A negotiable certificate of deposit representing one or more shares with a face value denominated in US dollars and the dividends of which are also paid in US dollars. An ADR allows a non-US company to be listed in the United States under certain conditions. Veolia Environnement’s shares were first floated on the New York Stock Exchange (NYSE) on October 5, 2001 in the form of an ADR. One Veolia Environnement share is represented by one Veolia Environnement ADR.

The AMF was established by the Financial Security Act of August 1, 2003 and formed from the merger of the Commission des opérations de bourse (COB), the Conseil des marchés financiers (CMF) and the Conseil de discipline de la gestion financière. Its task is to define the rules of financial markets, monitor these markets and protect shareholders. Under the Act, the AMF is also now responsible for the supervision of investment consultants and oversight of rating agencies and financial analysts. The AMF’s website is at: www.amf-france.org

All statutory publications issued by Veolia Environnement can be found in the “Bulletin des Annonces Légales Obligatoires” (the bulletin of mandatory legal notices): year-end results (consolidated and corporate), consolidated half-yearly results, quarterly revenue from ordinary activities, dividend amount, Shareholders’ Meeting notices, capital transactions, etc.

A negotiable debt security listed on a stock exchange that is redeemable upon maturity and earns interest over a specific period. The price of the bond varies with changes in interest rates.

Principal index published by Euronext Paris. It is calculated continuously from the prices of the shares of the 40 French companies most actively traded on Euronext regulated markets in Paris based on the criteria of size and liquidity. Veolia Environnement’s share has been included in the CAC 40 index since August 8, 2001.

The profit resulting from the difference between the sale price of a share and its purchase or subscription price. If this difference is negative, the loss is called a “capital loss”.

Net income earned by all Veolia’s companies after deducting minority interests’ profit or loss.

This concept refers to the various measures taken by a company to ensure transparency, shareholder equality and a balance of powers between management and shareholders. These mechanisms concern the ways in which the company’s strategy is developed and implemented, the way the Board of Directors is run, and the compensation policy applicable to executives and managers.

Fees deducted by a financial intermediary for maintaining a securities account. They generally represent a percentage of the portfolio or a fixed sum per position held. In Veolia’s case, custodial services for registered shares are provided free of charge by Société Générale.

A paid service used to defer settlement of a transaction or delivery of shares until the end of the month. Settlement occurs five trading days before the last business day of the month. Veolia Environnement’s share is eligible for DSS.

Portion of the company’s net earnings distributed to shareholders. The amount is voted on by shareholders at the Shareholders’ Meeting after the annual accounts are approved and the allocation of earnings is proposed by the Board of Directors.

Net EPS is the company’s net profit divided by the number of outstanding shares.

Euronext was formed on September 22, 2000 from the merger of the Amsterdam, Brussels and Paris stock exchanges. Euronext Paris operates the markets and ensures their security, transparency and development. It is authorized by the AMF to regulate the market. Its responsibilities include listing and delisting securities, broadcasting prices in real time, recording transactions and helping issuers to list their shares.

The face value of a share, also referred to as the par value or nominal value, is the portion of share capital represented by the share. The company’s capital shown on the balance sheet is the face value of the share multiplied by the total number of shares issued.

The ratio of financial debt, net of cash and cash equivalents, to shareholders’ equity.

The stock of a company whose earnings are growing rapidly and steadily and which therefore has strong potential to increase in value.

In accordance with the regulations of the European Parliament and the Council on the adoption of international accounting standards, Veolia Environnement has presented its financial statements based on International Financial Reporting Standards (IFRS) since January 1, 2005.

A group of people who collectively manage a securities portfolio into which regular payments are made. Income and capital gains are shared among the members.

A new identification number for stocks listed on an exchange, adopted by Euronext for the purpose of European standardization. This code first replaced the “Sicovam” codes and then “Euroclear”.

The value assigned to a company by the stock exchange at a given time. It is obtained by multiplying the number of outstanding shares by the share price.

Operating income is the same as EBIT in IFRS terminology and includes exceptional items, restructuring costs and goodwill amortization.

In IFRS, EBIT, an internal management indicator on the income statement, becomes operating income. Exceptional items, restructuring costs and goodwill amortization are now included under this heading.

The percentage of net income distributed to shareholders in the form of dividends. Veolia calculates this ratio on the basis of the Company’s recurring net income.

Created in 1992, the PEA is a French savings instrument used to invest in the stock market. Interest and capital gains are tax-exempt at the end of five years (with the exception of the CSG and CRDS general social security taxes, which are deducted at source). Veolia Environnement’s shares are eligible for PEAs.

PER is the ratio of the quoted share price to net earnings per share. It indicates the number of times the share price covers the earnings.

Minimum percentage of shares with voting rights that must be present or represented for the Shareholders’ Meeting to take decisions validly.

The Company’s net income excluding exceptional items, i.e., those that do not appear in the financial statements each year.

Price used to establish the opening price for the next trading session. It is the last quoted price or the last indicative price recorded in the trading system.

This is the ratio of net profit, before financial expense and after tax, to average capital employed. It reflects the return on funds invested by shareholders and lent by the banking and financial system.

Tours made in France and abroad by company executives to present their company to analysts and professional investors. They are announced in the company’s regular financial communications and often prior to a specific transaction (IPO, capital increase).

A certificate representing ownership of a percentage of a company’s capital. A share may earn a dividend and gives its owner voting rights. Shares may be listed on a stock exchange, but this is not a requirement. Veolia Environnement’s shares are listed on the Euronext Paris and New York stock exchanges (see ADR).

A subscription warrant, also simply called a warrant, entitles its holder to purchase a share at a pre-determined price and up to a given date.

A dividend on French shares entitles the shareholder to a tax deduction and a capped tax credit. For further information about the 2006 Finance Act, please contact your financial intermediary or tax advisor.