Global Water Market $400 Bill

1
Global Water Market - 400 Bill

• Water technologies represent 25 of total
  market, or 80-100 billion
• Infrastructure, construction, management,
  utilities, etc. 65, 230-260 billion
• Consulting, engineering 10, 35-40 billion
• High-end market growing 10-12 p.a.
• Water treatment market estimated at 10 billion by
  2015 (UN WWDR3, March 2009)

2
Major MA deals define a sector

• GE acquisition of US Ionics for 1.1 billion in
  2004 (desalination, water reuse)
• Siemens acquisition of US Filter in the same year
  for 1 billion (water, wastewater treatment)
• European concerns such as Suez and Veolia pioneer
  the PPP (public-private partnerships) model,
  injecting finance into the system and driving
  market growth and consolidation
• US engineering firms carving out water practices
  to stay in the game (Tetra Tech, AECOM, etc)

3
Major growth drivers

• Demand for water far exceeding global population
  growth
• Estimated 3 billion people will lack access to
  sanitation by 2025
• Emerging economies such as China and India
  require huge infrastructure build out
• Agricultural subsidiaries in developed countries
  such as US and Australia will be phased out or
  eliminated altogether
• Increased alignment of actual costs to
  sustainable service models, increased tariffs and
  private sector participation (public company
  financing, etc)

4
Desalination market highlights

• Expenditures of 95 billion forecast through
  2015
• 48 billion in new capacity (30 billion in
  capex, 18 billion in op-ex)
• Additional capacity of 31 million cubic meter /
  day to come online
• Represents 101 increase over 10 year period
  (waterindustry.org)
• Largest market is the Gulf region, with doubling
  in capacity required
• Largest growth in Mediterranean Rim countries
  (300)
• China and India set to enter large scale
  desalination market
• Higher water tariffs expected to help finance
  build out
• Growth in membrane technology, particularly RO,
  to outpace thermal technologies
• Yet, demand management, better utilization of
  resources (costs vs. subsidy) expected to yield
  highest results
• Environmental concerns will need to be addressed

5
Waste-to-energy market highlights

• Strong growth through 2012 in Europe, with
  landfills phasing out
• Capacity to increase by 13 million tons, with 100
  new plants to come on line (Frost Sullivan)
• WTE market represented by about 200-250
  companies, a relatively small number due to
  large, centralized facilities
• But, number is growing as network of thermal
  units expands

6
Israel market

• About 250 companies operating in Israels water
  tech sector
• 80 exporting to some 100 countries around the
  world in irrigation, water management, water
  treatment, desalination, water security
• 20 starts ups engaged in advanced fertigation,
  wireless monitoring, filter membranes,
  biotechnology solutions, adsorption-filtration
  systems
• Exports reached 1.4 billion in 2008, up from
  700 million in 2005
• Recognized sector leader in irrigation and
  desalination necessity is the mother of
  invention

7
Case studies Israel market

• Atlantium
• Targeting the 5 billion market for water
  disinfecting with UV light water purifiers
• Units have purifying capacity of up to 200 cubic
  meters / hour
• Units cost 20k - 120k depending on degree of
  purity, efficiency levels
• Tested successfully by US environmental
  engineering firm HydroQual

8
Case studies Israel market

• Aqwise
• Biologically based solutions to break down
  organic waste by breeding bacteria in water jet
  systems
• Systems installed in about 30 plants around the
  world
• Licensed by Siemens Water Technologies
• Successfully improved the rate of treatment at
  waste recycling plant in Monclova, Mexico to
  58,000 cubic meters / day from 38,000 cubic
  meters / day
• Recycling value how to reduce the area and cut
  time that water stays in the plant

9
Consortiums involved in Israel market

• VID Desalination Ashkelon SWRO
• BOT, 25 year 100 Mill cubic meter / year project
• Partners include IDE Technologies (50), Veolia
  (25) and Elran Industries (25)
• Via Maris Palmachim
• BOO, 25 year 30 Mill cubic meter / year project
• Partners include Tahal, Tambor Ecology, Middle
  East Tubing and Tadgua (Spain)
• Who will be best positioned to capture the
  planned 600 Mill cubic meter / year capacity?