Europe Private Water Utility Rankings Brochure

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MARKET INSIGHT Europe Private Water U/lity Rankings: Markets & Company Strategies 18 May 2015

PRIVATE WATER INSIGHT SERVICE

MARKET INSIGHT Europe Private Water U9lity Rankings: Markets & Company Strategies MARKET INSIGHT

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0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

Suez Veolia Thames Water United Utilities Severn Trent Anglian Water Group

Yorkshire Water

Saur FCC Aqualia Southern Water

US

$ m

illio

ns

Poland

Romania

Czech Republic

Italy

Spain

UK

France

Top 10 European Private Water Utility Groups Revenues 2013/2014

In revenue terms, Suez and Veolia nearly double the nearest European competitors at over $6 billion in annual turnover.

Consolidated Rankings Distance Suez, Veolia as Regional Players



Notes: *Common shareholder Veolia. **Common shareholder Suez Environnement. ***Common shareholder FCC Aqualia Sources: Utilities, Bluefield Research Estimates.

0

5

10

15

20

25

30

Pop

ulat

ion

Ser

ved,

Mill

ion

Top National Private Water Utilities by Population Served, 2013/2014

In terms of population served, Europe’s leading private utilities include geographically diversified national players (ie Veolia, Aqualia), regionally entrenched firms (ie ACEA, English utilities), and companies serving key cities (ie PVK Prague, Apa Nova Bucharest).

Leading Players Serve 156 Million Concentrated in Seven Countries

France

UK

Spain

Italy

Germany

Czech Rep.

Romania

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M&A Target markets

Market Entrant M&A Overview Year Asset % Stake Buyer US$ million

2012 Bristol Water 20% Itochu 69

2012 Veolia Water UK 90%

Infracapital, Morgan Stanley

Infrastructure Partners, Beryl

Datura investments

1,920

2013 SmVaK 49% Mitsui 124

2013 Veolia Portugal 100% Beijing Enterprises Water Group 127

2014 FCC (Aqualia) 26% Inmobiliaria Carso SA de CV 1,200

2014 AGS 100% Marubeni N/A

2014 Canaraguas 33% Itochu 48

2015 Bournemouth Water 100%

Pennon Group Plc (South West Water

owner) 150

2015 Nantaise des Eaux 100% Suez

Environnement N/A

Deleveraging by larger players Veolia, Agbar, and FCC Aqualia have afforded entry opportunities to create a more diversified field of private utility investors.

Investment firms tap into stable utility returns as industrial players deleverage in UK.

Veolia, Sacyr divest from Portugal to deleverage, open doors to Asian players (BEWG, Marubeni).

•  Itochu enters Spanish market through Canaraguas (Agbar) minority stake.

•  Inmobiliaria Carso positions in FCC corporate.

FCC Aqualia reduces SmVaK stake partnered with Mitsui.

Italy becomes target market going forward as sector consolidates.

Larger Players Deleveraging Opens Doors for Investment

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Section 1 – Overview 1.  Summary 2.  Europe Private Water Utility Analysis – Methodology Overview Section 2 – Europe Private Water Utility Market Trends & Analysis 3.  Drivers of Private Investment Stable in Most European Markets 4.  Core Group of Countries Hosts Major Water Utilities 5.  Private Water Utility Presence in Western Europe 6.  Larger Players Deleveraging Opens Doors for Investment 7.  French Players Contend with Municipal Push-back, Look Abroad 8.  UK Utilities Adjust to Price Review Determinations, Increased Competition 9.  Spain Restructures Around Key Utility Groups 10.  Italian Market Edges Toward Consolidation 11.  German Market Centers around Regional Public Entities Section 3 – Europe Private Water Utility Rankings 12.  Large Scale Private Utilities Break out into Two Major Groups 13.  Suez, Veolia Lead Europe Drinking Water Volume Supplied 14.  Leading Players Serve 154 Million Concentrated in Seven Countries 15.  Revenues Stable for Most Players with Minor Uptick in 2013/2014 16.  Private Water Utility Presence in Western Europe 17.  Ownership Footprints Overview – Key Assets of Utility Groups 18.  Consolidated Rankings Distance Suez, Veolia as Regional Players 19.  Consolidated Rankings by Volume Present Three Tiers of Players 20.  Consolidated Rankings Population Served 21.  Rankings Outlook – Key Inputs

•  This Market Insight highlights the following: - Critical policies and drivers shaping private investment in

European water utilities

- Historical evolution of European utilities and private investment trends

- Competitive landscape of private water utilities markets, including rankings of key players, M&A activity, and analysis of entrenched and emerging asset owners

- Company profiles and portfolio analysis of 25 companies, including key concession assets, European footprint, population served, performance characteristics, ownership structure, and recent activities

•  This report is part of Bluefield Research’s Private Water Insight Service, which provides continuous monitoring and in-depth analysis of private water participation in global markets.

Market Insight Details Analysis

•  Data Analyzed -  Period analyzed: 2013-2014 -  25 Water Utilities and Owners / Investors by Ownership Stake -  Top Private Water Utilities by Volume Supplied -  Top Private Water Utilities by Population Served -  Top Private Water Utilities by Revenues -  Private / Mixed Supplied Drinking Water by Country (%) -  Key Utility Concession New Wins, Renewals, Expirations -  M&A Activity by Utility

About This Market Insight

Europe Private Water Utility Rankings: Markets & Company Strategies 2013-2014 is part of Bluefield’s Private Water Insight Service. Bluefield’s Private Water Insight Service provides clients with research and analysis on the private sector’s growing role in the ownership & management of water production and distribution, including the tracking of private utilities, independently owned water systems, concessions, and investment strategies.

Companies / Utilities Profiled Acciona � ACEA � Affinity Water � Agbar � Aguas de Valencia � Anglian Water Group � Apa Nova Bucuresti � Bristol Water � FCC Aqualia � Gelsenwasser � Groupe Saur � Gruppo Hera � Gruppo Iren � Northumbrian Water � PVK Prague � Severn Trent � SmVaK � South East Water � Southern Water � South West Water � Suez Environnement � Thames Water � United Utilities � Valoriza Water � Veolia CGE � Yorkshire Water

Utility Shareholders Positions Analyzed 3i � Areva � Beta Asociados � BNP Paribas � Caisse Des Depots � Capstone Infrastructure � Colonial First State � CPP Investment Board � Cymofag � DISA Corporacion Petrolifera � Entreazca BV � Fomento Urbano de Castellon � GBL � GDF Suez � Groupe BPCE � Groupe Marcel Dassault � Grupo Corporativo Fuertes � Grupo Slim � HDF Holdings � ifm Investors � Itochu � Kelda Group � Macquarie Group � Mitsui � Mr. Caltagirone � Prilomi � Taube Hodson Stonex Partners � Tussen de Grachten BV � UK Water � William H. Gates, III

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Section 4 – Company Profiles & Analysis



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© 2015 BLUEFIELD RESEARCH, LLC.

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Europe Private Water Utility Rankings Brochure