Page 1

EnviDan Highlights 2012/13


Management’s letter

Strong result for the year

In 2012/13, the EnviDan Group generated a strong result despite a competitive market. Both revenue and earnings have increased, and the bottom line shows a plus of 1.3 million Euroes after tax. It is a highly satisfactory result and indicates that we are well on track to achieve the goals we have set for the company’s development. High level of activity The result reflects a trend in which we have maintained high activity in existing fields combined with new activities especially within Biogas, Water Resources and Water Supply. Internationally, we have consolidated ourselves in the market, although the results for EnviDan International A/S does not reflect the actual activity outside of Denmark. Many of our international activities have increased turnover in EnviDan’s other divisions, and as a whole EnviDan International A/S has been instrumental in strengthening our position – inside as well as outside of Denmark. EnviDan International A/S has invested heavily in market development in the Nordic countries, China and Southeast Asia, which future business activities will reflect. High customer expectations This year’s satisfactory result does not mean that we now rest on our laurels. The water and wastewater sector is constantly subject to competition and efficiency requirements, and the global lack of resources makes demands for efficient handling and treatment of water. Equally interesting is the flourishing markets in especially Asia, where increased consumption combined with new public demands have created a

2

need for cleaner technologies, a more reliable water supply, optimised wastewater treatment, and energy efficiency in existing plants. As a natural result of these factors, our customers raise their expectations to us as a supplier. If we do not create still greater value through innovative solutions, our customers will turn another way. It is that simple. Innovation through investments Therefore, we are pleased to have increased the budget for our development projects and allocated approximately 1.1 million Euros in the coming financial year – including the 20 percent of the profits, which we have chosen to devote to product innovation. Along with external fundings, these funds will ensure our future business through landmark solutions and highly qualified employees. We have gone into the next financial year with the wind at our back, but also with a keen awareness that we must work hard to continue doing what we are put in the world to do – creating value for customers in order to benefit the environment.

Morten Fjerbæk CEO, EnviDan Group

Jan Tryk Chairman of the board, EnviDan Group

Jens Baadsgaard Pedersen Chairman of the board, EnviDan International A/S

Søren Bruun Hansen CEO, EnviDan International A/S


1.6

8

15

1.2

6

10

0.8

4

5

0.4

2

2013

2013

201 1

Revenue

Result before tax

Result after tax

mEUR

mEUR

mEUR

22.4

2.0

1.3

Number of employees Progress from 2009 to 2013

162 143

103

2009

114

2010

120

2011

2012

2013

2013

20

2012

10

2010

2.0

2012

25

201 1

PCT.

2010

Profit ratio

mEUR

2012

Result before tax

mEUR

2010

Revenue

201 1

Key figures


The EnviDan Group

Expectations for 2013/14

The EnviDan Group has positive expectations for the financial year 2013/14. We anticipate continued developments in our counselling activities and in the international activities, whereas we expect turnkey projects to decline compared to the previous year. Overall, the EnviDan Group expects revenue and profit to be in line with the financial year 2012/13, and we believe that our new business areas within Water Resources, Water Supply and Biogas will support the continued development. Moreover, we expect that our business lines within wastewater treatment plants and drainage systems will be strengthened by the political focus on environment, climate and intelligent rainwater solutions – both in Denmark and internationally. Integrated approach to the complete water circle We will continue to develop our core competencies across the organisation in order to ensure that we are increasingly able to deliver solutions within the entire water circle. To do this, we must continually listen to our customers and transform dialogue into the right solutions.

IT and web portal solutions Entering the 2013/14 financial year, our IT and web portal solutions were ready to launch as an independent business line in EnviDan A/S. Due to the web portal solutions we are able to accommodate many of our customers’ desire to consolidate their IT systems on a single platform. The area has great potential, which we hope will contribute to supporting our customers’ efficiency. The EnviDan Group has a strong competitive position with knowledgeable staff and a great customer dialogue. Thus, we believe that we will achieve our goals by 2013/14.

CSR Our responsibility The EnviDan Group has put social responsibility on our agenda. Corporate Social Responsibility (CSR) and the environment in particular is part of our DNA – we are an environmental company that sells environmental solutions, and we have been so from day one. Our success depends on whether we are able to create value for our customers. This does not only require technical expertise, but also the ability to think and act responsibly and to develop sustainable solutions that incorporate an integrated consideration for people, environment and economy. We now wish to systemise our many environmental and employee initiatives and have therefore begun to prepare a CSR strategy and a Code of Conduct.

In the financial year 2013/14, EnviDan will:

4

define a number of CSR goals and focus areas, which will guide our future CSR efforts. The targets will ensure that EnviDan’s continued growth does not come at the expense of employee welfare or the environment.

join the UN Global Compact, which means that we commit ourselves to submit an annual COP report (Communication on Progress) describing the progress we are making in relation to implementing the 10 principles in EnviDan.


IT solutions

Software ensures full digital overview

EnviDan has developed digital solutions since 2009, and we now offer a wide range of web-based software for water and wastewater management. The software solutions are based on standardised systems that can be adapted to suit each client’s needs. All solutions are characterised by user-friendliness, high uptime and a high level of data security. Through the EnviPortal, we have given all clients a single point of access to all our tools. EnviTronic EnviTronic is a web-based performance log, which provides utility companies within drinking water, wastewater treatment or district heating with a practical and useful tool that ensures the necessary overview of daily operations in an easy and fast manner. EnviTronic collects process data such as in-house analyses and SCADA values in one data­ base, and transform them into reports, green accounts etc. The system is web-based, specifically adapted to the needs of each plant, and minimises the workload by providing documentation and a constantly updated performance overview.

minimise chemical and energy usage. The advantage of EnviStyr is that it is simple and easy to access online, while the measuring points are numerous and detailed. KeyZones By managing and monitoring the entire water distribution networks, KeyZones can determine the origin of Non-Revenue Water, which in some parts of the world can reach 40-60 percent. KeyZones is a top of the line IT system that ensures the storage, quality assurance and data sharing of Non-Revenue Water information. The goal is to minimise Non-Revenue Water, whether caused by leakage, theft or uncertainty of measurements. KeyZones is tailored to suit each client’s needs, and thus provides in-depth reports on specific key performance indicators. All software solutions are specified on product sheets, which are easily found on EnviDan’s website.

EnviStyr Online control of wastewater treatment plants optimises the operation, streamlines the process, and reduces energy consumption. EnviStyr is a unique modular online management system that integrates with all SCADA systems and sets new standards for process control in wastewater treatment plants. The system monitors the plant’s values for e.g. oxygen, phosphorus and dry matter in order to modify the strain and

5


Reporting

EnviDan International A/S: Ready to reap the benefits

”We especially focus our sales budget on sewage purification in China as well as water supply in Southeast Asia, and we expect that the investment will result in more orders during the coming year.” Søren Bruun Hansen Managing Director, EnviDan International A/S

The Swedish subsidiary Purenova Miljöteknik AB came through the 2012/13 financial year with a surplus, whereas EnviDan International A/S and DanAqua ApS are still in the developing stages and focus on sales activities. DanAqua ApS is a joint venture between EnviDan International A/S and Water Centre South (The Water Utility of Odense in Denmark). We expect that more leads and tenders will become orders in the coming year, and we see a great potential in assisting especially Asian cities that wish to reduce their water loss throughout the distribution system. About EnviDan International A/S EnviDan International A/S was founded in 2008 as an umbrella company for the EnviDan Group’s international activities. Besides solving projects on their own, EnviDan International A/S is also the parent company of Purenova Miljöteknik AB in Sweden and DanAqua Holding ApS, which mostly operate in Southeast Asia with offices in Malaysia. EnviDan International A/S holds 61 percent of the shares of DanAqua Holding ApS, while the Danish water and wastewater company VCS owns the remaining shares.

EnviDan International A/S tEUR 2012 Revenue*

2013

211

525

Result before tax

-229

-237

Net profit

-188

-183

7

7

Number of employees * Revenue does not include turnover in subsidiaries

6

Exclusive agreement with SkyTEM EnviDan International A/S has signed an exclusive agreement in nine Southeast Asian countries with SkyTEM. SkyTEM has developed equipment for geophysical survey and mapping of underground layers and structures, which is done airborne from a helicopter. The purpose of these high-tech measurements is to process data, and then find the areas with the most likely occurrence of new groundwater resources. EnviDan International A/S has submitted a quote for mapping the subsurface of several locations in Southeast Asia. The survey can also be used for investigating minerals and geotechnical conditions. License to upgrade EnviDan International A/S has entered into a business agreement with a local Chinese company, which is now licensed to sell EnviDan products used to upgrade wastewater treatment plants. Through this collaboration, two plants have begun using EnviDan technology in 2012/13 – and another two are on the way. Many partnerships EnviDan International A/S and DanAqua Holding ApS also participate in jobs all around the world as subconsultants to other companies. For instance, EnviDan International A/S is the process supplier to the leading Danish contracting com­ pany Per Aarsleff A/S, and DanAqua Holding ApS is often asked by companies – such as the engineering consultancy company Grontmij – to teach how to operate water utilities.


Ullared, Sweden Wuwei, China

Hanoi, Vietnam

Case Reduction of Non-Revenue Water in the East In recent years, EnviDan has implemented several Non-Revenue Water projects (NRW) in Asia – including Thailand, Malaysia and most recently Vietnam. The water distribution system in Asian utility companies are often in very bad conditions and the water loss can be as high as 50 percent due to leaky pipes, faulty meters, poor materials or lack of maintenance. In comparison, the average water loss in Denmark is about 6 percent. Phase one in Hanoi completed In order to reduce NRW in Vietnam’s capital Hanoi, EnviDan International A/S has completed phase one of a NRW project on behalf of the Hanoi water supply.

Case Purenova provides technology to Swedish wastewater treatment plants

Case Upgrading wastewater treatment plants in the Gansu province, China

EnviDan International A/S’ Swedish subsidiary Purenova Miljöteknik AB has participated in the construction of a new wastewater treatment plant that handles wastewater from the Swedish city Ullared. Purenova has participated as a subcontractor to the project’s general contractor. In 2012/13, the project constituted a large part of Purenova’s turnover and was therefore instrumental in the company’s positive annual result.

In cooperation with our Chinese partner, EnviDan International A/S has been contractor on an upgrade of a wastewater treatment plant in the Gansu province in China. Following the upgrade, the plant now meets the new Chinese requirements for drainage quality on nitrogen and phosphorus. The wastewater treatment plant can process 45 million litres of water daily and is located in Wuwei – south of Inner Mongolia. EnviDan was responsible of design, online management as well as installation and commissioning of the plant. The chosen solution has previously shown good results at a pilot plant near Shanghai.

The delivered process solution contains, among other things, EnviDan’s manage­ ment tool EnviStyr, which makes it possible to monitor and manage the facility online. The tool improves energy efficiency and reduces the need to add chemicals and carbon in the wastewater basins.

EnviDan International A/S won the project in fierce competition with local companies. EnviDan’s solution was chosen because of the concept, which results in lower operating costs on chemicals as well as less energy costs due to the advanced online management. EnviDan completed the project in a record time of less than six months, and in May 2013 the finished plant was delivered to the customer’s satisfaction.

About a tenth part of Hanoi city was appointed as project area. EnviDan identified the extent of the problem and established opportunities to reduce the water loss, which reaches at least 35 percent. – EnviDan participated in a workshop with the local water supply authorities and other operators. We presented our idea for a NRW roadmap, which in two years will reduce NRW in the project area from more than 35 percent to 20 percent, says Jens Baadsgaard Pedersen, chief consultant in EnviDan Water A/S. A win-win project Even though the project will cost more than 6 million dollars, it pays for itself in 2-3 years due to reduced water loss. According to Jens Baadsgaard Pedersen, it is a project with many winners. – Not only will the project reduce water loss in Hanoi. It will also create jobs in Denmark because many Danish companies can contribute with software, components and knowhow, Jens Baadsgaard Pedersen elaborates. The project is carried out in close cooperation with, among others, Danish Water Services, the Danish Ministry of the Environment, and Denmark’s development cooperation Danida, who have participated with goodwill and financing.

7


The EnviDan Group is leading within innovative, environmental projects. Since 1995, our companies have specialised in planning, counselling and developing solutions to climate change, wastewater treatment and handling, water resources, water supply and biogas – in Denmark as well as abroad. Every day we work to create better health, a clean environment and customer value. We achieve this by constantly developing our solutions and our employees to match the market needs – and by offering our employees the optimal settings so that they can concentrate on creating strong results.

EnviDan Group Vejlsøvej 23 DK-8600 Silkeborg Telephone: Fax: Email:

+ 45 86 80 63 44 + 45 86 80 63 45 info@envidan.dk

www.envidangruppen.dk www.envidaninternational.com Board of managers CEO Morten Fjerbæk Manager Ole Munk Nielsen Manager Søren Bruun Hansen Board of directors Jan Tryk Søren Brønd Simon Boel Jens Baadsgaard Pedersen

EnviDan Highlights 2012-13  

In this publication we offer you highlights of the EnviDan Group's results and activities in 2012/13 as well as the Group's expectations for...