) H1 10
Outside France
France



Revenue: Veolia Transportation, down 3.1%
Revenue: Veolia Transportation, down 3.1%
Revenue down 5.2% at constant scope and FX
rates
• Non‐renewal in 2009 of the Bordeaux, Stockholm First half revenue
and Melbourne contracts (‐€350m) (€m)
• Good commercial development
Valenciennes, The Netherlands (Haaglanden), 2,940 -3.1% 2,848
Germany, United‐States

Revenue growth of 1.8% in France at constant
scope

Revenue decline of 9.7% outside France at
constant scope and FX rates (impact of H1 09(1) H1 10
Stockholm and Melbourne ‐€300m)
Stockholm and Melbourne ‐€300m)



Operating cash flow (1)
Operating cash flow

In €m  FX 
H1 2009 H1 2010 current constant
adjusted(2) effect
FX rates
FX FX rates
FX

Water 808 788 ‐2.5% 16 ‐4.4%
Environmental Services
l 540 627 +16.1% 15 +13.3%
Energy Services 374 386 +3.2% 11 +0.1%
Transportation 160 159 ‐0.6%
0.6% 5 ‐3.8%
3.8%
Other ‐47 ‐75 ‐ ‐
Total Group 1,835 1,885 +2.7% 47 +0.2%

(1) Operating Cash Flow = cash flow from continuing operations before tax and interest expense
of UK operations in the Transportation division and the Eolfi activities in the Energy Services division
As of January 1, 2010, due to the application of the new amendment to IAS 7, operating cash flow for H1 2009 has been adjusted for renewal expenses by an 23
amount of €148.3 m, of which €102.3m is within the Water division and €46.0m is within the Energy Services division.


Operating cash flow margin improvement
Operating cash flow margin improvement

H1 2009 H1 2010
margin margin
adjusted (1)

Water 13.0% 13.4%
Environmental Services 12.0% 13.3%
Energy Services 10.1% 10.4%
Transportation 5.4% 5.6%
Other ‐ ‐
Total Group 10.6% 11.0%

of UK operations in the Transportation division and the Eolfi activities in the Energy Services division .
As of January 1, 2010, due to the application of the new amendment to IAS 7, operating cash flow for H1 2009 has been adjusted for renewal expenses by an
amount of €148.3 m, of which €102.3m is within the Water division and €46.0m is within the Energy Services division. 24


Efficiency Plan: Cost reduction progressing in
line with annual €250m objective
line with annual €250m objective
Efficiency Plan

H1 2009
€m H1 2010
(Reminder)

Water 37 38
Environmental Services 25* 43
Energy Services 21 31
Transportation 15 18
Other 3 2
Total Group 101 132

53 % of the annual objective realized during the first half

* Excluding the Environmental Services Division’s separate Plan of Adaptation in 2009 25


Recurring operating income increased 6.6%
Recurring operating income increased 6.6%

In m€ H1 2009  Current FX 
adjustéd (1) H1 2010 FX rates effect Constant
FX rates

Water 596 590 ‐1.0% 13 ‐3.3%
Environmental services 134 251 86.6% 8 80.7%
Energy services 256 268 4.8% 8 +1.6%
Transportation 81 48 ‐40.7% 3 ‐43.8%
Holding ‐56
56 ‐79
79
Recurring operating income 1,011 1,078 +6.6% 32 +3.5%
Of which change in fair value of ‐18 ‐33
p
provisions for landfill rehabilitation
f f

(1) First half 2009 results have been adjusted in order to assure the comparability of periods for the reclassification into «net income from discontinued
operations” of UK operations in the Transportation division and the Eolfi activities in the Energy Services division
26


Recurring operating income margin improvement
Recurring operating income margin improvement

Recurring operating
g p g
income margins

H1 2009 H1 2010
In €m margin
g
adjusted (1) margin
i

Water 9.6% 10.0%
Environmental services 3.0% 5.3%
Energy services 6.9% 7.2%
Transportation 2.8%
2 8% 1.7%
1 7%
Holding ‐ ‐
Total Group
Total Group 5.8% 6.3%

27


Net income increased 70%
Net income increased 70%

H1 2009 (1) H1 2010

In €m Recurring Non‐ Total Recurring Non‐ Total
recurring recurring

Operating income 1,011 ‐ 1,011 1,078 47 1,125
Cost of net financial debt (2)
Cost of net financial debt ‐406
406 ‐ ‐406
406 ‐443
443 ‐ ‐443
443
Corporate Tax Expense ‐198 ‐ ‐198 ‐188 ‐ ‐188
Share in net income of associates 7 ‐ 7 9 ‐ 9
Net income from discontinued
N ti f di ti d ‐ ‐68 ‐68 ‐ 43 43
operations
Net income attributable to non‐ ‐127 1 ‐126 ‐149 ‐22 ‐171
controlling interests
Net income attributable to equity 287 ‐67 220 306 68 374
holders of parent

(2) Including «other financial income and expenses », of which -€37m in unwinding discounts on provisions in 1H 2010 28


Cost of borrowing
Cost of borrowing
Δ30/06/10
In €m H1 2009 H1 2010
30/06/09

Cost of net financial debt ‐379 ‐408 ‐29
Impact of change in average debt +15
Impact of change in interest rates
Impact of change in interest rates ‐38
38
Other ‐6

In €m
17 000 16 819 16 827

16 500
16 027 Average net financial debt:
15 902
16 000
€15,542m at June 30, 2010 versus
15 500 15 377
15 127 €16,888m at June 30, 2009
15 000

14 500 Cost of borrowing stood at
14 000 5.06% versus 4.76% in 2009
Marc. 31, June 30, Setp. 30, Dec. 31, Marc. 31, June 30,
09 09 09 09 09 09
(4.47% at H1 2009 and 5.07% at H2 2009)
29


Completed Divestments in H1 2010
Completed Divestments in H1 2010
In €m
Industrial and financial divestments H1 2010 (1)
Industrial and financial divestments H1 2010 766
766

Mature assets 396
• Of which Montenay ‐ Dade (Environmental Services)
Of which Montenay Dade (Environmental Services),
Usti nad Labem (Dalkia)

Non‐strategic assets
g 106
• Of which Mediterranea delle Acque (Water); Brazil, Ireland
Korea (Environmental Services)

Development partnerships 192
• Of which IFC in Veolia Voda, CEZ in Dalkia Ceska Republica

Industrial Divestments 72

(1) Including capital increase subscribed by minority shareholders, net financial debt of divested companies and partial divestments between non-controlling
shareholders (with no change in consolidation scope)

30


Maintained discipline on net investments: €352m
Maintained discipline on net investments: €352m

In €m H1 2009 H1 2010

Maintenance capital expenditures 710 458
As % of consolidated revenue 4.1% 2.7%
Investments in growth/existing operations
316 392
(ex. operating financial assets)
Financial investments in growth (1) 248 324
New operating financial assets 242 159
Gross investments 1,516 1,333 ‐183
Industrial and financial divestments (2) ‐268 ‐766 +498
Repayment of operating financial assets
Repayment of operating financial assets ‐263
263 ‐215
215
Net investments 985 352 ‐633

(1) Including partial acquisitions between non-controlling shareholders (with no change in consolidation scope) and net financial debt from acquired entities
(2) Including capital increase subscribed by minority shareholders of €108m in H1 2010 and €57m in H1 2009, net financial debt of divested companies and partial
divestments between non-controlling shareholders (with no change in consolidation scope)
31


Strong cash generated from operations
Strong cash generated from operations
In €m H1 2009 H1 2010

Cash Flow From Operations(1)
h l i 1,836 1,878
Repayment of Operating Financial Assets 263 215
Total cash generation
Total cash generation 2,099 2,093
Gross investments ‐1,516 ‐1,333
Divestments 268 766
Cash generated from operations 851 1,526
Variation WCR ‐114 ‐382
Taxes paid
Taxes paid ‐218 ‐197
Interest expense ‐347 ‐352
Dividend (2) ‐402 ‐709
Other (3) 73 ‐19
Free Cash Flow ‐157 ‐133

(1) Of which financial cash flow and cash flow from discontinued operations ((€2m) in H1 2010 et (€6m) in H1 2009)
(2) Dividend paid to shareholders and minority shareholders and other movements
(3) Includes in particular changes in receivables and other financing assets totaling (€27m) in H1 2010 and €62m in H1 2009
32


Change in net financial debt
Change in net financial debt
In €m H1 2009 H1 2010

Net financial debt at January 1st ‐16,528 ‐15,127
Free cash flow ‐157 ‐133
FX effects
FX ff t ‐30
30 ‐674
674
Other ‐112 ‐93
Net debt at June 30 ‐16,827 ‐16,027
Change in net debt ‐299 ‐900
Strong liquidity position : €9.7bn at the end of June 2010
Pursuing active debt management
• Average maturity of net debt of 9.9 years following the debt swap in July 2010
( g y y
related to bonds due in 2012 and 2013 (average maturity of 9.5 years at June 30,
2010 and 10 years at the end of December 2009)
Ratings
• Moody’s : P‐2 / A3 negative outlook (confirmed on July 8 2010)
Moody s : P 2 / A3 negative outlook (confirmed on July 8, 2010)
• Standard & Poor’s : A‐2 / BBB+ Stable outlook (April 21, 2010: ratings confirmed
& outlook revised from negative to stable) 33



• Recurring operating income improvement

• Positive free cash flow after dividend payment(1)

• €3bn of divestments over 2009 – 2010 – 2011

• €250m in cost reductions

• Maintain ratio objective: net debt / (cash flow from
operations + repayment of Operating Financial Assets)

(1) Excluding the planned merger of Veolia Transport/Transdev 34


Table of contents of appendices
Table of contents of appendices
Currency movements Appendix 1
Impact of FX rates on H1 2010 operating cash flow
p p g Appendix 2
pp
Gross investments by division Appendix 3
Debt management Appendix 4
Impact of foreign currency on net debt
I t ff i t d bt Appendix 5
A di 5
VE SA bond redemption schedule Appendix 6
Consolidated balance sheet Appendix 7
Main contracts won or renewed in 1H10 Appendix 8
Accounting treatment for renewal expenditures (IAS 7) Appendix 9
Veolia ‐ Transdev: calendar
Veolia ‐ Transdev: calendar Appendix 10
Appendix 10

37


Appendix 1: Currency movements
Appendix 1: Currency movements
Main currencies  H1 2010
(1 unit of foreign currency = €…) H1 2009 H1 2010 / H1 2009
U.S.
U S dollar
Average rate 0.7507 0.7528 +0.3%
Closing rate 0.7075 0.8149 +15.2%

Pound sterling
Average rate 1.1187 1.1494 +2.7%
Closing rate 1.1736 1,2233 +4.2%

Korean won
Average rate 0.0006 0.0007 +17.2%
Closing rate 0.0006 0.0007 +20.2%

Australian dollar
Average rate 0.5322 0.6730 +26.5%
Closing rate 0.5761 0.6943 +20.5%

Czech koruna
Average rate 0.0368 0.0389 +5.5%
Closing rate 0.0386 0.0389 +0.7%
The average rate applies to the income statement and cash flow
The closing rate applies to the balance sheet
38


Appendix 2: Impact of FX rates on H1 2010
operating cash flow
operating cash flow
H1 H1 H1
2008 (1)
2008 2009 2010
Currency Local currency Change Impact
(in millions) Δ H1 €/X H1 H1 on H1
2010/ 2010 2010/ 2010 op.
H1 H1 cash flow
h fl
2009 2009 (€m)
U.S. dollar zone 209 203 255 1.328 +1
(USD) +28% +0.3%
Pound sterling zone 209 174 164 0.870 +5
(GBP) ‐6% +2.7%
Czech koruna zone 3,725 3,593 3,331 25.734 +6
(CZK) ‐7% +5.2%
Korean won zone 39,252 35,319 46,253 1,532.27 +4
(KRW) +31% +14.7%
Australian dollar zone
Australian dollar zone 47 30 51 1.486
1 486 +11
(AUD) +70% +20.9%
Polish zloty zone 211 217 264 4.003 +7
(PLN) +22% +10.6%

(1) 2008 figures have not been restated for activities that are expected to be divested

39


Appendix 3: Gross investments by division
Appendix 3: Gross investments by division

Growth
In €m Financial incl. New
Δ in
Maintenance consolidation Industrial operating Total
capex financial
scope assets
Water 116 107 197 110 530
Environmental Services
Environmental Services 189 33 74 12 308
Energy Services 40 181 73 19 313
Transportation 103 2 39 18 162
Other 10 1 9 0 20
Total H1 2010 458 324 392 159 1,333
Total H1 2009 710 248 316 242 1,516

40


Appendix 4: Debt management
Appendix 4: Debt management
Ratings
• Moody’s : P‐2 / A3 negative outlook (confirmed July 8, 2010)
• Standard & Poor’s : A‐2 / BBB+ stable outlook (April 21, 2010)
Bond redemption: €23m in H1 2010
Average maturity of net debt : 9.5 years at June 30, 2010 vs. 10 years in 2009
Group liquidity: €9.7bn, including €4.6bn in undrawn confirmed credit
lines( without any disruptive covenants)
Net Group liquidity: €6.3 bn
Net financial debt after hedges at June 30, Currencies (gross debt after hedges) at
2010 June 30, 2010
Other 19% (1)
Fixed rate: 62%
o/w Euro: 80%
Euro 61%
o/w USD: 52% GBP 10%
o/w GBP: 42%
Variable rate: 38% USD 10%
Variable cap-rate: 6%
(1) o/w RMB 4% and HKD 3%
41


Appendix 5: Impact of foreign currency on net debt
Appendix 5: Impact of foreign currency on net debt

Net debt at December 31, 2009
N t d bt t D b 31 2009 €15,127m
€15 127
Net debt at June 30, 2010 €16,027m
• Change
Change €900m

• Of which the impact of FX
Of which the impact of FX €674m
US dollar €283m
Pound sterling €151m
Hong Kong dollar €92m
Chinese renminbi yuan €73m

42


Appendix 6: VE SA bond redemption schedule
after the bond exchange completed July 1, 2010
the bond exchange completed July 1, 2010
1800

Average maturity of net debt moved from 9.5 years to CZK €0.02bn
GBP €0.8bn
1600 9.9 years after bond exchange completed July 1, 2010
y g p y ,
USD €1.8bn
€1 8b
EURO €10.3bn
1400 Total €12.9bn

1200

1000

800

600

400

200

0
2010 2012 2014 2016 2018 2020 2022 2024 2026 2028 2030 2032 2034 2036 2038

43


Appendix 7: Consolidated balance sheet
Appendix 7: Consolidated balance sheet

In €m
In €m 12/31/09
/ / 06/30/10
/ /
Intangible assets (concessions) 3,625    4,114
Property, plant & equipment 9,382   9,903
Other non‐current assets
Oth t t 11,313
11 313 12,306
12 306
Operating financial assets (current and non‐current) 5,652   5,723
Cash & cash equivalents 5,614    5,058
Other current assets 14,231    13,744
Total Assets 49,817    50,848
Capital (including minorities)
p 10,131
, 10,739
,
Financial debt (current and non‐current) 21,086    21,715
Other non‐current liabilities 4,381    4,868
Other current liabilities
Other current liabilities 14,219
14 219 13,526
13 526
Total Liabilities & Shareholders Equity 49,817    50,848

44


Appendix 8: Main contracts won or renewed
since the beginning of 2010
INTERNAL GROWTH
‐ Renewals: SMICTOM
 70 main contracts renewed in France during the 1st half 2010 in Water (o/w 36 in drinking water & 34 in Flandres Morinie
wastewater), 108 in Waste (o/w 52 from local authorities & 56 from companies), 2 in Transportation & 85% of Lens
contracts due to expire during the 1st half 2010 renewed in Energy
contracts due to expire during the 1st half 2010 renewed in Energy
 SEDIF (Syndicat des Eaux d’Ile de France) (water)
Public service concession based on the useful innovation on the following performances:
‐ technological : single control center « ServO », water traceability, Oise
third‐generation remote meter reading ; Carré de Réunion Strasbourg
‐ environmental : « Zero carbon service » ;   GIMD
‐ social: social program called « Water for all » ;
Caisse des
– Length: 12 years – Cumul rev : €3bn
Length: 12 years – Cumul. rev.: €3bn Dépôts SEDIF
Lanester Rennes
‐ Outsourcing / Privatization:
Orléans
 « Biopôle » waste recovery center from the Angers Loire metropolitan area (1st VES mechanical
biological treatment facility with composting & anaerobic digestion located in France) (waste) Biopôle
– Length: 6 years – Cumul. rev.: €46m Ancenis
 SMICTOM Flandres Morinie (waste) – Length: 8 years – Cumul. rev.: €40m Angers Tours
 Bayonne (transportation) – Length: 7 years – Cumul. rev.: €140m
Bayonne (transportation) Length: 7 years Cumul. rev.: €140m
 Antibes (transportation) – Length: 5 years – Cumul. rev.:  €55m
 Oise semipublic mass transit authority – Integrated services system for the Oise transit hub
Montluçon
(transportation) – Length: 12 years – Cumul. rev.: €29m
 Montluçon – Energy performance contract (energy) – Length: 10 years Limoges
‐ Engineering / Design & Build:
 The « Grand Prado » from the Reunion North Interdistrict Community (CINOR) (BOT) (water)
The « Grand Prado » from the Reunion North Interdistrict Community (CINOR) (BOT) (water)
– Length of contract: 20 years
– Cumul. rev.: €270m incl. €75m for construction
 Carré de Réunion in Versailles (D&B) (water) – Cumul. rev.:  €48m
 CRE 3 (construction & operation of 7 new biomass cogeneration plants in Rennes, Antibes
Strasbourg, Orléans, Tours, Angers, Lens & Limoges) (energy) Bayonne
 Town of Lanester (Morbihan) (DBO contract for a biomass heating network)
(energy) – Operating length: 24 years
Grand
PARTNERSHIPS Prado

 Agreements between Veolia Environnement & Caisse des Dépôts relative to the  Renewals
Veolia Transport‐Transdev merger (1) (50/50 before the new group’s IPO) (transportation)  Outsourcing / Privatization
 Partnership between Veolia Environnement & the Groupe Industriel Marcel Dassault (GIMD)
Partnership between Veolia Environnement & the Groupe Industriel Marcel Dassault (GIMD)
with the undertaking by GIMD to maintain its 5% holding of the stock & voting rights of  Engineering / Design & Build
Veolia Environnement for a period of 5 years  Partnerships with other companies
(1) Signature of the definitive agreements announced 45
on May 5, 2010


INTERNAL GROWTH Vesteralen
‐ Renewals: Lofoten
 Westminster (waste)
– Length: 7 years (7‐year option) – Cumul. rev.: €298m excl. option
 Medway Council (1) (waste) – Length: 7 years – Cumul. rev.: €125m
Medway Council Length: 7 years Cumul. rev.: €125m
 Kristianstad/Skane County (transportation)
– Length: 8 years (2‐year option) – Cumul. rev.: €74m excl. option Highlands Sweden
 E4 (interregional line) (transportation) – Length: 8 years – Cumul. rev.: €69m Moray Norway
E4
 Frankfurt (transportation) – Length: 6 years – Cumul. rev.: €57m Tay
 Lofoten (transportation) – Length: 7 years (3‐year option) – Cumul. rev.: €31m excl. option Scottish
 V t l (t
Vesteralen (transportation) – L th 7
t ti ) Length: 7 years (3‐year option) – C
(3 ti ) Cumul. rev.: €30m excl. option
l €30 l ti Water Kristianstad
‐ Outsourcing / Privatization: Solutions
Tallinn
 Staffordshire County Council (1) (waste) ‐ Length: 25 years
– Cumul. rev. for the County Council : £1bn incl.  third party waste & sale of electricity Estonia
Staffordshire Poland
‐ Engineering / Design & Build: Poznan
 Construction of 2 boilers wholly dedicated to biomass in Lodz & Poznan (energy)
Construction of 2 boilers wholly dedicated to biomass in Lodz & Poznan (energy) United Kingdom
United Kingdom Germany Lodz
od
– Additional yearly rev. : €364m Westminster
 Construction & operation of a set of solar photovoltaic fields in the region of Pouilles NWR Energy Bielsko Biala
(energy) – Operating length: 20 years – Cumul. rev.: €160 m for construction Medway
Francfurt CEZ IFC
Czech Rep.
EXTERNAL GROWTH
 Acquisition (2) of several United Utilities activities in Europe (water):
Acquisition of several United Utilities activities in Europe (water):
‐ 58% stake in Sofiyska Voda (water & wastewater for the city of Sofia in Bulgaria)
‐ 26% stake in AS Tallinna Vesi (water & wastewater for the Tallinn in Estonia)
‐ 33% stake in Aqua SA (water & wastewater for the city of Bielsko Biala in Poland) Italy
Bulgaria
‐ portfolio of outsourcing, industrial engineering & infrastructure contracts in UK
‐ minority stakes in 3 PFI contracts in Scotland (Tay, Moray & Highlands)   Sofia

 Acquisition of NWR Energy (leader in Czech Rep. In the mining & industrial sector)
Acquisition of NWR Energy (leader in Czech Rep. In the mining & industrial sector)
from the NWR group (energy)
 Renewals Pouilles
PARTNERSHIPS  Outsourcing / Privatization
 Partnership between Veolia Energy‐Dalkia & CEZ (1er company in the Czech energy market) (energy):  Engineering / Design & Build
‐ disposal by Dalkia International of its 15% stake in Dalkia Ceska Republica’s shares to CEZ
‐ disposal by Dalkia Ceska Republica of its 85% stake in Dalkia Usti Nad Labem to CEZ
 Interests acquisitions in others companies
 P
Partnership between CREED (Veolia’s Waste management & Energy Research Center),
hi b CREED (V li ’ W &E R hC )
 Partnerships with other companies
Partnerships with other companies
the company Dalkia & Lodz Technical University (energy)
 Partnership between Veolia Voda & the IFC (International Financial Corporation – World Bank) (water) (1) Signature announced on July 2010
‐ 9.5% stake acquisition via a rights issue in Veolia Voda by IFC   (2) Transaction subject notably, to the competition authorities &
 Partnership between Veolia Water & Scottish Water with the new JV establishment « Scottish Water to the EBRD’s approval for Continental Europe (excl. Poland) 46
Solutions » (backed notably by Veolia Water UK) dedicated to delivering the Scottish Water investment
program over the 2010‐2015 period, one of the largest in the UK water industry (water)


INTERNAL GROWTH
‐ Renewals:
 Boston (transportation) – Length: 2 years – Cumul. rev.: €486m
 York (Bus Rapid Transit) (transportation)
‐ Length: 5 years – Cumul. rev.: €71m
Canada
‐ Outsourcing / Privatization:
 Phoenix (transportation) – Length: 5 years – Cumul. rev.: €314m

 York (bus & transport of people with special needs) (transportation)
– Length: 5 years (5‐year option) – Cumul. rev.: €80m excl. option
York
Cleantech
 Savannah (transportation)
– Length: 5 years (5‐year option) – Cumul. rev.: €61m excl. option Group United States Boston
Baltimore
Phoenix cooling network
 Boston (trigeneration for 6 hospitals) (energy)
( g p )( gy)
– Length: 10 years – Cumul. rev.: $70m
$ Savannah
 Suburbio hospital under PPP (Public‐Private Partnership) in the
State of Bahia (energy)
– Operating length: 20 years – Cumul. rev.: €107m
g g/ g
 Petrobras P63 (1) & Tupi (D&B) (water) – Cumul. rev.: €41m

EXTERNAL GROWTH Brazil
Suburbio Hospital
S b rbio Hospital
 Acquisition of a cooling network in Baltimore (energy)

PARTNERSHIPS  Renewals
 Outsourcing / Privatization
 Partnership between Veolia Environnement & Cleantech Group  Engineering / Design & Build
(leading global innovation network of start ups & investors in
(leading global innovation network of start‐ups & investors in  Interests acquisitions in other companies
Interests acquisitions in other companies P63 & Tupi
p
clean technologies) with the program « Veolia Innovation  Partnerships with other companies Petrobras
Accelerator » (VIA) with the objective to boost cleantech
innovation by cooperating with the most innovative start‐ups (1) Announced on Aug. 2010 47



INTERNAL GROWTH
‐ Renewals:
l China

 Rockingham – Manudrah (transportation)
– Length: 10 years – Cumul. rev.: €150m
Shenzhen
/ Baoan

 Shenzhen Baoan Sludge (D&B) (water) – Cumul. rev.: €17m

Australia

Rockingham

 Renewals
 Engineering / Design & Build
48

2010, First Half Results

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