News Column

VEOLIA GROUP - KEY FIGURES FOR THE QUARTER ENDED MARCH 31, 2014

May 9, 2014



ENP Newswire - 09 May 2014

Release date- 08052014 - Antoine Frerot, Veolia's Chairman and Chief Executive Officer indicated: The year 2014 has started off well for Veolia, with satisfactory results.

We achieved steady growth in our businesses, with the exception of Dalkia, which was heavily penalized by an exceptionally mild winter that weighed on heating activity. Excluding Dalkia operations, adjusted operating cash flow increased 9.6%1. These solid results put us on the targeted path for the full year.'

Revenue posted a slight decline of 1.2% (-1.7% at constant scope and exchange rates) to EUR5,688 million compared to re-presented EUR5,757 million for the quarter ended March 31, 2013, and was negatively impacted by weather in Dalkia France operations.

Excluding Dalkia France, revenue growth was solid at +3.8% (+3.1% growth at constant scope and exchange rates).

In France both water and waste revenue were stable.

Europe excluding France (+4.3% at constant scope and exchange rates) benefited mainly from good momentum in UK waste operations and Central and Eastern Europe water operations.

The Rest of the World segment posted double digit organic revenue growth (+11.2%) due to the strong performance in energy services in the United States and higher landfill volumes in Australia waste operations. The segment also benefited from the integration of the water and waste activities of Proactiva in Latin America.

Global Businesses revenue was stable (-0.7% at constant scope and exchange rates), with growth in hazardous waste activities and in Sade operations offset by the expected reduction in engineering and construction (VWS) activity following the end of the construction of the Hong Kong incinerator and pending the start of new contracts.

Dalkia France revenue declined sharply (-20.5% at constant scope), driven by a significant unfavorable weather impact due to an exceptionally mild winter, as well as the continued programmed end of gas cogeneration contracts.

By activity, Water revenue increased 0.9% at constant scope and exchange rates, with growth in the Operations business of 2.6% offset by a reduction in Technologies and Networks revenue by 2.6%. Waste operations resumed growth (+3.3% at constant scope and exchange rates), benefiting from +2.8% growth in volumes, while service prices were stable (+0.3%). Energy services revenue was negatively impacted by weather and declined 14.2% at constant scope and exchange rates.

Adjusted operating cash flow increased 2.3% at constant exchange rates to EUR547 million. Adjusted operating cash flow in water and waste activities grew 9.6% at constant exchange rates.

Adjusted operating cash flow growth benefited from continued cost savings (net impact of EUR54 million during the first quarter) and very good performance in waste operations: mainly in the United Kingdom, China, and in hazardous waste activities, as well as due to improved results in Germany and the United States. Adjusted operating cash flow also benefited from the full consolidation of Proactiva operations in Latin America.

By segment: France adjusted operating cash flow declined slightly due to the impact of lower scrap metal prices, while water operations posted a stable result. In the Europe excluding France segment, adjusted operating cash flow was stable as the negative impact of weather in energy operations in Germany offset the good performance in waste operations in the United Kingdom and water operations in Central Europe. Very good performance in the Rest of the World segment was driven by the United States and Latin America. Global businesses recorded growth due to good performance in hazardous waste activities.

Dalkia France adjusted operating cash flow fell 23% due to the unfavorable impact of weather and the end of gas cogeneration contracts.

At constant exchange rates and excluding the net change in pension reversals in 2013 (-EUR32 million), adjusted operating income was stable compared to the prior year period.

On the same basis, and excluding Dalkia France operations, adjusted operating income increased 7%.

Net financial debt at March 31, 2014 was EUR8,556 million compared to EUR8,177 million at December 31, 2013.

Improvement in net free cash flow to -EUR432 million in 1Q 2014 versus -EUR564 million3 in 1Q 2013 given continued capex discipline (EUR298 million in gross capex in 1Q 2014 vs EUR335 million in 1Q 2013) and management of working capital requirements.

Net financial debt increased slightly compared to the end of last year due to working capital seasonality.

At constant exchange rates

Net free cash flow is defined as cash flow before net financial divestments and after payment of financial expense and taxes, which represents the sum of adjusted operating cash flow and operating cash flow from financing activities, dividends received from joint ventures, principal payments on operating financial assets, changes in working capital for operations and industrial investments and industrial divestitures, excluding net industrial investments of discontinued operations.

Excluding the hybrid issuance of EUR1,470 million in January 2013

2014 Objectives confirmed.

Revenue growth

Around 10% growth in adjusted operating income at constant exchange rates

Significant growth in adjusted operating income

Reduction in financial expense

Significant growth in adjusted net income

Veolia is the global leader in optimized resource management. With over 200,000 employees worldwide, the company designs and provides water, waste and energy management solutions that contribute to the sustainable development of communities and industries. Through its three complementary business activities, Veolia helps to develop access to resources, preserve available resources, and to replenish them.

In 2013, Veolia supplied 94 million people with drinking water and 62 million people with wastewater service, produced 86 million megawatt hours of energy and converted 38 million metric tons of waste into new materials and energy. Veolia (Paris Euronext: VIE and NYSE: VE) recorded revenue of EUR22.3 billion in 2013.

Important disclaimer

Veolia Environnement is a corporation listed on the NYSE and Euronext Paris. This press release 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 performance.

Actual results may differ materially from the forward-looking statements as a result of a number of risks and uncertainties, many of which are outside our control, including but not limited to: the risk of suffering reduced profits or losses as a result of intense competition, the risk that changes in energy prices and taxes may reduce Veolia Environnement's profits, the risk that governmental authorities could terminate or modify some of Veolia Environnement's contracts, the risk that acquisitions may not provide the benefits that Veolia Environnement hopes to achieve, the risks related to customary provisions of divesture transactions, the risk that Veolia Environnement's compliance with environmental laws may become more costly in the future, the risk that currency exchange rate fluctuations may negatively affect Veolia Environnement's financial results and the price of its shares, the risk that Veolia Environnement may incur environmental liability in connection with its past, present and future operations, as well as the risks described in the documents Veolia Environnement has filed with the U.S. Securities and Exchange Commission.

Veolia Environnement does not undertake, nor does it have, any obligation to provide updates or to revise any forward-looking statements. Investors and security holders may obtain a free copy of documents filed by Veolia Environnement with the U.S. Securities and Exchange Commission from Veolia Environnement.

This document contains 'non-GAAP financial measures' within the meaning of Regulation G adopted by the U.S. Securities and Exchange Commission under the U.S. Sarbanes-Oxley Act of 2002. These 'non-GAAP financial measures' are being communicated and made public in accordance with the exemption provided by Rule 100 of Regulation G

Media Contact:

Sandrine Guendoul

Tel: + 33 (0)1 71 75 12 52

Email: sandrine.guendoul@veolia.com

Investor Contact:

Ronald Wasylec

Tel: + 33 (0)1 71 75 12 23


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Source: ENP Newswire