Veolia Environnement : URD 2021 - Financial report

UNIVERSAL REGISTRATION DOCUMENT 2021

ANNUAL FINANCIAL REPORT

MESSAGE FROM ANTOINE FRÉROT PROFILE

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ABOUT THE GROUP

• 1.1 History and general introduction

• 1.2 Strategy RFA

• 1.3 Business lines RFA

• 1.4 Research and Innovation

• 1.5 Organization of the Group and other information relating to its operations RFA

• 1.6 Environmental regulation

RISK FACTORS AND CONTROL

• 2.1 Risk management, internal control and internal audit

• 2.2 Risk factors

CORPORATE GOVERNANCE

• 3.1 Members of the Board of Directors

• 3.2 Activities of the Board of Directors and its Committees

• 3.3 Executive Management and the Executive Committee

• 3.4 Compensation and benefits

• 3.5 Corporate officer and executive share ownership

• 3.6 Statutory Auditors' special report on regulated agreements

CORPORATE SOCIAL

RESPONSIBILITY

• 4.1 Environmental, social and human resources performance commitments

• 4.2 Environmental performance

• 4.3 Social performance

• 4.4 Human resources performance: impact on employees

• 4.5 Taxonomy

• 4.6 Ethics and Compliance

• 4.7 Vigilance plan

• 4.8 Non-Financial Performance Statement Information Summary

• 4.9 Methodology

• 4.10 Report by one of the Statutory Auditors, appointed as independent third party on the consolidated non-financial statement

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OPERATING AND FINANCIAL REVIEW

• 5.1 Suez combination

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• 5.2 Major events of the period

• 5.3 Accounting and financial information

  14 17 23 38

• 5.4 Financing

• 5.5 Other items

• 5.6 Appendices

42 57

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FINANCIAL STATEMENTS

67

• 6.1 Consolidated financial statements RFA Notes to the Consolidated Financial Statements

• 6.2 Company financial statements RFA

  323

  324

  326

  331

  341

  346

  349

  353 354 362 468

  Notes to the Company financial statements 476

  69 77

• 6.3 Unaudited pro forma financial information 514

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106 119 137 139 188 191

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SHARE CAPITAL AND OWNERSHIP 533

7.1 Information on the share capital and stock

market data RFA 534

7.2 Veolia Environnement shareholders RFA 546

7.3 Dividend policy 548

ADDITIONAL INFORMATION 551

8.1 Main provisions pursuant to the law and the Articles of Association concerning

Veolia Environnement 552

8.2 Litigations and arbitrations 557

8.3 Change in control and major contracts RFA 559 8.4 Main financial flows between

195

Veolia Environnement and the main subsidiaries of the geographic structure

(Business Units) 559

198 207 245 264 291 298 309

8.5 Documents available to the public 560 8.6 Persons responsible for auditing

the financial statements 560

8.7 Financial information included by reference 561 8.8 Persons assuming responsibility for the Universal Registration Document

and the Annual Financial Report RFA 562

8.9 Cross-reference tables 563

8.10 Appendices 570

310 314

316

Information from the Annual Financial Report is clearly identified in the table of contents by the pictogram RFA

VEOLIA ENVIRONNEMENT

UNIVERSAL REGISTRATION

DOCUMENT

Annual Financial Report

2021

The Universal Registration Document was filed with the Autorité des Marchés Financiers (AMF, the French Financial Markets Authority) on April 21, 2022, in accordance with Regulation (EU) 2017/1129, without prior approval in accordance with Article 9 of this Regulation.

The Universal Registration Document may be used when securities are offered to the public or admitted to trading on a regulated market, if supplemented by a securities note and, where applicable, a summary and all amendments made to the Universal Registration Document. The resulting documents are approved as a whole by the AMF in accordance with Regulation (EU) 2017/1129.

This Document is a reproduction of the official version of the Universal Registration Document including the 2021 Annual Financial Report prepared in accordance with the European Single Electronic Format (ESEF) and filed with the AMF, available on the websites of the Company and the AMF.

GOOD PERFORMANCE CAN ONLY BE A MULTIFACETED PERFORMANCE, I.E. BENEFICIAL TO ALL ITS STAKEHOLDERS AND BALANCED IN ITS DIFFERENT ENVIRONMENTAL, ECONOMIC AND SOCIAL DIMENSIONS.

Antoine Frérot

Chairman and Chied Executive Officer

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VEOLIA ENVIRONNEMENT / 2021 UNIVERSAL REGISTRATION DOCUMENT

MESSAGE FROM ANTOINE FRÉROT

Chairman and Chief Executive Officer

Our world is at a historic juncture, as a major ecological transformation is underway. It aims to reduce the excesses for which man is both responsible and the victim. Excess withdrawals from nature, provoking scarcity; excess discharges into the environment, generating pollution.

Given the scale of the environmental challenges facing humanity, half-measures are no longer enough; we must move towards a rapid and radical transformation of our business models. So now is no longer the time for transition, but for a higher, more challenging, and more pressing ambition: ecological transformation. To make this transformation a reality everywhere, new technologies, new business models and new resources must be invented, and Veolia is working hard to do so.

But for our Group, this period is historic for another reason: the creation, through the merger with Suez, of an industrial tool which will structure our Company - and also the profession - for decades to come. The 230,000 employees that now make-up the Group, together with the substantially increased means of action, represent the finest knowledge base in the world, in one of the most important industries of the twenty-first century: ecological transformation.

This merger marks a major step in the life of our Company. A Company created in France more than 160 years ago to bring clean water to urban populations and protect them from the water-borne epidemics that ravaged cities. A Company whose scope of action quickly expanded to include other activities, other customer bases, other countries. A Company which is historically French and naturally European, with a global vocation.

True to this vocation, our Group continued to develop on all continents in 2021, strengthening its leadership. It was a year of sustained growth, during which it erased the crisis of 2020 and exceeded 2019 performance levels, even though 2019 was already a record year. In 2021, our Group strengthened its positions in the most buoyant markets, with offerings that provide increasing added value enabling them to attract numerous customers: in heating networks in Tashkent, Uzbekistan; in drinking water in Miyagi, Japan; in water supply and sanitation in Riyadh, Saudi Arabia and much more.

A COMPANY WHICH IS HISTORICALLY

FRENCH AND NATURALLY EUROPEAN, WITH A GLOBAL

VOCATION.

In 2022 and 2023, our Company will continue to follow its Impact 2023 strategic program, with its three core pillars. Firstly, by developing activities where our expertise sets us apart and is the most promising and beneficial for the planet, such as hazardous waste management, plastic recycling, organic waste material recovery, energy efficiency of buildings. Secondly, by reinventing our traditional businesses - municipal water, non-hazardous waste processing and managing heating and cooling networks - which still create a great deal of value for our stakeholders. Finally, by imagining innovative solutions to meet the needs of tomorrow, such as inthe electric vehicle battery circular economy, the vitrification of radioactive waste, indoor air quality and residual carbon capture.

In the face of the environmental tragedies which testify to how man can be both powerful and helpless before CO2 emissions - the greatest pollutant of the twenty-first century -, in the face of insistent calls for a greener, lower carbon and more socially-inclusive economy, Veolia is multiplying its actions to help its customers, and more generally all of its stakeholders, succeed in their own ecological transformation.

It is in this context that we have deployed the new performance system. For our Company, good performance can only be a multifaceted performance, i.e. beneficial to all its stakeholders and balanced in its different environmental, economic and social dimensions. This multi-faceted performance system fundamentally changes the way Veolia conducts its activities and assesses its impact.

An impact that will increase significantly with the Suez merger! By combining the strengths of our two groups, we will be able to better serve our customers, who need a partner with the scale and range of skills necessary to work on all aspects of their environmental impact. This merger positions our Company as the preferred choice of cities and industrial companies across all ecological transformation challenges, opening a new and promising chapter in Veolia's history. Over the past few years, our Group has accomplished great things; with this merger, it will accomplish even more!

VEOLIA ENVIRONNEMENT / 2021 UNIVERSAL REGISTRATION DOCUMENT

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