Challenges and Opportunities Getting SMEs on board Jens

Challenges and Opportunities: Getting SME’s on board Jens Baadsgaard Pedersen “SME - Hands on” experiences from: Watertech A/S, Danwater A/S, Sky. TEM Aps, Envi. Dan A/S, and Dan. Aqua Aps and Export Preparation Consultant for The Trade Council of Denmark 10 -09 -2020 Udarbejdet af: 1

Getting SME’s on board Many successful Danish SME’s already working international in the Water Sector? – – – 10 -09 -2020 Producers of equipment, like Co. Me. Tas Software developer, like I-GIS Specialized consultants, like Envi. Dan Water Operators and contractors, like Sky. TEM Danish Utilities with more than 150 years of unique competences how to manage, operate and maintain water utilities like VCS Udarbejdet af: 2

Just call! 10 -09 -2020 Udarbejdet af: 3

Getting SME’s on board • Why are SME’s important for export of water technologies? – Innovation driven and strong engagement creates unique products and solutions – They are very important as the feeding channel for new business opportunities and advanced technology – They generates employment in research and development, and even production of “Advanced technology” in Denmark! – To deal with the global water challenges, we need holistic concepts, that involves specific products and unique competences 10 -09 -2020 Udarbejdet af: 4

Getting SME’s on board We have to be realistic and focused on global challenges, not just think in Danish situations: – Most of the world use surface water, we are much more lucky! – Water is very expensive in DK, not like in most of the world – Water is very scarce in many places, but not in DK – In Bangkok has 25. 000 km distribution pipes – KE have 1076 km! – In Kuala Lumpur the NRW (water loss) = total Danish water consumption (> 400 mill m 3 /y) Our big challenge: Going from dealing with Danish situations to Mega cities! 10 -09 -2020 Udarbejdet af: 5

Getting SME’s on board • Why is it difficult for SME’s to go global? – They always lack money, so how can they finance in market development and sales fare away from home! – The SME’s are often driven by people that spends time on inventions and innovation, do they have courage to go global? – Lack of Experiences in export and international relationship • International Marketing & sales • Project and financial risks • Custom and other paper work • Currency risk and monetary challenges, … Etc… – The global water sector demands more and more integrated and holistic solutions – to much for a Danish SME! 10 -09 -2020 Udarbejdet af: 6

Getting SME’s on board My experience: Watertech A/S! • Established 5 J/V’s outside DK from 2003 to 2007 • Status: 2 are closed (Germany and Philippines), 3 kicking very strong and successful (Vietnam, Thailand, and Malaysia) • We used any services available to get support to develop the companies and start up in the respective markets • Trade council services, Danida B 2 B programs (Partnership Facility Program) and IFU as co-investor. • My lesson learned: – It takes hard work and money, and 3600 internal support based on a business plan – And no matter where you want to go, you need strong local setup 10 -09 -2020 Udarbejdet af: 7

Optimizing Drinking water distribution and reducing NRW and energy consumption MWA, Bangkok – Thailand • Consumers: • Daily production: • Distribution pipes: • NRW (official): • 11 mill. 5 mill m³ 25. 000 km 36 % Daily loss from system = 1, 8 mill m³ = the same as Silkeborg use in 1 year

MWA pipe system in Bangkok - Thailand

NRW Project for MWA Bangkok – Thailand Reduce leakage and NRW Thai Danwater scope of work: • Upgrade GIS system • Installation of Danish “Aquis” hydraulic modelling software • Set up hydraulic model for 25. 000 km pipes • Separate system by use of hydraulic model in to 12 districts and 700 DMA’s • Design pressure management • Develop network model online for supply system and set up load forecast

Getting SME’s on board What can we do for them and how to support them? – Support with Experience and networking: • The Trade council of DK (of course) • Networking informally and in any relevant organizations (DI, FRI, Danish Water Forum, Inno-Mt etc. ) • Export promotions; delegations and Danish pavilions like organized by WTC Environmental Export. – Support demonstration project out side DK => First reference always very important, “What I see - I believe” – Support research programs at Universities with focus on cooperation with SME’s (ex. Højteknologifonden) 10 -09 -2020 Udarbejdet af: 11

Getting SME’s on board What – – – can we do for them and how to support them? Support financially start up of export and market development Generate finance mechanism to develop Feasibility Studies Support companies to set up cooperation and to form concepts. Organize “Concept factories”! – Establish “Market platforms” in selected markets and offer “local” support with the difficult part of exporting – “CNR” = Company National Responsibility! Let the big one’s smoothen the way for the SME’s and share their experiences – Any many more ideas……. . 10 -09 -2020 Udarbejdet af: 12

Getting SME’s on board Conclusion: It can be done, also for the SME’s in the water business! Recommendation: • Involve SME’s directly in advanced and innovative research • Expand develop programs and advisory services like Trade Counsel, Danida programs and IFU. • We have to support the start up process and secure a high rate of success by supporting them directly with money!!! = “Invest in DK”! • We must organize the water sector in Denmark much better Thank you for your attention! 10 -09 -2020 Udarbejdet af: 13