Glossary

ADEME
Agence De l’Environnement et de la Maîtrise de l’Energie (the French Environment and Energy Management Agency).

AMERICAN DEPOSITARY RECEIPT (ADR)
A negotiable certificate of deposit representing one or more shares with a face value denominated in US dollars and the dividends of which are also paid in US dollars. An ADR allows a non-US company to be listed in the United States under certain conditions. Veolia Environnement’s shares were first floated on the New York Stock Exchange (NYSE) on October 5, 2001 in the form of an ADR. One Veolia Environnement share is represented by one Veolia Environnement ADR.

AMF : AUTORITÉ DES MARCHÉS FINANCIERS (FRENCH FINANCIAL MARKETS AUTHORITY)
The AMF was established by the Financial Security Act of August 1, 2003 and formed from the merger of the Commission des opérations de bourse (COB), the Conseil des marchés financiers (CMF) and the Conseil de discipline de la gestion financière. Its task is to define the rules of financial markets, monitor these markets and protect shareholders. Under the Act, the AMF is also now responsible for the supervision of investment consultants and oversight of rating agencies and financial analysts. The AMF’s website is at : www.amf-france.org

BALO
All statutory publications issued by Veolia Environnement can be found in the “Bulletin des Annonces Légales Obligatoires” (the bulletin of mandatory legal notices): year-end results (consolidated and corporate), consolidated half-yearly results, quarterly revenue from ordinary activities, dividend amount, Shareholders’ Meeting notices, capital transactions, etc.

BIOFUEL
A fuel consisting wholly or partially of transformed biomass of plant or animal origin.

BIOGAZ
A gas produced by the biological breakdown of organic matter in the absence of oxygen. Biogas has a high methane content (50%) and therefore has considerable potential for producing heat and energy. In our business activity, biogas is produced in storage centres, fermentation tanks and sludge digesters in wastewater treatment plants. Biogas contributes to the greenhouse effect and is an odour nuisance and must therefore be collected. Once collected, it can be used as an alternative energy source to fossil fuels.

BIOMASS
Designates any plant matter that can be recycled for energy production. Biomass can be e.g. wood, biogas or straw.

BIOREACTOR
Used for accelerating the production of biogas. A bioreactor works by retrieving leachate and reinjecting it into waste mass. By supplying moisture and nutrients to the bacteria digesting the waste mass, a bioreactor accelerates the breakdown process, making it easier to recover the resulting methane for use in energy production. The recovery and recycling of the methane produced in a bioreactor brings economic as well as environmental benefits: it reduces emissions of greenhouse gases while providing a significant source of energy.

BOND
A negotiable debt security listed on a stock exchange that is redeemable upon maturity and earns interest over a specific period. The price of the bond varies with changes in interest rates.

CAC 40 INDEX
Principal index published by Euronext Paris. It is calculated continuously from the prices of the shares of the 40 French companies most actively traded on Euronext regulated markets in Paris based on the criteria of size and liquidity. Veolia Environnement’s share has been included in the CAC 40 index since August 8, 2001.

CAPITAL GAIN
The profit resulting from the difference between the sale price of a share and its purchase or subscription price. If this difference is negative, the loss is called a “capital loss”.

COMBINED HEAT AND POWER (CHP)
CHP designates the simultaneous production of electricity and heat by burning natural gas, oil products, coal, waste or biomass. The heat released during the production of electricity is recovered and used for heating buildings or as process heat in industry. CHP can therefore significantly improve the efficiency of the primary energy source to over 80% in some cases. When cold is produced too, the process in known as trigeneration or polygeneration.

COMPANY NET INCOME
Net income earned by all Veolia’s companies after deducting minority interests’ profit or loss.

COMPOSTING
A biological process in which the input of air accelerates the decomposition of organic waste to produce a compost. The reactions that occur during composting release heat that “cleans” the compost by eliminating the pathogenic organisms contained in the feedstock, i.e. the waste.

CORPORATE GOVERNANCE
This concept refers to the various measures taken by a company to ensure transparency, shareholder equality and a balance of powers between management and shareholders. These mechanisms concern the ways in which the company’s strategy is developed and implemented, the way the Board of Directors is run, and the compensation policy applicable to executives and managers.

CUSTODIAL FEES
Fees deducted by a financial intermediary for maintaining a securities account. They generally represent a percentage of the portfolio or a fixed sum per position held. In Veolia’s case, custodial services for registered shares are provided free of charge by Société Générale.

DEFERRED SETTLEMENT SERVICE (DSS)
A paid service used to defer settlement of a transaction or delivery of shares until the end of the month. Settlement occurs five trading days before the last business day of the month. Veolia Environnement’s share is eligible for DSS.

DISTRICT HEATING AND COOLING SYSTEMS
Systems comprising a central generating unit and a network of ducts to supply heating, hot water and air conditioning to public- and private-sector buildings such as schools, hospitals, offices and apartment blocks.

DIVIDEND
Portion of the company’s net earnings distributed to shareholders. The amount is voted on by shareholders at the Shareholders’ Meeting after the annual accounts are approved and the allocation of earnings is proposed by the Board of Directors.

DRAINAGE AND SEWERAGE
Collectively designates the catchment, conveyance and treatment of stormwater and wastewater in an urban area, industrial site or private land prior to its return to the environment. Also includes the elimination of the sludge resulting from treatment.

EARNINGS PER SHARE (EPS)
Net EPS is the company’s net profit divided by the number of outstanding shares.

EFFLUENT
Normally designates domestic and urban wastewater (which is received by wastewater treatment plants) and, by extension, the wastewater produced by industrial processes.

EURONEXT PARIS
Euronext was formed on September 22, 2000 from the merger of the Amsterdam, Brussels and Paris stock exchanges. Euronext Paris operates the markets and ensures their security, transparency and development. It is authorized by the AMF to regulate the market. Its responsibilities include listing and delisting securities, broadcasting prices in real time, recording transactions and helping issuers to list their shares.

FACE VALUE (PAR VALUE)
The face value of a share, also referred to as the par value or nominal value, is the portion of share capital represented by the share. The company’s capital shown on the balance sheet is the face value of the share multiplied by the total number of shares issued.

GEARING
The ratio of financial debt, net of cash and cash equivalents, to shareholders’ equity.

GREEN WASTE
Plant waste from gardening and the upkeep of parks, etc. A distinction is made between domestic green waste (i.e., from private gardens) and municipal green waste, which is produced by the activities of municipal parks and gardens services.

GREENHOUSE GAS EMISSION ALLOWANCES
An allowance is the authorization to emit one metric ton of carbon dioxide equivalent during a given period. Allowances are allocated to energy plant operators as part of the implementation of EU directives aimed at achieving the targets set by the Kyoto protocol.

GREENHOUSE GASES
Gases that absorb infrared radiation emitted by the Earth and return part of this radiation back to Earth, thereby retaining the heat in the atmosphere. The principal greenhouse gases produced by human activity are carbon dioxide (CO2), methane (CH4), tropospheric ozone (O3), the fluorine gases (HFC, PFC, SF6) and nitrous oxide (N2O). Greenhouse gas emissions are frequently measured in equivalent tonnes of carbon dioxide.

GROWTH STOCK
The stock of a company whose earnings are growing rapidly and steadily and which therefore has strong potential to increase in value.

HAZARDOUS WASTE
Waste that constitutes a pollution hazard or represents a health or environmental risk and must be suitably treated prior to disposal.

HEALTHCARE WASTE
Waste produced by hospitals and the healthcare professions. Healthcare waste includes sharps waste, i.e. disposable materials used in cutting or puncturing the skin, which should never be disposed of in conventional waste bins.​

IFRS
In accordance with the regulations of the European Parliament and the Council on the adoption of international accounting standards, Veolia Environnement has presented its financial statements based on International Financial Reporting Standards (IFRS) since January 1, 2005.

INDUSTRIAL OUTSOURCING
The delegation to a single external service provider of one or several non-core activities previously carried out on an internal basis (water and energy management, transport, environmental protection, etc.). Some outsourcing contracts also include the transfer of company personnel to subsidiaries created by the service provider.

INERT WASTE
Waste that undergoes no significant physical, chemical or biological modification. Inert waste does not decompose, cannot be burned and produces no physical or chemical reaction. It is non-biodegradable and has no effect on other material with which it comes into contact, meaning it constitutes neither an environmental pollution risk nor a health hazard.

INVESTMENT CLUB
A group of people who collectively manage a securities portfolio into which regular payments are made. Income and capital gains are shared among the members.

ISIN CODE
A new identification number for stocks listed on an exchange, adopted by Euronext for the purpose of European standardization. This code first replaced the “Sicovam” codes and then “Euroclear”.

LANDFILL
A facility in which waste is treated and stored in optimized safety conditions. Under European Union regulations three types of landfill are permitted :
  • landfills that receive hazardous waste that has stabilized or become inert (in France, class 1 landfills);
  • landfills that receive municipal or similar waste (class 2);
  • landfills that receive solid household waste and non-hazardous industrial waste (class 3).

MARKET CAPITALIZATION
The value assigned to a company by the stock exchange at a given time. It is obtained by multiplying the number of outstanding shares by the share price.

MUNICIPAL OUTSOURCING
An operating mode for public services or services of general interest under the control of public authorities and benefiting residents who, in most cases, pay directly to the service provider for the service. The service provider is responsible for operating the service and, in some cases, making investments. VE’s municipal outsourcing contracts are primarily for the collection, treatment and destruction of household and non-hazardous waste, water service, wastewater service, and public passenger transportation services.

NON-HAZARDOUS INDUSTRIAL WASTE
All non-inert and non-hazardous waste produced by business, industry, trade, crafts and service providers: includes scrap metal, non-ferrous metals, paper and cardboard, glass, textiles, woods, plastics, etc.

OPERATING INCOME
Operating income is the same as EBIT in IFRS terminology and includes exceptional items, restructuring costs and goodwill amortization.

OPERATING INCOME
In IFRS, EBIT, an internal management indicator on the income statement, becomes operating income. Exceptional items, restructuring costs and goodwill amortization are now included under this heading.

ORGANIC AND COMPOSTABLE WASTE
Waste of plant or animal origin that can be broken down by micro-organisms for whom the waste is a food source. Organic and compostable waste includes plant matter, putrescible waste from domestic kitchens, restaurants and canteens, and certain types of soiled paper and cardboard. All this waste can be used in composting.

PAYOUT RATIO
The percentage of net income distributed to shareholders in the form of dividends. Veolia calculates this ratio on the basis of the Company’s recurring net income.

PLAN D’ÉPARGNE EN ACTIONS (PEA) (STOCK SAVINGS PLAN)
Created in 1992, the PEA is a French savings instrument used to invest in the stock market. Interest and capital gains are tax-exempt at the end of five years (with the exception of the CSG and CRDS general social security taxes, which are deducted at source). Veolia Environnement’s shares are eligible for PEAs.

PRICE-EARNINGS RATIO (PER)
PER is the ratio of the quoted share price to net earnings per share. It indicates the number of times the share price covers the earnings.

QUORUM
Minimum percentage of shares with voting rights that must be present or represented for the Shareholders’ Meeting to take decisions validly.

RECOVERY
The re-use or recycling of waste or comparable action applied to it to obtain reusable materials or produce energy.

RECURRING NET INCOME
The Company’s net income excluding exceptional items, i.e., those that do not appear in the financial statements each year.

RECYCLING
The direct reinjection of a waste product into the production cycle from which it derives, in total or partial replacement of new raw material. A simple instance of recycling is to take broken bottles, melt them down and make new bottles out of them.

REFERENCE PRICE​ 
Price used to establish the opening price for the next trading session. It is the last quoted price or the last indicative price recorded in the trading system.

RENEWABLE ENERGY SOURCES
Renewable energy comes from a source that is constantly being regenerated. Renewable energy takes various forms, but ultimately derives, directly or indirectly, from the sun or from the heat contained under the earth’s surface. Examples of renewable energy sources include solar and wind energy, biomass, geothermal energy, hydraulic and wave energy, biofuels, and hydrogen derived from renewable sources.

RETURN ON CAPITAL EMPLOYED (ROCE)
This is the ratio of net profit, before financial expense and after tax, to average capital employed. It reflects the return on funds invested by shareholders and lent by the banking and financial system.

ROADSHOW
Tours made in France and abroad by company executives to present their company to analysts and professional investors. They are announced in the company’s regular financial communications and often prior to a specific transaction (IPO, capital increase).

SHARE
A certificate representing ownership of a percentage of a company’s capital. A share may earn a dividend and gives its owner voting rights. Shares may be listed on a stock exchange, but this is not a requirement. Veolia Environnement’s shares are listed on the Euronext Paris and New York stock exchanges (see ADR).

SUBSCRIPTION WARRANT
A subscription warrant, also simply called a warrant, entitles its holder to purchase a share at a pre-determined price and up to a given date.

TAX CREDIT
A dividend on French shares entitles the shareholder to a tax deduction and a capped tax credit. For further information about the 2006 Finance Act, please contact your financial intermediary or tax advisor.

USE OF WASTE AS AN ENERGY SOURCE
Any of the processes whereby the latent energy contained in waste is harnessed. When waste is burned, the calories it contains are recovered and the resulting energy used for producing electricity and/or heat and/or steam. The heat produced can be used e.g. for heating buildings. Biogas also has energy potential and is recovered for producing heat, steam, and electricity; it is also used in CHP (combined production of heat and electricity), as fuel for vehicles, electrical energy, and injection into the gas network.

WASTE SORTING
The operation whereby a mixture of waste is sorted into different categories (cardboard, plastic, wooden pallets, etc.) to facilitate disposal using different processes for each category. Sorting at source designates the operation whereby waste is sorted at the point of production.

WASTE-TO-ENERGY PLANT
A waste incineration plant that produces electricity or steam for a heating network.

WASTEWATER SERVICE
The waste produced by the facilities responsible for treating and maintaining wastewater and stormwater drainage systems. This waste is mainly organic (sludge, grease, sludge from screening treatment stations, sump waste etc.) or mineral (sand from wastewater treatment plants, sludge, sludge from sewer maintenance, watercourse dredging waste etc.).

WEEE
Waste Electrical and Electronic Equipment. Electrical and electronic equipment accounts for a growing proportion of the household waste that municipal authorities have to dispose of: it includes brown goods (television sets, radios, telephones), white goods (refrigerators and other major appliances), and household IT equipment such as computers and peripherals. The volume of WEEE is growing constantly. WEEE can represent an environmental hazard if it is not properly stripped prior to disposal.