Veolia Environnement Sa · EURONEXT:VIE
Veolia Environnement Sa — Veolia — Q1 2025 Earnings Presentation
36 slides from Veolia Environnement Sa's earnings presentation, May 7, 2025
Slide 1: Q1 2025 Key Figures, May 7th, 2025
May 7th, 2025 Estelle Brachlianoff, CEO Emmanuelle Menning, CFO
Slide 2: Highlights; Q1 2025 Key Figures
1 Highlights 2 Q1 2025 Key Figures
Slide 3: Highlights
HIGHLIGHTS Estelle Brachlianoff, CEO
Slide 4: Key Highlights
Key Highlights Solid Q1, in line with annual guidance, despite macroeconomic uncertainty Strength of Veolia winning formula: Resilience and Growth Significant value creation achievement: acquisition of 30% CDPQ minority stake in Veolia Water Technologies and Services “WTS” Lower net debt yoy and str
Slide 5: Solid Q1 2025, in line with guidance
Solid Q1 2025, in line with guidance ● Revenue: €11,507M, up +3.9%(1) excl energy prices ● EBITDA: €1,695M, up +5.5%(1), +60bps margin ○ including synergies at €25M (€460M cumulated) and efficiencies at €91M ○ in line with annual guidance of +5% to +6% organic growth ● Current EBIT(2): €915M, up +8.
Slide 6: Thanks to Veolia's winning formula: Resilience and Growth
Thanks to Veolia’s winning formula: Resilience and Growth Organic revenue growth Current Net Income +5.5%(1) doubled in 5 years +3.2%(1) €1,530M(2) in €760M FY2024 in FY2019 Diversified footprint Significant share of revenue France 20% generated from combining businesses Water Europe Rest of the Wor
Slide 7: In global uncertainty, Veolia has a resilient business model and the agility to adapt
In global uncertainty, Veolia has a resilient business model and the agility to adapt with strong track-record ● Unique positioning within TOP Long-term contracts, 11 years average, >90% renewed 3 in all key countries Revenues of which in €M Rabat ● Minimal exposure to tariffs Prague of which Brauns
Slide 8: Solid growth of Strongholds activities, up +3.9% in Q1
Solid growth of Strongholds activities, up +3.9%(1)(2) in Q1 District Heating Water Operations Solid Waste and Cooling Networks Revenue: €2,999M, up +3.3%(1) Revenue: €2,739M, up +3.0%(1) Revenue: €2,309M, up +4.9%(1)(2) ● Award of Příbram Water Operations ● Renewal and extensions of District ● New
Slide 9: Boosters growth, up +7.2% in Q1 including targeted M&A
Boosters growth, up +7.2%(1) in Q1 including targeted M&A Water Technologies Hazardous Waste Bioenergy, Flexibility, Revenue: €1,156M, stable Energy Efficiency Revenue: €1,071M, up +5.6%(2) Revenue: €1,232M, up +16.7%(3) ● Progressive revenue ramp-up ● Opening of Tahwil Hazardous waste (+6.1% organi
Slide 10: Efficiency gains and synergies in line with targets
Efficiency gains and synergies in line with targets Efficiency gains: €91M in Q1 Synergies post-Suez: €25M in Q1, €460M to date in line with annual target of >€350M in line with >€530M target by end 2025 Recurring operational efficiency embedded in business model Operational SG&A efficiency 9% SG&A
Slide 11: Achieving full ownership of WTS, part of Water Tech
Achieving full ownership of WTS, part of Water Tech, to further enhance growth and value creation in this GreenUp booster Fully aligned with GreenUp strategic roadmap, with Water Tech as a booster priority Enabling simplification and full integration thus enhancing operational performance and unlock
Slide 12: Simplification of the Water Technologies structure and integration
Simplification of the Water Technologies structure and integration to unlock full potential Current Proforma Full integration, enhancing operational performance and unlocking full potential for development and innovation Transaction 100% ~70% ~30% perimeter 100% VWT WTS Water Tech Division Water Tec
Slide 13: Transaction highlights and value creation
Transaction highlights and value creation Transaction at a Glance Transaction perimeter and rationale: Achieving full ownership by purchasing the residual 30% stake to unlock additional synergies and keep flexibility to pursue development of the Group assets Value creation: ~€90M cost synergies by e
Slide 14: Confirming our Water Technologies leadership
Confirming our Water Technologies leadership… North America, 41% Europe, 25% Asia Pacific, 13% #1 Worldwide €4,973m Revenues and €612m EBITDA in 2024 44 countries 38 technological sites Africa & Middle East, 13% Latin America, 8% 11 dedicated R&I Laboratories 8,000+ Clients Veolia TOP Membranes TOP
Slide 15: Reinforcing our financial ambitions with Water Tech
… and reinforcing our strong financial ambitions with Water Tech EBITDA CAGR of at least 10% over GreenUp plan SUPPORTIVE MARKETS VEOLIA, A LEADER STRONG AMBITION IN WATER TECH. & MEGATRENDS Wide range of technologies GreenUp 2027 (membranes, biological, Water scarcity chemical,...) ● Revenues: grow
Slide 16: GreenUp: Value creation offering resilience + growth
GreenUp: Value creation offering resilience + growth Fully confirmed 1.Growth 2.Performance 3.Capital Allocation GreenUp targets Solid and resilient growth(1) Boosters Efficiency Growth: €1bn/year net Mid to high single digit €350M/year = ≥ €8bn EBITDA growth(1) + Investments in organic in 2027 Syne
Slide 17: Q1 2025 Key Figures
Q1 2025 KEY FIGURES Emmanuelle Menning, CFO
Slide 18: Strong Q1 2025 Results
Strong Q1 2025 Results FX impacts Q1 % Variation at In €M Q1 2024 Q1 2025 (vs. 2024) constant scope and FX Revenue +42 +0.4% +1.5% EBITDA +11 +0.7% Revenue 11,556 11,507 +3.9% excl. energy prices Current EBIT +9 +1.0% Net financial debt -150 -0.8% EBITDA 1,624 1,695 +5.5% (vs.12/2024) EBITDA margin
Slide 19: Geographies: Solid growth in Rest of Europe and Rest of the World
Geographies: Solid growth in Rest of Europe and Rest of the World ● Water Technologies : stable revenue due to high comparison basis and timing of project delivery ● Rest of the World: +5.0%(1) ○ Solid growth in Asia : notably Hong Kong , Taiwan, Q1 2024 Q1 2025 Variation(1) Japan. Some recovery in
Slide 20: Water: Good performance with revenue up +2.4%
Water: Good performance with revenue up +2.4%(1) Variation vs. 2024 Q1 2025 Revenue Q1 2024 4,343 ● Water Operations revenue up +3.3%(1) ○ Pricing & indexation: continued price increases in Iberia Commerce/Volumes/Works +0.6% (+5.7%), CEE (+5.1%), US regulated and Chile. Indexation Price effect +1.8
Slide 21: Waste: Good performance with revenue up +3.7%
Waste: Good performance with revenue up +3.7%(1) thanks to resilient volumes and favorable pricing Variation vs. 2024 Q1 2025 Revenue Q1 2024 3,745 Commerce/Volumes +1.2% ● Solid Waste revenue up +3.0%(1) ○ Continued pricing strategy and favorable indexation Price increases +2.7% ○ Good commercial m
Slide 22: Energy: Good performance with revenue excl. energy prices up +5.3%
Energy: Good performance with revenue excl. energy prices up +5.3%(1) Variation vs. 2024 Q1 2025 Revenue Q1 2024 3,468 Commerce/Volumes/Works +2.2% ● District Heating and Cooling Networks Weather +3.2% revenue up +4.9%(1)(2) ○ Steady heat, lower electricity prices Energy prices -7.2% Other -0.1% ● B
Slide 23: Q1 2025 Revenue of €11,507M, up +3.9% excl. energy prices
Q1 2025 Revenue of €11,507M, up +3.9%(1) excl. energy prices Evolution vs Q1 2024 In €M Forex mainly driven by PLN and USD 11,556 11,507 Scope of -€271M, of which divestitures of Sade (-€165M), Lydec (-€157M) and RGS (- €80M), partially offset by acquisition in Hungary (+€113M) and few other tuck-in
Slide 24: Q1 2025 EBITDA of €1,695M, up +5.5%
Q1 2025 EBITDA of €1,695M, up +5.5%(1) Evolution vs Q1 2024 In €M Forex mainly driven by PLN and USD 1,695 Scope of -€30M, of which divestitures of 1,624 Sade, Lydec and RGS, partially offset by acquisition in Hungary and few other tuck- ins +0.7% -1.8% -0.8% +1.0% +1.4% +2.3% +1.5% Organic growth:
Slide 25: Q1 2025 Current EBIT of €915M, up +8.4%
Q1 2025 Current EBIT(1) of €915M, up +8.4%(2) Evolution vs Q1 2024 In €M Q1 2024 Q1 2025 Variation Current EBIT(1) up +8.4%(2), showing good operating leverage EBITDA 1,624 1,695 +5.5%(2) ● Lower amortization due to scope impact Renewal expenses -72 -74 Stable at constant scope and forex Amortizatio
Slide 26: Strong financial headroom to support the GreenUp strategy
Strong financial headroom to support the GreenUp strategy Net financial debt as of March 31, 2025 of €18,855M(1) 2.75x leverage ratio well below 3x ● Net financial debt down €142M and strong net cash position at the end of March ● Strong Investment grade rating confirmed in 2025 by both S&P & Moody’
Slide 27: 2025 Guidance fully confirmed
2025 Guidance fully confirmed Revenue Continued solid organic growth(1)(2) EBITDA +5% to +6% organic growth(1) Efficiency gains >€350M Share buy-back plan to Cumulated synergies €530M compensate the impact of 2022-2025 of which €95M in 2025 the employee shareholding Current net income group share(3)
Slide 28: Appendices
APPENDICES Q@veoua
Slide 29: Appendix 1: 2025 Agenda
APPENDIX 1: 2025 Agenda Deep dive: Solid and Hazardous Waste @Veolia Upcoming Financial Events on June 25 2025 in France ●H1 2025 Results 31 July 2025 Specific Sessions ●Multifaceted performance & value creation webinar ●9M 2025 Key Figures 31 March 2025 6 November 2025 ●Desalination in the Middle-E
Slide 30: Appendix 2: 2024/2025 Events
APPENDIX 2: 2024/2025 Events ACCESS TO REPLAY ACCESS TO REPLAY https://www.youtube.com/watch https://www.youtube.com/watch ?v=aWqg9US28ls ?v=KoSk8eA8KEo AND PRESENTATION AND PRESENTATION ACCESS TO REPLAY ACCESS TO REPLAY https://www.youtube.com/watch https://www.youtube.com/watch ?v=HU6UdyzMBPI ?v=H
Slide 31: Appendix 3: Q1 2025 Detailed Revenue by geography
APPENDIX 3: Q1 2025 Detailed Revenue by geography CAGR In €M Q1 2023 Q1 2024 Q1 2025 2023-2025(1) Water Technologies 1,059 1,156 1,156 +7.4% Rest of the World 2,924 2,932 2,845 +5.4% Asia - Pacific 1,185 1,133 1,179 +2.4% o/w Asia 706 638 674 +0.0% o/w Pacific 479 494 505 +5.8% Latin America 485 473
Slide 32: Appendix 4: Q1 2025 Detailed Revenue by business
APPENDIX 4: Q1 2025 Detailed Revenue by business In €M Q1 2023 Q1 2024 Q1 2025 CAGR 2023- 2025(3) Municipal Water (Stronghold) 3,210 3,186 2,999(4) +3.4% Water Technologies and New Solutions (Booster) 1,059 1,156 1,156 +7.4% Total Water 4,270 4,343 4,155 +4.4% Solid Waste (Stronghold) 2,569 2,662 2,
Slide 33: Appendix 5: Net financial debt of €18,855M
APPENDIX 5: Net financial debt of €18,855M(1) In €M 18,855 17,819 (1)before Suez PPA 33
Slide 34: Appendix 6: FOREX
APPENDIX 6: FOREX 1€ = xxx foreign march 2024 march 2025 Variation currency closing rate average rate closing rate average rate closing rate % average rate % US Dollar 1.08 1.09 1.08 1.05 0% -3% Pound Sterling 0.86 0.86 0.84 0.84 -2% -2% Australian Dollar 1.66 1.65 1.73 1.68 4% 2% Chinese Renminbi 7
Slide 35: Important Disclaimer
This document presents the key figures for the first quarter of 2025. The operating and financial review, as approved by the Board of Directors, in its meeting held on 6 May 2025, is available on Veolia’s website at https://www.veolia.com/en/veolia- group/finance. IMPORTANT DISCLAIMER Veolia Environ
Slide 36: Contacts
CONTACTS Analyst & Investor Relations Media Relations Selma Bekhechi Laurent Obadia Head of Investor Relations Deputy CEO in charge of Stakeholders and Phone: +33 1 85 57 84 76 Communications, Advisor to the Chairman E-mail: selma.bekhechi@veolia.com Phone: +33 1 85 57 89 43 E-mail: laurent.obadia@v