Veolia Environnement Sa · EURONEXT:VIE
Veolia Environnement Sa — Shareholder Meeting (April 2014)
35 slides from Veolia Environnement Sa's shareholder meeting presentation, April 2014
Slide 1: 2013 Annual Results
2013 ANNUAL RESULTS Philippe CAPRON
Slide 2: 2013: A Successful Step on the Path to Transformation
2013: ASUCCESSFUL STEP ON THE PATH TO TRANSFORMATION o At the mid-point of the Group’s Transformation, all financial objectives have been achieved o Asset divestments o Deleveraging o Cost reductions o 2013 adjusted results were better than expected, despite a difficult environment o 2014 will be th
Slide 3: 2013: Better-than-Expected Adjusted Results
2013 : BETTER-THAN-EXPECTED ADJUSTED RESULTS Key figures In€M 2012 A Constant re-presented()) FX Revenue (1) -2.2%(2) Adjusted operating cash flow -4.7% Adjusted operating income &) +16.9% Adjusted net income attrib. to owners of the Co. Net income attrib. to owners of the Co. Net financial debt (1)
Slide 4: Revenue Was Resilient
REVENUE WAS RESILIENT in€M 23,239 22,315 and scope @ Water -2.2% o/w Operations +0.6% o/w Technologies & Networks -7.5% mm Eavigonmentsl 1.5% | Energy Services -1.1% 55 261 Ml Autres 4.2% re-presented (1) 2013 Veolia Group 1.8% (1) 2012 re-presented for IFRS 5,10 and 11
Slide 5: Cost Reductions Continuing at a Consistent Pace
COST REDUCTIONS CONTINUING AT A CONSISTENT PACE Gross cumulative savings compared to 2011 (€M) 750 2012 2013 2015 Objective
Slide 6: Adjusted Operating Cash Flow Growth at Constant FX
Adjusted operating cash flow growth at constant FX
Slide 7: Adjusted Results Increased Significantly vs. 2012
ADJUSTED RESULTS INCREASED SIGNIFICANTLY VS. 2012 Adjusted net income (in €M) v 1 Adjusted operating income (in €M) +13.5% at constant scope and FX 2012 re-presented 2013 2012 re-presented 2013
Slide 8: Net Reduction in Finance Costs
NET REDUCTION IN FINANCE COSTS 2012 In€M Adjusted Re-presented 2013 Adjusted REDUCTION 922 IN FINANCE COSTS DUE Adjusted operating income) Finance costs 2) REDUCTION Income tax expense -142 Non-controllinginterests -106 Adjusted net income attrib. to 223 owners of the Co. (1) Including the share of
Slide 9: Significant Non-Recurring Items Impacted Results
SIGNIFICANT NON-RECURRING ITEMS IMPACTED RESULTS o Impairment of the value of Environmental Services in Germany: -€150M o Restructuring of Water operations in France: -€97M o SNCM: -€66M
Slide 10: Increased Selectivity of Investments
INCREASED SELECTIVITY OF INVESTMENTS Normalized gross capex () (in €M) A €300M reduction «x 2012 re-presented 2013 (YIn 2012: represented to eliminate gross capex of divested entities (€332M) or of those in the process of divestment (Azaliya: €458M) and the Voda put in Water in Central Europe (€79M)
Slide 11: Debt Reduction Ahead of Our Objectives
DEBT REDUCTION AHEAD OF OUR OBJECTIVES o Net financial debt of €8.2bn at December 31, 2013, down €2.6bn 31-déc.-11 31-déc.-12 31-déc.-13
Slide 12: 2014: A Return to Growth
2014: ARETURN TO GROWTH o Revenue growth o Growth platforms o Newcontracts o Around 10% growth in adjusted operating cash flow o Significant growth in adjusted operating income o Reduction in financial expense o Significant growth in adjusted net income CONTINUED FOCUS ON CAPEX MANAGEMENT AND GROWIN
Slide 13: These Results Confirm Our Dividend Policy
THESE RESULTS CONFIRM OUR DIVIDEND POLICY... o 2014 dividend of €0.70 per share, with option of payment in shares o 2015 dividend: The Board of Directors has already decided to propose a minimum of €0.70 per share AS OF 2015, THE DIVIDEND WILL BE COVERED BY NET INCOME AND PAID BY FREE CASH FLOW
Slide 14: ...And Were Well Received by the Market
....AND WERE WELL RECEIVED BY THE MARKET 70% PERFORMANCE BOURSIERE DEPUIS JANVIER 2013 ly - 60%} - Veolia : +60% 50%| CAC40:+22% 40% | 30% | 20% | 10% O%# -10% 4 31/12 31/1 28/2 31/3 30/4 31/5 30/6 31/7 31/8 30/9 31/1030/1131/12 31/1 28/2 31/3
Slide 15: Slide 15
Slide 16: Slide 16
Slide 17: 200,000 Employees
200,000 EMPLOYE ES
Slide 18: Training Drives Overall Performance
TRAINING DRIVES OVERALL PERFORMANCE
Slide 19: Training Hours Delivered per Year
3,450,928 training hours/ year delivered
Slide 20: Of the Group Employees Attended a Training Session
76% OF THE GROUP EMPLOYEES HAVE ATTENDED AT LEAST ONE TRAINING SESSION
Slide 21: Training for All
TRAINING FOR ALL 8 7% of non-executives, 1 3 % of executives
Slide 22: Qualifying Courses, Recognized Degrees
QUALIFYING COURSES, RECOGNIZED DEGREES
Slide 23: Veolia Trains
VEOLIA trains VEOLIA
Slide 24: Partner Schools and Universities
Ecole Nationale | es Centrale Nant téde Rennes1 Unikingston University Wharton Sc i _ ~Ecgl Pe nns¢fkendon . _ : ; Ths Université de Victoria
Slide 25: Campuses in Countries
20 CAMPUSES IN 11 COUNTRIES staff members training rooms technical platforms Veolia contributors courses available
Slide 26: Slide 26
Slide 27: The Frequency of Accidents at Work
THE FREQUENCY OF ACCIDENTS AT WORK -40 % > >>>>> 2008 2013 3 6 % of training hours are dedicated to safety issues
Slide 28: The Seoul Declaration on Safety and Health at Work
_ The Seoul Declaration on safety and health at work recognizing the fundamental human right - asafeandhealthywork ~~ was Signed on 1*t of July 2013 oAn innovative and multicultural organization: The Center of excellence for safety and health at work. 15 worldwide specialists
Slide 29: Slide 29
Slide 30: Advisory Vote on the Elements of Compensation of Mr Antoine Frérot
ADVISORY VOTE ON THE ELEMENTS OF COMPENSATION OF MR ANTOINE FREROT, CHAIRMAN & CEO 13% resolution submitted to the General Meeting on April 24, 2014
Slide 31: Advisory Vote on Compensation for 2013 and 2014 Policy
ADVISORY VOTE ON THE ELEMENTS OF COMPENSATION DUE OR GRANTED FOR THE 2013 FINANCIAL YEAR AND THE 2014 COMPENSATION POLICY CONCERNING MR. ANTOINE FREROT, CHAIRMAN & CEO Compensation | a younts components 2013-2014Fixed ¢999 999 | This fixed compensation has not changed compensation ’ since the fiscal
Slide 32: Management Incentive Plan and Termination Compensation
Putin place in 2014, along- term Company share investment program and incentive compensation (called “Management Incentive Plan” A Management Incentive Planis planned to be put in place, for the Group’s 300 leading executives (including the CEO). This deferred compensation (4 years) is based onaco-i
Slide 33: Directors' Fees, Share Awards and Benefits in Kind
Directors’ fees ul No. Mr. Antoine Frérot waived his right for 2013 and 2014 allocation | +9 receive directors’ fees a a: Since being appointed as company CEO SETA SHON GSES No (November 27, 2009), Mr. Antoine Frérot options and/or a: : . attribution] has not received any stock options and/or perfor
Slide 34: Supplementary Pension Plan
Supplementary pension plan No payment Reminder: The defined benefits group pension plan covering the Executive Committee members (including the Rank 9 executives and Mr. Antoine Frérot as CEO) approved by the General Meeting of May 7, 2010 was terminated and replaced in mid-2013 by adefined benefits
Slide 35: Slide 35
Veolia Environnement — Shareholder Meeting (April 2014) on 6ix