Veolia Environnement Sa · EURONEXT:VIE

Veolia Environnement Sa — Investor Day (2011)

15 slides from Veolia Environnement Sa's investor day presentation, 2011

  1. Slide 1: Divisional update

    4 3 Divisional update Industry – Denis Gasquet Water – Jean-Michel Herrewyn Environmental Services – Jérôme Le Conte Energy Services – Franck Lacroix Transport – Jérôme Gallot 69

  2. Slide 2: Veolia Water: key 2010 figures

    Veolia Water: key 2010 figures Potable water to 100 million people 96,260 employees(1) Wastewater treatment for 71 million people Strong references in all segments World leader of water services of the water market (1) As of 31 December 2010 (including 4,903 employees from the water activities of Pr

  3. Slide 3: Veolia Water: geographic footprint

    Veolia Water: geographic footprint 75% of revenue in 7 countries (1) USA: Operations Leader in Central & and maintenance Eastern Europe contracts France: Leader in all business segments Korea / Japan: sole non-national player China: Leader with 40 million people served Top markets representing 75% o

  4. Slide 4: Water: business overview and priorities

    Water: business overview and priorities 1 Heavy Capex Municipal 2011e revenue breakdown  VW shareholder of Water Cos  Historical capital intensive business model  Immediate reorganization 14% 2 Light Capex Municipal 27% 59%  VW servicing Water Cos  Limited / No capex needs  Mid term growth dri

  5. Slide 5: Heavy Capex Municipal: shareholder of a WaterCo

    1 Heavy Capex Municipal: shareholder of a WaterCo Market characteristics  Client is public/political authority  Capex needed for:  acquisitions (privatization)  building / revamping infrastructure HCM 2010 geographical breakdown Trends and priorities  French market  increasing Capex intensity

  6. Slide 6: France: under pressure in recent years…

    1 France: under pressure in recent years… Change in adjusted operating Changes in market conditions cash flow YoY  Increasing competition 50  Pressure from clients 0  Re-municipalization threat (50) €m  Adverse legal evolution on long term (100) contracts (150) 2008 2009 2010 2011e Decreasing pr

  7. Slide 7: France: future remains challenging

    1 France: future remains challenging Contracts for renewal For the next 3 years: €m 250 8.7% 10,0%  ~ 22% of revenue to renew 200 6.6% 6.5% 6.9% 8,0%  Continuous margin erosion 150 6,0% 100 4,0% 50 2,0% 0 0,0% Adapt organization to customer 2011e 2012e 2013e 2014e needs Revenue for renewal % of Fr

  8. Slide 8: French reorganization: €150m recurring savings

    1 French reorganization: €150m recurring savings Reorganize France:  Geographical organization  specialization Rebuild organization to improve operational and commercial efficiency  Allocate more resources to business development  Align on new operational standards  Standardize organization at

  9. Slide 9: Central & Eastern Europe: capex allocation priority

    1 Central & Eastern Europe : capex allocation (1) priority High margin business model Central & Eastern Europe(1) 1 400 25% Facility upgrades to comply with EU 1 200 environmental law 20% 1 000 15% 800 Strategy: €m 600  Consolidation of existing operations 10%  Selective development 400 5% 200 Exp

  10. Slide 10: Germany: Berlin contract

    1 Germany: Berlin contract Public-Private Partnership: Veolia and RWE acquired 49.9% of the Water Co in 1999 Simplified organization chart 30 year concession Veolia RWE Limited capacity to extract full productivity in current organization 50% 50% RVB Berlin Land Political wish to increase Land gover

  11. Slide 11: China: continued organic growth

    1 China: continued organic growth Veolia manages installations in key economic growth locations: Shenzhen, Shanghai, Tianjin Urumqi Beijing Lugouqiao Beijing Beiyuan Tianjin CGE Tianjin TEDA Successful tariff review: increases are Hohhot SINOPEC Yanshan Tianjin Dalian-Tagal Tianjin SODA satisfactory

  12. Slide 12: Light Capex Municipal: Servicing Water Co

    2 Light Capex Municipal: Servicing Water Co Client is public WaterCo (mainly Winnipeg (Canada): municipally owned companies)  700,000 inhabitants  Operation and capital project management No/very limited Capex needs for all the wastewater facilities for 30 years  Very low risk profile contract Ke

  13. Slide 13: Light Capex Municipal: Technologies & Networks

    2 Light Capex Municipal: Technologies & Networks VWS Bookings 4 000 Client is public Water Co 3 500 3 000 2 500 Technology driven strategy 2 000 €m 1 500 1 000 Several projects in emerging 500 markets 0 2007 2008 2009 2010 2011e 2012e Global resilience for the Industrial activities Municipal activit

  14. Slide 14: Industry: 3 main target segments

    3 Industry: 3 main target segments Clients are blue chip industrial companies Technology driven strategy 3 main sub-segments:  Industries with heavy volume & tough environmental constraints like Oil & Gas, Mining and Power  Industries with strict corporate water agenda like Food & Beverage and Cos

  15. Slide 15: 2012 Agenda

    2012 Agenda Convergence plan with recurring savings in progress Stricter investment selection process Divestment program: UK Regulated, Southern Europe Reorganize French operations Concentrate Heavy Capex Municipal on Central Europe and China Boost Light Capex Municipal For industry, promote technol

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