Envac invented the automated waste collection system in 1961 and has since become the global leader in this industry with over 700 installations in 30 countries. To develop global markets, Envac uses fully owned local sales companies and focuses on areas with high urbanization and waste volume growth. Key success factors include ensuring the product is a good fit for local conditions, projects are financially justified, and establishing a strong local presence. Envac's experience in China highlights the importance of high-level contacts, local staff, and adapting products to local quality standards and costs.

1. Globalisering av en
svensk miljöinnovation
Christer Öjdemark
13:e oktober 2011

2. Globalisation of …..
The Envac internalisation process
2

3. ….. a Swedish clean-tech invention:
Envac invented the automated waste collection system in 1961
3

4. Traditional Waste Handling
”State-of-the-art collection in Paris 1950”

5. Traditional Waste Handling
Still the same
principle

6. Traditional Waste Handling

7. We eliminate the waste trucks and the waste bins!
We see our system as a utility and a part of urban infrastructure

8. Global leader in automated waste collection
Global market share >75% during last 50 years
>700 installations in 30 countries and 35 offices in 20 countries…
8

9. Some milestones
• 1961: Envac built first system in the world
50 years 11th October 2011
• 1971: Disney World Orlando
• 1975: Roosevelt Island New York
• 1992: Olympic Village Barcelona
• 1996: Yongin Suji, Seoul
• 1998: Word EXPO Lisbon
• 1999: Hong Kong HA standardize in ARCS
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10. Some milestones
• 2000: Hammarby Sjöstad, Stockholm
• 2003: 101 Financial Tower, Taipei
• 2005 Jumeriah Beach Residence, Dubai
• 2006 Jin-sha-zhou, Guangzhou, China
• 2007 Hac Sa Wan, Macau
• 2008 Wembley New City, London
• 2009 Kimpo New Town, Korea
• 2010 KAFD Riyadh Saudi Arabia
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11. Key business drivers
• Increasing urbanization
– > 50% live in cities and increasing ≈1% per year
– 60 millions moving in to urban areas every year
– 15 millions only in China (≈ 60.000 in Sweden)
• Increasing waste volumes
– in developed countries: 1-2% per year
– in developing countries: 5-10 % per year
• Increasing demand for source separation.
– EU packaging directive 1995
– EU landfill directive 1999
– Recycling of paper and plastics now a global trend

12. Key business drivers
• Increasing demand for sustainable solutions
– need for low energy solutions with lower CO2 – emissions.
– reduce traffic in inner cities – lower emissions – no night collections
– better hygiene – littering – noise – smell – animals (rats, ect)
• Demand for improved working conditions
– new work laws and regulations, especially in Nordic countries
• “Climate change” debate
– waste is on the political agenda.
– 3-5% of global CO2 –emission, from waste management activities
– could instead become a net reducer by applying modern technologies

13. You have to be unique to get success!
Our unique selling points
A sustainable solution
Environmentally, socially and economically
• Reduced emissions and traffic
• Supports separation at source
• Silent, clean and hygienic technology
• Improved living standard
A rational solution
• Fully automated system
• 100% availability for waste disposal
• Lower Life Cycle Cost
• Releases valuable space

14. How to develope a global business?
Traditional internationalisation

15. How to develope a global clean-tech business?
Characteristics: Challenges:
• Swedish environmental companies are • Limited personal & financial resources
SME’s. and export experience
• New markets are not the traditional • Higher risk taking to go to China, Brazil,
Industrial markets. India ect.
• Customers are often local governments. • Corruption, networking capacity
• Large content of services, systems, • The traditional sales channels with
knowhow ect. agents, distributors are not optimal.

16. The Envac Internationalisation process
Market channels:
• Direct sales: Export ad-hoc sales from 1971 to 2003 to many markets in
Europe, North America, South America, Middle East, Asia.
• Started Sales company in Germany in the 80:ies.
• Licensing technology to several Japanese companies in the 80:ies,
Mitsubishi, Hitachi, NKK.
• Agents / distributors: In several markets in the 70-90:ies without any
success.
• J/V with local partners in Holland 2000: Bad experience .
• Acquisitions & Mergers: No candidates available
• Strategy since 2003; Fully owned sales companies.

17. Envac Group
Envac AB
Region Southeast Asia Region Middle East Region South Europe
Region South Korea Region North Europe
and China and India and Americas
Envac Far East, Hongkong Envac Korea Co. Ltd Envac Dubai Envac Scandinavia, Envac Iberia, Spain
Sweden
Envac Macau Envac Qatar Envac France
Envac Optibag, Sweden
Envac Environmental Envac Abu-Dhabi
Envac Denmark Envac Italy
Technology, Shanghai
Envac India
Envac Environmental Envac Portugal
Envac Norway
Technology, Beijing
Envac Brazil
Envac Environmental Envac U.K.
Technology, Tianjin Envac Canada
Guangzhou Envac Envac Finland
Environmental Technology, Guangzhou – 65%
Centralned b.v.,
Envac Singapore Holland (33%)
Envac Malaysia

18. Select and develop new geographical
markets
Success factors
• Market condition fits the product.
• High level of new construction
of residential buildings.
• Projects are financially justified.
• Strong local presence.

19. Key success factors to develop a new market.
Starting Points Next Step
 Customer  Build a
Project
interest Market volume strong local
Product fit the market financial
 Market on potential organisation
justification
priority list
 Pilot project
Description • How does our • Construction • Determine the
product fit the market for cost benefits for
specific residential the customers
conditions on buildings? – Pay-back time
the market? – Alternative cost
• Collection
– Fractions – Increase of value of
market? buildings
– Customers
– Value for free space
– Competitors • Market for
– Legal aspects
• Financing of
special
– Structure of projects?
applications?
collecting market
– Political attitudes • Economical
(top-down
approach) situation in the
– References market?

20. Key success factors to develop a new market.
High volume of Project financial Build a strong local
Product fit the market
residential construction justification organisation

21. Systems business characteristics
The offering
• A business with
– high growth potential
– high profit margin potential
– moderate entrance and exit barriers
– often scattered and weak competition
Technical Review Commercial Review
Partners
Calculus
Implementation
Technical
solution
Contract/
Customer
• A very complex and high risk business, 100% uncertainty
(if not properly controlled and managed) 0% uncertainty
0% uncertainty
100% uncertainty
Competitive position
22

22. Tacit knowledge/technology
Knowlege Structured Tacit
Components, pipes,
Visible exhausters, PLC, compressors
…………. x
DMS, Envac Academy, EAP2.0, Experience in: design,
Fan calc, Erosion calc, LDT, software, installations, after-
Hidden Design Centre ……. sales service, applications,
materials, source
separation, vacuum
technology, International
differences.......
23

23. Tacit knowledge/technology
• During the introduction phase (years 1-5) on a new market
we are trying to reduce the complexity of the technology,
and we do not talk about this knowledge.
• When local companies are starting to compete with us,
they have no understanding of the tacit knowledge and
thereby underestimate the complexity and difficulties.
• Most of them fail in the first installations and thereby create
bad image for our technology.

24. The SymbioCity Concept
A Swedish Partnership Initiative between the Swedish Government and
Swedish companies:
The Swedish experience Integrated planning Scalable solutions
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25. The model for SymbioCity is Hammarby Sjöstad
The Envac concept:
• Source separation of waste
• Waste-to-Energy - District Heating
• Organic - Biogas
• Dry recyclables - Recycling
The Hammarby model
• Reduced heavy traffic
• Reduced CO2 footprint
• Reduced noise level
• Improved air quality
• Increased building density
• Less space needed for waste handling
• More green areas and pedestrian zones
• Improved quality of life
• Improved working conditions
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26. To develope a global system business?
What can the authorities do to support us?
• Reference installations.
– ex. Hammarby Sjöstad, Bo01, Norra Djurgårdsstaden
• Networking support from politicians (national & local) to open doors.
– ex. SymbioCity, CENTEC in China
• Project financing.
– ex. SEIF (Swedish Export Infrastructure Fund)
• Less fragmentation of official support.
– ex. Exportrådet – Invest Sweden
• Use Sida funds to invest/buy reference projects in developing countries
from Swedish companies.

27. Conclusions: Key success factors for Envac
The offering
 Turnkey solution and full service
Process
 Manage risk:
- standardization
- structure tacit knowledge
- internal networking and knowledge sharing
Distribution
 Own sales / production companies:
- local employees
- full ownership/management control
Manufacturing
 No production

28. 2004 – 2011 - 2015
Envac Group
7000
6000
5000
4000
ORDERS
MSEK RECEIVED
REVENUES
3000
Order Backlog
2000 Earnings
1000
0
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
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30. The China
challenge
GDP development
China
OECD

31. Envac structure in China
Envac Hong Kong (Regional office for Southeast Asia&China) 1998
Envac Shanghai Environmental Technology Co. Ltd 2004
Envac Beijing Environmental Technology Co. Ltd 2005
Guangzhou Envac Environment Technology Co. Ltd 2005
- J/V (Envac 65% / Guangri 35%)
Envac Macau Ltd 2006
Envac Tianjin Environmental Technology Co. Ltd 2009

32. Why are Envac in China?
1. The worlds largest potential market.
– Construction of apartments in China is 6-8 millions per year (50% of global
production of apartments - Sweden produces 10-20.000 per year)
– China is eager to adopt new technologies.
– Environmental protection is a focus area for the government in the new 5-year plan.
– Swedish environmental technology has a very high reputation and image in China.
2. Purchase components at low cost.
– A prerequisite to be competitive in China market.
– Lower our production costs to increase our global competitiveness.

33. Experiences from China
• Contacts on high level is incredibly important. Difficult to achieve, takes
long time and decision makers are constantly changing. CENTEC + JUNO
• Important to have local Chinese personal and an environment to keep key
people in the company.
• Project execution is much faster then in Europe.
• Quality mind set is often low and decision making is often short term based.
• Corruption exists and is difficult to handle, with Swedish ”code of conduct”
• Necessary to adopt products to local conditions and cost levels. To sell
European standard is not possible, when you get local competition.

34. The owner
The Stena Sphere 2010
Six business areas
Total turnover: US$ 7.800 million
EBT: US$ 530 million
No of employees: 19 000
(Investments in several listed companies)

35. The business areas within the Stena Sphere
Ferry operations Offshore drilling
Turnover SEK 10,3 billion Turnover SEK 6,1 billion
No of employees 5 800 No of employees 968
Property Shipping
Turnover SEK 4,7 billion
Turnover SEK 2,1 billion
No of employees 7937
No of employees 262
Stena Metall
New Business
Turnover SEK 28,6 billion
Turnover SEK 3,7 billion
No of employees 2 800
No of employees 1791
5. The Stena Sphere