2009 Annual Results

03/5/10  • Mixed
2009 Annual Results
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Debt reduction and cash flow generation
  • Significant decline in net financial debt to €15.1bn at the end of 2009 from €16.5bn at the end of 2008, and improvement in the credit ratio
  • Sharp increase in free cash flow(*) to €1,344m after divestments; positive after dividend payment and before divestments
  • Operating cash flow – net investments: €2,357m versus €601m in 2008, exceeding the
    2009 commitment of €2,000m
Significant cost reductions
  • General Efficiency Plan: contributed €255m in 2009 (vs. an initial objective of €180m) and Veolia Environmental Services’ Adaptation Plan: €126m in cost savings (vs. an initial objective of €100m)
  • Operating cash flow declined 1.7% at constant exchange rates to €3,956m, while
    operating cash flow margin was stable at 11.5%
  • Net income improvement and maintenance of dividend
  • Net income improvement of 44% to €584m
  • Proposal at the May 7, 2010, Annual General Meeting of Shareholders to maintain the dividend at €1.21 per share
In 2010, our outlook assumes economic stability in comparison with the second half of 2009:
  • Positive free cash flow(*) after dividend payment(1)
  • Cost reductions: Efficiency Plan contribution for 2010 raised to €250m
  • Recurring operating income improvement
  • For the next three to five years, pursue the program of divestments, with an average of €1bn divested per year, and continue to reduce costs, with €250m per year in cost savings; and depending on the recovery of the economic environment:
  • After-tax ROCE improvement, with an objective between 9% and 10% in year three to five
  • Average annual increase in recurring operating income of 4% to 8% during the period