Date: August 1, 2006
Source: Veolia Environnement
Consolidated revenue (1) for the first half-year ending June 30, 2006 (Unaudited figures)
Strong revenue growth
Veolia Environnement
As indicated in the 2005 Reference Document, Veolia Environnement now applies the draft interpretations on concession accounting under IFRS. The impacts of this change in method are described in the presentation dated July 27 2006, which is available on the company's website (www.veolia-finance.com). The accounts at June 30, 2005 have been restated for application of the same accounting principles for comparison purposes.
At June 30, 2006 (millions) €13.997
* At June 30, 2005 adjusted (millions) €12.306
* Variation 2006/2005 +13.7%
* Of which internal growth +9.9%
* Of which external growth +3.0%
* Of which exchange rate fluctuation +0.8%
The Company's consolidated revenue rose by 13.7% to 13,997.7 million euros versus 12,306.8 million euros at June 30, 2005. Organic growth came to 9.9%.
External growth of 3.0% came primarily from acquisitions made by Veolia Transport in the USA and by Veolia Water in the Solutions and Technologies business. Revenue generated outside France totaled to 7,320.3 million euros, or 52.3% of the total revenue.
Positive currency effects of €98.2m (+0.8%) came primarily from the US dollar (€42.7m), the Czech crown (€24.7m) and Latin-American currencies (€12.6m).
Water
* At June 30, 2006 (millions) €4.801
* At June 30, 2005 adjusted (millions) €4.294
* Variation 2006/2005 +11.8%
* Of which internal growth +8.6%
* Of which external growth +2.3%
* Of which exchange rate fluctuation +0.9%
In France, on a like-for-like basis, the water business grew 6.4% excluding Veolia Water Solutions and Technologies, thanks to continued strong growth of the engineering business in the anticipation of the summer and robust trends in the distribution business.
Outside France, excluding Veolia Water Solutions & Technologies and Proactiva, revenue rose by 12.5% (+8.1% on a like-for-like basis). In Europe, growth of 8.6% was led by the start-up of new contracts, notably in Germany (waste water treatment for the city of Braunschweig), in the Czech Republic (Hradec Kralove and Prostejov). Sharp growth in revenue in Asia-Pacific up 38.3% (organic growth of 16.4%) was driven largely by start-up of new contracts in China (Hohhot and Changzhou in the municipal segment). External growth in this region came from the increase in stake in the Adelaide contract in Australia and small acquisitions in Japan.
Veolia Water Solutions & Technologies posted an 18.1% rise in revenue on a
like-for-like basis, notably due to sharp growth in Design & Build activity in France, in the Middle East and in the United States. Including recent acquisitions (Westgarth company), total growth came to 28.4%.
Waste management
* At June 30, 2006 (millions) €3.548
* At June 30, 2005 adjusted (millions) €3.218
* Variation 2006/2005 +10.2%
* Of which internal growth +8.9%
* Of which external growth +0.4%
* Of which exchange rate fluctuation +0.9%
Revenue in France rose by 5.9% (of which 5.4% organic growth) due to the combined effect of the increased contribution from new incineration plants and the increased tonnages of solid waste collected and treated in high value-added service contracts.
Outside France, excluding Proactiva, organic growth totaled 11.8%. The trend was buoyant in the United States in all activities (+15.7%) and in Northern Europe. In the UK, global growth came to 14.1%, of which 8% organic growth (integrated contracts in Sheffield and Hampshire), on top of the contribution from the acquisition in hazardous waste made in 2005.
Energy services
* At June 30, 2006 (millions) €3.245
* At June 30, 2005 adjusted (millions) €2.706
* Variation 2006/2005 +19.9%
* Of which internal growth +17.6%
* Of which external growth +1.7%
* Of which exchange rate fluctuation +0.6%
Global growth comes to 19.9% of which 17.6% organic growth. Higher energy prices had an impact of €203 million. Excluding this factor, growth in the Energy Services rose by 12.4%.
In France, organic growth of 15.2% was driven primarily by the increase in energy prices and, to a lesser extent, by favorable weather conditions, start-up of new contracts and the increase in order backlog for construction subsidiaries.
Outside France, global growth came to 26.8%, with organic growth of 21.5%, driven primarily by the full effect of the Lodz contract (Poland), by weather and price conditions in Central Europe and a small acquisition in Italy.
Transportation
* At June 30, 2006 (millions) €2.403
* At June 30, 2005 adjusted (millions) €2.088
* Variation 2006/2005 +15.1%
* Of which internal growth +4.2%
* Of which external growth +10.4%
* Of which exchange rate fluctuation +0.5%
In France, revenue was virtually stable, with non-renewal in 2006 of the Toulouse contract being offset by the signature of new urban and inter-urban contracts and strong trends in activities.
Outside France (7.5% of organic growth), revenue reflected the start-up of new German railway contracts (Nordhartz-Netz and Marschbahn) and the full effect of developments in North America.
Total external growth of 10.4% was driven primarily by the acquisition of ATC and Shuttleport in the USA and of Helgelandske in Norway.
Outlook
Growth in revenue in the first half year highlights a strong sales performance posted by Veolia Environnement in growing markets, based on organic growth and targeted acquisitions. Since the beginning of the year, the Group has signed important new contracts in the water division (Slovakia, the Middle East and China), in the waste management division (Nottinghamshire in the UK), in the energy services division (Italy and China) and the transportation division (France, USA and the Netherlands). It has also acquired waste treatment activities in Belgium. These elements allow Veolia Environnement to confirm the full-year growth in revenue of more than 10% versus 6 to 8% previously expected.
Notes
(1) Revenue from ordinary activities
(2) The accounts to June 30, 2005 have been restated for application of draft interpretations D12, D13 and D14 on concession accounting.
Veolia Environnement (Paris Euronext: VIE and NYSE: VE) is world leader in environmental services. With more than 270,000 employees the company has operations all around the world and provides tailored solutions to meet the needs of industrial and municipal customers in four complementary segments: water management, waste management, energy management and passenger transportation. Veolia Environnement recorded revenue of €25.2 billion in 2005.
Press contact:
Marie-Claire Camus
Tel : 01 71 75 06 08
For more information visit: www.veoliaenvironnement.com/en/.
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