2010 update cleantech and environmental services€¦ · global cleantech investment from 2005 to...
TRANSCRIPT
2010 UpdateCleantech and environmental services
RemTech Workshop –October 20, 2010
© Deloitte & Touche LLP and affiliated entities.
Introduction
Spencer Ord, MBA, CBV• Manager of Edmonton Corporate Finance and Valuations practice• Deputy lead of national cleantech and environmental services practice• Responsible for providing
– Valuation for business, intellectual property, share ownership planning and tax planning purposes;
– Merger, acquisition, divestiture and partnering transaction support – Emphasis on environmental services and cleantechnology
Deloitte 2010 Update - Cleantech and environmental services1
© Deloitte & Touche LLP and affiliated entities.
Deloitte-SDTC Western Canada Cleantech Report –2010 Update on environmental services
2009• SDTC partnered with Deloitte in the spring of 2009 to co-author report• Report mandate covers the 4 western provinces (BC, AB, SK, MB)• Survey went out to approximately 150 “cleantech developers” as well as
several large “cleantech users”• Report on the state of the cleantech industry in Western Canada2010• 2010 report update with focus on environmental services
– Overview of cleantech industry– Environmental services and cleantech– Case studies
2 Deloitte 2010 Update - Cleantech and environmental services
© Deloitte & Touche LLP and affiliated entities.© Deloitte & Touche LLP and affiliated entities.
Cleantech overview
Deloitte 2010 Update - Cleantech and environmental services3
© Deloitte & Touche LLP and affiliated entities.
Global cleantech investment from 2005 to 2010
Deloitte 2010 Update - Cleantech and environmental services4
Source: Cleantech Group LLC
© Deloitte & Touche LLP and affiliated entities.
Breakdown of global cleantech VC investment in 1H 2010 ($USD) by subsector
5 Deloitte 2010 Update - Cleantech and environmental services
Environmental services~ $162mm / $4.2bn = ~4%
Source: Cleantech Group LLC
© Deloitte & Touche LLP and affiliated entities.
Breakdown of global cleantech VC investment in 1H 2010 (deal count) by subsector
6 Deloitte 2010 Update - Cleantech and environmental services
Environmental services35 / 347 = ~10%
Source: Cleantech Group LLC
© Deloitte & Touche LLP and affiliated entities.
Global cleantech IPOs by quarter
7 Deloitte 2010 Update - Cleantech and environmental services
Source: Cleantech Group LLC
© Deloitte & Touche LLP and affiliated entities.
Global cleantech M&A by quarter
8 Deloitte 2010 Update - Cleantech and environmental services
Source: Cleantech Group LLCSource: Cleantech Group LLC
© Deloitte & Touche LLP and affiliated entities.
Corporate investments in cleantech
9 Deloitte 2010 Update - Cleantech and environmental services
Source: Compiled by Deloitte using company releases, www.cleantech.com, Factiva search
© Deloitte & Touche LLP and affiliated entities.
Risk
Time
Opportunity
Brand protection
Brand differentiation
Brand enhancement
Cost inefficiencies
Cost efficiencies
Licence to operate
Build market share
RISK MANAGEMENTWhere many organisations start
Compliance & risk
managementStrategicadvantage
Managing for value
Sustainability and why it mattersCompanies respond to the sustainability challenge differently
BUSINESSOPPORTUNITY Where leading organisations are heading
Deloitte 2010 Update - Cleantech and environmental services10
© Deloitte & Touche LLP and affiliated entities.© Deloitte & Touche LLP and affiliated entities.
Cleantech and environmental services –survey themes and case studies
Deloitte 2010 Update - Cleantech and environmental services11
© Deloitte & Touche LLP and affiliated entities.
Engineering services valuation multiples
12 Deloitte 2010 Update - Cleantech and environmental services
Source: Compiled by Deloitte using Capital IQ.
© Deloitte & Touche LLP and affiliated entities.
Remediation and environmental services - outlook
13 Deloitte 2010 Update - Cleantech and environmental services
Source: IBISWorld Market Research and Deloitte estimates
© Deloitte & Touche LLP and affiliated entities.
Western Canada Cleantech Report – 2010 survey update on environmental services – findings summary
14
1. Cleantech spending– FY10 – modest increase, FY11 – major increase
2. Cleantech adoption method– Purchase of third-party products– In-house development– Technology in-licensing
Deloitte 2010 Update - Cleantech and environmental services
© Deloitte & Touche LLP and affiliated entities.
Western Canada Cleantech Report – 2010 survey update on environmental services – findings summary cont’d
15
3. Top reasons for adopting cleantech– (1) improved product quality, (2) improved ROI, (3) gov’t incentives
4. Are clients demanding cleantech? Why?– Yes. Driven by (1) government incentives, (2) public image and
environmental conscience.
5. Top reasons for not pursuing cleantech– (1) Poor ROI, (2) Insufficient gov’t incentives, (3) Unproven tech
Deloitte 2010 Update - Cleantech and environmental services
© Deloitte & Touche LLP and affiliated entities.
Case study #1: McMillan McGee and ET-DSP technology
16 Deloitte 2010 Update - Cleantech and environmental services
Apartment Floor
Fill
2m
7m
Heated Zone
Coarse Grain with Silt Lenses
X-WellX-Well ElectrodeElectrode
6 to 7m
Groundwater
Benzene (0.3 ppm)
© Deloitte & Touche LLP and affiliated entities.
Case study #1: McMillan McGee and ET-DSP technologycont’d
17
• Winner of Deloitte Green 15 award
• ET-DSP technology - recently awarded $6.9 million from CCEMC
• Funds to be used by E-T Energy – subsidiary of McMillan McGee, to demonstrate application of ET-DSP tech in oilsands production
• Good example of the role of gov’t incentives in driving cleantech development and adoption in remediation and related industries
Deloitte 2010 Update - Cleantech and environmental services
© Deloitte & Touche LLP and affiliated entities.
Case study #2: Wavefront Technology Solutions
18 Deloitte 2010 Update - Cleantech and environmental services
Primawave is an injection technology developed
to improve fluid distribution in porous media
••••••••••
139 s 139 s
Conventional Injection
Poor remedial fluid distribution.Considerable bypassed contaminant.
Primawave Injection
Superior remedial fluid distribution.Vast majority of the contaminant contacted.
••••••••••
OilWater
OilWater
© Deloitte & Touche LLP and affiliated entities.
Western Canada Cleantech Report – 2010 survey update on environmental services – recap
19
1. Cleantech spending expected to accelerate for env. services
2. Cleantech adoption method involves outright purchase, in-licensing or in-house development
3. Cleantech adoption happens primarily when there is a evidence ofROI-enhancement and / or available gov’t incentives
4. Clients of environmental services companies are demanding cleantech to take advantage of gov’t incentives, and improve public image
5. Cleantech adoption is typically avoided where there lacks a business case for improved ROI, insufficient gov’t incentives and unproven tech
Deloitte 2010 Update - Cleantech and environmental services
Questions?
• Deloitte, a leading professional services firm, offers clients a broad range of fully integrated services in areas that include accounting, assurance and advisory, tax, risk management, business, financial, and human capital consulting.