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Environmental

qwert

Environmental

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Environmental

• Growth in the market due to increasing

environmental legislation• More recycling due to increasing landfill costs

Growth opportunities

• Britain

Wm Tracey, a 50% joint venture shareholding in Scotland’s leading recycling and waste management business – embracing materials recycling, hazardous waste treatment, landfill and renewable energy generation from landfill gas – 9 licenced facilities

Wastecycle, a Nottingham based recycling and

waste management business operating from a 15 acre licenced facility

• Ireland Enva. treatment of waste oils, chemicals and contaminated soils and marketing of own-

branded effluent water treatment chemicals - 6licenced facilities

Waste management and recycling services to the industrial, commercial, construction and public sectors in Britain and Ireland

30%

13%

€10.2m

€81.8m

2009

ROCE excl. intangible assets

ROCE incl. intangible assets

Operating profit

Revenue

0.6

1.11.9

3.3

5.1

10.2

14.0

10.5

5.55.4

0

2

4

6

8

10

12

14

16

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

Operating profit (€’m) 10 year CAGR : 63.7%5 year CAGR : 14.9%

Overview

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Environmental

Hazardous – Ireland - Enva

- Waste collection, analysis and treatment

- Recycling of oil

- Precious metal recovery

- Waste water treatment

- Industrial services

- Soil remediation

Hazardous – Britain – Wm Tracey

- Waste collection, analysis and treatment

- Industrial services

- Soil remediation

- Disposal

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

Activities

Overview cont’d

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Environmental

William Tracey

• 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

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Environmental

William Tracey cont’d

• 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

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Environmental

William Tracey cont’d

• 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

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Environmental

Existing CustomersExisting Customers

William Tracey cont’d

HMNB Clyde

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Environmental

Wastecycle

• 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

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Environmental

Wastecycle cont’d

• 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

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Environmental

Existing CustomersExisting Customers

Wastecycle cont’d

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Environmental

Enva

• Irelands leading hazardous specialist company operating from four facilities in the Republic of Ireland and two in Northern Ireland

• Also UK water treatment operation

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Environmental

Enva cont’d

• 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

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Environmental

Existing CustomersExisting Customers

Enva cont’d

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Environmental

British Waste Management and Recycling Industry

• 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

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Environmental

Divisional Strategy

• 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

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Environmental

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Wastecycle site visit

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Environmental

Wastecycle Site

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Environmental

Redox Plant – Mixed Waste Recycling

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Environmental

Wood Recycling

Sent to fibreboard manufacturers to be used in the production of chipboard

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Environmental

Plasterboard Recycling

Contaminants removed and re-processed plaster board transported to British Gypsum’s facility at East Leake

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Environmental

Sorts the waste input into the different materials e.g. Paper, card, plastics, cans, wood, glass, metals etc

Dry Waste Recycling