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  • Waste Management and Recycling Market Update Q3 2013

    Investment banking services are provided by Harris Williams LLC, a registered broker-dealer and member of FINRA and SIPC, and

    Harris Williams & Co. Ltd, which is authorised and regulated by the Financial Conduct Authority. Harris Williams & Co. is a trade name

    under which Harris Williams LLC and Harris Williams & Co. Ltd conduct business.

  • 1

    E-Waste

    Solid Waste

    Collection

    Specialty Waste

    Hazardous

    Recycling

    Solid Waste

    Disposal

    Specialty Waste

    Industrial

    Waste Management and Recycling

    Sector Overview

    HW&Co. understands the key trends and dynamics driving the waste management and

    recycling (WMR) sector.

    Waste-to-Energy

    (WtE)

    Recycled Content Specialty Waste

    Medical

  • 2

    Public Markets Update

    Data as of October 29, 2013.

    Source: S&P Capital IQ.

    Data as of October 29, 2013.

    Source: S&P Capital IQ.

    Comparable Company TEV/LTM EBITDA (Oct. 2008 Oct. 2013) Trading Statistics (TEV/LTM EBITDA)

    TEV/EBITDA Current Trading Performance

    Diversified Waste

    Management and Recycling

    Waste management and recycling comparables are trading at a 3.2% discount to the S&P 500

    but 19.4% above their five-year median.

    Solid Waste Management

    and Recycling

    Recycled Materials

    Waste-to-Energy

    S&P 500

    9.8x 5.4x 8.4x 8.0x 9.7x

    Specialty Waste

    All Waste Management and

    Recycling Comps

    14.6x 5.8x 7.8x 7.6x 8.9x

    10.5x 5.6x 8.6x 8.4x

    31.6x 3.2x 6.7x 7.5x 16.6x

    11.0x 3.8x 7.4x 6.7x 9.5x

    9.7x 5.7x 8.1x 9.6x

    9.9x 5.8x 8.5x 8.4x

    5-Year Min. & Max. 3-Year Median 5-Year Median Current

    8.6x

    8.9x

    9.5x

    9.6x

    9.7x

    9.9x

    10.6x

    16.6x

    0x 5x 10x 15x 20x

    Metals Processing

    and E-Waste

    Waste-to-Energy

    Diversified Waste

    Management and Recycling

    S&P 500

    All Waste Management

    and Recycling Comps

    Recycled Materials

    Solid Waste Management

    and Recycling

    Specialty Waste

    2x

    4x

    6x

    8x

    10x

    12x

    Oct-08 Oct-09 Oct-10 Oct-11 Oct-12 Oct-13Waste Management and Recycling S&P 500

    Metals Processing and E-

    Waste

    12.3x 7.4x 10.3x 10.0x 10.6x

  • 3

    August October November November

    26 7 14 21 28 4 11 18 25

    $30,000

    $25,000

    $20,000

    $15,000

    $10,000

    $5,000

    $0

    Enterprise

    Value

    ($ in mm)

    Q3 2013 Earnings Release Calendar

    Oct. 29

    Nov. 7

    Oct. 24

    Oct. 17 Oct. 29

    Aug. 29

    Oct. 31

    Oct. 23

    Oct. 22 Oct. 24

    Nov. 6

    Nov. 5 Nov. 7

  • 4

    Earnings Update

    Q3 2013

    Half way through the Q3 2013 earnings season, the overall waste management and recycling

    sector has experienced positive performance over prior periods.

    Q3 2013 Earnings Update

    Company Ticker Release Date Location Key Observations

    LTM Revenue: $466 Y-o-Y : 1.7%

    LTM EBITDA: $79 Y-o-Y : (7.0%)

    LTM Net Income: ($46) Y-o-Y : (44.6%)

    LTM Diluted EPS: ($1.24) Y-o-Y : (60.0%)

    LTM Revenue: $269 Y-o-Y : 17.0%

    LTM EBITDA: $12 Y-o-Y : 5.6%

    LTM Net Income: $2 Y-o-Y : (30.1%)

    LTM Diluted EPS: $0.09 Y-o-Y : (41.5%)

    LTM Revenue: $1,892 Y-o-Y : 18.8%

    LTM EBITDA: $632 Y-o-Y : 25.5%

    LTM Net Income: $182 Y-o-Y : 13.1%

    LTM Diluted EPS: $1.47 Y-o-Y : 9.0%

    LTM Revenue: $2,079 Y-o-Y : 12.0%

    LTM EBITDA: $624 Y-o-Y : 12.9%

    LTM Net Income: $303 Y-o-Y : 15.7%

    LTM Diluted EPS: $3.47 Y-o-Y : 14.9%

    NasdaqGM:HCCI 10/17/2013 Elgin, IL

    The Woodlands, TX

    NasdaqGS:CWST 8/29/2013 Rutland, VT

    Q3 2013 Performance

    NasdaqGS:SRCL 10/23/2013

    NYSE:WCN 10/23/2013

    Lake Forest, IL

    Casella continues to see the same recessionary trends

    in the business and the weak regional economy that

    has plagued the company all fiscal year.

    Casella made progress on improved pricing of

    collections, integrating the BBI acquisition, and

    closure of Maine Energy.

    Revenue, EBITDA and free cash flow met or

    exceeded the upper end of WCNs expectations.

    Volume once again exceeded expectations at over

    2% in the quarter, with continued broad-based

    disposal activity and the addition of R360 driving

    another quarter of double-digit year-over-year

    increases in solid waste landfill volumes.

    Stericycle closed 17 transactions in the third quarter,

    totaling $60 million in revenue and maintains a

    pipeline of opportunities worth $100 million.

    This increase in customer base provides a long-term

    growth platform for selling multiple services that

    can more than triple the customers' revenues.

    Growth in revenue was aided by HCCIs ability to

    continually add new customers serving 93,000

    individual customer locations from 74 branches.

    Improved efficiency of HCCIs used oil collection

    routes and its transportation in the Oil Business

    during the third quarter.

  • 5

    LTM Revenue: $19,441 Y-o-Y : 3.8%

    LTM EBITDA: $3,070 Y-o-Y : 20.0%

    LTM Net Income: $446 Y-o-Y : 147.6%

    LTM Diluted EPS: $0.79 Y-o-Y : 169.7%

    LTM Revenue: $2,020 Y-o-Y : 8.7%

    LTM EBITDA: $532 Y-o-Y : 1.7%

    LTM Net Income: $93 Y-o-Y : (143.8%)

    LTM Diluted EPS: $0.81 Y-o-Y : (144.2%)

    LTM Revenue: $1,643 Y-o-Y : (0.1%)

    LTM EBITDA: $418 Y-o-Y : (3.0%)

    LTM Net Income: $47 Y-o-Y : (19.0%)

    LTM Diluted EPS: $0.36 Y-o-Y : (15.8%)

    LTM Revenue: $192 Y-o-Y : 19.9%

    LTM EBITDA: $66 Y-o-Y : 15.0%

    LTM Net Income: $29 Y-o-Y : 10.7%

    LTM Diluted EPS: $1.57 Y-o-Y : 9.1%

    LTM Revenue: $13,917 Y-o-Y : 2.2%

    LTM EBITDA: $3,400 Y-o-Y : 2.3%

    LTM Net Income: $927 Y-o-Y : 7.9%

    LTM Diluted EPS: $1.98 Y-o-Y : 6.6%

    ENXTPA:SEV 10/24/2013 Paris, France

    TSX:BIN 10/24/2013 Ontario, Canada

    NYSE:CVA 10/24/2013 Morristown, NJ

    NYSE: WM 10/29/2013 Houston, TX

    NasdaqGS:ECOL 10/29/2013 Boise, ID

    Earnings Update (cont.)

    Q3 2013

    Company Ticker Release Date Location Key ObservationsQ3 2013 Performance

    In the third quarter, Progressive delivered its highest

    organic revenue improvement of the past five years.

    This growth reflects a continuation of the higher

    construction and demolition volumes that it

    experienced in the second quarter this year, which

    have continued to date.

    Acquired a 1,050-ton-per-day Energy from Waste

    facility in Camden, NJ for $49 million, which was

    immediately accretive.

    Energy sales were lower than expected not because

    of its production but because of a couple of unusual

    circumstances related to customers' inability to take

    its steam and electricity.

    Suez expects its European waste volumes to drop

    3% for 2013E, but expects stabilization in 2014P.

    Suez continues to close sites in Europe to restructure

    its waste division the company shut 13 additional

    sites in Q3 2013.

    Q3 2013 Earnings Update

    Strong results were driven by WMs continued focus

    on increasing revenue growth from yield gains and

    controlling costs.

    Margins expanded despite continued headwinds

    confronting WMs recycling and waste-to-energy

    businesses and modestly lower volumes.

    Treatment and Disposal revenue grew at 10% over

    prior year levels, attributed to continued strength of

    its project-based work or Event Business.

    Its Event Business grew 23% during the quarter, led

    by growth in the commercial sector, which offset

    U.S. Ecologys softness in the government sector.

  • 6

    Overall M&A Activity

    Global Waste Management and Recycling Middle Market M&A Volume1,2

    For the Quarters Ended Q1 2007 Q3 2013

    2007 2009 2010 2011 2012 2008

    All M&A: 1,711

    WMR M&A: 10

    All M&A: 1,847

    WMR M&A: 21

    All M&A: 1,421

    WMR M&A: 11

    All M&A: 1,795

    WMR M&A: 15

    All M&A: 1,979

    WMR M&A: 14

    All M&A: 1,797

    WMR M&A: 12

    All M&A: (23.1%)

    WMR M&A: (47.6%)

    All M&A: 26.3%

    WMR M&A: 36.4% All M&A: 10.3%

    WMR M&A: (14.3%)

    Sources: Thomson Financial SDC database, S&P Capital IQ

    (1) Includes transactions between $50 million and $1.5 billion in enterprise value.

    (2) Excludes minority purchases, acquisitions of remaining interest, self-tenders and repurchases.

    M&A volume across the waste management and recycling sector has been generally in line with

    the broader market despite some year-to-year variations.

    Rebound in volume

    after sluggish 1H.

    All M&A: 7.9%

    WMR M&A: 110.0%

    All M&A: (9.2%)

    WMR M&A: (14.3%)

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  • 7

    Metalico Neville /