2013 Registration Document Annual Financial Report Pursuant to Article 28 of Commission Regulation (EC) No. 809/2004, the following information is incorporated by reference in this Registration Document: (i) the consolidated financial statements and the parent company financial statements for the 2012 fiscal year and the corresponding Statutory Auditor’s report, included in Chapter 20, Sections 20.1 and 20.2, respectively, of Veolia Environnement’s Registration Document for the 2012 fiscal year, filed with the Autorité des Marchés Financiers (AMF, the French stock market regulator) on March 21, 2013 under number D.13-0197 and (ii) the consolidated financial statements and the parent company financial statements for the 2011 fiscal year and the corresponding Statutory Auditor’s report, included in Chapter 20, Sections 20.1 and 20.2, respectively, of Veolia Environnement’s Registration Document for the 2011 fiscal year, filed with the AMF on March 21, 2012 under number D.12-0192. AMF This Registration Document was filed with the Autorité des Marchés Financiers (AMF, the French stock market regulator) on March 18, 2014, pursuant to Article 212-13 of its General Regulations. This Registration Document may be used in connection with a financial transaction if supplemented by a “Note d’opération” (offering circular) officially approved by the AMF. This document has been prepared by the issuer under the liability of the signatories. REGISTRATION DOCUMENT 2013 – VEOLIA ENVIRONNEMENT - 1 Table of Contents 1 PERSONS ASSUMING RESPONSIBILITY FOR THE REGISTRATION DOCUMENT ........................... 8 1.1 Person responsible ....................................................................................................................... 8 1.2 Statement by the person responsible ......................................................................................................... 8 2 PERSONS RESPONSIBLE FOR AUDITING THE FINANCIAL STATEMENTS ...................................... 9 2.1 Statutory Auditors ..................................................................................................................................... 9 KPMG SA ..............................................................................................................................................................................................9 Ernst & Young et Autres ........................................................................................................................................................................9 2.2 Deputy Statutory Auditors ........................................................................................................................ 9 KPMG Audit ID .....................................................................................................................................................................................9 AUDITEX ..............................................................................................................................................................................................9 3 SELECTED FINANCIAL INFORMATION ..................................................................................................... 10 4 RISK FACTORS ...................................................................................................................................... 11 4.1 Risks relating to the issuer ...................................................................................................................... 12 4.1.1 Risks relating to the business environment in which the Group operates .............................................................................12 4.1.2 Risks relating to the conduct of the Group’s business ...........................................................................................................15 4.2 Risk management process within Veolia Environnement ....................................................................... 20 4.2.1 Risk management organization ..............................................................................................................................................20 4.2.2 Details on risk management measures ...................................................................................................................................22 4.2.3 Insurance .................................................................................................................................................................................29 4.3 Audit and internal control ....................................................................................................................... 30 4.3.1 Definition and objectives of internal control ..........................................................................................................................30 4.3.2 Organization and procedures relating to the development and processing of financing and accounting information .........30 4.3.3 Control duties of functional departments ...............................................................................................................................33 4.3.4 Evaluation of internal control over financial reporting (Section 404 Sarbanes-Oxley Act) .................................................33 4.3.5 Reporting on fraud ..................................................................................................................................................................34 4.3.6 Disclosure Committee ............................................................................................................................................................34 4.3.7 Internal information and communication ...............................................................................................................................34 4.4 Ethics and compliance ............................................................................................................................ 35 4.4.1 Guide to Ethics .......................................................................................................................................................................35 4.4.2 Ethics Committee....................................................................................................................................................................36 5 INFORMATION RELATING TO THE ISSUER ................................................................................ 37 5.1 History and development of the Company ............................................................................................. 37 5.1.1 History of the Company .........................................................................................................................................................37 5.1.2 General information regarding the Company .........................................................................................................................38 5.2 Investments ............................................................................................................................................. 39 6 BUSINESS OVERVIEW ..................................................................................................................................... 40 6.1 Main business activities .......................................................................................................................... 40 6.1.1 General description of Veolia Environnement .......................................................................................................................40 6.1.2 Veolia Environnement’s strategy ...........................................................................................................................................41 6.1.3 Description of Veolia Environnement’s main businesses ......................................................................................................44 6.2 Market overview ..................................................................................................................................... 64 6.2.1 The market for environmental management services ............................................................................................................64 6.2.2 Customers ...............................................................................................................................................................................66 6.2.3 Competition ............................................................................................................................................................................67 6.2.4 Contracts .................................................................................................................................................................................70 6.2.5 Intellectual property - Company Dependence ........................................................................................................................71 6.2.6 Seasonality ..............................................................................................................................................................................71 6.2.7 Raw materials .........................................................................................................................................................................71 6.3 Environmental and employee regulation, policies and compliance .......................................................