VEOLIA ENVIRONNEMENT 
Q1, 2024 RESULTS
May 14, 2024
Estelle Brachlianoff, CEO
Claude Laruelle, CFO
AGENDA
- Q1, 2024 highlights
- Detailed Q1, 2024 financial performance
- Appendices
Estelle Brachlianoff
CEO
Strong Q1 results fully confirm our 2024 guidance
Revenue
€11 556M
+3.9%(2) excl. energy prices
EBITDA
€1 624M
+5.7%(2)
Current EBIT
€843M
+11.1%(2)
Fully confirmed 2024
guidance
- Solid organic revenue growth(1)
- +5% to +6% EBITDA organic growth (2)
- Current Net income > €1.5bn(3)
- Leverage ratio < 3.0x (3)
- at constant scope and forex and excluding energy prices
- at constant scope and forex
(3) before PPA | 4 |
Overperformance in Water and Waste, organic growth above 5%
Energy growth lowered by energy prices, essentially pass through for Veolia
Water Revenue of € 4.3bn + 6.5%(1)
Revenue €11 556M
+3.9%(1) | Waste Revenue €3.7bn +5.5%(1) |
excl. energy prices |
Energy revenue €3.5bn stable excl. energy prices(1)
Or up 1.1% excluding weather impact
Energy revenue impacted by lower energy price as anticipated but EBITDA protected given unique positioning
(1) at constant scope and forex | 5 |
Veolia value creation : profitable long term growth
Solid Fundamentals, Selective Growth & Performance Improvement
Growth | Performance | Capital Allocation |
Green Up 24-27
value creation objectives
-
Strongholds
Water operations, District heating & cooling Networks, Solid waste
Infrastructure-like essential services with high visibility
Customer retention >90% and NPS 53 - Boosters
Water tech, Bioenergies, Flexibility
- Energy Efficiency, Hazardous waste
Mid to high single digit growth
Strong demand & barrier to entry
- Operational Excellence
- Cost efficiencies
€350M/year
including exiting low margin contracts
- Cost synergies of Suez merger
€500M cumulated 2022-25
- Capex in new high value creating projects: new hazardous waste treatment capacity, expansion in water tech & mobile units
- Acquisitions: accretive tuck-ins
- Disposals: either non strategic or mature assets
- Strict investment discipline targeting high quality projects complying with strict criteria in order to grow ROCE and FCF
- IRR > WACC+4%
- ROCE > WACC from year 3
Solid organic growth (1)
EBITDA ≥ €8bn in 2027
~10% CAGR current net income 2024-2027
Dividend to grow in line with EPS
Leverage ≤ 3X
(1) excluding energy price impact
6
Growth
Strong revenue growth in Q1
Boosted by Water technologies & sustained strong foundations
Solid revenue growth in Q1
Revenue of €11,556M
+3.9%(1) excl. energy prices
Strongholds activities
(Water operations, District heating & cooling networks, Solid waste)
Very solid performance : continued contract indexation and pricing strategy, high contract renewal, despite negative weather impact on district heating (-1%)
Boosters
(Water technologies, Bioenergy, Flexibility & Energy Efficiency, Hazardous waste)
High quality of execution and bookings on Water technologies up +50%
Geographies
France performance improving
Solid growth above 6% in Australia, USA, Middle East
(1) at constant scope and forex | 8 |
"Strongholds" activities in Q1 performed well
Excellent contract renewal, good commercial momentum & continued pricing and indexation
Water operations
€3.2bn revenues in Q1 2024
District Heating
and Cooling Networks €2.3bn revenues in Q1 2024
Solid Waste
€2.7bn revenues in Q1 2024
New SEDIF contract signed in Q1
€4bn water contract renewed with The Greater Paris Water Authority - 12 years
Decarbonization in Eastern Europe
Ongoing Capex in Czech Republic and Poland with good IRR. Next commissioning expected: Poznan (Poland) and Frydek Mistek (CR) in 2025
New PET recycling facility in Japan
25kt capacity plant / -27.5KT of CO2 erased in partnership with Mitsui & Co.,Ltd. and Japanese leading retail Co. Seven & i
9
Example with SEDIF contract renewal
-
€4bn water contract with
the Greater Paris Water Authority (SEDIF) - 4 million residents in 132 municipalities
- 12 years from 2025-2036
- Innovation at the heart
- 150 innovations including 10 worldwide first
- micropollutants treated (PFAS, pesticide residues etc)
- patented technology incl. unique membrane filtration combining nanofiltration and reverse osmosis ReversoⓇ
- AI & digital to improve operational performance and customer satisfaction
- specific initiatives to help deprived communities
10
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Veolia Environnement SA published this content on 14 May 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 14 May 2024 06:33:09 UTC.
