How To Help People Get Around The World
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1 2011 MOBILITY INSPIRED BY YOU. Passion Performance Partnership Commitment
2 Strong values that guide us, that characterize our culture and that help defi ne our identity. VEOLIA TRANSDEV VALUES Passion Throughout the world, it is passion that fuels the daily commitment of our teams. Supported by a company that promotes cultural awareness, diversity and dialogue, each employee performs his professional responsibilities with the same entrepreneurial spirit and the same drive to be a trusted partner. Performance In committing ourselves individually and collectively, our focus is on performance. Constant quality improvement, risk management, particularly related to safety and high results-based standards at all levels: these are the strengths that enable us to create value and offer solutions with real and enduring benefi ts. Partnership Partnership with each client means remaining close at hand, understanding their culture and listening and exchanging. This proximity allows us to progress, relying on our diverse, collective strength, through dialogue with local public authorities and passengers, to ensure service that anticipates every need. Commitment Faced with the challenges of mobility, we are committed to ongoing innovation, even as we deliver on our daily mission. Inventiveness, creativity, applying modern techniques and sharing best practices this is our commitment. All carried out with a customer centric focus, a sense of social responsibility and economic effi ciency.
3 annual report veolia transdev Vision The global benchmark in sustainable mobility. Veolia Transdev s 102,000 employees around the world are focused on serving communities and passengers, going beyond simply moving from one place to another, ensuring simpler, easier and seamless mobility: mobility that is reliable and innovative, combining quality of service, economic performance and dedication to the public interest; mobility that unlocks the economic potential of cities and regions while ensuring the preservation of our planet; mobility solutions for the benefit of all, today and tomorrow. thus, our brand promise: mobility inspired by you.
4 2 Message from the Chief Executive Officer
5 annual report veolia transdev The 2011 merger of Veolia Transport and Transdev created the global benchmark in sustainable mobility. Its international breadth, multi-local roots and multi-modal offer make Veolia Transdev the industry s most comprehensive and diverse company. Veolia Transdev is helping to reinvent the entire public transportation value chain through its capacity for innovation, from the modes of travel services offered to passengers to its relationships with local transit authorities. But above all, Veolia Transdev is a community of women and men who, through their skills, commitment and combined cultural diversity, offer their fellow citizens the very best in mobility. Veolia Transdev is the embodiment of a business vision whose basis is reconfirmed by the unceasing movement of people in their daily lives. Population growth, newly emerging countries and rapid urbanization are creating an intensifying demand for transportation that will become even more pronounced by mid-century. At the same time, the imperatives of sustainable development are altering travel patterns that can no longer be sustained by our planet and its growing cities. New mobility ecosystems are needed to balance socio-economic development of regions with respect for the environment and better quality of life. Improved safety for travelers, accessibility, inter-modality, operational efficiency and personalized services also must be a part of new mobility solutions. Local authorities are looking for trusted partners who can work with them closely and that possess the strength, skills, resources, innovation and investment required to improve quality, with out increasing the strain on public above all, Veolia Transdev is a community of women and men who, through their skills, commitment and combined cultural diversity, offer their fellow citizens the very best in mobility. Jérôme Gallot Chief Executive Officer of Veolia Transdev finances. Veolia Transdev teams are responding to these challenges and, in doing so, redefining what is meant by sustainable mobility. I had the honor of becoming the leader of this new entity in 2011, in an environment fraught with challenge, but also rich in opportunity. Much has been accomplished during an intense year. A new governance structure was established following the official March 3 date of Veolia Transdev s birth. Together with the members of the Executive Committee, we have accelerated the merging of the two companies. The March 1 agreement signed with employee representatives enabled the redesign of the entire organization, which was completed in close consultation with employee representatives. Management reporting lines were optimized and medium term action plans were launched throughout the company to maximize our competitiveness. Meanwhile, our teams have been working actively to respond to customer expectations, efforts that paid off with new contract wins in Europe, North and South America and Asia-Pacific. As of December 31, Veolia Transdev is a unified, forward-looking company, with a new legal structure. The decision by Veolia Environnement to withdraw from its transportation activities, announced December 6, has not slowed our momentum. Reinforced by the reaffirmed support by Caisse des Dépôts, Veolia Transdev s business model aims squarely at current and future challenges, with an ambitious strategy built around three priorities: focus our development on selected countries and growth markets; improve performance in our traditional markets and businesses; expand our portfolio in key areas for the future particularly, transport on demand, digital services and rail. We are in the process of defining a new brand for our company that reflects our identity and culture, our customer centric approach and our commitment to social responsibility and economic efficiency. I am fully confident in Veolia Transdev s prospects for success and share the determination of the entire team to contribute to the development and growth of sustainable mobility throughout the world.
6 4 Governance In place since March 2011, Veolia Transdev s Executive Committee oversees and executes implementation of the company s strategic plan. Strengthened governance
7 annual report veolia transdev Jérôme Gallot Chief Executive Officer The major contract wins and renewals that occurred during the last quarter of 2011 testify to the successful completion of the merger process and the bright promise of the future. The diversity, expertise and commitment of our 102,000 employees around the world position Veolia Transdev to fulfill its mission: making public transit the engine of future mobility. 01 Charlie Beaumont Performance and Commercial Director One of the strengths of Veolia Transdev is the diversity and depth of our talent base worldwide our people have expertise and competence in a wide range of modes, cultures and markets. The key to our success is offering our customers the best of both worlds fully empowered local management backed by the resources of a global group. 02 Marcos Garcia Financial Director The economic environment is requiring adaptation of public transportation policies to constrained financial resources. While continuing to demonstrate our commitment to our clients through major investments, Veolia Transdev applies its expertise in helping local authorities explore the best options in the choice of services and investments. 03 Dominique Gauthier director, france The transformation of our business is shifting our role from a manager of networks to a manager of mobility systems. In France several elements of these new multi-modal systems are becoming reality such as electric car sharing and digital services, opening up multiple opportunities for a mobility integrator like Veolia Transdev. 04 Olivier Grunberg General Secretary At the end of 2011, with the merger finalized, Veolia Transdev continued to move forward. The quality of the labor-management dialogue has enabled adaptation of the organization to meet new challenges. Reporting lines have been simplified and shortened in order to maintain the company-wide agility needed to seize the many emerging opportunities in mobility markets. 05 Hubert Guyot director, benelux We strive to forge win-win partnerships with local authorities. As an operator, we work to help our clients contain public transit costs, without ceasing to improve the quality of service delivered to passengers. This requires continuous innovation as well as more precisely adjusting the services provided to actual demand. 06 Mark Joseph director, north america In North America, the full effects of the economic crisis were felt in the transportation sector in Despite the difficult environment, we have continued to grow by reinforcing Veolia Transdev s fundamentals of safety, customer service, transparency, innovation and accountability. 07 Philippe Payen Strategy director Veolia Transdev s business activities are focused on selected countries and high growth regions. With a balanced urban, interurban, regional and international portfolio, we pursue profitable growth in attractive and emerging businesses such as transport on demand while also benefiting from economic development in Asia and the Pacific. 08
8 6 Governance Veolia Transdev adopted a new organization in 2011 and its business strategy delivered significant results. A renewed organization Veolia Transdev, an incorporated company with its own Board of Directors, is supported by its two major shareholders, Caisse des Depôts and Veolia Environnement, and their shared values: involvement in communities and regions, long-standing relationships with local authorities and a commitment to high performance and serving the public interest. The board has seven members, including one independent director, and three committees: strategy, compensation and audit. Chaired by the Chief Executive Officer, the Executive Committee defines the company s strategic direction to be proposed to the board and guides Veolia Transdev s business activities. It addresses issues affecting the company, including company-wide policies, action plans, performance and risk management. The Executive Committee has meetings every two weeks and comprises the directors of France (Group Executive Vice President), North America and Benelux, the Financial Director, the Performance and Commercial Director, the General Secretary and the Strategy Director. An additional monthly meeting includes the Executive Committee and directors of the Southern Zone, Asia-Pacific, Northern Europe and Central Europe. Major investment decisions or responses to tenders at company and country levels are subject to a formalized process of review, approval and application of continuous operational improvement. The consistency of corporate actions and their alignment with the company s operational and policy issues are facilitated by a Corporate Committee which meets once per month. The activities, business forecasts and actual results of each geographic area are subject to periodic reviews by senior management in conjunction with the company s major functional departments. Board of Directors Antoine Frérot Chairman of the Board Anne-Marie Couderc Director Antoine Gosset-Grainville Director Pierre-François Riolacci Director Cyrille du Peloux Director Pierre-François Gouiffès Director Caisse des Dépôts et Consignations Director Represented by Sabine Schimel
9 annual report veolia transdev RECENT wins AND renewals ADD TO contracts pipeline Over 5 billion (1) worth of recently won or renewed contracts have been added to Veolia Transdev s global operating portfolio: New Business In 2011, 15 new major contracts were awarded to Veolia Transdev with two to four new contracts awarded in each zone (2). FRANCE 1.5 billion Urban and interurban networks and airport management netherlands 960 million Regional bus operations in Arnhem Nijmegen Renewed Business In 2011, 35 re-tendered contracts were successfully retained by Veolia Transdev. More than 80% of the value of these contracts is located in France, Benelux or North America. 69% of annual turnover re-tendered in 2011 was successfully renewed (or retained). us 780 million transport on demand, urban bus and railway maintenance services us 350 million Long Island Bus Services in Nassau County, New York Asia Pacific 300 million Rail and bus services in New Zealand, China and Australia netherlands 210 million transport on demand and regional bus services ChilE 300 million Urban bus networks in Santiago germany 420 million OWL Bielefeld rail (1) Amounts are cumulative over the lifetime of the contract, which vary from one to twelve years in length. (2) Contracts of 5 million and above. Sweden 430 million Urban bus and rail services germany 145 million Regional bus services
10 8 Key figures With its complementary geographic footprint, expertise and service offerings, Veolia Transdev offers a unique response to public transport needs. The global benchmark in sustainable mobility 7.8 billion in revenues in 2011 (12-month basis) 814 million In 2011, Veolia Transdev invested more than 10% of its revenues to modernize its fleets and multi-modal public transportation networks. 13 transport modes 102,000 employees, serving our customers 25 light rail networks 60,000 vehicles 3.3 billion trips per year
11 annual report veolia transdev An international network in 27 countries across 5 continents. Veolia Transdev is built on two foundations; local roots and global resources. Sweden Finland United Kingdom Canada Ireland The Netherlands Poland Belgium Germany Czech Republic Slovakia France Slovenia Croatia Serbia United States Portugal Spain China South Korea Morocco Israel India Colombia Chile Australia New Zealand Responsible A responsible operator, a local employer, Veolia Transdev is fully committed to implementing sustainable solutions for society, the economy and the environment. Multi-modal The world s most multi-modal company, Veolia Transdev operates 13 modes of transport: train, tram-train, metro, light rail, coach, bus, BusWay, paratransit, ferry, taxi, car-sharing, shared-ride airport shuttle and bicycle. Multi-local The world s leading multi-local company, operating in 27 countries around the world; Veolia Transdev benefits from the close proximity to its clients of its 102,000 employees and their unparalleled diversity of cultures and experiences. Inventive Attentive to new mobility demands, focused on new mobility applications, a leader in the digital revolution, Veolia Transdev focuses on serving the travelers of today by inventing the public transportation of tomorrow.
12 10 Meeting mobility challenges More than a quarter of the world s CO 2 emissions come from transportation (passenger and freight), of which more than 90% are from road transportation. Commuting by car individually is 20 to 90 times more expensive than public transportation in terms of urban space and community infrastructure. Source : International Energy Agency IEA, Oecd. Source: With car ownership growing in emerging market countries, global demand for fuel will increase 40% by 2030 (1). With abundant and cheap petroleum a fading memory, higher carbon energy prices are inevitable. (1) Source: International Association of Public Transport. 160 Changes in oil prices since 2002 More than 9 billion people in 2050, compared with seven billion today: the projected jump in the world s population will continue to create increased demand for mobility services. So too will demographic changes, such as the increase in the number of people over 60 from 245 million in 2005 to 406 million in Source: United Nations Source: Datastream, Natixis.
13 annual report veolia transdev Doubling global public transportation by 2025 would uncouple mobility growth from increased environmental and societal costs, avoiding 600 million tons of carbon equivalent emissions annually, saving 170 million tons of oil equivalent and reducing traffic accidents by 15%. It would also reduce obesity and heart disease by 50%, while creating more than seven million direct jobs in local communities and many more indirect jobs. Between 20 and 50 billion per year The amount that the European market for non-carbon vehicles will be worth beginning in billion was invested in urban transportation in France in 2010, a 7% increase over Investment comes 42% from borrowing, 40% from transportation authorities and 10% from local partners. Source: Source: www2ademe.fr 2010 urban transport investment Road construction 59% Acquisitions (land, buildings) 13.8% Studies 2.9% Other investments 4.4% Equipment subsidies 5.3% Rolling stock 14.4% Information systems (ticketing, etc.) 0.2% Source: Annual survey of 175 urban transportation networks by the French association of organizing authorities, GART. More than 40 % of Veolia Transdev s ongoing or planned innovation portfolio focuses on improving network performance and associated operational services. Veolia Transdev is a world leader in developing alternative fuels and low-carbon energy transportation, particularly electric vehicles as in Montpellier (France) for example.
14 12...in a changing world Google Maps, Facebook, Twitter, Wikipedia... the first major Application Programming Interfaces (APIs) using the Web and open data appeared in Over 3,700 major APIs were introduced in the five years that followed. In the United States, the number of passengers traveling on public transportation networks increased 31% between 1995 and 2010, exceeding population growth (+17%) and highway use over the same period, according to the American Public Transportation Association. Source: In 2025 six out of ten people on the planet will live in cities. Daily commuting in urban areas will increase by 50% compared to If current trends continue, 80% will be motorized trips billion travelers marked the Chinese New Year in January (an increase of +9.1% over 2011), the largest displacement of human population in the world. More than 800,000 coaches and thousands of trains were mobilized to handle the peak demand. In 2020, there will be 200 million vehicles circulating on China s roads, compared with 76.2 million in late 2010, according to the Chinese Ministry of Industry. To reduce urban pollution, the country is investing massively in electric cars and intends to become a major producer in the years ahead. Source: Source: Source:
15 annual report veolia transdev car sharing vehicle replaces 15 individuallyowned cars The majority of the Group s innovation projects involve digital information systems (such as ticketing, passenger information, digital mobility or network management), making it one of the transportation sector s most innovative companies in developing digital services for passengers and creating the smarter city. Between 2000 and 2010, urban transportation ridership has increased in most European countries, with an increase of 17% in the UK and nearly 25% in France Base Veolia Transdev s CSR roadmap sets quantified objectives and commitments for economic, social and environmental performance, vis-à-vis eight stakeholder groups: Clients; Current and future travelers; public authorities and regulatory agencies; Communities and society; Current and future employees; Business partners (suppliers, subcontractors, contractors); operators and other transportation stakeholders; Current and future shareholders Germany Spain United Kingdom Italy France Source: UITP.
16 1410 Numérique 14 Our commitment: work to guarantee the highest possible quality of service for each and every traveler. Accessibility, frequency, comfort, speed, safety, on time performance... we strive to meet a standard of excellence for customers and Louconse quam, si as aut aut ut quaturaut quae moriost ecusa voluptuptasped eliquam axim aximil et veli ate necuscit, nient acmnim et od que plabo as accaellorectam. I want to be able to get about easily and safely. Penser la ville numérique local community clients across de all crite demain ria. In every country, region and community it operates, Veolia Transdev teams make our customers issue number one. Our customers are the best judges of their own needs. It s why we pay close attention to what they tell us they want and to their complaints. Our daily dialogue with travelers is the primary means of achieving continuous improvement. It also feeds the sharing of best practices throughout the company, to benefit our customers, and an innovation policy focused on making every journey an experience that contributes to improving quality of life.
17 annual report veolia transdev I want to travel how and when I want. Our commitment: offer customized solutions and services that enable each individual to take charge of their own mobility. No two travelers are the same. Needs and preferences differ. It s our job to ensure transport for all that offers options for individual mobility choices. From train, light rail, bus or ferry to bike, taxi, car sharing, shuttle or transporting mobility impaired people we assemble and operate multi-modal networks that allow each customer to find the right solution adapted to their lifestyle or needs. Worldwide, Veolia Transdev teams offer passengers more than just a ride: working to deliver a seamless, connected, customized mobility experience. Through digital information available on smartphones or other personal devices, travelers can organize and control their own journey from door to door, mode to mode... while useful cultural and recreational services enhance their journey.
18 1610 Numérique 16 Our commitment: to work with local authorities and passengers to make public transport a means of contributing to harmonious community development. The existence of a well-planned transport network is a pre-requisite for Penser la ville numérique sustainable growth of cities de and regions. demain Louconse quam, si as aut aut ut quaturaut quae moriost ecusa voluptuptasped eliquam axim aximil et veli ate necuscit, nient acmnim et od que plabo as accaellorectam. I want a mobility solution that s close at hand. Communities that have chosen an alternative approach to an auto-only environment have demonstrated how public transport contributes to the recovery of urban living environments, to reconnecting the city centers and suburbs, to keeping villages or isolated areas alive. Faced with the increasing demand for mobility, it is the only response that successfully balances individual needs and community interest. The challenge is to control the costs of modernizing networks at a time of strained public finances. By widely applying innovative management systems, such as transport on demand, Veolia Transdev responds to both the needs of individual travelers and the expectations of local public authorities.
19 annual report veolia transdev I want to leave a habitable planet for my children. Our commitment: increase the environmental sustainability of transportation through tangible, measurable actions. There s no question: public transport is positive for society. Per passenger-kilometer traveled, public transport pollutes less, results in lower greenhouse gas emissions, consumes less energy, takes up less space, causes fewer accidents and produces less congestion than private automobiles. The more we improve our transport networks, the more these advantages increase. But operators responsibility for further greening their operations doesn t stop there. Veolia Transdev was an early leader in developing eco-friendly transport, investing with public authorities to deploy new systems that integrate park-and-ride and environmentally friendly transport modes. Our fleets are at the leading edge in experimenting with alternative energies. Because actions speak louder than words, our drivers and maintenance teams are committed to adopting best practices and measuring performance.
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21 annual report veolia transdev in 11 key words 1 Customers Customer centric and driven. 2 Employees The strength of a diverse, responsible company. 3 Performance Industry leading standards. 4 Innovate A proactive partner. 5 Environment Paving the way for green growth. 6 Integrator Accompanying each traveler door to door. 7 Cities A city that breathes and moves! 8 Regions Intercity lifelines. 9 Digital Mobility companions. 10 Transport on demand Mobility à la carte. 11 Rail To be an active player in opening markets.
22 20 Customers Customer centric and driven Listening to customers, anticipating and responding to their needs and expectations, constantly seeking ways to provide simpler, more accessible and more personalized service Veolia Transdev strives to make each trip a unique experience, with passion and commitment. Striving for service excellence A commitment to listen, exchange and regularly measure service quality. Passenger transportation, as with many service industries, serves both institutional and end-user customers. Authorities provide the political vision, impulse and scope to deliver mobility services; passengers rely on Veolia Transdev every day to transport them between their place of work and home or for leisure travel. The desires of both are intrinsically linked, providing a virtuous circle. By focusing each and every moment on passengers ensuring a smooth and effective journey and being attentive to their satisfaction, Veolia Transdev helps increase the natural reflex to travel sustainably helping relieve congestion and improve quality of life. This, in turn, supports public authorities objectives to stimulate long-term regional and urban development. Veolia Transdev contributes through its proven ability to optimize network operating costs, deliver high quality of service and ensure systems are adapted and reactive to changing patterns of use. Whether local community client or traveling customer, it comes down to the same thing for Veolia Transdev: they are the focal point for everything we do. Customer thinking Frequency, speed, on-time performance, comfort, accessibility, seamlessness, individualized, simplicity... these are among the key criteria on which travelers judge the quality of public transportation. But no two passengers are the same and lifestyle needs are constantly changing. To respond to the real needs of customers, it s important to understand and anticipate. Veolia Transdev s marketing teams have created the Mobility Observatory, a strategic tool for investigating customer perceptions of public transportation. Developed initially in France, the observatory includes survey results from interviews with 30,000 people across the country. At the end of 2011, an adapted version of the survey was launched in Boston to further improve operational service performance, according to passenger needs. Highly recommended Over 90% of public transport authorities in Australia and New Zealand would recommend Veolia Transdev to other governments, according to the 2011 Veolia Transdev Multi-Country Barometer. Today s challenges, tomorrow s mobility 75% of public authorities place traveler satisfaction as the highest priority in traveler services, according to the 2011 Veolia Transdev Multi-Country Barometer (conducted in the US, Germany, the Netherlands, Czech Republic, Australia and New Zealand).
23 annual report veolia transdev Trans.Cité A valued dialogue Veolia Transdev was a founding member of Trans.Cité, which brings local elected officials together with transport professionals ( From dialogue to action The meetings provide an unparalleled opportunity for dialogue and proposals for action on key mobility challenges facing public authorities and their operating partners. Meeting the challenges of urbanization, responding to global climate change, developing new financial models for transportation and modernizing the mobility offer are among the subjects. The post-carbon city In 2011, the association s 22 nd Annual Convention in Madrid brought together elected officials, architects, planners and operators to challenge preconceptions and develop solutions for more socially responsible and environmentally friendly mobility. Listen up! Central to Veolia Transdev s 360 client vision is the Listen program designed to set the standard in feedback management and customer service performance. Two years after its initial launch in Dublin, Veolia Transdev s proprietary program brings a personal touch to customer relations in over 80 transit systems and 10 countries throughout the world. A process for managing passenger contacts and complaints systematically, personally and efficiently, Listen also serves as a vital analytical tool for use by Veolia Transdev teams and its transit authority clients to identify issues requiring corrective action. It is an example of the valueadded transversal tools developed by Veolia Transdev s marketing unit to help local operating teams drive service quality improvement. In parallel, the company s Mystery Traveler program helps to ensure consumer requirements and continuous improvement of the customer experience, while its Going for Care initiative helps management and frontline staff work to delight passengers with customer service excellence. transit authorities and decision-makers strategic mobility priorities and outlooks. Findings from the third wave of the survey completed in 2011 shows that while cost control is a major issue for politicians, their first concerns are for safety and passenger satisfaction, underlining the challenge for operators to improve network performance on all fronts simultaneously. Officials also want to be able to better monitor and manage the implementation of delegated services. More generally, communities share the preoccupation of transport professionals to anticipate and respond to changing mobility needs. In many countries, Veolia Transdev also has been a long-standing participant in industry and community associations that provide a forum for exchange with elected representatives and experts, helping to build a common culture of trust and to support the continuity of our partnerships. (1) See page 52. (2) See pages 54 and 55. Customer views 85% of residents prefer to walk five minutes more to catch a bus that comes twice as often, according to Veolia Transdev s Mobility Observatory. Co-construct and share customer expectations In addition to surveys and customer satisfaction studies, Veolia Transdev works to understand how travelers react to and apply the mobility solutions it proposes. Pre- and post-testing, focus groups and pilot experiments are catalysts for multi-disciplinary teams to refine new services to make them more responsive to passenger needs. For example, offerings such as BPASS (1) and Urban Pulse (2) were extensively field tested prior to deployment with the support of the company s development and innovation teams. In the UK, the Blazefield network was awarded the prize for Making buses a better choice, following field work that included soliciting passenger and employee input on bus improvements such as design, comfort, emissions control and on-board services. A partner to go further A commitment to being customer centric and driven also means supporting local authorities in identifying major trends and emerging needs. The Veolia Transdev Multi-Country Barometer survey monitors
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