Veolia Environnement Sa · EURONEXT:VIE
Veolia Environnement Sa — Shareholder Meeting (2013)
22 slides from Veolia Environnement Sa's shareholder meeting presentation, Jun 16, 2013
Slide 1: 2013 General Meeting
2013 General Meeting Pierre-François RIOLACCI Chief Finance Officer 1
Slide 2: Disclaimer
Disclaimer Veolia Environnement is a corporation listed on the NYSE and Euronext Paris. This document contains "forward-looking statements" within the meaning of the provisions of the U.S. Private Securities Litigation Reform Act of 1995. Such forward-looking statements are not guarantees of future
Slide 3: 2012 Annual Results
2012 Annual Results Pierre-François RIOLACCI Chief Finance Officer 3
Slide 4: 1st year of Transformation ahead of objectives
1st year of Transformation ahead of objectives Asset divestments and restructuring Reduction of net financial debt by €3.4bn to €11.3bn Faster than expected cost reductions Improvement in 2nd half adjusted operating cash flow Commercial success Veolia is on the right path 4
Slide 5: Good resilience of activities
Good resilience of activities In €M 29,439 28,576 Δ Δ constant Δ excl. FX and FX scope Water +1.3% -0.5% +1.0% Environmental services +0.8% -2.2% -1.9% Energy services +7.4% +7.0% +5.8% Other +21.1% +19.2% +15.3% Veolia +3.0% +1.2% +1.5% 5
Slide 6: Water
Water Revenue (in €M) Operations: revenue stable (-0.2% at constant scope and FX) 11,921 12,078 +1.3% – France: revenue increased 1.3% at constant scope • Continued contractual erosion: -1.6% • Lower volumes: -1% +7.9% • Positive impact of price and construction activities: +3.9% – Outside France:
Slide 7: Environmental Services
Environmental Services Revenue of €9,083M: variation +0,8% and Q4 2012: 1st quarter of positive organic revenue growth +3% -1.9% at constant scope & FX 2012 Price and volume of recycled materials -1.9% Waste volumes - Service price increases +0.8% Other (including construction revenue) -0.8% Curre
Slide 8: Energy Services
Energy Services Revenue (in €M) Revenue increased 7.4% (+5.8% at constant scope & FX) to €7,665M 7,665 +7.4% – Higher energy prices: impact >€200M (mainly in France) 7,138 – Favorable weather effect, mainly in France: impact >€100M – Increase in construction activities in France (CRE projects) +6.
Slide 9: Evolution of adjusted operating cash flow
Evolution of adjusted operating cash flow In €M 9 9
Slide 10: Reconciliation of adjusted operating cash flow to adjusted operating income
Reconciliation of adjusted operating cash flow to adjusted operating income 2011 In €M 2012 constant re-presented FX Adjusted operating cash flow 2,852.6 2,722.8 -4.6% -6.2% Depreciation & amortization -1,388.9 -1,479.8 Net capital gains +77.1 +84.3 Provisions, fair value adjustment & others +17
Slide 11: Reconciliation of operating income to net income
Reconciliation of operating income to net income 2011 re-presented 2012 In €M Adjusted Adjustment Total Adjusted Adjustment Total Operating income 1,558 -729 829 1,194 -99 1,095 Cost of net financial debt -758 - -758 -775 -47 -822 Income tax expense -337 -184 -521 -213 54 -159 Share of net income fr
Slide 12: Statement of cash flows
Statement of cash flows In €M 2011 2012 Operating cash flow before changes in working capital 3,353 3,085 Reimbursement of operating financial assets 441 371 Total cash generation 3,794 3,456 Gross investments -3,134 -3,282 Variation working capital -41 103 Taxes paid -368 -336 Interest expense -771
Slide 13: €9bn in divestments completed at high multiples
Review of asset divestments since 2009: €9bn in divestments completed at high multiples In a post financial crisis context Multiples achieved by division and by geography since 2009 (1) (2) By Geography By Division (1) On transactions greater than €50m since January 2009 : 23 operations utilized
Slide 14: Application of new IFRS 10-11-12 standards
Application of new IFRS 10-11-12 standards Pierre-François RIOLACCI Chief Finance Officer 14
Slide 15: Scope concerned: Which treatment for each entity?
Scope concerned Which treatment for each entity? Dalkia International: joint venture owned 75% by Dalkia and 25% by EDF, with an economic interest of 50% => change to equity method at 50% VTD: change from proportionate consolidation at 50% to equity method at 50% Proactiva Group: joint venture
Slide 16: 2012 adjusted operating cash flow bridge
2012 adjusted operating cash flow bridge Proforma 2012 adjusted operating cash flow of €1.9 billion In €M -30% 16 16 * Including Other Europe & Middle East Water ‐€47M, Europe and China Environmental Services ‐€42M, and Dalkia France ‐€20M
Slide 17: 2012 net financial debt bridge
2012 net financial debt bridge Proforma 2012 net financial debt of €10.8bn (compared to €11.3bn published in 2012) Adjusted net financial debt (less loans granted to joint ventures) of €7.8bn In €bn -28% 17 * Net financial debt before application of IFRS 10-11-12 standards, and excluding loans g
Slide 18: 2012 contributions of entities changing to equity method accounting
2012 contributions of entities changing to equity method accounting from Jan.1st, 2013 (1) 2012 In €M Revenue 6,200 Adjusted operating cash flow 804 Operating income 395 Net income (Group share) 8 Gross capex (2) 629 Main companies concerned: Dalkia International, Berlin Water (10 months), Tianjin,
Slide 19: Impact of elimination of proportionate consolidation on 2013 objectives
Impact of elimination of proportionate consolidation (PI) on 2013 objectives In €bn NFD entities PI In 2013, positive cash flow before financial divestments (Investor Day) 2013 net financial debt (post PI and hybrid) between €8bn and €9bn* 2013 Adjusted net financial debt (post PI and hybrid) betwee
Slide 20: From €16.5bn net financial debt at end of 2008 to €6bn-€7bn by end of 2013
From €16.5bn net financial debt at the end of 2008 to €6bn-€7bn adjusted net financial debt(1) by the end of 2013 In €bn 2014 Leverage objective of 3.0x (3) (1) Adjusted net financial debt excluding debt from JVs and post application of IFRS 10-11-12 (2) Net financial debt / (Operating cash flow bef
Slide 21: Conclusion
Conclusion Pierre-François RIOLACCI Chief Finance Officer 21
Slide 22: Mid-term objectives confirmed
Mid-term objectives confirmed • €6 billion in divestments (1) 2012-2013: • 2013 net financial debt, under new IFRS standards: Net Financial Debt between €8bn and €9bn (2) Transformation Adjusted Net Financial Debt between €6bn and €7bn (2) Period • Cost reductions: in 2013: €170M net impact (3