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Environmental qwert Environmental Environmental 1 Overview Environmental 2009 Waste management and recycling Revenue €81.8m services to the industrial, commercial, construction and public sectors in Britain Operating profit €10.2m and Ireland ROCE incl. intangible assets 13% • Britain Wm Tracey, a 50% joint venture shareholding ROCE excl. intangible assets 30% in Scotland’s leading recycling and waste management business – embracing materials recycling, hazardous waste treatment, landfill Operating profit (€’m) 10 year CAGR : 63.7% and renewable energy generation from landfill 5 year CAGR : 14.9% gas – 9 licenced facilities 16 Wastecycle, a Nottingham based recycling and 14.0 waste management business operating from a 14 15 acre licenced facility 12 • Ireland 10.5 10.2 Enva. treatment of waste oils, chemicals and 10 contaminated soils and marketing of own- 8 branded effluent water treatment chemicals - 6 licenced facilities 5.1 5.4 5.5 6 3.3 Growth opportunities 4 1.9 Growth in the market due to increasing 1.1 • 2 environmental legislation 0.6 • More recycling due to increasing landfill costs 0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2 Overview cont’d Environmental Activities Non hazardous – Britain – Wm Tracey + Wastecycle - Waste collection - Segregation - Recycling of aggregates, timber, plasterboard, glass, plastic, paper, metals - Composting of biodegradable waste - Disposal - Generation of electricity from landfill gas Hazardous – Britain – Wm Tracey - Waste collection, analysis and treatment - Industrial services - Soil remediation - Disposal Hazardous – Ireland - Enva - Waste collection, analysis and treatment - Recycling of oil - Precious metal recovery - Waste water treatment - Industrial services - Soil remediation 3 William Tracey Environmental • Established in 1948 • One of the UK’s leading recycling & resource management groups • Full range of integrated environmental services • Handles approximately 700,000 tonnes of waste • 66% recycling • Fusing unparalleled industry experience with the latest technologies • Building long term partnerships with customers • Adding value to customer’s businesses 4 William Tracey cont’d Environmental • Collection of commercial and industrial waste - 130 waste collection vehicles • Materials recycling facilities (receipt and processing of waste) - Extraction of valuable commodities from waste streams - Production of wood chip for panel board industry - Production of construction aggregate from waste demolition material as substitute for virgin quarry aggregate • Chemical waste treatment • Tank and drain cleaning • Green waste composting • Landfill gas generation • Restoration of old quarry sites using inert material 5 William Tracey cont’d Environmental • 25 acre licensed materials recycling facility close to Glasgow airport • 2¼ acre licensed materials recycling facility in Glenrothes (between Edinburgh and Perth) • 1 acre licensed materials recycling facility in Linlithgow (close to Edinburgh) – moving to new 2½ acre site soon to be licensed • 3 acre hazardous waste licensed site in Paisley – chemical waste treatment • 4 ½ acre waste licensed site in Glasgow – tank / drain cleaning • Two old quarry sites being restored with inert material, one incorporating garden waste composting facility • Hazardous waste storage and processing facility, recently obtained planning consent for 150,000 tonne soil treatment plant • Closed landfill – now producing gas generated electricity for sale into the national grid. In addition planning application submitted for Anaerobic Digestion plant 6 William Tracey cont’d Environmental Existing Customers HMNB Clyde 7 Wastecycle Environmental • Largest materials recycling facility in East Midlands • Handles approximately 300,000 tonnes of waste • 78% recycling • Company philosophy is to: - recycle rather than landfill waste materials - provide customers with cost savings resulting from recycling - promote & encourage environmental best practice 8 Wastecycle cont’d Environmental • 15 acre licensed site • 31 waste collection vehicles • Materials recycling facilities (receipt and processing of waste) - Extraction of valuable commodities from waste streams - Production of wood chip for panel board industry - Production of construction aggregate from waste demolition material as substitute for virgin quarry aggregate • Management of the nationwide (excluding London) collection of waste gypsum on behalf of British Gypsum for reprocessing • Management of civic amenity site on behalf of local authority 9 Wastecycle cont’d Environmental Existing Customers 10 Enva Environmental • Irelands leading hazardous specialist company operating from four facilities in the Republic of Ireland and two in Northern Ireland • Also UK water treatment operation 11 Enva cont’d Environmental • Used lubricating oil collection and recycling • Garage services – oil filters, oily rags, parts washers etc. • Waste battery and fluorescent tube collection • Tank cleaning and 24 hour emergency oil spill response • Contaminated soil remediation • Waste water treatment • Chemical waste treatment 12 Enva cont’d Environmental Existing Customers 13 British Waste Management and Recycling Industry Environmental • Waste Management sector valued at approx £8.5bn, some 2,900 companies and 69,000 employees operate within the industry • PWC estimate CAGR in sector of 6-8% (2007-12) • 335 million tons of waste created annually by British homes and business • Movements in waste volume broadly reflect national economic activity • DCC key target market segment (commercial and industrial, construction and demolition) amounts to 190 million tons (DCC tonnage is c1m tons) • The major players (turnover £m) – Biffa (743), Veolia (697), Sita (603), WRG (519), Virador (368), Cory Environmental (189), account for c50% of market. • £6-7bn of investment required over next 10 years 14 Divisional Strategy Environmental • Seek opportunities to develop British footprint beyond current strong position in Scotland and East Midlands to capitalise on growth opportunity in recycling being driven by European landfill diversion targets - reduce volume of biodegradable waste sent to landfill from 1995 levels by: 25% in 2010, 50% in 2013 and 65% in 2020 • Exploit top class management to differentiate from peers • Develop capability in facility management and waste to energy technology • Pursue ambitious organic growth in hazardous waste backed up by investment in Research and Development • Take advantage of realignment of valuation expectations to acquire non-hazardous businesses, particularly in UK • Consider opportunistic hazardous waste acquisitions 15 qwert Environmental Wastecycle site visit 16 Wastecycle Site Environmental 17 Redox Plant – Mixed Waste Recycling Environmental 18 Wood Recycling Environmental Sent to fibreboard manufacturers to be used in the production of chipboard 19 Plasterboard Recycling Environmental Contaminants removed and re- processed plaster board transported to British Gypsum’s facility at East Leake 20 Dry Waste Recycling Environmental Sorts the waste input into the different materials e.g. Paper, card, plastics, cans, wood, glass, metals etc 21.
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