Veolia Environnement

Veolia Environnement S.A.

Type	Société Anonyme
Traded as	Euronext: VIE, NYSE: VE
Industry	Environmental services
Founded	1853
Headquarters	Paris, France
Key people	Antoine Frérot (Chairman and CEO)
Services	Water treatment, waste management, HVAC, street lighting, facility management services, outsourced public transportation services
Revenue	€34.79 billion (2010)[1]
Operating income	€2.120 billion (2010)[1]
Profit	€581.1 million (2010)[1]
Total assets	€51.51 billion (end 2010)[1]
Total equity	€10.89 billion (end 2010)[1]
Employees	287,040 (FTE, end 2010)[1]
Website	veolia.com

Veolia Environnement S.A. is a multinational French company with activities in four main service and utility areas traditionally managed by public authorities - water supply and water management, waste management, energy and transport services. In 2009, Veolia employed around 300,000 employees in 77 countries. Its revenue in that year was recorded at €34.6 billion.^[2] It is quoted on Euronext Paris and the New York Stock Exchange. It is headquartered in the 16th arrondissement of Paris.^[3]

Between 2000 and 2003 the company was known as Vivendi Environnement, having been spun off from the Vivendi conglomerate, most of the rest of which became Vivendi. Prior to 1998 Vivendi was known as Compagnie Générale des Eaux.

History

1853-1997: Compagnie Générale des Eaux

On December 14, 1853, a water company named Compagnie Générale des Eaux (CGE) was created by an Imperial decree of Napoleon III. In 1853, CGE obtained a concession in order to supply water to the public in Lyon, serving in this capacity for over a hundred years. In 1860, it obtained a 50-year concession with the City of Paris.^[4]

For a hundred years, Compagnie Générale des Eaux remained largely focused on the water sector. However, following the appointment of Guy Dejouany as CEO in 1976, CGE extended its activities into other sectors with a series of takeovers. Beginning in 1980, CGE began diversifying its operations from water into waste management, energy, transport services, and construction and property. It acquired the "Compagnie Générale d'Entreprises Automobiles" (CGEA), specialized in industrial vehicles, which was later divided into two branches: Connex and Onyx Environnement. CGE then acquired the "Compagnie Générale de Chauffe", and later the Montenay group. The Energy Services division these companies became part of was later (1998) renamed "Dalkia".

CGE's expansion into communication commenced with the establishment of Canal+ in 1983, the first Pay-TV channel in France. This expansion was accelerated after Jean-Marie Messier succeeded Guy Dejouany on June 27, 1996. In 1996, CGE created Cegetel to take advantage of the 1998 deregulation of the French telecommunications market, accelerating the move into the media sector which would culminate in the 2000 demerger into Vivendi Universal and Vivendi Environnement.

1998-2003: Vivendi

Veolia World Headquarters in Paris, 36-38 Avenue Kléber, Paris 16th arr.

Main article: Vivendi SA

In 1998, Compagnie Générale des Eaux changed its name to Vivendi, and sold off its property and construction divisions the following year.

Vivendi went on to list on the New York Stock Exchange (as "V"), and in December, announced a major merger with Canal+ and Seagram, the owner of Universal Studios film company, to become Vivendi Universal and now named Vivendi.

In July 2000, Vivendi spun off the remaining water and waste companies into Vivendi Environnement (IPO in Paris in July 2000 and in New York in October 2001), later (2003) renamed Veolia Environnement.

2003 – present: Veolia

In 2003, Vivendi Environnement became Veolia Environnement. In 2005, the name “Veolia” was established as an umbrella brand for all of the Group’s divisions (water, environmental services, energy services and transport) and a new logo was created.^[4]

In November 2009, Antoine Frérot has become the Chairman and the CEO of the Group after succeeding Henri Proglio who has been appointed CEO of EDF. The change has been part of a huge politico-financial scandal in France^[5][6] as Proglio kept executive positions - and subsequent salary - in both companies until public criticism forced him to give up his Veolia revenues.

Its Veolia Water division remains the largest private operator of water services in the world.

Major divisions and subsidiaries

Veolia Water

Main article: Veolia Water

Veolia Water is the world leader in water services. It handles water and wastewater services for clients in the public sector and in various industries. It also creates and constructs the required technology and infrastructure. In 2009, Veolia Water recorded revenue of €12.56 billion and employed 95,789 people. The Water division operates in 66 countries around the world.^[7]

Veolia Environmental Services

Veolia Environmental Services is second in the world in waste management services. In addition to environmental and logistics services, it treats and converts hazardous and non-hazardous waste. The goal: decrease pollutants in waste to lessen its environmental effects, and promote waste recycling and recovery. The company employs 85,600 staff in 33 countries and had 2009 revenues recorded at €9.1 billion.^[8]

Veolia Energy (Dalkia)

Veolia Energy (Dalkia) strives to maximise facilities’ energy and environmental efficiency. Its services include maintaining and managing heating and cooling systems, making plants more energy efficient, and selecting the most adapted energies. In 2009, Dalkia had €7.1 billion in revenue and employed 52,577 employees in 42 countries, principally in Europe.^[9]

Veolia Energy (North America)

Veolia Energy (North America) is the largest operator and developer of efficient district energy (heating, cooling and cogeneration) systems in North America, located in ten major U.S. cities. It also provides facility operations, energy management, and advisory services. Until February 2011, this division operated under the Trigen Energy brand name.^[10][11]

Veolia Transport

Main article: Veolia Transport

Revenue in 2009 for Veolia Transport was recorded at €5.86 billion. It employs 77,591 people across 27 countries in Europe, North America and Asia. It works with public authorities under public-private partnerships to manage public transit systems (buses, trains, metros, ferries, etc.).^[12]

Around the world

Veolia Environnement is established in 77 countries, with employees across the globe:

• France: 32%
• Europe (not including France): 35%
• Asia-Pacific: 10%
• North America: 9%
• Africa / Middle East: 7%
• South America: 7%^[13]

Veolia Environnement has 2,573 subsidiaries around the world.^[14]

Operating events

West Carrollton plant explosion

On May 4, 2009, a Veolia Environmental Service's plant in West Carrollton, Ohio exploded. The blast leveled two buildings on the property which were a laboratory and a building that had several 200,000 gallon chemical tanks. This particular plant handles fuel blending among other services. Two workers at the plant were injured in the blast.^[15] The explosion caused $50 million in damage to the plant itself. More than a dozen homes up to a mile radius from the blast were also damaged due to the explosion.

Financial information

At September 30, 2010 shares in Veolia Environnement were held as follows: 9.5% by Caisse des Dépôts et Consignations (primary shareholder), followed by Groupe Industriel Marcel Dassault (5.9%), Groupama (5.6%), Velo Investissement (5%) and Électricité de France (3.9%). Individual shareholders accounted for a further 7.7% of shares, employees of the company 1.6%, treasury stock 3% and other institutional investors the remaining 57.8%.^[16]

The following is a summary of data (in millions of euros):^{[1][17][18][19]}

Financial data in millions of euros

Year	2002	2003	2004	2005	2006	2007	2008	2009	2010
Consolidated revenue	30,078	28,603	24,673	25,245	28,620	31,574	35,765	34,551	34,787
Operating income	1,971	1,751	1,617	1,893	2,222	2,461	1,960	2,020	2,120
Net income	339	-2,054	125	622	759	928	405	584	581
Stakeholder equity	N/A	6,300	5,600	N/A	N/A	10,191	9,532	10,131
Free cash-flow	-1,525	168	694	555	901	906	-1,809	-1,344
Net financial debt	13,066	11,804	13,059	13,871	14,674	15,125	16,528	15,128
Staff	271,153	298,498	319,502	336,013	312,590

Stock market data

Data for Veolia Environnment, as listed on the New York Stock Exchange.^[20]

• Market capitalisation on December 31, 2010: $15.27 billion

On the Paris Bourse (the Paris stock exchange), Veolia Environnement is part of the CAC 40 index of shares.

• Number of shares outstanding on December 31, 2009: 493,630,374
• Market capitalisation on December 31, 2009: €11.4 billion

Sustainability, corporate communications and sponsorship

The company’s sustainable development activities are diverse. Because it operates in four sectors with a huge potential impact on the environment, both the risks and opportunities presented by sustainable development activities are substantial. The company’s sustainability efforts are furthered by its Foundation and Institute which emphasize innovation and research.^[21]

The Veolia Environnement Foundation

The Veolia Environnement Foundation supports non-profit activities related to sustainable development, professional continuous development and the protection of the environment in France and overseas. The Foundation supports projects through financial aid and voluntary services provided by its employees. It also supports emergency relief operations in collaboration with humanitarian organisations.^[22]

Following the earthquake in Haiti in January 2010, the Veolia Foundation dispatched 30 tons of emergency supplies (mainly water treatment units) via French Red Cross air transportation. The Foundation also sent Veolia technical experts to provide water to the disaster’s victims.^[23]

Institut Veolia Environnement

The Institut Veolia Environnement was created in 2001 to provide insights into major global challenges such as climate change, urbanisation and various economic, social and cultural issues related to the environment. The institute is built around a committee that brings together 7 experts and an international network of researchers and experts. Its activities include organising conferences and publishing articles and reports.^[24]

Boycott Controvorsies

Veolia has recently been subject to a series of boycott movements based on its ivolvement in light rail projects in Israel. Pro Palestine activists claim that the company provides services to settlements illegal under international law and thus is implicit in war crimes. Several councils in the UK have cancelled their contracts with Veolia as a result of this pressure. Recently, students at the University of Cambridge voted to end the University's contract with them.^[25]

Research and development

As of December 31, 2009, the Group’s research and development investments reached €89.8 million (€92.1 million in 2008, €84.6 million in 2007).^{[citation needed]}

The Research and Innovation division includes 850 experts and supports around 200 scientific partnerships with private and public organisations. The division focuses on four main issues:

• Manage and preserve natural resources
• Control impacts on natural environments
• Care for health and living environments
• Develop alternative sources of energy^[26]

Programmes

Veolia Environnement’s R&I division has determined 9 main development programmes through which a number of research projects are managed:

• Waste collection, sorting, and beneficial re-use
• Sustainable city and building management
• Energy efficiency
• Transport
• Environmental and health standards
• New activities
• Bioresources
• Drinking water
• Waste water^[27]

Veolia Innovation Accelerator

To boost and accelerate the innovation process, Veolia Environnement has established the Veolia Innovation Accelerator initiative.^[28] This is a programme for the identification and support of the best technologies (also called “cleantechs”) within the most innovative start-up companies in the industry.

See also

	Paris portal
	Companies portal

• Vivendi (history of Veolia Environnement)
• Water privatization
• Waste management
• Water supply
• Cogeneration
• Distributed generation
• Veolia Transport (ex-Connex), the group’s transportation division
• Dalkia, the group’s energy division

Major subsidiaries

• Water: Veolia Water (formerly Vivendi Water). Includes Veolia Water Solutions & Technologies.
• Waste management: Veolia Environmental Services (formerly known as Onyx Environmental Services)
• In 2006 Veolia Environmental Services bought Cleanaway UK for £565 million
• Energy: Dalkia (Veolia Energy)
• Transport services: Veolia Transport (Formerly Connex)

Citations

1. ^ ^{a b c d e f g} "Annual Results 2010". Veolia Environnement. http://www.finance.veolia.com/docs/Comptes-consolides-au-31-decembre-2010-en.pdf. Retrieved April 2, 2011. 
2. ^ Annual Results 2009". Veolia Environnement. Retrieved March 21, 2010
3. ^ "Legal Notice." Veolia Environnement. Retrieved on February 9, 2011. "It is published by Veolia Environnement, a corporation with capital of €2,495,631,835 ; Paris Corporate & Trade Register No. 403 210 032, headquartered at 36/38 avenue Kléber, 75016 Paris, France[...]"
4. ^ ^{a b} Veolia Environnement website - Our history
5. ^ « Le double salaire d'Henri Proglio embarrasse l'UMP », Le Monde, 20 janvier 2010, sur le site lemonde.fr, consulté le 23 janvier 2010.
6. ^ ">« Henri Proglio renonce à son double salaire», Le Figaro, 22 janvier 2010.
7. ^ Veolia Water Business Overview 2009, p. 7-14
8. ^ Veolia Reference Document 2009, p. 41-42
9. ^ Veolia Reference Document 2009, p. 46
10. ^ BusinessWire, Trigen’s Name Change to Veolia Energy ..., News: February 17, 2011, downloaded March 20, 2011.
11. ^ Veolia Energy (North America), News, downloaded March 20, 2011.
12. ^ Veolia Reference Document 2009, p. 50
13. ^ Veolia Environnement Annual & Sustainability Report 2009, p. 7, 25
14. ^ Veolia Reference Document 2009, p. 338
15. ^ [http. www.whiotv.com/news/19358956/detail.html West Carrolton Plant Explosion], download date May 4, 2009
16. ^ "Capital Structure". Veolia Environnement. September 30, 2010. http://www.finance.veolia.com/capital-structure.html. Retrieved April 2, 2011. 
17. ^ "Annual Report 2007". Veolia Environnement. http://www.veolia-finance.com/docs/rapport_annuel_2007_en.pdf. Retrieved March 22, 2010. 
18. ^ "Annual Report 2008". Veolia Environnement. http://www.veolia-finance.com/docs/Veolia_Form20-F_CL.pdf. Retrieved April 19, 2009. 
19. ^ "Annual Results 2009". Veolia Environnement. http://www.veolia-finance.com/docs/PR-RESULTS-2009-050310.pdf. Retrieved March 21, 2010. 
20. ^ Bloomberg. Veolia Environnement SA.
21. ^ Veolia Environnement website: Sustainable Development
22. ^ Veolia Environnement ‘Fondation’ website
23. ^ Business in the Community website, ‘How Business in the Community’s Members have responded’
24. ^ Institut Veolia Environnement Activity Report 2009, ‘Analysis, Anticipation & Dialogue’, p. 4-7
25. ^ [1]
26. ^ Research and Innovation 2010, p. 7-11
27. ^ Research and Innovation 2010, p. 16-18
28. ^ Veolia Environnement Accelerator

External links

• Official website