metal, electrical and infrastructure industries association

1

Metal, Electrical and Metal, Electrical and InfrastructureInfrastructure Industries Industries AssociationAssociation

November 2008

2

The Evolution of the Israeli Water The Evolution of the Israeli Water IndustryIndustry

• The Global Water Industry and the Israeli implication

• Changing the orientation - Phase I• Changing the orientation - Phase II• Recent results

3

The Global Water IndustryThe Global Water Industry

4

Huge & Growing Global Water MarketHuge & Growing Global Water Market

Global water intelligence, GE, Source: SAM

6-7%6-7%

10-12%10-12%

Med growth(utilities, basic infrastructure)

High growth )desalination, membrane, security(

Water marketExpected growth rates 2004-2008

8-9%8-9%

$500-600B

$400-450B

$300B

Sem

iconductor

$400B

Cellular

Water

IT

$600-650B

Global markets - size comparison:

TelecomE

quip.

Pharm

a

$200-250B

Biotech

$40B

$400B$400B

5

Water - Market SegmentsWater - Market Segments

65%

25%

10%

Infrastructure(Construction & management)

• Basic equipment (pumps, pipes)

• Construction

• Basic agriculture equipment

• Municipal water utility

management

B230-260$

B80-100$

B35-40$

400B$

Water Technologies

• Water Treatment (municipal, industrial)• Desalination and waste water treatment• Water monitoring and equipment control• Water security

Other

• Consulting and

engineering

• Residential

products

6

Changing the Orientation - Changing the Orientation - Phase IPhase I

7

Israel Water Industry by SectorsIsrael Water Industry by Sectors

Export activity),M 1000$(

45%

27%

13%

8%

8%

4% 2%

Irrigation and

Agricultural

projects & products

400

Valves &

Meters

190

Engineering &

Projects

115

Filters

70

Desalination

Pipes

70

30

Oth

ers

133%

27%

13%

8%

8%

7%

4%

New companiesNew companies Established Established companiescompanies)108 companies(

Water Purification

and Improvement

36

Wastewater Treatment

30

Flow & other control

14

Measurement & Analysis 9

Efficiency improvem

ent

8

Water security

7

Desalin

ation

4

8,000 Employees

8

Israel Water IndustryIsrael Water Industry -- Desalination, Desalination, Irrigation, Sprinklers, Filters, Valves, Irrigation, Sprinklers, Filters, Valves,

ControllersControllers..…..…

9

Changing the Orientation - Changing the Orientation - Phase IIPhase II

10

We have Changed the ParadigmWe have Changed the Paradigm

From From

““We require more – we construct We require more – we construct more”more”

To To

““We require more – we increase We require more – we increase efficiency”efficiency”

11

Israel: Already a Fertile Source of Israel: Already a Fertile Source of Innovative Water TechnologiesInnovative Water Technologies

Unique Position Unique Position Unique Position Unique Position

Global Leadership

Water reuse Desalination Irrigation

Water Management

Source: mia

12

Target SegmentsTarget Segments(B)$

Network Operators End Users

AgricultureResidentialIndustrialDistributionFresh

SourcesDesalinationWaste

Water

Eng. &Consulting

Construction

BasicInfrastructure

Flow control & management

QualityImprovement

EfficiencyImprovement

Management& Operations

Eq

uip

men

t & M

aterials

Services

CustomerActivity

Utility Operators

Engineering & Consulting

Pipes, Pumps, Valves

• Measurement • Control

• Monitoring• Security

• Treatment • Disinfection• Purification

• Use control• Reuse

• Leakage detection & minimization

• Rainfall• Outflow

• Membranes• Chemicals• Nano tech• Disinfection

Heavy treatment

HH efficiency

deviceLVI

PurificationFertilizationTreatment

Agr.

Mgnt.

Basic

Watering

In houseTransfer

POU, POE

Agr. Project

Solution

Providers

Constructors

Automation

Underground

Water

5-8 5

Desalination

Wa

ste W

ate

rp

roje

cts

220-25

12 40-45

5-8

3-5 5

Current

excellence

Future

challengesFV segments

13

Cooperation of all Sectors - NEWTech

Academic Water

Institutes

Government

(Chief Scientist,

Education, special

programs)

Industry

Dedicated CleanTech

VC Funds & Investments

NEWTechNovel Efficient Water

Technologies

Source: mia

14

Recent ResultsRecent Results

15

Israel - Water Start-Up Companies Israel - Water Start-Up Companies (~100)(~100)

Management, 15

Irrigation, 10

Treatment, 51

Desalination, 1

Trasnport, 6

Others, 18

16

Ionics

X20

Acquired by: Whitewater

Israel Water Industry- Latest Israel Water Industry- Latest TransactionsTransactions

Acquisitions in recent years- Global

2004-2006

X 21Acquired by: John Deere

~ X 20*Acquired by: Arison Group X 13

Acquired by: Milestones

Zenon

X22Acquired by: Elron (I.D.B)

(Multiplier EV \ EBITDA)

~X 15*Acquired by: Jain Irrigation

* Estimated

Everpure

X13Acquired by: Pentair

Acquired by: GE

17

Why the program will be a Why the program will be a successsuccess??

• Developed local market, with many years of experience and position as world experts

• Developed export oriented water industry • Entry of new players into the market • Israeli entrepreneurial spirit - capital raising

platform, know-how and experience, reputation

Expertise Entrepreneurship

18

Recommendation to our guests Recommendation to our guests from Italyfrom Italy

J O I N U SJ O I N U S