© AMANE 2016 – December 2016December 6-7, 2016

Designing tomorrow’s successes

M&A Investment Trends

Affiliated With

Thierry NOELManaging Partner

© AMANE 2016 – December 20162

Our Mission: Accelerating the growth of our clients

Strategy• Market

Intelligence• Strategy design• Business

Planning

Mergers & Acquisitions• Fund raising• Sell-side• Buy-side

Investments• Investment

strategy• Funding• Asset

Development

Business Development• Marketing

offerings• Sales support• Branding &

Communications

© AMANE 2016 – December 20163

As an independent team of water experts, Amane have successfully delivered a number of due diligence, M&A and fund raising projects in the water sector

Advisor to seller

Sale of Water Division

Advisor to buyer

AcquisitionOf German Water

EPC

Advisor to buyer

Acquisition

Advisor to the company

Acquisition of Water EPC UK/USA

Advisor to the company

Acquisition

Confidential acquirer

Buy—side advisor

Confidential acquirer

Advisor to buyer

Acquisition of Severn Trent Services Water

Purification

Market Advisor

IPO

€22 000 000

Sole advisor

Fund raising

Advisor to investor

Capital Investment

Confidential acquirer

Buy—side advisor

Sale

Advisor to seller

Saleto

Advisor to buyer

Spanish Desalination Developer

Advisor to Investor

Technology start-upFund raising

For innovation spin-off

Fund Raising

Advisor to buyer

Acquisition of Water Treatment in

Southern Europe

to

Advisor to seller

© AMANE 2016 – December 20164

137 water deals tracked from January to September 2016

82 80 85 86 88

107

132144

136

119

145

199 195 195

210

185

137

0

50

100

150

200

250

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016*

Number of deals in the water industry (2000-2016*)

*YTD in September 2016

Average for the last 15 years

© AMANE 2016 – December 20165

A few large deals should make 2016 a record year

$214m

$81m

$192m

$278m

$159m

$225m

$392m

$544m $552m

$78m

$170m

$483m

$261m

$116m

$226m

$405m

$m

$100m

$200m

$300m

$400m

$500m

$600m

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Average deal size ($m)(2000-2015*)

*2016 Average deal size is not yet available

© AMANE 2016 – December 20166

1 Veolia: Global water operator and systems integrator

$12.5bn

2 Suez: Global water operatorand systems integrator

$8.0bn

3 Ecolab: Water treatmentchemicals and related services

$7.1bn

4 Pentair: Pumps, valves, UF membranes and pool equipment

$4.6bn*

5 Xylem: Pumps, analytics, & wastewater technology supplier

$3.7bn

6 Grundfos: Danish pump supplier with strength in residential

$3.7bn

7 GE Water: Chemicals,membranes & systems, including anaerobic

$2.1bn

8 Kemira: Finnish water treatment chemicals specialist

$2.6bn

9 Danaher: Analytics,disinfection, sludge & systems integration

$2.3bn

10 AECOM: US engineer with global presence

$2.0bn

11 Kurita: High-Purity water systems, and chemical supply

$1.8bn

12 Ebara: Japanese pump manufacturer

$1.8bn

12 Remondis: German water and wastewater operator

$1.7bn

14 Tetra tech: US engineer $1.7bn

15 BEWG: Chinese water and waste water project developer

$1.6bn

16 KSB: German pumps and valves manufacturer

$1.5bn

17 CH2M: Engineer with design-build and operations interests

$1.3bn

18 Saur: French water operator $1.3bn

19 Evoqua: US water technology & services group

$1.2bn

20 Mueller Water: Water equipmentand technologies

$1.2bn

21 MWH Global: US engineer $1.0bn

22 Dow Water & PS: Membranes, biocides and filtration

$1.0bn

23 Aqualia: Spanish EPC contractor and operator

$1.0bn

24 Metawater: Japanese systems integrator and membrane specialist

$900m

25 ABB: Meters, automation & control systems

$900m

27 CULLIGAN: Water softeners & packaged systems

$450m

28 Beijing Origin Water: MBR systems supplier & project developer

$800m

29 Doosan: Korean desalination specialist $800m

30 Rexnord: Zurn and VAG valve brands $800m

31 Black & Veatch: US engineer with global footprint

$700m

34 Beijing Capital: Water & wastewater project developer

$700m

35 Sound Global: Water & waste water project developer & EPC

$600m

36 BWT: Austrian commercial water systems specialist

$590m*

At least 40% of largest water companies have completed an acquisition in 2015-2016…

According to GWI Magazine Jan. 2016 issued, excluding utilities and estimated revenue for 2015, Exchange rate €/$=1,1*Source Capital IQ

At least One acquisition completed in 2015-2016

© AMANE 2016 – December 20167

1 Veolia: Global water operator and systems integrator

$12.5bn

2 Suez: Global water operatorand systems integrator

$8.0bn

3 Ecolab: Water treatmentchemicals and related services

$7.1bn

4 Pentair: Pumps, valves, UF membranes and pool equipment

$4.6bn*

5 Xylem: Pumps, analytics, & wastewater technology supplier

$3.7bn

6 Grundfos: Danish pump supplier with strength in residential

$3.7bn

7 GE Water: Chemicals,membranes & systems, including anaerobic

$2.1bn

8 Kemira: Finnish water treatment chemicals specialist

$2.6bn

9 Danaher: Analytics,disinfection, sludge & systems integration

$2.3bn

10 AECOM: US engineer with global presence

$2.0bn

11 Kurita: High-Purity water systems, and chemical supply

$1.8bn

12 Ebara: Japanese pump manufacturer

$1.8bn

12 Remondis: German water and wastewater operator

$1.7bn

14 Tetra tech: US engineer $1.7bn

15 BEWG: Chinese water and waste water project developer

$1.6bn

16 KSB: German pumps and valves manufacturer

$1.5bn

17 CH2M: Engineer with design-build and operations interests

$1.3bn

18 Saur: French water operator $1.3bn

19 Evoqua: US water technology & services group

$1.2bn

20 Mueller Water: Water equipmentand technologies

$1.2bn

21 MWH Global: US engineer $1.0bn

22 Dow Water & PS: Membranes, biocides and filtration

$1.0bn

23 Aqualia: Spanish EPC contractor and operator

$1.0bn

24 Metawater: Japanese systems integrator and membrane specialist

$900m

25 ABB: Meters, automation & control systems

$900m

27 CULLIGAN: Water softeners & packaged systems

$450m

28 Beijing Origin Water: MBR systems supplier & project developer

$800m

29 Doosan: Korean desalination specialist $800m

30 Rexnord: Zurn and VAG valve brands $800m

31 Black & Veatch: US engineer with global footprint

$700m

34 Beijing Capital: Water & wastewater project developer

$700m

35 Sound Global: Water & waste water project developer & EPC

$600m

36 BWT: Austrian commercial water systems specialist

$590m*

…while some of them have sold a part or all their water businesses

According to GWI Magazine Jan. 2016 issued, excluding utilities and estimated revenue for 2015, Exchange rate €/$=1,1*Source Capital IQ

At least One Sale completed / Ongoing sale in 2015-2016

© AMANE 2016 – December 20168

Key trends in 2016

Big PE exits (Culligan, TestAmerica) and more to come (Evoqua,

Solenis, Triwater)

An uptick in water IPOs (AquaVenture, Forterra)

Corporate exits from water (GE, Bilfinger, Schlumberger)

Chinese buying in Europe (Anhui Guozhen, Safbon, New Concept)

Portfolio broadening (Xylem/Sensus, Ecolab/Aquatech, H2O

Innovation/Utility Partners, Suez)

Family offices hit the big time (SKion/Ovivo)

© AMANE 2016 – December 20169

Fair value legislation in key US states accelerates big-ticket regulated M&A

More regional players going national in the US (U.S. Water, Woodard & Curran)

Chinese domestic BOT portfolio consolidation dries up

UK service company reshuffling ahead of retail competition in 2017

Middle East consolidation focused on Saudi

Localized trends

© AMANE 2016 – December 201610

Data analytics/cybersecurity, rather than physical interventions

Smart solutions which lead to capex deferral/lower O&M costs

Portfolio diversification/platform-building (SKion, XPV Capital, Tigris Water)

Significant PE commitments to oil and gas service companies

Focused tuck-ins by corporates

Where is the money focusing?

© AMANE 2016 – December 201611

The sale of GE Water will set the tone for 2017

Smart data analytics will increasingly drive water M&A

A rationalization of deal multiples

Less “soloing” of acquired water businesses and more “ecosystem” creation

More failures of small listed water tech companies (HaloSource, APTwater, Therma-Flite)

A US crackdown on Chinese SOEs buying American companies

What we expect in 2017?

© AMANE 2016 – December 2016Market Strategy Mergers & Acquisitions Investments Branding

Thierry Noel

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