Veolia (VIE) Investor Update summary

Innovation and technology

• Major advancements in desalination include the Barrel modular system, AI-driven plant management, digital monitoring, and mobile water treatment units, reducing energy use and costs significantly.

• Energy consumption for desalination has dropped from 20kWh/m³ to under 3kWh/m³ over 20 years, with costs now below $0.50 per cubic meter, and further reductions targeted.

• AI integration enables predictive maintenance, operational efficiency, and rapid response to plant issues, ensuring uninterrupted water supply.

• Innovations in membrane technology support water reuse and micropollutant removal, expanding applications beyond desalination.

• Modular and digital solutions enable smaller, more efficient plants and rapid deployment, addressing space constraints and emergency needs globally.

Market strategy and growth

• Desalination is a core growth driver, with ambitions to maintain an 18% global market share and double operated plant capacity by 2030.

• Focus on large-scale projects in the Middle East, while expanding into small and mid-sized plants for industrial and municipal clients worldwide.

• Revenue from desalination is around EUR 400 million, split evenly between technology and O&M, with margins of 5–10% and high ROCE due to low capital intensity.

• Growth targets include 6–10% annual revenue increase and EBITDA rising in line with revenues.

• The market is expected to reach $97 billion by 2030, with capacity additions equivalent to 10 mega plants every 18 months and a doubling of growth rate from 2024–2027.

Sustainability and ESG leadership

• Energy efficiency and renewable integration are central, with solar fields, hybrid energy solutions, and reduced chemical use implemented at key sites.

• Brine management is tailored to local conditions, ensuring environmental compliance and minimizing impact; advanced dispersion and treatment technologies are used.

• Extraction of valuable minerals from brine is technically possible but not yet economically viable due to high energy requirements.

• Local capacity building is prioritized, with high local employment rates (e.g., 72% Omanization), training, and promotion of local managers.

• Alignment with UN Sustainable Development Goals is tracked via annual KPIs, focusing on water access, pollution reduction, and sustainable growth.