Waste Management and Recycling Market Update

Waste Management and Recycling
Market Update Q3 2013

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1
E-Waste
Solid Waste
Collection
Specialty Waste
Hazardous
Recycling
Solid Waste
Disposal
Specialty Waste
Industrial
Waste Management and Recycling
Sector Overview
HW&Co. understands the key trends and dynamics driving the waste management and
recycling (WMR) sector.
Waste-to-Energy
(WtE)
Recycled Content
Specialty Waste
Medical
2
Public Markets Update
Data as of October 29, 2013.
Source: S&P Capital IQ.

Data as of October 29, 2013.
Source: S&P Capital IQ.
Comparable Company TEV/LTM EBITDA (Oct. 2008 Oct. 2013) Trading Statistics (TEV/LTM EBITDA)
TEV/EBITDA Current Trading Performance
Diversified Waste
Management and Recycling
Waste management and recycling comparables are trading at a 3.2% discount to the S&P 500
but 19.4% above their five-year median.
Solid Waste Management
and Recycling
Recycled Materials
Waste-to-Energy
S&P 500
9.8x 5.4x 8.4x 8.0x 9.7x
Specialty Waste
All Waste Management and
Recycling Comps
14.6x 5.8x 7.8x 7.6x 8.9x
10.5x 5.6x 8.6x 8.4x
31.6x 3.2x 6.7x 7.5x 16.6x
11.0x 3.8x 7.4x 6.7x 9.5x
9.7x 5.7x 8.1x 9.6x
9.9x 5.8x 8.5x 8.4x
5-Year Min. & Max. 3-Year Median 5-Year Median Current
8.6x
8.9x
9.5x
9.6x
9.7x
9.9x
10.6x
16.6x
0x 5x 10x 15x 20x
Metals Processing
and E-Waste
Waste-to-Energy
Diversified Waste
Management and Recycling
S&P 500
All Waste Management
and Recycling Comps
Recycled Materials
Solid Waste Management
and Recycling
Specialty Waste
2x
4x
6x
8x
10x
12x
Oct-08 Oct-09 Oct-10 Oct-11 Oct-12 Oct-13
Waste Management and Recycling S&P 500
Metals Processing and E-
Waste
12.3x 7.4x 10.3x 10.0x 10.6x
3
August October November November
26 7 14 21 28 4 11 18 25
$30,000
$25,000
$20,000
$15,000
$10,000
$5,000
$0
Enterprise
Value
($ in mm)
Q3 2013 Earnings Release Calendar
Oct. 29
Nov. 7
Oct. 24
Oct. 17
Oct. 29
Aug. 29
Oct. 31
Oct. 23
Oct. 22
Oct. 24
Nov. 6
Nov. 5
Nov. 7
4
Earnings Update
Q3 2013
Half way through the Q3 2013 earnings season, the overall waste management and recycling
sector has experienced positive performance over prior periods.
Q3 2013 Earnings Update
Company Ticker Release Date Location Key Observations
LTM Revenue: $466 Y-o-Y: 1.7%
LTM EBITDA: $79 Y-o-Y: (7.0%)
LTM Net Income: ($46) Y-o-Y: (44.6%)
LTM Diluted EPS: ($1.24) Y-o-Y: (60.0%)
LTM EBITDA: $12 Y-o-Y: 5.6%
LTM Net Income: $2 Y-o-Y: (30.1%)
LTM Diluted EPS: $0.09 Y-o-Y: (41.5%)
LTM Revenue: $1,892 Y-o-Y: 18.8%
LTM Net Income: $182 Y-o-Y: 13.1%
LTM Diluted EPS: $1.47 Y-o-Y: 9.0%
NasdaqGM:HCCI 10/17/2013 Elgin, IL
The Woodlands, TX
NasdaqGS:CWST 8/29/2013 Rutland, VT
Q3 2013 Performance
NasdaqGS:SRCL 10/23/2013
NYSE:WCN 10/23/2013
Lake Forest, IL
Casella continues to see the same recessionary trends
in the business and the weak regional economy that
has plagued the company all fiscal year.
Casella made progress on improved pricing of
collections, integrating the BBI acquisition, and
closure of Maine Energy.
Revenue, EBITDA and free cash flow met or
exceeded the upper end of WCNs expectations.
Volume once again exceeded expectations at over
2% in the quarter, with continued broad-based
disposal activity and the addition of R360 driving
another quarter of double-digit year-over-year
increases in solid waste landfill volumes.
Stericycle closed 17 transactions in the third quarter,
totaling $60 million in revenue and maintains a
pipeline of opportunities worth $100 million.
This increase in customer base provides a long-term
growth platform for selling multiple services that
can more than triple the customers' revenues.
Growth in revenue was aided by HCCIs ability to
continually add new customers serving 93,000
individual customer locations from 74 branches.
Improved efficiency of HCCIs used oil collection
routes and its transportation in the Oil Business
during the third quarter.
5
LTM EBITDA: $3,070 Y-o-Y: 20.0%
LTM Revenue: $1,643 Y-o-Y: (0.1%)
LTM EBITDA: $418 Y-o-Y: (3.0%)
LTM EBITDA: $3,400 Y-o-Y: 2.3%
ENXTPA:SEV 10/24/2013 Paris, France
TSX:BIN 10/24/2013 Ontario, Canada
NYSE:CVA 10/24/2013 Morristown, NJ
NYSE: WM 10/29/2013 Houston, TX
NasdaqGS:ECOL 10/29/2013 Boise, ID
Earnings Update (cont.)
Q3 2013
Company Ticker Release Date Location Key Observations Q3 2013 Performance
In the third quarter, Progressive delivered its highest
organic revenue improvement of the past five years.
This growth reflects a continuation of the higher
construction and demolition volumes that it
experienced in the second quarter this year, which
have continued to date.
Acquired a 1,050-ton-per-day Energy from Waste
facility in Camden, NJ for $49 million, which was
immediately accretive.
Energy sales were lower than expected not because
of its production but because of a couple of unusual
circumstances related to customers' inability to take
its steam and electricity.
Suez expects its European waste volumes to drop
3% for 2013E, but expects stabilization in 2014P.
Suez continues to close sites in Europe to restructure
its waste division the company shut 13 additional
sites in Q3 2013.
Q3 2013 Earnings Update
Strong results were driven by WMs continued focus
on increasing revenue growth from yield gains and
controlling costs.
Margins expanded despite continued headwinds
confronting WMs recycling and waste-to-energy
businesses and modestly lower volumes.
Treatment and Disposal revenue grew at 10% over
prior year levels, attributed to continued strength of
its project-based work or Event Business.
Its Event Business grew 23% during the quarter, led
by growth in the commercial sector, which offset
U.S. Ecologys softness in the government sector.
6
Overall M&A Activity
Global Waste Management and Recycling Middle Market M&A Volume
1,2
For the Quarters Ended Q1 2007 Q3 2013
2007 2009 2010 2011 2012 2008
All M&A: 1,711
WMR M&A: 10
All M&A: 1,847
WMR M&A: 21
All M&A: 1,421
WMR M&A: 11
All M&A: 1,795
WMR M&A: 15
All M&A: 1,979
WMR M&A: 14
All M&A: 1,797
WMR M&A: 12
All M&A: (23.1%)
WMR M&A: (47.6%)
All M&A: 26.3%
WMR M&A: 36.4%
All M&A: 10.3%
WMR M&A: (14.3%)
Sources: Thomson Financial SDC database, S&P Capital IQ
(1) Includes transactions between $50 million and $1.5 billion in enterprise value.
(2) Excludes minority purchases, acquisitions of remaining interest, self-tenders and repurchases.

M&A volume across the waste management and recycling sector has been generally in line with
the broader market despite some year-to-year variations.
Rebound in volume
after sluggish 1H.
All M&A: 7.9%
WMR M&A: 110.0%

All M&A: (9.2%)
WMR M&A: (14.3%)
0
1
2
3
4
5
6
7
8
9
10
1Q07 2Q07 3Q07 4Q07 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13
7
Metalico Neville /
Metalico
OmniSource Southeast /
Steel Dynamics
Allied Waste Industries /
Republic Services
EnviroServ Holdings /
Absa Capital Private Equity
Harold Lemay Enterprises /
Waste Connections
Indeck Maine Energy /
Covanta Holding
Republic Services, Certain Assets /
Waste Connections
Swire SITA Waste Services/
Suez Environnement Company
Potrero Hills Landfill /
Waste Connections
Clean Harbors Industrial Services Canada /
Clean Harbors
MedServe /
Stericycle
Veolia ES Waste-to-Energy /
Covanta Holding Corporation
Sanipac /
Waste Connections
Waste Services /
Progressive Waste Solutions
Greenstar Environmental /
Biffa Group
US Liquids of Louisiana /
R3 Treatment
Seaway / US Ecology
WSN Environmental Solutions /
Suez Environnement Company
Healthcare Waste Solutions /
Stericycle
Griffin Industries /
Darling International
EnGlobe /
ONCAP
Intechra Group /
Arrow Electronics
Touchstone Wireless Repair and Logistics /
Brightpoint
Interstate Waste Services, Certain
Assets / Action Environmental
FCR and Blue Mountain Recycling /
HarbourVest Partners
Choice Environmental Services /
Hudson Valley Waste Holding /
Waste Connections
Oakleaf Waste
Management /
Waste Management
Alaska Pacific Environmental
Services Anchorage / Waste Connections
Palko Environmental /
Gibson Energy
Energy Products of Idaho /
Outotec
WCA Waste Corporation /
Macquarie Infrastructure Partners
ECS Refining /
All Metals
Thermo Fluids /
Nuverra
Veolia ES Solid Waste, US Operations /
Advanced Disposal Services
Badlands Energy /
Nuverra
R3 Treatment /
Waste Connections
Choice Environmental Services /
Covanta Delaware Valley /
Covanta
EnergySolutions /
Energy Capital Partners
EnviroWaste Services / Cheung Kong
Infrastructure Holdings
Greenstar / Waste Management
Caraustar Industries /
H.I.G. Capital
Befesa Medio Ambiente /
Abengoa
Met-Pro / CECO Environmental
May Gurney / Kier Group
Synagro Technologies /
EQT Partners
Proactiva Medio Ambiente /
Veolia Environnement
AVR /
Cheung Kong (Holdings)
Evergreen Oil / Clean Harbors
ecoATM / Outerwall
Oilfield Water Lines /
NGL Energy Partners
Terra Renewal Services /
Darling International
Rothsay /
Maple Leaf Foods
Siemens Water Technologies, Two Oil Waste
Treatment Units / FCC
Metal Management /
Sims Metal Management
Waste Industries USA /
Goldman Sachs
Oakleaf Waste Management /
New Mountain Capital
PSC Metals /
Icahn Enterprises
Evergreen Tank Solutions /
Odyssey Investment Partners
Allied Waste Industries Inc., Solid Waste Landfill
and Collection Assets / Veolia ES Solid Waste
Rizzo Environmental / Kinderhook Industries
Teleplan International /
Gilde Buy Out Partners
JWC Environmental / Windjammer Capital
RiverRoad Waste Solutions / Charterhouse Equity
Clover Technologies Group /
Golden Gate Capital
Summit Energy & Liquid
Logistics / Waste Management
Liberty Tire Services /
American Securities
GFL Environmental / Roark Capital Group
Waste Pro USA /
Roark Capital Group
Jan-07 Jan-08 Jan-09 Jan-10 Jan-11 Jan-12 Jan-13 Jan-14
Key M&A Activity
The waste management and recycling sector has seen significant investment activity from both
strategic and financial buyers over the last several years.
Notes:
(1) Size of circle represents relative transaction value.
(2) Includes WMR acquisitions between 2007 and YTD 2013 with reported and estimated transaction values above $50 million.
(3) Proactiva Medio Ambiente / Veolia Environnement is a pending transaction.

Strategic Deals Private Equity Deals Enterprise Value N/A
0 Transactions
1-2 Transactions
3-4 Transactions
4+ Transactions
Quarterly
Heat Map
8
Sub-Sector Overview
Sub-Sector Key Observations Sentiment
Rising population and increased manufacturing due to the economic recovery have
pushed waste generation in the U.S., growing at a 1.9% CAGR from 243.6 million tons
in 2009 to 262.7 million tons in 2013E.
MSW generation per person has steadily increased from 2.68 pounds per person per
day in 1960 to 4.4 pounds per person per day in 2011.
Waste collection services revenue is expected to increase at a 2.3% CAGR from $47.1
billion in 2012 to $51.6 billion in 2016P.
Positive momentum marks the trajectory of the waste management and recycling sub-sectors.
Solid Waste
Collection
Recycling
Solid Waste
Disposal
Despite the increase of waste generated in the U.S., the increase in recycling rates has
lead to the steady decline in the number of landfills from 7,924 in 1988 to 1,908 in
2010, but recent trends show an increase in size of landfills as older, less efficient
landfills are replaced by larger, more efficient facilities.
Disposal of waste to a landfill has decreased from 90% of the amount generated in
1980 to under 65% of MSW in 2011.
Waste treatment and disposal services revenue in the U.S. is estimated to grow at a
3.3% CAGR from $16.0 billion in 2012 to $18.3 billion in 2016P.
Alongside evolving consumer preferences and regulatory changes, technological
advancements like single-stream recycling and all-in-one mixed-waste processing
have helped grow recycling and material recovery rates.
The recycling rate in the U.S. has increased from less than 10% of MSW generated in
1980 to close to 35% in 2011, indicating an increase in infrastructure and market
demand for recycling.
U.S. recycling facilities revenue is estimated to grow at a 4.0% CAGR from $5.6
billion in 2012 to $6.5 billion in 2016P.
9
Sub-Sector Overview (cont.)
Large waste management businesses have begun to diversify their traditional business
models by acquiring companies in specialized waste services industries, including oil
and gas.
Global industrial waste recycling and services market is expected to grow at a 10%
CAGR from 2012 to 2016P.
Oil and gas companies are expected to increase environmental, health, and safety
(EHS) spending by 60% from $35 billion in 2011 to $56 billion in 2030P, driving
demand for industrial waste solutions.
Specialty
Waste
Industrial
Specialty
Waste
Hazardous
Hazardous waste generation trends have fluctuated between 2001 and 2009, but the
amount generated has roughly stayed constant while the portion of waste that was
disposed of increased by 2.1 million tons.
The oil & gas, petrochemical, and manufacturing renaissance is driving increased
demand for hazardous waste services.
The growth of new industries like e-waste recovery and solar energy will also help to
grow hazardous waste collections in the U.S. as new types of waste are classified as
hazardous.
E-Waste
More than half of the United States has some form of e-waste regulation or disposal
ban enacted, with many still considering laws.
Due to the growing adoption and shorter lifecycles of electronics, the Consumer
Electronics Association estimates Americans own approximately 24 electronic products
per household.
The global e-waste recycling market is expected to grow from $10.0 billion in 2012 to
$18.0 billion in 2017P, representing a 12.5% CAGR.
10
Sub-Sector Overview (cont.)
Specialty
Waste
Medical
Proper disposal of medical waste is imperative to reduce the risk of cross contamination
and the spread of infection currently over 90% of medical waste in incinerated to aid
this effort.
U.S. EPA regulates the air emissions for medical waste incinerators and in May passed
amendments aimed at further minimizing emissions.
The U.S. medical waste management market is expected to grow at a 5.4% CAGR from
$3.1 billion in 2013E to $4.0 billion in 2018P, driven by the growing demand of the
pharmaceutical industry and the aging population.
Recycled
Content
Nearly 170 million tons of annual building construction, renovation, and demolition
derived wastes account for nearly 60% of the nations non-industrial, non-hazardous
solid waste generation.
The sustainable building materials industry is expected to grow at a 17.6% CAGR from
$21.0 billion in 2012 to $40.0 billion in 2016P, driven in part by the implementation of
LEED v4.
Demand for post-consumer plastic is expected to rise 6.5% per year to 3.5 billion
pounds in 2016P.
Waste-to-
Energy
Current challenges in waste management, including unsustainable landfilling, methane
gas emissions, growing waste volumes, and lack of space, are fueling the growth in the
WtE market, which is expected to reach $7.4 billion in 2013.
While the U.S. is making strides in growing its WtE market, in 2011 only 11.7% of
municipal solid waste was used to create energy as opposed to the E.U. where 22.0%
went to create energy.
The global WtE market is expected to grow from $6.2 billion in 2012 to $29.2 billion
in 2022P, representing a 16.8% CAGR.
11
Sub-Sector Review
Solid Waste Collection
Solid Waste Collection News
Rising population and increased manufacturing due to the economic
recovery have pushed waste generation in the U.S., growing at a
1.9% CAGR from 243.6 million tons in 2009 to 262.7 million tons
in 2013E.
MSW generation per person has steadily increased from 2.68 pounds
per person per day in 1960 to 4.4 pounds per person per day in 2011.
Organic materials continue to be the largest component of MSW
with paper and paperboard accounting for 28% and yard trimmings
and food waste combined accounting for 28%.
Recent technological advancements like single-stream recycling and
all-in-one mixed-waste processing have catered towards consumer
preferences and helped grow collection rates.
Waste collection services revenue is expected to increase at a 2.3%
CAGR from $47.1 billion in 2012 to $51.6 billion in 2016P.
$41.7
$44.5
$47.1
$48.3
$49.6
$50.6
$51.6
$30
$35
$40
$45
$50
$55
2010 2011 2012 2013E 2014P 2015P 2016P
U.S. Waste Collection Services Revenue
2010 2016P

($ in billions)
Source: IBIS World.
Bloomberg is leading New Yorks
move into separated food waste
collection, and just announced it
will reach up to 100,000 households
by 2014.
GreenBiz
NYCs Business Integrity Commission
has proposed a 15% increase in the
citys rate cap for commercial waste
haulers, which would be the first rate
increase since 2008. Waste Age
2012-2016P
CAGR: 2.3%
Sentiment
247.3
249.7
254.6
255.4
251.3
243.6
249.9
255.5
258.2
262.7
230
235
240
245
250
255
260
265
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013E
Historical U.S. Solid Waste Generation
2004 2013E

(Million Metric Tons)
2009-2013E
CAGR: 1.9%
Source: IBIS World.
In its efforts to privatize waste
collection services, Detroit is looking
to establish a five-year agreement to
expand single-stream recycling
collection across the city. Waste &
Recycling News
12
$15.2
$15.6
$16.0
$16.4
$17.0
$17.7
$18.3
$13
$14
$15
$16
$17
$18
$19
2010 2011 2012 2013E 2014P 2015P 2016P
7,924
6,326
5,386
3,558
3,091
2,314
1,967
1,767 1,767 1,754 1,812
1,908
0
2,000
4,000
6,000
8,000
10,000
1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010
Sub-Sector Review
Solid Waste Disposal
Solid Waste Disposal News
Despite the increase of waste generated in the U.S., the increase in
recycling rates has lead to the steady decline in the number of
landfills from 7,924 in 1988 to 1,908 in 2010, but recent trends show
an increase in size of landfills as older, less efficient landfills are
replaced by larger, more efficient facilities.
Disposal of waste to a landfill has decreased from 90% of the
amount generated in 1980 to under 65% of MSW in 2011.
Food waste, which accounted for approximately 15% of MSW in
2011, represents a significant opportunity in the solid waste market
as its applications for waste-to-energy fuel and composting materials
are further utilized.
Waste treatment and disposal services revenue is estimated to grow
at a 3.3% CAGR from $16.0 billion in 2012 to $18.3 billion in
2016P as the population rises, manufacturing rebounds from the
economic recovery, and the WtE market continues to grow.
U.S. Waste Treatment & Disposal Services Revenue
2010 2016P

($ in billions)
Source: IBIS World.
Tipping fees at America's
landfills are inching higher, but
only enough to keep pace with
inflation, according to a new
survey from Waste & Recycling
News.
Waste & Recycling News
The amount of out-of-state solid waste that
ended up in Virginia one of the top states
for importing waste fell about 3.4% in
2012. Waste & Recycling News
North Carolinas governor signed a bill
that loosens environmental regulations
for landfills and an executive order
allowing local officials to protect against
any leaks from waste trucks. Waste
Age
2012-2016P
CAGR: 3.3%
Sentiment
Number of U.S. Landfills
1988 2011

1988 2011
CAGR: -6.0%
Source: U.S. EPA.
Landfill emissions of methane fell
30.3% from 1990 to 2011, partially
attributed to a 21% decrease in the
disposal of compostable materials
and an increase in the amount of
landfill gas that's being collected.
13
$5.1
$5.4
$5.6
$5.9
$6.2
$6.2
$6.5
$3
$4
$5
$6
$7
2010 2011 2012 2013E 2014P 2015P 2016P
Sub-Sector Review
Recycling
Historical U.S. Waste Stream Trends
2010 2016P

($ in billions)
U.S. Recycling Facilities Revenue
Recycling News
While the amount of municipal solid waste has steadily increased
since 1960, Americans have shifted to recycling their waste.
An example of this shifting consumer preference is the increase in
curbside recycling programs from 8,875 in 2002 to 9,800 in 2011.
The recycling rate in the U.S. has increased from less than 10% of
MSW generated in 1980 to close to 35% in 2011, indicating an
increase in infrastructure and market demand for recycling.
U.S. recycling facilities revenue is estimated to grow at a 4.0%
Alongside evolving consumer preferences and regulatory changes,
technological advancements like single-stream recycling and all-in-
one mixed-waste processing have helped grow recycling and
material recovery rates.
1960 2011

94% 93%
90%
84%
71%
65%
6%
7%
10%
16%
29%
35%
0%
20%
40%
60%
80%
100%
0
50
100
150
200
250
300
1960 1970 1980 1990 2000 2011
MSW Waste Generated % Discarded to Landfill % Recycled
The overall recycling rate for
steel was 88% in 2012 with
nearly 84 million tons of steel
recycled, the Steel Recycling
Institute announced. Waste
& Recycling News
On course to double its recycling
rate to 30% by 2017 and save at least
$60 million annually, New York City
Mayor Mike Bloomberg unveiled a
new public information campaign
"Recycle Everything" to remind
everyone how easy it can be to make
a measurable difference. Waste &
Recycling News
In 2005, 20% of recycling communities
used single-stream, but by 2010, that had
grown to 64%. The Huffington Post
2012-2016P
CAGR: 4.0%
Source: U.S. EPA. Source: IBIS World.
Sentiment
14
Historical E-Waste Generation and Recycling Trends E-Waste Laws

E-Waste News
More than half of the United States has some form of e-waste
regulation or disposal ban enacted, with many still considering laws.
Due to the growing adoption and shorter lifecycles of electronics,
the Consumer Electronics Association estimates Americans own
approximately 24 electronic products per household.
Consumers and businesses now have more options to recycle their e-
waste local community recycling events or pickups, online
buyback websites, and new technologies such as ATM-like machines
located in shopping centers.
Data security is an important consideration for consumers and
businesses when disposing of their electronic devices this service
is a valuable competitive advantage for certain e-waste businesses.
The global e-waste recycling market is expected to grow at a 13.2%
1
Sub-Sector Review
E-Waste
U.S. General Services Administration
announces new guidelines banning all
federal agencies from disposing of e-
waste in landfills.
U.S. General Services Administration
Study finds that 25% of all e-waste
handlers directly engage in exporting
and 41% reported being reasonably
certain some portion of their materials
was later exported by another
organization.
U.S. International Trade
Commission
E-Waste Law Proposed E-Waste Law No E-Waste Law
Source: National Center for Electronics Recycling.
10.0%
13.7%
18.3%
18.8%
19.6%
24.9%
0%
5%
10%
15%
20%
25%
30%
0
1,000
2,000
3,000
4,000
2000 2005 2007 2009 2010 2011
Total E-Waste Generated E-Waste Trashed
E-Waste Recycled Percent Recycled
The U.S. House introduced an
electronic waste recycling bill
prohibiting the exporting of some
e-waste to avoid improper
disposal. Waste360
The EU recently adopted new rules on
e-waste, which requires all member
states to enact collection targets of
45% of electronic equipment sold
starting in 2016, and a target of 65%
of equipment sold or 85% of
electronic waste generated by 2019.
GreenBiz
2000 2011

(Thousands of Tons)
Source: U.S. EPA.
(1) Transparency Market Research.
Sentiment
15
Sub-Sector Review
Specialty Waste Industrial
Industrial Specialty Waste News
More than 860 trillion cubic feet of
shale gas sit under American soil,
which means more waste. In the tri-
state region of PA, OH, and WV,
the waste from shale gas drilling has
gone from 0% in 2008 to 6% in
2012.

Large waste management businesses have begun to diversify their
traditional business models by acquiring companies in specialized
waste services industries, including oil and gas.
As regulations continue to become more specific towards certain
industries, the industrial specialty waste sector will continue to grow
and see investment from larger waste management firms looking to
enter this attractive niche.
Global industrial waste recycling and services market is expected
to grow at a 10% CAGR from 2012 to 2016P, partially driven by
the increase in sources of industrial waste generation.
1
Oil and gas companies are expected to increase environmental,
health, and safety (EHS) spending by 60% from $35 billion in
2011 to $56 billion in 2030P, driving demand for industrial waste
solutions.
Its no secret that those in the solid
waste management business are
increasingly viewing oil and natural
gas field wastes as a business growth
opportunity. Casella Waste Systems
is one of those companies looking to
expand their traditional business
model. Waste & Recycling News
Global EHS Spending by Oil & Gas Companies

N.A. E&P Waste Treatment, Recycle, and Disposal Expansion

10%
50%
90%
50%
0%
20%
40%
60%
80%
100%
N.A. E&P Capital
Budgets
N.A. E&P Waste
Management
N.A. Future E&P
Waste Management
Other
E&P
CapEx
E&P Waste
Management
Liquid
Waste
Management
Solid
Waste
Management
Future
Solid / Liquid
Waste
Management
Size $190 - $200bn $15 - $20bn TBD
2011 2030P

($ in billions)
$35
$56
$0
$10
$20
$30
$40
$50
$60
2011 2030P
2011-2030P
Growth: 60%
The drilling waste management market
is estimated to grow from over $4
billion in 2013 to nearly $8 billion by
2018, at a CAGR of over 10%.
Markets and Markets
Source: Equity Research.
(1) TechNavio.
Source: Lux Research.
Sentiment
Waste Management is acquiring two
energy services companies in a push to
expand its environmental service
offerings to oil and gas industry
customers in the Bakken shale formation.
16
Sub-Sector Review
Specialty Waste Hazardous
Hazardous Specialty Waste News
California is embarking on a new
push to cut hazardous waste landfill
disposal in half by 2025, but also
wants to allow expansion of one
such hazardous waste site.

U.S. Hazardous Waste Generation Management

Hazardous waste generation trends have fluctuated between 2001
and 2009, but the amount generated has roughly stayed constant
while the portion of waste that was disposed of increased by 2.1
million tons.
The oil & gas, petrochemical, and manufacturing renaissance is
driving increased demand for hazardous waste services.
Of the disposal methods, underground injection is the most popular,
increasing from 90.7% of hazardous waste produced in 2001 to
91.2% of hazardous waste produced in 2009.
Other methods include landfill, land treatment, and incineration in
the U.S., no new landfills have been permitted in the past 18 years
and no new incinerators have been constructed in the past 16 years.
The growth of new industries like e-waste recovery and solar
energy will also help to grow hazardous waste collections in the
U.S. as new types of waste are classified as hazardous.

U.S. Hazardous Waste Disposal by Practice
While solar power is a far less
polluting energy source than coal
or natural gas, many panel
makers are nevertheless
grappling with a hazardous waste
problem.
Associated Press
Chinas Green Fence aims to avoid
receiving hazardous waste or medical
waste, which would reject the whole
shipment received. Waste &
Recycling News
24.6
20.1
28.8
27.6
24.8
19.5
16.1
23.7
24.3
21.6
0
5
10
15
20
25
30
35
2001 2003 2005 2007 2009
Generated Disposed
2001 2009

(millions of tons)
2001 2009

(millions of tons)
Source: Environmental Business Journal. Source: U.S. EPA.
Sentiment
17.68
14.48
21.75
22.44
19.67
1.78
1.60
1.92
1.85
1.90
0.02
0.02
0.00
0.00
0.01
0
5
10
15
20
25
30
2001 2003 2005 2007 2009
Underground Injection Landfill/Surface Impoundment
Land Treatment/Land Application
17
Sub-Sector Review
Specialty Waste Medical
Medical Specialty Waste News
Global Medical Waste Market Competitive Landscape

Proper disposal of medical waste is imperative to reduce the risk of
cross contamination and the spread of infection currently over
90% of medical waste in incinerated to aid this effort.
U.S. EPA regulates the air emissions for medical waste incinerators
and in May passed amendments aimed at further minimizing
emissions.
The U.S. medical waste management market is expected to grow at
a 5.4% CAGR from $3.1 billion in 2013E to $4.0 billion in 2018P,
driven by the growing demand of the pharmaceutical industry and
the aging population.
Globally, the medical waste management market is expected to
reach $10.3 billion in 2018P, representing a 4.9% CAGR from $8.1
billion in 2013E.
Stericycle is one of the largest competitors in the medical waste
management industry with approximately 14% global market share.
U.S. Medical Waste Management Revenue
Hospitals in two Australian
states have recycled 33,000
pounds of PVC waste, turning
it into industrial hoses and
non-slip floor mats.
Environmental Leader
Citing growing community concern, Utah
Gov. Gary Herbert has ordered the state
Department of Health to conduct a detailed
study of a medical waste incinerator in North
Salt Lake City. The Republic
GlaxoSmithKline hopes to collect 100,000 used
respiratory inhalers through a new collection
program being offered to community-based
retail pharmacies in 31 U.S. markets. Currently,
inhalers may not be recycled by curbside
recyclers, and therefore likely go to landfills,
GSK said. Environmental Leader
Government shutdown halts
EPA hazardous waste and
medical waste investigation at
site of warehouse fire in
Detroit.MLive.com
As of Q2 2013 2013E 2018P

($ in billions)
Source: Markets and Markets. Sources: Frost & Sullivan, Stericycle.
Sentiment
$3.1
$4.0
$0
$1
$2
$3
$4
$5
2013E 2018P
2013E-2018P
CAGR: 5.4%
Stericycle, 14%
Onsite
Management
and Other
Competitors,
86%
18
2.4
2.5
3.5
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
4.0
2006 2011 2016P
Sub-Sector Review
Recycled Content
Recycled Content Waste News
U.K. project to turn business waste
from tenants including a food grade
plastic recycling business, a
gasification plant, and an anaerobic
digestion plant into green roof
material. GreenBiz.com

As pressure builds from special interests
for the federal government to ditch its
preference for LEED certification of
buildings, the latest version of LEED has
been approved, making it more powerful
than ever. Members of the US Green
Building Council voted overwhelmingly
(85%) to include Cradle to Cradle
certification in LEED V4.
Sustainable Business News
China's "Green Fence" crackdown
on dirty scrap materials has reduced
imports of plastic waste by 5.5% in
the first four months of the year, a
significant change for a country
long-used to double-digit increases
in recycled materials flowing in.
U.S. Post-Consumer Plastic Demand

The explosive demand for recycled content is driven by changing
consumer preferences and the growing amount of waste.
The supply of post-consumer plastic has proven challenging for
businesses but recent changes in regulation, the emergence of
public-private and business-to-business partnerships, and improving
technology and waste stream management are helping to mitigate
roadblocks in the supply chain.
I n addition, demand for post-consumer plastic is expected to rise
6.5% per year to 3.5 billion pounds in 2016P.
Nearly 170 million tons of annual building construction, renovation,
and demolition derived wastes account for nearly 60% of the
nations non-industrial, non-hazardous solid waste generation.
The sustainable building materials industry is expected to grow at
a 17.6% CAGR from $21.0 billion in 2012 to $40.0 billion in
2016P, driven in part by the implementation of LEED v4.
U.S. Sustainable Building Materials Manufacturing Revenue
$13.1
$16.2
$21.0
$25.0
$31.3
$36.1
$40.0
$0
$10
$20
$30
$40
$50
2010 2011 2012 2013E 2014P 2015P 2016P
2010 2016P

($ in billions)
2012-2016P
CAGR: 17.6%
100% recycled plastic vehicle bridge, made
from 80% post consumer plastic and 20%
recycled car bumpers and dashboards,
holds strong in Ohio. Earth Techling

2006 2016P

(Billion of Pounds)
2011-2016P
CAGR: 6.5%
Source: IBISWorld. Source: Freedonia.
Sentiment
19
Sub-Sector Review
Waste-to-Energy (WtE)
Composition of Municipal Solid Waste Waste-to-Energy Plants Capacity in the U.S.

Waste-to-Energy News
Current challenges in waste management, including unsustainable
landfilling, methane gas emissions, growing waste volumes, and
lack of space, are fueling the growth in the WtE market, which is
expected to reach $7.4 billion in 2013.
Consumers and businesses are recycling more biogenic waste (e.g.
food waste and yard clippings) and discarding more non-biogenic
waste (e.g. plastics and metals), which has a higher heat content,
making it a more efficient fuel to produce electricity.
While the U.S. is making strides in growing its WtE market, in 2011
only 11.7% of municipal solid waste was used to create energy as
opposed to the E.U. where 22.0% went to WtE plants.
The global WtE market is expected to grow from $6.2 billion in
2012 to $29.2 billion in 2022P, representing a 16.8% CAGR.

As of 2011
(MW)

2005 2010

(Heat Content)
1-25 26-100 101-200 201-300 300+
Source: U.S. Energy Information Administration.
57% 57%
54% 54%
51%
50%
43% 43%
46% 46%
49%
50%
0%
10%
20%
30%
40%
50%
60%
2005 2006 2007 2008 2009 2010
Biogenic Non-Biogenic
Massachusetts plans to ban commercial
food waste in 2014. The plan would
require any entity that disposes of at least
one ton of organic waste per week to
donate or repurpose the food starting July
1, 2014.

New York landfill adds
another engine to a facility
that utilizes landfill gas to
create electricity.
Global waste incineration markets
will more than double in value by
2022 to $16.8 billion, according to a
new study.
GreenBiz
Source: U.S. EPA.
Sentiment
20
Disclosures
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Market Update Q3 2013

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