| At the end of FY09, operating cash flow declined to €3,955.8 million from €4,105.4 million at the end of FY08. This slight decline in operating cash flow resulted primarily from lower results in the Environmental Services division (volumes, prices of recycled materials sold). Net financial debt decreased to €15,127.0 million at the end of FY09 from €16,528.0 million at the end of FY08, primarily due to solid divestments.
For FY10, management expects to generate positive free cash flow after the payment of the dividend.
Development
VE has won and renewed numerous contracts in its priority regions of development, in France (Water: a contract with the Chartres urban authority; Transport: Mont Saint Michel public service management contract), in Europe (Water: Madrid; Environmental Services: Merseyside; Transport: Västra Götaland in Sweden), in North America (Transport: New Orleans), in Asia / Pacific (Environmental Services: renewal of the Hong Kong contract), and in the Middle East (Water: Doha). In the Transport division, the Melbourne contract was not renewed at the end of FY09.
In Brazil, Veolia Water Solutions & Technologies signed a contract with Petrobras. In addition, Veolia Transport won the Greater Rabat contract in Morocco and set up a joint venture with RATP Développement to further develop in Asia. Dalkia signed a partnership agreement with CEZ, the Czech Republic’s largest electricity producer, to augment industrial cooperation that could lead to asset exchanges.
Dividend
Given the good visibility on future cash flows and the strengthened financial position of the Group, the Board of Directors will propose at the Annual General Meeting of Shareholders to be held on May 7, 2010, a dividend per share of €1.21, payable in cash or in shares of VE. These new shares will be issued with a discount of 10% of the average opening price on the Euronext of the shares over the twenty trading days prior to the day of the Annual General Shareholders Meeting less the amount of the dividend. The ex-dividend date has been set on May 14, 2010. The period during which shareholders may choose the option of the payment of the dividend in cash or in shares will begin on May 14, 2010, and end on May 31, 2010. The 2009 dividend will be paid – in cash or in shares – beginning on June 9, 2010.
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