Veolia Environnement : Consolidated financial statement on December 31st 2021

Consolidated financial

statements

Year ended December 31, 2021

Version under review by the Statutory Auditors

Table

of contents

CONSOLIDATED FINANCIAL STATEMENTS	3
Consolidated Statement of Financial Position	3
Consolidated Income Statement	5
Consolidated Statement of Comprehensive Income	6
Consolidated Cash Flow Statement	7
Statement of Changes in Equity	9
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS	12

FINANCIAL STATEMENTS

Consolidated financial statements

Consolidated financial statements

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

Consolidated Statement of Financial Position-Assets

		As of December
		31, 2020 As of December
(€ million)	Notes	re-presented (*)	31, 2021
Goodwill	Note 8.1	5,888.9	6,201.2
Concession intangible assets	Note 8.2.1	3,544.9	3,706.0
Other intangible assets	Note 8.2.2	1,371.3	1,328.6
Property, plant and equipment	Note 8.3	8,216.6	8,701.9
Right of use (net)	Note 8.4	1,529.5	1,562.4
Investments in joint ventures	Note 6.2.4	1,020.8	1,238.5
Investments in associates	Note 6.2.4	353.9	354.2
Non-consolidated investments (**)		3,102.2	3,770.3
Non-current operating financial assets	Note 6.4	1,198.1	1,191.4
Non-current derivative instruments - Assets	Note 9.3	53.4	88.5
Other non-current financial assets	Note 9.1.2	427.3	431.2
Deferred tax assets	Note 12.2	1,036.5	1,059.2
Non-current assets		27,743.6	29,633.4
Inventories and work-in-progress	Note 6.3	797.7	816.3
Operating receivables	Note 6.3	9,106.2	10,015.3
Current operating financial assets	Note 6.4	172.8	129.0
Other current financial assets	Note 9.1.2	1,073.2	1,521.0
Current derivative instruments - Assets	Note 9.3	174.8	344.9
Cash and cash equivalents	Note 9.1.3	5,840.0	10,518.7
Assets classified as held for sale	Note 4.3	455.7	98.7
Current assets		17,620.3	23,443.9
TOTAL ASSETS		45,363.9	53,077.3

1. Restatements concern the application of the IFRS Interpretations Committee's decision regarding IAS 19, retroactively from

January 1, 2020 (see Note 1.2)

1. Non-consolidatedinvestments consist of Suez shares for €3,721.0 million as of December 31, 2021, compared with €3,046.0 million as of December 31, 2020 (see Note 3) and other securities for €49.3 million as of December 31, 2021 compared with €56.2 million as of December 31, 2020.

The accompanying notes are an integral part of these consolidated financial statements.

CONSOLIDATED FINANCIAL STATEMENTS - DECEMBER 31, 2021/ VEOLIA ENVIRONNEMENT 3

FINANCIAL STATEMENTS

Consolidated financial statements

Consolidated Statement of Financial Position - Equity and Liabilities

		As of December
		31, 2020
		re-presented	As of December
(€ million)		(*)	31, 2021
Share capital	Note 10.2.1	2,893.1	3,498.6
Additional paid-in capital		7,291.8	9,309.5
Deeply-subordinated perpetual securities	Note 10.4	1,987.1	2,460.7
Reserves and retained earnings attributable to owners of
the Company	Note 10.2	(4,932.6)	(3,750.8)
Total equity attributable to owners of the
Company	Note 10.2	7,239.4	11,518.0
Total equity attributable to non-controlling interests	Note 10.3	1,099.3	1,252.0
Equity		8,338.7	12,770.0
Non-current provisions	Note 11	1,815.8	1,876.6
Non-current financial liabilities	Note 9.1.1	10,836.4	10,462.5
Non-current IFRS 16 lease debt	Note 9.1.1	1,296.8	1,298.1
Non-current derivative instruments - Liabilities	Note 9.3	65.5	68.8
Concession liabilities - non-current	Note 6.5	1,459.9	1,588.4
Deferred tax liabilities	Note 12.2	1,101.4	1,196.4
Non-current liabilities		16,575.6	16,490.8
Operating payables	Note 6.3	11,850.4	13,548.9
Concession liabilities - current	Note 6.5	145.6	169.4
Current provisions	Note 11	510.7	538.5
Current financial liabilities	Note 9.1.1	7,196.7	8,624.3
Current IFRS 16 lease debt	Note 9.1.1	402.9	410.6
Current derivative instruments - Liabilities	Note 9.3	117.9	261.5
Bank overdrafts and other cash position items	Note 9.1.3	217.6	241.9
Liabilities directly associated with assets classified as
held for sale	Note 4.3	7.8	21.4
Current liabilities		20,449.6	23,816.5
TOTAL EQUITY AND LIABILITIES		45,363.9	53,077.3

1. Restatements concern the application of the IFRS Interpretation Committee's decision regarding IAS 19, retroactively from January 1, 2020 (see Note 1.2).

The accompanying notes are an integral part of these consolidated financial statements.

4	VEOLIA ENVIRONNEMENT / CONSOLIDATED FINANCIAL STATEMENTS - DECEMBER 31, 2021

FINANCIAL STATEMENTS

Consolidated financial statements

CONSOLIDATED INCOME STATEMENT

		Year ended
		December 31,	Year ended
		2020	December 31,
(€ million)		re-presented	2021
Revenue	Note 6.1	26,009.9	28,508.1
Cost of sales	Note 6.2	(22,121.8)	(23,905.9)
Selling costs	Note 6.2	(562.1)	(584.0)
General and administrative expenses	Note 6.2	(2,144.0)	(2,308.6)
Other operating revenue and expenses	Note 6.2	(373.0)	(496.9)
Operating income before share of net income (loss)
of equity-accounted entities	Note 6.2	809.0	1,212.7
Share of net income (loss) of equity-accounted
entities		110.5	104.8
o/w share of net income (loss) of joint ventures	Note 6.2.4	87.4	74.0
o/w share of net income (loss) of associates	Note 6.2.4	23.1	30.8
Operating income after share of net income (loss) of
equity-accounted entities		919.5	1,317.5
Cost of net financial debt	Note 9.4.1	(414.4)	(342.6)
Other financial income and expenses	Note 9.4.2	(139.7)	(74.2)
Pre-tax net income (loss)		365.4	900.7
Income tax expense	Note 12.1	(137.0)	(345.8)
Net income (loss) from continuing operations		228.4	554.9
Net income (loss) from discontinued operations	Note 4.3.1	(19.9)	-
Net income (loss) for the year		208.5	554.9
Attributable to owners of the Company		88.8	404.3
Attributable to non-controlling interests	Note 10.3	119.7	150.6
(€)
NET INCOME (LOSS) ATTRIBUTABLE TO OWNERS OF
THE COMPANY PER SHARE	Note 10.5
Basic		0.16	0.68
Diluted		0.15	0.65
NET INCOME (LOSS) FROM CONTINUING
OPERATIONS ATTRIBUTABLE TO OWNERS OF THE
COMPANY PER SHARE	Note 10.5
Basic		0.20	0.68
Diluted		0.19	0.65
NET INCOME (LOSS) FROM DISCONTINUED
OPERATIONS ATTRIBUTABLE TO OWNERS OF THE
COMPANY PER SHARE	Note 10.5
Basic		(0.04)	-
Diluted		(0.04)	-

The accompanying notes are an integral part of these consolidated financial statements.

CONSOLIDATED FINANCIAL STATEMENTS - DECEMBER 31, 2021/ VEOLIA ENVIRONNEMENT 5