Veolia Environnement Sa · EURONEXT:VIE
Veolia Environnement Sa — Merger or Acquisition (October 2020)
18 slides from Veolia Environnement Sa's merger presentation, October 2020
Slide 1: Creating the World Champion of Ecological Transformation
Creating the World Champion of Ecological Transformation Leveraging unique industrial and geographical complementarities
Slide 2: Disclaimer
DISCLAIMER Veolia Environnement is a corporation listed on the Euronext Paris. This document contains “forward-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 performan
Slide 3: Key steps of the transaction
Creating the World Champion of the Ecological Transformation Key steps of the transaction ❑ 6 Oct. 2020: Veolia has acquired 29.9% of Suez’s capital from Engie at €18 per share (coupon attached), paid in cash, for a total consideration of €3.4bn ✓ Premium of 75% over the unaffected price of July 30,
Slide 4: A transaction benefitting all stakeholders
Creating the World Champion of the Ecological Transformation A transaction benefitting all stakeholders A UNIQUE OPPORTUNITY TO CREATE THE WORLD LEADER OF THE ECOLOGICAL TRANFORMATION ✔ Climate Change emergency facing our planet and societies ✔ Become a leader of the European Green Deal and of other
Slide 5: Highly supportive accelerating mega trends
Creating the World Champion of the Ecological Transformation Highly supportive accelerating mega trends CLIMATE CHANGE the defining issue of our time RESOURCE EFFICIENCY ADRESSABLE INTERNATIONAL water scarcity, food chain MARKET SIZE €1 400BN Water >€600bn EUROPEAN GREEN DEAL Waste >€400bn URBANIZAT
Slide 6: Aligned and converging strategies …
Creating the World Champion of the Ecological Transformation Aligned and converging strategies … VEOLIA STRATEGIC PLAN SUEZ STRATEGIC PLAN IMPACT 2023 SHAPING 2030 Be the benchmark company for ecological transformation The global leader in environmental services by 2030 Accelerate growth outside Eur
Slide 7: … and complementary assets
Creating the World Champion of the Ecological Transformation … and complementary assets • A compelling geographical combination ✔ Veolia & Suez are World Leaders with a current combined market share of less than 5% ✔ Strategic capacities internationally with leading positions in locations with furth
Slide 8: An improved global geographical footprint
Creating the World Champion of the Ecological Transformation An improved global geographical footprint Worldwide Activities – €6.7bn (€bn) Suez Veolia Based on 2019 financials Total 2.6 4.1 Revenue % Suez 39% % Veolia 61% Europe – €22.5bn(1) Asia – €2.7bn (€bn) Suez Veolia (€bn) Suez Veolia Total To
Slide 9: A unique opportunity to implement and accelerate our clients' transition
Creating the World Champion of the Ecological Transformation A unique opportunity to implement and accelerate our clients’ transition towards environmental efficiency An innovative offering to accelerate our clients’ transition towards environmental • efficiency… ✔ Municipal clients: a diversified e
Slide 10: Complementary clients
Creating the World Champion of the Ecological Transformation Complementary clients COMPLEMENTARY REGIONAL AND GLOBAL PARTNERSHIPS Veolia Suez Veolia 47% 53% NEW GLOBAL ACCOUNTS ON INDUSTRIAL PARKS Veolia Suez Suez 40% 60% A STRONG GLOBAL COMMERCIAL NETWORK ✔ A larger global account coverage due to s
Slide 11: Key developments aligned with European Green Deal objectives
Creating the World Champion of the Ecological Transformation Key developments aligned with European Green Deal objectives and other Green stimulus packages The combined Group will become a leading player for the EU Green Deal, able to carry out large « green » projects: water treatment, waste recycl
Slide 12: A strategic and cultural fit for a successful integration
Creating the World Champion of the Ecological Transformation A strategic and cultural fit for a successful integration • Similar corporate cultures and converging strategies • A strong track record of execution and delivery • Additional opportunities for all employees of the enlarged group A long hi
Slide 13: Enhanced financial profile
Creating the World Champion of the Ecological Transformation Enhanced financial profile Estimated Pro Forma Veolia Suez Transaction Impact(2) figures 2019 Revenue €27bn €18bn (€4bn) €41bn 2019 EBITDA(1) €4bn €3bn - €7bn (% margin) 15% 17% 17% 14% 22% 37% 45% 40% Activity Split (% of Revenue) 55% 41%
Slide 14: Well-identified and executable cost synergies of €500m
Creating the World Champion of the Ecological Transformation Well-identified and executable cost synergies of €500m Share all best practices • Operational efficiencies ✔ Benchmark of performance ✔ Industrial optimization ✔ Eg : SARP/ Osis ~500 • Procurement ~400 ~300 • Internalization of volumes ~10
Slide 15: Veolia's solid financing structure
Creating the World Champion of the Ecological Transformation Veolia’s solid financing structure • Strong cash position and large group liquidity ✔ €12.1bn liquidity available as of Jun-20, including €7.9bn of cash and €4.2bn in undrawn confirmed credit lines without disruptive covenants Attractive f
Slide 16: Strong value creation potential
Creating the World Champion of the Ecological Transformation Strong value creation potential Significant Cost Estimated €500M run-rate synergies at EBITDA level implemented over 3 to 4 years following the closing Synergy Potential EBITDA margin accretion through synergies and operational gearing EPS
Slide 17: A transaction benefitting all stakeholders
Creating the World Champion of the Ecological Transformation A transaction benefitting all stakeholders A UNIQUE OPPORTUNITY TO CREATE THE WORLD LEADER OF THE ECOLOGICAL TRANFORMATION ✔ Climate Change emergency facing our planet and societies ✔ Become a leader of the European Green Deal and of other
Slide 18: 5 stakeholders 18 KPIs All KPIs audited
A STRONG VALUE CREATION FOR ALL STAKEHOLDERS 5 stakeholders 18 KPIs All KPIs audited 18
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