2011, First Half Results

1

Half Year Results as of June 30, 2011

2

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 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 risks associated with conducting business in some countries outside of Western Europe, the United States and Canada, the risk that changes in energy prices and taxes may reduce Veolia Environnement's profits, the risk that we may make investments in projects without being able to obtain the required approvals for the project, the risk that governmental authorities could terminate or modify some of Veolia Environnement's contracts, the risk that our long-term contracts may limit our capacity to quickly and effectively react to general economic changes affecting our performance under those contracts, the risk that acquisitions may not provide the benefits that Veolia Environnement hopes to achieve, 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(c) of Regulation G

This document contains certain information relating to the valuation of certain of Veolia Environnement’s recently announced or completed acquisitions. In some cases, the valuation is expressed as a multiple of EBITDA of the acquired business, based on thefinancial information provided to Veolia Environnement as part of the acquisition process. Such multiples do not imply any prediction as to the actual levels of EBITDA that the acquired businesses are likely to achieve. Actual EBITDA may be adversely affected by numerous factors, including those described under “Forward-Looking Statements” above.

DISCLAIMER

-

3

Antoine Frérot, CEO

4

Where are we in the transformation?

Be more flexible Reduce costs more than €250M per year

€265M in 2010First restructuring initiated

Review the asset base (€4 billion in divestments in 3 years)€1,241M in 2010 + €1,048M in H1 2011

Grow in a more selective way within the company’s leading positions Return of organic revenue growth confirmed

Organic revenue growth improvement: H1 2010 was -1.1%*, H1 2011 was +4.4% Increased concentration

Concentration within top 8 countries: 79% of revenue (excluding Veolia Transdev)

=> TO ACCELERATE TRANSFORMATION

* Published figures

5

Acceleration of the company’s transformation

Restructure business activities

Simplify the organization

Reduce costs

Modify the Executive Committee

6

Restructure business activities

The complete review of company assets is finished

Exit or immediate divestment of activities

Complete assessment of operations in certain geographies => Presence in less than 40 countries by the end of 2013

A more concentrated and reactive company

7

Company transformation: simplify the organization

Reduction of management layers from 2011

In light of restructuring, reorganization of business units

Review of operational processes and reinforcement of management control

Rationalization of headquarters functions

Company project: “Convergence” Plan

8

Company transformation: reinforce cost reductions

Annual Efficiency Plan cost savings of at least €250M is maintained 2013 objective: €300M

Additional cost savings plan Impact on operating income of at least €150M on 2013 annual results €250M to €300M in 2015

9

Modify the Executive Committee

A team dedicated to organizational structure, operational performance and cost reductions => Denis Gasquet

A new Head of Environmental Services division => Jérôme Le Conte

A new Head of Energy Services division => Franck Lacroix

A new Director of Human Resources => Jean-Marie Lambert

=> Sharing the same vision for the company’s future

10

Pierre-François Riolacci, CFO

11

First half 2011

Continued revenue growth

Localized difficulties in Southern Europe, North Africa and the United States

Action plan and acceleration of restructuring activities, resulting in significant write-downs and provisions (€838M)

Positive free cash flow of €155M

12

Highlights- Southern Europe (1/5) First half events Italy: difficult context in three divisions

Energy Services:–Increased competition Adaptation plan related to structure and activitiesEnvironmental Services:–Persistent operational difficulties Litigation paymentWater: –Failure of the referendum on the privatization of services in Water–Operational financing difficulties

Degradation of activity and financing conditions in Spain and PortugalDecline in adjusted operating cash flow of €39M

Significant disengagements decided Fair value adjustment: €494M (non-recurring) Italy: write-downs of €476MOther Southern Europe: write-downs of €18M

13

Highlights- North Africa (2/5)

First half events Morocco (Water)

Contracts in Tanger-Tétouan and Rabat

Takes into account ongoing negotiations (conclusions of an Independent Commission)

Morocco (Bus in Rabat)Modification of the conditions of operation of the contract

Exit, with client taking over operations

Egypt (Environmental Services)Alexandria contract: non payment for services during the second quarter

Contract termination in progress

Decline in adjusted operating cash flow of €21M

Reduce/exit certain operations as part of restructuring in the zone

Fair value adjustment €32M in write-downs in non-recurring items

€54M in write-downs and provisions accounted for within adjusted operating income

14

Highlights- United States (3/5)

Marine Services (offshore oil and gas industrial services in the Gulf of Mexico -Environmental Services division)Discovery of accounting fraud:

correction impacted the opening balance sheet in accordance with IAS 8

First half events:Weak fleet utilization rates

Reduced adjusted operating cash flow by €37M in H1 2011

Decision to sell this non-core business

TNAI (Energy Services) First half events:

Revision of expected growth projects

Modification of investment plan

Fair value adjustmentGoodwill write-down of €152M

15

Highlight - Veolia Transdev combination (4/5) In accordance with IFRS 3 revised and IFRS 5, and following Veolia’s loss of control of the

Transport division (closure March 3, 2011): The former Veolia Transport operations are reclassified to discontinued operations for the months of

January and February 2011 and during the first half of 2010.

The new entity Veolia Transdev (VTD) is consolidated by proportional integration at 50% beginning March 3, 2011.

Divestment, by Veolia Transport, and prior to the closing at March 3, 2011, of certain French and Swiss transportation assets to RATP.

Initial assessment of opening balance sheet (PPA)

Impact on the accounts for the six months ending June 30, 2011 Scope effect (4 months)

Revenue €1,317M Adjusted operating cash flow €75MOperating income €10M

Capital gain of €430M (in discontinued operations)

Reduction of net financial debt of €540M

Full year negative impact on operating income of amortization related to initial assessment of opening balance sheet of roughly €20M to €30M (at 100%)

16

Highlights - Overview (5/5)

Operational losses, provisions (WCR) and intangible asset write-downs* -€97M in adjusted operating cash flow

-€109M in adjusted operating income

Non-recurring write-downs: €686M Of which -€500M goodwill impairments and

-€186M in write-downs of other assets

Capital gain on Veolia Transdev in discontinued operations of €430M

(152)(152)United States

(430)

(10)

(268)

EnergyServices

(107)

2

(32)

(77)

Water

(8)Other

(686)(149)TOTAL

(32)North Africa

(494)(149)Southern Europe

TotalEnvironmental Services

In €M

(97)TOTAL

(37)Marine Services

(21)North Africa

(39)Southern Europe

Impact adj. op cash flow

In €M

Non-recurring write-downs

Adj. Op cash flow impact

* Excluding Italy

(109)TOTAL

(37)Marine Services

(54)North Africa

(18)Southern Europe

Impact adj. op income

In €M

Adj. Op. income impact

17

Key figures at June 30, 2011

+4.2% (3)+4.5% (3)14,970-14,330Revenue excl. VTD

-11.0% (3)-10.0% (3)927-1,030Adjusted operating income excl. VTD

-3.9% (3)-3.5% (3)1,665-1,726Adjusted operating cash flow excl. VTD

-na(67)374374Net income attrib to owners of the company

--28.5%188263306Adjusted net income attrib to owners of the company

In €M H1 2010 published

H1 2010Re-presented (1)

H1 2011 Current FX

Constant FX

Revenue 17,177 14,106 16,287 +15.5% +15.2% (2)

Adjusted operating cash flow 1,885 1,694 1,741 +2.8% +2.3%

Adjusted operating cash flow margin 11.0% 12.0% 10.7%

Adjusted operating income 1,078 1,011 938 -7.2% -8.3%

Adjusted operating income margin 6.3% 7.2% 5.8%

Operating income 1,125 1,101 252 -77.1% -78.9%

Free Cash Flow (133) (133) 155 - -

Net financial debt 16,027 16,027 14,764 - -

(1) The financial statements of 2010 have been re‐presented in order to ensure comparability of periods for the reclassification into « net income from discontinued operations » of the historical Veolia Transport

division, the German operations in the Energy Services division, the Norwegian operations in the Environmental Services division, and Water operations in the Netherlands.For the reclassification into “continuing operations” the Renewable Energies business within the Energy Services division.(2) +4.4 % at constant scope and exchange rates(3) Change compared to June 30, 2011 published figures, excluding Veolia Transdev

18

Revenue by division

Current FX

Constant FX

Constant scope & FX

Water +5.5% +5.2% +2.5%

Environmental Services +8.4% +8.2% +8.7%

Energy Services +4.3% +3.8% +2.1%

Transport +100% - -

Total +15.5% +15.2% +4.4%3,701

3,862

4,514

4,894

5,891

6,214

1,317

14,106

in €M 16,287

(1) The financial statements of 2010 have been re‐presented in order to ensure comparability of periods: ‐ For the reclassification into « net income from discontinued operations » of the German operations in the Energy Services division, the Norwegian operations in the Environmental Services

division, and operations in the Netherlands within the Water division; ‐ For the reclassification into “net income from discontinued operations” of the historical Veolia Transport division;‐ For the reclassification into “continuing operations” the Renewable Energies business within the Energy Services division.

H1 2010 (1) H1 2011

19

Veolia Water: Revenue increased 5.5%

Operations: Revenue increased 5.7% (+2.6% at constant scope and exchange rates) France: despite unfavorable contract changes (SEDIF), revenue

stabilized due to price effects and good volumes in the month of May

Outside France: Revenue increased 9.7% (+4.5% at constant scope & exchange rates): good performance in Europe (Germany, United Kingdom and Bulgaria due to contracts purchased from United Utilities) and in Asia (higher prices in China)

Technologies and Networks: Revenue increased 4.9% (+2.5% at constant scope and exchange rates) Effect of the end of large Design & Build contracts (Marafiq/ Fujairah /

Ras Laffan), offset by :The Hong Kong contract (€67M)

Recovery in Solutions and industrial D&B

Good activity at Sade, despite the impact of SEDIF contract renewal

1,6841,606

4,5304,285

Tech & Networks Operations

+4.9%

+5.5%

First half revenue (€M)

5,891 6,214

+5.7%

(1) The financial statements of 2010 have been re‐presented in order to ensure comparability of periods for the reclassification into « net income from discontinued operations » of the operations in the Netherlands within the Water division

H1 2010 (1) H1 2011

20

Veolia Environmental Services: Revenue increased 8.4%

4,514 4,894+8.7% at constant scope &

FX


Waste volumes +2.5% Price and volumes of recycled materials + 3.7%

Service price increases + 1.3%

Other +1.2%

Foreign currency + 0.2%

Consolidation scope - 0.5%

Change in revenue H1 2011 / H1 2010 +8.4%

Breakdown of revenue by activityH1 2010 H1 2011

Urban cleaning and collection

Non‐hazardous industrial waste collection and services

Hazardous industrial waste collection and services

Sorting, recycling and trading

Hazardous waste treatment

Waste‐to‐energy from non‐hazardous waste

Landfilling of non‐hazardous and inert waste

H1 2010 (1) H1 2011(1) The financial statements of 2010 have been re‐presented to ensure

comparability of periods for the reclassification into « net income from discontinued operations » of the Norwegian operations

22%

24%

16%

16%

6%

8%

8%20%

24%

15%

17%

6%

9%

9%

21

Veolia Environmental Services: Revenue by geography

Solid waste: Revenue increased 4.9% at constant scope and FX

Improvement in industrial services, excluding Marine Services

Marine Services: weak fleet utilization (improvement throughout the first half) and significant damages

+1.6%14%North America

Positive contribution from integrated contracts (PFI): Construction revenue in East Sussex and Hampshire and good waste-to-energy utilizationMunicipal still in declineGood improvement in landfill: higher volumes landfilled and higher prices, including benefit of landfill tax

+11%17%United Kingdom

Higher prices and volumes of recycled materials (impact €69M)Higher industrial volumesCompetitive pressure on municipal contracts and DSD business

+11.7%13%Germany

Higher prices and volumes of recycled materials (impact €80M)

Volumes increased notably in hazardous waste, commercial collection and landfills

+8.6%35%France

Δ at constant scope & FX

% of H1 2011

revenue

22

Veolia Energy Services: Revenue increased 4.3%

Revenue of €3,862M increased 4.3% (+2.1% at constant scope and exchange rates)

Higher energy prices impact of roughly €160M vs. H1 2010

Unfavorable climate effect in first half 2011, principally in France and Central Europe impact of -€113M vs. H1 2010

Scope effect related to acquisitions completed in 2010, notably NWR and its subsidiaries impact of +€45M vs. H1 2010


Outside FranceFrance

+2.7%

+5.9%1,890

1,811

3,701 3,862

2,002

1,860

+4.3%

(1) The financial statements of 2010 have been re‐presented in order to ensure comparability of periods: ‐ For the reclassification into « net income from discontinued operations » of the German operations in the Energy Services division; ‐ For the reclassification into “continuing operations” the Renewable Energies business within the Energy Services division.

H1 2010 (1) H1 2011

23

Following the combination of Veolia Transport and Transdev, consolidation of the new entity, by proportional integration at 50% since Mar 3, 2011:

Revenue of €1,317M from March to June 2011 (of which Veolia Transport €936M and Transdev €381M):

For the first half of 2011 Veolia Transdev posted a pro forma* revenue decline of 1.6%:

–Of which -4.2% primarily due to divestments (RATP)

–Of which +2.5% due to organic growth primarily related to new contracts in France, Germany and the United States

Veolia Transdev

* 6 months Veolia Transdev at 100%

24

Adjusted operating cash flow

In €M current FX

constant FX

H1 2011

--10.7%12.0%11.0%Adjusted operating cash flow margin

-3.9%-3.5%1,665-1,726Adjusted Operating cash flow excl. VTD

1,885

-75

159

386

627

788

+2.3%+2.8%1,7411,694Total adjusted operating cash flow

+38.6%+38.6%-46-75Other

--76-Transport

-4.7%-4.0%362377Energy Services

-4.6%-4.1%583608Environmental Services

-2.5%-2.2%766784Water

H1 2010re-presented (1)



H1 2010 published (1)

25

Performance analysis (1/2): Adjusted operating cash flow

1 000

1 100

1 200

1 300

1 400

1 500

1 600

1 700

1 800

1 900

2 000

Adj. op cashflow June

2010(published)

VeoliaTransport

Adj. op cashflow

June 2010excl. VeoliaTransport

FX SouthernEurope

North Africa MarineServices

Total Operations Adj. op.cash flowJune 2011excl. VTD

Adj. op.cash flowJune 2011(published)

1,637 +28

1,885 -159

+8 1,7411,726-21

-39-37

1,665

26

Adjusted operating income

In €M current FX

constant FX

H1 2011

--5.8%7.2%6.3%Adjusted operating income margin

-11.0%-10.0%927-1,030Adjusted operating income excl. VTD

1,078

-79

48

268

251

590

-8.3%-7.2%9381,011Adjusted operating income

+21.5%+21.5%-62-79Other

--10-Transport

-4.9%-4.0%253264Energy Services

+3.1%+5.2%253240Environmental Services

-18.0%-17.4%484586Water




H1 2010published (1)

27

Performance analysis (2/2): Adjusted operating income

* Impact of the change in discount rate utilized to calculate landfill site remediation provisions

700

800

900

1 000

1 100

1 200

Adj. opincome

(published)

VeoliaTransport

Adj, opincome

June 2010excl. VeoliaTransport

FX SouthernEurope

North Africa MarineServices

Total Capitalgains

Siteprovisions*

Operations Adj. opincome

June 2011excl. VTD

Adj. opincome

June 2011(published)

-63932+29+29

1,078 -48

+11

927

1,030 -54-18

-37

938

28

Veolia Water: Adjusted operating cash flow and adjusted operating income

Adjusted operating cash flow declined 2.2% (-2.5% at constant exchange rates) to €766M: -€18M

Contribution from new contracts (Sofia and PFI in UK) Good performance in Asia (China, Japan, Korea) Contractual erosion in France (SEDIF) Asset maintenance costs in the United Kingdom at the beginning of the year

Adjusted operating income declined 17.4% (-18.0% at constant exchange rates) to €484M: -€102M

Of which €35M of asset write-downs in Southern Europe and North Africa Decline in capital gains included within adjusted operating income (-€44M)

29

Veolia Environmental Services: Adjusted operating cash flow and adjusted operating income

Adjusted operating cash flow declined 4.1% (-4.6% at constant exchange rates) to €583M: -€25MMarine services: -€37M Egypt: -€21M Italy: -€14M Excluding these items, adjusted operating cash flow would have increased by €47M, or 7.7%

Adjusted operating income increased 5.2% (+3.1% at constant exchange rates) to €253M: +€13MOf which -€51M related to write-downs and operational impacts, and +€29M related to the

favorable impact of the change in discount rate utilized to calculate landfill site remediation provisions

Excluding these items, adjusted operating income would have increased 14.6%

30

Adjusted operating cash flow declined 4.0% (-4.7% at constant exchange rates), to €362M: -€15MOf which Southern Europe: -€25M

Excluding Southern Europe, adjusted operating cash flow increased 2.7%

Climate impact was more than offset by favorable energy prices

Adjusted operating income declined 4.0% (-4.9% at constant exchange rates) to €253M: -€11MOf which Southern Europe: -€23M

Excluding these items, adjusted operating income increased 4.5%

Veolia Energy Services: Adjusted operating cash flow and adjusted operating income

31

Following the combination of Veolia Transport and Transdev, and consolidation of the new entity using proportional integration since March 3, 2011:

Adjusted operating cash flow of €75M and adjusted operating income of €10M

During the first half, the new entity (on a pro forma* basis) posted a decline in adjusted operating cash flow due to:

Transaction costs for the new entity

Fuel prices

Contract renewals (notably in France) under strong competition

Employee strikes (SNCM & Germany)

Veolia Transdev : Adjusted operating cash flow and adjusted operating income

* 6 months Veolia Transdev at 100%

32

Taxes and cost of net financial debt

-182.4%-167-304Effective

-686

-

-65

3

-115

1

Goodwill impairment and intangible asset write-downs

Impairment of net deferred tax position of France tax group

Other non-deductible

33.1%584-193Adjusted for one-time items

Tax rateIncome base

before taxes

Tax expenseIn €M

The cost of net financial debt declined from €387M to €376M due to lower average net financial debt. The financing rate increased from 5.06% to 5.32%, primarily due to higher cash position.

After adjusting for one-time items, the group tax rate at June 30, 2011 was 33.1% compared to 33.4%at June 30, 2010.

The « Effective » tax rate at June 30, 2011 is derived:

33

Reconciliation of operating income to net income

In €M 2010 re-presented (1) 2011

-67-25518837468306Published net income attrib. to owners of Co.

---374111263Re-presented net income attrib. to owners of Co.

-36118-154-171-19-152Non-controlling interests

434434-4040-Net income from discontinued operations

6-67-7Share of net income of associates

-304-121-183-183--183Income tax expense

-43--43-33--33Other financial revenue and expense

-376--376-387--387Cost of net financial debt

252-6869381 101901 011Operating income

TotalAdjustmentAdjustedTotalAdjustmentAdjusted

(1) The financial statements of 2010 have been re‐presented in order to ensure comparability of periods: ‐ For the reclassification into « net income from discontinued operations » of the German operations in the Energy Services division, the Norwegian operations in the

Environmental Services division, and operations in the Netherlands within the Water division; ‐ For the reclassification into “net income from discontinued operations” of the historical Veolia Transport division;‐ For the reclassification into “continuing operations” the Renewable Energies business within the Energy Services division.

34

Statement of cash flows: free cash flow of €155M

(1) Of which financial cash flows (‐€6M in 2010 and +€8M in 2011) and cash flow from discontinued operations (€190M in 2010 and ‐€17M in 2011)(2) Dividend paid to shareho9lders and non‐controlling shareholders(3) Notably changes in receivables and other financial assets for ‐€27M in 2010 and ‐€72M in 2011

Cash flow from operations (1) 1,878 1,732

Repayment of operating financial assets 215 219

Total cash generation 2,093 1,951Gross investments -1,333 -1,199

Variation of working capital -382 -658

Taxes paid -197 -210

Interest expense -352 -327

Dividend (2) -709 -387

Other (3) -19 -63

Divestments 766 1,048

Free cash flow -133 155Impact of exchange rates and other -767 299

Net financial debt at June 30 -16,027 -14,764Change in net financial debt -900 + 454

2011In €M 2010

35

Net investments

(1) Including partial acquisitions between shareholders where there is no change in control and net financial debt of companies entering control(2) Including capital increases from minority shareholders of €39M versus €108M in H1 2010, net financial debt of divested companies and partial sales between

shareholders where there is no change in control (€32M versus €93M)

102324Financial growth investments (1)

-219-215Reimbursement of operating financial assets

-68

-1,048

1,199

171

4732.8%

453

H1 2011

-1341,333Gross investments

-282-766Industrial and financial divestments (2)

2.7%% of consolidated revenue

In €M H1 2010

Maintenance investments 458

Industrial growth investments(excl. Operating financial assets)

392

New operating financial assets 159

Net investments 352 -420

36

Evolution of net financial debt

+155-133Free cash flow+283-674Foreign currency impact+16-93Other

-14,764-16,027Net financial debt at June 30+454-900Change in net financial debt

-15,218-15,127Net financial debt at January 1

H1 2011H1 2010In €M

Strong liquidity position: €10.1 billion at June 30, 2011 versus 9.7 billion at June 30, 2010 Continued active debt management

Average maturity of net financial debt of 9.1 years (vs. 9.5 years at June 30, 2010 and 9.4 years at December 31, 2010

Average maturity of gross financial debt of 6.5 years (vs. 7 years at December 31, 2010)

Ratings Moody’s : P-2 / A3, outlook: stable (on April 18, 2011: rating confirmed and outlook revised from negative to stable) Standard & Poor’s : A-2 / BBB+, outlook stable (on April 21, 2010: rating confirmed and outlook revised from

negative to stable)

37

Conclusion

38

A strategy focused on profitable growth

Veolia will concentrate its development in activities and regions that are growing: Water in Central Europe and China Environmental Services : PFI in United Kingdom Energy Services in Central Europe

Our financial discipline allows us to finance this development without increasing debt

39

Recent development at the heart of our strategy

Warsaw heating network (SPEC) Successful offer related to the privatization of the largest district heating network in

the European UnionDalkia Polska invested €360M for 85% ownership stake

2010 Revenue: €360M

Veolia has already demonstrated its know-how in the operation and optimization of heating networks in Central Europe

Possibility of coupling the network with cogeneration facilities

Hertfordshire PFI 350,000 tons of residual waste treated each year 25 year contract duration Estimated cumulative revenue of £1.3 billion

40

Organization of an Investor Day

Beginning of December 2011

Details of the “Convergence” Plan

New scope of the company

Medium term objectives will be discussed

41

2011 annual objectives

Continued organic revenue growth

Slight decline in adjusted operating income at constant exchange rates, compared to previously published 2010 figures (excluding Veolia Transdev)

Divestments of at least €1.3 billion

Efficiency Plan cost savings of at least €250M

Positive free cash flow after dividend payment

42

Half Year Results as of June 30, 2011

43

First Half 2011 Results

APPENDICES

44

Table of contents of appendices

Currency movements Appendix 1 Evolution of revenue Appendix 2 Revenue by geographic area Appendix 3 Quarterly revenue Appendix 4 Adjusted operating cash flow margins Appendix 5 Adjusted operating income margins Appendix 6 Adjusted operating income to operating income Appendix 7 Gross investments by division Appendix 8 Divestments completed during 1H11 Appendix 9 Financing costs Appendix 10 Debt management Appendix 11 Impact of foreign currency on net debt Appendix 12 VE SA bond redemption schedule Appendix 13 Consolidated statement of financial position Appendix 14 Evolution of quarterly Veolia Water revenue Appendix 15 Efficiency Plan Appendix 16 Commercial developments Appendix 17

45

Appendix 1: Currency movements

The average rate applies to the income statement and cash flow statementThe closing rate applies to the balance sheet

Main currencies

1 unit of foreign currency = …€)

+5.7%+5.7%

0.04110.0411

0.03890.0389

Czech korunaAverage rateClosing rate

+9.4%+6.8%

0.73640.7416

0.67300.6943

Australian dollarAverage rateClosing rate

+0.2%-9.4%

1.15211.1079

1.14941.2233

U.K. pound sterlingAverage rateClosing rate

-5.3%-15.1%

0.71280.6920

0.75280.8149

U.S. dollarAverage rateClosing rate

Δ H1 2011 vs. H1 2010H1 - 2011H1 - 2010

46

En €M

+ 4414,106

+619

+1,518

16,287

+15.5%


+4.4%

Internal growth

+10.8%

External growth

+0.3%

FX H1 2011

Appendix 2: Evolution of revenue



47

Appendix 3: Revenue by geographic area

+14.6%+20.9%+25.3%Asia/Pacific

Δ current FX

Δ constant FX

Δ constant scope & FX

France +13.3% +13.3% +4.1%

Europe excl. France +19.2% +18.0% +3.7%

United States +13.5% +19.1% +4.8%

Rest of the world +1.1% +1.4% -2.2%

Total 15.5% 15.2% 4.4%

1,138 1,4261,106 1,255

5,0676,038

1,0741,061

6,494

5,734

H1 2010 re-presented

H1 2011

14,106 (1)

16,287In €M



48

Appendix 4: Quarterly revenue

in €M

+15.5%+19.9%+11.3%Variation at current FX

+4.4%16,28714,106+5.4%8,1276,776+3.4%8,1607,330Company

na1,317-na983-na334-Transport

+2.1%3,8623,701+0.3%1,4191,402+3.3%2,4432,299Energy Services

+8.7%4,8944,514+7.3%2,5332,401+10.2%2,3612,113Environmental Services

+2.5%6,2145,891+6.3%3,1922,973-1.4%3,0222,918Water

Δconstant scope &

FX

20112010Re-presented (1)

Δconstant scope &

FX


Δconstant scope &

FX


1st half2nd quarter1st quarter



49

Appendix 5: Adjusted operating cash flow margins

12.3%13.3%Water

12.0%

-

10.2%

13.5%

MarginH1 2010(1)

Margin H1 2011

Environmental Services 11.9%

Energy Services 9.4%

Transport 5.7%

Total Company 10.7%



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Appendix 6: Adjusted operating income margins

7.2%

-

7.1%

5.3%

9.9%

Margin H1 2010 (1)

MarginH1 2011

Water 7.8%

Environmental Services 5.2%

Energy Services 6.6%

Transport 0.8%

Total Company 5.8%

(1) The financial statements of 2010 have been re‐presented in order to ensure comparability of periods: ‐ For the reclassification into « net income from discontinued operations » of the German operations in the Energy Services division, the Norwegian operations in the Environmental Services division, and operations in

the Netherlands within the Water division; ‐ For the reclassification into “net income from discontinued operations” of the historical Veolia Transport division;‐ For the reclassification into “continuing operations” the Renewable Energies business within the Energy Services division.

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Appendix 7: Adjusted operating income to operating income

-88Capital gain on Usti

-18-Goodwill impairment Spain

-27-Other write-downs and restructuring charges (Italy)

-32-Goodwill impairment Morocco

-448-Goodwill and other asset impairments Italy

-152-Goodwill impairment United States

-92Other

2521,101Operating income

-686+90Non-recurring items

9381,011Adjusted operating income

H1 2011H1 2010re-presented (1)

In €M

(1) The financial statements of 2010 have been re‐presented in order to ensure comparability of periods: ‐ For the reclassification into « net income from discontinued operations » of the German operations in the Energy Services division, the Norwegian operations in the Environmental Services division, and operations in

the Netherlands within the Water division; ‐ For the reclassification into “net income from discontinued operations” of the historical Veolia Transport division;‐ For the reclassification into “continuing operations” the Renewable Energies business within the Energy Services division.

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Appendix 8: Gross investments by division

Growth

1,333159392324458Total H1 2010

1,199171473102453Total H1 2011572261514Other

136-134119Transport

18527981446Energy Services

4214211263204Environmental Services

400100224670Water

TotalNew operating financial assetsIndustrialFinancial, incl.

Δ scope (1)Maintenance

In €M

(1) Including transactions between shareholders – partial acquisitions with no change in control

53

Appendix 9: Divestments completed during 1H11

(1) Including capital increases subscribed to by minorities, net financial debt of divested companies and partial divestments between non‐controlling interests (with no change in consolidation scope).

H1 2011 industrial and financial divestments (1) 1,048

Of which: Operation Veolia Transdev 540

Of which: development partnerships 71Divestment of 5% of Dalkia Ceska to J&T and EBRD investment

in Dalkia Eastern Europe

Of which: industrial divestments 80

In €M

54

Appendix 10: Net finance costs

Gross debt: €20,337M vs. €20,629M Cost of borrowing 4.08% vs. 4.13%

Cash & cash equivalents of €6,037M: 1.38%

Net debt of €14,764M€ vs. €16,027M Cost of borrowing of 5.32% (vs. 5.06%)

Average net debt (2) of €14,756M versus €15,542M€ in H1 2010

+1Impact foreign currency

+21Impact change in interest rates

+10Impact change in average debt

+32

VariationIn €M H1 2010 * H1 2011

Cost of net financial debt -408 -376

* Published figures

Closing net financial debt (1) in €M

(1) Net financial debt represents gross financial debt (non‐current borrowings, current borrowings, bank overdrafts and other cash position items), net of cash and cash equivalents and excluding fair value adjustments to derivatives hedging debt;

(2) Average net financial debt is the average of monthly debt during the period.

15 12715 377

16 02715 767

15 218

14 51114 764

15 909

16 82716 820

10 000

12 000

14 000

16 000

18 000

31-Mar-2009

30-Jun-2009

30-Sep-2009

31-Dec-2009

31-Mar-2010

30-Jun-2010

30-Sep-2010

31-Dec-2010

31-Mar-2011

30-Jun-2011

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Appendix 11: Debt management

Ratings Moody’s : P-2 / A3 stable outlook (April 18, 2011: rating confirmed and outlook revised from negative to stable) Standard & Poor’s : A-2 / BBB+ stable outlook (April 21, 2010: rating confirmed and outlook revised from negative to stable)

Average net debt maturity: 9.1 years at June 30, 2011 vs. 9.5 years at June 30, 2010 Group liquidity : €10.1 billion, of which €4.1 billion in undrawn confirmed credit lines (without disruptive covenants) Net group liquidity: €5.8 billion

Variable rate: 38% USD 8%

GBP 9%

Other 19% (1)Fixed rate : 62%

of which Euro : 76%

of which USD : 52%

of which GBP : 41%Euro 61%

(1) Of which RMB 4% and HKD 3%

Net financial debt after hedgesat June 30, 2011

Currency breakdown of gross debt after hedges at June 30, 2011

Variable rate capped: 9%

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Appendix 12: Impact of foreign currency on net debt

Net financial debt at December 31, 2010 €15,218 M Net financial debt at June 30, 2011 €14,764 M Variation -€454 M

Of which impact of FX -€283 MUS dollar -€151 MU.K. pound sterling -€90 MHong Kong dollar -€51 M

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0

200

400

600

800

1000

1200

1400

1600

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

2023

2024

2025

2026

2027

2028

2029

2030

2031

2032

2033

2034

2035

2036

2037

2038

GBPUSDEURO

Appendix 13: VE SA bond redemption schedule

€10.4 Bn€1.6 Bn

Total €12.7 Bn

€0.7 Bn

Nominal bond values converted at close June 30, 2011

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Appendix 14: Consolidated statement of financial position

In €M

Year endedDecember 31, 2010

re-presented (1)

Six months ending June

30, 2011

Intangible assets (concessions) 4,164.6 4,279.6

Property, Plant & Equipment 9,703,3 8,814.5

Other non-current assets 11,932.2 11,048.1

Operating financial assets (current and non-current) 5,628.6 5,427.0

Cash and cash equivalents 5,406.8 6,037.2

Other current assets 14,591.8 13,480.7

Total Assets 51,427.3 49,087.1

Capital (including non-controlling interests) 10,804.4 10,262.4

Financial debt (current and non-current) 20,723.2 20,677.1

Other non-current liabilities 4,610.4 4,387.3

Other current liabilities 15,289.3 13,760.3

Total Liabilities 51 427,3 49,087.1(1) The opening balance sheet has been re‐presented according to IAS 8 in order to take into account the accounting fraud during the years 2007‐2010 in the Marine Services business.

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Appendix 15: Evolution of quarterly Veolia Water revenue

In €MWorks excl. M/F/R

Operations

M/F/R*

*Marafiq / Fujairah / Ras Laffan

2,126 2,159 2,292

4,285 4,530731 773 800 900

1,5311,673

2,238

7511

0141161

0500

1,0001,5002,0002,5003,0003,5004,0004,5005,0005,5006,0006,500

Q1 2010 Q1 2011 Q2 2010 Q2 2011 H1 2010 H1 2011

60

Appendix 16: Efficiency Plan in line with 2011 objective

En M€

H1 2011

1013

15

21

25

37

115132TOTAL-2Other

7**18Transport

3231Energy Services

3043Environmental Services

4638Water

*Published figures** Included in the scope effect

H1 2010*H1 2009*

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Appendix 17: Main contracts won or renewed since the beginning of 2011

‐ Renewals: 100 main contracts renewed in France during the 1st half 2011 inWater (o/w 50 in drinking water

& 50 in wastewater), 74 in Waste (o/w 48 from local authorities & 26 from companies), 5 in Transportation & 80% of contracts due to expire during the 1st half 2011 renewed in Energy

VTNI (Seine Maritime) (transportation) ‐ Length: 4 years ‐ Cumul. Rev.: €92m Fontainebleau (water) ‐ Length: 10 years ‐ Cumul. Rev.: €34m The Nanterre waste management authority (SICTOM) (waste) ‐ Length: 3 years ‐ Cumul. Rev.: €36m Collection of household waste & recyclable materials in Hyères les Palmiers (waste)

‐ Length: 6 years ‐ Cumul. Rev.: €25m Operation of the biodegradable waste & household residual waste treatment unit for

the Pays de Lorient Conurbation (waste) ‐ Length: 6 years ‐ Cumul. Rev.: €25m

‐ Outsourcing / Privatization: The «La Manche Conseil Général» (energy performance partnership contract) (energy)

‐ Length: 15 years ‐ Cumul. Rev.: €8m Local bus services in Besançon(1) (transportation) ‐ Length: 7 years ‐ Cumul. Rev.: €217m Management of Carcassonne airport infrastructure (transportation) ‐ Length: 7 years ‐ Cumul. Rev.: €56m Management of Perpignan airport infrastructure (transportation) ‐ Length: 7 years ‐ Cumul. Rev.: €70m Electric car‐sharing vehicles service in Nice, through VENAP (70% Veolia Transdev/30% EDF)

(transportation) ‐ Length: 12 years ‐ Cumul. Rev.: €42m

‐ Engineering / Design & Build: Hydraulic link Verdon/Saint‐Cassien (networks) (water) ‐ Cumul. Rev.: €12m

Partnership between Veolia Transport & Trenitalia(2) with the creation of a new rail operator (50/50) aiming at providing overnight international services between France & Italy at the end of 2011 (transportation)

Partnership between Veolia Water & Orange with the creation of «m2o city», an operator specialized in remote environmental data & water meter reading services (water)

Partnership between Eolfi (Veolia Environnement’s subsidiary) & Réseau Ferré de France (RFF)(3)with the creation of a common company (67/33) «Airefsol Energies » aiming at developing clean energy sources (multi‐services)

ORGANIC GROWTH

PARTNERSHIPS

(1) Operations start up on January 1st, 2011(2) Signature in January 2011(3) Signature in 2010

Carcassonne Nice

Besançon

La Manche

HyèresPerpignan

Fontainebleau

Outsourcing / Privatization Renewals

Partnerships with other companies Engineering / Design & Build

VTNI

Verdon / Saint‐Cassien

Lorient

SICTOM Nanterre

M2ocity

TrenitaliaAirefsol Energies

62

‐ Renewals: SAN C2013(1) (transportation) ‐ Length: 10 years ‐ Cumul. Rev.: €960m OWL ‐ Dieselnetz (1) (transportation) ‐ Length: 12 years ‐ Cumul. Rev.: €494m Linköping city (transportation) ‐ Length: 8 years ‐ Cumul. Rev.: €160m

‐ Outsourcing / Privatization: Management contract for Thames Water’s metering services through Vennsys Limited

(water) ‐ Length: 10 years ‐ Cumul. Rev.: €276m Contract for street cleaning, waste collection & recycling for the Haringey district

of London (waste) ‐ Length: 14 years ‐ Cumul. Rev.: £200m Contract for waste collection & recycling for the Hart county and the Basingstoke

& Deane county (waste) ‐ Length: 7 years ‐ Cumul. Rev.: £32m Private Finance Initiative (PFI) contract for residual waste treatment for

the Hertfordshire county (waste) ‐ Length: 25 years ‐ Cumul. Rev.: £1.3bn «E‐Netz Rosenheim» (transportation)

‐ Length: 12 years (3‐year option) ‐ Cumul. Rev.: €1,092m (without option) Dieselnetz LNVG (transportation) ‐ Length: 10 years ‐ Cumul. Rev.: €134m Vigo new hospital ‐ O&M contract (PPP) (energy) ‐ Length: 20 years ‐ Cumul. Rev.: €96m Nestlé (energy) ‐ Length: 15 years ‐ Cumul. Rev.: €96m Campus of Bari (energy) ‐ Length: 12 years ‐ Cumul. Rev.: €40m Bonduelle (energy) ‐ Length: 5 years ‐ Cumul. Rev.: €4m

‐ Engineering / Design & Build: ERD (sewer system) (water) ‐ Cumul. Rev.: €11m Nagykanizsa (sewer & rain water system) (water) ‐ Cumul. Rev.: €11m

EXTERNAL GROWTH Privatization of the district heating network of Warsaw(2) (energy)

‐ Disposal of 85% stake in SPEC

PARTNERSHIPS Partnerships (energy) between:‐ Dalkia & the International Finance Corporation (a member of World Bank Group) ;‐ Dalkia & EBRD with a 5.5% stake acquisition each in the capital of Dalkia Eastern Europe, the new subsidiary created to bring together its activities in Russia & the Baltic states

ORGANIC GROWTH

Outsourcing / Privatization

Interests acquisition in other companies

Renewals

Partnerships with other companies

Engineering / Design & Build

(1) Signature in July 2011

(2) Transaction subject notably by the Warsaw town council & the European Commission approvals

United KingdomUnited Kingdom

HertfordshireHaringey

VennsysLtdBasingstoke

& Deane

SwedenSweden

Linköping

GermanyGermany

PolandPolandSPEC

Rosenheim

DieselnetzLNVG

The NetherlandsThe NetherlandsSAN

C2013 OWLDieselnetz

HungaryHungary

Nagykanizsa

ERDBonduelle

Russia Russia

EBRD

IFC


PortugalPortugal SpainSpain

ItalyItaly

Vigo

Nestlé

Bari

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‐ Renewals: Aberdeen Proving Ground ‐ Hazardous waste collection & treatment (waste)

‐ Cumul. Rev.: $75m New York ‐Waste Electrical & Electronic Equipment (WEEE) collection & treatment

(waste) ‐ Contract term: 10 years (2 options of 5 years) Victor Valley Operations (transportation) ‐ Length: 7 years ‐ Cumul. Rev.: €46m

‐ Outsourcing / Privatization: Long Island Bus (LIB) «Management contract » (transportation) Hazardous waste treatment for UPS Group’s sites in the United States

(waste) ‐ Cumul. Rev.: $50m Hazardous waste treatment for BASF Group’s sites in the United States

(waste) ‐ Cumul. Rev.: $24m Centre Hospitalier Universitaire de Montreal (CHUM) (energy)

‐ Length: 30 years ‐ Cumul. Rev.: around €1.2bn

‐ Engineering / Design & Build: Construction of a mine wastewater treatment

plant in West Virginia (D&B) (water) Construction & operation a produced water

facility for an oilfield in California (DBO) (water)‐ Operating length: 10 years

Global cumul. Rev.: $150m

(including Civil engineering)

Outsourcing / Privatization Renewals



ORGANIC GROWTH

United StatesUnited States

CanadaCanada

Montreal

West Virginia

Victor Valley

New York

Aberdeen

BASF

UPS

Long IslandCalifornia

64

ORGANIC GROWTH

‐ Outsourcing / Privatization:

Bus network in Macao through a joint‐venture withRATP Développement in Asia (transportation)‐ Length: 7 years ‐ Cumul. Rev.: €75m (Veolia share)

Perth ‐ Joondalup (transportation)‐ Length: 8 years ‐ Cumul. Rev.: €139m


ChinaChina

AustraliaAustralia

Macao

Perth

Outsourcing / Privatization

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‐ Engineering / Design & Build:

Construction & operation of 3 central cooling facilities for Saadiyat Island in Abu Dhabi (energy)‐ Contract term: 29 years ‐ Cumul. Rev.: €373m

Construction & operation of a new reverse osmosis desalination unit at the Az‐Zour South plant (DBO) (water)‐ Operating length: 5 years ‐ Cumul. Rev.: €81m (incl. construction)

Supply of technology for a drinking water treatment plant at Yanbu II(1) (water) ‐ Cumul. Rev.: €45m



(1) Signature in July 2011

KuwaitKuwaitAz‐Zoursud

Saudi ArabiaSaudi Arabia

Yanbu II United Arab EmiratesUnited Arab Emirates

SaadiyatIsland

ORGANIC GROWTH

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Investor relations contact information

Ronald Wasylec, Directeur des Relations avec les Investisseurs et Actionnaires individuelsTéléphone +33 1 71 75 12 23

e-mail [email protected]

Ariane de LamazeTéléphone +33 1 71 75 06 00


38 Avenue Kléber – 75116 Paris - FranceFax +33 1 71 75 10 12

Terri Anne Powers, Director of North American Investor Relations200 East Randolph Street

Suite 7900Chicago, IL 60601

Tel +1 (312) 552 2890Fax +1 (312) 552 2866


http://www.finance.veolia.com

2011, First Half Results

Business

Transcript of 2011, First Half Results