Veolia Environnement : Résultats semestriels 2023 - Présentation

H1 2023 RESULTS

Estelle Brachlianoff, CEO Claude Laruelle, CFO

August 3rd, 2023

AGENDA

• H1, 2023 highlights

• Detailed H1, 2023 financial and operational performance

• Appendices

H1 2023

2

KEY H1 2023 HIGHLIGHTS

A very strong 1st half

Very strong H1 results

Revenue €22 755M up +14.2%(1)

EBITDA €3 162M, up +8.2%(1)

Current EBIT(2) €1 674M, up +13.3%(1)

Current net income(2) €662M, up +18.7%(2)

Very strong FCF improvement and Net Debt well under control

Successful merger with Suez

Already €230m cumulated synergies, ahead of our objective of more than €280M end-2023and a total of €500M cumulative

Sustained efficiency gains

€187M, ahead of annual target of €350M

Confirmation of the strength of our business model, coping with higher inflation, resilient to macro context, and strong operating leverage

A powerful growth platform

Significant & innovative new contracts in H1

The reference ESG company

Acceleration of decarbonization capex in H1:

⅓ of coal exit program already delivered

2023 guidance fully confirmed

	(1)	at constant scope and forex
H1 2023	(2)	at constant forex	3

A STRONG 1ST HALF AT THE HIGH END OF THE YEAR'S OBJECTIVE

Q2 operational trends all in line with Q1

In €M	H1 2022	Scope	Forex	H1 2023	Var. vs. H1
2022(1)
Revenue	20 196	-20	-293	22 755	+14.2%
EBITDA	2 953	-12	-21	3 162	+8.2%
Current EBIT(2)	1 515	-32	-11	1 674	+13.3%
Current Net Income(2)	550	nd	+9	662	+18.7%(3)

Comments

• Revenue of €22 755M , up +14.2%(1) vs. June 2022, +5.2% excluding energy prices : continued strong growth in all businesses
• • Water +8.4%(1), driven by tariffs and volumes and by good commercial momentum despite lower volumes in France due to weather and Water Technologies project completion
  • Continued solid growth of Waste activities, up +3.3%(1) and +6.4% excluding recyclate prices: resilient volume/commerce, price increases
  • Very strong growth of Energy activities +41.3%(1) , driven mostly by energy prices
• EBITDA of €3 162M up +8.2%(1) vs. June 2022, above the annual guidance range of +5% to +7%
• • Strong commercial momentum and operational excellence in all 3 activities
  • Continued cost discipline and accelerated synergies of €84M in H1 and €230M cumulated in advance of annual target
• Current EBIT(2) of €1 674M, up +13.3%(1) vs. June 2022, driven by EBITDA growth and operating leverage
• Current Net income(2) of €662M, +18.7% at constant forex vs. June 2022, in line with annual guidance of €1.3bn
• Net FCF improvement of -€78Mvs. -€304Min H1 2022 thanks to strict discipline on working capital and lower integration and restructuring charges
• Net financial debt of €19.2bn

(1) At constant scope and exchange rates

H1 2023(2) Excluding PPA4

(3) At constant forex

VERY STRONG PROFITS GROWTH DESPITE UNCERTAIN ENVIRONMENT Thanks to strong foundations and powerful growth engine

H1 results at the high end of our annual guidance, despite softening economic conditions and continued flat waste volumes, thanks to:

A balanced geographical mix, 40% outside Europe : very strong performance in the US, Latam and Eastern Europe more than offsets softer delivery in France

Strong positions in key activities & countries : #1 wwide in Hazardous Waste, #1 wwide in Water Technologies, in the top 3 in all geographies incl. US

A well-balancedand resilient set of business, 85% macro immune, fully protected against inflation

Strong commercial momentum in all ou activities thanks to perfect positioning on fast growing markets to address ecological transformation challenges

Delivery track record, operational excellence and benefits of the merger with Suez

1. Sustained delivery of efficiency gains quarter after quarter for years
2. Synergies ahead of schedule and very positive momentum

H1 2023	5