VEOLIA ENVIRON. : In 2011, Veolia Water Strengthened Its Position in France and Renewed Contracts for a Total Revenue of One Billion Euros
05/11/2012| 03:00am US/Eastern
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Regulatory News:
Veolia Environnement (Paris:VIE):
In 2011, Veolia Water renewed 238 delegated public service contracts
totaling revenue of 1.01 billion euros, that is, an equivalent level of
revenue as in 2010 in France (excluding the impact of the renewal in
2010 of the contract with the Ile-de-France water authority SEDIF). To
ensure it complies even better with its clients' expectations, Veolia
Water is developing a new professional vision and implementing a new
organization structured around three areas of business expertise:
operation, clientele and commercial relations.
In addition to maintaining contracts with Perpignan, Melun,
Fontainebleau, Valence, Châlons-en-Champagne and Caen la Mer, in 2011
Veolia Water also acquired new contracts, e.g., 37 new delegation
contracts were signed including contracts with the City of Montauban for
the management of its water service and the contract with the Syndicat
des Sables-d'Olonne et du Talmondais municipal association in western
France.
Veolia Water's new business vision
Veolia Water has developed new proposals to improve its response to
local communities' expectations for savings and solidarity.
Veolia Water is implementing "SVR," the new vision of Veolia Water that
combines three fundamentals:
? SERVICE: contain costs and deliver improved performance
? VALUE: maximize the use of all water resources
? RESPONSIBILITY: participate in the main community approaches.
Applied to each proposal submitted to local authorities, Veolia Water's
new vision provides solutions that are tailored to the expectations of
today's world.
For Jean-Michel Herrewyn, Chief Executive Officer of Veolia Water, "Our
SVR solutions are totally operational and enable us to combine
performance, responsible management and cost containment. For Perpignan
Méditerranée, we focused our proposal on performance and responsibility
to provide services with a neutral carbon footprint and guarantee access
to the water service for everyone. In Melun, the emphasis was on value
and the notion of sustainable development in the contract. In Montauban,
our proposal was for an updated water service with a stronger end-user
approach."
Revised organization
Veolia Water's new business approach involves redefining its operational
organization in France. Veolia Water makes service quality its main
priority and refuses low cost approaches. "Producing and distributing
drinking water is a public health issue," says Jean-Michel Herrewyn. "We
therefore decided to revise our model of organization to improve our
productivity and overall performance while still guaranteeing
irreproachable water quality and ensuring compliance with our
contractual commitments."
The new organization currently being rolled out by Veolia Water is based
on three areas of business expertise: operation, clientele and
commercial relations. Each local authority will have a permanent contact
who will ensure the contract is properly implemented.
Decentralization and proximity are maintained as they are two of Veolia
Water's strengths guaranteeing a high level of responsiveness
(round-the-clock response time of less than two hours). The new
organization will be based on 523 operational units, 184 services and 35
centers.
Today, a large number of local authorities have made low cost a
priority. They are reining in their capital expenditure and the level of
services provided to their residents. The combination of SVR solutions
and optimum organization will enable Veolia Water to deliver quality
service at an improved cost.
In delegated public service contracts, the local authority sets the type
and level of services to be provided as well as the corresponding
capital expenditure. The operator submits its best offer to meet the
specified demand. The cost of a public utility service is defined by
past and future capital expenditure, its complexity and the range of
services provided by the operator.
The operator's remuneration and its evolution are not linked to the
service invoiced to users. In fact, an operator is not paid from the
public utility rates levied but for the service rendered, the
operational risks involved, the capital expenditure made and the
increased productivity it delivers during the term of the contract
through its policy of innovation and performance management. The
operator's margin will vary throughout the term of the contract: lower
at the start of the contract, it gradually improves over the years.
Veolia Water, the water division of Veolia Environnement, is
the world leader in water and wastewater services. Specialized in
outsourcing services for municipal authorities, as well as industrial
and service companies, it is also one of the world's major designers of
technological solutions and constructor of facilities needed in water
and wastewater services. With 96,651 employees in 69 countries, Veolia
Water provides water service to 103 million people and wastewater
service to 73 million. Its 2011 revenue amounted to ? 12.617 billion. www.veoliaeau.com
Veolia Environnement (Paris Euronext: VIE and NYSE: VE) is the
worldwide reference in environmental solutions. With more than 330,000
employees the company has operations all around the world and provides
tailored solutions to meet the needs of municipal and industrial
customers in four complementary segments: water management, waste
management, energy management and passenger transportation. Veolia
Environnement recorded revenue of ?29,6 billion* in 2011. www.veolia.com
* Excluding VeoliaTransdev revenues currently under divestment
Analyst and Institutional Investors:
Ronald Wasylec, +33
1 71 75 12 23
or
US Investors
Terri Anne
Powers, +1 312-552-2890
or
http://www.finance.veolia.com
© Business Wire 2012
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