(AOF) – Veolia announces the finalization of the acquisition by NGE, an independent public works group, of SADE-CGTH, its 100% subsidiary specializing in the construction and rehabilitation of water and sanitation networks. infrastructure. The amount of the sale amounts to 260 million euros in enterprise value. SADE-CGTH’s activities, focused on civil engineering works and network construction, mainly in the water sector, represent an annual turnover of around 1.1 billion euros in 2022 and a workforce of approximately 6,900 employees.
“This sale is part of the regular review of our asset portfolio, construction activities no longer being part of the Group’s strategic businesses,” declared Estelle Brachlianoff, Managing Director of Veolia.
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Key points
– World leader in environmental services, born in 1853;
– Activity of €28 billion, distributed between water management for 38%, waste management for 39% and energy services;
– Steady rise in international activity: 21% in France, 38% in the rest of Europe, 25% in the rest of the world and the rest in “Global business” – service activity for large companies ;
– Business model based on the complementarity of the group’s 3 businesses in a logic of use and valorization via the circular economy;
– Open capital not “operable” (4.5% of the capital for Caisse des Dépôts and 4.1% for employees), the board of directors of 12 members being chaired by the general director Antoine Frérot who, on 1
er
July, will hand over her general management role to Estelle Brachlianoff;
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Solid balance sheet, the weight of the debt (€18.7 billion at the end of March after the acquisition of Suez), i.e. a leverage effect of less than 3) having been reduced by the antitrust disposals, by €3.4 billion.
Challenges
– Impact 2023 strategy with objectives achieved one year in advance:
– growth of differentiating activities: treatment of hazardous waste, depollution of industrial soil and water, energy efficiency of industries and buildings, recycling of plastics, valorization of bio-waste, industrial ecology offers (saving loops),
– digital reinvention of traditional professions: water, waste, energy networks,
– solid revenue growth, €1 billion in cost savings over 4 years, debt ratio below 3 over the period and 2023 dividend of €1.30;
– Innovation strategy enriched by the acquisition of Suez (X2 patents, bringing the total to 4,800):
– 7 innovation hubs, 14 research centers and 600 specialized FTEs
– network of 7 global platforms working on decarbonization, new loops of materials – metals, plastics -, depollution, bioconversion,
– sharing of information with 200 researchers and 200 partnerships and “Open Playground for co-construction of ecological solutions;
– Net zero environmental strategy for 2050 with 2030 milestone target:
– exit from coal in Europe via €1.5 billion in investments,
– exploitation of landfill gas in Latin America,
– in France, energy autonomy of water and waste services by 2025;
– global launch of the Plastiloop offer of recycled plastic resins,
– increase in the efficiency of drinking water networks;
– Rapid progress in diversification in the dismantling of nuclear power plants, biomethane and waste treatment
– Visibility of the activity with an average contract duration of 11 years and income 85% disconnected from the economy.
Challenges
– Favorable impact of inflation both for raw materials in the energy, plastics, paper, cardboard and recycled metals sectors as well as for water via indexations of municipal contracts;
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Continuation of the ReSource plan to combat the energy crisis and the synergy gains from the merger with Suez;
– Expectation of the future Strategic Program 2024-2027;
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After an 8% increase in operating profit at the end of March, 2023 objectives: “solid growth in turnover, net profit around €1.3 billion, up 11%, debt leverage maintained at around 3 and increase in the dividend in line with that of profit;
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2022 dividend increasing to €1.12, i.e. a rate of 40%.
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The challenges of water recycling
According to a report from the World Economic Forum, demand for water will jump by 55% by 2050. However, only 11% of water is recycled globally, with strong disparities depending on the country: if this rate reaches 89% in Israel, it falls to 15% in Spain. It is even less than 1% in France! The Veolia manager, however, believes that the rate of 10% targeted for 2030, as part of the new Water plan announced by the authorities, is achievable under certain conditions. At the forefront is administrative simplification. Veolia is committed to tripling its production of recycled water by 2030 to bring it to 3 billion m3. In this area, the world leader in environmental services strengthened its know-how during its takeover bid for the former Suez group.