2003-03-04

1. Paris, 10th March 2003
2002, Annual Results – March 2003 1

2. Important Legal Disclaimer
Vivendi 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 risk that
changes in energy prices and taxes may reduce Vivendi Environnement’s profits, the risk that
governmental authorities could terminate or modify some of Vivendi Environnement’s contracts, the
risk that Vivendi Environnement’s compliance with environmental laws may become more costly in
the future, the risk that currency exchange rate fluctuations may negatively affect Vivendi
Environnement’s financial results and the price of its shares, the risk that Vivendi Environnement may
incur environmental liability in connection with its past, present and future operations, and the risks
related to Vivendi Environnement’s relationship with Vivendi Universal, as well as the risks described
in the documents Vivendi Environnement has filed with the U.S. Securities and Exchange
Commission. Vivendi 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 Vivendi Environnement with the U.S. Securities and Exchange
Commission from Vivendi Environnement.
2002, Annual Results – March 2003 2

3. Contents :
2002 : 3 stress scenarios overcome
1. Which risk event ?
2. Industrial Profile
3. Financial Profile
Target 2003 : to maintain or even improve our
long and short term ratings
2002, Annual Results – March 2003 3

4. 2002 : the Group has overcome 3 stress scenarios
n “Shareholder” Stress scenario : the contagion risk has been
removed by the completion of the “spin off” from VU
n “Sector” Stress scenario : The Latin America risk and the crisis in
the Energy sector are 2 non-issues for the Group. As world leader in
Environmental Services VE is able to generate FFO, even in a
difficult economic climate
n “Liquidity” Stress scenario :
è Cash-flow generation up significantly
è Decrease in net indebtedness : from € 14.2 to 13.1 bn
è Strong improvement in [net debt / EBITDA] ratio from 4 to 3.4
è Strengthening of financial flexibility by better covenant levels,
elimination of all ratings triggers and improvement in liquidity
position
2002, Annual Results – March 2003 4

5. 1. Which event risk?
Past:
The spin off with VU is over
Future:
Our strategy is not “multi utilities”.
This significantly reduces the event risk
2002, Annual Results – March 2003 5

6. History of Vivendi Universal’s stake in Vivendi
Environnement’s equity capital
n December 1999 Formation of Vivendi Environnement (VE),
100% owned by Vivendi Universal (VU)
n July 20, 2000 IPO
VU owns 72.3%
n December 17, 2001 VU sells 9.3%
VU owns 63%
n June 28, 2002 VU sells 15.5%
VU owns 47.5%
n August 2, 2002 1.5 billion euro capital increase for VE
VU owns 40.8%
n December 24, 2002 VU sells 20.4%, +20.4% call option
exercisable at 26.5 euros per share at any
time until December 2004. VU owns 20.4%
2002, Annual Results – March 2003 6

7. Shareholder structure after capital stock
restructuring
New investors 20.4% (1) Vivendi Universal 20.4%
Floating 59.2%
(1) New investors:
investors:
Companies in the following groups: CDC, Groupama, Electricité de France,
Groupama,
BNP Paribas, Société Générale, Dexia , Groupe Axa, Assurances Générales de
Dexia,
France, Eurazeo, Caisse Nationale des Caisses d'Epargne, Crédit Lyonnais,
Eurazeo,
Crédit Agricole Indosuez (Switzerland) on behalf of customer, Crédit Mutuel
Switzerland) customer,
CIC, Generali, Groupe CNP, Crédit Agricole Indosuez (Switzerland) for its own
Generali, Switzerland)
account,
account, Médéric Prévoyance, Wasserstein Family Trust
NB : EDF owns 34% of Dalkia
2002, Annual Results – March 2003 7

8. 2. Industrial Profile
2002 :
The increase in year end results confirms the
soundness of our business model
2003 :
A new indicator (ROCE) is put in place in order to
optimise growth versus FCF
2002, Annual Results – March 2003 8

9. 2002 key figures
In €m 2002/2001
Exchange rate
Dec.31, 02 Dec. 31, 01
Current Constant
n Revenue 29,127
30,079
n Revenue from core businesses 28,073 26,513 +5.9% +7.2%
n EBITDA 3,887 3,760
n EBITDA from core businesses 3,727 3,480 +7.1% +8.0%
n EBIT 1,971 2,013
n EBIT from core businesses 1,847 1,813 +1.9% +3.2%
n Net income 339 (2,251)
n Recurring net income 429 420
n Recurring net income per share (in €) 1.16 1.20
n Dividend (in €) (1)
0.55 0.55
n Dividend pay out ratio 47% 46%
n Net debt 13,066 14,283
Number of shares: 405,070,459
Average number of shares in 2002: 370,213,187
(1) excluding tax credit and subject to the approval of the Shareholders Meeting on April 30
2002, Annual Results – March 2003 9

10. Unchanged strategy built around one
business: Environmental Services
n The only pure player in Environmental Services
n 4 well-matched divisions
è Water
è Waste
è Energy services
è Transportation
n Positions in high-potential markets such as Water
n Growth ensured by a balanced customer mix (municipalities
~65% of revenue; manufacturing and service customers ~35%)
n Secure geographical coverage
Over 95% of revenue generated in industrialized countries with
stable political and monetary systems
n Future cash flows that are recurring and undergoing growth:
€30 billion additional backlog in 2002
2002, Annual Results – March 2003 10

11. Main municipal and industrial contracts
Order backlog won in 2002: €30 billion
In €m Backlog
n Pudong 50 yrs China 10,000
n Redal (Rabat) 27 yrs Morocco 4,500
n Prague 15 yrs Czech Republic 2,700
n Indianapolis 20 yrs USA 1,500
n The Hague 30 yrs Netherlands 1,500
n Zhuhai 30 yrs China 390
n Baoji 23 yrs China 265
n Atlanta 20 yrs USA 200
n Gera 10 yrs Germany 100
n Alon 20 yrs USA 75
n French industry - France 68
n Richmond 20 yrs USA 59
n Oklahoma City 5 yrs USA 36
n Freyming – Merleback 12 yrs France 35
n California Microfiltration 1 yr USA 25
n Lens – Liévin 13 yrs France 17
n Toulouse 17.5 yrs France 16
n Narbonne 18 yrs France 15
n East Sussex 25 yrs UK 1,000
n Westminster 7 yrs UK 350
n Nouméa 30 yrs New-
New-Caledonia 350
n Marne 20 yrs France 306
n Borough of Camden 7 yrs UK 190
n Charleston (South Carolina) 7 yrs USA 119
n Singapore 5 yrs Singapore 45
n SNCF 6 yrs France 43
n Savannah (Georgia) 6 yrs USA 41
n Portsmouth 7 yrs UK 38
n Ford 3 yrs USA 10
n Water n Waste n Energy services n Transportation
2002, Annual Results – March 2003 11

12. Main municipal and industrial contracts
Order backlog won in 2002: €30 billion
Backlog
In €m
n Poznan 25 yrs Poland 1,700
n BP Lavera 12 yrs France 498
n " " 11 yrs France 387
n Resonor 24 yrs France 437
n Ahlstrom 10 yrs UK 72
n Manuli Films 10 yrs Italy 70
n Arcelor 15 yrs France 65
n Viry-
Viry -Châtillon 24 yrs France 48
n Aulnay 12 yrs France 42
n Majid 10 yrs United Arab Emirates 41
n Parme 9 yrs Italy 34
n Fortalezza 5 yrs Brazil 31
n Setuza 15 yrs Moravia 29
n Futuroscope 3 yrs France 26
n ATM Milano 5 yrs Italy 23
n Rhodia 15 yrs France 21
n Prince Charles Hospital, Wales
Hospital, 20 yrs UK 18
n Boston 5 yrs USA 1,000
n Jerusalem Tramway 27 yrs Israel 459
n Rikstrafiken 5 yrs Sweden 190
n Em-Senne-
Em-Senne -Weser 10 yrs Germany 180
n Certus 10 yrs Slovenia 170
n Dublin 5 yrs Ireland 157
n Bus Sleska 20 yrs Czech Republic 124
n Washington D.C. area 5 yrs USA 80
n Eskilstuna 6 yrs Sweden 56
n Los Angeles 5 yrs USA 50
n Water n Waste
2002, Annual Results – March 2003
n Energy services
12
n Transportation

13. 55% of revenue earned outside France but low
exposure to the emerging markets
Asia 4%
Other 2%
Latin America 2%
France
North America 12% 45%
Rest of Europe 35%
8% of revenue earned in countries rated ≤ A-
2002, Annual Results – March 2003 13

14. Revenue by Division : growing despite a weak
economic climate
Organic growth
Dec. 31, Dec. 31, at constant
In €m 2002/2001
2002 2001 exchange rates
n Water 11,288 11,027 +2.4% +4.0%
n Waste 6,139 5,914 +3.8% +5.0%
n Energy services 4,571 4,017 +13.8% +6.3%
n Transportation 3,422 3,099 +10.4% +4.5%
n FCC 2,653 2,455 +8.1% +8.5%
TOTAL 28,073 26,513 +5.9% +5.0%
2002, Annual Results – March 2003 14

15. Recurrence of cash flows : Water and Waste
generate 70% of EBITDA
In €m Dec. 31, 2002 r 2002/2001 2002 margin
n Water 1,604 +6.8% 14.2%
n Waste 949 +1.8% 15.5%
n Energy services 576 +20.8% 12.6%
n Transportation 291 +13.1% 8.5%
n FCC 354 +8.7% 13.3%
n Holding company (47)
n Total core businesses 3,727 +7.1% 13.3%
n Non-core businesses 160
n Total 3,887
2002, Annual Results – March 2003 15

16. The world leader position in Water
strengthens the VE industrial profile
(In €m) 2000 1,847
1800 1,813
1600
1400
1200 900
1000 875
800
600 385
391 244 250
400 229
221 116
200 112
0
Water (1) Energy Transportation FCC Total
Waste
services
Dec.
Dec.31, 02/Dec. 31, 01
02/Dec. +2.9% +9.1%
-1.4% +10.7% +3.1% +1.9%
At constant + 2.4% + 9.0%
+ 4.2% +2.9% + 9.4% +3.2%
exchange rate
(1) +5% excluding Proactiva at constant exchange rate (Onyx scope)
n Dec.
Dec. 31, 2002
n Dec. 31, 2001
Dec. Annual Results – March 2003
2002, 16

17. The “J curve”: in the short term, growth impacts on
ROI
In €m Maintenance Growth Comments
Pudong,
Pudong,Czech Republic , Morocco,
Republic, Morocco,
n Water 584 1,242 USA
Major projects in France, Sheffield,
n Waste 383 461 Hampshire
n Energy Contract in Estonia, Poznan in
Estonia,
services 96 340 Poland
Acquisition of Verney, Stockholm
Verney,
n Transportation 108 159 metro
n FCC
and Proactiva 152 213
1,323 2,415
Capital expenditure and investment acquisitions : €3.7bn, against
€4bn in 2001
2002, Annual Results – March 2003 17

18. One business : Environmental Services
Strengthening of the core business in 2002
In €m
Bristol Waterworks February 02 37
Filtration & Separation April 02 378
Plymouth Products September 02 126
Philadelphia Suburban Corp. September 02 207
South Staffordshire October 02 131
Distribution November 02 472
Bonna Sabla December 02 98
Miscellaneous tangible assets 203
Other financial disposals 119
TOTAL €1,771m
Over €1.7 billion in completed disposals: beyond target
2002, Annual Results – March 2003 18

19. 2002 : VE has self-financed its growth
Cash flow generation up significantly : +36%
In €m 2002 2001
è Cash flow from operations +13% 2,780 2,455
è Maintenance capital expenditure (1,323) (1,382)
Cash flow available before growth +36% 1,457 1,073
è Capital expenditure for growth (2,415) (2,670)
è Disposal of assets 1,771 598
è Change in scope of consolidation (525) (460)
è Change in working capital requirement (464) (1) 437 (2)
Cash flow before financial transactions (176) (1,022)
è Change in capital 1,554 411
è Impact of exchange rate, dividends and other (161) (484)
Cash flow for the year after capital increase 1,217 (1,095)
Net debt at start of year 2002 (14,283) (13,187)
Net debt at end of year 2002 (13,066) (14,283)
(1) Includes €223m increase related to the reduction in the French securitization program
(2) Includes €815m reduction related to the introduction of the French and US securitization program
2002, Annual Results – March 2003 19

20. Profitable growth : FFO +32% in 2 years at € 2.7G;
potential FCF (before growth ) : € 1.4 G
(before growth)
3000
2,780 Net debt / EBITDA (x)
In €m
2500 2,455 2002: 3.4 (x)
4 2001: 3.8 (x)
2,100 2000: 4.0 (x)
3.9
2000
3.8
3.7
1,457
1500
3.6
1,073 3.5
1000 +32% 3.4
758
+92% 3.3
500 3.2
3.1
0 3.0
n 2000 n 2001 n 2002 n 2000 n 2001 n 2002
Cash flow from operations Cash flow available
2002, Annual Results – March 2003 20
before growth

21. Industrial flexibility : VE can afford to balance
growth / FCF
n Average revenue growth in core business of
4–8% per year from 2002 to 2005
n Profitability improvement: increase in ROCE for
each division, based on:
è Maturing of contracts signed since 1999
è Productivity improvement efforts
è Implementation of synergies
è Selective investment policy
è Active management of asset portfolio
2002, Annual Results – March 2003 21

22. Key indicator: ROCE
(EBIT – group tax + companies accounted for by equity method)
companies method)
ROCE (1) =
Average capital employed for the year
Capital employed = Gross goodwill - amortization+ fixed assets
+ working capital requirements
+ equity method securities
– provisions for risks and liabilities – other LT liabilities
(1) These figures are calculated based on data for the core businesses.
businesses.
n A suitable tool for growth/capital decisions
è Strong potential growth and synergies
è Context of scarce capital
n A consistent and measurable operating indicator
n 2002 group ROCE: 6. 4% (including 2% impact from major
acquisitions
2002, Annual Results – March 2003 22

23. Permanent balance between growth and FCF
Key indicator: ROCE
2005 targets for growth and ROCE
8,5%
CA 2005 : +4% CAGR
8,0%
7,5%
ROCE
7,0%
6,5% 2002
CA 2005 : +8% CAGR
6,0%
5,5%
5,0% In €m
23 000 25 000 27 000 29 000 31 000 33 000 35 000 37 000
Core business revenue
2002, Annual Results – March 2003 23

24. 3. Financial Profile
Success in 2002:
Strengthening of financial flexibility
2003 Target:
To extend debt maturity
using the bond markets
2002, Annual Results – March 2003 24

25. Financial flexibility improved :
1- Renegotiation of covenants
n Extension of average debt maturity over 4 years
n Significantly stronger financial ratios: 40% improvement in
coverage ratio in two years
Financial ratios
2002 2001 2000
n EBITDA/financial expense (x) 5.1 4.8 3.7
n Net debt/EBITDA (x)
3.4 3.8 4.0
Covenants
n Interest coverage ratio (x) 5,7 (>4)
n Debt payout ratio (x)
3,5 (<4,25)
2002, Annual Results – March 2003 25

26. Financial result : € 150 M improvement in 2002
In €m 2002 2001 r
n Cost of financing (681) (764) 83
n Other financial income and expenses (25) (34)
Recurring
è Amort. of premium (mainly Océane) (33)
è Other 8
Non-recurring 58
è Capital gain from PSC disposal 110
è Depreciation of treasury stock (32)
è Other (20)
n Net financial result (648) (798) 150
Average 2002 interest rate 4.25% (2001 : 4.85%)
2002, Annual Results – March 2003 26

27. Structure of gross debt
Currency Type of rate
(after hedging)
Others 10%
Floating rates 49%
USD 22%
Fixed rates 51%
EUR 68%
2002, Annual Results – March 2003 27

28. Diversification of funding sources
Commercial paper
7%
Bonds
26%
Bilateral facilities
39%
Océanes
9%
Syndicated loans
19%
2002, Annual Results – March 2003 28

29. Borrowers within VE
Proportional
consolidation Subsidiaries
14% 16%
Project
Financing
structures
12%
Subsidiaries
84%
12%
Vivendi Environnement
62%
Vivendi Environnement
2002, Annual Results – March 2003 29

30. 2003 Target : continue extension of average debt
maturity : ~ 4 years at the end of 2002
Bonds 5.7 billion €
In M€
3000
LT Banking Debt 7.4 billion €
2500
2000
1500
1000
500
0
06
10
07
11
12
03
04
05
08
09
13
14
20
20
20
20
20
20
20
20
20
20
20
20
>
n Bonds n Banks
The bond market is a natural source of funds for the Group.
2002, Annual Results – March 2003 30

31. LT Ratings : S&P àBBB+ / O s
Moody’s àBaa1 / O -
è ST Ratings confirmed A2 (S&P), P2 (M)
n One success : withdrawal from S&P “credit cliff list ” in
December 2002
è Removal of all ratings triggers
è Easing of covenant levels
è Extension of the average debt maturity
è BBB+ rating stable
2002, Annual Results – March 2003 31

32. LT Ratings : S&P àBBB+ / O s
Moody’s àBaa1 / O -
n One disappointment : Moody’s retains a negative outlook
despite the elimination of the Shareholder risk
èThe negative outlook was the result of the Xdefault of Vivendi
Universal, cleared up in August 2002
èThe last press release on March 3rd states : “ VE has made
significant progress in 2002 in improving the financial arrangements of
facilities by removing all rating triggers that could lead to acceleration
and by increasing headroom under its financial covenants.
The negative outlook reflects Moody’s views regarding the needs for
further strengthening in areas including liquidity, increasing the
availability and maturity profile of its financing arrangements, and
reducing the growth trends in its underlying capital expenditure levels.”
2002, Annual Results – March 2003 32

33. The 2002 financial results strengthen the
soundness of our business model
n Strong stability in cash flows secured by a total backlog of more
than 10 years revenue
n Low sensitivity to economic position, especially in Water business
nLow customer risk
n Low country risk
The group became mature in 2002. This “emancipation” will be totally
achieved with the change of corporate structure and the change of
name (on the agenda of the next shareholder’s meeting).
2002, Annual Results – March 2003 33

34. Our 2003 targets
n Ratios : improvement
è 2003 : positive free cash-flows after disposals and
growth capex
è ≥ 2004 : positive free cash-flows
n Debt :
è Stabilization or even reduction
è Extension of duration by using bond markets
n Rating :
è Maintain or even improve our LT and ST ratings
2002, Annual Results – March 2003 34

35. Vivendi Environnement representatives
n Jérôme Contamine
Senior Executive Vice President and Chief Financial Officer
n Philippe Messager
Senior Vice President – Group Treasurer
38 Avenue Kléber – 75116 Paris / France
Phone number: +33 1 71 75 01 70
Fax: +33 1 71 75 10 13
E-mail: philippe.messager@groupve.com
n Nathalie Pinon
Director of Investor Relations
38 Avenue Kléber – 75116 Paris / France
Phone number: +33 1 71 75 01 67
Fax: +33 1 71 75 10 12
E-mail: nathalie. pinon @groupve.com
Web Site: http//www.vivendienvironnement-finance. com
2002, Annual Results – March 2003 35