CURRENT NET INCOME MORE THAN DOUBLED TO €321 MILLION
2015 OBJECTIVES FULLY CONFIRMED
- REVENUE UP 7.3%2
(+3.3%2 AT CONSTANT FX) TO €12,318
MILLION
- EBITDA UP 16.5%2
(+12.3%2 AT CONSTANT FX) TO €1,531 MILLION DUE TO
CONTINUED COST SAVINGS (€110 MILLION)
- CURRENT EBIT GREW 36.7%2
(+30.4%2 AT CONSTANT FX) TO €712 MILLION
- CURRENT NET INCOME INCREASED
110%3 TO €321 MILLION
- NET FREE CASH FLOW EXCLUDING WORKING
CAPITAL SEASONALITY OF €552 MILLION
- NET FINANCIAL DEBT DOWN €477 MILLION
EXCLUDING CURRENCY EFFECTS VERSUS JUNE END 2014
ON DECEMBER 14, THE GROUP WILL HOLD AN INVESTOR DAY TO
PRESENT ITS 2016-2018 STRATEGIC PLAN.
Regulatory News:
Veolia Environnement (Paris:VIE):
Antoine Frérot, Veolia Environnement’s Chairman and Chief
Executive Officer commented: “During the first half of 2015,
Veolia has once again demonstrated its ability to significantly
improve results. All of our financial indicators have increased,
leading to a significant increase in margins. During the first half
of 2015 alone, Veolia achieved 110% growth in current net income,
which is equal to that of the entire 2014 fiscal year. As a result,
our 2015 objectives are fully confirmed. Our strategy of restoring
margins, balance sheet equilibrium and strong free cash flow
generation allows us to approach the next stages of our development
for the 2016-2018 period with great confidence.”
- Revenue increased 7.3% (+3.3% at
constant exchange rates) to €12,318 million, compared to
re-presented 11,482 million for the first half of 2014.On a
pro forma basis4, revenue increased 2.6% (-1.3% at
constant consolidated scope and exchange rates) compared to €12,010
million for the first half of 2014.
The favorable impact of exchange rates contributed €499 million
(+4.2% growth) to first half 2015 revenue. Lower energy and
recycled raw material prices weighed on revenue in the amount of
€114 million (-1% impact on revenue).
Year-over-year trends in the second quarter in all segments
improved compared to the first quarter trend, with the exception of
the Global Businesses segment, which was negatively impacted by
delays in certain projects.
- In France, revenue declined 2.6% at constant consolidation
scope (but -1.6% in Q2 vs. -3.6% in Q1). Water was penalized by
large contract renewals (-€70 million), partially offset by the
impact of higher volumes sold (+0.4%) and moderate tariff
indexation (+0.4%). The Waste business improved, with 3.8% growth
in Q2 versus a decline of 1.4% in Q1, due to contract wins, a 4.0%
increase in volumes in Q2 (vs. +1.1% in Q1) and a less unfavorable
impact of recycled raw material prices.
- Europe excluding France revenue was +0.6% (-2.3% at constant
consolidation scope and exchange rates), with quasi stable
performance in Q2 after a Q1 that declined 3.5%. Germany revenue
declined due to the impact of lower energy prices and continued
commercial portfolio restructuring in the Waste business. The UK
benefited from a favorable revenue mix, with an increase in treated
volumes and lower PFI construction revenue (-€52 million) at weak
margins. Central and Eastern European revenue increased 1.6% at
constant consolidation scope and exchange rates, with higher
average prices in Water (+1.9%), and more favorable weather in Q2
in the Energy business.
- The Rest of the World segment continues to post good growth, up
14.3% (+3.4% at constant consolidation scope and exchange rates),
with +4.5% growth in Q2, following +2.4% in Q1 driven by good
performance in Asia (China and Japan), and in Latin America, which
offset the decline in revenue in the United States associated with
lower energy prices.
- Global Businesses revenue declined 3.3% at constant
consolidation scope and exchange rates, with stability in Hazardous
Waste (impact of lower oil prices) and a reduction in construction
activity.
- By business and at constant consolidation scope and exchange
rates, Water (-1.7%) was stable in Operations activities, but down
in engineering and construction due to project delays. Waste
revenue declined moderately (-0.8%), with volumes up 0.8%. Energy
rebounded in Q2 (+3.7% after -4.4% in Q1 driven by the decline in
energy prices).
- EBITDA increased 10.6% (+6.0% at
constant consolidation scope and exchange rates) to €1,531
million compared with re-presented pro forma €1,384 million in the
first half of 2014.
- Currency movements had a favorable
impact on EBITDA growth of 4.6% (+€64 million). Lower recycled raw
material prices impacted EBITDA by -€12 million.
- At constant consolidation scope and
exchange rates, EBITDA mainly increased due to the benefit of
further cost savings (+€110 million contribution during the first
half of 2015), higher volumes (net impact of +€11 million) and an
overall favorable pricing impact (+€10 million). Contract
renegotiations in French Water penalized EBITDA by €50
million.
- By segment: In France in the Water
business, cost reductions, along with a slight increase in volumes
sold (+0.4%) compensated for the impact of contract renewals at the
EBITDA level. In Waste, EBITDA improved 3.6% at constant
consolidation scope due to good activity in Q2, as well as cost
savings and a slight favorable impact related to fuel. In the Rest
of Europe segment, EBITDA grew 9.1% at constant consolidation scope
and exchange rates. In the UK, EBITDA benefitted from good treated
volumes. In Germany, EBITDA was stable due to good execution of
restructuring, while Central and Eastern Europe EBITDA posted
strong growth of 11.8% at constant consolidation scope and exchange
rates. EBITDA in the Rest of the World segment also grew
significantly (+7.5% at constant consolidation scope and exchange
rates), with in particular the United States growing 12.7%, Latin
America +15.5% given a good start to the Buenos Aires contract, and
very good performance in China (+34.6%). EBITDA in the Global
Businesses segment was negatively impacted by the decline in oil
prices and difficulties in the SADE business relative to a contract
in Peru.
- Current EBIT posted a significant
increase of 35.2% (+24.6% at constant consolidation scope and
exchange rates) to €712 million versus pro forma €527 million in
the first half of 2014.
- Current EBIT benefited from a favorable
currency effect of €39 million.
- Excluding currency movements, the
significant increase in Current EBIT was driven by the strong
growth in EBITDA. Depreciation and amortization expense was stable
at €687 million (vs. pro forma €691 million in the first half of
2014). The contribution of the share of current net income of joint
ventures and associates increased 12% to €53 million.
- Current Net Income – Group share
more than doubled to €321 million compared with re-presented pro
forma €153 million in the first half of 2014
- Current net income growth was driven by
strong growth in Current EBIT.
- Net financial costs continued to
improve on a pro forma basis (reduction of €10 million, including
the impact of €8 million related to unfavorable exchange rate
movements).
- The re-presented tax rate was 30% given
an increase in profits in countries with low tax rates (Poland and
the Czech Republic).
- Non-controlling interests increased to
€82 million versus pro forma €61 million due to improved results in
the Poland Energy business.
- Current net income, Group share
includes capital gains on financial divestitures of €63 million,
slightly more than €48 million in the first half of 2014.
- Net income, Group share amounted to
€353 million versus pro forma €127 million in the first half of H1
2014 (+178%), including a +€25 million contribution from
Transdev.
- Net financial debt amounted to
€9,223 million at June 30, 2015, compared to €8,936 million at June
30, 2014.
- Net financial debt increased due to a
cumulative unfavorable foreign currency movement of €764 million
since June 30, 2014 (-€492 million since December 31, 2014).
Excluding the currency impact, net financial debt would have
declined by €477 million.
- Excluding working capital
seasonality, first half net Free Cash Flow was €552 million
- Net Free Cash Flow generated during the
first half of 2015 improved €93 million to -€76 million compared
with pro forma -€169 million in the first half of 2014 due to the
strong growth and EBITDA and good capex discipline (€565 million
versus pro forma €592 million in the first half of 2014).
- 2015 objectives fully confirmed.
- Revenue growth
- EBITDA and Current EBIT growth
- Continued strong operational
performance
- Cost savings benefit : continued
execution of the €750 million cost savings plan
- Continued capex discipline
- The dividend and hybrid coupon payment
to be covered by Current Net Income and paid by Free Cash Flow
excluding net financial divestments
- Net financial debt under control
*********
- Investor Day now set for December
14, 2015
- Veolia will present its strategic plan
for 2016-2018 during an Investor Day scheduled for December 14,
2015.
**********
Definitions of all key financial indicators mentioned can be
found at the end of this press release.
**********
Veolia group is the global leader in optimized resource
management. With over 179,000 employees* worldwide, the Group
designs and provides water, waste and energy management solutions
that contribute to the sustainable development of communities and
industries. Through its three complementary business activities,
Veolia helps to develop access to resources, preserve available
resources, and to replenish them. In 2014, the group Veolia
supplied 96 million people with drinking water and 60 million
people with wastewater service, produced 52 million megawatt hours
of energy and converted 31 million metric tons of waste into new
materials and energy. Veolia Environnement (listed on Paris
Euronext: VIE) recorded consolidated revenue of €24.4 billion* in
2014. www.veolia.com
(*) 2014 pro-forma figures including Dalkia International (100%)
and excluding Dalkia France
Important disclaimer
Veolia Environnement is a corporation listed on the Euronext
Paris. This press release contains “forward-looking statements”
within the meaning of the provisions of the U.S. Private Securities
Litigation Reform Act of 1995. Such forward-looking statements are
not guarantees of future performance. Actual results may differ
materially from the forward-looking statements as a result of a
number of risks and uncertainties, many of which are outside our
control, including but not limited to: the risk of suffering
reduced profits or losses as a result of intense competition, the
risk that changes in energy prices and taxes may reduce Veolia
Environnement’s profits, the risk that governmental authorities
could terminate or modify some of Veolia Environnement’s contracts,
the risk that acquisitions may not provide the benefits that Veolia
Environnement hopes to achieve, the risks related to customary
provisions of divesture transactions, the risk that Veolia
Environnement’s compliance with environmental laws may become more
costly in the future, the risk that currency exchange rate
fluctuations may negatively affect Veolia Environnement’s financial
results and the price of its shares, the risk that Veolia
Environnement may incur environmental liability in connection with
its past, present and future operations, as well as the other risks
described in the documents Veolia Environnement has filed with the
Autorités des Marchés Financiers (French securities regulator).
Veolia Environnement does not undertake, nor does it have, any
obligation to provide updates or to revise any forward looking
statements. Investors and security holders may obtain from Veolia
Environnement a free copy of documents it filed (www.veolia.com)
with the Autorités des Marchés Financiers.
This document contains "non‐GAAP financial
measures". These "non‐GAAP financial measures" might be defined
differently from similar financial measures made public by other
groups and should not replace GAAP financial measures prepared
pursuant to IFRS standards.FINANCIAL INFORMATION FOR THE HALF
YEAR ENDED JUNE 30, 2015
In this press release, the Group refers to two comparative
scopes related to the unwinding of the Dalkia joint venture. At
June 30, 2014, Dalkia France was still fully consolidated and
Dalkia International was equity-accounted. Two comparative scopes
are presented throughout this document: one referred to as “GAAP”,
with Dalkia France fully consolidated and Dalkia International
equity-accounted, and the other referred to as “pro forma”, with
Dalkia International fully consolidated and excluding Dalkia
France.
A] INCOME STATEMENT
1. Revenue
1.1 Revenue by segment
Revenue (€ million)
Half-year ended June 30,
2015 Half-year ended June 30, 2014 pro forma
2015/2014 variation Internal growth External growth
Foreign exchange impact
France 2,694.6
2,760.2 -2.4% -2.6% +0.2% -
Europe
excluding France 4,305.5 4,278.0 +0.6%
-2.3% +0.1% +2.8%
Rest of the world
2,956.6 2,587.6 +14.3% +3.4%
-0.5% +11.4%
Global Businesses 2,296.2
2,288.0 +0.4% -3.3% - +3.7%
Other 64.7 95.8 -32.5% -1.6%
-31.1% +0.2%
Group 12,317.6
12,009.6 +2.6% -1.3%
-0.3% +4.2%
The Y-Y trend in the second quarter of 2015 was marked by more
favorable momentum, in all segments, with the exception of the
Global Businesses segment due to the impact of delayed projects in
the VWT business and the impact of the decline in oil prices:
REVENUE 1ST QUARTER
2ND QUARTER PRO FORMA VARIATIONS
Δ AT CONSTANT SCOPE & FX Δ AT CONSTANT SCOPE
& FX FRANCE -3.6% -1.6%
EUROPE, EXCLUDING FRANCE -3.5%
-0.7% REST OF THE WORLD +2.4%
+4.5% GLOBAL BUSINESS +2.1%
-7.9% GROUP -1.4% -1.2%
Revenue in the France segment for the half-year ended June 30,
2015 decreased 2.4% (-2.6% at constant consolidation scope) to
€2,694.6 million compared with pro forma figures for the half-year
ended June 30, 2014. At constant consolidation scope, second
quarter revenue decreased 1.6% vs -3.6% in the first quarter of
2015.
- Revenue in the Water business declined
5.8% at both current and constant consolidation scopes compared
with pro forma figures for the half-year ended June 30, 2014. The
tariff indexation increases (around +0.4% versus +1.2% last year)
combined with the rise in volumes sold (+0.4%) was not sufficient
to offset the impacts of contractual erosion and the reduced
construction activity due to shrinkage in the public works
market.
- Revenue in the Waste business improved
by 1.2% at constant consolidation scope (1.7% at current
consolidation scope). Waste revenue increased in the second quarter
of 2015 (+3.8% compared with a decline of 1.4% in the first quarter
of 2015) due to contract wins, a better mix effect and a lower
unfavorable impact of recycled raw material prices.
- Europe,
excluding France
Revenue in the Europe excluding France segment for the half-year
ended June 30, 2015 increased 0.6% at current consolidation scope
and exchange rates (-2.3% at constant consolidation scope and
exchange rates) to €4,305.5 million compared with pro forma figures
for the half-year ended June 30, 2014. Revenue was quasi stable in
the second quarter of 2015, compared with -3.5% at constant
consolidation scope and exchange rates in the first quarter of
2015.
This variation mainly concerns:
- Central European countries, whose
revenue increased (1.6% at constant consolidation scope and
exchange rates), due to tariff increases in Water (+1.9% on
average), particularly in Poland and the Czech Republic, and in the
second quarter, more favorable weather, particularly in the Czech
Republic and Poland;
- the United Kingdom and Ireland, whose
combined revenue declined 2.9% at constant consolidation scope and
exchange rates, given the decline in construction revenue from PFI
contracts, and despite an increase in landfill volumes.
- Germany, where the decline in revenue
(-8.8% at constant consolidation scope and exchange rates) was
attributable to:
- the decline in gas and electricity
volumes sold and falling energy prices in the Energy business;
- the continued restructuring of the
commercial portfolio in the Waste business.
- In other European countries, revenue at
constant consolidation scope and exchange rates increased, driven
by business growth particularly in the Netherlands and Iberia. It
benefited from sustained growth in Spain (+12.3% at current and
constant consolidation scope and exchange rates) following the
signature of several energy efficiency contracts, a solid start to
the year in terms of sales for Installation and Services activities
and growth in Construction activity.
- Rest of the
World
Revenue in the Rest of the World segment for the half-year ended
June 30, 2015 increased 14.3% (+3.4% at constant consolidation
scope and exchange rates) to €2,956.6 million compared with pro
forma figures for the half-year ended June 30, 2014. In the second
quarter of 2015, revenue increased 4.5% at constant consolidation
scope and exchange rates versus 2.4% growth in the first quarter of
2015.
Revenue in the Rest of the World segment reflects solid growth
in the following regions:
- in Latin America, (+15.8% at current
consolidation scope and exchange rates, +16.4% at constant
consolidation scope and exchange rates), in particular, in
Argentina (Buenos Aires contract) and Ecuador;
- Revenue in Asia improved in all
geographies, with the exception of Korea due to the end of an
industrial contract. In China, revenue increased 45.3% at current
consolidation scope and exchange rates (+22.3% at constant
consolidation scope and exchange rates), primarily due to an
increase in landfill volumes and the construction of hazardous
waste incinerators in the Waste business, and the increase in steam
volumes sold in the Energy business. The industrial Water market in
China benefited from new contract wins;
This substantial growth was mitigated by a decline in revenue in
the United States by -7.6% at constant consolidation scope and
exchange rates (+14.6% at current consolidation scope and exchange
rates), primarily due to the lower price of energy sold in the main
facilities, partially offset by the rise in volumes sold in the
Energy business.
Revenue in the Global Businesses segment for the first half of
2015 remained stable at €2,296.2 million, up 0.4% at current
consolidation scope and exchange rates (-3.3% at constant
consolidation scope and exchange rates), compared with pro forma
figures for the half-year ended June 30, 2014. In the second
quarter of 2015, revenue declined 7.9% at constant consolidation
scope and exchange rates versus +2.1% in the first quarter of
2015.
This variation was due to:
- project delays in the VWT business.
Backlog amounted to €2.4 billion, stable compared to December 31,
2014;
- the negative impact of the decline in
oil prices.
1.2 Revenue by business
Revenue (€ million)
Half-year ended June 30,
2015 Half-year ended June 30, 2014 pro forma
2015/2014 variation Internal growth External growth
Foreign exchange impact
Water 5,462.7
5,382.7 +1.5% -1.7% -0.3% +3.5%
Waste 4,307.7 4,169.4 +3.3%
-0.8% -1.1% +5.2%
Energy 2,547.2
2,457.5 +3.7% -1.2% +1.1% +3.8%
Group 12,317.6 12,009.6
+2.6% -1.3% -0.3%
+4.2%
The quarterly variation of revenue by business compared to pro
forma figures:
REVENUE 1ST QUARTER
2ND QUARTER PRO FORMA VARIATIONS
Δ AT CONSTANT SCOPE & FX Δ AT CONSTANT SCOPE
& FX WATER -0.1% -3.3%
WASTE -0.8% -0.7% ENERGY
-4.4% +3.7% GROUP
-1.4% -1.2%
Revenue in the Water business increased by 1.5% (-1.7% at
constant consolidation scope and exchange rates) compared with pro
forma figures for the half-year ended June 30, 2014.
This decline was due to a combination of several factors:
- Stability in the Operations business,
marked by contractual erosion in France, which was offset by tariff
increases, particularly in certain Central and Eastern European
countries; and
- The decline in Construction activity,
with delays in industrial projects at VWT, despite an improvement
in backlog since April 2015, and good momentum of industrial
solutions in Asia and the Middle East.
- Waste
Revenue in the Waste business increased 3.3% (down slightly by
-0.8% at constant consolidation scope and exchange rates) compared
with pro forma figures for the half-year ended June 30, 2014. The
first half of 2015 was encouraging and the second quarter continued
in the same manner as Q1.
This variation reflects:
- Good resilience in France and the
United Kingdom;
- Good landfill volumes and the continued
construction of hazardous waste incinerators in China;
- An increase in volumes of +0.8% and
higher services prices of +0.4%;
- The decline in PFI construction revenue
in the United Kingdom;
- The decline in recycled raw material
prices (mainly paper).
- Energy
Revenue in the Energy business decreased by -1.2% at constant
consolidation scope and exchange rates compared with pro forma
figures for the half-year ended June 30, 2014, of which -3.3%
related to lower energy prices and are partially offset by 0.7%
favorable weather effect. In the second quarter of 2015, revenue
increased 3.7% at constant consolidation scope and exchange rates
versus -4.4% in the first quarter of 2015.
The second quarter of 2015 recorded a net improvement in revenue
due to a more favorable weather impact and commercial development,
reduced by the unfavorable impact of the price of energy sold in
North America.
2. Other income statement items
As of the second half of 2014, and in connection with the
reorganization and takeover of Dalkia International, the Group
decided to review and standardize its chargeback policy for
centralized corporate costs to subsidiaries in France and outside
of France on a retroactive basis as of January 1, 2014. These
impacts are neutral across the Group financial indicators presented
below. In order to make operational performance comparable, they
were neutralized on the comparative period of June 30, 2014 in the
analysis by segment of EBITDA and Current EBIT.
2.1 EBITDA
Changes in EBITDA by segment were
as follows:
(€ million)
Half-year ended June 30, 2015 Half-year ended
June 30, 2014 pro forma Half-year ended June 30, 2014 GAAP Pro
forma 2015 / 2014 variation Pro forma 2015 / 2014 variation
at constant scope & exchange rates
France 395.5 395.1 401.7 +0.1% +0.1% Europe, excluding France 610.3
543.9 299.5 +12.2% +9.1% Rest of the world 406.1 333.7 312.3 +21.7%
+7.5% Global businesses 84.5 92.7 91.4 -8.8% -12.9% Other (*) 34.7
18.9 209.4 - -
EBITDA 1,531.1 1,384.3
1,314.3 +10.6% +6.0% EBITDA margin
12.4% 11.5% 11.4%
* The Other segment in the half-year ended June 30, 2014 GAAP
scope essentially comprises the activities of Dalkia in France up
to the date of unwinding on July 25, 2014.
2.2 Current EBIT
Changes in current EBIT by segment
were as follows:
(€ million)
Half-year ended June 30, 2015
Half-year ended June 30, 2014 pro forma Half-year ended June
30, 2014 GAAP Pro forma 2015 / 2014 variation Pro
forma 2015 / 2014 variation
at constant scope & exchange rates
France 107.0 78.2 77.9 +36.9%
+36.6% Europe, excluding France 340.0 236.4 114.3 +43.8% +31.2%
Rest of the world 216.1 161.9 151.7 +33.5% +15.6% Global businesses
33.1 43.5 43.3 -23.9% -29.0% Other (*) 15.9 6.6
133.6 - -
Current EBIT
712.1 526.6 520.8
+35.2% +24.6%
* The Other segment in the half-year ended June 30, 2014 GAAP
scope essentially comprises the activities of Dalkia in France up
to the date of unwinding on July 25, 2014.
The reconciling items between EBITDA and Current EBIT for the
half-year ended June 30, 2015 and 2014 are as follows:
(€ million)
Half-year ended June 30, 2015
Half-year ended June 30, 2014 pro forma Half-year ended June
30, 2014 GAAP
EBITDA 1,531.1
1,384.3 1,314.3 Renewal expenses
(141.1) (124.9) (180.3) Repayment of operating
financial assets (OFAs) (82.3) (70.4) (88.5) Net depreciation and
amortization (686.4) (690.7) (571.2) Share of current net income
from joint ventures and associates 52.8 47.2 69.1 Provisions, fair
value adjustments & other 38.0 (18.9) (22.6) Current impairment
of property, plant and equipment, intangible assets and operating
financial assets 4.0 (41.2) (37.6) Gains or losses on industrial
divestitures 9.8 1.7 3.7 Net charges to operating provisions, fair
value adjustments and other 24.2 20.6 11.3
Current EBIT 712.1 526.6
520.8
Net depreciation and amortization
charges declined nearly 4% at constant exchange rates over the
period (versus June 30, 2014 pro forma).
The share of current net income from joint
ventures and associates was derived from the Chinese
entities in the Water and Waste businesses in the amount of €19
million, versus €14 million for the half-year ended June 30, 2014,
and UK entities (Water and Waste) in the amount of €9 million (€3
million for the half-year ended June 30, 2014). For the half-year
ended June 30, 2014 on a GAAP basis, this line item also included
the results of Israel activities sold on March 30, 2015, as well as
income from Dalkia International.
The current impairment of property, plant
and equipment, intangible assets and operating financial
assets in GAAP and pro forma figures for the half-year ended
June 30, 2014 was related to Waste activities in process of
divestiture in Poland. For the half-year ended June 30, 2015, this
line item does not warrant any specific comments.
Gains or losses on industrial
divestitures for the half-year ended June 30, 2015 mainly
involved transactions carried out by Water France and the sale of a
site in Germany.
Net charges to operating provisions
for the half-year ended June 30, 2015 included a provision reversal
for the “Olivet” contracts in the Water activities in France. For
the half-year ended June 30, 2014, they included an exceptional
reversal of the pension provision recognized by VE S.A. for senior
executives in the amount of €15 million.
2.3 Analysis by segment of EBITDA and Current EBIT
(€ million)
Half-year ended June 30, 2015
Half-year ended June 30, 2014 pro forma Half-year ended June
30, 2014 GAAP Pro forma
Variation
Pro forma Variation at constant scope & exchange rates
EBITDA 395.5 395.1 401.7 +0.1%
+0.1% EBITDA margin 14.7% 14.3% 14.5%
Current EBIT 107.0 78.2
77.9 +36.9% +36.6%
EBITDA in the France segment was relatively stable during the
period.
EBITDA in the Water business was quasi stable despite the impact
of contractual erosion of -€50 million (loss of Nice and Rennes
contracts, and renewal of the Lyon contract) due to the favorable
impact of cost cutting plans. At the end of June 2015, the
voluntary departure plan in French Water was finalized, and is in
line with objectives, with 783 departures overall and a reduction
in employees by 12% since 2012.
In the Waste business, EBITDA improved in line with revenue
growth, the contribution of cost saving plans, the decrease in fuel
prices and the favorable impact of a litigation payment, partially
offset by the impact of lower landfill volumes.
Current EBIT in France increased strongly due to the stability
of EBITDA and depreciation and amortization, and the reversal of
provisions for “Olivet” contractual risks following ongoing
negotiations and discussions.
(€ million)
Half-year ended June 30, 2015
Half-year ended June 30, 2014 pro forma Half-year ended June
30, 2014 GAAP Pro forma
Variation
Pro forma Variation at constant scope & exchange rates
EBITDA 610.3 543.9 299.5 +12.2%
+9.1% EBITDA margin 14.2% 12.7% 12.3%
Current EBIT 340.0 236.4
114.3 +43.8% +31.2%
The EBITDA of the Europe, excluding France segment increased
significantly in most countries, particularly:
- in the United Kingdom, with good
volumes in the Waste business;
- and in Central Europe: EBITDA growth
was particularly marked in Poland, the Czech Republic, Romania,
Lithuania and Hungary. This improvement was attributable to the
positive price impacts on purchased energy and the price increases
in the Water business, the successful integration of Dalkia’s
international activities, and the positive contribution from cost
savings plans, with more favorable weather conditions in the second
quarter.
The Current EBIT of the Europe, excluding France segment
improved, in line with EBITDA growth and the positive variation in
operating provisions due to the asset write downs recognized in
2014 in Waste activities in Poland (divested January 30, 2015). Net
depreciation and amortization remained stable during the
period.
(€ million)
Half-year ended June 30, 2015 Half-year ended
June 30, 2014 pro forma Half-year ended June 30, 2014 GAAP Pro
forma
Variation
Pro forma Variation at constant scope & exchange rates EBITDA
406.1 333.7 312.3 +21.7% +7.5% EBITDA margin 13.7% 12.9% 12.9%
Current EBIT 216.1 161.9 151.7 +33.5% +15.6%
The substantial increase in EBITDA and current EBIT in the Rest
of the world segment mainly involved:
- The United States, in line with the
benefit of cost cutting plans, the favorable volume impacts on
industrial, municipal & commercial contracts, as well as the
solid performance of the Energy business;
- Latin America, due to the solid
operating performance, particularly in Argentina (Buenos Aires
contract win and impact on prices);
- China, which benefited from the ramp-up
in Energy activities (favorable impacts on steam volumes sold
relating to the development of a larger service area, and favorable
coal purchase prices), the development of industrial contracts in
the Water business, and the positive contribution from cost savings
plans.
- Global
Businesses
(€ million)
Half-year ended June 30, 2015
Half-year ended June 30, 2014 pro forma Half-year ended June
30, 2014 GAAP Pro forma
Variation
Pro forma Variation at constant scope & exchange rates
EBITDA 84.5 92.7 91.4 -8.8%
-12.9% EBITDA margin 3.7% 4.1% 4.1%
Current EBIT 33.1 43.5
43.3 -23.9% -29.0%
The EBITDA and current EBIT of Global businesses were impacted
by the following items:
- In Hazardous Waste, profits were
hindered by the fall in oil prices;
- Construction activities (VWT and SADE)
were also hindered by the contraction in activity from public
markets in France and difficulties at certain international sites
(notably in Peru).
2.4 Net finance costs
(€ million)
Half-year ended June 30, 2015
Half-year ended June 30, 2014 GAAP re-presented
Net
finance costs (230.8) (234.8) Gains
(losses) on disposals of financial assets 65.6 52.9
Costs of financial divestitures (2.6) (9.4) Net gains / losses on
loans and receivables 9.6 40.8 Net income (loss) on
available-for-sale assets 1.8 2.1 Assets and liabilities at fair
value through the consolidated income statement 0.2 (0.1) Unwinding
of the discount on provisions (22.0) (23.6) Foreign exchange gains
and losses 4.0 0.1 Other (9.8) (3.4)
Other
financial income and expenses 46.8
59.6
Net finance costs totaled €230.8 million for the half-year ended
June 30, 2015, versus GAAP €234.8 million and pro forma €240.7
million for the half-year ended June 30, 2014. Net finance costs
were down €10 million despite the negative foreign exchange impact
of €8 million. The reduction in net finance costs reflects the
Group’s efforts to manage debt.
For the half-year ended June 30, 2014, on a GAAP basis, other
financial income and expenses included €35.6 million in income from
loans to Dalkia International, which is now fully consolidated.
For the half-year ended June 30, 2015, disposal gains or losses
included the capital gain on the disposal of the Group’s Israel
activities for €43.6 million.
As a reminder, for the half-year ended June 30, 2014, disposal
gains or losses included the capital gain on the sale of Marius
Pedersen for €48.9 million.
2.5 Income Tax Expense
The income tax expense for the half-year ended June 30, 2015
amounted to -€124.2 million, compared with -€101.0 million on a
GAAP basis for the half-year ended June 30, 2014.
The re-presented tax rate declined from a year ago, and amounted
to 30% after adjustment for non-recurring items within net income
of entities fully controlled by the Group, the share of income of
equity-accounted entities, and the impact of financial
divestitures.
In €M H1 2015 Current income before
tax (a) 528 Of which share of net income of Joint
Ventures & Associates (b) 53 Of which capital gains or losses
on financial divestitures (c ) 66
Re-presented current income
before tax: a-b-c=d 410 Tax expense -124
Adjustment to tax expense 1
Tax expense on current income (e
) -125 Of which tax expense on divestitures (f) -2
Re-presented tax expense: e-f=g -123
Re-presented tax rate on current income: -(g)/(d)
30.0%
This decline is due mainly to the increase in pre-tax results of
the French tax group, still loss-making from a tax standpoint (with
no impact on tax expense taking into account that losses are not
recognized within the French tax group) as well as by the full
consolidation of international activities in the Energy business in
2015 (impact mainly related to entities based in Central Europe
where corporate tax rates are lower than that of the Group as a
whole).
2.6 Net income (loss) of other equity-accounted
entities
Net income of other equity-accounted entities (Transdev Group)
totaled €25.5 million for the half-year ended June 30, 2015,
compared with pro forma €4.4 million for the half-year ended June
30, 2014.
2.7 Net income (loss) attributable to non-controlling
interests
The net loss attributable to non-controlling interests was €82.0
million for the half-year ended June 30, 2015, compared with €55.8
million for the half-year ended June 30, 2014.
This variation is related to the impact of the unwinding of the
Dalkia joint venture in 2014, as well as the improvement in Energy
profits in Poland.
2.8 Net income (loss) attributable to owners of the
company
Net income attributable to owners of the Company was €352.7
million for the half-year ended June 30, 2015, compared with GAAP
€131.1 million for the half-year ended June 30, 2014. Current net
income attributable to owners of the Company was €321.2 million for
the half-year ended June 30, 2015, compared with GAAP €178.0
million for the half-year ended June 30, 2014.
Given the weighted average number of outstanding shares totaling
548.5 million for the half-year ended June 30, 2015 (basic and
diluted) and 536.2 million for the half-year ended June 30, 2014
(basic and diluted), earnings per share attributable to owners of
the Company (basic and diluted) amounted to €0.51 for the half-year
ended June 30, 2015, compared with GAAP €0.12 for the half-year
ended June 30, 2014. Current net income per share attributable to
owners of the Company (basic and diluted) was €0.59 for the
half-year ended June 30, 2015, compared with GAAP €0.33 for the
half-year ended June 30, 2014.
Net income (loss) for the half-year ended June 30, 2015 breaks
down as follows:
For the half-year ended June 30, 2015 (€ million)
Current Non-recurring Total EBIT * 712.1
5.3 717.4 Net finance costs (230.8) - (230.8) Other
financial income and expenses 46.8 - 46.8
Pre-tax income 528.1 5.3
533.4 Income tax expense (124.9) 0.7 (124.2) Net income
(loss) of other equity-accounted entities - 25.5 25.5 Net income
(loss) of discontinued operations - - - Non-controlling interests
(82.0) - (82.0)
Net income (loss)
attributable to owners of the company 321.2
31.5 352.7
* Non-recurring EBIT items are presented in the appendix of the
press release, in paragraph 2 “Reconciliation of prior and new
financial indicators used by the Group”
For the half-year ended June 30, 2014 on a GAAP basis, net
income breaks down as follows:
For the half-year ended June 30, 2014 GAAP (€
million) Current Non-recurring Total EBIT *
520.8 (39.0) 481.8 Net finance costs (234.8) -
(234.8) Other financial income and expenses 59.6 -
59,6
Pre-tax income 345.6
(39.0) 306.6 Income tax expense (101.4) 0.4
(101.0) Net income (loss) of other equity-accounted entities - 4.4
4.4 Net income (loss) of discontinued operations - (23.1) (23.1)
Non-controlling interests (66.2) 10.4 (55.8)
Net income (loss) attributable to owners of the company
178.0 (46.9) 131.1
* Non-recurring EBIT items are presented in the appendix of the
press release, in paragraph 2 “Reconciliation of prior and new
financial indicators used by the Group”
B] FINANCING
1. Changes in net free cash flow
(€ million)
Half-year ended June 30, 2015
Half-year ended June 30, 2014
GAAP (*)
Half-year ended June 30, 2014 Pro forma EBITDA
1,531 1,314 1,384 Net
industrial investments (521) (529) (562)
Change in operating WCR (628) (586) (595)
Dividends received from equity-accounted entities and joint
ventures 54 49 54 Renewal expenses
(141) (180) (125) Restructuring charges (52)
(25) (25) Financial items (current cash financial
expense, and operating cash flow from financing activities)
(199) (160) (202) Taxes paid (120) (82)
(98)
Net free cash flow before dividend payment,
financial investments and financial divestitures
(76) (199) (169) Dividends paid
(558) (314) Net financial investments
169 144 Change in receivables and other
financial assets 34 (29) VE capital
increase (excluding per share dividend distribution) -
- Issue / repayment of deeply subordinated
securities - - Operating cash flow of
discontinued operations - -
Free
cash flow (431) (398)
Effect of foreign exchange rate movements and other (481)
(94)
Change (912)
(492) Net financial debt at the beginning of
the period 8,311 (8,444)
Net
financial debt at the end of the period (9,223)
(8,936)
(*): including fully consolidated Dalkia France and
equity-accounted Dalkia International in the first half of 2014
Net free cash flow for the half-year ended June 30, 2015 was
-€76 million, compared with a GAAP figure of -€199 million for the
half-year ended June 30, 2014.
The improvement in net free cash flow compared with the GAAP
figure for the half-year ended June 30, 2014 mainly reflects the
improvement in EBITDA, good industrial capex discipline, and
despite a slight degradation in the change in working capital
requirements for operations related to seasonality.
2. Industrial investments
Industrial investments, excluding discontinued operations, break
down by segment as follows:
In €MH1 2015 Maintenance New
OFA Growth Total gross industrial
investments Industrial divestitures
Total net industrial investments
France 61 - 65
126 (15)
111 Europe
excluding France 137 32 90
259 (22)
237 Rest of World
56 13 53
122 (3)
119 Global Businesses 32 3 8
43 (3)
40 Other 10 2 3
15 (1)
14 TOTAL
296 50 219 565
(44) 521 In €MH1 2014
GAAP Maintenance New OFA
Growth Total gross industrial investments
Industrial divestitures Total net
industrial investments
France 67 6 49 122 (9)
113 Europe excluding France 40
33 133 206 (13)
193 Rest of World 36 12 54 102 (2)
100 Global Businesses 29 0 6 35 (3)
32 Other
24 12 56 92 (1)
91
TOTAL 196 63 298
557 (28) 529 In
€MH1 2014 Pro forma Maintenance
New OFA Growth Total gross
industrial investments Industrial divestitures
Total net industrial investments
France 67 6 49 122 (9)
113 Europe
excluding France 88 49 161 298 (13)
285 Rest of World 37 12
66 115 (2)
113 Global Businesses 29 0 6 35 (4)
31
Other 13 0 9 22 (2)
20 TOTAL 234 67
291 592 (30) 562
At constant exchange rates, gross industrial investments are
down €50 million compared to pro forma figures for the half-year
ended June 30, 2014
3. Financial investments and divestitures
Financial investments and divestitures for the half-years ended
June 30, 2015 and June 30, 2014 break down as follows:
In € millions
H1 2015 H1 2014 GAAP
Financial investments (142)
(129) Purchase of minorities in Water in Central &
Eastern Europe (86) (91) Acquisition of Kendall in
the United States (cogeneration) (19)
Acquisition of Altergis in France (21) Others
(35) (19)
Financial divestitures including divestment expenses
311 273 Divestiture of Marius Pedersen
240 Divestiture of the Group’s activities in Israel
232 Divestiture of stake in Singapore in
Energy 47 Other 32 33
Net financial investments
169 144
4. External financing
4.1 Net financial debt and adjusted net financial
debt
(€ million)
Half-year ended June 30, 2015
Year ended December 31, 2014 Non-current borrowings
7,803.7 8,324.5 Current borrowings 2,914.8 3,003.1
Bank overdrafts and other cash position items 246.9
216.4
Sub-total borrowings 10,965.4
11,544.0 Cash and cash equivalents (1,732.9) (3,148.6) Fair
value gains (losses) on hedge derivatives (9.9)
(84.3)
Net financial debt 9,222.6
8,311.1 Loans to equity-accounted entities 585.1
619.3
Adjusted net financial debt (1)
8,637.5 7,691.8
(1) See Appendix 3 for the definition
Loans granted to equity-accounted entities mainly comprised the
loans to Transdev Group for €405.4 million for the half-year ended
June 30, 2015.
At June 30, 2015, net financial debt after hedging is borrowed
at 72% fixed rates and 28% variable rates.
The average maturity of net financial debt was 8.2 years at June
30, 2015 compared with 9.0 years at the end of December 2014.
4.2 Group liquidity position
Liquid assets of the Group as of June 30, 2015 break down as
follows:
(€ million)
As of June 30, 2015 As of
December 31, 2014 Veolia Environnement: Undrawn
syndicated loan facility 2,962.5 2,962.5 Undrawn MT bilateral
credit lines 400.0 350.0 Undrawn ST bilateral credit lines 500.0
625.0 Letter of credit facility 195.9 190.7 Cash and cash
equivalents 918.0 2,302.0 Subsidiaries: Cash and cash
equivalents 814.9 846.6
Total liquid assets
5,791.3 7,276.8 Current debts and
bank overdrafts and other cash position items
Current debt 2,914.8 3,003.1 Bank
overdrafts and other cash position items 246.9 216.4
Total current debt and bank overdrafts and other cash position
items 3,161.7 3,219.5 Total
liquid assets net of current debt and bank overdrafts and other
cash position items 2,629.6 4,057.3
The decrease in liquid assets was mainly due to the redemption
of the inflation-indexed bond in June 2015 for a nominal amount of
€1.0 billion.
Veolia Environnement may draw on the multi-currency syndicated
credit facility and all credit lines at any time.
Undrawn medium-term syndicated loan
facilities
The two syndicated loan facilities comprising a €2.5 billion
multi-currency credit facility and a €0.5 billion credit facility
available for drawdown in Polish zloty, Czech crown and Hungarian
forint were not drawn as of June 30, 2015.
Letter of credit facility:
In the first half of 2015, Veolia Environnement reduced the US
dollar letter of credit facility signed on November 22, 2010 by USD
150 million.
As of June 30, 2015, the facility was drawn USD 130.8 million in
the form of letters of credit. The portion that may be drawn in
cash is USD 219.2 million (€195.9 million euro equivalent). It is
undrawn and recorded in the liquidity table above.
4.3 Bank covenants
Based on due diligence performed within its subsidiaries, the
Company considers that the covenants included in the material
financing agreements were satisfied (or had been waived by lenders)
as of June 30, 2015.
APPENDICES
1. Reconciliation of previously published and re-presented
data for the half-year ended June 30, 2014
1.1. Main “GAAP” re-presented figures for the half-year
ended June 30, 2014 (1)
In €M – Figures presented under
published scope (2)
H1 2014
published
IFRS 5 adjustment (3) IFRIC 21 adjustment
(4) H1 2014
Re-presented
Revenue 11,231.5
+250.9 -
11,482.4 Adjusted operating cash flow
1,008.7 +38.1 -35.2 1,011.6
Adjusted operating income (5) 564.3
+21.8 -35.2 550.9 Net income – Group
share 151.1 +9.7 -29.7 131.1
Adjusted net income – Group share 187.5
+6.7 -29.7 164.5 Gross industrial
investments 579 - -
579 Free
cash flow -163 -36 - -199
Net financial debt 8,646 +291 -
8,936 EBITDA N/A
N/A N/A 1,314.3 Current EBIT N/A
N/A N/A 520.8 Current net income – Group
share N/A N/A N/A 178.0
(1) Non-audited figures
(2) Published scope: including fully consolidated Dalkia France
and equity-accounted Dalkia International in the first half of
2014
(3) Reclassification of Morocco Water operations to continuing
operations
(4) See Appendix 1.3.
(5) Including the share of adjusted net income (loss) of joint
ventures and associates for the half-year ended June 30, 2014
1.2. Main “Pro forma” re-presented
figures for the half-year ended June 30, 2014
(1)
In €M – Figures presented under pro forma scope (2)
H1 2014
published
IFRS 5 adjustment (3) IFRIC 21 &
other adjustments (4) H1 2014
Re-presented
Revenue 11,764.1
+250.9 -5.4 12,009.6
Adjusted operating cash flow 1,153.2
+38.1 -30.6 1,160.7 Adjusted
operating income(5) N/A N/A
N/A 561.0 Net income – Group
share N/A N/A N/A
126.9 Adjusted net income – Group share
N/A N/A N/A 139.7
Gross industrial investments 592
- - 592 EBITDA N/A
N/A N/A 1,384.3
Current EBIT N/A N/A N/A 526.6
Current net income – Group share N/A N/A
N/A 153.2
(1) Non-audited figures
(2) Pro forma scope : excluding Dalkia France and Dalkia
International fully consolidated in the first half of 2014
(3) Reclassification of Morocco Water operations to continuing
operations
(4) See Appendix 1.3.
(5) Including the re-presented share of adjusted net income
(loss) of joint ventures and associates for the half-year ended
June 30, 2014
1.3. IFRIC 21 Taxes
- An interpretation that clarifies the
accounting for taxes, duties and other levies falling within the
scope of IAS 37 Provisions, Contingent Liabilities and Contingent
Assets, and which are specifically excluded from the scope of IAS
12 Income Taxes.
- A recognition of the obligation now
associated with the obligating event, which requires payment of the
tax by the company.
- The timing of recognition of a
liability for the tax or levy is determined using the exact wording
of the law governing the collection.
- The entire tax liability shall be
recognized when the obligating event giving rise to the tax as
defined by the law occurs. Thus, if a tax is payable when an entity
operates a business as of January 1, Y, the liability representing
the tax for the year in its entirety must be recorded on such
date.
■Thus, for the majority of impacted taxes considered as
“operating income”:
Before application of IFRIC 21: evenly expensed over 12
months
After application of IFRIC 21: full amount recorded at the time
of the obligating event giving rise to the tax
-- A mandatory retrospective application to January 1, 2015 for
both interim and annual financial statements.
-- The impact of the application of IFRIC 21 essentially lies in
a different allocation of the expense at interim closings.
Accordingly, the annual consolidated financial statements will not
be significantly impacted by the application of this
interpretation.
IFRIC 21 impacts (€ million)
Half-year ended June 30, 2015 Half-year ended June
30, 2014 GAAP Half-year ended June 30, 2014 Pro forma EBITDA
(29.0) (35.2) (28.9) Current EBIT
(29.0) (35.2) (28.9) Current net income (26.8)
(31.2) (27.1)
2. Reconciliation of prior and new financial indicators used
by the Group
The reconciliation of operating cash flow before changes in
working capital and adjusted operating cash flow with the new
financial indicator EBITDA is as follows:
(€ million)
Half-year ended June 30, 2015
Half-year ended June 30, 2014 Pro forma Half-year
ended June 30, 2014 GAAP
Operating cash flow before changes in
working capital 1,256.2 1,164.7
1,054.3
- Operating cash flow from financing activities
3.3 4.0 42.8
- Adjusted operating cash flow
1,252.9 1,160.7 1,011.6
Exclusion: Renewal expenses
+141.1 +124.9 +180.3 Restructuring charges (1)
Share acquisition and disposal costs
+52.2
+2.6
+24.6
+3.8
+24.6
+9.4
Inclusion: Repayments of operating financial
assets +82.3 +70.4 +88.5
EBITDA 1,531.1 1,384.3
1,314.3
(1) Cash restructuring charges for the half-year ended June 30,
2015 primarily related to the French Water voluntary departure
program in the amount of €36.4 million. For the half-year ended
June 30, 2014, they concerned the head office voluntary departure
plan in the amount of €22 million.
The reconciliation of adjusted operating income with current
EBIT is as follows:
(€ million)
Half-year ended June 30, 2015
Half-year ended June 30, 2014 Pro forma Half-year ended June
30, 2014 GAAP
Adjusted operating income 772.7
561.0 550.9
Exclusion
- Capital gains on financial divestitures (*)
(65.6) (51.7) (53.0)
+2.4 - -
- Impairment of property, plant and equipment, intangible assets
and operating financial assets
- +13.5 +13.5
- Share acquisition and disposal costs
+2.6 +3.8 +9.4
- -
Current EBIT
712.1 526.6 520.8
(*) Excluding disposal costs
In addition, the reconciliation of Current EBIT with Operating
Income is as follows:
(€ million)
H1 2015 H1 2014 Pro forma
H1 2014 GAAP
Current EBIT 712.1
526.6 520,8 Impairment losses on goodwill and
negative goodwill 0.1 - (1,5) Restructuring
charges 7.6 (24.0) (24.0) Employee costs – share-based payments
(2.4) - - Non-current impairment of property, plant and equipment,
intangible assets and operating financial assets - (13.5) (13.5)
Share acquisition costs, with or without takeover - -
-
Operating income after share of net income of
equity-accounted entities
717.4 489.1
481.8
3. Definitions
Net finance costs represent the
cost of gross debt, including related gains and losses on interest
rate and currency hedges, less income on cash and cash
equivalents.
- Non-GAAP
indicators
- The term
“internal growth” (or “growth at constant consolidation scope and
exchange rates”) includes growth resulting from:
- the expansion of an existing contract,
primarily resulting from an increase in prices and/or volumes
distributed or processed,
- new contracts, and,
- the acquisition of operating assets
allocated to a particular contract or project.
- The term
“external growth” includes growth through acquisitions
(performed in the period or which had only partial effect in the
prior period), net of divestitures, of entities and/or assets
deployed in different markets and/or containing a portfolio of more
than one contract.
- The term “change
at constant exchange rates” represents the change resulting
from the application of exchange rates of the prior period to the
current period, all other things being equal.
- Net financial
debt (NFD) represents gross financial debt (non-current
borrowings, current borrowings, bank overdrafts and other cash
position items), net of cash and cash equivalents and excluding
fair value adjustments to derivatives hedging debt.
- Internal financing granted to joint
ventures are not deducted from the net financial debt. The
non-eliminated internal financing are recorded in the balance sheet
as loans and financial receivables. To the extent that these loans
and receivables are not considered in the definition of the Group
as Cash and Cash equivalents and that these partnerships no longer
generate strictly operational cash flows in the consolidated
financial statements, the Group now uses in addition to the
indicator net financial debt, the notion of adjusted net financial debt. The adjusted net
financial debt also corresponds to the net financial debt minus
loans and receivables granted to joint ventures.
- Net free cash
flow corresponds to free cash flow from continuing
operations, i.e. the sum of EBITDA, dividends received, operating
cash flow, and changes in operating working capital, less net
industrial investments, current cash financial expense, cash taxes
paid, restructuring charges, acquisition and disposal costs and
renewal expenses.
New indicators used by the Group as
from the 1st quarter of 2015:
- EBITDA,
which replaces Adjusted operating cash flow, will comprise the sum
of all operating income and expenses received and paid (excluding
restructuring costs, renewal expenses and share acquisition and
disposal costs) and principal payments on operating financial
assets.
- Current
EBIT replaces Adjusted Operating Income. To calculate
Current EBIT, the following items will be deducted from operating
income:
- Goodwill impairments of fully
controlled subsidiaries and equity-accounted entities,
- Restructuring charges,
- Capital gains on financial divestments,
which will now be considered as an item within net finance
costs,
- One-time and/or significant impairment
of non-current assets (PP&E, intangible assets and operating
financial assets),
- Impacts relating to the application of
IFRS 2 Share-based payment,
- Share acquisition and disposal
costs.
- Current Net
Income, which will replace Adjusted Net Income, will
comprise the sum of the following items:
- Current EBIT,
- Current net finance cost items,
- Other current financial income and
expenses, including capital gains or losses on financial
divestitures (of which gains or losses included in the share of net
income of equity-accounted entities),
- Current tax items, and
- Minority interests (excluding the
portion of minority interests relative to non-current items in the
income statement).
Former indicators used by the Group until
December 31, 2014:
- Adjusted
operating cash flow includes operating income and expenses
received and paid (“cash”).
- Adjusted
operating income is equal to operating income after the
share of adjusted net income (loss) of equity-accounted entities,
adjusted to exclude the impact of goodwill impairment, negative
goodwill recognized in net income and certain special items.
Special items are items that are not expected to recur each year
and that substantially change the economics of one or more
cash-generating units.
CONSOLIDATED INCOME
STATEMENT
(€ million)
Half-year ended June 30, 2015
Half-year ended June 30, 2014 Represented(1)
Revenue 12,317.6 11,482.4 o/w
Revenue from operating financial assets 84.1 87.8 Cost of sales
(10,167.8) (9,589.8) Selling costs (276.5) (258.2) General and
administrative expenses (1,218.0) (1,145.1) Other operating revenue
and expenses 9.3 (76.6)
Operating income before
share of net income (loss) of equity-accounted entities
664.6 412.7 Share of net income (loss) of
equity-accounted entities 52.8 69.1
o/w share of net income (loss) of joint ventures 39.7 56.2 o/w
share of net income (loss) of associates 13.1 12.9
Operating income after share of net income (loss) of
equity-accounted entities 717.4
481.8 Net finance costs (230.8) (234.8) Other financial
income and expenses 46.8 59.6
Pre-tax net income
(loss) 533.4 306.6 Income tax
expense (124.2) (101.0) Share of net income (loss) of other
equity-accounted entities 25.5 4.4
Net income
(loss) from continuing operations 434.7
210.0 Net income (loss) from discontinued operations
- (23.1)
Net income (loss) for the period
434.7 186.9 Attributable to owners of the
Company 352.7 131.1 Attributable to
non-controlling interests 82.0 55.8 (in euros)
NET INCOME (LOSS) ATTRIBUTABLE TO OWNERS OF
THE COMPANY PER SHARE (2) Diluted 0.51 0.12 Basic 0.51
0.12
NET INCOME (LOSS) FROM CONTINUING OPERATIONS
ATTRIBUTABLE TO OWNERS OF THE COMPANY PER SHARE (2) Diluted
0.51 0.14 Basic 0.51 0.14
NET INCOME (LOSS) FROM
DISCONTINUED OPERATIONS ATTRIBUTABLE TO OWNERS OF THE COMPANY PER
SHARE (2) Diluted - (0.02) Basic - (0.02)
(1) Pursuant to IFRS 5, Non-Current Assets Held for Sale and
Discontinued Operations, the contribution of Water activities in
Morocco is no longer recognized in Assets classified as held for
sale and Liabilities directly associated with assets classified as
held for sale. Comparative figures for fiscal year 2014 have been
reclassified accordingly.
Furthermore, IFRIC 21 is applicable on a retrospective basis on
first-time application and the consolidated financial statements
for the half-year ended June 30, 2014 have been represented
accordingly.
(2) Basic earnings per share is calculated by dividing adjusted
net income attributable to owners of the Company by the weighted
average number of ordinary shares outstanding during the period.
Pursuant to IAS 33.9 and IAS 12, net income attributable to owners
of the Company has been adjusted to take into account the cost of
the coupon payable to holders of deeply subordinated securities
issued by Veolia Environnement. As of June 30, 2015, the weighted
average number of shares outstanding is 548,503,826 (basic and
diluted)
CONSOLIDATED STATEMENT OF FINANCIAL
POSITION: ASSETS
CONSOLIDATED STATEMENT OF FINANCIAL POSITION - ASSETS
(€ million)
As of June 30,
2015
As of December 31, 2014 (1) Goodwill
4,643.3 4,499.4 Concession intangible assets
2,837.8 2,750.5 Other intangible assets
970.6 990.1
Property, plant and equipment
6,717.1 6,637.5 Investments in
joint ventures
2,218.3 2,043.2 Investments in associates
424.8 454.9 Non-consolidated investments
70.0 54.7
Non-current operating financial assets
1,926.1 1,882.5
Non-current derivative instruments - Assets
93.6 101.9 Other
non-current financial assets
444.3 866.7 Deferred tax assets
1,161.9 1,137.3
Non-current assets
21,507.8 21,418.7 Inventories and
work-in-progress
734.8 729.9 Operating receivables
9,246.2 8,650.4 Current operating financial assets
135.1 127.2 Other current financial assets
623.3
203.1 Current derivative instruments - Assets
78.7 103.0
Cash and cash equivalents
1,732.9 3,148.6 Assets classified
as held for sale
60.0 343.6
Current
assets 12,611.0 13,305.8 TOTAL
ASSETS 34,118.8 34,724.5
(1) IFRIC 21 is applicable on a retrospective basis on
first-time application and the consolidated financial statements
for the year ended December 31, 2014 have been represented
accordingly.
CONSOLIDATED STATEMENT OF FINANCIAL
POSITION : EQUITY AND LIABILITIES
CONSOLIDATED STATEMENT OF FINANCIAL POSITION - EQUITY AND
LIABILITIES
(€ million)
As of June 30, 2015 As of December 31,
2014 (1) Share capital
2,811.5
2,811.5 Additional paid-in capital
7,165.6 7,165.6 Reserves
and retained earnings attributable to owners of the Company
(1,616.3) (1,664.9)
Total equity attributable to owners
of the Company 8,360.8 8,312.2
Total equity attributable to non-controlling interests
1,186.5 1,167.2
Equity 9,547.3
9,479.4 Non-current provisions
2,035.3 1,958.8
Non-current borrowings
7,803.7 8,324.5 Non-current
derivative instruments - Liabilities
115.4 112.5 Deferred
tax liabilities
1,141.4 1,135.3
Non-current
liabilities 11,095.8 11,531.1
Operating payables
9,640.7 9,677.3 Current provisions
521.9 552.9 Current borrowings
2,914.8 3,003.1
Current derivative instruments - Liabilities
128.4 128.5
Bank overdrafts and other cash position items
246.9 216.4
Liabilities directly associated with assets classified as held for
sale
23.0 135.8
Current liabilities
13,475.7 13,714.0 TOTAL EQUITY AND
LIABILITIES 34,118.8 34,724.5
(1) IFRIC 21 is applicable on a retrospective basis on
first-time application and the consolidated financial statements
for the year ended December 31, 2014 have been represented
accordingly.
CONSOLIDATED CASH FLOW
STATEMENT
(€ million)
Half-year ended June 30, 2015
Half-year ended June 30, 2014
Represented(1)
Net income (loss) for the period
434.7 186.9
Net income (loss) from continuing operations
434.7 210.0 Net income (loss) from
discontinued operations - (23.1)
Operating depreciation, amortization, provisions and impairment
losses 604.1 615.7 Financial amortization and impairment losses 4.1
7.5 Gains (losses) on disposal of operating assets (9.8) (3.7)
Gains (losses) on disposal of financial assets (65.6) (53.0) Share
of net income (loss) of joint ventures (65.2) (60.6) Share of net
income (loss) of associates (13.1) (12.9) Dividends received (1.3)
(1.8) Net finance costs 230.8 234.8 Income tax expense 124.2 101.0
Other items 13.3 17.3
Operating cash flow before
changes in operating working capital 1,256.2
1,054.3 Change in operating working capital
requirements (628.0) (586.8) Income taxes paid
(119.5) (82.2)
Net cash from operating activities of
continuing operations 508.7 385.3 Net cash
from (used in) operating activities of discontinued operations
- (5.7) Net cash from operating
activities 508.7 379.6 Industrial
investments, net of grants (510.4) (491.7) Proceeds on disposal of
intangible assets and property, plant and equipment 44.6 28.1
Purchases of investments (42.1) (36.4) Proceeds on disposal of
financial assets 250.8 278.9 Operating financial assets New
operating financial assets (49.9) (61.4) Principal payments on
operating financial assets 82.3 88.5 Dividends received (including
dividends received from joint ventures and associates) 54.4 49.1
New non-current loans granted (59.4) (240.9) Principal payments on
non-current loans 101.7 194.1 Net decrease/increase in current
loans (8.6) 16.9
Net cash used in investing
activities of continuing operations (136.6)
(174.8) Net cash used in investing activities of
discontinued operations - (17.0)
Net cash used in investing activities (136.6)
(191.8) Net increase (decrease) in current borrowings
(763.6) (887.1) New non-current borrowings and other
debts 42.7 106.2 Principal payments on non-current borrowings and
other debts (175.9) (27.0) Proceeds on issue of shares - - Share
capital reduction - - Transactions with non-controlling interests:
partial purchases (105.5) (91.6) Transactions with non-controlling
interests: partial sales - 2.1 Proceeds on issue of deeply
subordinated securities - - Coupons on deeply subordinated
securities (71.5) (68.0) Purchases of/proceeds from treasury shares
0.1 - Dividends paid (486.7) (245.6) Interest paid (273.9)
(303.3)
Net cash from (used in) financing activities of
continuing operations (1,834.3) (1,514.3) Net
cash from financing activities of discontinued operations
- 0.4 Net cash from (used in)
financing activities (1,834.3)
(1,513.9) Effect of foreign exchange rate changes and other
16.0 (50.6) Increase (decrease) in external net cash
of discontinued operations -
19.1 Net cash
at the beginning of the year 2,932.2
4,061.3 Net cash at the end of the year
1,486.0 2,703.7
Cash and cash equivalents 1,732.9 2,874.8 Bank overdrafts
and other cash position items 246.9 171.1
Net cash
at the end of the year 1,486.0
2,703.7
(1) Pursuant to IFRS 5, Non-Current Assets Held for Sale and
Discontinued Operations, the contribution of Water activities in
Morocco is no longer recognized in Assets classified as held for
sale and Liabilities directly associated with assets classified as
held for sale. Comparative figures for fiscal year 2014 have been
reclassified accordingly.
Furthermore, IFRIC 21 is applicable on a retrospective basis on
first-time application and the consolidated financial statements
for the half-year ended June 30, 2014 have been represented
accordingly.
View source
version on businesswire.com: http://www.businesswire.com/news/home/20150803005523/en/
Veolia EnvironnementMedia RelationsLaurent
ObadiaorSandrine GuendoulTel: + 33 (0)1 71 75 12
52sandrine.guendoul@veolia.comorAnalyst & Investor
RelationsRonald Wasylec - Ariane de LamazeTel.: + 33 (0)1 71 75
12 23 / 06 00orTerri Anne Powers (United States)Tel.: + 1 312 552
2890
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