Veolia Environnement signs an agreement with FCC to own 100% of Proactiva

  Veolia Environnement signs an agreement with FCC to own 100% of Proactiva

Business Wire

PARIS -- June 10, 2013

Regulatory News:

Veolia Environnement (Paris:VIE) announces the signature of an agreement to
acquire the 50% stake held by Fomento de Construcciones y Contratas (FCC) in
Proactiva Medio Ambiente. The transaction would amount to €150 million and
would make Proactiva a wholly owned Veolia Environnement subsidiary.

Formed in 1999, Proactiva is a 50-50 joint venture between Veolia
Environnement and FCC. Proactiva is among the major players in environmental
solutions for public authorities and businesses in Latin America. The
acquisition of FCC’s 50% stake in Proactiva would enable Veolia Environnement
to consolidate its position in Latin America, where, via Proactiva, the
company’s business in its main markets (water and wastewater services, waste
management) has grown by more than 15% a year since 2008.

This acquisition, made in line with Veolia’s usual profitability criteria, is
subject to customary conditions for this type of operation and is expected to
be finalized by the end of 2013. The transaction should have a neutral impact
on Veolia’s 2014 leverage ratio objective and should be accretive to net
income from 2014, prior to purchase price allocation.

With this operation, Veolia Environnement would be able to deploy its
expertise and high-added-value solutions in all Latin American countries and
would make use of Proactiva’s integrated organization to do so. In addition,
the inclusion of Proactiva within Veolia Environnement would make it possible
to broaden cost and revenue synergies with other Veolia operations in the
region.

“An increased stake in Proactiva is right in line with our strategy, which
aims to turn our company into the standard for addressing large-scale
environmental issues in growth markets. By wholly owning Proactiva, Veolia
Environnement will be able to consolidate its position in industrial and
municipal markets in Latin America, relying on its global expertise,
operations and customer references in the region, as well as of Proactiva’s
network and people,” said Antoine Frérot, Chairman and CEO of Veolia
Environnement.

Proactiva has operations in eight countries: Argentina, Brazil, Chile,
Colombia, Ecuador, Mexico, Peru and Venezuela. It provides services to more
than 42 million customers and has nearly 12,000 employees. Proactiva’s main
contracts include water management in Guayaquil (Ecuador), Mexico City
(Mexico) and Lima (Peru) and waste management in Buenos Aires (Argentina),
Caracas (Venezuela), São Paulo (Brazil) and Santiago (Chile).

With 2012 revenue of €541 million, adjusted operating cash flow of €95 million
and net financial debt of €118 million, Proactiva has experienced steady,
profitable growth over the past few years and has doubled its operating income
in five years.

Latin America is a dynamic region where industry is growing rapidly,
especially in the oil and gas, mining, food and beverage and petrochemical
sectors, and urbanization is increasing. Stricter environmental regulations
are leading companies and public authorities alike to implement solutions to
manage their complex environmental situations.

Veolia Environnement already has direct operations in Latin America through
its expertise in water, waste and energy. They include:

  *water and wastewater treatment for industrial companies in Brazil
  *hazardous waste management in Mexico
  *biomass-fired cogeneration in Chile.

Veolia Environnement (Paris Euronext: VIE and NYSE: VE) is the worldwide
reference in environmental solutions. With 220,000 employees*, the company has
operations all around the world and provides tailored solutions to meet the
needs of municipal and industrial customers in three complementary segments:
water management, waste management and energy management. Veolia Environnement
recorded revenue of €29.4 billion* in 2012. www.veolia.com

(* ) Excluding VeoliaTransdev employees and revenues currently under
divestment

Important Disclaimer

Veolia Environnement is a corporation listed on the NYSE and 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 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.

Contact:

Veolia Environnement
Media Relations
Sandrine Guendoul, + 33 1 71 75 12 52
Stéphane Galfré, + 33 1 71 75 19 27
or
Analyst and investor relations
Ronald Wasylec, + 33 1 71 75 12 23
Terri Anne Powers, (US) + 1 312-552-2890