The document discusses Veolia Environnement, a corporation listed on the NYSE and Euronext Paris. It provides three key points:
1) In 2002, Veolia overcame difficult conditions and stress scenarios to achieve solid results, successfully completing its spin off from Vivendi Universal.
2) Veolia has a strong business model focused solely on environmental services with five leading brands and a balanced customer mix across developed countries.
3) In 2002, Veolia improved its financial flexibility and credit profile by generating significant cash flow, reducing net debt, and strengthening its balance sheet ratios and liquidity position.
A presentation of the information research by NICVA and published in State of the Sector VI - delivered to the Institute of Fundraising conference on 12 November 2012.
A presentation of the information research by NICVA and published in State of the Sector VI - delivered to the Institute of Fundraising conference on 12 November 2012.
Preparing for EU Carbon Regulations - A Practical Guide by Evolution Markets ...Climate Connect
The webinar was hosted by Evolution Markets & Climate Connect on July 25th & July 26th 2012, to assist airlines in preparation for the EU aviation carbon trading scheme, insight on the program’s compliance regulations, the impact on the aviation sector, strategies for compliance, and how to access the trading market. Offers practical advice on how to set up and manage ETS accounts.
Preparing for EU Carbon Regulations - A Practical Guide by Evolution Markets ...Climate Connect
The webinar was hosted by Evolution Markets & Climate Connect on July 25th & July 26th 2012, to assist airlines in preparation for the EU aviation carbon trading scheme, insight on the program’s compliance regulations, the impact on the aviation sector, strategies for compliance, and how to access the trading market. Offers practical advice on how to set up and manage ETS accounts.
The paper presented at ECEEE industrial summer study 2012 illustrates the basics of the Italian white certificates scheme and its capability to promote energy efficiency in the cement industry
JMeter webinar - integration with InfluxDB and GrafanaRTTS
Watch this recorded webinar about real-time monitoring of application performance. See how to integrate Apache JMeter, the open-source leader in performance testing, with InfluxDB, the open-source time-series database, and Grafana, the open-source analytics and visualization application.
In this webinar, we will review the benefits of leveraging InfluxDB and Grafana when executing load tests and demonstrate how these tools are used to visualize performance metrics.
Length: 30 minutes
Session Overview
-------------------------------------------
During this webinar, we will cover the following topics while demonstrating the integrations of JMeter, InfluxDB and Grafana:
- What out-of-the-box solutions are available for real-time monitoring JMeter tests?
- What are the benefits of integrating InfluxDB and Grafana into the load testing stack?
- Which features are provided by Grafana?
- Demonstration of InfluxDB and Grafana using a practice web application
To view the webinar recording, go to:
https://www.rttsweb.com/jmeter-integration-webinar
Slack (or Teams) Automation for Bonterra Impact Management (fka Social Soluti...Jeffrey Haguewood
Sidekick Solutions uses Bonterra Impact Management (fka Social Solutions Apricot) and automation solutions to integrate data for business workflows.
We believe integration and automation are essential to user experience and the promise of efficient work through technology. Automation is the critical ingredient to realizing that full vision. We develop integration products and services for Bonterra Case Management software to support the deployment of automations for a variety of use cases.
This video focuses on the notifications, alerts, and approval requests using Slack for Bonterra Impact Management. The solutions covered in this webinar can also be deployed for Microsoft Teams.
Interested in deploying notification automations for Bonterra Impact Management? Contact us at sales@sidekicksolutionsllc.com to discuss next steps.
GraphRAG is All You need? LLM & Knowledge GraphGuy Korland
Guy Korland, CEO and Co-founder of FalkorDB, will review two articles on the integration of language models with knowledge graphs.
1. Unifying Large Language Models and Knowledge Graphs: A Roadmap.
https://arxiv.org/abs/2306.08302
2. Microsoft Research's GraphRAG paper and a review paper on various uses of knowledge graphs:
https://www.microsoft.com/en-us/research/blog/graphrag-unlocking-llm-discovery-on-narrative-private-data/
Kubernetes & AI - Beauty and the Beast !?! @KCD Istanbul 2024Tobias Schneck
As AI technology is pushing into IT I was wondering myself, as an “infrastructure container kubernetes guy”, how get this fancy AI technology get managed from an infrastructure operational view? Is it possible to apply our lovely cloud native principals as well? What benefit’s both technologies could bring to each other?
Let me take this questions and provide you a short journey through existing deployment models and use cases for AI software. On practical examples, we discuss what cloud/on-premise strategy we may need for applying it to our own infrastructure to get it to work from an enterprise perspective. I want to give an overview about infrastructure requirements and technologies, what could be beneficial or limiting your AI use cases in an enterprise environment. An interactive Demo will give you some insides, what approaches I got already working for real.
Essentials of Automations: Optimizing FME Workflows with ParametersSafe Software
Are you looking to streamline your workflows and boost your projects’ efficiency? Do you find yourself searching for ways to add flexibility and control over your FME workflows? If so, you’re in the right place.
Join us for an insightful dive into the world of FME parameters, a critical element in optimizing workflow efficiency. This webinar marks the beginning of our three-part “Essentials of Automation” series. This first webinar is designed to equip you with the knowledge and skills to utilize parameters effectively: enhancing the flexibility, maintainability, and user control of your FME projects.
Here’s what you’ll gain:
- Essentials of FME Parameters: Understand the pivotal role of parameters, including Reader/Writer, Transformer, User, and FME Flow categories. Discover how they are the key to unlocking automation and optimization within your workflows.
- Practical Applications in FME Form: Delve into key user parameter types including choice, connections, and file URLs. Allow users to control how a workflow runs, making your workflows more reusable. Learn to import values and deliver the best user experience for your workflows while enhancing accuracy.
- Optimization Strategies in FME Flow: Explore the creation and strategic deployment of parameters in FME Flow, including the use of deployment and geometry parameters, to maximize workflow efficiency.
- Pro Tips for Success: Gain insights on parameterizing connections and leveraging new features like Conditional Visibility for clarity and simplicity.
We’ll wrap up with a glimpse into future webinars, followed by a Q&A session to address your specific questions surrounding this topic.
Don’t miss this opportunity to elevate your FME expertise and drive your projects to new heights of efficiency.
GDG Cloud Southlake #33: Boule & Rebala: Effective AppSec in SDLC using Deplo...James Anderson
Effective Application Security in Software Delivery lifecycle using Deployment Firewall and DBOM
The modern software delivery process (or the CI/CD process) includes many tools, distributed teams, open-source code, and cloud platforms. Constant focus on speed to release software to market, along with the traditional slow and manual security checks has caused gaps in continuous security as an important piece in the software supply chain. Today organizations feel more susceptible to external and internal cyber threats due to the vast attack surface in their applications supply chain and the lack of end-to-end governance and risk management.
The software team must secure its software delivery process to avoid vulnerability and security breaches. This needs to be achieved with existing tool chains and without extensive rework of the delivery processes. This talk will present strategies and techniques for providing visibility into the true risk of the existing vulnerabilities, preventing the introduction of security issues in the software, resolving vulnerabilities in production environments quickly, and capturing the deployment bill of materials (DBOM).
Speakers:
Bob Boule
Robert Boule is a technology enthusiast with PASSION for technology and making things work along with a knack for helping others understand how things work. He comes with around 20 years of solution engineering experience in application security, software continuous delivery, and SaaS platforms. He is known for his dynamic presentations in CI/CD and application security integrated in software delivery lifecycle.
Gopinath Rebala
Gopinath Rebala is the CTO of OpsMx, where he has overall responsibility for the machine learning and data processing architectures for Secure Software Delivery. Gopi also has a strong connection with our customers, leading design and architecture for strategic implementations. Gopi is a frequent speaker and well-known leader in continuous delivery and integrating security into software delivery.
DevOps and Testing slides at DASA ConnectKari Kakkonen
My and Rik Marselis slides at 30.5.2024 DASA Connect conference. We discuss about what is testing, then what is agile testing and finally what is Testing in DevOps. Finally we had lovely workshop with the participants trying to find out different ways to think about quality and testing in different parts of the DevOps infinity loop.
Securing your Kubernetes cluster_ a step-by-step guide to success !KatiaHIMEUR1
Today, after several years of existence, an extremely active community and an ultra-dynamic ecosystem, Kubernetes has established itself as the de facto standard in container orchestration. Thanks to a wide range of managed services, it has never been so easy to set up a ready-to-use Kubernetes cluster.
However, this ease of use means that the subject of security in Kubernetes is often left for later, or even neglected. This exposes companies to significant risks.
In this talk, I'll show you step-by-step how to secure your Kubernetes cluster for greater peace of mind and reliability.
Builder.ai Founder Sachin Dev Duggal's Strategic Approach to Create an Innova...Ramesh Iyer
In today's fast-changing business world, Companies that adapt and embrace new ideas often need help to keep up with the competition. However, fostering a culture of innovation takes much work. It takes vision, leadership and willingness to take risks in the right proportion. Sachin Dev Duggal, co-founder of Builder.ai, has perfected the art of this balance, creating a company culture where creativity and growth are nurtured at each stage.
Neuro-symbolic is not enough, we need neuro-*semantic*Frank van Harmelen
Neuro-symbolic (NeSy) AI is on the rise. However, simply machine learning on just any symbolic structure is not sufficient to really harvest the gains of NeSy. These will only be gained when the symbolic structures have an actual semantics. I give an operational definition of semantics as “predictable inference”.
All of this illustrated with link prediction over knowledge graphs, but the argument is general.
UiPath Test Automation using UiPath Test Suite series, part 4DianaGray10
Welcome to UiPath Test Automation using UiPath Test Suite series part 4. In this session, we will cover Test Manager overview along with SAP heatmap.
The UiPath Test Manager overview with SAP heatmap webinar offers a concise yet comprehensive exploration of the role of a Test Manager within SAP environments, coupled with the utilization of heatmaps for effective testing strategies.
Participants will gain insights into the responsibilities, challenges, and best practices associated with test management in SAP projects. Additionally, the webinar delves into the significance of heatmaps as a visual aid for identifying testing priorities, areas of risk, and resource allocation within SAP landscapes. Through this session, attendees can expect to enhance their understanding of test management principles while learning practical approaches to optimize testing processes in SAP environments using heatmap visualization techniques
What will you get from this session?
1. Insights into SAP testing best practices
2. Heatmap utilization for testing
3. Optimization of testing processes
4. Demo
Topics covered:
Execution from the test manager
Orchestrator execution result
Defect reporting
SAP heatmap example with demo
Speaker:
Deepak Rai, Automation Practice Lead, Boundaryless Group and UiPath MVP
2. Important Legal 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 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.
Germany, April 2003 2
3. Table of Contents
1/ 2002 : A decisive year
2/ A strong business model
3/ Improving credit profile
Germany, April 2003 3
4. 1/ 2002 : A decisive year
Successful finalisation of the spin off from VU :
A new corporate governance will be subject to approval of
shareholder meeting of April 30, 2003
Solid results despite a difficult environment
Germany, April 2003 4
5. 2002 : the Group has overcome 3 stress scenarios
“Shareholder” : the contagion risk has been removed by the
completion of the “spin off” from VU
“spin
“Sector” : The Latin America risk and the crisis in the Energy sector
are 2 non-issues for the Group. As world leader in Environmental
non-
Services VE is able to generate FFO, even in a difficult economic
economic
climate
“Liquidity” :
Cash-
Cash-flow generation up significantly
Decrease in net indebtedness : from 14.2 €bn to 13.1 €bn
€bn €bn
Strong improvement in [net debt / EBITDA] ratio from 4 to 3.4
Strengthening of financial flexibility by better covenant levels,
levels,
elimination of all ratings triggers and improvement in liquidity
position
Pension schemes : no key issue
Germany, April 2003 5
6. Strong Shareholder structure
Identified investors 30.6% Vivendi Universal 20.4%
Float 49.0%
Identified investors:
investors:
State Owned Companies (12,8%) Insurance Companies and others (10,7%) Relationship Banks (7,1 %)
CDC Groupama BNP Paribas
Groupe CNP Groupe AXA Société Générale
Caisse Nationale des Caisses d'Epargne Assurances Générales de France Crédit Lyonnais
Médéric Prévoyance Crédit Agricole Indosuez
Electricité de France (EDF) Generali Crédit Mutuel CIC
Eurazeo Dexia
Wasserstein Family Trust Natexis
NB : EDF owns 34% of Dalkia
Germany, April 2003 6
7. 2/ A strong business model :
Our strategy is clear and unchanged : VE is not a « multi utility » but
remains focussed on one business : environmental services.
VE is not only one of the largest
but also the only “pure” player
Germany, April 2003 7
8. A key competitive advantage : 5 brands
with a strong leadership on their markets
Water
No.1 worldwide :
Municipal and industrial water and wastewater
treatment and services
Residential and commercial treatment and services
Waste No. 1 in Europe
No. 3 worldwide
Collection and services
Disposal and treatment (solid, liquid, hazardous waste)
Energy No. 1 in Europe for heating
Services
Energy management
Industrial utilities
Facilities management
Transport No. 1 Private in Europe
Private and public passenger transportation
Rail, buses and others
FCC
Environmental services in Spain (FCC)
Joint venture VE / FCC in Latin America
(Proactiva)
Proactiva)
Germany, April 2003 8
9. Continued execution of strategy
Confirmed business model
The pure player in environmental services
4 complementary divisions
Water
Waste
Energy services
Transportation
Secure geographical coverage
Over 95% of revenue generated in developed countries with
stable political and monetary systems
Growth ensured by a balanced customer mix (municipalities
~65% of revenue; manufacturing and service customers ~35%)
service
Positions in high-potential markets such as water
high-
Recurring future cash flows and undergoing growth:
strengthened additional order backlog (€30 billion in 2002)
(€30
Organic growth, no major acquisition required
growth,
Germany, April 2003 9
10. 2002 key figures
In € m 2002/2001
Exchange rate
Dec.31, 02 Dec. 31, 01 Current Constant
Revenue 30,079 29,127
Revenue from core businesses 28,073 26,513 +5.9% +7.2%
EBITDA 3,887 3,760
EBITDA from core businesses 3,727 3,480 +7.1% +8.0%
EBIT 1,971 2,013
EBIT from core businesses 1,847 1,813 +1.9% +3.2%
Net income 339 (2,251)
Recurring net income 429 420
Recurring net income per share (in €) 1.16 1.20
Dividend (in €) (1) 0.55 0.55
Dividend pay out ratio 47% 46%
Net debt 13,066 14,283
Number of shares: 405,070,459
Average number of shares in 2002: 370,213,187
(1) excluding tax credit and subject to the approval of the Shareholders Meeting on April 30
Germany, April 2003 10
11. 55% of core revenue outside France but low
exposure to emerging countries
Australia
Australia 2% Other
Other 2%
Asia 2%
Latin America 2%
France
North America 12% 45%
Rest of Europe 35%
≤ 10 % of revenue in countries rated ≤ A-
Germany, April 2003 11
12. 2002 : A sharp improvement of cash flows in
a secured low risk market
High predictability in cash flows
Secured by a total backlog of more than 10 years revenue
Low risk profile
Sensitivity to trade cycles further reduced through 2002
disposals
No exposure to electricity prices and power cycles
No energy trading activity
Low customer risk
Low country risk
Germany, April 2003 12
13. 2002 : VE has self-financed its growth
Cash flow generation up significantly : +36%
In €m 2002 2001
Cash flow from operations (FFO) +13% 2,780 2,455
Maintenance capital expenditure (1,323) (1,382)
Cash flow available before growth (oper. FCF) +36%
oper. 1,457 1,073
Capital expenditure for growth (2,415) (2,670)
Disposal of assets 1,771 598
Change in scope of consolidation (525) (460)
Change in working capital requirement (464) (1) 437 (2)
Cash flow before financial transactions (176) (1,022)
Change in capital 1,554 411
Impact of exchange rate, dividends and other (161) (484)
Cash flow for the year after capital increase 1,217 (1,095)
Net debt at start of year 2002 (14,283) (13,187)
Net debt at end of year 2002 (13,066) (14,283)
(1) Includes €223m increase related to the reduction in the French securitization program
(2) Includes €815m reduction related to the introduction of the French and US securitization program
Germany, April 2003 13
15. ROCE is a key indicator to « fine tune »
balance between growth and FCF
Key indicator: ROCE
2005 targets for growth and ROCE
8,5%
CA 2005 : +4% CAGR
8,0%
7,5%
7,0%
ROCE
6,5% 2002
CA 2005 : +8% CAGR
6,0%
5,5%
5,0% In €m
23 000 25 000 27 000 29 000 31 000 33 000 35 000 37 000
Core business revenue
Germany, April 2003 15
16. Industrial flexibility is strong : VE can afford to
balance growth / FCF
Average revenue growth in core businesses of
4–8% per year from 2002 to 2005
Improved profitability: increase in ROCE for each
division, based on:
Maturation of contracts signed since 1999
Productivity improvement efforts
Implementation of synergies
Selective investment policy
Active management of asset portfolio
Germany, April 2003 16
17. 3/ Improving credit profile
Success in 2002:
Strengthening of financial flexibility
2003 Target:
To extend debt maturity
using the bond markets
Germany, April 2003 17
18. Decrease of Gross Debt and Net Debt
In €m
2002 2001 Variation
Bonds 5 634 5 194 440
Other LT debt 7 279 7 940 - 661
Short term debt 3 796 5 576 - 1 780
Gross Debt 16 709 18 710 - 2 001
LT financial assets 512 342 170
ST financial assets 488 986 - 497
(1)
Marketable securities 261 324 - 63
(1)
Cash 2 382 2 776 - 394
Net Debt 13 066 14 287 - 1 217
(1) Total : 2 643 €m
Germany, April 2003 18
20. Financial flexibility improved :
1- Ratios / Covenants
Strong improvement of cover ratios
2002 2001 2000
EBITDA/financial
EBITDA/financial expense (x) 5.1 4.8 3.7
Net debt/EBITDA (x)
debt/EBITDA 3.4 3.8 4.0
Successful renegotiations
Same ratios in all the documentation (Bank loans and US PP) :
Elimination of all ratings triggers
Higher flexibility
No spread increase at current level
Covenants (Bank Definition)
(Bank Definition)
Interest coverage ratio (x) 5,7 (>4)
Debt payout ratio (x) 3,5 (<4,25)
Germany, April 2003 20
21. Financial flexibility improved:
2- Improvement of the liquidity position
Liquidity increase by 90% over the past two years
March 2003 December 2002 December 2000
In € m Total Available Total Available Total Available
Multi Purpose Facilities 1 750 1 750 1 300 1 300 1 200 1 200
Bank Facilities 233 423 200
Syndicated Loans 4 415 2 615 4 415 2 149 4 564 0
(1)
(E)
Cash immediately available 1 822 1 681 1 541
Total 6 420 5 553 2 941
(1)
Other cash/Marketable securities 962 962 483
Grand Total 7 382 6 515 3 424
(1) Total : 2 643 €m
Germany, April 2003 21
22. Structure of the debt
Currency Type of rate
(after hedging)
Others 10%
Floating rates 49%
USD 22%
Fixed rates 51%
EUR 68%
VE strategy : To hedge FX and interest risks (FFO in
currencies,
currencies, contracts indexed on inflation)
Based on gross debt
Germany, April 2003 22
23. Diversification of funding sources
Bank Debt : 58% Bank Debt : 76%
All Bonds : 42% All Bonds : 17%
Commercial paper Bonds Commercial
Bonds 7% 3% paper 4%
26% Océanes C/C VU
10% 7%
Bilateral facilities
39%
Océanes Syndicated loans
9% 24% Bilateral facilities
52%
Syndicated loans
19%
Dec.
Dec. 2002 Dec.
Dec. 2000
Germany, April 2003 23
24. Centralized debt management
Proportional consolidation (PC*)
Subsidiaries
and Project Finance Structures
16%
26%
Subsidiaries 84%
12% 62% Vivendi Environnement
Vivendi Environnement
Group VE (bn € 13,1) VE global (bn € 9.7)
(excluding PC and PFS : non recourse debt)
(excluding debt)
Based on net debt
* PC include essentially FCC, Dakia International and Berlin Wasser
Germany, April 2003 24
25. Pension plan and other cost retirement benefits
In € m 2002 2001
Benefit obligation (973) (928)
Fair value of plan assets 766 903
Funded status of plan (207)(*) (25)
(*) France : legal retirement obligation : ~ € 120 m
UK : ~ € 60 m
Others : ~ € 27 m
~ € 207 m
US : all pension plans are based on defined contribution sche me
Germany, April 2003 25
26. Off-balance Sheet
Off-balance
Put FCC
Under the terms of the option agreement, Ms. Koplowitz has a put option to sell to VE
at any time before October 6, 2008, her 51% stake in B 1998 SL (…).
During the last analyst meeting, Henri Proglio has mentionned that for VE this put is
less a risk than an opportunity. Esther Koplowitz reply is very clear :
“ Esther Koplowitz wishes to express her commitment to remain in the company…
and to dispel any misunderstanding, she denies any intention to exercise her option
to sell this interest “.
If put exercised :
Year 2002 After excercising After public After selling
the put offer non-core
Net Debt / Ebitda 3,4 3,3 3,7 3,3
FCC Revenue 2002 : € 5 317 m SOP € 4 508 m (1)
Servicios 31% SOP € 1 703 m (1)
Cementos 39%
Construcción 16%
SOP € 2 805 m (1)
Servicios urbanos 12%
Otros 2% (1) Schroder SalomonSmithBarney 25/02/03
Germany, April 2003 26
27. LT Ratings : S&P BBB+ / O s
Moody’s Baa1 / O -
ST Ratings confirmed A2 (S&P), P2 (M)
One success : withdrawal from S&P “credit cliff list ” in
December 2002
Removal of all ratings triggers
Easing of covenant levels
Extension of the average debt maturity
BBB+ rating stable
Germany, April 2003 27
28. LT Ratings : S&P BBB+ / O s
Moody’s Baa1 / O -
One disappointment : Moody’s retains a negative outlook
despite the elimination of the Shareholder risk
The negative outlook was the result of the Xdefault of Vivendi
Universal, cleared up in August 2002
The last press release on March 3rd states : “ VE has made
significant progress in 2002 in improving the financial arrangements of
arrangements
facilities by removing all rating triggers that could lead to acceleration
acceleration
and by increasing headroom under its financial covenants.
The negative outlook reflects Moody’s views regarding the needs for
further strengthening in areas including liquidity, increasing the
the
availability and maturity profile of its financing arrangements, and
reducing the growth trends in its underlying capital expenditure levels.”
Germany, April 2003 28
29. Our targets for 2003 - 2004
Further improvement of cover ratios
2003 : positive free cash- flows after disposals and
cash-
growth capex
≥ 2004 : positive free cash-flows
cash-
No Debt increase :
Stabilization or even reduction
Extension of duration by using bond markets
Rating :
Maintain or even improve our LT and ST ratings
Germany, April 2003 29
31. History of Vivendi Universal’s stake in Vivendi
Environnement’s equity capital
December 1999 Formation of Vivendi Environnement (VE),
100% owned by Vivendi Universal (VU)
July 20, 2000 IPO
VU owns 72.3%
December 17, 2001 VU sells 9.3%
VU owns 63%
June 28, 2002 VU sells 15.5%
VU owns 47.5%
August 2, 2002 1.5 billion euro capital increase for VE
VU owns 40.8%
December 24, 2002 VU sells 20.4%, +20.4% call option
exercisable at 26.5 euros per share at any
time until December 2004. VU owns 20.4%
Germany, April 2003 31
32. Covenants (Bank Definition)
Interest coverage ratio (x) 5,7 (>4)
Debt payout ratio (x) 3,5 (<4,25)
In €m
EBITDA = + EBIT 1 971,3
+ Operational amortization 1 699,3
+ Valuations allowances relating to LT assets 0,0
+ Profit sharing 39,0
3 709,6
Financial expense = + Net interest expenses 680,9
+ Other financial profits - 32,1
648,8
Germany, April 2003 32
33. Securitization Programs
In €m
2002 2001 Variation
1. Securitization 379 883 - 504
Water France 379 713 - 334
USF 0 170 - 170
2. Facturing 767 656 + 111
3. Cogevolt 739 859 - 120
(future receivables)
Total 1 885 2 398 - 513
Germany, April 2003 33
34. 2003 : A new governance and a new name as a
result of the new shareholder structure *
A CEO and a new Board of Directors (14 members) :
Board of Directors
Henri Proglio (Chairman of Board of Directors)
Jean Azéma Arthur Laffer
Daniel Bouton Francis Mayer
Jean-Marc Espalioux Serge Michel
Jacques Espinasse Georges Ralli
Paul-Louis Girardot Baudouin Prot
Philippe Kourilski Louis Schweitzer
Murray Stuart
The Two Board committees should be maintained :
Audit, Transaction and Commitment Committee
Selection and Compensation Committee
An Ethical Chart has been approved
(* subject to approval of shareholders meeting of April 30, 2003)
2003)
Germany, April 2003 34
35. Significant items by Division
Water France Good trend for both revenue and earnings
Revenue € 11 288 m Increase in water distribution
EBIT margin 7.4% Return to profit for Vivendi Water Systems
USA Stable performance for core businesses and continued
slowdown in sales of non- core equipment
non-
Consumer business stable
RoW Increased contribution from Central Europe, and start-up of
start-
major contracts in Asia (Hynix, Chengdu)
(Hynix, Chengdu )
Waste France Partial impact of restructuring measures in progress
Revenue € 6 139 m
UK Revenue growth of 14%
EBIT margin 6.4% EBIT x 1.5 (positive impact of recovery plan, Sheffield
and Bromley)
USA Weakness in "industrial services" and upturn for "toxic
waste”
waste ” activities
Asia Excellent performance from PWM: 10% rise in revenue
and further improvements in margin
Germany, April 2003 35
36. Significant items by Division
Energy services France Strong growth in cogeneration and service contracts
Revenue € 4 571 m Impact of business mix on margin
EBIT margin 7.1%
Europe Revenue growth in Southern and Central Europe
EBIT x 4 in Italy due to integration of Siram
Good contribution from Estonia and Poland
Transportation France Contribution from Verney (acquisition)
Revenue € 3 422 m UK Difficult market, decline in passenger numbers
EBIT margin 3.2%
Other (Europe/USA) Full impact of new contracts in Northern and
Central Europe
Start-
Start-up of new contracts
FCC Double-digit
Double-digit increase:
Revenue € 2 653 m - in services: rise in demand for waste
management services
EBIT margin 9.3% - in cement business
Germany, April 2003 36
37. Strengthened financial situation through an
active financing policy in 2002
Active debt management
Total independence of financing (elimination of cross-default with
cross-
Vivendi Universal in August 2002)
Currency coverage of assets
Extension of average debt maturity
Elimination of all ratings triggers
Financial flexibility
Improvement in liquidity
Easing of covenant levels
No ring-fencing for core business
ring-
Low level of minority interests in Water & Waste (all major
subsidiaries are 100% controlled)
controlled)
Germany, April 2003 37
38. Off-balance Sheet
Off-balance
Put Southern Water
Main features
-Sale to SWC (a subsidiary of Royal Bank of Scotland) of 80,1% of Southern
Water
-VE to retain a 19,9% equity interest for £10m and to invest £150m in
preference shares
-Third party investor to invest £ 110m, in prefered shares, with a five year put
option on VE at par
Advantages :
-Reduced exposure (existing put option of £ 374m)
-No execution risk :
-Clearance received from UK authorities,
-Completion expected by mid-may
-Refinancing risk transferred to Royal Bank of Scotland
-Consolidation under the equity method ensures limited impact on ratios
Germany, April 2003 38
39. Structural Subordination within VE
1) No impact on financial ratios : EBITDA generation and net
debt well balanced
Group VE PC * + PFS VE global
Net debt / EBITDA (x) 3.36 3.24 3.40
FFO / Net debt (x) 0.21 0.19 0.22
* PC include essentially FCC, Dakia International and Berlin Wasser
Germany, April 2003 39
40. Structural Subordination within VE
2) Balance of external debt of VE SA with downstream loans
to subsidiaries
Downstream External
Net
Loans (*) Debt (**)
In € m 9 517 9 080 437
In case of default of VE, creditors would step in VE’s position not only as a
shareholder of the subsidiaries but also as a creditor fully supported and
unforceable.
Documented and structured internal loans protect
VE creditors against structural subordination.
(*) Net of loans and debt to subsidiaries (**) External debt net of cash
Germany, April 2003 40