Veolia Environnement Sa · EURONEXT:VIE

Veolia Environnement Sa — H1 2025 Earnings Presentation

41 slides from Veolia Environnement Sa's earnings presentation, Jul 31, 2025

  1. Slide 1: July 31st, 2025 H1 2025 Results

    July 31st, 2025 Estelle Brachlianoff, CEO Emmanuelle Menning, CFO

  2. Slide 2: Agenda

    AGENDA 1 Highlights 2 H1 2025 Key Figures

  3. Slide 3: Highlights

    1 HIGHLIGHTS Estelle Brachlianoff, CEO

  4. Slide 4: Key Highlights

    Key Highlights Solid H1 results, in line with annual guidance Strength of Veolia winning formula: Resilience and Growth Dynamic & value creating capital allocation: c.€2.2bn of net M&A largely dedicated to GreenUp boosters, notably Water Tech and Hazardous Waste Strong confidence for 2025: Guidance

  5. Slide 5: Solid H1 2025, in line with guidance

    Solid H1 2025, in line with guidance ● Sustained growth: Revenue of €22,048M, up +3.8%(1) excl energy prices, in line with Q1 ● Strong operational performance, in line with annual guidance, fueled by yearly efficiency plan at €191M and synergies at €47M (€482M cumulated since Suez merger) ○ EBITDA:

  6. Slide 6: Veolia has a resilient business model and the agility to adapt

    Veolia has a resilient business model and the agility to adapt with strong track-record France 20% ●Diversified geographic footprint ●Local/municipal contracts Europe Rest of the World 44% H1 2025 and Water Tech ●TOP 3 in all key countries Revenues 36% excluding ●Minimal exposure to tariffs France ●

  7. Slide 7: Solid growth of Strongholds activities, up +3.4% in H1

    Solid growth of Strongholds activities, up +3.4%(1)(2) in H1 Water Operations Solid Waste District Heating Networks Revenue: €6,135M, up +3.6%(1) Revenue: €5,597M, up +1.5%(1) Revenue: €3,770M, up +5.1%(1)(2) ● Solid growth fueled by good volumes & ● Resilient activity in Europe, continued ● Strong

  8. Slide 8: Boosters growth, up +8.9% in H1 including targeted M&A

    Boosters growth, up +8.9%(1) in H1 including targeted M&A Water Technologies Hazardous Waste Bioenergy, Flexibility, Energy Efficiency Revenue: €2,409M, +2.8%(2) Revenue: €2,075M, up +5.4% inc. (2) targeted M&A (+4.9% organic) Revenue: €2,061M, up +21.8%(3) inc. ● Sharp rebound in Q2 with +5.4% desp

  9. Slide 9: Efficiency gains and synergies in line with targets

    Efficiency gains and synergies in line with targets Synergies(1) post-Suez Efficiency gains: €191M in H1 €47M in H1, €482M 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

  10. Slide 10: Dynamic capital allocation creating value: c.€2.2bn of net M&A

    Dynamic capital allocation creating value: c.€2.2bn of net M&A, largely dedicated to boosters strengthening our 2027 GreenUp ambitions Dynamic capital allocation: Q2 acquisitions Value creation Water technologies ● Acquisition of CDPQ 30% minority interests in WTS for €1.5bn (EV/EBITDA 11x) unlockin

  11. Slide 11: Reinforcing our ambitions in Water Tech thanks to full ownership

    Reinforcing our strong ambitions and value creation in Water Tech thanks to full ownership unlocking additional synergies SUPPORTIVE MARKETS VEOLIA, A LEADER STRONG AMBITION IN WATER TECH. & MEGATRENDS Wide range of technologies GreenUp 2027 (membranes, biological, Water scarcity chemical,...) ● Rev

  12. Slide 12: Strong ambitions in Hazardous Waste to strengthen leadership

    Strong ambitions in Hazardous Waste to further strengthen our leadership SUPPORTIVE SECTORS & MEGATRENDS VEOLIA, A LEADER STRONG AMBITION IN HAZARDOUS WASTE Worldwide footprint of GreenUp 24-27* Health owned treatment assets ● Revenues growth: protection (300+) Mid to high single digit CAGR ● EBITDA

  13. Slide 13: 2025 Guidance fully confirmed

    2025 Guidance fully confirmed Revenue Continued solid organic growth(1)(2) Share buy-back plan to compensate the impact of EBITDA +5% to +6% organic growth(1) the employee shareholding program (2025-2027) Efficiency gains >€350M Cumulated synergies €530M 2022-2025 of which €95M in 2025 Upcoming Even

  14. Slide 14: 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) + in 2027 Investments in organic Syne

  15. Slide 15: H1 2025 Key Figures

    H1 2025 2 KEY FIGURES Emmanuelle Menning, CFO

  16. Slide 16: Strong H1 2025 Results, in line with annual guidance

    Strong H1 2025 Results, in line with annual guidance Variation at In €M H1 2024 H1 2025 constant scope and FX +2.0% Revenue 22,141 22,048 +3.8% excl. energy prices FX impacts H1 % (vs. H1 2024) EBITDA 3,266 3,367 +5.5% Revenue -196 -0.9% (2) EBITDA margin 14.8% 15.3% +50bps EBITDA -24 -0.7% (1) Curr

  17. Slide 17: Rebound in Water Technologies and solid growth in Rest of the World

    Rebound in Water Technologies and solid growth in Rest of the World and Rest of Europe In €M Q1 2025 Variation (1) Q2 2025 Variation (1) H1 2025 Variation (1) Water Technologies 1,156 -0.1% 1,253 +5.4% 2,409 +2.8% Rest of the World 2,845 +5.0% 2,688 +2.4% 5,533 +3.7% Europe excl. France 5,351 +0.6%/

  18. Slide 18: Water: Strong H1 performance

    Water: Strong H1 performance Evolution vs H1 2024 Variation vs. 2024 H1 2025 Revenue H1 2024 8,798 ● Water Operations revenue up +3.6%(1) ○ Price impact of +2.0%, of which +4.9% in Iberia, +3.5% in Scope(2) -5.3% CEE, +4.2% in the US, -0.6% in France Forex -0.9% ○ Good volumes, notably in June, in F

  19. Slide 19: Waste: Continued strong growth in Hazardous waste

    Waste: Continued strong growth in Hazardous waste Evolution vs H1 2024 ● Solid Waste revenue of €5,597M, up +1.5%(1) Variation vs. 2024 H1 2025 ○ Resilience thanks to: Top 3 positioning in key Revenue H1 2024 7,728 geographies, balanced portfolio and 90% contract renewal rate Scope(2) -1.8% ○ Capaci

  20. Slide 20: Energy: Good performance in both Heating Networks and Energy Services

    Energy: Good performance in both Heating Networks and Energy Services Evolution vs H1 2024 Variation vs. 2024 H1 2025 Revenue H1 2024 5,615 ● District Heating Networks revenue of Scope(3) +5.0% €3,770M, up +5.1%(1) ○ Favorable weather impact Forex -0.2% ○ Strong operational performance: stabilized h

  21. Slide 21: H1 2025 Revenue of €22,048M, up +3.8% excl. energy prices

    H1 2025 Revenue of €22,048M, up +3.8%(1) excl. energy prices In €M Evolution vs H1 2024 Forex of -€196M: depreciation of ARS, AUD, USD, BRL, partially offset by PLN and GBP 22,141 22,048 Scope of -€334M, of which divestitures of Sade, Lydec and RGS, partially offset by acquisition in Hungary and few

  22. Slide 22: H1 2025 EBITDA of €3,367M, up +5.5%

    H1 2025 EBITDA of €3,367M, up +5.5%(1) Evolution vs H1 2024 In €M Forex of -€24M: depreciation of ARS, AUD, USD, CLP, BRL, partially offset by PLN, GBP 3,367 Scope of -€53M, of which Lydec and RGS, partially offset by acquisition in Hungary and 3,266 few other tuck-ins Organic growth: +5.5%(1) ● Ene

  23. Slide 23: Current EBIT of €1,834M, up +8.1%

    Current EBIT(1) of €1,834M, up +8.1%(2) Evolution vs H1 2024 In €M H1 2024 H1 2025 Variation Current EBIT(1) up +8.1%(2) to €1,834M, showing good operating leverage EBITDA 3,266 3,367 +5.5%(2) ● Stable amortization & OFA stable due to Renewal expenses -154 -157 negative scope impact (up by €33M at c

  24. Slide 24: Current net income Group share of €762M

    Current net income Group share(1) of €762M On track to deliver annual growth target of c.+9%(3) Evolution vs H1 2024 In €M H1 2024 H1 2025 Variation Current net income(1) Group share of €762M, up +4.3%(3) and +12.5%(3) Current EBIT (1) 1,730 1,834 +8.1%(2) excluding 2024 net financial capital Cost o

  25. Slide 25: Net income Group share of €657M

    Net income Group share of €657M Evolution vs H1 2024 In €M H1 2024 H1 2025 Variation Net income(1) Group share of €657M, up +0.9% and +9.8%(3) excluding 2024 net financial capital gains Current net income – Group share (1) 731 762 +4.3%(2) Stable restructuring charges associated Restructuring and in

  26. Slide 26: Well controlled capex and usual WCR seasonal variation

    Well controlled capex and usual WCR seasonal variation Well controlled capex Well controlled Net Capex of €1,747M vs. Net capex €1,722M in €M 1,722 1,747 ● Increased growth capex from €228M to €258M, o/w Decarbonization €91M and Hazardous Waste €73M Net FCF of -€451M due to WCR seasonal variation to

  27. Slide 27: Net financial debt of €20,764M under control

    Net financial debt of €20,764M(1) under control Year-end leverage below 3x at year-end Net financial debt(1) of €20.8bn at 30/06/2025 vs. €17.8bn at 31/12/2024, after net financial investments of €2.2bn (incl. purchase of CDPQ stake in WTS for ~€1.5bn) In €M 20,764 17,819 27 (1) before Suez PPA

  28. Slide 28: Successful debt refinancing in Q2

    Successful debt refinancing in Q2 In €M Successful bond debt refinancing: ● First hybrid Green Bond of €500M issued in May 2025 ● 7-year €850M at 3.324% + 12-year €650M at 3.795% issued in June 2025 Smooth debt repayment schedule: ● €336M convertible bonds repaid in January 2025 ● €500M repaid in Ap

  29. Slide 29: 2025 Guidance fully confirmed

    2025 Guidance fully confirmed Revenue Continued solid organic growth(1)(2) Share buy-back plan to compensate the impact of EBITDA +5% to +6% organic growth(1) the employee shareholding program (2025-2027) Efficiency gains >€350M Cumulated synergies €530M 2022-2025 of which €95M in 2025 Upcoming Even

  30. Slide 30: Appendices

    APPENDICES Qveoua

  31. Slide 31: Appendix 1: 2024/2025 Events

    APPENDIX 1: 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

  32. Slide 32: Appendix 2: H1 2025 Revenue and EBITDA by geography

    APPENDIX 2: H1 2025 Revenue and EBITDA by geography In €M H1 2024 H1 2025 Variation(1) Revenue EBITDA Revenue EBITDA Revenue EBITDA Water Technologies 2,398 279 2,409 299 +2.8% +9.0% Rest of the World 5,956 926 5,533 894 +3.7% +8.3% Europe excl. France 9,252 1,361 9,733 1,457 +1.6%/+5.6%(2) +4.1% Fr

  33. Slide 33: Appendix 3: H1 2025 Detailed Revenue by business

    APPENDIX 3: H1 2025 Detailed Revenue by business In €M H1 2024 H1 2025 Variation(3) Municipal Water (Stronghold) 6,400 6,135(4) +3.6% Water Technologies and New Solutions (Booster) 2,398 2,409 +2.8% Total Water 8,798 8,545 +3.4% Solid Waste (Stronghold) 5,579 5,597 +1.5% Hazardous Waste (Booster) 2,

  34. Slide 34: Appendix 4: Net financing rate

    APPENDIX 4: Net financing rate In €M June 2024 June 2025 Average gross debt (1) 25,852 27,070 Gross cost of borrowing 3.77% 3.33% Average cash balance 8,859 9,792 Interest rate 3.65% 2.62% Stable cost of net financial debt of €330M vs. €331M in Average bank overdrafts 287 127 H1 2024 Average net fin

  35. Slide 35: Appendix 5: Debt management

    APPENDIX 5: Debt management ● Smooth debt repayment schedule: Currency breakdown of gross debt ○ €336M convertible bonds repaid in January 2025 after hedges) at June 30, 2025 ○ €500M repaid in April 2025 ○ Upcoming maturity of €500M in September 2025 ● 2 issuances: ○ First hybrid Green Bond of €500M

  36. Slide 36: Appendix 6: Net liquidity

    APPENDIX 6: Net liquidity In €M June 2024 June 2025 Syndicated credit lines 4,500.0 4,500.0 Bilateral credit lines 719.8 720.9 Lines of credit - - Cash and cash equivalents 7,424.5 6,861.7 Total Veolia 12,644.3 12,082.6 Subsidiaries Bilateral credit lines 650.1 1,117.1 Cash and cash equivalents(1) 2

  37. Slide 37: Appendix 7: Statement of cash flows

    APPENDIX 7: Statement of cash flows EBITDA organic growth of +5.5% In €M June 2024 June 2025 EBITDA 3,266 3,367 Well controlled Net Capex of €1,747M vs. Net industrial investments -1,722 -1,747 €1,722M WCR variation -998 -1,171 ● Increased growth capex from €228M to €258M, Dividends received 77 74 o

  38. Slide 38: Appendix 8: Consolidated statement of financial position

    APPENDIX 8: Consolidated statement of financial position In €M June 2024 June 2025 Intangible Assets 19,803 19,163 Property, Plant & Equipment 17,160 17,548 Other non-current assets 6,137 5,918 Operating financial assets (current and non-current) 1,363 1,311 Cash and cash equivalents 7,527 7,330 Oth

  39. Slide 39: Appendix 9: Forex

    APPENDIX 9: FOREX Reminder on Forex exposure for Veolia ➔ No transaction exposure ➔ Translation exposure only: revenues and costs in the same currency 1€ = xxx foreign June 2024 June 2025 Variation currency closing rate average rate closing rate average rate closing rate % average rate % US Dollar 1

  40. Slide 40: Important Disclaimer

    This document presents the results for the first half of 2025. The consolidated financial statements and the operating and financial review, as approved by the Board of Directors, in its meeting held on 30 July 2025, are available on Veolia’s website at https://www.veolia.com/en/veolia-group/finance

  41. Slide 41: 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

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