Veolia Environnement Sa · EURONEXT:VIE
Veolia Environnement Sa — FY2024 Earnings Presentation
51 slides from Veolia Environnement Sa's earnings presentation, Feb 27, 2025
Slide 1: February 27th, 2025 Estelle Brachlianoff, CEO; Emmanuelle Menning, CFO
February 27th, 2025 Estelle Brachlianoff, CEO Emmanuelle Menning, CFO
Slide 2: Highlights, Financial Results, Strategy and Perspectives
1 Highlights 2 Financial Results 3 Strategy and Perspectives
Slide 3: Highlights
HIGHLIGHTS Estelle Brachlianoff, CEO
Slide 4: Key Highlights
Key Highlights Strong 2024 financial results in challenging market: all targets achieved or exceeded. Good first year of GreenUp plan confirming our strategy. 2025 guidance in line with GreenUp objectives, with synergy target raised further. Share buy-back plan to compensate the impact of the employ
Slide 5: 2024 Key Figures: All targets achieved or exceeded
2024 Key Figures: All targets achieved or exceeded ● Revenue: €44,692M, up +5.0%(1) excl energy prices o/w Boosters up +6.6%(1) excl energy prices ● EBITDA: €6,788M up +5.8%(1), +80bps margin with synergies at €435M and efficiencies at €398M, both above targets ● Current Net Income(2): €1,530M up +1
Slide 6: Attractive shareholder return
Attractive shareholder return Proposed dividend of 1.40€* per share, up +12% vs 2023 Share buy-back plan to compensate the impact of the employee Image à 1.4 shareholding program 1.12 1.25 insérer (2025-2027) 0.7 0.5 GreenUp dividend policy: Dividend to grow in line with current EPS *Subject to Shar
Slide 7: Strong 2024 results despite external headwinds
Strong 2024 results despite external headwinds Veolia = Resilience & Growth EBITDA up +5.8%(1) ● Europe macro ● Commercial momentum, ● Energy prices in particular in Boosters Current Net ● Weather ● Specific efficiency plans Income(2) ● Forex in France, Spain, China up +14.6%(3) ● Scope ● Faster del
Slide 8: Thanks to Veolia's winning formula
Thanks to Veolia’s winning formula Organic revenue growth Current Net Income +5.5%(1) doubled in 5 years +3.2%(1) €1,530M(2) €760M in 2024 in 2019 Diversified footprint Significant share of revenue France 20% generated from combining businesses Water Europe Rest of the World 42% 2024 and Water Techn
Slide 9: Continued solid revenue growth Boosted by Water & Waste
1. Sustained Growth Continued solid revenue growth Boosted by Water & Waste Strongholds activities: €32,186M, up +4.4%(1)(2) Water Operations Solid Waste District Heating & Cooling Networks 2024 Revenue Boosters activities: €12,506M, up +6.6%(1)(2) €44,692M Water Technologies Hazardous Waste +5.0%(1
Slide 10: Superior Boosters growth, up +6.6%
1. Sustained Growth Superior Boosters growth, up +6.6%(1)(2) Fueled by Water Technologies and Hazardous Waste Water Technologies Hazardous Waste Bioenergy, Flexibility, Revenue: €4,973M, up +7.0%(1) Energy Efficiency Revenue: €4,276M, up +7.1%(1) High level of bookings: €5.7bn Revenue: €3,257M, up +
Slide 11: Solid growth & resilience of Strongholds activities
1. Sustained Growth Solid growth & resilience of Strongholds activities, up +4.4%(1)(2) Water Operations Solid Waste District Heating and Cooling Networks Revenue: €13,060M, up +5.1%(1) Revenue: €11,387M, up +6.2%(1) Revenue: €7,739M, up +0.7%(1)(2) Contract renewal >90%, contrasted volumes Growth d
Slide 12: Synergies ahead of plan: €435M cumulated at end 2024
2. Operational performance Synergies ahead of plan: €435M cumulated at end 2024 since day 1 Target raised to €530M cumulated Cost synergies of Suez merger Operational efficiency SG&A 33% Synergies ahead of plan 16% €40M > €120M achieved in 2024 €19M > €435M accumulated since merger €120M with Suez i
Slide 13: Efficiency gains of €398M, above annual target of €350M
2. Operational performance Efficiency gains of €398M, above annual target of €350M Efficiency gains New initiatives: gen AI SG&A 8% €32M New partnership Procurement €398M Operational 28% in 2024 efficiency €111M 64% €255M Recurring operational efficiency embedded in business model > Digital gains >
Slide 14: Active portfolio management aligned with GreenUp priorities
3. Capital allocation Active portfolio management aligned with GreenUp priorities and value creation Priority to Boosters: Water Technologies, Hazardous waste, Bioenergy, Flexibility & Energy Efficiency & high value creation in Strongholds (e.g. high synergies) Growth capex & acquisitions Examples:
Slide 15: 2024 value creation
2024 value creation 1. Growth 2. Performance 3. Capital Allocation Value Creation Boosters up +6.6%(1)(2) Efficiency: €398M, Growth capex: €663M, above target up +23% Strongholds up ○ Retention rate 46% +4.4%(1)(2) ○ Specific plans in France, M&A: €397M of net Current Net Income(3) Spain, China dive
Slide 16: 2025 Guidance
2025 Guidance 4th year of results growth despite continued external headwinds Revenue Continued solid organic growth(1)(2) EBITDA +5% to +6% organic growth(1) Efficiency gains >€350M Share buy-back plan to Cumulated synergies Target raised to €530M (from €500M) compensate 2022-2025 of which €95M in
Slide 17: Financial Results
FINANCIAL RESULTS Emmanuelle Menning, CFO
Slide 18: Strong 2024 Results
Strong 2024 Results Var. vs. 2023 In €M 2023 2024 at constant scope and FX +1.5% Revenue 45,351 44,692 +5.0% excl. energy prices FX impacts 12M % (vs. 2023) EBITDA 6,543 6,788 +5.8% Revenue -234 -0.5% EBITDA margin 14.4% 15.2% +80bps(2) EBITDA -70 -1.1% Current EBIT(1) 3,346 3,547 +7.9% Current EBIT
Slide 19: Strong value creation: 8.8% ROCE after tax
Strong value creation: 8.8% ROCE after tax Above pre Covid and pre Suez level ROCE after tax & WACC Euro ROCE after tax * Covid Suez WACC Euro 9-10% Note: ROCE before 2019 restated to account for IFRS 16 impact 19
Slide 20: Growth in all geographies
Growth in all geographies In €M 2023 2024 Variation(1) Revenue EBITDA Revenue EBITDA Revenue EBITDA Water Technologies 4,707 534 4,973 612 +7.0% +15.7% Rest of the World 11,907 1,925 11,945 2,025 +5.3% +11.0% Rest of Europe 19,000 2,599 18,619 2,642 -3.6%/+4.5%(2) +0.6% France and Special Waste 9,72
Slide 21: Very strong Water performance
Very strong Water performance: EBITDA margin up +150bps to 18.5% ● Revenue of €18,033M, up +5.6%(1) ● Water Operations revenue up +5.1%(1) ● EBITDA of €3,340M, up +10.0%(1) ○Pricing & indexation: ● EBITDA margin of 18.5%, up +150bps - Good indexations in all geographies - Good tariff negotiation in
Slide 22: Very strong Waste performance despite macro
Very strong Waste performance despite macro ● Revenue of €15,662M, up +6.4%(1) ● Solid Waste revenue up +6.2%(1) ● EBITDA of €2,110M, up +11.1%(1) ○ Continued pricing strategy and favorable indexation ● EBITDA margin of 13.5%, up +40bps ○ Good commercial momentum in C&I, improved volumes despite Eur
Slide 23: Resilient Energy performance
Resilient Energy performance ● Revenue of €10,997M, -10.7%(1), but up +1.9%(1) excl. energy prices ● Steady growth excluding energy price impact ● EBITDA of €1,338M, down -9.5%(1) ● EBITDA margin of 12.2%, ~flat ● District Heating and Cooling Networks revenue up +0.7%(1)(2) (+1.5% at constant Variat
Slide 24: 2024 Revenue of €44,692M
2024 Revenue of €44,692M, up +5.0%(1) excl. energy prices Evolution vs 2023 In €M Intrinsic growth +5.0% 45,351 Forex mostly Latam -1,094 44,692 1,214 Scope of which divestitures of Sade -1,596 (-€912M), RGS (-€135M) and Lydec 1,045 (-€181M), partially offset by acquisition in Germany (+€178M) Exter
Slide 25: 2024 EBITDA of €6,788M
2024 EBITDA of €6,788M, up +5.8%(1) Evolution vs 2023 In €M Intrinsic growth +7.8% Forex mostly Latam 6,788 Scope of which divestitures of Sade, Lydec and RGS for -€113M, partially offset by 6,543 acquisition in Germany and few other tuck-ins External factors ● Weather: Q1 very mild but +€18M in Q4
Slide 26: Efficiency: Focus on specific action plans
Efficiency: Focus on specific action plans in addition to recurring costs savings France Spain China Specific action plan Business refocusing 2 years plan 2024/25 in Water launched end 2023 and restructuring ● Boost the top line: contract ● Tariff campaign: double digit water ● Change in management
Slide 27: Current net income - Group share of €1,530M
Current net income - Group share(1)of €1,530M, up +14.6%(4) Perfectly in line with annual target above €1.5bn Evolution vs 2023 In €M 2023 2024 Variation Current EBIT(1) up +7.9%(2), showing good operating leverage EBITDA 6,543 6,788 +5.8%(2) ● Higher amortization due to the ramp-up of Renewal expen
Slide 28: Net income - Group share of €1,098M
Net income - Group share of €1,098M, up +17.1% Evolution vs 2023 In €M 2023 2024 Variation Decrease of Suez acquisition and integration costs Current net income – Group share (1) 1,335 1,530 +14.6%(2) Higher restructuring charges associated to specific action plans Suez acquisition and integration c
Slide 29: Free cash flow generation of €1,156M
Free cash flow generation of €1,156M Evolution vs 2023 In €M 2023 2024 Continued WCR management with an additional cash resource of +€75M. Continued decrease in DSO from 83 days to 78 days. EBITDA 6,543 6,788 Controlled Net Capex of €3,836M vs. €3,730M Net Capex -3,730 -3,836 ● Increased growth cape
Slide 30: Net financial debt of €17,819M
Net financial debt of €17,819M(1) 2.63x leverage ratio well below 3x In €M -6,788 1,299 1,431 3,836 Net financial debt(1) of €17.8bn at 31/12/2024 vs. €17.9bn at 31/12/2023, incl. -€157M FX (1)before Suez PPA 30
Slide 31: Smooth debt repayment schedule and strong investment grade rating
Smooth debt repayment schedule and strong investment grade rating In €M 97% of NFD at fixed rate Smooth debt repayment schedule: ● €750M repaid in January 2024 ● €461M repaid in July 2024 ● €365M repurchase of convertible bonds in Aug. 2024 ● Rest of our 2025 convertible bond for €336M in January 20
Slide 32: Strategy & Perspectives
STRATEGY & PERSPECTIVES Estelle Brachlianoff, CEO
Slide 33: A Global Leader in Environmental Services
A Global Leader in Environmental Services VEOLIA WORLDWIDE #1 Worldwide Water Services #1 Worldwide Water Technologies 44 countries on 5 continents In top 3 per country / activity #1 Worldwide Hazardous Waste #1 in Europe Circular Economy 14 R&D Centers #2 in Europe District Heating 4,000 patents #2
Slide 34: GreenUp: Value creation offering resilience + growth
GreenUp: Value creation offering resilience + growth 1. Growth 2. Performance 3. Capital Allocation GreenUp targets Solid and resilient growth(1) Growth: €1bn/year net Boosters Efficiency = ≥ €8bn EBITDA Mid to high single digit €350M/year Investments in organic in 2027 growth(1) + growth with prior
Slide 35: 2025 Guidance
2025 Guidance 4th year of results growth despite continued external headwinds Revenue Continued solid organic growth(1)(2) EBITDA +5% to +6% organic growth(1) Efficiency gains >€350M Share buy-back plan to Cumulated synergies Target raised to €530M (from €500M) compensate 2022-2025 of which €95M in
Slide 36: 2025 Agenda
2025 Agenda Financial Events Deepdive: Solid and Hazardous Waste @Veolia on 25 June 2025 in France ●Shareholders Meeting 24 April 2025 ●Q1 2025 Key Figures Specific Sessions 7 May 2025 ●H1 2025 Results ●Multifaceted performance & value creation webinar 31 July 2025 31 March 2025 ●9M 2025 Key Figures
Slide 37: Appendices
APPENDICES @ veoua
Slide 38: Appendix 1: 2024 Events
APPENDIX 1: 2024 Events ACCESS TO REPLAY ACCESS TO REPLAY https://www.youtube.com/w https://www.youtube.com/w atch?v=aWqg9US28ls atch?v=KoSk8eA8KEo AND AND PRESENTATION PRESENTATION ACCESS TO REPLAY ACCESS TO REPLAY https://www.youtube.com/w https://www.youtube.com/w atch?v=HU6UdyzMBPI atch?v=HxQMo5
Slide 39: Appendix 2: A strong Q4
APPENDIX 2: A strong Q4 In €M, growth at constant scope Q2 Q1 Q3 Q4 2024 FY 2024 and FX vs. 2023 Water +6.5% +6.2% +6.9% 4,709 +3.7% 18,033 +5.6% Waste +5.5% +7.3% +6.5% 4,006 +5.5% 15,662 +6.4% Energy +0.1%(1) -2.2%(1) +5.8%(1) 3,434 +5.3%(1) 10,997 +1.9%(1) TOTAL Revenue -1.7% +2.7% +4.4% 12,149 +
Slide 40: Appendix 3: 2024 Detailed Revenue by geography
APPENDIX 3: 2024 Detailed Revenue by geography In €M 2023 2024 Variation(1) Water Technologies 4,707 4,973 +7.0% VWT 1,599 1,659 +5.5% WTS 3,108 3,314 +7.8% Rest of the World 11,907 11,945 +5.3% Asia - Pacific 4,515 4,578 +4.5% o/w Asia 2,540 2,467 +2.1% o/w Pacific 1,975 2,112 +7.7% Latin America 1
Slide 41: Appendix 4: 2022-2024 Revenue and EBITDA by business
APPENDIX 4: 2022-2024 Revenue and EBITDA by business In €M 2022(1) 2023 2024 Revenue EBITDA Revenue EBITDA Revenue(2) EBITDA Municipal Water (Stronghold) 12,733 2,452 13,702 2,591 13,060 2,727 Water Technologies and New Solutions 4,456 487 4,707 532 4,973 612 (Booster) Total Water 17,189 2,939 18,40
Slide 42: Appendix 5: Net financing rate
APPENDIX 5: Net financing rate In €M December 2023 December 2024 Average gross debt (1) 26,449 26,196 Gross cost of borrowing 3.55% 3.70% Average cash balance 9,717 9,096 Cost of net financial debt of Interest rate 3.33% 3.62% €652M vs. €626M in 2023 Average cash balance excluding commercial paper 5
Slide 43: Appendix 6: Debt management
APPENDIX 6: Debt management ● Smooth debt repayment schedule: NFD after hedges at December 31, 2024 ○ Repayment in January 2024 of €750M bearing a coupon of 0.892% ○ €461M repaid in July 2024 (coupon 5.5%) Currency breakdown of gross debt ○ €365M convertible bonds repurchased in August 2024 (after h
Slide 44: Appendix 7: Net liquidity
APPENDIX 7: Net liquidity In €M December 2023 December 2024 Syndicated credit lines 4,500.0 4,500.0 Bilateral credit lines 801.8 723.6 Lines of credit - - Cash and cash equivalents 8,344.4 9,349.0 Total Veolia 13,646.2 14,572.6 Subsidiaries Bilateral credit lines 688.7 949.1 Cash and cash equivalent
Slide 45: Appendix 8: Statement of cash flows
APPENDIX 8: In €M Dec 2023 Dec 2024 Statement of cash flows EBITDA(1) 6,543 6,788 Net industrial investments -3,730 -3,836 WCR variation 195 75 1. Including principal payments on operating financial assets Dividends received 161 123 Renewal expenses -303 -295 1. In 2024: dividends paid to shareholde
Slide 46: Appendix 9: Well controlled capex
APPENDIX 9: Well controlled capex In €M 2023 2024 Growth Contractual Maintenance Industrial Growth Contractual Maintenance Industrial capex capex capex divestments capex capex capex divestments Water 46 42 130 (51) 86 20 130 (19) Technologies Rest of the World 200 534 610 (80) 182 399 684 (48) Rest
Slide 47: Appendix 10: Consolidated statement of financial position
APPENDIX 10: Consolidated statement of financial position In €M December 2023 December 2024 Intangible Assets 20,056 19,869 Property, Plant & Equipment 17,134 17,933 Other non-current assets 6,292 6,130 Operating financial assets (current and non-current) 1,393 1,353 Cash and cash equivalents 8,696
Slide 48: Appendix 11: FOREX
APPENDIX 11: FOREX 1€ = xxx foreign December 2023 December 2024 Variation currency closing rate average rate closing rate average rate closing rate % average rate % US Dollar 1.11 1.08 1.04 1.08 -6% 0% Pound Sterling 0.87 0.87 0.83 0.85 -5% -3% Australian Dollar 1.63 1.63 1.68 1.64 3% 1% Chinese Ren
Slide 49: Appendix 12: Leading ESG rankings
APPENDIX 12: Leading ESG rankings GENERAL ESG S&P Global(1): Selection in the Sustainability Yearbook 2025 Moody’s Analytics(2): Leader ISS-ESG(3): Prime status (Top 5%) and the Dow Jones Best- in Waste & Water utilities and 1st decile in-class World and Europe Europe industry with a score (B rating
Slide 50: Important Disclaimer
This press release presents the results for the fourth quarter of 2024 and the full year of 2024, from the consolidated financial statements of Veolia Environnement SA as of December 31, 2024. The consolidated financial statements and the operating and financial review, as approved by the Board of D
Slide 51: 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