Welcome

Alan Katz

Vice President, Investor Relations

2

Safe Harbor and Cautionary Statements

All information included in this Analyst Day presentation is based on continuing operations, unless otherwise noted.

Forward-Looking Statements

Certain statements in this presentation may constitute "forward-looking" statements as defined in Section 27A of the Securities Act of 1933 (the "Securities Act"), Section 21E of the Securities Exchange

Act of 1934 (the "Exchange Act"), the Private Securities Litigation Reform Act of 1995 (the "PSLRA") or in releases made by the Securities and Exchange Commission (“SEC”), all as may be amended

from time to time. Such forward-looking statements involve known and unknown risks, uncertainties and other important factors that could cause the actual results, performance or achievements of

Covanta and its subsidiaries, or general industry or broader economic performance in global markets in which Covanta operates or competes, to differ materially from any future results, performance or

achievements expressed or implied by such forward-looking statements. Statements that are not historical fact are forward-looking statements. Forward-looking statements can be identified by, among

other things, the use of forward-looking language, such as the words "plan," "believe," "expect," "anticipate," "intend," "estimate," "project," "may," "will," "would," "could," "should," "seeks," or "scheduled

to," or other similar words, or the negative of these terms or other variations of these terms or comparable language, or by discussion of strategy or intentions. These cautionary statements are being

made pursuant to the Securities Act, the Exchange Act and the PSLRA with the intention of obtaining the benefits of the "safe harbor" provisions of such laws. Covanta cautions investors that any

forward-looking statements made by Covanta are not guarantees or indicative of future performance. Important assumptions and other important factors that could cause actual results to differ materially

from those forward-looking statements with respect to Covanta, include, but are not limited to, the risk that Covanta may not successfully grow its business as expected or close its announced or

planned acquisitions or projects in development, and those factors, risks and uncertainties that are described in periodic securities filings by Covanta with the SEC. Although Covanta believes that its

plans, intentions and expectations reflected in or suggested by such forward-looking statements are reasonable, actual results could differ materially from a projection or assumption in any forward-

looking statements. Covanta's future financial condition and results of operations, as well as any forward-looking statements, are subject to change and to inherent risks and uncertainties. The forward-

looking statements contained in this press release are made only as of the date hereof and Covanta does not have or undertake any obligation to update or revise any forward-looking statements

whether as a result of new information, subsequent events or otherwise, unless otherwise required by law.

Note: All estimates with respect to 2015 and future periods are as of August 12, 2015. Covanta does not have or undertake any obligation to update or revise any forward-looking statements whether as

a result of new information, subsequent events or otherwise, unless otherwise required by law.

Non-GAAP Financial Measures

We use a number of different financial measures, both United States generally accepted accounting principles (“GAAP”) and non-GAAP, in assessing the overall performance of our business. The non-

GAAP financial measures of Adjusted EBITDA and Free Cash Flow, as described and used in this Analyst Day presentation, are not intended as a substitute or as an alternative to net income, cash flow

provided by operating activities or diluted earnings per share as indicators of our performance or liquidity or any other measures of performance or liquidity derived in accordance with GAAP. In addition,

our non-GAAP financial measures may be different from non-GAAP measures used by other companies, limiting their usefulness for comparison purposes. The presentations of Adjusted EBITDA and

Free Cash Flow and Adjusted EPS are intended to enhance the usefulness of our financial information by providing measures which management internally use to assess and evaluate the overall

performance of its business and those of possible acquisition candidates, and highlight trends in the overall business. In each case, a reconciliation to the nearest GAAP measure is provided.

3

Management Overview

4

Stephen J. Jones

President &

Chief Executive Officer

Brad Helgeson

Executive Vice President &

Chief Financial Officer

Mike de Castro

Executive Vice President,

Supply Chain

Steve Bossotti

Senior Vice President

Covanta Metals Management

Alan Katz

Vice President,

Investor Relations

Matthew Mulcahy

Senior Vice President,

Head of Corporate Development

Derek Veenhof

Executive Vice President,

Sustainable Solutions

Paul Stauder

Senior Vice President,

Sustainable Solutions

Sami Kabbani

Vice President,

Energy

Agenda For The Day

5

Time Topic Presenter / Moderator

8:30 am – 8:40 am Welcome and Overview of Agenda Alan Katz

8:40 am – 9:15 am Strategic Overview Stephen J. Jones

9:15 am – 9:30 am Operations Overview Mike de Castro

9:30 am – 10:00 am State of Waste Derek Veenhof

10:00 am – 10:30 am Client Panel Moderator: Paul Stauder

10:30 am – 10:40 am Coffee Break

10:40 am – 11:05 am Energy Portfolio and Outlook Sami Kabbani

11:05 am – 11:30 am Metals Overview Steve Bossotti

11:30 am – 11:50 am Corporate Development – Business Growth Strategy Matthew Mulcahy

11:50 am – 12:20 pm Financial Review Brad Helgeson

12:20 pm – 12:25 pm Closing Remarks Stephen J. Jones

12:25 pm – 12:35 pm Break & Pick-Up Lunch

12:35 pm – 2:00 pm Panel Q&A

Key Questions for Today

6

Where are Covanta’s growth opportunities?

How are the core operations running? Discuss risks and opportunities around the core business.

Why is Covanta at an inflection point? Why will your performance in the future be

greater than in the past?

How will Covanta manage its commodity risk moving

forward?

Where are the global EfWopportunities today and how will you participate?

Are there any risks to the dividend? If no risks, why not?

Thank you for attending and we welcome your feedback

7

8

Strategic Overview

Stephen J. Jones

President & Chief Executive Officer

WHY ENERGY-FROM-WASTE? BENEFITS OF EfW

THE GLOBAL STATE OF EfW – ADDRESSABLE MARKETS

COMPANY OVERVIEW – FACTS AND FIGURES

CEO VISION – THE FIRST 200 DAYS IN OFFICE

A FOCUS ON GROWTH – COST EFFICIENCIES AND PROCESS IMPROVEMENT INITIATIVES

Discussion Topics

9

What is the Best Way to Address Waste?

10

The European Environment Agency and the U.S. EPA have both concluded that following

the waste management hierarchy generally maximizes energy savings

and minimizes greenhouse gas (GHG) emissions

REDUCE

REUSE

RECYCLE

RECOVER / ENERGY-FROM-WASTE

DISPOSE / LANDFILL

MOST DESIRABLE

LEAST DESIRABLE

EfW is Sustainable Waste Disposal

11

• Landfills are a major source of man-made methane

• Methane is 28 – 35x more potent than carbon dioxide over 100 years

• Non-sustainable use of land

• Renewable energy generation from landfills: ~65 kWh per ton of waste

• 90% reduction of waste in volume

• Clean energy generation

• Recovers metals for recycling

• Offsets on average one ton of carbon dioxide equivalent for each ton of waste processed

• Renewable energy generation from EfW: ~500 kWh per ton of waste

LANDFILL

EfW

TWO CHOICES FOR POST-RECYCLED WASTE

EfW produces over 9 times

the energy per ton compared

to landfills

And EfW is the Only Power Source Which Reduces GHGs

12

Sources: Sathaye et al. (2011) “Renewable Energy in the Context of Sustainable Development"; NREL Life Cycle Assessment Harmonization Results and Findings webpage, accessed 8/2015; U.S. EPA, NC State University, RTI International (2014) MSW Decision Support Tool.

-0.40

-0.20

0.00

0.20

0.40

0.60

0.80

1.00

1.20

Coal Natural Gas Nuclear Wind Solar (PV) EfW

Life

cycl

e G

HG

Em

issi

on

s (T

on

CO

2e

/ M

Wh

)

EfW reduces GHG emissions when including avoided

landfill CH4 emissions

ELECTRICITY SOURCES: GHG COMPARISON

EfW

The U.S. is Lagging in EfW

13

U.S. Germany Austria Sweden EU 27 Avg.

Italy UK Ireland Singapore Japan Taiwan China

U.S.89 facilities

31M TPY

Europe518 facilities

101M TPY

Asia1,554 facilities

139M TPY

Landfilling

Recycling /Composting

EfW

EfW IS USED EXTENSIVELY WORLDWIDE

Source: ecoprog 2013Note: “TPY” is Tonnes per Year

(% of Municipal Solid Waste (MSW))

But EfW is Growing Globally

14

• Growth is outside of the U.S.

– International geographies support EfW as a sustainable waste and renewable power source

Data partly estimated up to 2013; 2014 onwards forecasted Source: ecoprog

0

50

100

150

200

250

300

350

400

450

-

500

1,000

1,500

2,000

2,500

3,000

2009 2010 2011 2012 2013 2014F 2015F 2016F 2017F 2018F 2019F 2020F 2021F 2022F 2023F

Capacity (M TPY)# Facilities

Capacity (million tonnes / yr) # Facilities in Operation

Environmental Regulations Impacting Covanta

15

Direct / Indirect RuleImplementation

DateDescription Impact for CVA

Direct Clean Power Plan State plans due Summer 2016

States must develop a plan to reduce CO2 in existing coal power plants or increase renewable energy production and electric energy efficiency

Positive

IndirectMercury and Air Toxic Standards

Currently in effectEPA rule establishing national limits on the amount of mercury, acid gases, and other toxic pollution that power plants (e.g., coal and oil-fired) can emit

Positive

IndirectCross State Air Pollution Rule

Currently in effect

EPA rule requiring states to significantly improve air quality by reducing power plant emissions (SO2 and NOx) that contribute to ozone and / or fine particle pollution in other states

Positive

IndirectCarbon Pollution Standard for New Power Plants

ImmediatelyEPA rule setting standards of performance for new affected fossil fuel-fired electric utility steam generating units and stationary combustion turbines

Positive

DirectMunicipal Waste Combustor MACT

~2020 – 2022EPA is conducting a technical and residual risk review of MACT standards established in 1995 and 2005

No impact to negative impact

Covanta by the Numbers

16

30+ year operating history

41 EfW facilities in 18 states / provinces

(24 owned and 17 operated)

3,500 employees

110+ boilers

50+ turbine generators

20 million tons of waste processed

10 million MWh of power generated

500,000 gross tons of metal recovered

20 million tons of CO2 equivalent offset

OVERVIEW OF ASSETS AND ANNUAL OPERATIONS

We are the largest EfW operator in the world

Covanta is the EfW Leader

17

• CVA operates ~70% of the EfW capacity in the U.S.

• World’s largest EfW operator

• Focused on asset and facility-network optimization; existing EfW facilities also positioned for expansion

Corporate Headquarters

EfW LocationsTransfer Station LocationsTSD Locations

Initial Thoughts: First 200 Days as CEO

18

• Operating capabilities and experience

• Market knowledge

• Reputation as global EfW leader

• Strong client relationships

How will we leverage our strengths and opportunities?

to create shareholder value?

STRENGTHS:

• Limited greenfield

opportunities in U.S.

• Decentralized culture

CHALLENGES:

• Potential U.S. regulation

• Commodity market exposure

• EfW growth in global markets

OPPORTUNITIES:

Maximizing Value: Strategic Objectives

Current Business

• Consistent operating performance

– Safety and environmental

excellence

– Facility availability and

production

– Investment in long-term facility

performance

• Extending long-term contracts

• Cost efficiencies and process

improvement

Long-Term Growth

Maximize Shareholder Value

• Execute on new projects

– Dublin, NYC MTS contract, Pinellas

• Organic growth

– Expand profiled waste /

environmental solutions business

– Metal recovery

• Pursue strategic investment

opportunities

– Acquisitions and new projects

– North America, Europe, Asia

Artist Rendering Dublin EfW facility

Liquid Waste Processing

NYC Waste Transport via Barge

Non-Ferrous Metal Recovery System

19

How Will We Pursue Growth?

20

Leverage productivity improvement methodologies and cost efficiency initiatives

Efficient business development

Opportunistic M&A

Continued organic growth investment

Disciplined approach – Focus on Free Cash Flow

Leveraging LEAN / Six Sigma (LSS) to Improve Performance

21

LSS program: Find variation and focus on finding / eliminating waste to

improve value

Our Goal: Limit operating waste throughout the organization and find additional revenue opportunities

How to do this:

1. Repeat best-case performance on a regular basis

2. Analyze which plants have the greatest amount of variability between best and worst performance

(seasonally / monthly / daily) and then reduce it

3. Reduce variation to bring the system under tight control, then act to raise the performance bar

Which plants have the greatest performance variability (i.e., the greatest opportunities)?

• Large, tip fee plants with significant market / seasonal fluctuations (our largest contributors)

Our Goal: Getting to the 3rd Quartile

22

Moving to the 3rd quartile would have a significant EBITDA impact

Maximum value (that’s not an outlier)

Q3 - Third quartile (75th percentile) value

Minimum value (that’s not an outlier)

Q1 - First quartile (25th percentile) value

Median (50th percentile) – Middle (top) point

Outlier(s)

**

WE WANT TO GET HERE

25% of the data

25% of the data

25% of the data

25% of the data

First Steps Towards Productivity Gains

23

• Immediate activities

– Organizational changes, more accountability, best-in-class functions

• Plant-level assessments

• Accelerate use of low-cost country sourcing

• LSS

– Looking at both revenue and cost opportunities

– Methodology works well in large plant operating environment – “stable operations”

THERE’S MORE TO COME…

We’ll have updates as we go but this could be big. Best in class operations can achieve a 3 - 5% annual reduction in the cost stack from LSS

Summary

24

• EfW is an environmentally superior technology

• International growth of EfW shows a large addressable

market for our services

• Covanta is a proven leader in EfW and has a strong

operating and service reputation

• We see exciting organic growth opportunities leveraging

current assets

• Process improvement and cost efficiencies will add further value

• Capital allocation policy will support growth and further enhance shareholder value

Thank you.

25

Operations Overview

Mike de Castro

Executive Vice President, Supply Chain

26

Discussion Topics

COVANTA’S OPERATIONS PHILOSOPHY

EfW PROJECT UPDATE

HEALTH AND SAFETY ACHIEVEMENTS

ENVIRONMENTAL PERFORMANCE

PROCESSING PERFORMANCE AND AVAILABILITY

TURBINE GENERATOR AVAILABILITY

MAINTENANCE PROGRAM

27

Focused on Operating Excellence for All Stakeholders

28

Our Goals

• The safest possible working conditions

• Environmental excellence

• World class operations and maintenance

• Total customer satisfaction

• Shareholder value

• Complex operating system with diverse assets

10+ different combustion technologies

• Continued focus on the performance and reliability of Covanta’s / client’s operating assets

• Technical standards compliance remains the foundation of our approach

Safety Excellence

EnvironmentalExcellence

World Class Operations & Maintenance

Total Stakeholder Satisfaction

110+ EfWCombustion

Units

100+ Overhead

Cranes

50+ EfW

Turbine Generators

Safety is Our First Priority

PROACTIVE CONTINUOUS IMPROVEMENT SOLID WASTE INDUSTRY COMPARISON

Industry NAICS Code (1) 2014 Total Recordable Cases

SW Collection 562111 6.4

SW Landfill 562212 5.3

SW Combustors (EfW) 562213 1.8

Covanta N / A 1.1

0.00

2.00

4.00

6.00

2011 2012 2013 2014 2015

Covanta Total Recordable Cases

BLS Total Recordable Cases SW Combustors (EfW)OSHA VPP STAR worksites

Currently 39 facilities in program

CVA CONSISTENTLY OUTPERFORMS

STEP-UP ProgramSafety Leadership TrainingISNetWorld Contractor QualificationCompanywide Safety Power Talks

OUR GOAL… Continued World-Class

Safety Culture 1) The North American Industry Classification System (NAICS) classifies business establishments for the purpose of collecting, analyzing, and publishing statistical data related to the U.S. economy.

29

30.4% 29.9% 25.9% 26.1% 25.4% 26.9%

2009 2010 2011 2012 2013 2014

Operate Well Below Regulatory Limits

Covanta EfW Facility Emissions as a Percentage of Federal Permit Limits (2009 to 2014)

More than 5 years of operation without a single stack test failureOur Goal… Continuous Improvement

“The City is extremely pleased to continue managing our solid waste in an environmentally sustainable manner and generate clean, renewable energy locally.”

Mayor William D. Euille City of Alexandria, VA

CLEAN AIR Technology Award from the

U.S. EPA

2014

30

Plants Process ~20 Million MSW Tons and Generate ~10 Million MWh Annually

Produced over 8.5 million MWh of clean, renewable electricity

– Average Net Energy Recovery ~500 kw/ton

(Million Tons)

Convert ~20 million tons of municipal solid waste domestically into clean renewable energy

NORTH AMERICA EfW REFUSE PROCESSED (1)

15.015.8 17.0

19.0 19.0 18.5 18.4 18.719.6

2007 2008 2009 2010 2011 2012 2013 2014 2015E (2)

1) Excludes liquid waste2) Outlook as of 7/23/2015

NET ELECTRICAL POWER

EXPORT STEAM

Supplied more than 9.8 billon pounds of steam to a variety of industries – Export Steam Plants (6)

31

2014Pinellas Contract & Hudson Valley Exit

2013Camden

Acquisition

2009 / 2010Veolia Acquisition &

Detroit Exit

2012Hartford

Exit

Steady Processing Due to Excellent Availability

90.4%

91.6%91.2%

91.7%92.3% 92.5% 92.3%

2008 2009 2010 2011 2012 2013 2014

2005: 63 Units 2015: 113 Units10+ different combustion technologies

Achieved an average system availability of ~92% domestically

32

NORTH AMERICA EfW AVAILABILITY GROWTH IN NUMBER OF EfW BOILERS

Available92.3%

Scheduled Downtime

4.8%

Unscheduled Downtime

2.9%

Minimal Unscheduled Downtime: Less Than 3%

Causes of Downtime

% of Availability

Unscheduled 2.9%

Boiler 2.4%

Air Pollution Control 0.2%

Other 0.3%

• Plant availability has consistently been above 90%

• Majority of downtime (over 60%) is due to scheduled maintenance

• Primary cause for unscheduled downtime is due to boiler pressure part failure

• ~ 40% of maintenance expense and capex spent on boilers (1)

2014 SYSTEM AVAILABILITY

1) Average percent from 2009 - 2014.

33

Turbine Generator Reliability

• Turbine generator (TG) assets – 51 EfW sets

• Historically high availability faced issues in 2012 / 2013

– Overspeed failure

– Stress corrosion cracking

• Implemented equipment upgrades and proactive inspection and

maintenance programs to address concerns

– Since 2013, completed inspections on more than

75% of turbines

• Resulting efforts improved TG performance, enhanced safety and

strengthened long-term reliability

• ~5% of maintenance expense and capex spent on turbine generators (1)

34

1) Average percent from 2009 - 2014.

GENERATOR

REDUCTION GEAR

TURBINE

97.4% 96.7%

94.6% 95.0%

97.2%

2010 2011 2012 2013 2014

TURBINE GENERATOR AVAILABILITY

Continued Focus on Maintaining Major Assets

• Most plant systems and

components have a > 50 year

useful life

• Proactively maintain and replace

assets as necessary

to ensure a high level of

performance and reliability

• Expected capital requirements

captured in current maintenance

spend run rate expect to

grow with inflation

35

Cranes

Boilers

Turbine Generator

High Energy Piping Air Pollution Control

Electrical Controls & Infrastructure

Rotating Equipment

Building & Structure Cooling Water Systems

No Change to Maintenance Spend Outlook

• 2015 EfW maintenance plan execution on track –

total maintenance spend expected to be towards

lower end of FY 2015E range

‒ 2015 EfW maintenance YTD ~70% complete

• Q2 2015 and 2015E figures reflect reclassification of

capital expenditures at service fee operated facilities

as expense (1)

‒ Impact of $14 million and ~$30 million,

respectively

‒ Total EfW maintenance spend unchanged

TOTAL COMPANY(in millions)

Q2 2014A Q2 2015A 2015E

Plant Maintenance Expense:

North America EfW (1) $59 $81 $260 - $270

Other 3 4

Total $62 $85

Maintenance Capex:

North America EfW (1) $22 $26 $65 - $75

Other 3 3 ~15

Total $25 $29 $80 - $90

Total EfW Maintenance Spend $81 $107 $325 - $345

TRENDS AND OUTLOOK:

36

1) Per adoption of FACB ASC 853 – Service Concession arrangements, effective January 1, 2015. Accounting change does not impact total EfW maintenance spend

TRENDS AND OUTLOOK

Dublin Construction Underway and on Track

• Cornerstone infrastructure to support Irish compliance with EU

waste policy and provide clean, renewable energy

• State-of-the-art 600,000 metric tonne per year, 58 MW facility

• Approximately €500 million total capital investment

• Construction began in 2014 and is expected to be completed in

2017 Financial contribution to begin in late 2017

− 22% complete (1)

− 250,000 total man-hours to date; 250 workforce on site

− 0 Lost Time Accidents

• EPC contract with Hitachi Zosen – world leader in building EfW

facilities under equipment EPC arrangements

1) As of 6/30/2015.

MILESTONE ESTIMATED DATE

Notice to proceed financial close September 2014

HZI Mobilization June 2015

Turbine delivery Q1 - Q2 2016

First refuse fire Q1 - Q2 2017

Operational commencement Q2 - Q3 2017

Performance tests & acceptance Q3 - Q4 2017

37

ARTIST RENDERING OF DUBLIN EfW FACILITY

Dublin Site Aerial

38

A

B

C D

E

A = Site B = Cooling Water

C = Laydown Property (temporary)

D = Additional Laydown Property (temporary)

E = Shellybanks Site (road)

Significant Progress Has Already Been Made in Dublin

39

Show Dublin Time Lapse Video

TRENDS AND OUTLOOK:JUNE 2015TRENDS AND OUTLOOK:PRE-SEPT 2014

Pinellas: Long-Term Contract and 3-Year Construction Project

• 10-year service agreement commenced December

2014 – with two potential 5-year extensions

• County has reserved $150 million for completion of

refurbishment projects by Covanta

– Construction timeline: 2015 – 2018

– Cost-plus basis for construction project

• Major projects include repair or replacement of:

– Combustion unit pressure parts

– Combustion systems – stoker, grates, auxiliary

burners, combustion controls

– Air pollution controls

– Ash residue

– Refuse storage and handling – refuse cranes,

refuse pit

– Electrical, mechanical, instrument, and controls

systems

– Civil / site / buildings

40

Dedicated to Continuous Improvement Across Fleet

• Our goal is world class safety, environmental and operating performance

• Continued commitment to maintaining long-term reliability and performance of our assets through leveraging

operational and maintenance knowledge, best practices and work processes

• Strong focus on plant performance and investment of capital will provide long-term reliability

• Opportunities to improve performance through:

People – Technical training and employee development

Tools – LEAN / Six Sigma, Advanced Controls

Programs – Outage optimization, boiler and TG efficiency, mechanical integrity, strategic sourcing and equipment reliability

41

Thank you.

42

The State of Waste

Derek Veenhof

Executive Vice President, Sustainable Solutions

43

OVERVIEW OF WASTE ORGANIZATION

CUSTOMER MIX

CONTRACT TERMS AND TRANSITIONS

NEW YORK CITY MTS CONTRACT

ENVIRONMENTAL SOLUTIONS OPPORTUNITY

Discussion Topics

44

Structured to Meet Business Needs

• Regional EfW General Managers oversee P&L, asset management and development responsibilities on EfW assets

• Municipal services is focused on waste supply chain assets and logistics management

• Environmental Solutions is profiled waste sales, treatment storage and disposal facilities (TSD), and on-site services

45

Sustainable Solutions

EVP

Regional EfW

General Managers (5)

Municipal Services

(NYC & Transfer Stations)

Environmental Solutions

(Profiled Waste and Related Assets)

• 2015 North America waste asset infrastructure

– 41 Energy from Waste (EfW) facilities, 18 transfer stations, 6 TSD facilities and 4 ash monofills

– Customers deliver waste into our EfW facilities, TSD facilities and transfer stations

– Ash monofills take residue from EfW process

Attractive Footprint

46

Corporate Headquarters

EfW LocationsTransfer Station LocationsTSD Locations

$538$412

$80

~60% of CVA Revenue From Waste and Service

$ Millions

Service Fee

Environmental Solutions

Tip Fee

47

• Primarily derived in North America from sustainable waste offerings to municipal, commercial and industrial customers

• Tip fee and service fee revenue make up ~92% of our waste and service revenue

2014 NORTH AMERICA WASTE AND SERVICE REVENUE: $1.03 BILLION

2014 TOTAL OPERATING REVENUE: $1.68 BILLION

• Waste volumes ~50:50 split between tip fee facilities and

service fee facilities

• Annual contracted waste volumes exceed 80% with a

weighted average term for waste contracts of 7 years

Customer Mix and Contracts Provide Stability

CustomersFacilities

0

5

10

15

20

Tip Fee

Service Fee(operated)

Service Fee(owned)

0

5

10

15

20

Municipal

Commercial

Spot

EnvironmentalSolutions

83% committed disposal capacity

Ton

s in

Mill

ion

s

48

0 5 10 15 20

Huntsville

Lancaster

Harrisburg

Hennepin

York

Montgomery

Kent

Dade

Long Beach

Lee

Pinellas

Pasco

Burnaby

Hillsborough

MacArthur

H-Power

Durham York

Average ~8 Years Remaining on Contracts at Client-Owned Facilities

YearsNote: Based on contract status as of 7/31/15.

49

Average ~6 Years Remaining on Contracts at Covanta-Owned Facilities

* Service Fee (owned) facilities.

Note: Based on contract status as of 7/31/15.

50

Years0 4 8 12 16 20

Camden

Warren

Pittsfield

Lake

Indianapolis

Marion

SE Connecticut

Haverhill

Plymouth

Semass

Springfield

Tulsa

Babylon

Fairfax

Huntington

Alexandria

Delaware Valley

Bristol

Niagara

Essex

Union

Hempstead

Stanislaus

Onondaga*

*

*

*

*

Contract Transitions Represent Opportunity

• Successfully managed past contract headwinds

• Opportunity from tailwinds – we can build from a position of strength today

0

5

10

15

20

2015 2016 2017 2018 2019

Uncommitted Capacity

Committed Capacity

Tons in millions (est.)

51

EXISTING OPERATING EfW ASSETS

• 20 year base contract for providing transportation and disposal services

for two marine transfer stations (Northshore and E91st Street)

– $3 billion revenue contract (over 20 years) for ~800k tpy

– Covanta provides all MSW containers, barges, rail cars and ancillary

equipment plus labor at MTS for loading containers

onto barges

– EfW disposal is provided by Covanta Delaware Valley, PA and

Covanta Niagara, NY

New York City MTS Contract…

52

Marine transfer station

Intermodal facility

Rail transfer facility

Delaware Valley

Niagara

…Progressing Well

• NYC operations for Northshore MTS commenced in

March 2015

– Operations have been progressing satisfactorily

– Exited ramp-up phase, receiving our full service fee

– Niagara rail yard construction proceeding per plan; expecting

full operations by Q4 2015

• E91st Street MTS (pictured) is under active construction

– Awaiting notice to proceed

– Expected completion and startup late 2017

– Ramp up early 2018

53

New York City MTS in Action

54

Primary Factors Driving Tip Fee Pricing

55

• Low inflation environment negates near term benefit

• Long term protection

CPI Escalation

• Spot market needs greatest in low generation periods (winter)

Seasonality of Waste

• Transportation and disposal pressures – positive in Northeast

Transportation and Landfill

Pricing

• Very positive factor on tip fees – Key growth area

Profiled Waste

Environmental Solutions – Current State

• Profiled waste business has consistently shown 10% - 15% revenue growth on solids and liquids

– Doubled business in last five years, organically

56

~850k tons of Profiled Waste

20 million tons EfW annual capacity

Marketable capacityClient capacity

Profiled Waste

Note: Tons include both solid and liquid waste.

Environmental Solutions – Provides Growth Opportunity

• Displacement of additional ~2 million tpy of lower value waste (e.g., spot) enables a market opportunity to create incremental

value of at least $100 million from disposal of profiled waste

• Related services (e.g., on-site services, transportation, industrial recycling) create new growth revenue and profit opportunities

57

Profiled Waste could grow to ~3 million tons

Marketable capacityClient capacity

Profiled Waste

20 million tons EfW annual capacity

CVA Moves Up Waste Hierarchy

• Accentuate Covanta’s core competency and sector leading performance in safety, environmental and

sustainable practices

• Covanta Environmental Solutions’ value proposition is anchored by our unmatched network of EfW facilities

58

REDUCE

REUSE

RECYCLE

RECOVER / ENERGY-FROM-WASTE

DISPOSE / LANDFILL

MOST DESIRABLE

LEAST DESIRABLE

Environmental Solutions Growing Profiled Waste

• Covanta Environmental Solutions team –

“one stop solutions providers”

– 6 Treatment, storage and

disposal facilities

– Sales and customer support

– Environment, health and

safety personnel

– Logistics

– On-site services

59

Environmental Solutions Provides Full Suite of Service Offerings

60

Covanta ServicesInternalization

of Waste Opportunities

Expansion of Service

Opportunities

Move up Waste Hierarchy

De-packaging

Solidification

Shredding

Wastewater treatment

Material recycling and reuse

Professional services

Industrial services (cleaning, spill response, remediation, etc.)

E-waste

Logistics

Environmental Solutions – Assets

• Expand around our existing core EfW assets

– Manufacturing zone preference (auto, consumer goods, pharma)

– Develop a hub-and-spoke – consolidated material to gain efficiencies

61

Corporate Headquarters

EfW LocationsTransfer Station LocationsTSD Locations

CVA Environmental Solutions Provides Significant Growth Opportunity

• Covanta Environmental Solutions is a growth vehicle for Covanta

– EfW footprint is unmatched in North America

– Provides a network for customers requiring thermal destruction and zero landfill services for non-hazardous waste

• Covanta Environmental Solutions can grow to $250 - $300 million revenues via M&A and organic growth

– Internalization displaces MSW and provides new service revenue opportunities

• Highly complementary to our base business

62

Diversified Customer

mix

High Value Wastes

Talented Workforce

Expanded Solids and

Liquids Treatment Capability

Logistics

Focus

On-Site Services

Increase

% of Customer

Spend

New Geography

– More Gates

Thank you.

63

Covanta Client Panel

Paul Stauder

Senior Vice President, Sustainable Solutions

64

Panel Participants

• Jim Warner

– CEO, Lancaster County Solid Waste Authority

• Paul Mauriello

– Deputy Director for Waste Operations, Miami-Dade County Public Works and Waste Management Department

• Michael Jacobsen

– President - JACO Environmental, Inc.

65

Energy Portfolio and Outlook

Sami Kabbani

Vice President, Energy

66

POWER INDUSTRY PRIMER

CURRENT COVANTA EfW ENERGY BUSINESS

RISK MANAGEMENT POLICY

CHALLENGES AND OPPORTUNITIES

Discussion Topics

67

GROWTH PLAN

Changing Industry Environment

68

• Utilities are required to offer long-term Power Purchase Agreements (PPAs) to Qualifying Facilities

‒ Requirement of Public Utility Regulatory Policies Act (PURPA)

• Generally, attractive and predictable avoided-cost pricing

• Limited number of buyers (e.g., utilities)

PAST

• Utilities have limited requirements to purchase

• Highly efficient gas-fired generation and cheap shale gas

• Forward prices are relatively low and expected to be volatile

• Long-term contracts are not generally attractive at this point... with exceptions

• Capacity performance

• Regulation changes (e.g., RPS, Carbon rules (111d), MATS, MACT)

FUTURE

PAST:

PASTFUTURE:

Electric System Requires Real Time Balance Between Supply and Demand

69

GENERATION TRANSMISSION DISTRIBUTION CUSTOMER

ELECTRICITY CANNOT CURRENTLY BE STORED ECONOMICALLY

Power PlantGenerates Electricity

Transformer Steps Up Voltage For Transmission

Transmission Lines Carry Electricity Long Distances

Neighborhood Transformer Steps

Down Voltage

Distribution Lines Carry Electricity to Houses

Transformers on Poles Step Down Electricity Before it Enters Houses

Changing Industry Structure

70

Fed

era

lSt

ate

Generator A

Transmission

Distribution

Customer

Transmission Transmission

Customer

Distribution Distribution

Customer

Generator B Generator C

What is an ISO or Spot Market?

71

Key ISO Functions

1. Ensures system reliability

2. Safely operate the generation and transmission system

3. Ensures equal access to all participants

4. Operates spot markets

– Conduct auctions to match buyers and sellers

– Markets include energy, capacity, ancillary

services, and transmission rights

– Collect and distribute funds

ISOS IN THE UNITED STATESFUTUREPASTISOs IN THE UNITED STATES

Nature of Our Business

72

CONTRACTING APPROACH COVANTA DIFFERENTIATING FACTORS

• Positive fuel cost

• Reliable – 92% availability

• Renewable

• Located in populated “load” pockets

• Electricity: traditional utilities, Cities &

Munis, ISOs

• Steam: Industrial clients, refineries,

chemical, paper, district heating

• RECs: utilities and load serving entities

BASE-LOAD RENEWABLE

ENERGY

DIVERSE CUSTOMER

BASE

WH

OLE

SALE

QUALIFYING FACILITY (QF)

CONTRACT

RENEWABLE CONTRACTS

SPOT MARKET SALES

END-USER SALES

FUTUREPASTCONTRACTING APPROACH CONTRACTING APPROACHFUTUREPASTCOVANTA DIFFERENTIATING FACTORS

Multiple Sources of Energy Revenue

73

TYPICAL EFW MERCHANT PLANT

ENERGY

~80%

REC (1)

~5%

ANCILLARY

<1%~15%

CAPACITY

1) Renewable Energy Credits (REC) accounted for as a contra expense.

During Polar Vortex

Covanta’s Premium Locations in North America

• Covanta’s merchant assets concentrated in the constrained East

74

SPOT MARKET PRICESCOVANTA OPERATIONS

41 EfW Facilities in 16 States and 2 Canadian Provinces

Corporate Headquarters

EfW Locations

Transfer Station Locations

TSD Locations

Balancing Act Between Contracts and Market

• About one third of Covanta’s energy portfolio is contracted in 2019

– Expecting to reduce exposed portfolio as we hedge generation

• Covanta’s portfolio is exposed to the right market areas

– Exposure is concentrated in Eastern PJM and ISO NE

– Both areas are actively traded with large numbers of buyers / sellers

75

2015 2016 2017 2018 2019

PJM 30% 62% 64% 59% 59%

NEPOOL 26% 14% 18% 26% 26%

NYISO 11% 5% 3% 4% 4%

Other 33% 19% 14% 11% 10%

0%

20%

40%

60%

80%

100%

2015 2016 2017 2018 2019

Exposed 1.4 2.0 3.2 4.3 4.4

Hedged 1.3 1.6 0.8 0.1 0.0

Contracted 3.1 2.9 2.4 2.1 2.1

0.0

1.0

2.0

3.0

4.0

5.0

6.0

7.0CONTRACTING APPROACH COVANTA DIFFERENTIATING FACTORSFUTUREPASTCovanta’s EfW Portfolio – in million MWh CONTRACTING APPROACHFUTUREPASTCovanta’s Exposed EfW Position by Market Area

Drivers of PJM New Capacity Market

• Two extreme winters – no generation capacity

– 40 GWs were out-of-service during the peak of the

Polar Vortex

– Many plants did not have adequate gas supply service

– Generation was unable to provide power when

needed by PJM

– PJM was paying for capacity that did not perform

• The new market is designed to increase generator reliability

– Targeted performance requirements during

emergency events

– Very heavy penalties for non-performance

– No excuses, limited Force Majeure exceptions

76

Coal13,700MW34%

Gas Plant Outages9,700MW24%

Natural Gas Interruption

9,300MW23%

Nuclear1,400MW

3%

Other6,100MW

15%

TotalForced Outages

40,200MW(22% Total PJM

Capacity)

Source: PJM

The Emerging PJM Capacity Markets

77

• Performance measured during the summer using an

“averaging” concept

• Penalties are limited to:

‒ Refund of collected or to be

collected revenue

‒ Revenue loss, no out-of-pocket

‒ Plant deration; less capacity to

sell in future auctions

• Historically, the penalties were a non-issue for Covanta

CURRENT CAPACITY (BASE)

• Performance

‒ Measured by the hour

‒ During PJM-declared Emergency Events

• Penalties:

‒ Hourly penalty of $1,896 to $3,600/MWh

for each MW missed

‒ Penalty is capped at 1.5 times the offer

cap, ranging from $85K to $146K for each

missed MW

‒ Possible limited mitigation mechanisms

and over performance bonus

TRANSITION

NEW CAPACITY PERFORMANCE (CP)

Covanta is in High Priced Capacity Markets

Covanta’s position – 2016 / 2017 example

• Position is concentrated in the northeastern part of PJM where prices are high – in the $119 to $219/MW per day

• Only one location in the RTO region where prices are low $59

• Similar story in 2017 / 2018

78

Managing Our Market Risk Exposure

79

OBJECTIVE PROGRAM OVERVIEW

KEY OBJECTIVES

• Balance risk / reward

• Reduce downside, preserve upside

• Take risk view, not market view

• Designed to manage EfW exposure and reduce

revenue volatility for the next 12, 24, and 36

month periods

• Hedging is required when calculated risk exceeds

a pre-established thresholds

• Asset-based hedging, no speculative positions

permitted

• Operational risks mitigated by locational /

regional hedge % limits

• Various financial instruments are used to

implement required hedging (vanilla swaps,

option, collars, etc.)

Energy Portfolio Challenges and Opportunities

80

CHALLENGES OPPORTUNITIES

• Low energy price environment driven by ample

gas supply

• Limited long-term contract opportunities

• Challenging ISO and customer access rules

• Intermittent renewables creating difficulties to

control the grid stability

• Changing regulations

‒ EPA’s carbon regulations

‒ PURPA and avoided cost calculations

• Increasing demand for energy

‒ Recovering demand

‒ Return of energy-intensive industry

‒ Exports – LNG & Mexico

• New class of customers interested in stable / non-

fossil fuel pricing

• Emerging opportunities

‒ Distributed generation / microgrid

‒ Stable baseload renewable generation

‒ Flexible generation / storage

‒ Net metering

‒ New regulations

Evaluating / Pursuing New Growth Avenues

81

• Expand thermal energy sales

• Pursue favorable regulations

• Implement new energy efficiency program

• Expanded energy risk management program

• Flexible generation

• Energy storage

• Renewable generation

GET CLOSER TO CUSTOMER

ASSET OPTIMIZATION

SITE OPTIMIZATION

• Targeted marketing

• Leverage client relations

• Pursue high value opportunities

Thank you.

82

Metals Overview

Steve Bossotti

Senior Vice President, Covanta Metals Management

83

MARKET OVERVIEW AND PRICE DYNAMICS

HISTORICAL RECOVERY AND PERFORMANCE

INVESTMENTS BY METAL CATEGORY

METAL PROCESSING OPPORTUNITY

ENHANCED METALS OPPORTUNITY

ASH REUSE ACTIVITY

Discussion Topics

84

Domestic Steel Industry Summary View

85

CVA / EfW

Feeder Yards

Auto Shred

Industrial Scrap

Broker

China Turkey India

TaiwanSouth Korea

Mill:BOF / EAF

Export

Sorting /Secondary Processors

GENERATORS SORTERS / PROCESSORS

Finished Steel

Products

MILLS END PRODUCTSMARKETERS

Two methods for steel making: EAF (scrap) & BOF (iron ore)

Drivers of Ferrous Scrap Prices

Turkey

Brazil

• U.S. mill operating rates

(pricing power occurs above 75%)

• USD FX

• Value of iron ore

• Price points of imported steel billet

and semi-finished steel

• Availability of obsolete scrap

South Korea

Russia

China

Canada

Majority of steel produced from iron ore

86

At least 60% of U.S. steel production depends on HMS

Ferrous Pricing Driven by U.S. Dollar and Iron Ore

• Ferrous (Fe) market pricing down 40% since 2011; negatively correlated to USD

• At current Heavy Melt Steel (HMS) pricing our projects have ~5x EBITDA multiple

87

AVG $230

AVG $165

IRON ORE VS. HEAVY MELT STEEL GAP (2009-2015)

Drivers of Non-Ferrous Scrap Prices

88

USD INDEX VS. ALUMINUM VALUE (2010-2015)

Investments Still Make Sense Despite Market Price Volatility

• 40+ projects completed in 3 years; average investment return mid-teens

– Non-Ferrous (Non-Fe) gross tons up 126%; Ferrous gross tons up 16%

• Improved recovery results in

equivalent weight:

– 16 cars per week / facility

across the entire fleet

– 25,000 additional aluminum

cans per week

89

Zero Cost of Goods: Capturing

these metal tons offsets

approximately $16 million in

disposal cost

350,000

375,000

400,000

425,000

450,000

475,000

500,000

525,000

2011 2012 2013 2014 2015EFerrous Non-Ferrous

GROSS METAL RECOVERY SINCE PROGRAM INCEPTION

Investments Leading to Significant Recovery Increase

90

NON-FERROUS RECOVERY IMPROVEMENT VS. 2010(BASED ON GROSS TONS RECOVERED)

FERROUS RECOVERY IMPROVEMENT VS. 2010(BASED ON GROSS TONS RECOVERED)

-

5,000

10,000

15,000

20,000

25,000

30,000

Ferrous Tons Recovery from Investments

2010 2014 Incremental

-

1,000

2,000

3,000

4,000

5,000

6,000

Non-Ferrous Tons Recovery from Investments

2010 2014 Incremental

Operating Improvements Also Adding Meaningful Growth

91

NON-FERROUS RECOVERY IMPROVEMENT VS. 2010(BASED ON GROSS TONS RECOVERED)

FERROUS RECOVERY IMPROVEMENT VS. 2010(BASED ON GROSS TONS RECOVERED)

-

5,000

10,000

15,000

20,000

25,000

Ferrous Tons Recovery from Operational

2010 2014 Incremental

-

500

1,000

1,500

2,000

2,500

Non-Ferrous Tons Recovery from Operational

2010 2014 Incremental

Higher Recovery Crucial to Offsetting Impact from Price

• Metals market pricing driving $25 million decline in 2015

• Absent growth in recovery, revenues would have been down an additional $28 million + $4 million operating cost

92

$70

$95

$120

350,000

400,000

450,000

500,000

2011 2012 2013 2014 2015E

Ferrous Non-Ferrous Gross Metals Revenue ($ in Millions)

COVANTA METALS MANAGEMENT: GROSS METAL RECOVERY VS. REVENUE

Executing on Covanta Metals Management Strategy

93

1. “Base” project plan rollout

(8th inning)

• 40+ projects

implemented to date

• Created -3/8” non-ferrous

products

• 6 to 12 additional systems

opportunities

• Continue to learn and

optimize our operations

2. Processing metal

(5th inning)

• “Process” our own

ferrous to improve

quality of buyers

• Create margin through

separation of scrap grades

• Evaluation of non-ferrous

metal composition for

opportunity to create

higher grade commodities

3. Enhanced metal

(3rd inning)

• Focus on stainless steel

recovery and other “fine”

metals

• Initial full scale pilot

system installed and

being evaluated

• Design and financial

justification of 3 to 4

additional systems within

the next 12 months

4. Ash reuse

(1st inning)

• In house expertise

established

• Evaluating technology to

create aggregate fractions

for reuse in road bed and

several other applications

Create a More Sustainable Model for Metal Tons

94

Ferrous Upgrading Facility, Philadelphia Area – Q3 2015

• Upgrade ferrous metal to insure saleable product in all market conditions

• Better product will yield better quality buyers and market diversification

• Create bulk export and rail capabilities

• Evaluation underway for other key Ferrous market areas

• Similar evaluation is underway to maximize Non-Ferrous value as well

OBJECTIVES:

NEXT STEPS:

Implement Enhanced Metals Project Plan: Stainless Steel

• Hempstead enhanced recovery

system

– First in-line system of

its kind in EfW

– System started up in

Q1 2015

(< 5 months execution)

– First load of stainless steel

(mixed metal concentrate)

shipped in March

– System tuning is an ongoing

evolution to understand

metal compositional value

• Exploring additional opportunities

in various facilities

95

SENSOR SORTER TECHNOLOGY

Focus on Extracting Higher Quality Non-Ferrous Metal

96

Heavy red metals

Light white metals

Coins

Jewelry

Stainless

Mixed non-ferrous

Ash Reuse Efforts

97

Dedicated team for ash reuse

Added expertise in engineering and analysis to work with R&D

Intensive ash reuse sampling program

Analyzing chemical and geotechnical properties of ash by different fraction sizes and mapping seasonal variability

Experimentation

Conducting experiments internally and with third party organizations on reuse opportunities by fraction size based on knowledge gained from sampling program

Technology evaluation

Evaluating technology worldwide to develop best processes for EfW facilities and / or regional facilities

Testing / Evaluation of Ash Reuse

98

Experimenting with multiple ash reuse opportunities. Some notable options include:

Investigating use of bottom ash or a bottom

ash / fly ash mixture for use as cement kiln

feedstock in the production of Portland Cement

Experimenting with the use of select fractions of our bottom

ash as a substitute for natural sand and gravel (aggregate) in

the production of concrete blocks

Cement ConcreteAggregate

ASH

Summary

1) As of 6/30/2015

• Significantly increased metal recovery through new systems and operational improvements since 2011

– Invested $70 million to date(1) – at attractive rate of return

– Some additional system improvement and installation opportunities exist

• Higher recovery rates helping to offset market price decline

• Actively pursuing additional opportunities on the near and long-term horizon

– Metal processing: facility in place in greater Philadelphia exploring implementation at other plants

– Enhanced metals recovery system in place and processing at Hempstead evaluating other opportunities

– Ash reuse added personnel team is in experimentation phase

99

Thank you.

100

Corporate DevelopmentBusiness Growth Strategy

Matthew Mulcahy

Senior Vice President, Head of Corporate Development

101

GO-TO-MARKET STRATEGY

EfW MARKET DRIVERS

MARKET FOCUS

CASE STUDIES AND PIPELINE

ENHANCED METALS OPPORTUNITY

Discussion Topics

102

Go-to-Market Strategy

PROJECT DEVELOPMENT

M&A TUCK-INS

Portfolio Approachto Growth

PROJECTENHANCEMENTS

LARGE SCALEM&A

103

Multi-Pronged Approach to M&A

• Single-asset EfW plants as they become available

• Support growth of Covanta Environmental Solutions

• Increased utilization of Covanta’s existing network of infrastructure assets

• Disciplined pursuit of larger EfW assets and portfolios

TUCK-INS:

LARGE SCALE:

104

EfW Market Drivers

FAVORABLE GOVERNMENT POLICIES

WASTE AND LANDFILL DIVERSIONENVIRONMENTALRENEWABLE ENERGY

SHORTAGE OF LAND / LANDFILL SPACE

EUROPEISLAND NATIONS

CITIESURBANIZATION

LARGE URBAN POPULATIONSHEAVY INDUSTRY

AGING INTERNATIONAL FACILITIES

MANY FACILITIES ARE 40+ YEARS OLDLOW EFFICIENCY AND OUTDATED ENVIRONMENTAL CONTROL MECHANISMS

105

Where We Play Matters

Strong relationship between waste market maturity and GDP per capita

Increasing Per Capita GDP

Source: BofA Merrill Lynch

Incr

eas

ing

Envi

ron

me

nta

lR

egu

lati

on

s &

Eff

ect

ive

En

forc

em

en

t

• Majority of waste is collected

• Some source segregation

• Some regulations on solid waste management

Market Maturity Level

DEVELOPINGECONOMIESHygiene Management

DEVELOPINGWASTE MARKETSEnvironmental impacts Management

MATUREWASTE MARKETSResource Management

• Virtually all waste generated is collected and value is maximized

• Source segregation of materials; toxic materials disposed of separately

• Stringent regulations on solid waste management

• Collecting as much waste as possible, but limited by budget

• Lack of segregation of materials (“everything” in one bag)

• Little to no regulations around solid waste management

CVA “SWEET SPOT”

106

Selective Market Focus

Waste Market Maturity

Addressable Market

Government Support

Growth Potential to 2020

Market Accessibility

Investor Friendliness

Assessment Criteria ASIA (DEVELOPED)

ASIA (DEVELOPING)

AUSTRALIA & NEW ZEALAND

EUROPE (WESTERN)

EUROPE (EASTERN)

MIDDLE EAST & AFRICA

NORTH AMERICA

CENTRAL & SOUTH

AMERICA

JapanChina

SingaporeTaiwan

Representative Markets

IndiaIndonesiaThailandVietnam

AustraliaNew Zealand

Pacific Islands

UKIreland

GermanySpain

TurkeyPolandRussia

Balkans

GCCNigeriaEgypt

S. Africa

USCanada

BrazilMexico

Island nations

ATTRACTIVENESS

107

M&A

Sole Development

Development w/ Partners

-

-

-

-

-

PR

EFER

RED

A

PP

RO

AC

H

Country Capacity (1)

1 China 67.3

2 Japan 64.0

3 USA 32.8

4 Germany 27.4

5 France 17.1

6 UK 8.9

7 Italy 8.2

8 Taiwan 7.4

9 Netherlands 7.3

10 Sweden 6.3

Asia 51%

Europe 37%

North America 12%

Africa & Middle East < 1%

Market Concentration

% TOTAL CAPACITY BY REGION TOP 10 COUNTRIES BY CAPACITY (M TPY)

1) As of December 2013Source: ecoprog

85% of global EfW capacity concentrated in 10 markets

108

Between 2014 – 2023, major increase in capacity expectedAddition of 400 facilities and 100 million tons per year capacity worldwide

Note: Asia includes Australia and New Zealand. Data partly estimated up to 2013; 2014 onwards forecasted Source: ecoprog.

Europe and Asia Drive Growth

0

50

100

150

200

250

2009 2010 2011 2012 2013 2014F 2015F 2016F 2017F 2018F 2019F 2020F 2021F 2022F 2023F

Capacity (mtnpy)

Africa & Middle East Asia Europe North America South & Central America

Projected Growth

109

Development Timetable Varies by Market

TOTALS 5+ YEARS 7+ YEARS 10+ YEARS

Average Capex (1)

1) For a 1,200 tpd facility; in USD

$ 400M$ 450M$ 120M

NORTH AMERICAWESTERN EUROPECHINA

2+ years

3+ years

3+ years

1+ years

2+ years

3+ years

1+ years

1+ years

2+ years

2+ years1+ years1+ yearsBusiness Development

RFQ / RFPProject Award

Permitting and FinancingNotice to Proceed

ConstructionCommercial Operation

110

• Capitalizing on EU landfill directives

• Waste market growth potential to 2020

• Improving investor climate

• Scheduled to become operational in late 2017

Case Study: Dublin, Ireland

111

Waste Market Maturity

Addressable Market

Government Support

Growth Potential to 2020

Market Accessibility

Investor Friendliness

• Project led by Phoenix Energy

– Local developer

• 400,000 tpy; 35 MW EfW facility in

Perth (Western Australia)

• Covanta to own majority equity in

project and serve as operator

– John Laing and Phoenix Energy

own the balance of equity

• Supported by long-term waste

supply and PPA

Case Study: Perth, Australia

112

Case Studies: Indianapolis (IN) and Huntsville (AL)

• Upgrade and expand existing EfW facility owned by Huntsville

Solid Waste Disposal Authority

• Covanta, as facility operator, will act as lead project manager

• Project driven by increased steam needs by the host (U.S. Army)

• Partnered with client to extend long-term waste agreement

and develop a state-of-the-art residential recycling facility

• ~300,000 tpy facility will process mixed MSW to recover paper, plastics,

and metals using the latest technologies

• Covanta to own and operate

• ~$45 million investment; permitting underway

113

Summary

PORTFOLIO APPROACH TO DRIVE GROWTH

Focused on activities consistent with overall strategy

Tuck-ins and large scale M&A to accelerate growth

Strategic and targeted approach to developing EfW projects

114

Thank you.

115

Financial Review

Brad Helgeson

Executive Vice President & Chief Financial Officer

116

HISTORICAL FINANCIAL PERFORMANCE

BASELINE CASH FLOW UNDERPINS DIVIDEND

FINANCIAL OUTLOOK

CAPITAL ALLOCATION

ENVIRONMENTAL SOLUTIONS OPPORTUNITY

Discussion Topics

117

2011 ContractTransitions

GrowthInvestments

CommodityPrices

ConstructionProjects

Other 2015E

-$55

-$25

+$70-$75

Historical Financial Performance

118

ADJUSTED EBITDA – 2011 vs. 2015E

Overall EBITDA Investment

Multiple of ~6x

$440M

$512M

-$75 +$70 -$55

-$25+$10~+$10

Honolulu vs. Durham-York

Construction Projects

Note: 2015E is midpoint of guidance range as of 7/22/2015.

Contract Transitions

119

• Over $100 million headwind since 2009

– Mark-to-market of 20+ year contracts to current energy and waste market prices

• Service Fee to Tip Fee contract transitions

– Re-contract with municipal client on tip fee basis

– Several variables upon transitions:

▼ Debt service revenue

▲ Revenue sharing

▼ Pass-through costs

• Energy contracts

– Generation transitions to market following original long-term PPA expiration

– 1.6 million MWh of contracts expired over the last 5 years

• Waste Tip Fee contracts

– Certain long-term contracts reset to current waste market – 2014 was key transition year

After 2015, contract transitions approximately net neutral

Growth Investment

ACCRETIVE GROWTH INVESTMENTS HAVE HELPED TO OFFSET CONTRACT TRANSITIONS TO DATE

$ (in millions) EBITDA Multiple ROIC

Metals (1) ~$70 ~5x Mid-teens

NYC MTS Contract ~$150 ~6x Low teens

Dublin EfW Facility ~$550 <9x Mid-teens (levered)

TSD Acquisitions ~$60 ~7x Low to mid-teens

1) Investments made since 2012.

120

• Key ongoing investments:

Operating Efficiently in Low Growth Environment

• While revenue growth has been challenging due to contract transitions and market environment, plants have become more cost efficient

• Total plant operating costs per ton (expense + maintenance capex) are expected to be down nearly 10% over the past 5 years in real terms

$48.90 $49.99 $50.77

$51.80 $52.28 ~$50.25

$48.90 $48.45 $48.18 $48.46 $47.75

~$44.75

2010 2011 2012 2013 2014 2015E

$/T

on

Pro

cess

ed

Nominal $ Real $

~0.5% CAGR

~(2)% CAGR

Cost Efficiency Programs + Outage Optimization = ~$1.50 per ton

Note: • North American EfW operations.• Average CPI of 2.2% from 2010 to 2015E.• Total plant operating costs = plant operating expense (excluding pass-through credits and RECs) + maintenance capex.

121

One Business, Two Cash Flow Streams

1. BASELINE OPERATIONS

Steady, highly predictable cash flow – underpins credit strength and dividend

• Irreplaceable infrastructure assets concentrated in

attractive markets with high barriers to entry

• Highly contracted revenue (>80%)

• Assumes market commodity values only at extreme

low “baseline” levels

2. COMMODITY VALUE SURPLUS

Cash flow with greater volatility – funds opportunistic capital allocation

• Market commodity sales in excess of “baseline” levels

• Commodities extracted from the waste stream are

growing value drivers for Covanta

– Contract transitions increasing CVA’s share of

energy revenue

– Growing metal recovery

122

Commodity Market Value – Volatility Above “Baseline”

• Energy: $2.00 per MMBtu natural gas

• Metal (ferrous): $190 per ton HMS #1 index

• Metal (non-ferrous): $0.40 per lb. Old Sheet and Cast (scrap aluminum) index

$-

$20.00

$40.00

$60.00

$80.00

$100.00

$120.00

$140.00

Jan-10 Jul-10 Jan-11 Jul-11 Jan-12 Jul-12 Jan-13 Jul-13 Jan-14 Jul-14 2015E

Market Energy Price

Baseline Price

ENERGY PRICE PER MWH

$100.00

$150.00

$200.00

$250.00

$300.00

$350.00

$400.00

$450.00

Jan-10 Jul-10 Jan-11 Jul-11 Jan-12 Jul-12 Jan-13 Jul-13 Jan-14 Jul-14 2015E

Actual HMS Price

Baseline HMS

FERROUS METAL PRICE PER TON

123

BASELINE LEVELS ASSUMED:

Note: Market Energy Price represents Covanta market portfolio.

Baseline Cash Flow Underpins Dividend

• Covanta does not size dividend based on short-term or volatile cash flows (positive or negative)

• Conservative and long-term view on baseline level of cash flow:

1. Looks through working capital timing and temporary gains / losses

2. Only assumes minimal commodity value at “baseline” levels

Note: “Short-term and Non-recurring Items” includes construction project profit or loss and one-time gains. 2015E Free Cash Flow is midpoint of guidance range.

($ in millions) 2011 2012 2013 2014 2015E

Free Cash Flow $ 298 $ 277 $ 245 $ 240 $ 150

Exclude: Working Capital Changes 7 (21) (33) 5 (35)

Exclude: Short-term and Non-recurring Items 13 23 15 (1) (13)

Exclude: Commodity Value Surplus Above Baseline 95 57 60 87 37

Free Cash Flow Baseline $ 183 $ 218 $ 203 $ 149 $ 161

Current Dividend as % of FCF Baseline 72% 61% 65% 88% 82%

124

Long-Term Outlook: Baseline Operations

125

• Contract transitions approximately net neutral after 2015

• Consistent operating availability / production

• Waste revenue

– Majority of revenue contracted with CPI escalators

– Merchant price drivers: MSW market and profiled

waste growth

• Plant operating costs

– Maintenance spend (expense + capex) in range

around current run rate + inflation

Increased lifecycle investment offset by outage

efficiencies

– Other expenses – assume inflation (+/-)

• Continuous improvement initiatives offer potential upside to

baseline operations

KEY MODEL ASSUMPTIONS:

2016

2017

2018

KEY MODEL ASSUMPTIONS:KEY EVENTS:

▲ Fairfax facility tip fee transition

▲ Durham-York operations

▲ NYC Queens MTS full year

▼ Sale of China assets

▼ PPA expirations in New England

▲ Dublin facility online

▲ NYC Manhattan MTS online

0.00

1.25

2.50

3.75

5.00

0.00

15.00

30.00

45.00

60.00

2014 2015E 2016E 2017E 2018E 2019E 2020E

Long-Term Outlook: Commodity Market Value

126

ENERGY: COVANTA IS POSITIONED TO BENEFIT FROM LONG-TERM ENERGY RECOVERY

FORWARD ENERGY PRICES

200

250

300

350

400

450

Natural Gas ($/MMBtu)

$2.00 $3.54 $5.00

VALUE OF ENERGY PORTFOLIO – 2020

$275 -$325

~$360

$400 -$450

$ M

illio

ns

Notes: • Projected portfolio values based on assumed relationships between natural gas and electricity prices in Covanta markets (primarily PJM East and NEPOOL). • Illustrative only, as natural gas “rule of thumb” can change over time. • ~$45 million of increase in value of energy portfolio (2015E – 2020E) related to service fee to tip fee contract transitions.• Energy portfolio values include capacity revenue.

Baseline Commodity

Value Assumed

Current Forward

Prices

Elec

tric

ity

–P

JM E

ast

($/M

Wh

)

Natural Gas

PJM East

Nat

ura

l Gas

($/M

MB

tu)

Long-Term Outlook: Commodity Market Value (cont’d)

127

METALS: CURRENT PRICING AT SIGNIFICANT DISCOUNT TO HISTORICAL AVERAGES

$36$43

$58$66

$13

$24

1) At midpoint of 2015 outlook.

VALUE OF METAL PORTFOLIO (FE AND NON-FE)

$ M

illio

ns

$36 $43$58 $66

$13

$23

$24$25

0

25

50

75

100

BaselineLevel

Assumed

2015E 10-YearAverage

5-YearAverage

(1)

$49

$66

$82$91

FENon-FE

Balance Sheet Strategy

• Shareholder friendly, but prudent capital allocation and

financial policy

• Committed to maintaining current “4 B” credit ratings profile

• Utilize balance sheet capacity to fund accretive growth

investments opportunistically

• Leverage outlook:

– Anticipate returning to mid 4x range in 2016, excluding

Dublin non-recourse project debt

– Return to ~4x leverage unadjusted by 2018 with full

contribution from Dublin and NYC contract

• Maintain ample liquidity

– ~$425 million available under revolving credit facility

at 6/30/2015

128

$1.96 $2.02 $2.04

$2.27 $2.30

3.8x4.0x

4.3x

5.3x 5.2x

12/31/2012 12/31/2013 12/31/2014 6/30/2015 12/31/2015E

Net Debt Net Debt / Adjusted EBITDA

NET DEBT ($B) AND LEVERAGE RATIOS

~

Growth Investment Outlook

• Existing pipeline of committed investments:

129

• All remaining committed investments (NYC, Essex, Dublin) financed efficiently

(in millions) 2015E Remaining Committed

Organic growth investments $25 $-

New York City MTS contract ~$40 ~$20

Essex County EfW emissions control system ~$35 ~$55

Dublin EfW facility construction $200 - $225 ~$225 - $250

Acquisitions $48 –

Total growth investments ~$350 - $375 ~$325 - $375

Excluding non-recourse financing ~ $200 - $225 $75

Capital Allocation Priorities

130

1. Dividend

• Goal and expectation to grow dividend consistently by growing underlying sustainable cash flow

• Underpinned by baseline Free Cash Flow; anticipate payout at ~50% of overall Free Cash Flow over long-term

• Next priority for cash flow and capital resources if investment meets strict criteria:

‒ Return clearly exceeds cost of capital on risk-adjusted basis

‒ Accretive to Free Cash Flow per share

‒ Consistent with Covanta’s strategy and core competencies

• Cost of capital hurdles:

‒ WACC: ~7%

‒ Cost of Equity: ~9-10%

• Alternative (opportunity cost) for every growth investment

• Repurchased $447 million (18% of outstanding shares) from 2010 to 2013

2. Growth Investment

3. Repurchase Stock

4. Repay Debt

• No plan to pro-actively repay debt near-term given current pipeline of accretive growth investments

Covanta Investment Thesis

• Strong baseline of infrastructure cash flow underpins dividend

– Irreplaceable and highly contracted assets

– ~5% dividend yield

– Targeting annual dividend growth as sustainably grow cash flow

• Significantly levered to long-term commodity price recovery

• Increasing clarity on improving financial results

– Contract transitions largely completed

– Visibility to contribution from new investments

– Upside from continuous improvement initiatives

• Capital allocation strategy to maximize shareholder value

– Opportunities for continued accretive investment

– Alternative is to buy back stock

• “Free option” on regulatory framework that further recognizes benefits of EfW

131

Thank you.

132

Appendices

134

Non-GAAP Reconciliation: Adjusted EBITDA & Free Cash Flow – Continuing Operations

($ in millions) 2011 2012 2013 2014 LTM 6/30/2015 2015E (1)

Net Income (Loss) from Continuing Operations Attributable to Covanta Holding Corporation $93 $136 $43 $(2) $(42)

Operating loss related to Insurance subsidiaries 3 10 2 2 1

Depreciation and amortization expense 192 194 209 211 203

Debt service expense 122 145 159 147 135

Income tax expense 60 31 43 15 (6)

Reversal of uncertain tax positions related to pre-emergence tax matters (24) - - - -

Non-cash liability to pre-petition creditors 15 - - - -

Gain related to trust distribution - - (4) - -

Net (gains) write-offs - (57) 15 64 72

Defined benefit pension plan settlement expense (gain) - 11 (6) - -

Loss on extinguishment of debt 1 3 1 2 2

Gain on sale of business (9) - - - -

Net income (loss) attributable to noncontrolling interests in subsidiaries 5 2 (1) 1 1

Other adjustments:

Debt service billings in excess of revenue recognized 22 9 9 2 1

Severance and reorganization costs - - 2 9 8

Capital type expenditures at service fee operated facilities (2) - - - - 22

Non-cash compensation expense 17 16 15 17 20

Other non-cash items 15 7 7 6 11

Subtotal other adjustments 54 32 33 34 62

Total adjustments 419 371 451 476 470

Adjusted EBITDA $512 $507 $494 $474 $428 $420 - $460

1) As of 7/22/2015.2) Adjustment for impact of adoption of FASB ASC 853 – Service Concession Arrangements in order to provide comparability to prior period results and guidance range.Note: Adjusted EBITDA results provided to reconcile the denominator of the Net Debt / Adjusted EBITDA ratios on slide 137.

135

Non-GAAP Reconciliation: Adjusted EBITDA & Free Cash Flow – Continuing Operations(in millions) 2011 2012 2013 2014 2015E (1)

Adjusted EBITDA $512 $507 $494 $474 $420 - $460

Cash interest payments (101) (112) (123) (121)

Cash taxes (13) (8) (11) (11)

Working capital / other (22) (30) (36) (2)

Cash flow (used in) provided by operating activities from continuing operations $376 $357 $324 $340 $210 - $260

Plus: Cash flow provided by operating activities from insurance subsidiaries 2 5 8 1

Less: Maintenance capital expenditures (80) (85) (87) (101) (80) - (90)

Free Cash Flow $298 $277 $245 $240 $130 - $170

Shares Outstanding End of Period 136 132 130 133

1) As of 7/22/2015.

136

Capitalization Summary

($ in millions) 2012 2013 2014 6/30/2015

Cash and Cash Equivalents $ 234 $ 190 $ 84 $ 66

Restricted Funds (Debt Principal Related) 72 45 86 78

Corporate Debt:

Secured $ 358 $ 404 $ 405 $ 626

Unsecured 1,595 1,617 1,569 1,569

Total Corporate Debt $ 1,953 $ 2,021 $ 1,974 $ 2,195

Project Debt 291 212 225 222

Total Debt (1) $ 2,244 $ 2,233 $ 2,199 $ 2,417

Stockholders’ Equity $ 1,055 $ 906 $ 784 $ 630

Net Debt (2) $ 1,938 $ 1,998 $ 2,029 $ 2,273

Availability under Revolving Credit Facility $ 584 $ 519 $ 693 $ 423

Net Debt / Adjusted EBITDA (3) 3.8x 4.0x 4.3x 5.3x

137

1) Debt balances are presented at principal value, not book value. 2) Net debt is calculated as total principal amount of debt outstanding less cash and cash equivalents and debt service principal-related restricted funds. 3) Ratio is computed for Covanta Holding Corporation. Differs from calculation required under Covanta Energy’s credit facility. See slide 135 for a reconciliation of 2012, 2013,

2014, and LTM Adjusted EBITDA.