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Antoine Frérot, Veolia Environnement’s Chairman and Chief Executive Officer, declared: “First quarter results are fully on the path of the significant results improvement envisioned as part of the Group’s Transformation Plan, for which 2015 is the final year. Veolia recorded strong earnings growth due to the combined integration of the Dalkia International activities and successful execution of the cost savings program. As a result, this good start to the year allows the Group to be very confident in the achievement of full year objectives. Furthermore, on a commercial basis, we continue to be awarded significant contracts from industrial clients, while focusing on municipal contracts in which Veolia’s expertise can make a value-added difference. I am particularly proud that Veolia was selected by the Lille agglomeration to provide drinking water management and services for the next eight years. We will present the details of our new strategic plan, including commercial development, envisioned for the next three years during an Investor Day scheduled for November 17, 2015.”  


  • Revenue increased 8.5% (+4.7% at constant exchange rates) to €6,305 million compared to re-presented €5,811 million in the first quarter of 2014.

On a pro forma[1] basis, revenue increased 2.6% (-1.4% at constant exchange rates) to €6,305 million from pro forma re-presented €6,147 million in the prior year quarter, and was impacted by lower energy and recycled raw material prices.
The favorable impact of exchange rates contributed €243 million to revenue (+4%) in the first quarter of 2015. Lower energy and recycled raw material prices weighed on revenue in the amount of €82 million (-1.3%).  On a pro forma basis:

  • In France, revenue declined by 3.4%, marked by the last year of significant contract renegotiations in Water, and the decline in recycled raw material prices and impact of collection contracts that were not renewed in Waste.
  • Revenue in the Europe excluding France segment declined 1.4% (-3.5% at constant exchange rates) driven by the decline in Germany (energy prices and the continued commercial portfolio optimization in Waste) and a slight decline in the United Kingdom as the impact of the increase in volumes treated by landfilling and incineration was more than offset by lower PFI construction revenue, with only one PFI remaining to build.  Central and Eastern Europe revenue was stable, with a winter that was comparable to that of 2014 (favorable degree days in the Czech Republic, but milder in Poland and Lithuania).
  • Revenue in the Rest of the World segment recorded growth of 13.3% (+1.3% at constant exchange rates), driven by new contracts, particularly in Asia and Latin America, which offset the negative impact of lower energy prices in the United States.
  • Revenue in the Global Businesses segment grew 6% (+2% at constant exchange rates) due to the strong performance of Veolia Water Technologies, with in particular the  Carmon Creek and Az Zour North contracts.
  • By business and at constant exchange rates, Water revenue was stable, Waste revenue declined slightly, but would have been stable excluding recycled raw material prices, with volumes equivalent to those of 1Q 2014.  Energy revenue was down moderately due to a significant decline in energy prices.


  • Significant EBITDA improvement of 10.9% (+6.6% at constant exchange rates) to €816 million compared to re-presented pro forma €736 million in first quarter of 2014.
    • The favorable impact of exchange rates contributed 4.3% to the increase in EBITDA (€32 million). The decline in energy and raw material prices had a neutral impact on EBITDA.
    • At constant exchange rates, EBITDA primarily grew due to the impact of continued cost savings efforts (impact of €44 million during the first quarter) and a favorable price impact.
    • By segment: in France EBITDA was stable in Water due to stable volumes sold and tariff indexation of +1% which compensated for the impact of contract renegotiations(-€25 million). In Waste, EBITDA was lower due to the decline in volumes landfilled. In the Europe excluding France segment, EBITDA increased, with United Kingdom EBITDA benefitting from an increase in landfilled volumes, stable EBITDA in Germany due to continued restructuring and growth in EBITDA of Central and Eastern Europe countries. Strong growth in the Rest of the World segment EBITDA was driven by good growth in the United States in the industrial segment in Waste and Water, in Latin America with the start of the Buenos Aires contract and continued good performance in China. 


  • Current EBIT increased 12.0% (+8.8% at constant exchange rates) from pro forma represented €354 million in the first quarter of 2014 to €397 million in the first quarter of 2015.
    • Current EBIT growth was driven by the increase in EBITDA, while depreciation and amortization expense remained stable at €330 million (vs. €326 million in the first quarter of 2014).


  • Current net income increased 88% from re-presented €113 million in the first quarter of 2014 to €212 million in the first quarter of 2015.
    • Current net income in the first quarter of 2015 includes €67 million in capital gains on financial divestments compared with €6 million in the first quarter of 2014.  Excluding capital gains, current net income would have increased 36%.  Current net income integrates the application of IFRIC 21 in the amount of -€43 million in the first quarter of 2015 compared with re-presented     -€45 million in the first quarter of 2014.


  • Net financial debt amounted to €8,970 million at March 31, 2015 versus €8,845 million at March 31, 2014.
    • Compared to the end of the first quarter 2014, net financial debt increased slightly due to a cumulative unfavorable exchange rate impact of nearly €1 billion since March 31, 2014 (-€574 million since December 31, 2014).
    • This week, S&P raised the outlook on Veolia’s debt from Negative to Stable, while confirming the Group’s A-2 and BBB debt ratings.


  • 2015 objectives are confirmed.  
    • Revenue growth
    • EBITDA and Current EBIT growth
      • Continued strong operational performance
      • Cost savings benefits: 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
[1] Pro forma figures exclude Dalkia France operations and include Dalkia International operations on a fully consolidated basis from the 1st of January 2014.

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
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Ronald Wasylec - Ariane de Lamaze 
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Terri Anne Powers (United States) 
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