Veolia Environnement : Operating and financial review - Consolidated Financial Statements for the half year ended June 30, 2022

OPERATING AND FINANCIAL REVIEW

Consolidated Financial Statements for the half year

ended June 30, 2022

(Draft under review by the statutory auditors)

CONTENTS

1.		SUEZ INTEGRATION.................................................................................................................................................................	3
	1.1	Integration of the Suez scope.............................................................................................................................................	4
	1.2	Impact of the integration on the preparation of the H1 2022 financial statements.............................................................	5
2.	MAJOR EVENTS OF THE PERIOD...........................................................................................................................................	6
	2.1	Business and income trends ..............................................................................................................................................	7
	2.2	Impact of the Russian-Ukrainian conflict ............................................................................................................................	8
	2.3	Changes in Group structure - Strategic Program ..............................................................................................................	9
	2.4	Group Financing ...............................................................................................................................................................	11
	2.5	Free share and Performance share plans ........................................................................................................................	12
	2.6	Changes in governance....................................................................................................................................................	12
3.	ACCOUNTING AND FINANCIAL INFORMATION...................................................................................................................	15
	3.1.	Key figures ........................................................................................................................................................................	16
	3.2.	Group revenue..................................................................................................................................................................	17
	3.3	Group EBITDA..................................................................................................................................................................	23
	3.4	Other income statement items..........................................................................................................................................	25
4.		FINANCING ..............................................................................................................................................................................	30
	4.1	Change in Free Cash Flow and Net Financial Debt .........................................................................................................	31
	4.2	Industrial and financial investments..................................................................................................................................	33
	4.3	Operating working capital .................................................................................................................................................	34
	4.4	External Financing ............................................................................................................................................................	34
5.		OTHER ITEMS .........................................................................................................................................................................	36
	5.1		Related-party transactions ...............................................................................................................................................	37
	5.2		Subsequent events ...........................................................................................................................................................	37
	5.3	Risk factors .......................................................................................................................................................................	37
	5.4	Outlook..............................................................................................................................................................................	37
6.		APPENDICES...........................................................................................................................................................................	38
	6.1	Combined data for the half year ended June 30, 2021 ....................................................................................................	39
	6.2	Reconciliation of 2021 published data by operating segment with IFRS 8 re-presented data.........................................	39
	6.3	Reconciliation of GAAP indicators and the indicators used by the Group .......................................................................	40
	6.4	Definitions .........................................................................................................................................................................	41

• VEOLIA ENVIRONNEMENT / OPERATING AND FINANCIAL REVIEW FOR THE HALF YEAR ENDED JUNE 30, 2022

VEOLIA ENVIRONNEMENT

OPERATING AND FINANCIAL REVIEW

Consolidated Financial Statements for the half year ended June 30, 2022

2022

VEOLIA ENVIRONNEMENT / OPERATING AND FINANCIAL REVIEW FOR THE HALF YEAR ENDED JUNE 30, 2022 1

Message from the Chief Executive Officer

Estelle Brachlianoff, Chief Executive Officer of the Group, said: « Veolia's performance during the first half of the year was once again very good. Q2 activity was on a very similar trajectory as in the first quarter. The integration of Suez's activities since mid-January was very successful. Their contribution in terms of revenue and synergies is up to our expectations, which confirms the merits of this acquisition. These very good results also benefited from the continued strict cost discipline which allowed us to fully confirm our 2022 objectives.

Veolia, world leader in ecological transformation, continues to fully benefit from good trends in its markets thanks to its value-added offerings, perfectly adapted to the environmental challenges of our clients. The resilience, the adaptability and the relevance of our strategic positioning allow us to face the uncertain macroeconomic and geopolitical context with confidence.»

• VEOLIA ENVIRONNEMENT / OPERATING AND FINANCIAL REVIEW FOR THE HALF YEAR ENDED JUNE 30, 2022

1

1. SUEZ INTEGRATION

VEOLIA ENVIRONNEMENT / OPERATING AND FINANCIAL REVIEW FOR THE HALF YEAR ENDED JUNE 30, 2022 3