Veolia Environnement Sa · EURONEXT:VIE
Veolia Environnement Sa — Veolia — Investor Day (April 2024)
59 slides from Veolia Environnement Sa's investor day presentation, Apr 18, 2024
Slide 1: Deep Dive: Veolia in the U.S.
DEEP DIVE VEOLIA IN THE U.S. Thursday, 18 April 2024 New York
Slide 2: Agenda
AGENDA 1. Group Overview 2. Veolia in the U.S. 3. Supporting Local Growth 4. Businesses Overview 5. Focus on PFAS
Slide 3: Estelle Brachlianoff, Chief Executive Officer
ESTELLE BRACHLIANOFF Chief Executive Officer, Veolia
Slide 4: High Ambition for Veolia in the U.S. Double our size
High Ambition for Veolia in the U.S. VEOLIA’S GOAL OUR AMBITION Support U.S. industrial Double and economic our size growth while preserving by 2030 health and taking into account the planetary limits +50% by 2027
Slide 5: Group Overview
GROUP a OVERVIEW
Slide 6: Veolia, a Global Leader in Environmental Services
Veolia, a Global Leader in Environmental Services VEOLIA WORLDWIDE $49bn revenues in 2023. On Fortune 500 world’s largest corporations list Successful $28bn takeover of Suez in 2022 #1 Worldwide Water Services 44 countries on 5 continents #1 Worldwide Water Technologies In top 3 per country / activi
Slide 7: Supportive Megatrends
Supportive Megatrends Large growing market with potential Adaptation to Climate estimated at €2,500bn* Change Climate Affordability Change Mitigation Strategic > €500bn* Independence & for decarbonization Health & Reindustrialization Environment Natural > €600bn* Resources for regeneration Scarcity
Slide 8: Veolia, an Integrator of Solutions
Veolia, an Integrator of Solutions Clients’ Challenges Veolia Value Proposition Impact 3 Complementary Businesses Cities To Decarbonize > Public health through access Delivering Essential Services > Towards Net Zero CO2 to essential services WORLDWIDE with local decarbonizing energy > Decarbonizatio
Slide 9: Veolia's Unique Positioning
Veolia’s Unique Positioning Market Resilience Positioning & Growth Engagement Footprint Combined Track & Local Businesses Positioned in large Delivering essential Record Anchoring growing markets of services & operating Expertise largely untapped infrastructure 89% engagement solutions A worldwide r
Slide 10: GreenUp 24-27: Veolia's New Strategic Program
GreenUp 24-27: Veolia’s New Strategic Program Decarbonization 18 Mtons CO2eq Solid and resilient growth(a) inc. 3 boosters: erased in 2027 (Scope 4) bioenergy, flexibility & energy efficiency, & emission trajectory reduction compatible water technologies, with 1.5°C (Scope 1 & 2) hazardous waste tre
Slide 11: Veolia in the U.S.
VEOLIA IN THE U.S.
Slide 12: U.S. Already a Key Market for Veolia
U.S. Already a Key Market for Veolia Only Geography with >10% of the Group’s Capital Employed 21% Municipal Water Operations 13% 9% Regulated Water Energy 2023 2023 U.S. 11% REVENUES REVENUES U.S. 25% Hazardous Waste $5.4bn $49bn Treatment 32% Water Technologies & New Solutions Group Revenues Breakd
Slide 13: Solidly Anchored in the American States
Solidly Anchored in the American States A Top-Ranked Environmental Company for 3 Consecutive Years* #1 Water O&M #3 in Hazardous #3 Regulated Water Waste Treatment #1 Water Technologies Veolia in the U.S. Largest private company in Minnetonka RO/NF/Filters Water Operations in the Country Milwaukee B
Slide 14: Veolia's Size in the U.S. More Than Doubled in 5 Years
Veolia’s Size in the U.S., More Than Doubled in the Last 5 Years Following a Century Long Presence $5.4bn Foundation Entering x2.6 of Veolia the U.S. $2.0bn market 1853 1869 2019 2023
Slide 15: Veolia Amongst National Leaders in the U.S.
Veolia Amongst National Leaders in the U.S. Combining Various Activities & Worldwide Expertise WATER OPERATIONS WATER TECH. HAZARDOUS WASTE LOCAL DECARBONIZING #1 Water O&M & NEW SOLUTIONS TREATMENT ENERGY #3 Regulated Water #1 in the U.S. #3 in the U.S. $1.9bn 2023 Revenues $1.7bn 2023 Revenues $1.
Slide 16: Supporting Local Growth
SUPPORTING LOCAL GROWTH
Slide 17: Megatrends in the U.S. Market
Megatrends in the U.S. Market Main U.S. Market Challenges U.S. is one of the largest growing markets for Veolia Representing c. 25% of total global market Talent Retention > $135bn Strategic Independence & for Decarbonization Reindustrialization Industrial > $160bn Health & Waste Environment Treatme
Slide 18: Reshoring of Strategic Industries
Reshoring of Strategic Industries Estimated Market of Cumulated ~$10bn for Environmental Services by 2030 Key Environmental Key Drivers Services Needed Semiconductor new Ultra pure water factories (Chips Act) New gigafactories Effluent treatment (IRA) 1000GWh by 2030 to earn licence to operate Pharm
Slide 19: Access to Water Needed to Support Growth
Access to Water Needed to Support Growth Estimated Market of $34bn/y(a) by 2027 Key Environmental Key Drivers Services Needed Reshoring and Water recycling industry growth Water distribution Population growth in network leakage water scarce areas reduction Water quality Water supply to awareness (PF
Slide 20: Health: Emerging PFAS Regulations in the U.S.
Health: Emerging PFAS Regulations in the U.S. $200bn Estimated Market for Decontamination Key Environmental Key Drivers Services Needed Treatment Drinking water know-how designed safety to local needs Wastewater Membranes pollutants removal filtration and other solutions Site Remediation > airports
Slide 21: Americans are expecting action
Americans are expecting action and ready to contribute 65% Over half of all Americans are ready to accept lifestyle changes convinced that climate change and and cost increase if ecological solutions resulting pollutions can deteriorate help protect their health their health and living conditions 61
Slide 22: Veolia's Unique Positioning to Tackle U.S. Market Challenges
Veolia’s Unique Positioning To Tackle U.S. Market Challenges WORLDWIDE EXPERTISE 14 R&D CENTERS STRONGHOLDS 3 BUSINESSES Water Operations & GROWTH BOOSTERS COMBINING WATER WASTE Hazardous Waste Treatment ENERGY Water Tech. & New Solutions CUSTOMER BASE Cities and Industries
Slide 23: Value Creation with Profitable Growth in the U.S.
Value Creation with Profitable Growth in the U.S. Solid Fundamentals, Selective Growth & Performance Improvement Growth Performance Capital Allocation Value Creation > Customer retention > Operational Excellence > Capex in new high Strongholds (90%+ and NPS 49) > Cost efficiencies value creating (Wa
Slide 24: High Ambition for Veolia in the U.S.
High Ambition for Veolia in the U.S. Strong Foundations Ensuring Resilience & Growth VEOLIA’S GOAL VEOLIA’S ADDED VALUE OUR AMBITION Double our size by 2030, +50% by 2027 Support U.S. Combined businesses industrial Worldwide Footprint and economic Value creation ~+ 200bps in ROCE growth by 2027 Trac
Slide 25: Water Operations
WATER OPERATIONS Karine Rougé Chief Executive Officer Municipal Water VEOLIA NORTH AMERICA
Slide 26: Veolia Water Operations Worldwide
Veolia Water Operations Worldwide Preserve Water Resource and Treat Pollutants Leveraging Group’s Footprint Strong Market Positioning Wide Footprint Combined with Strong Local Anchoring “Copy and Adapt” > Micropollutant treatment solutions developed leveraging R&D centers and collaboration 2023 betw
Slide 27: Veolia Water Operations in the U.S.
Veolia Water Operations in the U.S. Successful Operations since 1869 U.S. Water Operations Regulated Water Revenues > Operations in 6 states > 600,000 connections x2.7 since 2019* (2.2m people served) 21% Municipal Water Water O&M Operations > 200 water & wastewater facilities Veolia operated U.S. 2
Slide 28: Veolia Key Differentiators
Veolia Key Differentiators Expertise Combined Businesses Integrated Worldwide major references: proven Innovation Ability to leverage Services our regulated and track record of contract operations successful projects and expertise with tailor made solutions Only private national to address client’s
Slide 29: Business Model
Business Model Only National Private Company Able to Provide all Contract Services MUNICIPAL WATER OPERATIONS REGULATED WATER #1 Market Leader #3 Market Leader $1.2bn Revenues $0.7bn Revenues Rate Base 14% CAGR 2019-2023 5% CAGR 2019-2023 (Organic growth) $3.4bn Regulated Asset Base > Regulated acti
Slide 30: Water Business Ambition in the U.S.
Water Business Ambition in the U.S. 31.7bn gal* of Water Saved by Veolia by 2027 (San Francisco Annual Water Consumption) Growth Drivers Mid single digit > Unprecedented wave of regulations Tackle Water CAGR (PFAS, lead and copper) Quality Issue > In Veolia, 50+ projects on PFAS, >300 miles of pipes
Slide 31: Example: Leak Reductions
Example: Leak Reductions Operational Performance > Average water loss across the U.S. is an estimated 5.5 billion gallons lost per day. This loss costs water systems an estimated $6.1bn annually > Thanks to greater innovation & digital solutions such as IoT sensors in networks for leak detection and
Slide 32: Example: Water Recycling
Example: Water Recycling West Basin - World Class Water Reuse Services > Veolia recycles influent water for various uses: industrial, irrigation water, cooling tower water, groundwater recharge, low pressure boiler feed water, high pressure boiler feed water and indirect drinking water > Veolia trea
Slide 33: Example: Water Recycling
Example: Water Recycling West Basin - World Class Water Reuse Services > Veolia recycles influent water for various uses: industrial, irrigation water, cooling tower water, groundwater recharge, low pressure boiler feed water, high pressure boiler feed water and indirect drinking water > Veolia trea
Slide 34: Example: Ecofactory
Example: Ecofactory Reinvent the Wastewater Treatment Plant > The wastewater treatment industry is undervalued and needs a rebrand from blight to benefit, to be transformed from linear to circular > Municipal WWTPs transformed from traditionally linear facilities into circular economy, resource reco
Slide 35: Water Technologies & New Solutions
WATER TECHNOLOGIES & NEW SOLUTIONS Tim Huang Chief Executive Officer & North America Regional Director VEOLIA WATER TECHNOLOGIES & SOLUTIONS
Slide 36: Veolia Water Technologies Worldwide
Veolia Water Technologies Worldwide #1 Worldwide Leveraging Group’s Footprint Strong Market Positioning Wide Footprint Combined with Strong Local Anchoring “Copy and Adapt” > Water reuse for microelectronics industry (U.S. > Asia & Europe) > Micropollutants treatment offer in 2023 pharmaceutical eff
Slide 37: Veolia Water Technologies in the U.S.
Veolia Water Technologies in the U.S. Key Player in a Fast Growing Market Bellevue, WA U.S. Water Technologies Projects Revenues 150+ large projects Minnetonka, MN x7.5 since 2019* in 2023 Plainfield, IL | HPD Trevose, PA 2019-2023: High single digit CAGR Dayton, OH 32% Techno-products Water Boulder
Slide 38: Business Model
Worldwide Business Model expertise & #1 in the U.S., Unique Positioning successful references in industries (O&G, Engineering 26% of Revenues Veolia microelectronics, lithium) & Procurement > Design and delivery of integrated Well-recognised Projects processes combining Veolia’s Key brands by techno
Slide 39: Our Growth Priorities
Our Growth Priorities Illustrated by Recent Successes WASTEWATER MICROPOLLUTANTS RECOVERY OF ADVANCED BIOLOGICAL INDUSTRIAL PROCESS REMOVAL FROM STRATEGIC METALS TREATMENT & ULTRAPURE WATER DRINKING WATER AND SALTS AND REUSE Borough of Bellmawr, NJ: City of Santa Monica's: Li-Cycle, Rochester NY: Bu
Slide 40: Water Technologies Ambition in the U.S.
Water Technologies Ambition in the U.S. 815 Mgal./day* of Wastewater Treated by 2027 Growth Drivers High single digit > <1% of water is recycled CAGR Water Stress > 1000 water reuse projects with focus on decentralized water reuse systems, including onsite water reuse in communities $1.7bn $0.2bn >
Slide 41: Hazardous Waste Treatment
HAZARDOUS WASTE TREATMENT Bob Cappadona President and CEO Environmental Solutions and Services VEOLIA NORTH AMERICA
Slide 42: Veolia Hazardous Waste Worldwide
Veolia Hazardous Waste Worldwide World Leader, Presence on 5 Continents Leveraging Group’s Footprint Strong Market Positioning Wide Footprint Combined with Strong Local Anchoring “Copy & Adapt” > Joint pilots, benchmark and assessments on emerging pollutants 2023 > Technology transfer, Revenues 30%
Slide 43: Veolia U.S. Hazardous Waste
Veolia U.S. Hazardous Waste #3 Player in the Market U.S. Hazardous Waste Revenues x1.4 since 2019 Overall 850K Tons of Hazardous Waste 25% Hazardous Managed by Veolia Waste Treatment > 15 permitted Veolia treatment facilities U.S. 2023 > 49 “ten-day” transfer $5.4bn and service facilities Solvent Re
Slide 44: Business Model
Business Model Fully Integrated Value Chain Hazardous Waste Treatment Veolia Key Differentiators End-to-end services Innovation & Expand Offering to > $1.3bn Revenues emerging CAGR 2019-2023 +9% Per Year pollutants High > Fully integrated, from collection, sorting and all adequate treatments (recycl
Slide 45: Hazardous Waste Ambition in the U.S.
Hazardous Waste Ambition in the U.S. +2M Tons Treated annually by 2027 > $2,000bn+ government funding to U.S. infrastructure High and competitiveness Manufacturing single digit > U.S. manufacturing construction spending increased CAGR Reshoring by 62% since 2019, with 80% considering reshoring to th
Slide 46: Example: Gum Springs
Example: Gum Springs State-of-the-Art Technology > Veolia acquired the Gum Springs site from aluminum company Alcoa in 2020 > New state-of-the-art thermal hazardous waste treatment operation (+landfill) > Once completed in 2025, Veolia will double the number of employees on site to more than 200 and
Slide 47: Example: Gum Springs
Example: Gum Springs State-of-the-Art Technology > Veolia acquired the Gum Springs site from aluminum company Alcoa in 2020 > New state-of-the-art thermal hazardous waste treatment operation (+landfill) > Once completed in 2025, Veolia will double the number of employees on site to more than 200 and
Slide 48: Port Arthur - Hazardous Waste Treatment
Port Arthur - Hazardous Waste Treatment One of Veolia’s Top Thermal Facilities in the U.S. > Facility purchased by Veolia in 2002, handling of "high margin" waste streams > Approx. 70K tons/year (@5,000 Btus/lb), 250+ people on-site > Average price per pound at the facility is up by 72% (2023 vs. 20
Slide 49: U.S. Chamber of Commerce
U.S. CHAMBER OF COMMERCE Marty Durbin Senior Vice President, Policy
Slide 50: Fast Evolving Regulations
Fast Evolving Regulations Pushing to Develop Effective Solutions > On April 10, 2024, EPA announced mandatory new national drinking water standards for PFAS ○ Stringent limits established for 6 PFAS compounds ○ Monitoring and results to be reported within 3 years, compliance with new standards to be
Slide 51: Water Operations
Water Operations Water & Waste Activities Synergies Supporting End-to-End Offer Clients Municipalities & Industrial - Drinking Water Full scope (end-to-end) in the U.S. Veolia’s Offer A Veolia North America 6-step global offer to design the best solution relying on: More than 50 references > Analysi
Slide 52: Water Technologies
Water Technologies A Differentiating Offer Clients Municipalities and Industries (F&B, chemical industries, DW/PW/WW*) in the U.S. & Europe Veolia’s Offer More than 13 references A comprehensive treatment approach relying on: in the U.S. and Europe > Analysis, testing, pilot internal capabilities >
Slide 53: Hazardous Waste Treatment
Hazardous Waste Treatment Best Available Treatment Technologies for Highly Contaminated PFAS Waste Clients Now: Industrial clients (such as airports, military sites, chemical PFAS production sites) in the U.S., Australia and some countries in Europe Future: Public authorities in some countries (Aust
Slide 54: Veolia's Unique Integrated Offer
Veolia’s Unique Integrated Offer End-to-end Solutions to Sustain US Industrial Growth in Healthy Conditions Analysis & Tracking Study Controlling & Engineering Operation Waste Treatment > Partnering with labs > R&D Water Operations & Technologies Hazardous Waste Laboratories - Water Alternatives R&D
Slide 55: PFAS
PFAS Karine Rougé Tim Huang Bob Cappadona
Slide 56: Conclusion
CONCLUSION
Slide 57: Key Takeaways
Key Takeaways Decarbonization Double Size by 2030 600K tons CO2eq erased +50% Revenue in the U.S. by 2027 combining organic growth, tuck-ins Regeneration & capex 120 Mm3 fresh water saved Make U.S. Growth Possible under Profitable Growth Healthy Conditions supporting group’s and Despite the objectiv
Slide 58: Pour changer la donne / To turn the tide
N POUR CHANGER LA DONNE rogra m L 2027 TOTURN THE TIDE: is - ia
Slide 59: Contacts
CONTACTS Analyst & Investor Relations Media Relations Ronald Wasylec Laurent Obadia Deputy CFO, Senior Vice President, Phone: +33 1 85 57 89 43 Investor Relations E-mail: laurent.obadia.@veolia.com Phone: +33 1 85 57 84 76 E-mail: ronald.wasylec@veolia.com Ariane de Lamaze Evgeniya Mazalova Vice Pre