field trip in chicago may 22 and 23, 2007 (en anglais)

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www.VeoliaES.com

Veolia Environnement North America

Business Overview – Investor Site VisitMay 22nd - 23rd, 2007

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www.VeoliaES.comNORTH AMERICAwww.VeoliaES.com

Disclaimer

Veolia Environnement is a corporation listed on the NYSE and Euronext Paris. This document 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 risks associated with conducting business in some countries outside of Western Europe, the United States and Canada, the risk that changes in energy prices and taxes may reduce Veolia Environnement's profits, the risk that we may make investments in projects without being able to obtain the required approvals for the project, the risk that governmental authorities could terminate or modify some of Veolia Environnement's contracts, the risk that our long-term contracts may limit our capacity to quickly and effectively react to general economic changes affecting our performance under those contracts, 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 risks described in the documents Veolia Environnement has filed with the U.S. Securities and Exchange Commission. 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 a free copy of documents filed by Veolia Environnement with the U.S. Securities and Exchange Commission from Veolia Environnement.This document contains "non-GAAP financial measures" within the meaning of Regulation G adopted by the U.S. Securities and Exchange Commission under the U.S. Sarbanes-Oxley Actof 2002. These "non-GAAP financial measures" are being communicated and made public in accordance with the exemption provided by Rule 100(c) of Regulation G.

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Waste ManagementEnergy

Management

A market leader in North America

Water Transportation

• North American businesses: – 10% of global Veolia Environnement revenue or approximately $3.5

billion in revenue – Revenue increased 23.1% in 2006– Approximately 30,000 employees– Only company providing entire range of environmental services to

municipal, industrial and commercial customers

• No.1 in municipal partnerships and industrial outsourcing • +$850 million in 2006 revenue

Top 1- 4 in various categories of waste management

+$1.8 billion in 2006 revenue

• Recent launch and continued growth in North American market • +$15 million in 2006 revenue

No.1 in U.S. surface passenger transportation

+$850 million in 2006 revenue

Energy Management

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Veolia Water North AmericaNation’s leader in water services

• Market leader with 36% share in U.S., Canada and Caribbean*

• Approximately 600 communities served in 38 states

• Manage largest U.S. public-private partnership (Indianapolis achieved ISO 9001 and 14001 simultaneously – first major U.S. city to achieve this)

• Provide industrial/commercial water partnerships and operating services at 100+ facilities

• Largest U.S. industrial projects in market (customer base includes Fortune 500)

*Source: Public Works Financing, April 2006

Tampa Bay WaterSignficant DBO project

Highly trained specialists

Indianapolis – nation’slargest, most innovative partnership

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North American Water Industry Leader

Industrial leadership

100+ industrial facilities managed for various Fortune 500 companies and manufacturers 300+ MGD daily flowAll facets of water and wastewater management for multiple industries

Municipal leadership

600 communities served 1.68 BGD daily flow299 facilities operated5,893 miles of water distribution lines and 4,426 miles of wastewater lines395,000 meters read30 effluent reuse facilities5 biosolids facilitiesHigh-security federal facilities

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Veolia Transportation in North America….

• A long history of partnerships with North American cities– Yellow Transportation began in 1909 in Baltimore, MD– ATC’s first contract began in 1930 in Escambia, FL

• Connex and ATC merged in 2005 to create Connex ATC• Shuttleport (which began in 1925) joined Connex ATC in January 2006

• Connex ATC became Veolia Transportation in April 2006. • Experienced growth of over 400% since 2001, by winning new business

• October 2006: launch of VTOD (VeoliaTransportation on Demand),and acquisition of SuperShuttle

http://www.veoliatransportation.com/images/chart_revenue_596.gif

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… is now the largest North American operator in ground passenger transportation

• Over 16,000 employees

• 10,000 vehicles

• Over 130 contracts

• Approximately $850 million in annual revenue for 2006

• Operations in 22 States and 2 Canadian Provinces

• Services include bus, rail, paratransit, taxi, limo, call center and brokerage, shuttle services

• Operate the largest contracted fixed- route bus service in North America (Las Vegas) and largest contracted commuter rail system (Boston)

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• Steam distribution network in Cambridge, Mass.

– Supplies process steam to global biotech and pharmaceuticals

• District heating network for Montreal

• Central plant utilities operations – NestléR&D Center (Ohio)

• Facilities management – Galleria shopping center in Houston– The Forum Shops / Caesar’s Palace in

Las Vegas

Dalkia / Veolia Energy North AmericaParticular focus on distribution networks and facilitiesmanagement

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Dalkia/Veolia Energy North AmericaManaging customers’ entire energy needs

Energy Markets

Natural GasElectricity Coal

Fuel OilGas Oil

Biomass

Central Utility Plant

BoilersChillers

CogenerationAir CompressorsCooling Towers

Energy Services

HVAC SystemsElectrical Systems

LightingProcess Equipment

Primary Energy Utilities Secondary Utility Distribution

Procurement Transformation Distribution Utilization

Steam, hot water, chilled water,

electricity

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www.VeoliaES.com

Business Overview – Investor Site VisitMay 22nd – 23rd, 2007

Veolia Environmental Services North America: ONE COMPANY – FOUR EXPERTISES

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VEOLIA ENVIRONMENTAL SERVICES2006 KEY FIGURES

Veolia Environmental Services is the No. 2 in the world for waste collection, recycling and treatment• 89,500 employees worldwide operating in 36 countries• Over 53 million people served• AAA corporate social responsibility rating• 465,000 industrial and tertiary sector customers• Approximately two thirds of its revenue from private companies• 58 million metric tons of waste treated at 698 waste treatment units

• Of 54.4 million tons of non-hazardous and 3.6 million tons of hazardous waste treated

• Strong emphasis on recycling and recovery• 7.4 million tons of solid waste received at 243 sorting and recycling units, of

which 4.6 million tons were recovered.• 146 landfills of which, 142 that accept biodegrable waste and 64 that have

recovery systems to transform biogas into alternative energies• 10.3 million tons of waste treated at 72 Waste-to-Energy facilities• In partnership with Veolia Water, 2 million tons of sludge waste recovered at

102 composting units

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Asia Pacific 8 %

Europe (Except France)25 %

France45 %

North America20 %

• 2006 revenue : EUR7.5 billion ($9.8 billion)

• Recurring Operating Income :EUR648 million ($854 million)

• 55% of sales generated outside France

Rest of the world2 %

• Breakdown of revenue by geographical area :

VEOLIA ENVIRONMENTAL SERVICESKEY FINANCIAL FIGURES

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VEOLIA ENVIRONMENTAL SERVICESIN NORTH AMERICA

• # 1 in Industrial Cleaning• # 2 in Hazardous Waste• # 3 in Waste to Energy• # 4 in Solid Waste*• # 1 in Total Waste Management• $1.8 Billion in Revenue (2006)• 250 Locations• 10,900 Employees (USA: 9400 – Canada: 1500)• Established in US in 1984

* Includes solid waste collected for incineration.

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1984 -1997

Veolia Environmental Services’ Developmentin North America

1998 -1999

•Cold start of Montenay in the late seventies (1978 first O + M contract won for Quebec city WTE facility)

•1985: First U.S. WTE contract in Miami-Dade

•1987: Vancouver, Canada WTE contract.

•1988–90: WTE contracts in California, Pennsylvania and NY

•1992: WTE ownership in Pennsylvania

•1998-99: Sani Mobile and Sani Gestion in Canada are acquired for the Industrial Services and Solid Waste, adding $60 million in revenue.

•1998-99: 3 WTE contracts acquired from Westinghouse

•1999: JV with Waste Management’s AETS (‘99), adding $150 million in revenue to the Industrial Services and Hazardous Waste operations.

•1999: Superior Services is acquired adding $395 million in revenue and a strongpresence in the Midwest for Solid Waste.

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Veolia Environmental Services’ Developmentin North America

2000 -2003

•Significant organic growth (Vancouver extension, Queens-NY, Freeport, Bahamas, Wyeth…).

•2000: Assets acquired from Allied in Solid Waste (approx. $125 million in revenue added).

•2000: Remaining stake of AETS is acquired from Waste Management.

• Industrial Cleaning business acquires Heist assets in the U.S. and Canada.

•The Charleston (2002) and Savannah (2003) contracts are acquired in WTE

2004 -Present

• Growth of 27% from 2004 – 2006 driven by organic growth

• Key benchmark contract awards in Solid Waste (Pontiac, MI); Hazardous (Pfizer); Waste-to-Energy (Miami-Dade renewal and Pinellas, FL award) and Industrial Cleaning (BP)

• Rapid development of Industrial Services business and development of new business opportunities in niche markets (e.g. marine services)

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MIX of BUSINESS

2006 Revenue: $1.8 Billion

Solid Waste40%

Industrial Services30%

Hazardous Waste19%

WTE11%

By Division By Client

Industrial and Commercial

70%

Municipal30%

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AN INTEGRATED OFFER

Solid Waste Services- Collection- Transfer- Recycling- Disposal- On-Site Management

127,00 commercial and industrial clients, 470 municipal contracts (11 states + Canada), 27 landfills

Industrial Services- Industrial Cleaning- Mechanical Services- Sewer Services- Dewatering- Precommissioning- Marine Services

70 service locations

Hazardous Waste Services- Incineration- Fuels Blending- Recycling and Recovery- Lab Packing- Emergency & Special Services

47 service locations, 13 TSDF’s, 2 incinerators

Waste-to-Energy- Waste combustion- Energy Recovery- Facility Operation- Facility Maintenance- Retrofitting

11 WTE Plants

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Veolia Environmental Services North America is the onlyintegrated waste service company with strong market positions across all segments

IndustrialServices

Solid Waste HazardousWaste

Waste-to-Energy

Company

Veolia Environmental Services #1#1

#3#3

#2#2

#4* #2#2 #3#3 (11 plants*; (11 plants*; largest U.S. plant)largest U.S. plant)

#2 (16 plants)#2 (16 plants)

#3#3

#1#1

#1 (31 plants)#1 (31 plants)

#1

#2

#3

#5

*Includes treatment of solid waste from Waste-to-Energy operations

Waste Management

Allied Waste

Republic Services

Waste ConnectionsAmer. Ref-Fuel/Covanta

PSC

Clean Harbors

Hydrochem

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NORTH AMERICASOLID WASTE

www.VeoliaES.com

Veolia Environmental Services NA - Solid Waste

NORTH AMERICASOLID WASTE www.VeoliaES.com

SERVICECAPABILITIES

• Solid waste collection• Transfer• Recycling• Disposal• Liquid solidification• Biodegradable waste

composting• Waste evaluations• Industrial in-plant services• Landfill Operation


KEY FIGURES

• Fourth largest waste services* firm in US

– 10.6 million tons processed– 3,600 employees– $740 M 2006 revenues

• Services provided to more than 1.7 million residential, commercial and industrial customers.

• Facilities:– 3,000+ vehicles in fleet– 64 collection operations– 37 transfer stations– 16 recycling stations– 27 solid waste landfills

* Includes solid waste collected for incineration.


Mix of Business Collection Mix

MIX OF BUSINESS – COLLECTION MIX

2006 Revenue: $ 740 Million

Third Party Disposal19% Recycling Collection &

Resale10%

Collection, Transfer & Disposal

71%

Industrial28%

Comme39%

Residential /

rcial

Municipal

33%

NORTH AMERICATECHNICAL SOLUTIONS

www.VeoliaES.com

Veolia ES Technical Solutions

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www.VeoliaES.comNORTH AMERICATECHNICAL SOLUTIONS www.VeoliaES.com

SERVICE CAPABILITIES

• Electronics recycling• Emergency response• Fuels blending• Household hazardous waste• Incineration• Internet reporting services• Laboratory chemical services• Low-level radioactive waste• On-site services• Reactive chemicals management• Recycling and recovery• Remediation• Specialty services• Stabilization and landfill• Training and awareness programs• Transportation

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• Regional and national service offering

– Serving US and Puerto Rico

– 1,600 employees

– $350M 2006 revenues

• Facilities:– 2 incineration facilities

– 13 company operated TSDF’s

– 36 (10) day in transit facilities

– 4 fuels blending facilities

– 5 electronics / metals recycling facilities

KEY FIGURES

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MIX OF BUSINESS

2006 Revenue: $350 Million

Metal Recycling3%

Fuels/Reclaim12%

Electronic recycling9%

Incineration20%

Services56%

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NORTH AMERICAINDUSTRIAL SERVICES

www.VeoliaES.com

Veolia ES Industrial Services

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www.VeoliaES.comNORTH AMERICAINDUSTRIAL SERVICES www.VeoliaES.com


• Hydroblasting• Ultra High Pressure Water • Wet/Dry Vacuuming• Chemical Cleaning• Precommissioning Services• Explosives/Deslaging• Tank Cleaning• Separation Technologies• Dredging• Waste Transportation• In Plant Services• Turnaround Management• Mechanical Services• Heat Exchanger Services• Abatement• Remediation• Surface Coating and Sandblasting• Industrial Diving with Saturation

Systems

• Marine/Offshore Services • Emergency Response• Biosolids• Sewer Inspection, Cleaning, Managed Service

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• Regional and national service offering

– 30 years specialized industry experience

– 4,900 employees in US and Canada

– $560 M 2006 revenues

• Facilities:– Over 70 service locations

in US and Canada

KEY FIGURES

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NORTH AMERICAWASTE-TO-ENERGY

www.VeoliaES.com

Veolia ES Waste-to-Energy

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www.VeoliaES.comNORTH AMERICAWASTE-TO-ENERGY www.VeoliaES.com


• Develop, design, construct and operate waste-to-energy incinerators

• Oversee full waste-to-energy plant operations including waste delivery, unloading, separation, feeding, combustion, energy recovery, residue management and pollution controls

• Assured destruction of non-regulated waste

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KEY FIGURES

• 670 employees• $190 M 2006 revenues • Facilities:

– 11 waste-to-energy plants operated in the US and Canada– 4.9 million tons of municipal waste disposed of annually– Electrical energy generated to meet the needs of 345,000 households

• Operating and safety excellence– OSHA VPP (5 plants)– ISO 14001 Environmental Certified (8 plants)

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www.VeoliaES.com

Veolia ES North AmericaVESNA Financial Review

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Revenue ($ in millions)

1,317 1,3761,455

1,842

2002 2003 2004 2005 2006Note: 2002 & 2003 presented in Local GAAP, 2004 - 2006 presented in IFRS

+ 15.7%

1,591

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Contribution to growth from all areas of the business

0100200300400500600700800

Solid Waste IndustrialServices

TechnicalSolutions

WTE

20052006

2005 versus 2006 revenue (in $millions)

+8%

+39%

+10%

+5%

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AMERICA AND GLOBAL WARMING

““HAVE WE TURNED UP EARTHHAVE WE TURNED UP EARTH’’S THERMOSTAT?S THERMOSTAT?””Chicago Tribune Jan. 10, 2007

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AMERICA AND GLOBAL WARMING

““MORE COMPLEX THAN IT LOOKSMORE COMPLEX THAN IT LOOKS””

• Kyoto Protocol (signed) but never enforced by Congress

• USA (5% of world population) 27% of world CO2

• Per Capita American Carbon emission 20 Tons/year

(European 10 T, Chinese 4 T, Indian <2T)

• Former Chairman of Senate Environment Committee:

Global WarmingGlobal Warming…… The greatest hoax EverThe greatest hoax Ever

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AMERICA AND GLOBAL WARMING (Cont…)

““MORE COMPLEX THAN IT LOOKSMORE COMPLEX THAN IT LOOKS””

• But

– Pittsburgh No. 400 City after LA, San Francisco, N.Y., Chicago to sign the US Mayors climate protection agreement

– California from “High Tech to Green Tech State”

– Regional Green house gas initiative signed in 7 states

– Mr. President himself in favor of alternative to “oil addiction”

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Ethanol: Good or Bad Idea?

Bad: Food vs. Fuel (corn, wheat, etc.)• Corn price per bushel x2 to $4.00• “Ay Tortilla” crisis in Mexico• Sugar cane Brazilian model not duplicable• Poor energy mass balance

Good: Cellulosic ethanol (wood/waste)• Biofuel from grease trap (France)• Secondary liquid fuel (UK, USA)• Biofuel from trash (Okeelanta, USA)• Trash to fuel (Oslo, Norway)

Timing• Tsunami (2004) Katrina/Rita (2005) Stern report (2006)• European commitment to cut Co2 emissions• 30% (2020) – 50% (2050) vs. 1990

Unique momentum for change in public behavior

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TURNING WASTE INTO A RESOURCE

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Summary

• Fully integrated waste services company across the full value chain – Key market differentiation with competition

• Focused on profitable growth– Contract awards and renewals in more mature markets (solid waste,

waste-to-energy)– Strong growth opportunities and extension of business in new high-

value niche service markets (e.g. marine services)– Improved pricing environment (solid waste and hazardous waste)– Tuck-in acquisitions to complement core portfolio of business

• Continuation of efficiency efforts post Veolia Efficiency Plan

• Continued focus on driving improved ROCE and cash flow– Improved operating performance– Selective investments in core markets (All projects must meet IRR =

WACC + 3%)

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Questions? Thank You.

Turning waste into a resource

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• Nathalie PINON, Head of Investor Relations38 Avenue Kléber – 75116 Paris - France

Telephone +33 1 71 75 01 67Fax +33 1 71 75 10 12

e-mail [email protected]

• Brian SULLIVAN, Vice President, US Investor Relations700 E. Butterfield Road -Suite 201

Lombard, IL 60148 - USATelephone +1 (630) 371 2749

Fax +1 (630) 282 0423e-mail [email protected]

Web sitehttp://www.veolia-finance.com

Investor Relations contact information

mailto:[email protected]

mailto:[email protected]

field trip in chicago may 22 and 23, 2007 (en anglais)

Technology

gaap financial

veolia environnement

north america

2007north

veolia transportation

solid waste

6 million

global warming