Veolia Environnement : Consolidated financial statements as of June 30th 2022

Consolidated financial

statements June 30, 2022

Project under review by the Statutory Auditors

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

FINANCIAL STATEMENTS

Consolidated financial statements

Consolidated financial statements

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

Consolidated Statement of Financial Position-Assets

		As of December	As of
(€ million)	Notes	31, 2021	June 30, 2022
Goodwill	Note 7.1	6,201.2	13,701.3
Concession intangible assets	Note 7.2.1	3,706.0	5,427.0
Other intangible assets	Note 7.2.2	1,328.6	2,323.7
Property, plant and equipment	Note 7.3	8,701.9	15,898.3
Right of use (net)	Note 7.4	1,562.4	2,098.8
Investments in joint ventures	Note 6.2.1	1,238.5	1,241.9
Investments in associates	Note 6.2.1	354.2	690.6
Non-consolidated investments (*)		3,770.3	89.8
Non-current operating financial assets	Note 6.4	1,191.4	1,216.5
Non-current derivative instruments - Assets	Note 8.2	88.5	276.9
Other non-current financial assets	Note 8.1.3	431.2	616.5
Deferred tax assets	Note 11.1	1,059.2	1,852.0
Non-current assets		29,633.4	45,433.3
Inventories and work-in-progress	Note 6.3	816.3	1,440.3
Operating receivables	Note 6.3	10,015.3	13,825.8
Current operating financial assets	Note 6.4	129.0	239.0
Other current financial assets	Note 8.1.3	1,521.0	2,511.8
Current derivative instruments - Assets	Note 8.2	344.9	579.0
Cash and cash equivalents	Note 8.1.4	10,518.7	7,174.9
Assets classified as held for sale	Note 4.2	98.7	984.1
Current assets		23,443.9	26,754.8
TOTAL ASSETS		53,077.3	72,188.2

1. As of December 31, 2021, non-consolidated investments consist of Suez shares for €3,721.0 million and other securities for €49.3 million.

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

CONSOLIDATED FINANCIAL STATEMENTS - JUNE 30, 2022/ VEOLIA ENVIRONNEMENT 3

FINANCIAL STATEMENTS

Consolidated financial statements

Consolidated Statement of Financial Position - Equity and Liabilities

		As of
		December 31,	As of June 30,
(€ million)		2021	2022
Share capital	Note 9.1.1	3,498.6	3,502.9
Additional paid-in capital		9,309.5	9,305.2
Deeply subordinated perpetual securities		2,460.7	3,506.6
Reserves and retained earnings attributable to
owners of the Company	Note 9.1	(3,750.8)	(4,072.1)
Total equity attributable to owners of the
Company	Note 9.1	11,518.0	12,242.6
Total equity attributable to non-controlling interests	Note 9.2	1,252.0	2,976.0
Shareholders' equity		12,770.0	15,218.6
Non-current provisions	Note 10	1,876.6	2,361.6
Non-current financial liabilities	Note 8.1.1	10,462.5	21,219.8
Non-current IFRS 16 lease debt	Note 8.1.2	1,298.1	1,760.7
Non-current derivative instruments - Liabilities	Note 8.2	68.8	598.1
Concession liabilities - non-current	Note 6.5	1,588.4	1,582.0
Deferred tax liabilities	Note 11.1	1,196.4	2,331.8
Non-current liabilities		16,490.8	29,854.0
Operating payables	Note 6.3	13,548.9	17,804.7
Concession liabilities - current	Note 6.5	169.4	193.6
Current provisions	Note 10	538.5	814.5
Current financial liabilities	Note 8.1.1	8,624.3	6,711.8
Current IFRS 16 lease debt	Note 8.1.2	410.6	528.4
Current derivative instruments - Liabilities	Note 8.2	261.5	492.3
Bank overdrafts and other cash position items	Note 8.1.4	241.9	439.6
Liabilities directly associated with assets classified
as held for sale	Note 4.2	21.4	130.7
Current liabilities		23,816.5	27,115.6
TOTAL EQUITY AND LIABILITIES		53,077.3	72,188.2

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

4	VEOLIA ENVIRONNEMENT / CONSOLIDATED FINANCIAL STATEMENTS - JUNE 30, 2022

FINANCIAL STATEMENTS

Consolidated financial statements

CONSOLIDATED INCOME STATEMENT

		Half year	Half year
		ended June	ended June
(€ million)		30, 2021	30, 2022
Revenue	Note 6.1	13,645.1	20,195.6
Cost of sales	Note 6.2	(11,374.3)	(16,765.7)
Selling costs	Note 6.2	(279.0)	(463.1)
General and administrative expenses	Note 6.2	(1,136.4)	(1,511.7)
Other operating revenue and expenses	Note 6.2	(164.0)	(330.2)
Operating income before share of net income (loss) of
equity-accounted entities	Note 6.2	691.4	1,124.9
Share of net income (loss) of equity-accounted entities		48.4	59.3
o/w share of net income (loss) of joint ventures	Note 6.2.1	33.0	29.3
o/w share of net income (loss) of associates	Note 6.2.1	15.4	30.0
Operating income after share of net income (loss) of
equity-accounted entities		739.8	1,184.2
Cost of net financial debt	Note 8.3.1	(152.4)	(319.6)
Other financial income and expenses	Note 8.3.2	31.2	(231.6)
Pre-tax net income (loss)		618.6	633.0
Income tax expense	Note 11.1	(218.0)	(233.8)
Share of net income (loss) of other equity-accounted entities		-	-
Net income (loss) from continuing operations		400.6	399.2
Net income (loss) from discontinued operations	Note 4.2.1	(4.6)	(2.0)
Net income (loss) for the period		396.0	397.2
Attributable to owners of the Company		300.5	236.0
Attributable to non-controlling interests	Note 9.2	95.5	161.2
NET INCOME (LOSS) ATTRIBUTABLE TO OWNERS OF
THE COMPANY PER SHARE (in euros)	Note 9.5
Basic		0.53	0.34
Diluted		0.51	0.33
NET INCOME (LOSS) FROM CONTINUING OPERATIONS
ATTRIBUTABLE TO OWNERS OF THE COMPANY PER
SHARE (in euros)	Note 9.5
Basic		0.54	0.35
Diluted		0.52	0.34
NET INCOME (LOSS) FROM DISCONTINUED
OPERATIONS ATTRIBUTABLE TO OWNERS OF THE
COMPANY PER SHARE (in euros)	Note 9.5
Basic		(0.01)	-
Diluted		(0.01)	-

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

CONSOLIDATED FINANCIAL STATEMENTS - JUNE 30, 2022/ VEOLIA ENVIRONNEMENT 5