Veolia Environnement 2010 Financial Results

2010 OBJECTIVES EXCEEDED

Good progression of profitability and returns in 2010, and recovery of organic growth confirmed quarter after quarter:

  • Consolidated revenue: 2.5% growth to €34,787M (+1.3% at constant scope and exchange rates) with an improvement in organic growth all throughout the year: -3.3% in Q1, +0.9% in Q2, +2.7% in Q3, +4.7% in Q4.
  • Adjusted operating cash flow improvement: +4.0% growth to €3,654M (+0.9% at constant exchange rates) and adjusted operating cash flow margin improvement from 10.3% in 2009 to 10.5% in 2010.
  • Adjusted operating income growth of 8.5% to €2,056M (+5.3% at constant exchange rates) and adjusted operating income margin improvement from 5.6% in 2009 to 5.9% in 2010.
    €265M in cost reductions.
  • Increase in adjusted net income of 11.6% to €579M. Net income was €581M, stable versus 2009.
  • ROCE after tax(*) increased from 7.6% in 2009 to 7.9% in 2010.

Positive free cash flow after payment of dividend of €409M

  • Net financial debt(*) of €15,218M versus €15,127M including a negative impact of €465M related to unfavorable exchange rate effects.
  • Divestments completed in 2010: €1,241M, more than €2.5 billion in two years.
  • Improvement in credit ratios

Finalization of the combination of Veolia Transport and Transdev on March 3, 2011: Transportation activities will be consolidated by proportional integration

Proposal to the Annual General Shareholders Meeting on May 17, 2011 to pay a dividend of €1.21 per share in cash or in shares

2011 Objectives: growing results

  • Improvement in adjusted operating income in the range of 4% to 8% (2)
  • Net income improvement
  • Minimum cost savings of €250M
  • Increased divestment program to at least €1.3 billion
  • Positive free cash flow(*) after payment of dividend(1)