1. Get ready for the next big thing! Great potential lies in the China Water and Wastewater Treatment Market M580-15 May 2010

3. Historical and Geographical Disparities between levels of development of Each Region Source: Year Book of China Statistics 2008 Total Water Resource Population covered with water and wastewater treatment facilities, (2007) 22% Year 100 million m 3 /year

4. Water Resource Distribution and Utilization History in China Note: All figures are rounded; the base year is 2009. Source: Year Book of China Statistics 2009 Total Water and Wastewater Treatment Market: Water Resource Distribution by Regions (China), 2009 Total Water and Wastewater Treatment Market: Water Usage Distribution by Regions (China), 2009 Regions Regions Note: Others include seawater, brackish water, etc. The municipal drinking water supply rate has been reached to 97% till 2009. The drinking water supply rate for counties/towns will reach 75% by 2010.

5. Trends of wastewater discharge and rate of treatment Source: National Bureau of Statistics of China, Ministry of Housing and Urban-Rural development of China; Frost & Sullivan, 2009 Urban Wastewater Discharge and treatment rate in China, 2005-2009 Forecasted

6. Water Investments to be Doubled in 12 th Five Year Plan (2011-2015) Source: Ministry of Housing and Urban-Rural Development of China, China National Environment Protection Plan in the11 th Five Year (2006-2010) Environmental Protection Investment (China), 2006-2015E Timeline 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 11 th Five Year Plan 12 th Five Year Plan $224 billion in Environmental Protection About $11.2 billion in Water sector $454 billion in Environmental Protection About $48.5 billion in Water sector Accounted for 1.5% of GDP Accounted for 1.35% of GDP

8. Top Industrial Challenges Source: Frost & Sullivan Total Water and Wastewater treatment market: Impact of Top 7 challenges in China, 2010-2016 Rank Industry Challenges Impact Over Forecast Period 1 - 2 Years 3 - 4 Years 5 - 7 Years 1 Water scarcity and ever-polluted natural water resources. High High High 2 Government emphasis on Zero wastewater discharge in water intensive industries. High High High 3 Privatization for water and wastewater industry . High High High 4 Conflict between increasing wastewater discharge standards and the cost of treatment and operation. High High High-to-Medium 5 Relatively low water tariff affect the investment motivation. High High High-to-Medium 6 End users regional preference and fierce competition with domestic organizations pose a barrier for new entrants. High High High-to-Medium 7 Old infrastructure and facilities for existing water and wastewater treatment plants. High High High-to-Medium

12. Stakeholders Analysis – Municipal water and wastewater Decision Making Process among Key Stakeholders in Chinese Water & Wastewater Treatment Market Evaluation of Decision Making Criteria among Key Industrial Customers Scenario 2 Retrofit project EPC Design Institute End User Water/Wastewater Companies Technology Suppliers/Manufacturer/Distributor Scenario 1 New project 1 2 3 1’ 3’ 4 Construction Companies Engineering Supervision Companies Investor