Veolia Environnement Sa · EURONEXT:VIE
Veolia Environnement Sa — 9M 2024 Earnings Presentation
34 slides from Veolia Environnement Sa's earnings presentation, Nov 7, 2024
Slide 1: 9M, 2024 Results
9M, 2024 RESULTS November 7th, 2024 Estelle Brachlianoff, CEO Emmanuelle Menning, CFO
Slide 2: Agenda
AGENDA 1. 9M, 2024 highlights 2. Detailed 9M, 2024 key figures 3. Appendices
Slide 3: Estelle Brachlianoff, CEO
Estelle Brachlianoff CEO
Slide 4: Strong 9M results reflect the solidity of Veolia value creation model
Strong 9M results reflect the solidity of Veolia value creation model and the good start of GreenUp Strategic Program SUSTAINED GROWTH driven by Boosters GREENUP 24-27 1 > Revenues: €32,543M, up +5.1%(1) > Of which Boosters up +6.9%(1) Performance in line with our strategic program SOLID OPERATIONAL
Slide 5: Continued solid revenue growth boosted by Water technologies & Hazardous Waste
Continued solid revenue growth Boosted by Water technologies & Hazardous Waste Strongholds activities €22,701M, up +4.4% (1)(2) (Water operations , District heating & cooling networks , Solid waste ) 9M Revenue Boosters activities €9,842M, up +6.9% (1)(2) €32,543M (Water Technologies , Bioenergy, Fl
Slide 6: Solid growth of Strongholds activities
Solid growth of Strongholds activities Up +4.4% (1)(2) in the 9M, after +3.4% (1)(2) in H1 High contract renewal, contrasted volumes due to Water Operations weather, satisfactory pricing indexations ● Sedif renewal in France (€4bn backlog over 12 years) Revenues €9,726M +4.3%(1) ● Rate case approval
Slide 7: Superior Boosters growth fueled by Water Technologies
(1)(2) Superior Boosters growth, up +6.9% fueled by Water Technologies High level of bookings of €3.3bn driven by desalination projects in the Middle East and large service contracts in the US Water Technologies ● Hassyan : €296M desalination facility in Dubai Revenues €3,598M, +13.5%(1) ● Signing o
Slide 8: Water Tech: High level of bookings of €3.3bn
Water Tech Exemple: High level of bookings of €3.3bn at Sept. 30 Driven by desalination projects in the Middle East and large service contracts in the US Veolia’s 2024 main bookings to date STRONG AMBITION IN WATER TECH Deep dive on 17 October 2024 in Hungary GreenUp 23-27 ● Revenues 2023 €4.7bn: gr
Slide 9: PFAS ambitious target: ~€1bn revenues by 2030
PFAS ambitious Target: ~€1bn Revenues by 2030 From PFAS & New Pollutants Treatment ~€1bn Water Operations Haz. xxx Waste ~€200m Water €50m Tech. 2019 2023 2024 2030 Regulation is a key driver: > April 10th new US EPA Maximum Contaminant Levels (MCLs) to be implemented from 2027 > EU Member States to
Slide 10: Efficiency plan delivering well
Efficiency plan delivering well Efficiency gains: €296M delivered in 9M 2024, on-track to reach the €350M annual objective Increased retention rate at 49% in Q3 10% > Operational efficiency: €201m ● Digital and AI gains : customer service efficiency in water Spain (replicable) ● Process optimization
Slide 11: Cumulated synergies at €411M, above the year's target
Cumulated synergies at €411M, above the year’s target of €400m Annual target raised to more than €430M Cost Synergies : €25M in Q3 and €96M in 9M 2024 €411M accumulated since merger with Suez, already above the year-end target of €400M 36% 20% > Ramp-up of procurement savings (44%) and Water Technol
Slide 12: 2024-2027 roadmap: sustainable growth with high impact
2 024-2027 roadmap : sustainable growth with high impact Decarbonization Solid and resilient 18 Mtons CO 2e erased in 2027 (scope growth (a) 4) inc. boosters : & emission trajectory reduction compatible ● water technologies with 1,5°C (scope 1&2) ● bioenergy, flexibility & energy efficiency ● hazard
Slide 13: 9M 2024 Financial & Operational Performance
9M 2024 Financial & Operational Performance Emmanuelle Menning CFO
Slide 14: Strong 9M 2024 results
Strong 9M 2024 results Solid businesses, agility and operational excellence drive profit growth Var. vs. 9M 2023 at constant In €M 9M 2023 9M 2024 scope and FX +1.7% Revenue 33,161 32,543 +5.1% excl. energy prices EBITDA 4,793 4,936 +5.6% EBITDA margin 14.5% 15.2% +72bps(2) Current EBIT(1) 2,518 2,6
Slide 15: Q3 2024 Revenue: strong revenue growth
Q3 2024 Revenue: strong revenue growth Revenue in €M and growth at constant scope Q1 Q2 H1 Q3 9M and FX vs. 2023 Water +6.5% +6.2% +6.4% 4,526 +6.9% 13,324 +6.5% Waste +5.5% +7.3% +6.4% 3,928 +6.5% 11,556 +6.4% Energy +0.1%(1) -2.2%(1) -0.8%(1) 1,948 +5.8%(1) 7,563 +0.8%(1) TOTAL -1.7% +2.7% +0.4% 1
Slide 16: 9M 2024 Revenue: €32,543M up +5.1% excl. energy prices
(1) 9M 2024 Revenue: €32,543M up +5.1% excl. energy prices Evolution vs 9M 2023 In €M Intrinsic growth +5.4% ▪ Forex mostly Latam ▪ Scope of which Sade (-€636M), RGS (-€54M), Lydec, partially offset by acquisition in Germany (+€141M) ▪ External factors - Weather: no negative impact in Q3 - Recyclate
Slide 17: 9M 2024 Revenue: solid growth in all regions
9M 2024 Revenue: solid growth in all regions Revenue Evolution by Region vs 9M, 2023 In €M Growth at constant scope and forex €33,161M Water Technologies +13.5% (1) €32,543M Revenue growth driven by all activities and regions +13.5% (1) Rest of the World +5.6% Solid growth in most geographies notabl
Slide 18: 9M 2024 Water revenue of €13,324M up +6.5%
(1) 9M 2024 Water revenue of €13,324M up +6.5% Evolution vs 9M 2023 Variation vs. 9M 2023 9M 2024 Revenue at 30 Sept. 2023 13,538 ● Contrasted volumes: rainy weather in France and water restrictions in Spain, but strong in the US and in Commerce/Volumes/Works +2.4% Eastern Europe. Price effect +4.1%
Slide 19: 9M 2024 Energy revenue of €7,563M up +0.8%
(1) 9M 2024 Energy revenue of €7,563M up +0.8% Variation vs. 9M 2023 9M 2024 Revenue at 30 Sept. 2023 8,631 Commerce/Volumes/Works +1.7% Evolution vs 9M 2023 Weather -1.5% ● Good commercial momentum in Energy prices -12.9% Energy efficiency services Other +0.6% ● Revenue decrease due to lower energy
Slide 20: 9M 2024 Waste revenue of €11,656M up +6.4%
(1) 9M 2024 Waste revenue of €11,656M up +6.4% Variation vs. 9M 2023 9M 2024 Evolution vs 9M 2023 Revenue at 30 Sept. 2023 10,992 ● Good performance of Solid Waste : up +6.5% Commerce/Volumes +1.2% ○ Good commercial momentum in C&I Price increases +5.1% notably in Europe (France, UK, Germany) Recycl
Slide 21: 9M 2024 EBITDA of €4,936M, up +5.6%
(1) 9M 2024 EBITDA of €4,936M, up +5.6% Evolution vs 9M 2023 Forex Intrinsic growth +7.5% ● Mostly Latam Scope ● Divestitures of Sade (-€23M), RGS (-€16M) partially offset by Hofman in Germany (+€21M) and few other tuck-ins External factors ● Weather: mildest winter in CEE in the last 30 years -2.5%
Slide 22: Current EBIT of €2,601M, up +6.4%
Current EBIT (1) of €2,601M, up +6.4% (2) EBITDA to Current EBIT Evolution vs 9M 2023 In €M 9M 2023 9M 2024 Variation ● Current EBIT up +6.4% at constant scope and forex, showing good EBITDA 4,793 4,936 +5.6% (2) operating leverage (EBITDA Renewal expenses -223 -225 +5.6%) (1) Amortization including
Slide 23: Well controlled capex and net financial debt
Well controlled capex and net financial debt Well-controlled capex Net capex of €2,609M vs. €2,532M in 9M 2023 Net capex 2,532 2,609 in €M Growth capex include €98M of decarbonization capex and €131M of hazardous waste projects Net FCF generation of -€147 M vs. +€357M in 9M 2023 Higher WCR seasonal
Slide 24: Net financial debt at 30/09/2024 of €18,892M
(1) Net financial debt at 30/09/2024 of €18,892M In €M (1) excluding PPA 24
Slide 25: Fully confirmed 2024 guidance
Fully confirmed 2024 guidance Revenue Continued organic solid growth(1)(2) EBITDA +5% to +6% organic growth(1) Efficiency gains >€350M Cumulated synergies >€430M 2022-2024 vs >€400M initially Current Net income(3) >€1.5bn Leverage ratio(3) < 3x Dividend to grow in line Dividend policy with current E
Slide 26: Appendices
APPENDICES
Slide 27: Appendix 1: Forex
APPENDIX 1: FOREX September 2023 September 2024 Variation 1€ = xxx foreign currency closing rate average rate closing rate average rate closing rate % average rate % US Dollar 1.06 1.08 1.12 1.09 6% 1% Pound Sterling 0.86 0.87 0.84 0.85 -2% -2% Australian Dollar 1.63 1.62 1.62 1.64 -1% 1% Chinese Re
Slide 28: Appendix 2: 9M 2024 Revenue by Strongholds & Boosters
APPENDIX 2: 9M 2024 Revenue by Strongholds & Boosters var at cst F/X & var at cst Revenues in €m 9M 2023 9M 2024 scope, excl. F/X & scope energy prices Water operations 10,202 9,726 +4.3% Water operations, non regulated 8,366 8,547 +4.6% Municipal regulated (US & Chile) 1,038 1,014 +4.5% Constructio
Slide 29: Appendix 3: 9M 2024 Revenue by geography
APPENDIX 3: 9M 2024 Revenue by geography Revenues in €M 9M 2023 9M 2024 Δ at constant scope and FX France and Hazardous Waste Europe 7,244 6,783 +3.0% Water France 2,231 2,310 +3.8% Waste France 2,183 2,222 +2.1% Hazardous Waste Europe 1,579 1,680 +8.4% Construction (SADE) & Other 1,251 570 -3.5% Re
Slide 30: Appendix 4: Q3 2024 Revenue €10,402M
(1) APPENDIX 4: Q3 2024 Revenue: €10,402M up +6.7% excl. energy prices Intrinsic growth +6.1% -1.4% -3.1% +0.1% +0.5% -2.3% +2.3% +3.7% (1) at constant scope and forex 30
Slide 31: Appendix 5: Q3 2024 EBITDA €1,671M
(1) APPENDIX 5: Q3 2024 EBITDA: €1,671M up +5.4% Intrinsic growth +5.8% Energy prices -24M€, Recyclates +11M€ -1.6% -1.4% +0.2% -0.7% +0.8% +3.5% +1.5% +5.4% at constant scope and forex (1) at constant scope and forex 31
Slide 32: Appendix 6: Debt repayment schedule
APPENDIX 6: Debt repayment schedule ● Smooth debt repayment schedule: ○ €750M repaid in January 2024 ○ €461M repaid in July 2024 ● 90% of NFD at fixed rate ● Repurchase of 52% of our 2025 convertible bond for €364M in August 2024 ● Debt refinancing : €500M issued in Sept. 24 at 3.571% (10 years) ● S
Slide 33: Appendix 7: Leading ESG rankings
APPENDIX 7: Leading ESG rankings GENERAL ESG S&P Global (1) : Top 1% in the Moody’s Analytics (2) : ISS-ESG (3) : Prime status Multi and Water Utilities Leader in Waste & Water and 1st decile industry, Selection in the DJSI World utilities Europe industry (B rating) in the Multi Utilities and Europe
Slide 34: Contacts
CONTACTS Analyst & Investor Relations Media Relations Selma Bekhechi Laurent Obadia Head of Investor Relations Deputy CEO in charge of Stakeholders and Telephone: +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.obad