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COMMITED TOGETHER TO WATER, A SOURCE OF LIFE
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Page 1: Degremont Annual Report 2010

COMMITEDTOGETHERTO WATER, A SOURCE OF LIFE

Page 2: Degremont Annual Report 2010
Page 3: Degremont Annual Report 2010

Through the very nature of its business, Degrémont is

not only a major player in sustainable development, but also a pioneer

in the design, provision and operation of sustainable water manage-

ment solutions.

Degrémont is fully committed to the SUEZ ENVIRONNEMENT

corporate strategy, at the heart of which lies a vocation to provide the

company’s customers with solutions that help create green growth,

while at the same time respecting human beings and the environment.

Page 4: Degremont Annual Report 2010

Publishing an annual report provides us with a welcome opportunity to thank our customers, employees and partners.It also represents a further step in our drive for continuous improvement, as it enables us to take stock of a year’s achievements.

The document before you is structured into two parts. The first booklet presents Degrémont’s role and expertise in the field of water treatment. The second reviews our activities and successes during 2010, but also takes a look at what the future may hold.

We hope the report will provide you with an initial feel for who we are and what we do, or get to know more about us. For further information, please visit our website at: www.degremont.com

A SOURCE OF LIFE

COMMITTED TOGETHER

TO WATER,

Page 5: Degremont Annual Report 2010

ABOUT US

06 ENVIRONMENTAL PERFORMANCE: A DRIVER OF GROWTH

INTERVIEW WITH JEAN-LOUIS CHAUSSADEChief Executive Officer of SUEZ ENVIRONNEMENT

07DEGRÉMONT, LEVERAGING OPPORTUNITIES ON WORLDWIDE SCALE

INTERVIEW WITH THIERRY MALLETChairman of Degrémont and Senior Executive Vice President of SUEZ ENVIRONNEMENT in charge of the International Sector

08 DRAWING ON OUR EXPERIENCE TO SHAPE THE FUTURE

INTERVIEW WITH REMI LANTIERChief Executive Officer of Degrémont

SOURCE OF SOLUTIONS

SOURCE OF SUCCESS

11 FOUR INTEGRATED AREAS OF ACTIVITY

12 FIVE PROVEN AREAS OF EXPERTISE

14 OUR FLAGSHIP PRODUCTS

16 FORGING AHEAD TOGETHER

18 PROUD OF OUR HISTORY

Because water is a source of life. Because our areas of activity are a source of solutions. We strive to ensure that they are also a source of progress, of success, of commitment and of prosperity.

Page 6: Degremont Annual Report 2010

A LEADING EXPERT IN THE WATER TREATMENT INDUSTRY Degrémont designs, builds, equips, operates and finances facilities that combine technical and economic performance with respect for their local environment, whether on natural or urban sites.

Degrémont’s employees are committed to the values which, for over 70 years now, have underpinned the company’s pursuit of excellence: being ambitious for Degrémont, committing with courage, creating trust through respect and integrity, progressing and helping others to progress. This culture is the source of the company’s expertise and performance.

Degrémont draws on its areas of expertise to offer its municipal and industrial customers solutions that are the most advanced, reliable and affordable available, and best suited to local resources and conditions.

70 YEARS’ EXPERIENCE

MORE THAN 500 TECHNOLOGIES PATENTED

10,000 PLANTS EQUIPPED WITH A DEGRÉMONT TECHNOLOGY WORLDWIDE

SOURCE OF SUCCESS

Page 7: Degremont Annual Report 2010

Natural resources are not infinite. Each day, SUEZ ENVIRONNEMENT and its subsidiaries deal with the challenge of protecting resources by providing innovative solutions to industry and to millions of people. SUEZ ENVIRONNEMENT supplies drinking water to 91 million people, provides wastewater treatment services for 61 million people, and collects the waste produced by 50 million people.

SUEZ ENVIRONNEMENT has 79,554 employees and, with its presence on five continents, is a world leader exclusively dedicated to water and waste management services. In 2010, SUEZ ENVIRONNEMENT, a subsidiary owned 35.8% by GDF SUEZ, posted revenues of €13.9 billion.

€1,520 M REVENUES IN 2010

€13.5 M INVESTED IN R&D IN 2010

4,500 EMPLOYEES

IN 2010, DEGRÉMONT’S OPERATIONS TEAMS SUPPLIED DRINKING WATER TO ALMOST

19 MILLIONPEOPLE AND TREATED WASTEWATER FOR MORE THAN

21 MILLION PEOPLE

1 BILLIONPEOPLE SERVED BY A FACILITY BUILT BY DEGRÉMONT

ABOUT US

Page 8: Degremont Annual Report 2010

ii SOURCE OF SUCCESS

JEAN-LOUIS CHAUSSADE CHIEF EXECUTIVE OFFICER OF SUEZ ENVIRONNEMENT

ENVIRONMENTAL PERFORMANCE:A DRIVER OF GROWTH

What importance is afforded to innovation within the Group?J.-L.C. Research and innovation are fundamental to the strategy of SUEZ ENVIRONNEMENT, as they will be fundamental to meeting the environ-mental challenges of the 21st century. Our policy of continuous innovation is backed by a structured network of expertise and research centres. We regularly deploy new technologies and services to meet the needs of our customers, in particu-lar in fields such as waste recycling, the protection of water resources, environ-mental footprint reduction and renew-able energy generation. We have also set up an investment fund, Blue Orange, to support start-up companies offering in-novative technologies in the environmen-tal services industry, thus strengthening our ability to introduce new products and services. At the end of 2010, for example, we signed an initial exclusive agreement with the Irish company CynarLtd, which de-velops a technology that enables plastic waste to be converted into diesel.

What would you single out as the company’s main achievements during 2010?J.-L.C. 2010 was a year in which we secured a number of important contracts, in both water and waste management. Our contract with IBM, for example, to equip all of Malta’s water meters with re-mote reading capabilities, or the choice of SITA France to operate a household waste incineration plant at Ivry, capable of handling the waste of 1.2 million people in

What is your assessment of 2010?JEAN-LOUIS CHAUSSADE For SUEZ ENVIRONNEMENT, 2010 was a year in which we concentrated on consolidat-ing the company’s strategic positions and accelerating growth internationally. Despite a difficult economic environ-ment, in particular in the developed coun-tries, the Group met its performance objectives, recording revenue growth of 12.8%. Its presence in over 70 countries, strengthened by the friendly takeover of Aguas de Barcelona (AGBAR), confirms SUEZ ENVIRONNEMENT as a major player in the environmental industry, worldwide.

Paris and its surroundings, making it one of the largest such facilities in Europe. Beyond the purely commercial sphere, we intensified our communications with customers, with a view to better under-standing their needs and expectations.

In terms of water treatment, we have for some years now been engaged in a re-flection on the water cycle, with the aim of preserving biodiversity, rethinking how we use water and making better use of wastewater as a source of energy. This work has enabled us to develop new products and services, such as “Degrés Bleus®”, already introduced by a number of local authorities and which uses the calories contained in wastewater to gen-erate heat. This is then used to heat indi-vidual households, sporting facilities and community buildings, reducing the emis-sion of greenhouse gases by between 50 and 80%. Another solution, “Dolce Ô”, al-ready has over 120,000 private subscrib-ers, all of whom can now monitor their consumption of water in real time, help-ing to combat the problem of leaks. Taken together, these innovative solutions make us pioneers in our areas of activity, serv-ing as further proof of our commitment to supporting our customers in meeting the challenges they face in the domain of environmental performance.

Page 9: Degremont Annual Report 2010

ii SOURCE OF SUCCESS

THIERRY MALLET CHAIRMAN OF DEGRÉMONT AND SENIOR

EXECUTIVE VICE PRESIDENT OF SUEZ ENVIRONNEMENT IN CHARGE

OF THE INTERNATIONAL SECTOR

What role is afforded to Degrémont within the Group’s strategy?T. M. SUEZ ENVIRONNEMENT is de-termined to consolidate its position as a worldwide player of reference in its field, and Degrémont is at the heart of that strategy. Thanks to its technological expertise, recognised by industrial and public-sector customers alike, through-out the world, Degrémont is perfectly positioned to spearhead that drive in-ternationally. Present across five conti-nents, the compagny has developped a deep understanding of local issues that will enable the entire Group to move into new markets and new regions.

Which regions in particular?T. M. In Europe, SUEZ ENVIRONNEMENT is looking to maintain and consolidate its historic base by offering services fea-turing a high proportion of value added, and that meet the demands of these ma-ture markets in terms of environmental performance.

Australia is a prime example of the development strategy adopted by SUEZ ENVIRONNEMENT, accounting for 6% of company revenue during 2010, compared to just 1% in 2004. Through its projects in Perth and, more recent-ly, Melbourne, Degrémont is playing a major role in this growth. The com- pany has become a valued partner to local authorities increasingly in search of desalination solutions and ways to re-use wastewater after treatment, to

What is your assessment of 2010 and how do you see the outlook for the future?THIERRY MALLET In 2010, SUEZ ENVIRONNEMENT strengthened its position internationally, thanks to an ambitious and selective development strategy. For example, 27% of Group rev-enue derived from outside Europe in 2010, compared to 20% in 2008. Among the factors favouring the growth of the Group are our improved understanding of future needs in terms of water and waste management, increasing demand for equipment, and the introduction of more stringent environmental standards in numerous countries.

help them deal with recurrent issues of water resources. In the USA, the wa-ter market remains highly fragmented, but strong demand for environmental performance is certain to lead to further consolidation among the major players and thus favour United Water, backed as it is by the technological expertise of SUEZ ENVIRONNEMENT.

In China, the Group currently supplies 13 million people with drinking water, making it one of the top three private suppliers of drinking water and waste-water treatment services in the country. It operates principally via our subsidiary, Sino French, a joint venture between SUEZ ENVIRONNEMENT and its Chinese partner, New World.

Dating from 1985, this partnership pro-vides SUEZ ENVIRONNEMENT with a solid local base, enabling it to better under-stand the context and expectations of its customers.

SUEZ ENVIRONNEMENT is also pres-ent in the Mediterranean basin, through LYDEC in Morocco, and SEAAL and AGBAR in Algeria, and is also active in the Middle East (Saudi Arabia, the United Arab Emirates, Jordan…). Final-ly, the Group has a presence in Central Europe (Poland, Czech Republic, Slo-vakia) in both water and waste man-agement, and where its development is being fuelled in particular by the applica-tion of European Union environmental regulations.

DEGRÉMONT, LEVERAGING OPPORTUNITIES ON A WORLDWIDE SCALE

6/7

Page 10: Degremont Annual Report 2010
Page 11: Degremont Annual Report 2010

ii SOURCE OF SUCCESS8/9

RÉMI LANTIER CHIEF EXECUTIVE OFFICER

OF DEGRÉMONT

DRAWING ON OUR EXPERIENCE TO SHAPE THE FUTURE

In Europe, a mature market in which con-ditions continue to prove difficult, we are constantly developing products and ser-vices to support our customers in their plant refurbishment and upgrade proj-ects. We work with them to meet their sustainable development objectives, in particular in the fields of energy efficiency and social responsibility.The challenge for the future will be to respond to the growing scarcity of wa-ter resources, but also to convert waste- water into a source of energy. We will continue with our approach, designed to guarantee technological and business performance while at the same time re-specting the environment, in particular by reducing the environmental impact of our own activities.

What are the foundations upon which Degrémont’s growth is built? R. L. The world is constantly chang-ing, as are the needs of our customers… and as are we.In a difficult and contrasting global context, our ability to adapt is key. We constantly develop our methods and practices, maintaining and furthering the expertise of our employees through ongoing training programmes. We con-stantly seek to intensify communications with stakeholders, to improve our under-standing of the issues they face. Our research and development activities are also a key driver of growth. We pur-sue a range of partnerships – technolog-ical partnerships, financial partnerships, research partnerships – with a view to

What is your take on 2010? How does your roadmap for the future look?RÉMI LANTIER Our global presence, coupled with over 70 years worth of ex-perience, make Degrémont remarkably capable of adapting and confirm our po-sition as a worldwide expert in water treatment. Our four complementary ar-eas of expertise and remarkable human resources make us uniquely qualified to seize new opportunities for growth.In 2010, we supplied solutions for many emerging needs in Brazil, Australia and China, by responding specifically to what the market required of us: industrial so-lutions, high-tech products and, where requested, turnkey build, operate and finance packages. In Australia, we were called upon to implement two enor-mous projects, in terms of both their size and scope: construction projects in Melbourne, and operations in Perth and Adelaide.

further strengthening our competitive ad-vantage through the synergy of expertise.

You say you adapt to the needs of your customers. What concrete examples can you give of that? R. L. First and foremost, we maintain close relationships with them locally, and regularly conduct satisfaction sur-veys. We support them as they go about their business. For example, by making available to them Perform&eau™, our training resource designed specifically for plant commissioning, and backed by 40 years worth of Degrémont experience. Then there’s O2C, which helps local au-thorities to measure the environmental footprint of their plants. We pay partic-ular attention to ensuring the safety of both future operators and our staff, a key consideration within our profession-al approach. In the agreements we enter into, our commitments are linked to those of our customers: efficiency, profitability and sustainability. Speaking more generally, we place cus-tomer satisfaction at the heart of our priorities. This annual report contains nu-merous illustrations of our commitment in this respect.

So, to sum up? R. L. Degrémont is a pioneer in the sustainable management of water re-sources. Individually and collectively, we have bought into a noble, practical vision: to be “committed together to water, a source of life”. That is what drives us and fuels our pride.

Page 12: Degremont Annual Report 2010

SOURCE OF SOLUTIONS

Page 13: Degremont Annual Report 2010

ii SOURCE OF SOLUTIONS

DESIGN AND CONSTRUCTION

Its expertise enables Degrémont to meet the needs of its customers for all types of plant: new units, extensions, refurbishments… Acting as both project manager and a water treatment expert, Degrémont is responsible for managing all stages of the plant design and construction process: choice of processes and site locations, purchasing management, site supervision, equipment assembly, commis-sioning. Degrémont offers future operators user-friendly facilities and ensures they fi t in har-moniously with the natural environment.

OPERATION AND SERVICES

Managing facilities effi ciently on a day-to-day basis, but also looking to the future and offering new services… Degrémont’s sphere of activity extends from the day-to-day management of facilities (op-erational tools, operational management, infrastructure maintenance) to services provided to operators (supply of spare parts, refurbishment, training). In addition, when Degrémont builds a facility, its expert operators are involved in all the preliminary stages of the project (design, risk assessment, technical validation, ergonomics), thereby making it easier to anticipate opera-tors’ needs. For its customers, this joint expertise as both a builder and an operator is a guar-antee of reliability and performance.

EQUIPMENT AND TECHNOLOGIES

Designing the solutions of the future, today…Either directly or via a network of resellers, Degrémont offers equipment “packages” de-signed to improve and/or diversify the performance of existing facilities. Drying, sludge incineration, water disinfection using ozone and UV treatments, ultrafi ltration, reverse osmo-sis, ion exchange, treatment of process water, biological treatment, separation… All these applications bring together Degrémont’s expertise and are exemplifi ed through interna-tionally renowned brands such as Innoplana, Ozonia, Triogen, Aquasource, Infi lco, Anderson or Water & Power Technologies.

BOT: BUILD, OPERATE, TRANSFER

Supporting our customers, being fully involved at all stages of a project, from fi nancing through construction to operation… A BOT contract is implemented when a local authority, province, state or industrial group re-quires Degrémont to be fully involved up to and including fi nancing arrangements. Degrémont is represented by a company solely dedicated to the project, and is responsible for the design, construction, fi nancing and operation of the water treatment facility. In return, the customer undertakes to pay a fee covering the operating costs and depreciation of the capital invested. At the end of the contract, the facility is transferred over to the customer.

4 INTEGRATED AREAS OF ACTIVITY BY COMBINING AND MASTERING ITS 4 AREAS OF ACTIVITY, DEGRÉMONT POSITIONS

ITSELF AS A WORLDWIDE REFERENCE IN THE DOMAIN OF WATER TREATMENT.

10/11

Page 14: Degremont Annual Report 2010

ii SOURCE OF SOLUTIONS

SOLUTIONSFOR THE OIL AND GAS INDUSTRIES, STEELMAKING, PAPER, PETROCHEMICALS, THERMAL POWER STATIONS…

80 CAPITALCITIES EQUIPPED WITH DEGRÉMONT PLANTS

3,000 DRINKING WATERPRODUCTION PLANTS BUILT BY DEGRÉMONT WORLDWIDE

250 DESALINATION PLANTS BUILT BY DEGRÉMONT WORLDWIDE

10 MILLIONPEOPLE CONSUME WATER DESALINATED BY DEGREMONT

5 PROVEN AREAS OF EXPERTISE

DRINKING WATER PRODUCTION

The growing scarcity of the world’s water resources calls for innovative solutions. Degrémont can produce drinking water from whatever source, whatever its quality…The drinking water market is driven both by developing countries and industrial countries. Suffering from their difficulties in accessing water, developing countries are looking for reliable and affordable production solutions. In the industrialised world, the focus is on improving comfort and public health. The diversity of the technologies developed by Degrémont (sand filtration, flotation, ultrafiltration) is a key advantage in responding to these multiple priorities.

DESALINATION

To combat water stress, Degrémont designs technologies capable of producing fresh water from seawater, an alternative for the future…Desalination is an alternative with the capacity to respond to rising need for domestic and industrial water. Degrémont provides unique and efficient treatment processes for each stage, with a particular focus on pre-treatment in reverse osmosis desalination, the pro-cess that dictates the efficiency, reliability and durability of membrane-based systems.

Page 15: Degremont Annual Report 2010

ii SOURCE OF SOLUTIONS

30 INNODRY 2E™DRYING SHOPS

51 THERMYLISTM

THERMAL OXIDATION SYSTEMS

DEGRÉMONT OFFERS ITS CUSTOMERS 5 AREAS OF EXPERTISE, AFFORDABLY AND TAILORED TO THEIR ECONOMIC AND GEOGRAPHICAL REALITIES.

12/13

BIOSOLIDS / SLUDGE TREATMENT

Extracting energy from sludge, cutting the amount of waste resulting from wastewater treatment… As a secondary product of wastewater treatment, sludge is a major economic and en-vironmental priority. As a result of regulatory changes and better wastewater treatment processes, sludge quantities have increased significantly. To deal with this issue, Degrémont offers its customers a wide range of processes, from digestion, thickening, dewatering and drying, through to incineration.

INDUSTRIAL WATER TREATMENT AND PRODUCTION

Degrémont aids its industrial customers in the selection of solutions tailored specifically to their process water production and effluent treatment needs… Industrial wastewater treatment is a fast-growing sector. In partnership with Ondeo IS, Degrémont is able to draw on its expertise in a wide array of processes to provide wa-ter production solutions compatible with the most sensitive industrial requirements. Degrémont’s expertise is widely acknowledged on this market.

MUNICIPAL WASTEWATER PURIFICATION AND RE-USE

Degrémont’s solutions enable rain and household water to be treated to a level of quality that opens up many possibilities…Degrémont’s expertise and experience in this field guarantee local authorities and industrial customers public health and environmental safety as well as full compliance with regula-tory requirements. Degrémont also supplies processes for the re-use of wastewater to meet agricultural, urban and industrial needs, or as an affordable means to restore natural water reserves.

2,500 WASTEWATER PLANTSBUILT BY DEGRÉMONT WORLDWIDE

Page 16: Degremont Annual Report 2010

ii SOURCE OF SOLUTIONS

Aquadaf™

Ultrazur™ Smartrack™

2010

Ultrazur™ ZW 1000

Ultramarine™ Smartrack™

Seaclean™ Filter

Seadaf™

Dehydris™ Lime

Dehydris™ Osmo

Digelis™ Turbo

DEGRÉMONT OFFERS A RANGE OF PRODUCTS AND SERVICES THAT FAVOUR THE RESPONSIBLE USE OF WATER, MITIGATION OF ENVIRONMENTAL IMPACT AND IDENTIFICATION OF ALTERNATIVE RESOURCES…

2010

OUR FLAGSHIP PRODUCTS

* Smartrack™is a standardised production system that can adapt to any plant changes, offering customers freedom to choose their supplier when replacing the ultra� ltration modules. It covers 3 of Degrémont’s areas of expertise: Drinking Water, desalination and re-use.

DRINKING WATERIn order to meet new public health requirements, Degrémont has developed state-of-the-art solutions: from fl otation to ultrafi ltration, our technologies are increasingly more compact, automated, reliable and cost-effi cient.

DESALINATIONAt the cutting edge of innovation in desalination, Degrémont is fulfi lling sustainable development priorities: use of wind power, energy recovery, pre-treatment systems to minimise membrane washing, improved concentrate dispersion processes to protect marine wildlife. BIOSOLIDS

When it comes to biosolids, Degrémont possesses expertise in multiple areas, with a focus on innovation in treatment quality, whatever the fi nal purpose of the sludge produced. The aim is to use the biosolids effi ciently, whether for agriculture or energy generation.

*

*DRINKING WATER PRODUCTION WITH RACK-MOUNTED OUT/IN ULTRAFILTRATION MODULES

CUSTOMER BENEFITUltrazur™ forms a bacteriological barrier that guarantees water that is safe for public health.

PRE-CLARIFICATION BY SUBMERGED ULTRAFILTRATION MEMBRANES

CUSTOMER BENEFITThe compact Ultrazur™ ZW1000 forms a bacteriological barrier that guarantees water that is safe and of consistent quality.

SURFACE WATER CLARIFICATION BY RAPID FLOTATION WITH A PLUG-FLOW FLOCCULATOR-RICTOR™ TECHNOLOGY UNDER LICENSE

CUSTOMER BENEFIT Instant start-up for optimum ease-of-use, small footprint.

INTENSIVE SLUDGE DEWATERING BY PRE-LIMING BEFORE CENTRIFUGING

CUSTOMER BENEFIT

Much higher dewatered sludge quality than achieved by post-liming.

SEAWATER PRE-TREATMENT WITH RACK-MOUNTED OUT/IN ULTRAFILTRATION MODULES

CUSTOMER BENEFIT Running upstream of the reverse osmosis process, this solution contributes to sustainability by preventing iron salts being discharged into the marine environment.

SEAWATER CLARIFICATION BY MULTIMEDIA PRESSURE FILTRATION

CUSTOMER BENEFIT Installable on facilities of any size, the Seaclean™ fi lter guarantees the stability and quality of fi ltered water ahead of the reverse osmosis process.

SEAWATER CLARIFICATION BY RAPID FLOTATION

CUSTOMER BENEFITWith its high capacity to tolerate fast fl ow rates, making it possible to treat large volumes of water for reverse osmosis, Seadaf™ is a fl exible unit for treating water turbidity (algae or suspended solids).

INTENSIVE ELECTRO-OSMOTIC SLUDGE DEWATERING IN PARTNERSHIP WITH EIMCO WT

CUSTOMER BENEFIT

Drier sludge without any mineral processing.

INTENSIVE BIOLOGICAL OR MIXED SLUDGE DIGESTION, USING THERMAL HYDROLYSIS FOR BIOLOGICAL SLUDGE

CUSTOMER BENEFIT Size of the digester halved, increased biogas production, and a 5 to 10 point increase in dryness.

Page 17: Degremont Annual Report 2010

ii SOURCE OF SOLUTIONS

INDUSTRYDegrémont’s technologies produce water that is consistent with the most critical industrial needs, contribute to our customers’ industrial processes, and provide the raw material needed to manufacture a wide range of products.

MUNICIPAL WASTEWATER TREATMENT / RE-USE Innovative for their compact size and reduced energy and reagent consumption, these technologies guarantee better biodiversity protection. In addition, Degrémont supplies solutions that re-use treated water for agricultural, industrial or municipal purposes.

Greendaf™

Cyclor™

Oxyblue™

Cleargreen™

Greenbass™

Compakblue™

Ultrablue™ Smartrack™

SERVICE SOLUTIONS To help local authorities operate their plants, Degrémont provides a diverse range of Service Solutions.

The local authority maintains operational control, whilst receiving assistance for specifi c services and tasks: start-up, equipment maintenance, refurbishment, extensions, specialised equipment rental, process analysis, online parts and equipment purchase, operator training.

2010

2010

2010

14/15

*

AN EFFICIENT COMBINATION OF THE OZONE AND BIOFOR™ TECHNOLOGIES IN ORDER TO TACKLE THE PROBLEM OF POORLY BIODEGRADABLE COD (CHEMICAL OXYGEN DEMAND) IN WASTEWATER AND PROCESS WATER

CUSTOMER BENEFIT Economical, through a 50% reduction in ozone requirements. This highly fl exible process is also effi cient for the removal of micro-pollutants in municipal wastewater plants.

TERTIARY PHOSPHORUS REMOVAL BY RAPID FLOTATION - RICTOR TECHNOLOGY UNDER LICENCE

CUSTOMER BENEFIT Outstanding effi cacy of phosphorus removal, with low reagent consumption.

SLUDGE ACTIVATION PROCESS USING A SEQUENCE BIOLOGICAL REACTOR

CUSTOMER BENEFIT Complete treatment process allowing discharge into sensitive areas with a particularly small footprint.

DREGULATION OF SEQUENCEDACTIVATED SLUDGE AERATION

CUSTOMER BENEFIT Greenbass™ reduces energy consumption in sewage plants by continuously adjusting the airfl ow used in biological treatments.

DEDICATED BIOLOGICAL TREATMENT FOR HIGH AMMONIA EFFLUENTS

CUSTOMER BENEFIT

Without affecting performance or reagent consumption, Cleargreen™ reduces aeration requirements by 60% compared with conventional nitrogen treatment processes.

SUBMERGED DISK PROCESS FOR ELIMINATING SUSPENDED SOLIDS AND ASSOCIATED POLLUTANTS

CUSTOMER BENEFITCompakblue™ is an effective, compact and energy-effi cient solution, producing water of suffi cient quality to be re-used or discharged into sensitive areas.

CLEARED WATER TREATMENT WITH RACK-MOUNTED OUT/IN ULTRAFILTRATION MODULES FOR RE-USE APPLICATIONS

CUSTOMER BENEFIT

Plant outlet solution for water re-use (agriculture, urban areas,…).

Page 18: Degremont Annual Report 2010

XAVIER BOULAT

Director of Finance and Administration

“We are committed to ensuring sustainable growth that creates

value for our customers, employees and shareholders.”

CLÉMENT DE VILLEPIN

Director of Human Resources

“Our generalised approach of managing

expertise and skills helps each of our

employees to develop and thus better serve

our customers, wherever they are.”

FRANÇOIS BERNÈS

Chief Executive Officer, Degrémont Technologies

“Present all over the world, we provide

the human resources and expertise of an

international group with strong local roots.”

SABINE ROUS

Director of Communications

“Degrémont, a modern brand with a rich heritage, one that

allies the ambitions and expectations of customers and employees alike in

treating and supplying water, source of life.”

JEAN DE NASSAU

Adviser to the CEO

“Restoring to nature every day what it gave us the day before, that

is the fine business Degrémont is in.”

JACQUES BLEIN

Chief Operating Officer

“We innovate together with our customers,

‘co-creating’ sustainable solutions that address

the economic and environmental issues

they face.”

RÉMI LANTIER

Chief Executive Officer

“Our approaches take into account

contemporary water issues, thus providing our customers with

the best technological, economic and environmental performance.”

FORGING AHEAD TOGETHER

8 MEMBERS HAVE JOINED THE EXECUTIVE

COMMITTEE IN THE LAST 3 YEARS

4 MEMBERS FROM DIFFERENT SUBSIDIARIES OF SUEZ ENVIRONNEMENT

EXECUTIVE COMMITTEE

ii SOURCE OF SOLUTIONS

Page 19: Degremont Annual Report 2010

JOSÉ DEL CASTILLO

Director, Iberia, Africa, Latin America Business

Line

“Like our customers, and for our customers, we work to reduce the environmental impact

of our activities.”

FRANÇOIS FÉVRIER

Director, Middle-East& Asia-Pacifi c Business Line

“Our ambition in Australia is becoming a reality. We will continue to adapt our products, processes and

services to local contexts.”

MICHEL ULRICH

Director, Melbourne Business Line

“In Melbourne, Degrémont will be producing and supplying water on an

unheard-of scale, proving its ability to take on

ambitious challenges.”

PIERRE-YVES POULIQUEN

Director, Europe Business Line

“We support our European customers in their

pursuit of environmental performance, in particular by exploiting the energy-

producing potential of wastewater.”

FRÉDÉRIC CLAUX

Director, BOT Activities

“Our partnerships enable us to be more competitive, to off er innovative solutions and strengthen our

presence in fast-growing markets.”

CLAUDIO TAGNIN

Director, Engineering, Innovation

& Procurement

“Our innovations and engineering focus on improving the energy effi ciency

and environmental performance of our

customers.”

MARC HAUCHECORNE

Director, Processes & Organization

“We organise and share our expertise, processes and tools, to serve our customers effi ciently

and eff ectively, wherever they are in the world.”

THE EXECUTIVE COMMITTEE WORKS TOGETHER TO DEVELOP IDEAS, CONSULT AND MAKE DECISIONS WITH A VIEW TO ENSURING THAT THE COMPANY’S STRATEGY IS CONSISTENT AND EFFECTIVELY IMPLEMENTED. THE COMMITTEE IS SUPPORTED BY INTERNAL DEPARTMENTS ON MATTERS THAT CALL FOR CROSS-DISCIPLINARY EXPERTISE. ITS AIM: TO ENSURE THAT DEGRÉMONT CONTINUES TO BE AN EFFICIENT, SUCCESSFUL AND INNOVATIVE COMPANY.

AVERAGE AGE

49 4 NATIONALITIES

16/17 ii SOURCE OF SOLUTIONS

Page 20: Degremont Annual Report 2010

1939 / FRANCECompany set up in Paris by Gilbert Degrémont.

1947 / BELGIUMFirst international subsidiary.

1948 / EGYPTFirst drinking water production plantoutside France.

1950 FIRST PUBLICATION OF THE WATERTREATMENT HANDBOOK. The essential worldwide guide towater treatment.It has since been translated intoEnglish, Spanish, German, Russianand Chinese.

1953 / INDONESIAJakarta inaugurates its fi rst drinkingwater production unit.1 million people gain accessto water.

1954 First patent fi led for the Pulsator™fi ltration process, a pulsed sludgeblanket clarifi er which is stillused in drinking water production.Since then, Degrémont has fi ledmore than 500 patents.

1957 In less than 10 years, 15 internationalsubsidiaries created, including one inNew York in 1961.

1967 Degrémont joins the Lyonnaise desEaux Group.

1975 / SAUDI ARABIAFirst reverse osmosis desalinationplant in Riyadh.

CAPACITY: 200,000 cu. m. of water per day

1984 Development of the Biofor™biological fi ltration system fortreating carbon, ammonia nitrogenand nitrates whilst removingsuspended solids from wastewater.

1,000 units installed worldwide so far

1988 / FRANCE First membrane ultrafi ltration plant, a process that, among other things, replaces the conventional clarifi cation and disinfection treatment.

1991 DEGRÉMONT IS THE FIRSTWATER ENGINEERING FIRM TO BE AWARDED ISO 9001 CERTIFICATION.

1997 Inception of SUEZ - Lyonnaise desEaux

2000 / FRANCEDEGRÉMONT IS THE FIRST FRENCHENGINEERING FIRM TO BE AWARDED ISO 14001 CERTIFICATION FOR ITSENVIRONMENTAL PROTECTIONRESEARCH PROCESS.

PROUD OF OUR HISTORYii SOURCE OF SOLUTIONS

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2005 / ALGERIAFive design and build contractsfor drinking water production units.

TOTAL INSTALLED CAPACITY:1.6 million cu. m. per day

2006 / CANADACommissioning of the world’slargest sludge thermal oxidationfacility, Lakeview.

CAPACITY: 400 tonnes per day

2006 / RUSSIAStart-up of the world’s largestultrafi ltration plant, Moscow.

1,344 membrane modules CAPACITY: 275,000 cu. m. per day

2007 / AUSTRALIAConstruction and operation of theSouthern Hemisphere’s largestseawater desalination plant, Perth.

CAPACITY: 143,000 cu. m. per day

2008 / EGYPTDesign and build contract for theextension of Africa’s largest sewageplant, Gabal El Asfar.

2001 Development of the Héliantis™sewage sludge solar dewateringprocess, refl ecting a sustainabledevelopment approach: limited wasteproduction, reduced greenhouse gasemissions, use of renewable energy.

2001 / CHILEConstruction of Latin America’slargest wastewater treatmentplant. The Farfana wastewaterplant currently processes municipalwastewater for 3.7 million PE, i.e.50% of the population of Santiago.

CAPACITY: 800,000 cu. m. of water per day

2003 / UNITED ARAB EMIRATESThe world’s fi rst hybrid desalinationplant using reverse osmosisand distillation, Fujairah.

REVERSE OSMOSIS CAPACITY:170,000 cu. m. per day

DISTILLATION CAPACITY: 280,000 cu. m. per day

2004 DEGRÉMONT IS AWARDEDISO 14001 CERTIFICATION FORENVIRONMENTAL MANAGEMENT. Launch of the OMEGA continuous quality improvement programme, a focus for the different initiatives still underway to enhance Degrémont’s performance.

2008 STOCK MARKET AND CAC 40 LISTING OF SUEZ ENVIRONNEMENT, operating exclusively in the water and waste management sectors.

2009 / AUSTRALIA30-year build and operate contract in Melbourne for the largest seawater desalination plant ever built under a public-private partnership. It will supply 4 million people each day.

CAPACITY: 450,000 cu. m. per day

2009

DEGRÉMONT CELEBRATES ITS 70TH BIRTHDAY! http://www.degremont-70years.com/f/en/

2010 / FRANCESIAAP commissions Degrémont to design and build the new pre-treatment facility for the Seine Aval sewage plant, Achères.

CAPACITY: 1.4 million cu. m. per day

2010 / CHINADegrémont and a consortium of partners are awarded the fi rst DBO contract from the city of Hong Kong for the refurbishment, extension and operation of the Pillar Point sewage treatment plant.

CAPACITY: 550,000 cu. m. per day

THE EXPERTISE WE ACCUMULATE YEAR AFTER YEAR IN OUR AREAS OF ACTIVITY GIVES US A QUITE PARTICULAR RESPONSIBILITY: TO OFFER OUR CUSTOMERS SOLUTIONS THAT FAVOUR GROWTH, WHILE RESPECTING BOTH PEOPLE AND THE ENVIRONMENT.

ii SOURCE OF SOLUTIONS

Page 22: Degremont Annual Report 2010

This document is printed on FSC paper made from sustainably

managed forests and controlled sources.

Page 23: Degremont Annual Report 2010

Rapport d’activité 2010 - Direction de la Communication Degrémont - Conception et réalisation : Plan Créatif & CoCrédits photos : Degrémont, Getty Images, SUEZ ENVIRONNEMENT / Abacapress / Christophe Guibbaud, Martha Rodriguez

Annual Report 2010 - Degrémont Communications Department - Design and Production: Plan Créatif & CoPhoto credits: Degrémont, Getty Images, SUEZ ENVIRONNEMENT / Abacapress / Christophe Guibbaud, Cyrille Dupont

Page 24: Degremont Annual Report 2010

www.degremont.com

Page 25: Degremont Annual Report 2010

2010OUR COMMITMENTS OUR ACHIEVEMENTS

Page 26: Degremont Annual Report 2010

A SOURCEOF LIFE

COMMITTED TOGETHER

TO WATER,

Page 27: Degremont Annual Report 2010

02 LOOKING BACK WITH PRIDE, FORWARD WITH OPTIMISM

INTERVIEW WITH JACQUES BLEIN Chief Operating Officer of Degrémont

04 HIGHLIGHTS OF THE YEAR 2010

08 PROGRESSING TOGETHER

INTERVIEW WITH FRÉDÉRIC CLAUXDirector of Degrémont’s Build, Operate, Transfer activities

12 MULTIPLE SOLUTIONS

INTERVIEW WITH HENRI BRONNERVice President of the Urban Community of Strasbourg, Mayor of Vendenheim (France)

16 MISSIONS ACCOMPLISHED

INTERVIEW WITH TAQSEM A. KHANChief Executive Officer, Dhaka Water Supply & Sewerage Authority (Bangladesh)

20 SUPPLYING WATER AND MORE

INTERVIEW WITH YUE BAOChief Executive Officer of the Suzhou Industrial Park Water JV (China)

26 CONTINUOUS IMPROVEMENT

INTERVIEW WITH CLÉMENT DE VILLEPINDirector of Human Resources, Degrémont Group

32 KEY FIGURES

SOURCE OF COMMITMENT

SOURCE OF FUTURE PROGRESS

SOURCE OF PROGRESS

Page 28: Degremont Annual Report 2010

SOURCE OF PROGRESS

Page 29: Degremont Annual Report 2010

ii SOURCE OF PROGRESS

JACQUES BLEIN CHIEF OPERATING OFFICER

OF DEGRÉMONT

How do you explain this strong performance, in such a difficult business environment?J. B. I put it down to the professio- nalism of our staff, the strength of our business model, our innovation policy while continuing to improve existing products, and our determination to always be as competitive as possible. We contin-ue to stand alongside our clients in those regions most affected by the recession, such as Europe and the United States. In Spain, for example, we will be installing a Thermylis™ sludge incineration furnace in Bilbao, while in France, the Strasbourg Urban Community has awarded us a joint contract with Lyonnaise des Eaux to operate its sewage plant for a period of eight years.

You said last year that you would be looking to develop newsolutions to support your customers. Can you give any examples of this?J. B. We have continued our invest-ments in research, a policy which has resulted in our introducing five techno- logical firsts this year. Our strategy for keeping pace with and pioneering ad-vances in water treatment includes de-vising our own technology solutions, developing partnerships and participat-ing in research programmes. We have added new fields of expertise, entered into cost and risk-sharing agreements, and cut the amount of time it takes to

Following its strong showing in previous years, does thecompany’s performance during 2010 confirm Degrémont as agrowing force?JACQUES BLEIN Yes, I believe so. The number and scope of contracts awarded to Degrémont during 2010 serve as proof of the strong demand that exists for a portfolio of products and services such as ours, delivered by a highly commit-ted workforce. The fact that many of our existing clients have extended their contracts with Degrémont is also a source of great pride for us. During the year, we won a number of major con-tracts in fast-growing regions. Hong Kong, for example, where were appointed to build and operate the Pillar Point sewage treatment plant, in addition to Korea and China, where we will be supplying ozo-nation, drying and incineration facilities. In Brazil, Petrobras awarded us a new contract for the treatment of industrial wastewater, while in India, we brought the wastewater and sludge treatment plant at Wazirabad into service.

design and deliver new products and services to our customers.We have entered into a number of im-portant partnerships: with Bluewater Bio, for example, in the United States, for the biological treatment of effluents, General Electric in ultrafiltration membranes, and Rictor, for flotation. Or to cite another ex-ample, our alliance contract with SouthAustralia Water for the operation of its plants and networks in Adelaide. Key to the award of this contract was our alli-ance with Transfield Services, which will be contributing its expertise in infastruc-ture maintenance, coupled with its strong local presence.

How do you see the challenges to come, and what is yourstrategy for dealing with them?J. B. Beyond continuing to provide them with our technical expertise, our responsibility is to support our customersin addressing the major changes tak-ing place in their own environment. The challenges may be financial, for example when it comes to funding infrastructure developments; economic, in dealing with rising energy costs; regulatory, as stan-dards evolve; or technological, in terms of controlling new processes. We are also committed to continuing to support lo-cal authorities and industrial customers in meeting their objectives in terms of protecting water resources, preservingbiodiversity and combatting climate change.

LOOKING BACK WITH PRIDE, FORWARD WITH OPTIMISM

2/3

Page 30: Degremont Annual Report 2010

HIGHLIGHTS OF THE YEAR 2010

USA / PASADENA Inauguration of Water & Power

Technologies’ mobile deionisation processing facility.

CAPACITY: 2,736 cu. m. per day

/ MILL CREEK

Design and construction of 3 fl uid bed incinerators.

UNIT CAPACITY: 100 tonnes of dried sludge per day

MEXICO / ITAPALAPA

Inauguration of the Itapalapa drinking water treatment plantto alleviate the shortage of drinking water.

CAPACITY: 8,640 cu. m. per day

MALTA

Start-up of the wastewater treatment facility.

CAPACITY: 500,000 PE 80% of the island group’s wastewater

will be treated in this plant

HUNGARY / CSEPEL Delivery of the sewage plant.

Start of a four-year operating contract under ISO 9001 and ISO 14001 certifi cations.

CAPACITY: 1,600,000 PE

FRANCE / ACHÈRES

SIAAP commissioned Degrémont to design and build the new pre-treatment facility for the Seine Aval sewage plant, Achères.

TARGET: to raise maximum capacity from 45 cu. m. per second to 70 cu. m. per second

/ STRASBOURG Degrémont Services and Lyonnaise

des Eaux win the 8-year contract to operate the sewage plant via a dedicated company, Valhorin.

CAPACITY: 1,000,000 PE

/ COUDEKERQUE Inauguration of the Dunkerque

Urban Community sewage plant.

CAPACITY: 100,000 PE

/ DIGNE-LES-BAINS

Inauguration of France’s fi rst HEQ (High Environmental Quality) wastewater treatment unit.

CAPACITY: 35,000 PE

/ BORDEAUX Construction starts on the

Louis Fargue sewage plant. Thislow-environmental footprint plant is designed to minimise energy consumption while producing a combination of renewableenergy and high-quality sludge for agricultural use. Two Innodry 2E® lines will treat 120 tonnes of sludge per day.

ii SOURCE OF PROGRESS

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SELECTED CONTRACTS, INAUGURATIONS AND OTHER EVENTS FROM 2010.FOR FURTHER INFORMATION OF THIS TYPE, PLEASE VISIT OUR WESBITE: www.degremont.com

SPAIN / BILBAO Design and construction of a

fl uid bed incinerator.

CAPACITY: 58 tonnes of dried sludge per day

RUSSIA / ROSTOV-ON-THE-DON

Design and construction of a fl uid bed incinerator.

CAPACITY: 84 tonnes of dried sludge per day

MAURITANIA / NOUAKCHOTT

Inauguration of the country’s fi rst drinking water production plant.

CAPACITY: 170,000 cu. m. per day

EGYPT/ GABAL EL ASFAR

2nd extension to the operating contract for the Gabal El Asfarwastewater treatment plant, Cairo.

CONTRACT TERM: 3 years CAPACITY: 650,000 cu. m. per day

QATAR / BARWA CITY Construction of a wastewater

re-use plant, Barwa City.

CAPACITY: 60,000 PE

CHINA / HONG KONG

Degrémont and a consortium of partners win the fi rst DBO contract from the city of Hong Kong for the refurbishment, extension and operation of the Pillar Point wastewater re-use plant.

CAPACITY: 550,000 cu. m. per day

/ TIANJIN BINHAI

Installation of two INNODRY 2E® lines, which will treat 200 tonnes of wet sludge discharged by the 4 sewage plants in the new economic zone of Tianjin Binhai.

OPERATIONAL START-UP: mid-2012

/ SHENZEN Design and construction of a

fl uid bed incinerator.

CAPACITY: 80 tonnes of dried sludge per day

GWI AWARDS 2010

DEGRÉMONT WINS ALL PRIZES IN THE DESALINATION SEGMENT

DEGRÉMONTDESALINATION COMPANY OF THE YEAR

MELBOURNE VICTORIA DESALINATION PLANT,DESALINATION CONTRACT OF THE YEAR

BARCELONADESALINATION PLANT OF THE YEAR

ii SOURCE OF PROGRESS

Page 32: Degremont Annual Report 2010

KOREA / SEOUL

Ozonia installs four ozone generators at the Am-sa plant, Seoul’s biggest drinking water production facility.

TOTAL CAPACITY: 100 kg per hour

BANGLADESH / SAIDABAD

Degrémont signs a DBO contract to extend the largest drinking water treatment plant in Dhaka.

CAPACITY: doubled to 450,000 cu. m. per day

INDIA / WAZIRABAD

Inauguration of the wastewater recycling plant, which will feed 50,000 additional cubic metres per day into Delhi’s drinking water distribution system, supplying 500,000 people.

AUSTRALIA / MELBOURNE

Start of the pre-commissioning stages for the seawater desalination plant (30-year BOT contract won in 2009 under a public/private partnership for the fi nancing, construction and operation of the plant).

CAPACITY: 450,000 cu. m. per day

Close to 3,200 people are working on the site

MONGOLIA / ERDENET

Extension to the wastewater treatment plant to cater for rapidgrowth among the region’s population.

CAPACITY: 24,000 cu. m. per day

BRAZIL Degrémont and Ondeo IS are

awarded a contract to design andbuild a plant to treat industrial wastewater and rainwater from the RNest refi nery operated by Petrobras, one of the world’s largest oil companies.

CHILE Delivery of the molybdenum

treatment plant molybdenum is a chemical element used in alloys and present in graphite and lead built for Codelco, the world’s leading copper producer.

CAPACITY: 216,000 cu. m. per day

… HIGHLIGHTS OF THE YEAR 2010

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DEGRÉMONT IN EUROPE

France, Degrémont’s traditional homeland, is where, in addition to designing, building and operating plants of all sizes, the company continues to focus its research and innovation activities. Degrémont also has a strong presence in Italy, where it boasts close to 600 facilities. It is also active in Eurasia. Wherever it operates, Degrémont meets specifi c needs associated with individual economic and geographical environments.

DEGRÉMONT IN ASIA, OCEANIA AND THE MIDDLE EAST

Over the course of the past 60 years, Degrémont has built water production and treatment plants for some of the biggest cities in India, China and Australia. In the Middle East, Degrémont maintains a particularly strong presence in the desalination and re-use markets.

DEGRÉMONT IN NORTH AMERICA

With a strong presence in North America, Degrémont Technologies and its three brands Infi lco, Ozonia and Anderson-WPT are active in all aspects of water management. Teams of experts design and build turnkey solutions for industrial users and local authorities.

DEGRÉMONT IN SOUTH AMERICA

On the South American continent, Degrémont undertakes primarily “design-build-operate” type contracts. In Mapocho in Chile, Panama and Berazategui in Argentina, the company builds municipal wastewater treatment facilities. In Brazil and Uruguay, it has built major facilities for the industrial sector.

DEGRÉMONT IN AFRICA

For close to 60 years now, Degrémont has been present on the African continent with a design and build portfolio of more than 500 drinking water and sewage plants. These effi cient, economical facilities are designed to take into account local climatic conditions.

ii SOURCE OF PROGRESS

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SOURCE OF COMMITMENT

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ii SOURCE OF COMMITMENT

What types of partnership do you develop?

FRÉDÉRIC CLAUX At Degrémont, partnership is both a fundamental and

horizontally-integrated process, because it stands at the heart of all our business

lines. In terms of construction, we naturally enter into industrial partnerships

with the big civil engineering firms. On the BOT side, we call on coinvestors or

financial partners, such as pension funds, who share our approach to investment.

We also form technological partnerships with selected suppliers. Our ability to

give them feedback on the innovative technologies they supply us with enables

us to go beyond the traditional customer-supplier relationship. Finally, we also

form partnerships with some of our customers, in particular through research

programmes, as well as in the domain of social and environmental responsibility.

What are the advantages for your customers?

F. C. Bringing partners on board enables us to broaden our range of skills and

increase our competitiveness. By complementing and building on each others’

skills and expertise, we are able to develop products and services that meet the

specific needs of our customers. We also look to form partnerships with local

companies and institutions, with a view to aligning our solutions as closely as

possible with their realities.

What are the keys to a successful partnership?

F. C. I believe that the success of a partnership depends on three key factors:

setting shared goals, smooth communication to maintain mutual understanding,

and finally, clear benefits for both parties.

FRÉDÉRIC CLAUX DIRECTOR OF DEGRÉMONT’S BOT ACTIVITIES

(BUILD, OPERATE, TRANSFER)

PARTNERING, TO BETTER SERVE OUR CUSTOMERS

PROGRESSING TOGETHER

EGYPTGABAL EL ASFAR SEWAGE PLANT

PARTNER: ARAB CONTRACTORS

CAPACITY: 650,000 CU. M. PER DAY

8/9

INTERVIEW: DEGRÉMONT REGULARLY ENTERS INTO PARTNERSHIPS THAT ENABLE IT TO EXPAND ITS RANGE OF PRODUCTS AND SERVICES AND CREATE WIN-WIN RELATIONSHIPS BOTH FOR THE PARTIES INVOLVED AND FOR ITS CUSTOMERS.

SOURCE OF COMMITMENT

Page 36: Degremont Annual Report 2010

CAPACITY

7,650 CU. M. PER DAY

ii SOURCE OF COMMITMENT

PROGRESSING TOGETHER

LAGOINHA, PORTUGAL

A FIRST IN EUROPE!

g High Environmental Quality (HEQ) — An approach that seeks to reduce the environmental impact of a building, from construction through to operation.

The Lagoinha sewage plant in Portugal showcases the best Europe has to offer! Swedish technology combined with French engineering protect the environment of the Setúbal Peninsula.

The Lagoinha sewage plant is an in-ter-municipal facility designed to treat wastewater produced by the 30,600 PE of the eight adjacent villages, at a rate of 7,650 cu. m. per day. A new regulatory context To combat recurrent pollution problems and protect the ecosystems of the Tagus basin, major environmental protection regulations are now in force in the Setúbal region. In particular, its classification as a sensitive area has led to the adoption of new discharge quality standards for sew-

age plants. For this reason, the Lagoinha plant, although it has been in operation for less than five years, has had to adapt its treatment line and implement the ad-ditional technologies needed.

An effective partnershipTo meet the new regulatory requirements and reduce the presence of suspended elements and organic matter, a tertia-ry process needed to be added to the plant’s original setup. Degrémont opted for Compakblue™, a new-generation mi-croscreen for surface filtration. This tech-nology was developed by the Swedish firm Nordic Water, an expert in the field of solid and fluid separation.

l Setùbal Peninsula.

Page 37: Degremont Annual Report 2010

ii SOURCE OF COMMITMENT

SKILLS IN SYNERGY

With the signature of its partnership with Bluewater Bio, Degrémont added to its product portfolio a solution that has proved its effectiveness worldwide in municipal and industrial wastewater treatment plants: Bluewater Bio’s HYBACS (Hybrid Bacillus Activated Sludge) technology. Ideally suited to both refurbishment projects and new facilities, this secondary treatment process is highly effective in the elimination of nitrogen, phosphorus and carbon compounds.

At first sight, the specifications for the new drinking water production plant at Apremont, in France’s Vendée region, might have seemed like trying to square the circle… The brief was to produce drinking water of the highest taste and health quality from very degraded raw water, whilst building a facility that inte-grates fully into a sensitive natural site

and complies with High Environmental Quality (HEQ)g standards. A technologi-cal challenge which Degrémont’s teams have succeeded in meeting through an innovative and highly differentiated so-lution: the AquaDAF™ process.

Numerous constraintsThe dam at Apremont supplies the plant with raw water containing large concen-trations of organic matter, with very high turbidityh peaks. Another factor affect-ing the quality of the raw water is the great seasonal variation in the dissolved oxygen content and algae concentra-tions. Lastly, building a new plant in a popular tourist region called for an ar-chitectural solution in harmony with the environment. The HEQ approach pro-posed by Degrémont allowed these con-straints to be overcome, while at the same time reducing the use of chemi-cal reagents.

A successful partnershipDegrémont opted to install AquaDAF™, a system that combines the functions of coagulation, flocculation and flotation. The fast flotation process developed by the Finnish firm Oy Rictor was upgraded by Degrémont, holder of an exclusive li-cence to use it. Degrémont applied its expertise in the field of sludge floccu-lation by implementing piston-floccula-tion. The resultant improvements make AquaDAF™ the only flotation system that can be used with turbid water. Three times faster and therefore more compact than conventional set-ups, it operates without the use of polymers.

APREMONT, FRANCE

TECHNO-LOGICALRESOURCEUNDER EXCLUSIVELICENCE

h Turbidity — A measurement of the suspended solids that make a liquid cloudy. The opposite is limpidity.

10/11

l Drinking water production plant, Apremont, FRANCE.

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ii SOURCE OF COMMITMENT

FRANCESTRASBOURG URBAN COMMUNITY STRASBOURG – LA WANTZENAU SEWAGE PLANT

8-YEAR OPERATING CONTRACT

CAPACITY: 1,000,000 PE

What are the challenges of running this plant for CUS?

HENRI BRONNER The principal challenge is to guarantee maximum possible

value in the use of public money, i.e. to optimise the management and perfor-

mance of the services by making the most of resources, systems and skills, while

working in complete transparency with the community authority. As regards the

plant itself, Valorhin – the company set up specifically for the purpose – is required

not only to manage and maintain the plant in excellent condition, but also to

upgrade it as required to ensure it reflects the latest sustainability standards.

What are the specific features of the contract?

H. B. The significant investment of €5.5 million will enable us to choose new

technical solutions. In terms of safety, for example, the work being done to opti-

mise the ventilation system, eliminate hydrogen sulphide and ensure the safety

of the sludge dewatering process will significantly improve working conditions

for the plant’s staff and enhance process reliability.

What innovative solutions has Degrémont come up with?

H. B. Producing renewable electricity and running a “carbon-neutral” sludge

treatment business unit certainly fall into that category. The use of biogas in the

furnace and connection of the cogeneration system to Strasbourg’s electricity

grid are further measures that will improve energy efficiency. Finding ways to

re-use the by-products, sludge, ash and residues from smoke purification pro-

duced by the incinerator will be another major challenge for Valorhin to tackle.

HENRI BRONNER VICE PRESIDENT OF THE URBAN COMMUNITY OF STRASBOURG, MAYOR OF VENDENHEIM

INNOVATION: GREEN ENERGYFOR THE COMMUNITY

MULTIPLE SOLUTIONS12/13

INTERVIEW: IN JUNE 2010, STRASBOURG URBAN COMMUNITY (CUS) COMMISSIONED LYONNAISE DES EAUX AND DEGRÉMONT SERVICES TO OPERATE THE STRASBOURG – LA WANTZENAU SEWAGE PLANT, THE FIFTH-LARGEST WATER TREATMENT PLANT IN FRANCE.

Page 40: Degremont Annual Report 2010

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MULTIPLE SOLUTIONS

INNOVATIONS: FOLLOW THE GUIDE!A collection of 21 innovative solutions published for the fi rst time in a single document, the Innovations Guide provides a measure of Degrémont’s technological expertise. It has been designed to disseminate information both inside the company, to staff, and outside, to infl uencers, partners and customers. Educational in its approach, it describes specifi c technologies developed by Degrémont to tackle the challenges that arise during water treatment. Fully interactive, it can be consulted online at: www.degremont.com

PERFORM&EAU™Ad-hoc support for plant commissioning. Thanks to the creation of PerForM&Eau, the training resource designed exclusively for operators, Degrémont Services is making 40 years of know-how and expertise in operating sites available to its customers. Exclusive support is provided for facility start-up, in particular by providing “operator manuals” which are specifi c to each site. Theoretical and practical training programmes are tailored to the needs of the operators and technicians in the fi eld.

TOURNUS, FRANCE

RIGHTSIZING THE ENERGY FOOTPRINT

When its former sewage works became obsolete, the town of Tournus awarded Degrémont France Assainissement the contract to build a new plant. Thanks to the innovative solutions incorporated, the new facility reduces aeration energy consumption by some 15%.

Control and performancee Degrémont drew on its expertise in construction and operations to limit the environmental footprint of the future fa-cility. This included opting to employ the Greenbass™ process, a technological innovation that can reduce aeration en-ergy consumption by up to 15%. By regu-lating oxygen requirements in real time, Greenbass™ continually adjusts airflow into the biological treatment process on the basis of nitrate and ammonium con-centration, thus acting on aeration, which alone accounts for 60% of the plant’s en-ergy needs.

Innovative designThis “right consumption” approach is backed up by various additional techni-cal solutions:e Positioning of the storm-water tank in the centre of the biological tank, thus en-hancing water circulation and reducing energy consumption caused by agitation and aeration;e Use of gravity return systems at dif-ferent points in the plant, to reduce the need for pumping and optimise energy consumption;e Installation of a heat pump to heat the operations building with energy produced by the facility itself;e creation of a green roof that helps CO2 absorption and reduces run-off.All these elements, combined with very precise calculations of carbon emissions using the O2C system, developed by Degrémont, significantly reduce the new facility’s environmental impact.

l Future Tournus sewage plant.

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ii SOURCE OF COMMITMENT14/15

; Deionisation — Electrochemical process used to remove impurities from water intended for industrial applications.

PASADENA, USA

ULTRAPURE WATER IN THE MOBILE AGE

Inauguration in Pasadena, Texas, of a water deionisation plant to regenerate resins from mobile units, capable of meeting the needs of industrial customers for ultrapure water to strict deadlines.

From Texas to Florida, the coast of the Gulf of Mexico has a large concentration of industries specialising in petrochemi-cals and energy generation, two indus-trial sectors that require ultrapure water. From its new installation unit, strategi-cally located in Pasadena, Texas, Water & Power Technologies Inc., a Degrémont Technologies brand, can now respond to the deionised water needs of all the in-dustries in the area.

A first in North AmericaA first in the USA, Water & Power Tech-nologies Inc. has introduced the inno-vative concept of deionisation tankers. These novel mobile units are fitted with ion-exchange resin tanks individually set up to produce ultrapure water geared to the specific needs of each customer. With its large treatment capacity, in terms of both speed and volume, the tanker fleetruns 24 hours a day seven days a week. A level of service that is a very significant plus in industrial sectors that need to re-spond to production rises and emergen-cies that can significantly increase their demand for ultrapure water.

l Mobile ultrapure water supply unit.

l Inside view of the mobile unit: ultrapure water tanks.

€13.5 MILLION R&D BUDGET IN 2010

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ii SOURCE OF COMMITMENT

Why is this extension needed?

TAQSEM A. KHAN The main aim in extending Saidabad is to move on from

treating groundwater to treating surface water. As things stand, 87% of the water

we extract comes from groundwater, whereas we use just 13% surface water.

This is a situation that cannot be allowed to continue, the level of the water table

having already been affected. We have therefore reviewed our priorities and

decided that, within the course of the next ten years, 70% of our drinking water

will need to come from surface water. This is essential if we are to preserve

resources. Degrémont has enabled us to adopt a water supply solution that is

both respectful of the environment and that allows us to significantly increase

the amount of water distributed.

In what way did the processes proposed by Degrémont meet

expectations at Dhaka Wasa?

T. A. K. The surface water we receive comes from Shitalakhya river.

Degrémont offers us innovative technological solutions to purify the water. The

use of the Meteor® process for the pre-treatment phase represents a techno-

logy first. We will now be able to effectively treat the unusually high levels of pol-

lution by organic matters and ammonia nitrogen, during the dry winter season.

We have succeeded in reducing water losses from 34% to 29%, while increasing

revenues by 20% in just one year and lowering our operating costs. We are there-

fore extremely well positioned in comparison to similar companies in the region.

Why did you once again choose Degrémont?

T. A. K. We have been working together since 1997. During all this time, and

in particular during the first phase of construction, our relationship has been

more than satisfactory. We have benefited from excellent service, in addition to

particularly efficient processes and technologies. The water supplied is of excel-

lent quality, complying with both the standards in force in Bangladesh and the

WHO criteria.

NEW MARK OF TRUSTIN BANGLADESH

MISSIONS ACCOMPLISHED

BANGLADESHDHAKA EXTENSION TO THE SAIDABAD DRINKING WATER PRODUCTION PLANT

CAPACITY INCREASED TO: 450,000 CU. M. PER DAY

TAQSEM A. KHAN CHIEF EXECUTIVE OFFICER, DHAKA WATER SUPPLY & SEWERAGE AUTHORITY

16/17

INTERVIEW: IN 2010, DEGRÉMONT AND ITS CUSTOMER DHAKA WASA SIGNED A DESIGN-BUILD-OPERATE DOB CONTRACT FOR A NEW PLANT, SAIDABAD II, TO SUPPLY DRINKING WATER TO THE CITY OF DHAKA. THE PLANT WILL CONSTITUTE A SIGNIFICANT EXTENSION OF THE EXISTING FACILITY, ALLOWING FOR TOTAL PRODUCTION OF 450,000 CU. M. PER DAY.

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CAPACITY

11,000 CU. M. PER DAY

ii SOURCE OF COMMITMENT

In China, the building of a 4th wastewater treatment line will allow the technical and environmental performance of the SCIP (Shanghai Chemical Industry Park) sewage plant to be adapted and enhanced.

Signed in 2010, the contract to construct an industrial wastewater treatment line marked a new phase in the commercialrelations formed by SCIP with Degrémont China and Sino French Water.This Design & Build project also marks a further step in the highly fruitful pooling of experience initiated by Degrémont in 2002, with the creation of the first line.

Specific challengesLocated south of Shanghai, close to the mouth of the Yangtze river, SCIP is one

of Asia’s largest petrochemical indus-trial zones.The wastewater it generates contains high concentrations of a range of pollut-ants. These must be treated in order to meet the specific waste discharge regu-lations applicable to the zone. This rapidly growing site also plays host to companiesoperating in the fine chemicals indus-try, which require a range of treatments adapted to their particular needs. New performance levelsWith an average capacity of 11,000 cu. m. per day, this 4th treatment line will enable the plant to meet new discharge quality standards, and re-use part of the treated water to supply the lakes that embellish the park environment.

MISSIONS ACCOMPLISHED

SHANGHAI, CHINA

RELATIONSHIPS BUILT TO LAST

l Shanghai Chemical Industry Park.

Page 45: Degremont Annual Report 2010

81% OF CLIENTS SURVEYED VIEW DEGRÉMONT AS INNOVATIVE

OUAGADOUGOU, BURKINA FASO

RELIABILITY: A SURE THING!A WORLDWIDE EAR An international survey conducted by Degrémont among some 50 clients complemented the listening process introduced in France 5 years earlier. Customers of the Design & Build, Services, Equipment and BOT divisions were asked to complete a common questionnaire on customer satisfaction and needs. The results show that 77% of the customers surveyed see Degrémont as innovative, 81% as committed to sustainable development and 86% as providing good service. The answers will help Degrémont in a number of ways, in particular by providing input for its current efforts to integrate its healthcare, safety and environmental expertise into its service and product portfolio.

ii SOURCE OF COMMITMENT

l Ziga drinking water plant.

18/19

Extending the Ouagadougou drinking water plant will increaseproduction by 50% to meet the needs of 1.48 million people.

In Burkina Faso, the Ziga plant supplies drinking water to Ouagadougou. To meet the growing needs of this fast-develop-ing city, the National Water and Sanita-tion Office (ONEA) decided to increase production capacity on its drinking water plant from 3,000 to 4,500 cu. m. an hour. The international tender was won par Degrémont and Sogea Satom.

Focus on efficiencyWhen the first Ziga plant was built, stu-dies were carried out on various factors such as the quality of the raw water, thetechnical conditions and the financial re-quirements of the project. The decision at the time was to opt for a simple, com-

pact and efficient treatment system that would be economic to run. Six years into operation, the customer is entirely satis-fied with the chosen process, a combina-tion of Pulsator™ and Aquazur™ filters, because of its tremendous reliability.

The best use of resourcesWhen it came to extending the plant, ONEA was keen to keep the same sys-tem, to ensure ease of operation and maintenance across the whole equip-ment chain. While its technical grasp of the remit was an undoubted advantage, Degrémont’s capacity to put together an economically viable proposal played a part in its winning the contract. Lastly, Degrémont was able to offer significant resources for a deal which, although small in size, today serves as a show-case for the company’s know-how in West Africa.

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Page 47: Degremont Annual Report 2010

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SUPPLYING WATER AND MORE

A CONCRETE EXAMPLEOF CIRCULAR ECONOMY

YUE BAO CHIEF EXECUTIVE OFFICER

OF THE SUZHOU INDUSTRIAL PARK WATER JOINT VENTURE – SINO FRENCH

In terms of sustainable development, what has been achieved atthe Suzhou Industrial Park?

YUE BAO Firstly, the configuration of the park sets an example for others,

worldwide. Over a surface area of 300 square kilometers it encompasses indus-

trial development, staff accommodation, the provision of water and energy, and

the integration of sewage and sludge treatment systems! Innovative ideas and

support from the governments of China and Singapore have contributed greatly

to this success.

In what ways is this project exemplary?

Y. B. On the site, we use Degrémont’s Innodry 2E® technology. My colleagues

tell me that the equipment is technically simple to operate and that the quan-

tity of the sludge treated has increased. This means that the technology is able

to deal with the local sludge, which contains high levels of organic matter and

little sand.

In addition, the synergies created between the technology park’s wastewater

treatment plant, the sludge treatment plant and the power station allow for

the best possible use of resources. Our energy source is steam, and we use dry

sludge as a coal substitute. We also re-use the recovered water as a coolant to

preserve water resources.

The project proves that it is possible to convert waste into energy resources,

and to establish a circular economy. All these benefits sit perfectly within an

approach which favours sustainable development.

20/21

INTERVIEW: WITH THE SUZHOU INDUSTRIAL PARK SLUDGE TREATMENT PLANT, A JOINT PROJECT COMMISSIONED BY CHINA AND SINGAPORE, DEGRÉMONT – VIA SINO FRENCH WATER – IS BUILDING AN ULTRA-EFFICIENT FACILITY CAPABLE OF CONVERTING SEWAGE SLUDGE INTO RAW MATERIALS. AN EXAMPLE OF THE CONCEPT OF CIRCULAR ECONOMY, MAKING THIS PROJECT A MODEL OF ITS KIND.

CHINAJIANGSU PROVINCE SUZHOU INDUSTRIAL PARK SLUDGE TREATMENT PLANT

3 INNOPLANA INNODRY 2E® DRYING LINES

TOTAL CAPACITY: 900 TONNES OF DRIED SLUDGE PER DAY

Page 48: Degremont Annual Report 2010

ii SOURCE OF COMMITMENT

ENVIRONMENTAL PERFORMANCE IN BARCELONAWith a production capacity of 200,000 cu. m. per day, El Prat de Llobregat is Europe’s biggest seawater desalination plant currently in operation. Capable of converting seawater into drinking water and feeding it into the distribution system in less than six hours, it supplies 1.3 million people in the Barcelona region.The pressure exchangers re-usethe energy produced by the desalination process, reducing energy consumption to less than 2.6 kWh per cubic metre in the reverse osmosis line and total consumption to less than 3.6 kWh per cubic metre.The catchment zone has been chosen to protect marine wildlife from the risk of being sucked in. Salt concentration in the discharges is maintained at the same level as seawater by mixing brine with water treated at the neighbouring sewage plant.

A smart strategy that gives the lie to much received wisdom onthe environmental impact of desalination!

In the US, the Proctor’s Creek sewage plant is optimising its environmental performance and safeguarding the natural environment.

Chesapeake Bay is the US’s largest estu-ary, home to a very rich marine ecosys-tem and playing a vital role in the tourist and fishing industries.

An alarming situationThe deterioration in the quality of water in the Bay due to discharge from local sewage treatment plants had encour-aged the proliferation of algae, with high levels of phosphorus and nitrogen caus-ing the death by asphyxiation of living or-ganisms. To eradicate these phenomena, the Environmental Protection Agency ad-opted a plan designed to reduce by 25% the quantity of molecules of food origin discharged into the bay.

An effective technologyThe Proctor’s Creek sewage plant is now subject to stringent quality stan-dards, in particular a requirement to re-strict nitrogen discharge levels to 5 mg per litre. Infilco Degremont Inc. came up with a solution that can meet the strict-est discharge standards. The plant is

CHESTERFIELD, USA

RESCUING THE WATERS OF CHESAPEAKE BAY

l Future IFAS Meteor® tank.

SUPPLYING WATER AND MORE

Page 49: Degremont Annual Report 2010

ii SOURCE OF COMMITMENT

SPORTS SPONSORSHIP KICKS IN!Thanks to the efforts of Degrémont and Champigny Football Club, 108 youngsters from disadvantaged suburbs were able to take part in the Champigny-sur-Marne inter-district tournament. For various reasons (cost, transport…), they had previously been unable to join traditional sports clubs. Valuable experience of measuring themselves against others. Victory!

; Mixed cultures — Technology in which fi xed and suspended culture processes are combined to optimise performance.

now equipped with IFAS Meteor® tech-nology, a biological sewage treatment process based on mixed cultures . A year-long pilot study conducted on the site for a one-year period served to validate the performance of the select-ed system, placing the Proctor’s Creek plant at the forefront of environmental performance… to the great delight of the flora and fauna of Chesapeake Bay.

SCHOOLKIDS SH20W THE WAY!By contributing to a joint project, 80 schoolchildren from Drader in Algeria illustrated Degrémont’s brand promise: “Committed together to water, a source of life.”Located close to the Athmania River drinking water plant, the village of Drader and the school are now connected to the water distribution system. The project was conducted by local Degrémont employees, who had already provided school supplies.

CHESTERFIELD, USA

RESCUING THE WATERS OF CHESAPEAKE BAYPROTECTING BIODIVERSITY

Five years after the commissioning of the San Luis Potosi sewage plant in Mexico, the artifi cial lagoon of Tenorio has become a nesting place for several species of migratory birds and a destination for ornithologists! The untreated water discharged into the lagoon had previously decimated the wildlife.

25% REDUCTION IN POLLUTIONDISCHARGED INTO THE BAY

l Chesapeake Bay.

22/23

Page 50: Degremont Annual Report 2010

ii SOURCE OF COMMITMENT

ARCA DE NOÉ: WOMEN AND CHILDREN FIRST!In the favela Vila Prudente in São Paulo, 115 children can fi nally be sure of full bellies every day. An unheard-of luxury in Brazil, where child malnutrition is still common. In 2010, the NGO Arca de Noé received fi nancial support from Degrémont, a commitment mirrored by the community spirit of company staff, some of whom are sponsoring children in the favela.After having opened a school enabling children to attend full time, the association created a dozen jobs for the women of the favela. Objects made in a craft workshop are sold to partner companies, thus enabling the workshop to generate profi ts that help to balance the school’s budget.

SUPPLYING WATER AND MORE

Thanks to Degrémont’s re-use; programme, the future Mediounasewage plant will produce 3,800 cu. m. of water each day to irrigate the surrounding farmland.

Water being a precious resource in Mediouna, the local authorities began building a new sewage plant to treat wastewater from this town of 40,000 people and from the neighbouring douars – a real advance in environmental protec-tion, in a region where 2,800 cu. m. of in-dustrial and household wastewater were previously discharged into Oued Hassar without first having been treated.

Non-conventional water resourcesTo further protect local water resource, the plant will be equipped with a mem-brane filtration system. This innovative process, already tested in Europe, is to be implemented in Africa for the first time (apart from in South Africa). It will produce

treated urban water of impeccable qual-ity to restore the water table and irrigate cereal crop fields near to the plant.

Environmental performanceIn helping to reduce extraction from the natural environment and replenish the water table through re-use, Degrémont has created a project fully in line with the National Environment and Sustain-able Development Charter initiated by His Majesty King Mohamed VI in July 2009. The Mediouna plant is also in harmony with the antipollution master plan for the wilaya of Greater Casablanca.

MEDIOUNA, MOROCCO

THE SECOND LIFEOF SEWAGE

; Re-use — Re-use of treated sewage.

l Site of the future Médounia sewage plant.

Page 51: Degremont Annual Report 2010

ii SOURCE OF COMMITMENT

EDELWAY, A COMMITMENT TO ENVIRONMENTAL PERFORMANCEEdelway is a joint label applied to all SUEZ ENVIRONNEMENT initiatives designed to help reduce greenhouse gases, preserve natural resources and protect biodiversity.Degrémont is fully committed to Edelway’s global and cross- disciplinary approach, which notably includes an assessment of environmental footprints, and diagnostic tools and solutions to improve economic and environmental performance.

24/25

Degrémont identifies and listens to its stakeholders, to ensure its projects are in harmony with the environments in which they are installed.

In Jordan, Degrémont has been ope-rating the As Samra sewage treatment plant since 2008. Located in a highly populated industrial zone, the plant ex-perienced certain difficulties in its early stages, resulting in environmental prob-lems for people living nearby. In paral-lel with the implementation of technical solutions, the company quickly entered into a process of dialogue with local stakeholders.

The virtues of dialogueAn Environmental Committee, made up of representatives of the local community and public authorities, was set up to take on board the interests and concerns of stakeholders. Meetings have since been held every month with residents, crafts-men and farmers, to work together on collective issues. An approach based on cooperation that has allowed for the building of relationships of trust.

A structured approachDegrémont used a module in As Samra that allowed for the identification and ‘mapping’ of stakeholders. Now deployed all over the world, it also enables users to record and confirm the commitments made by Degrémont to the communi-ties around it.

AS SAMRA, JORDAN

STAKEHOLDERCONSULTATION

l As Samra sewage plant.

O2C™, THE EXPERT SUPPORT SYSTEM FOR ENVIRONMENTAL TECHNOLOGY DECISION-MAKING“Which technology?” is one of the main questions our customers ask. UV treatment? Ozonation? A physico-chemical or other state-of-the-art solution? The choice is complex. To help them decide, Degrémont has developed the O2C™ calculation system, which measures carbon dioxide, methane and nitrous oxide emissions based on the emission factors of substances entering/leaving a plant. Including a lifecycle-type analysis, O2C™ determines the carbon footprint of the site in question.

Page 52: Degremont Annual Report 2010

SOURCE OF FUTURE PROGRESS

Page 53: Degremont Annual Report 2010

How is the pursuit of excellence reflected in HR management?

CLÉMENT DE VILLEPIN Operational excellence is both something our cus-

tomers demand and a driver of progress. It is developed day by day through the

rigorous implementation of our employee support policies, and also our continu-

ous improvement methodologies.

What role does recruitment play in the success of a company?

C. D. V. The quality of its people and teams is clearly a key factor in driving

company performance. Anticipating needs, recruitment, developing skills and

motivating teams are all processes on which we work together closely with

our managers. It’s important that a human resources manager should know the

employees from their unit, but also what they do, who their customers are and

what the local context is. This kind of knowledge is essential if the company is to

attract and retain the best staff.

What are the challenges for HR in the coming years?

C. D. V. HR management works closely with the company to strengthen

synergies within the Group and benefit from the diversity of our staff. Such an

approach is key to ensuring that we possess the skills we need to provide solu-

tions that are geared to the needs of our customers, wherever they are in the

world.

CLÉMENT DE VILLEPIN DIRECTOR OF HUMAN RESOURCES,

DEGRÉMONT GROUP

DRIVEN BY CUSTOMER SATISFACTION

CONTINUOUS IMPROVEMENT26/27

INTERVIEW THE CHALLENGE: TO GUARANTEE OUR CUSTOMERS A CONSISTENT LEVEL OF EXCELLENCE, WHEREVER THEY ARE IN THE WORLD. THE METHOD: OFFERING TRAINING ADAPTED TO THE NEEDS OFOUR EMPLOYEES, DEVELOPING EFFECTIVE PROCESSES AND TOOLS TO SUPPORT THEIR PERFORMANCE.THE RESULT: HR STAFF WHO ACT AS PARTNERS TO THE OPERATIONAL TEAMS.

440 EXTERNALRECRUITS

46 % OF EMPLOYEES OVER THE AGE OF 50 RECEIVED TRAINING IN 2010

ii SOURCE OF FUTURE PROGRESS

Page 54: Degremont Annual Report 2010

Anticipation, protection, but also training, communication and above all responsibility. The drawing up of Degrémont’s “10 Golden Rules of Safety” and their circulation to employees mark a new milestone in the prevention of risks at work.

When it comes to safety, the company’s role is first and foremost to comply with regulations and establish procedures, techniques and instruments, as required.All of them crucial measures that serve to reduce the number of accidents, but by

themselves not enough. Degrémont has decided to go further, therefore, by imple-menting an ambitious policy designed to anticipate risk and dangerous practices.

SAFETY: EVERYBODY’S BUSINESS!

CONTINUOUS IMPROVEMENT

LOST-TIME ACCIDENTS

FREQUENCY RATE ACCIDENTS 2010 TARGET: 4.0 - ACHIEVED: 2.7

SEVERITY RATE ACCIDENTS 2010 TARGET: 0.10 - ACHIEVED: 0.08

DEGRÉMONT’S VISIONThe vision adopted by Degrémont in 2009 was one dictated by the new economic circumstances. New customer demands: tighter deadlines, more complex projects. New regulations, more competitive bids. New challenges: the integration of plants into their environment, carbon footprints, ergonomics…Designed to serve as a roadmap, the vision is constructed around the ambition to remain “Committed together to water, a source of life”. It is underpinned by the Degrémont Way, which lays down the behaviours and procedures to be followed by all of the company’s employees.

ii SOURCE OF FUTURE PROGRESS

FOSTERING SOCIAL DIALOGUE A long-standing component of the company’s corporate culture, the purpose of social dialogue is to maintain a balance between the development of the company and that of its staff. Built around regular and open meetings with staff representatives, social dialogue is a two-way source of communication that serves to orient employees as they developwithin the company.It is also a way to shape the company’s social policiesthrough negotiation and the implementation of company-wide agreements.

OUR VALUESBEING AMBITIOUS FOR DEGRÉMONT,COMMITTING WITH COURAGE,CREATING TRUST THROUGH RESPECT AND INTEGRITY,PROGRESSING AND HELPING OTHERS TO PROGRESS.

Page 55: Degremont Annual Report 2010

Continuing the listening process initiated in 2007 with the 1st edition of the Degrémont Social Observatory, a new internal survey was conducted in 2010.

Such surveys are an important tool in our pursuit of continuous improvement, enabling us to listen to our employees worldwide and track trends in their ex-pectations and satisfaction.

4,379 Group employees were invited to take part in this latest survey, with some interesting initial findings. The high level of participation (63%) demonstrates the commitment of the workforce. Of those who took part, 93% said they were proud to work for Degrémont.

The results reveal: the company’s good internal image

(91%), a strong commitment to the Degrémont

Way (74%), the good working conditions (84%), the quality of integration (88%), strong confidence in the company’s

strategy (75%) and its future (84%).

The survey also identified areas for im-provement, which will serve as the basis for action plans developed to increase individual satisfaction, motivation and confidence. A further survey is planned for 2012.

LISTENINGTO OUR EMPLOYEES

28/29

DIVERSITY, A SOURCE OF PERFORMANCE AND INNOVATIONOur commitment to diversity was reinforced during 2010, underpinned by the Degrémont Way and the programme implemented by SUEZ ENVIRONNEMENT.

The variety of profi les in the make-up of its teams – be it in terms of nationality, language and qualifi cations, age, gender or disability – serves as both a major challenge and to enrich daily life within the company. This realisation led to the development of Dimension S, a programme designed to favour diversity within Degrémont, structured around fi ve key areas: promoting access to work and integration through apprenticeship, supporting women in their career, employingmore people with disabilities, promoting the employment ofolder people, and improving quality of life in the workplace.This global approach resulted in the signing, in France, of anagreement with AGEFIPH (Fund for the Professional Integrationof People with Disabilities).

4 AREAS OF ACTIVITY 5 AREAS OF EXPERTISE 60 NATIONALITIES70 COUNTRIES

ii SOURCE OF FUTURE PROGRESS

Page 56: Degremont Annual Report 2010

8.3 YEARS OF SERVICE ON AVERAGE

146 TRAINEES63 INTERNS(PROFESSIONAL AND APPRENTICESHIP CONTRACTS) RECRUITED IN 2010

Introduced at the beginning of 2010, the Project Management training scheme enhances the skill levels of staff responsible for plant design and construction activities.

In a highly competitive economic envi-ronment, in which complex projects in-volve ever greater numbers of individuals, project-based work is a key factor in con-tributing to business success.

A strategic training programmeWith the Project Management training programme, Degrémont has created a tool that serves two major priorities: to develop internal business manage-ment skills by adapting them to chang-ing market demands, and to strengthen synergies between the difference busi-ness lines. 500 employees around the world have already benefited from train-ing for those involved in the various project stages: bid, design, execution,

PROJECT MANAGEMENT: A CRUCIAL SKILL

CONTINUOUS IMPROVEMENT

A RESPONSIBLE AND ETHICAL APPROACHDegrémont was the fi rst company in the sector to obtain GoodCorporation certifi cation, in 2009. This responsible business practice assessment system looks at the way an organisation is managed in terms of its relation to employees, customers, suppliers and shareholders, as well as in terms of environmental protection and contribution to the community.

ii SOURCE OF FUTURE PROGRESS

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30/31

procurement, engineering, planning, contract management and financial management. The initiative is backed by the Project Management Institute (PMI®), an internationally recognised methodo-logy that incorporates best practice in project management.

OMEGA: THE RANGE OF POSSIBILITIES IS GETTING WIDER! Omega Processus, Degrémont’s management system, gives every employee around the world access to the company’s processes, procedures, documents and methods. An approach designed to lead to ISO 9001: 2008 certifi cation was initiated in 2010, with a view to obtaining a single certifi cate covering all Degrémont divisions. This certifi cation will serve as a powerful symbol of a shared process-based management system.

CERTIFYING THE PERFORMANCE OF DEGREMONT LIMITEDIn India, Degrémont Limited has obtained ISO 14001 and OHSAS-18001 certifi cation for all its plants, endorsing the company’s systematic approach to the issues of health and the environment. Based on international criteria, these certifi cations give Degrémont a competitive advantage on the local market and increase customer confi dence.

ii SOURCE OF FUTURE PROGRESS

Page 58: Degremont Annual Report 2010

KEY FIGURES

REVENUESBY ACTIVITY SECTOR 2010 (in € million)

BREAKDOWNOF REVENUES

International

France

BREAKDOWNOF WORKFORCE BY ACTIVITY

12 % 19 %SupportEquipments

32 %Construction

37 %Services

20 %

80 %

45 BOT

188Equipment

191Services

1,096Construction Total

1,520

Page 59: Degremont Annual Report 2010

AFRICA

SOUTH AMERICA

NORTH AMERICA

ASIA, OCEANIA & MIDDLE EAST

13.5 %

9 %

5.5 %

30 %

42 %

EUROPE

32/33

THROUGHOUT ITS HISTORY, DEGRÉMONT HAS MADE KEY CONTRIBUTIONS TO THE WATER TREATMENT INDUSTRY, THANKS IN PARTICULAR TO ITS INVESTMENT IN RESEARCH AND INNOVATION.

BREAKDOWN BY GEOGRAPHICAL ZONE

ii SOURCE OF FUTURE PROGRESS

Page 60: Degremont Annual Report 2010

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