TRUE COST OF WATER “Providing companies with vital information to assist in the selection of appropriate water strategies to diminish their overall water risk.”

Michael Poonpipat Business Development Director – Veolia Thailand

A global leader able to cover the entire range of environmental solutions

The global benchmark for water services

€12.1 billion

The global benchmark for energy optimization

€7.3 billion

The global benchmark for waste management and resource recovery

€9.1 billion

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WATER

WASTE MANAGEMENT

ENERGY SERVICES

Overview of Veolia Environment

€29.4 billion revenues 77 countries 331,266 employees

€2.4 billion

A global leader in water treatment

Veolia Water Solutions & Technologies in Asia

> 25 yrs in Asia

>300 Design & build projects

>700 Employees In Asia

Taiwan

Philippines Thailand

Vietnam

Malaysia

Singapore

Indonesia

China

144 people

579 people

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Key industrial markets

Oil & Gas (Upstream & Downstream) Technip/Petrovietnam (VN), HHI/Total (NG), Modec/Petrobras (BR), Foster Wheeler/Shell (SG), Air Liquide/Soxal (SG), ABB/Shell (SG), SBM/Encana (CA), Petronas (MY), Emery (MY), Sinopec (CN)

Power Siemens Power (Phu My 3 BOT, VN), Siemens Power (Panglimar, MY), Alstom Power (Keppel Merlimau, SG)

Pharmaceuticals & Healthcare Wyeth (SG), Johnson & Johnson (CN, MY), Alcon (SG), Baxter (SG), Menicon (SG), GSK (SG), L’Oréal (ID), Procter & Gamble (VN), Ciba Vision (ID), Lilly (CN), Merial (CN), Astra Zeneca (CN)

Palm Oil Mill Effluent (POME) Felda Palm Industries (MY), Prolific Yield-Mistral Engineering (MY), Sime Darby (MY)

Food & Beverage Pepsico (TH), Mafipro (MY), Nestle (PH), ThaiBev (TH), PT Sari Usada (ID), SATS (SG), Liaoning Huishan Holdings (CN), Friesland Campina (ID), Procter & Gamble (VN)

Pulp & Paper Thaikraft (TH), Thai Paper (TH), Anhui Shanying Paper (CN), Henan (CN), Xinxiang Xinya Group (CN)

Microelectronics/Photovoltaic Webel Solar (IN), Showa Denko (SG), STM (SG), IMFS (SG), Soitec (SG), Konica Minolta (MY), REC(SG), Sunpower (MY), FCI (SG), Molex (CN), TSMC (TW), Chimei Innolux (TW), Seagate (SG, MY), UMC (SG), Truly (CN), AUO (TW)

Others Automotive: Michelin (CN) Primary metals: Chengde Steel (CN)

http://www3.weforum.org/docs/WEF_GlobalRisks_Report_2013.pdf

World Economic Forum – Global Risks 2013

Water is not where the growth is...

http://www.veoliawaterna.com/north-america-water/ressources/documents/1/19979,IFPRI-White-Paper.pdf

Water is not where the growth is...

http://www.veoliawaterna.com/north-america-water/ressources/documents/1/19979,IFPRI-White-Paper.pdf

THE TIME IS NOW

Blue risks already damaging bottom line

SPAIN Up to $30/m3

VIETNAM $380m loss

THE TIME IS NOW

Blue risks already damaging bottom line

AUSTRALIA $2.3bn loss

THE TIME IS NOW

Blue risks already damaging bottom line

UNITED STATES

CHILE

Threats of boycott

Loss of social license to operate

THE TIME IS NOW

Blue risks already damaging bottom line

Water risks known

REPUTATIONAL REGULATORY

OPERATIONAL FINANCIAL

but need for monetization for sustainable growth

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Video

Step 1: Assessing the direct costs

Direct costs $7

Step 2: Integrating the indirect costs

Step 2: Integrating the indirect costs

Direct costs $7

Indirect costs $5

Step 3: Identifying & monetizing the blue risks

Direct costs $7

Indirect costs $5

Financial impacts of water risks $20

M$

True cost of water

Business margin forecasted

True business margin

impacted by water financial

impacts

True cost of water impacting business margin

17 $ 6 $

- 11 $

True cost of water impacting gross margin

Gross Margin Gross Margin

Including the True Cost of Water

Risks Monetization ?

Threat-mitigation

but also

opportunity capture

Beyond risks come big opportunities

Competiveness

Co-creation of Shared Value

License to growth

Optimization of insurance fees

Improvement of cost of capital

Better rating from agencies

True Cost of Water

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Rating agencies, insurance brokers…

joining the journey

Beyond risks come big opportunities

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Example: a wastewater treatment plant…

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… to a biorefinery

Actiflo®

The ultimate microsand ballasted clarifier

AnoxKaldnes™ MBBR

The cutting-edge biological treatment

Biothane

The global leading anaerobic technology

Cella™

Production of bioplastics from sludge

EVALED™

Towards Zero Liquid Discharge (ZLD)

Creating value through key technologies

Over 350 Proprietary technologies

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Green2Biz, when green meets business

Tangible proof of innovation and cost saving opportunities after each step

Convert environmental responsibility and action into monetary gains

Address a global problem

all companies are facing

Generate measurable value i.e. savings for the company

Scientific methodology based on hundreds of technologies at both global and regional levels

A unique environmental program initiated in Asia by Veolia

A step-by-step process towards sustainable growth and an increase in brand value

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Questions & Answers