In 2012, the Executive Committee pursued the transformation program launched in 2011, which has four strategic objectives:

• to be the standard setter in major markets where there is a commercial demand for the distinctive added value that Veolia Environnement can provide;
• to achieve a better balance between municipal and industrial clients with the latter to account for at least 50% of revenue (vs. 35% currently);
• to obtain over half of revenue in fast-growing markets (vs. around a third currently);
• and to develop new business models.

The transformation program

This transformation program involves three aspects:

• restructuring operations to reduce debt,
• simplifying and tightening the company's organization,
• and cutting costs.

Greater financial flexibility and an increased focus on high value-added technology and service solutions will enable Veolia Environnement to seize profitable growth opportunities.

The company intends to pursue and accelerate this in-depth transformation process in accordance with its Convergence Plan and has dedicated resources to this purpose.

This transformation will mainly involve two elements:

• the streamlining of organizational structures in all entities—which includes redefining responsibilities at all levels, tightening oversight by functional staff and standardizing processes—
• and pooling and sharing within a given geographic area various support services, such as purchasing, IT systems, and marketing resources to standardize and improve offers for municipal and industrial clients.