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Press Release Results for the first half ending June 30, 2015 (858.01 KB)

Antoine Frérot, Veolia Environnement’s Chairman and Chief Executive Officer commented: “During the first half of 2015, Veolia has once again demonstrated its ability to significantly improve results. All of our financial indicators have increased, leading to a significant increase in margins.  During the first half of 2015 alone, Veolia achieved 110% growth in current net income, which is equal to that of the entire 2014 fiscal year.  As a result, our 2015 objectives are fully confirmed. Our strategy of restoring margins, balance sheet equilibrium and strong free cash flow generation allows us to approach the next stages of our development for the 2016-2018 period with great confidence.”

  • Revenue increased 7.3% (+3.3% at constant exchange rates) to €12,318 million, compared to re-presented 11,482 million for the first half of 2014.

On a pro forma basis[4], revenue increased 2.6% (-1.3% at constant consolidated scope and exchange rates) compared to €12,010 million for the first half of 2014.
The favorable impact of exchange rates contributed €499 million (+4.2% growth) to first half 2015 revenue. Lower energy and recycled raw material prices weighed on revenue in the amount of €114 million (-1% impact on revenue).
Year-over-year trends in the second quarter in all segments improved compared to the first quarter trend, with the exception of the Global Businesses segment, which was negatively impacted by delays in certain projects.

  • In France, revenue declined 2.6% at constant consolidation scope (but -1.6% in Q2 vs. -3.6% in Q1). Water was penalized by large contract renewals (-€70 million), partially offset by the impact of higher volumes sold (+0.4%) and moderate tariff indexation (+0.4%). The Waste business improved, with 3.8% growth in Q2 versus a decline of 1.4% in Q1, due to contract wins, a 4.0% increase in volumes in Q2 (vs. +1.1% in Q1) and a less unfavorable impact of recycled raw material prices.  
  • Europe excluding France revenue was +0.6% (-2.3% at constant consolidation scope and exchange rates), with quasi stable performance in Q2 after a Q1 that declined 3.5%. Germany revenue declined due to the impact of lower energy prices and continued commercial portfolio restructuring in the Waste business. The UK benefited from a favorable revenue mix, with an increase in treated volumes and lower PFI construction revenue (-€52 million) at weak margins.  Central and Eastern European revenue increased 1.6% at constant consolidation scope and exchange rates, with higher average prices in Water (+1.9%), and more favorable weather in Q2 in the Energy business.
  • The Rest of the World segment continues to post good growth, up 14.3% (+3.4% at constant consolidation scope and exchange rates), with +4.5% growth in Q2, following +2.4% in Q1 driven by good performance in Asia (China and Japan), and in Latin America, which offset the decline in revenue in the United States associated with lower energy prices.
  • Global Businesses revenue declined 3.3% at constant consolidation scope and exchange rates, with stability in Hazardous Waste (impact of lower oil prices) and a reduction in construction activity.
  • By business and at constant consolidation scope and exchange rates, Water (-1.7%) was stable in Operations activities, but down in engineering and construction due to project delays. Waste revenue declined moderately (-0.8%), with volumes up 0.8%. Energy rebounded in Q2 (+3.7% after -4.4% in Q1 driven by the decline in energy prices).


  • EBITDA increased 10.6% (+6.0% at constant consolidation scope and exchange rates) to €1,531 million compared with re-presented pro forma €1,384 million in the first half of 2014.
    • Currency movements had a favorable impact on EBITDA growth of 4.6% (+€64 million).  Lower recycled raw material prices impacted EBITDA by -€12 million.
    • At constant consolidation scope and exchange rates, EBITDA mainly increased due to the benefit of further cost savings (+€110 million contribution during the first half of 2015), higher volumes (net impact of +€11 million) and an overall favorable pricing impact (+€10 million). Contract renegotiations in French Water penalized EBITDA by €50 million.
    • By segment: In France in the Water business, cost reductions, along with a slight increase in volumes sold (+0.4%) compensated for the impact of contract renewals at the EBITDA level.  In Waste, EBITDA improved 3.6% at constant consolidation scope due to good activity in Q2, as well as cost savings and a slight favorable impact related to fuel. In the Rest of Europe segment, EBITDA grew 9.1% at constant consolidation scope and exchange rates. In the UK, EBITDA benefitted from good treated volumes. In Germany, EBITDA was stable due to good execution of restructuring, while Central and Eastern Europe EBITDA posted strong growth of 11.8% at constant consolidation scope and exchange rates. EBITDA in the Rest of the World segment also grew significantly (+7.5% at constant consolidation scope and exchange rates), with in particular the United States growing 12.7%, Latin America +15.5% given a good start to the Buenos Aires contract, and very good performance in China (+34.6%). EBITDA in the Global Businesses segment was negatively impacted by the decline in oil prices and difficulties in the SADE business relative to a contract in Peru.   


  • Current EBIT posted a significant increase of 35.2% (+24.6% at constant consolidation scope and exchange rates) to €712 million versus pro forma €527 million in the first half of 2014.
    • Current EBIT benefited from a favorable currency effect of €39 million.
    • Excluding currency movements, the significant increase in Current EBIT was driven by the strong growth in EBITDA.  Depreciation and amortization expense was stable at €687 million (vs. pro forma €691 million in the first half of 2014). The contribution of the share of current net income of joint ventures and associates increased 12% to €53 million.


  • Current Net Income – Group share more than doubled to €321 million compared with re-presented pro forma €153 million in the first half of 2014
    • Current net income growth was driven by strong growth in Current EBIT.
    • Net financial costs continued to improve on a pro forma basis (reduction of €10 million, including the impact of €8 million related to unfavorable exchange rate movements).
    • The re-presented tax rate was 30% given an increase in profits in countries with low tax rates (Poland and the Czech Republic).
    • Non-controlling interests increased to €82 million versus pro forma €61 million due to improved results in the Poland Energy business. 
    • Current net income, Group share includes capital gains on financial divestitures of €63 million, slightly more than €48 million in the first half of 2014.
    • Net income, Group share amounted to €353 million versus pro forma €127 million in the first half of H1 2014 (+178%), including a +€25 million contribution from Transdev.


  • Net financial debt amounted to €9,223 million at June 30, 2015, compared to €8,936 million at June 30, 2014.
    • Net financial debt increased due to a cumulative unfavorable foreign currency movement of €764 million since June 30, 2014 (-€492 million since December 31, 2014).  Excluding the currency impact, net financial debt would have declined by €477 million.


  • Excluding working capital seasonality, first half net Free Cash Flow was €552 million
    • Net Free Cash Flow generated during the first half of 2015 improved €93 million to -€76 million compared with pro forma -€169 million in the first half of 2014 due to the strong growth and EBITDA and good capex discipline (€565 million versus pro forma €592 million in the first half of 2014).


  • 2015 objectives fully confirmed. 
    • Revenue growth
    • EBITDA and Current EBIT growth
      • Continued strong operational performance
      • Cost savings benefit : continued execution of the €750 million cost savings plan
    • Continued capex discipline
    • The dividend and hybrid coupon payment to be covered by Current Net Income and paid by Free  Cash Flow excluding net financial divestments
    • Net financial debt under control




  • Investor Day now set for December 14, 2015
    • Veolia will present its strategic plan for 2016-2018 during an Investor Day scheduled for December 14, 2015.



Definitions of all key financial indicators mentioned can be found at the end of this press release.



Veolia group is the global leader in optimized resource management. With over 179,000 employees* worldwide, the Group 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 2014, the group Veolia supplied 96 million people with drinking water and 60 million people with wastewater service, produced 52 million megawatt hours of energy and converted 31 million metric tons of waste into new materials and energy. Veolia Environnement (listed on Paris Euronext: VIE) recorded consolidated revenue of €24.4 billion* in 2014.
(*) 2014 pro-forma figures including Dalkia International (100%) and excluding Dalkia France
Important disclaimer
Veolia Environnement is a corporation listed on the 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 other risks described in the documents Veolia Environnement has filed with the Autorités des Marchés Financiers (French securities regulator). 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 from Veolia Environnement a free copy of documents it filed ( with the Autorités des Marchés Financiers.
This document contains "non‐GAAP financial measures". These "non‐GAAP financial measures" might be defined differently from similar financial measures made public by other groups and should not replace GAAP financial measures prepared pursuant to IFRS standards.


Group Media Relations
Laurent Obadia
Sandrine Guendoul
Tel: +33 (0)1 71 75 12 52
[email protected]

Analyst & Investor Relations
Ronald Wasylec - Ariane de Lamaze
Tel. : + 33 (0)1 71 75 12 23 / 06 00
Terri Anne Powers (United States)
Tel.: +312 552 2890


[1] Unaudited figures
[2] On a pro forma basis, at constant consolidation scope and exchange rates: revenue declined by 1.3%, EBITDA grew 6.0% and Current EBIT increased 24.6%.
[3] Variation compared to pro forma figures for the half-year ended June 30, 2014. [4] Pro forma figures exclude Dalkia France and include 100% consolidation of Dalkia International as of January 1, 2014.