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| | IFRS Fiscal Year 2004 results  Investors Relations

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|Veolia Environnement is a corporation listed on the NYSE and Euronext Paris. This document contains « formard-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 risks associated with conducting business in some countries outside of Western Europe, the United States and Canada, the risk that changes in energy prices and taxes may reduce Veolia Environnements profits, the risk that we may make investments in projects without being able to obtain the required approvals for the project, the risk that governmental authorities could terminate or modify some of Veolia Environnements contracts, the risk that our long-term contracts may limit our capacity to quickly and effectively react to general economic changes affecting our performance under those contracts, 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 Environnemnt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.
      This document contains non-GAAP financial measures within the meaning of Regulation G adopted by the U.S. Securities and Exchange Commission under the U.S. Sarbanes-Oxley Act of 2002. These non-GAAP financial measures are being communicated and made public in accordance with the exemption provided by Rule 100(c) of Regulation G.
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|                                                    | International financial reporting standards (IFRS) : the main impacts for Veolia Environnement on the Fiscal Year 2004 results
|--------------------------------------------------- | ------------------------------------------------------------------------------------------------------------------------------
|                                                    | The IFRS impacts posted as at 31/12/04 are in line with our forecasts announced February 4th, 2005 during the IFRS workshop.; 
|                                                    | The main impacts on the income statement are as follows:                                                                      
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|IFRS Fiscal Year 2004 results  Investors Relations |                                                                                                                               
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|                                                    | International financial reporting standards (IFRS) : the main impacts for Veolia Environnement on the Fiscal Year 2004 results                                                                               
|--------------------------------------------------- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|                                                    | The main impacts on the balance sheet as at 31/12/04 are as follows:                                                                                                                                         
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|                                                    |                                                                                                                                                                                                              
|                                                    | Outstanding point:accounting for concession-type contracts. Preparatory work for Draft IFRIC interpretations is underway. The interpretations are to be published in 2005 and to be applicable in early 2006.
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|IFRS Fiscal Year 2004 results  Investors Relations |                                                                                                                                                                                                              
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|                                                    | From French GAAP revenue to IFRS revenue (revenue from ordinary activities)
|--------------------------------------------------- | ---------------------------------------------------------------------------
|                                                    |                                                                            
|                                                    |                                                                            
|                                                    | French GAAP revenue                                                        
|                                                    |                                                                            
|                                                    | IFRS restatements                                                          
|                                                    | Charges and taxes paid to public authorities (Third-party revenue)         
|                                                    | Repayment of financial receivables  IAS 17 & IFRIC 4                      
|                                                    | Discontinued operations                                                    
|                                                    | Other items                                                                
|                                                    | Total IFRS restatements                                                    
|                                                    |                                                                            
|                                                    | IFRS revenue (revenue from ordinary activities)                            
|IFRS Fiscal Year 2004 results  Investors Relations |                                                                            
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|                                                    | From EBITDA under French GAAP to Cash flow from operations under IFRS           
|--------------------------------------------------- | --------------------------------------------------------------------------------
|                                                    |                                                                                 
|                                                    |                                                                                 
|                                                    | EBITDA under French GAAP                                                        
|                                                    |                                                                                 
|                                                    | IFRS restatements                                                               
|                                                    | Other cash income and expense                                                   
|                                                    | Changes in provisions                                                           
|                                                    | Cash restructuring costs                                                        
|                                                    | Repayment of financial receivables  IAS 17 & IFRIC 4                           
|                                                    | Other items                                                                     
|                                                    | Total IFRS restatements                                                         
|                                                    | Cash flow from operations (excluding FCC & North America Assets sold) under IFRS
|IFRS Fiscal Year 2004 results  Investors Relations |                                                                                 
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|                                                    | From EBIT under FrenchGAAP
              to Operating income under IFRS       
|--------------------------------------------------- | ------------------------------------------------------------------------------
|                                                    |                                                                               
|                                                    |                                                                               
|                                                    | EBIT under French GAAP                                                        
|                                                    |                                                                               
|                                                    | IFRS Presentation                                                             
|                                                    | Restructuring costs                                                           
|                                                    | Goodwill amortization & depreciation of intangible assets with indefinite life
|                                                    | Other income and expense                                                      
|                                                    |                                                                               
|                                                    | Operating income restated under French GAAP                                   
|                                                    | IFRS restatements                                                             
|                                                    | Elimination of Goodwill amortization  IAS 36                                 
|                                                    | Component -based approach  IAS 16                                            
|                                                    | Other items from Contractual analysis                                         
|                                                    | Intangible assets  IAS 38                                                    
|                                                    | Provisions  IAS 37                                                           
|                                                    | Total IFRS restatements                                                       
|                                                    |                                                                               
|                                                    | Operating income under IFRS                                                   
|IFRS Fiscal Year 2004 results  Investors Relations |                                                                               
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|                                                    | Breakdown of the 2004 IFRS Operating income         
|--------------------------------------------------- | ----------------------------------------------------
|                                                    |                                                     
|                                                    |                                                     
|                                                    | Operating income under IFRS                         
|                                                    |                                                     
|                                                    | Non-recurring operating income under IFRS           
|                                                    |                                                     
|                                                    | Loss on sale of Berlikomm                           
|                                                    | Resolution of lawsuit in Italy                      
|                                                    | Impairment loss in North of Europe in Transportation
|                                                    |                                                     
|                                                    |                                                     
|                                                    | Recurring operating income under IFRS               
|                                                   
|IFRS Fiscal Year 2004 results  Investors Relations |                                                     
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|                                                    | From Net income under French GAAP to Net income under IFRS as at 31/12/04                                                         
|--------------------------------------------------- | ----------------------------------------------------------------------------------------------------------------------------------
|                                                    |                                                                                                                                   
|                                                    |                                                                                                                                   
|                                                    |                                                                                                                                   
|                                                    | Net income under French GAAP                                                                                                      
|                                                    |                                                                                                                                   
|                                                    | IFRS restatements                                                                                                                 
|                                                    |                                                                                                                                   
|                                                    | Elimination of goodwill amortization  IAS 36                                                                                     
|                                                    |                                                                                                                                   
|                                                    | Elimination of currency gains and losses & related tax charges relative to US disposals recorded in the IFRS opening balance sheet
|                                                    |                                                                                                                                   
|                                                    | Other items                                                                                                                       
|                                                    |                                                                                                                                   
|                                                    | Total IFRS restatements                                                                                                           
|                                                    |                                                                                                                                   
|                                                    | Net income under IFRS                                                                                                             
|                                                    |                                                                                                                                   
|IFRS Fiscal Year 2004 results  Investors Relations |                                                                                                                                   
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|                                                    | From French GAAP shareholders equity to IFRS shareholders equity as at 31/12/04
|--------------------------------------------------- | ---------------------------------------------------------------------------------
|                                                    |                                                                                  
|                                                    |                                                                                  
|                                                    |                                                                                  
|                                                    | Shareholders' equity under French GAAP                                           
|                                                    |                                                                                  
|                                                    | IFRS restatements                                                                
|                                                    |                                                                                  
|                                                    | Veolias holdings of its own shares                                              
|                                                    |                                                                                  
|                                                    | Other items                                                                      
|                                                    |                                                                                  
|                                                    | **Total IFRS restatements**                                                      
|                                                    |                                                                                  
|                                                    | Shareholdersequity under IFRS                                                   
|                                                   
|IFRS Fiscal Year 2004 results  Investors Relations |                                                                                  
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|                                                          | Reconciliation of debt under French GAAP to debt under IFRS as at 31/12/04                                                                       
|--------------------------------------------------------- | -------------------------------------------------------------------------------------------------------------------------------------------------
|(In €m)                                                   | Net financial 
        debt(1)(a)                                                                                                                
|                                                          |                                                                                                                                                  
|French GAAP post French Fin. Sec. Act. (LSF)              | 12,287                                                                                                                                           
|TSAR(subordinated loan notes redeemable by pref. shares)  | 298                                                                                                                                              
|Cogevolt deferred income                                  | 516                                                                                                                                              
|Local authority borrowings                                | 113                                                                                                                                              
|Reclassification of derivatives                           | 86                                                                                                                                               
|Reclassification of acquired mutual fundsunder cash & eq. | -1,212                                                                                                                                           
|Veolias holdings of its own shares                       | 0                                                                                                                                                
|Reconsolidation of sales of Dailly and sim. items         | 824                                                                                                                                              
|Other items                                               | 46                                                                                                                                               
|Under IFRS                                                | 12,958                                                                                                                                           
|                                                          |                                                                                                                                                  
|Reclass. of tangible assets as financial receivables      |                                                                                                                                                  
|                                                          |                                                                                                                                                  
|Economic net debt                                         |                                                                                                                                                  
|                                                          |                                                                                                                                                  
|(1)                                                       | In line with the CNCs (French accounting council) definition of October 27, 2004, i.e. long term and short term debt  cash and equivalents, net
|IFRS Fiscal Year 2004 results  Investors Relations       |                                                                                                                                                  
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|                                                  | 2004 IFRS consolidated income statement
|------------------------------------------------- | ---------------------------------------
|                                                  |                                        
|Under French GAAP                                 |                                        
|                                                  |                                        
|Revenue                                           | 24,673                                 
|Cost of sales                                     | -20,611                                
|Selling, general and administrative costs         | -2,537                                 
|Other operating income (expense)                  | 92                                     
|= EBIT                                            | 1,617                                  
|                                                  |                                        
|Restructuring Costs                               | -51                                    
|Amortization of goodwill and depreciation         |                                        
|of intangible assets with indefinite life         | 253                                    
|= Operating Income                                | 1,313                                  
|                                                  |                                        
|Costs of financing                                | -602                                   
|Other financial income and expense                | -33                                    
|= Operating Income less net financial             |                                        
|expense before equity and minority interest       | 678                                    
|                                                  |                                        
|Other income and expense                          | -58                                    
|= Income before tax                               | 620                                    
|                                                  |                                        
|Income tax                                        | -182                                   
|= Net Income before equity and minority interests | 438                                    
|                                                  |                                        
|Equity in net income of affiliates                | 22                                     
|Minority interests                                | -127                                   
|Net income from discontinued operations           | -208                                   
|= Net Income (Group's share)                      | 125                                    

|IFRS Fiscal Year 2004 results  Investors Relations | 
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|                                                    | IFRS consolidated balance sheet at December 31, 2004  Assets
|--------------------------------------------------- | -------------------------------------------------------------
|(In €m)                                             | French
           GAAP                                       
|                                                    |                                                              
|Goodwill                                            | 3,558                                                        
|Other intangible assets                             | 1,859                                                        
|Tangible assets                                     | 13,844                                                       
|Investments accounted for using the equity method   | 225                                                          
|Non-current financial assets                        | 969                                                          
|Deferred tax, net                                   | 235                                                          
|Total Non-current assets                            | 20,690                                                       
|Current assets used in operations                   | 9,224                                                        
|Current financial assets                            | 2,073                                                        
|Cash and cash equivalents                           | 3,635                                                        
|Total Current assets                                | 14,932                                                       
|Assets from discontinued operations                 | _                                                            
|Total assets                                        | 35,622                                                       
|                                                   
|IFRS Fiscal Year 2004 results  Investors Relations |                                                              
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|                                                    | IFRS consolidated balance sheet at December 31, 2004  Shareholders Equity and Liabilities
|--------------------------------------------------- | -------------------------------------------------------------------------------------------
|(In €m)                                             | French
           GAAP                                                                     
|Shareholders equity (Groups share)                | 3,563                                                                                      
|Minority interests                                  | 2,056                                                                                      
|Total Shareholders equity                          | 5,619                                                                                      
|Subsidies                                           | 869                                                                                        
|Other long-term deferred income                     | 529                                                                                        
|Non-current provisions                              | 1,546                                                                                      
|Non-current financial debt                          | 10,801                                                                                     
|Other-non current debt                              | 274                                                                                        
|Total Non current liabilities                       | 14,019                                                                                     
|Current debt from operations                        | 9,737                                                                                      
|Current provisions                                  | 1,127                                                                                      
|Current financial liabilities                       | 4,610                                                                                      
|Bank overdrafts                                     | 510                                                                                        
|Total Current liabilities                           | 15,984                                                                                     
|Liabilities from discontinued operations            | _                                                                                          
|Total liabilities and shareholders' equity          | 35,622                                                                                     
|                                                   
|IFRS Fiscal Year 2004 results  Investors Relations |                                                                                            
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|                                                                         | IFRS consolidated Cash flow statement at December 31, 2004
|------------------------------------------------------------------------ | ----------------------------------------------------------
|                                                                         | (In €m)                                                   
|Cash flow from operations                                                | **3,461**                                                 
|Income tax paid                                                          | -238****                                                  
|Interest paid                                                            | -641****                                                  
|Change in « project financial receivables » I4                           | -47****                                                   
|Capital expenditures & financial investments                             | -2,532****                                                
|Change in working capital requirement                                    | 295****                                                   
|Disposal of industrial assets                                            | 314****                                                   
|Impact of consolidation scope & increase in capital (minority interests) | 52****                                                    
|Others                                                                   | 24****                                                    
|= Free cash flow                                                         | = 688****                                                 
|Disposal of assets                                                       | 2,151****                                                 
|Dividend                                                                 | -390****                                                  
|Increase in capital & share repurchase program                           | -138****                                                  
|Change in other financial receivables                                    | -27****                                                   
|Impact of currency exchange and other                                    | 149****                                                   
|= Change in the year                                                     | = 2,433****                                               
|Net financial debt at the beginning of year                              | -15,391****                                               
|Net financial debt at end of year                                        | -12,958****                                               
|                                                                        
|IFRS Fiscal Year 2004 results  Investors Relations                      |                                                           
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|                                                                                                                                                                                                       | Investor Relations contact information
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ | --------------------------------------
|Nathalie PINON,Head of Investor Relations38 Avenue Kléber  75116 Paris - FranceTéléphone +33 1 71 75 01 67Fax +33 1 71 75 10 12e-mailnathalie.pinon@groupve.com                                      
|                                                                                                                                                                                                      
|Brian SULLIVAN,Vice President, US Investor Relations 700 E. Butterfield Road -Suite 201 
      Lombard, IL 60148 - USATéléphone +1 (630) 371 2749     Fax +1 (630) 282 0423e-mailbrsullivan@onyxna.com
|                                                                                                                                                                                                      
|Web site http://www.veoliaenvironnement-finance.com                                                                                                                                                   
|IFRS Fiscal Year 2004 results  Investors Relations                                                                                                                                                    |                                       
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