The experience of a global player in the water business Erik Bundgaard Is Water Business Export Business?: October 14. 2011

WATER ENERGY SERVICES WASTE MANAGEMENT TRANSPORTATION €12.1 billion The only company in the world able to cover the entire range of environmental solutions WATER The global benchmark for water services €12.1 billion ENERGY SERVICES The global benchmark for energy optimization €7.5 billion WASTE MANAGEMENT The global benchmark for waste management and resource recovery €9.3 billion TRANSPORTATION Setting the standard for managing safe and sustainable mobility services €8 billion* *Revenue generated by Veolia Transdev

Veolia Water: the global benchmark for water services 3,377 municipal wastewater treatment plants 5,089 drinking water production plants +96,000 employees 7.3 billion m3 of wastewater collected 9.8 billion m3 of drinking water distributed 3 3

Innovation, a new paradigm Quality and security of water supply Meeting tightening effluent criteria Territories Local governments Industries Resource Recovery Water Footprint Reduction Energy Efficiency Carbon Footprint Reduction

DNA Glocal: global and local Build on the experience developed in each country Create global networks of knowledge and skills 150 years Experience Innovation capacity Agility to adapt 5 5

Veolia and Innovation 110 partnerships in the public sector 70 industrial partnerships 3 chairs - 15 partners programs Internal innovation 6 main research centers 850 experts 8 test platforms Partnering for Innovation 6 6

The experience of a global player in the water business II: How Danish companies can contribute to the development of the global Water Industry/Market App 10.000 employees 135 business units in 57 countries + 250 proprietary technologies VWS 3 875 employees 20 business units in 10 countries Revenue 2010: DKK 2.000 million

Case 1 Krüger / VWS in Poland

History 1991: Krüger Consult A/S, Krakow 1997: Krüger Sp. z o.o., Krakow 2003: 2 locations 2005: 3 locations 2008: 4 locations 2009: approx. 200 employees, municipal and industrial D&B, solutions and service

Case story Czajka Wastewater Treatment Plant , Warsaw

Czajka WWTP, Warsaw, Poland Capacity 2 Mill PE BioDenipho® (Biological Removal of Nitrogen and Phosphorus) STAR® control and ATS (Aeration Tank Settling) Pyrofluid® sludge incineration, 192 t dry sludge/d 11 50 19 23 64 60 65 93 95 94 6 96 97 98 01 02 08 04 05 03 12 72 79 74 / 75 76 24 22 41 40 91 92 90 61 77 78 20 66 69 70 67 62 71 68 63 07 16 31 21 30

Project phases: Wastewater treatment plant 1st tender: No bids received 23 Nov. 2006 2nd tender: Two bidders way above the budget 15 Feb. 2007 3rd tender: Three bidders 11 Jul. 2007 Contract awarded to Warbud/Veolia/WTE 25 Sep. 2007 One bidder protested their disqualification and the award The protest was rejected by the Client and appealed to the Public Procurement Office The protest was rejected by the Public Procurement Office and appealed to the Civil Court The protest was finally rejected by the Civil Court 07 Jan. 2008 The Contract signed on 31 Jan. 2008 Commencement date: 29 Feb. 2008 Building permit: 12 Dec. 2008 Start Construction: Jan. 2009 Time for completion, Contractual date : 51 months – 30 Apr. 2012 Warranty period: TOC + 30 months

Contract value: 462.5 M° Euro (excl. VAT) Project Organization Client Municipality of Warsaw MPWIK 3 key succes factors: Local presence Proprietary technology Experience and references Engineer EMC Group Polska WARBUD Civil Works Consortium Leader OTV Process KRUGER Process Veolia JV Leader VWS PL Process WTE Process Sludge treatment Veolia JV Consortium 17/04/2017 Czajka WWTP - Site office / Hans Ole Poulsen 13

Case 2 Krüger / Kruger Inc. (VWS Americas)

Kruger experience in the USA Kruger Inc. Since 1989. Sales of solutions/technology through reps’

Our Experience – requirements for success Local presence Strong partners (relationship, legislation, tradition) Patience…….. Capital Proprietary technology Technology appropriate for the market References in home country or abroad. (Seeing is believing)

The future is temporary In ten years’ time, will we still be building water infrastructure for 100 years?. Demand forecasting in the water sector is stupidly inaccurate. When planners start to map out how much water will be needed twenty or thirty years hence, they are not only wrong, but wrong in an unpredictable way. Prediction The kind of things which we currently associate with emergency disaster response are going to become mainstream. Water services are going to become more a matter of “just in time” than “just in case”. There will be more risks in the industry, but the rewards will be better. GWI 26th May 2011