Message from the chairman

Antoine Frérot

Paris, April 21, 2016

Dear Ladies, Gentlemen and Shareholders,

Dear shareholders, our General Shareholders’ Meeting on April 21 was held at a key moment in the life of Veolia. On one hand, the Group has completed its transformation plan resulting in significant reconfiguration and revitalization; on the other hand, it marks the beginning of a new strategic 3-year plan, which will help the Group maintain its leadership position vis a vis its competitors.

Our company has entered a new period in its life, a period that is creative and exciting. To write this new chapter, it has distinct advantages, first among them the benefits of the transformation that has already been completed.

Since 2012, the economic environment has not fundamentally changed. It remains gloomy, marked by the inertia of European growth, the slowdown in emerging markets, and in general a deflationary context…. However, our Group itself has changed dramatically.

It is on this basis, and the potential differentiation to follow that we have built our 2016-2018 strategic plan. It is comprised, as you know, around two complementary axes: growth and efficiency.

  • First, a mainly organic growth policy, complemented by some acquisitions, to reinforce our presence in high-potential sectors or expand our range of expertise, such as the recent acquisitions of Altergis, a French specialist in energy efficiency, AKG, the European leader in polypropylene plastic recycling or finally Kurion, a U.S. company specializing in the treatment of low level radioactive waste. In addition to targeted acquisitions, another growth lever is the development of partnerships, sources of innovation, differentiation and growth, with economic actors in the foreground.
  • As for the second component, efficiency, it envisions the continued improvement in our operating performance. Between now and 2018 we target as least €600 million in savings. 

In our new strategic plan, your role, as shareholders, is crucial, just as it was in our prior transformation plan.

Without your support and loyalty, we could not have reinvented our Group with such magnitude and success. The groundwork we have laid to reposition Veolia on a positive trajectory allows us to bring you fair compensation that deserves your support. That’s why on the basis of the strong results growth achieved in 2015, we have increased the dividend to 73 cents per share, entirely paid in cash.

In order to provide the return to which you are entitled, we will continue to improve Veolia’s performance with our new strategic plan. Armed with your confidence and the transformation efforts that have left us well positioned for the coming decades, we confidently approach this new period. During this time, our company has fixed an objective to increase the dividend paid each year. It is also a way to thank you for your commitment to Veolia. Thanks to you, I have no doubt success will be achieved with this new step.

Antoine Frérot, Chairman and Chief Executive Officer