POLLET WATER GROUP SEMINAR Domestic industrial RO Domestic

POLLET WATER GROUP SEMINAR Domestic & industrial RO

Domestic RO

Domestic RO range • • Definition of the range of products Suppliers, cost prices & market prices Types of customers & sales channels Products and supplier potential

Definition Domestic RO Range STANDARD • • 4 or 5 stages. Taiwan, China product. USA quality expensive 10” Standard cartridges. Tank Out, shut-off. Options: Flushing, Pump, UVA, Remineralizing Cartridge, Economic product: First Price-Medium Price Added value : Double o´ring in filters, fewer connectors, design cover, fauçet, low rejection COMPACT • • One box cover. Taiwan, China product. In-line cartridges. Smaller tank inside. Options: Flushing, Pump, electronic control, Direct Flow, Leak detector. Faucet design. Medium Price – High Price Added value : Design, In -line cartridges with special quick connectors, colours. SPECIAL PRODUCT • • One Box Cover: design & high quality European product , Korea, Taiwan, China or famous Brand (AEG, GE. . . ) Quick or Click Cartridges or In-line cartridges special in size. Special membrane. More efficient: 1: 1. / Ultra-low rejection. High Price Special faucet. Electronic Control, autochecking

Definition Domestic RO Range STANDARD COMPACT SPECIAL PRODUCT SUPPLIERS Now New potential PURICOM FLUXTEK SOLEAQUA KFLOW / TOPPUROR / JETSUN…. PURICOM SOLEAQUA KFLOW / TOPPUROR / JETSUN / Membrane Solutions PURICOM / AO SMITH TOPPUROR / JETSUN / Membrane Solutions? CUSTOMER SALES MARKET GSB-DIY PLUMBERS PROFESSIONAL GSB-DIY (new) ON-LINE SHOP PLUMBERS PROFESSIONAL OEMs KITCHEN SHOPS DIRECT SALES PROGRAM DEALERS GROSS MARGIN LOW MEDIUM HIGH Unit Sales (Spain) 2014/2015/2016 % SALES 10. 400/11. 780/10. 350 421 / 514 / 543 360 / 680 / 1. 100 75%-85% 5%-10% 10%-15% Increase Market No (except new big account) No (New sales channel) Yes (New customers New dealers)

Soleaqua Standard Domestic RO Good quality & good price – Packaging Working with Puragua-Grupagua for more than 15 years Many different models: Soleaqua is same as FLUXTEK EUR-50/EUR-50 BP: - Cost Price: 59, 30$ / 81, 00$ (FOB Taiwan) Housing filters Double O-ring Low leaked: 1 / 3 First-Medium Price Plastic pressure Tank 145€ - 240€ Faucet design Caps Filters without connectors Bb. Basic / EUR-35: - Cost Price: 44, 50$ / 48, 30$ Metal Pressure Tank Faucet Standard 35 Gpd Membrane New PALLAS: SO / BP: - Cost Price: 44, 60$ / 67, 00$ Housing filters Double O-ring Faucet design in gloss chrome Plastic pressure tank First Price 99€ First-Medium Price 145€ - 240€

Puricom Standard Domestic RO Good quality & good price – Packaging Puricom = IONFILTER. Will be a danger!! Good marketing, good instructions & photos, high-quality faucet, labels. Postfilters are expensive. Standard cartridge prefilters PALLAS SO: - Cost Price: 55, 40€ (Axapta) Housing filters high quality Plastic pressure tank Faucet design chrome PWG labels on cartridges PALLAS BP: - Cost Price: 77, 4€ (Axapta) PALLAS SO + Pump + Control Led First Price 99€ First Price 150€ PALLAS AF+BP: - Cost Price: 82, 82€ (Axapta) Housing filters Double O-ring. Faucet design gloss chrome. Plastic pressure tank Medium Price 225€

Puricom Compact Domestic RO Good quality – Metal pressure tank inside, EASY OPEN - Packaging Good design, good instructions & photos, high-quality faucet, labels. Cartridges & Postfilters are expensive. PALLAS CLASSIC: - Cost Price: 98, 79€ (Axapta) No electricity. Shut-off Special cartridges in-line, no standard PALLAS SMART: - Medium Price 350 -600€ Cost Price: 145, 00€ (Axapta) CLASSIC + Pump + Control working PALLAS PREMIUM: - Cost Price: 160, 77€ (Axapta) SMART + Auto flushing + Leak detector + check quality water + maintenance program HIGH PRICE, but difficult because the design is the same High Price 900€

Soleaqua-Fluxtek Compact Domestic RO Metal pressure tank inside, packaging RO-TOP / RO LINE: - Cost Price: 89, 00€ (FOB Taiwan) No electricity. Shut-off, Standard cartridges. Double o-ring housing filters. Good quality – Price. Design not attractive FLUXTEK PRODUCTS (ESLI) - Cost Price: No more information available First Price 199 -250€

Special Product Domestic RO Compact or Semi-Compact Good quality, easy open, good design, green product. High-quality faucet, electronic control, Reverse Osmosis with new technology AO SMITH PRODUCTS ECO-EFFICIENT TECHNOLOGY – 1: 1 (Green Product) - Cost price is very competitive versus PURICOM Cost Price Special cartridge quick fitting in-line 10” 119, 15€(Bcn) Special electronic control board Working hours control Security blocked High Price Maintenance program check 850 -1100€ Auto. Flushing Leak detector Special faucet with led (LIKUAN faucet) Various Models available We have problems of communication and lack of interest and commitment of the supplier. Cost Price 104, 60€ Cost Price 97, 85€

Special Product Domestic RO Direct Flow Good quality, easy open, good design, green product. High-quality faucet, electronic control, reverse osmosis with new technology PALLAS ULTIMATE: - Cost Price: 243, 76€ (Axapta) PURICOM Product Same cartridges in-line as CLASSIC, SMART and PREMIUM Good packaging and customized product Cost is very expensive. No sales. Problems with noise High Price 1. 200€ WATER PURIFY DIRECT ECO-EFFICIENT - Cost Price: 151 - 174, 73€ (Bcn) AO SMITH product (China) Special cartridge click fitting in-line 10” Special electronic control board Working hours control Security blocked Maintenance program check Leak detector GREEN Product. 1: 1 (1 l/min production) Silent technology High Price 950€-1. 350€

Products & Supplier potential STANDARD • • COMPACT SPECIAL PRODUCT Need to find a provider that can replace the range PALLAS Standard (5 T) of PURICOM Find a provider that can supply the full range of products at a competitive price and with guaranteed quality. ESLI will manufacture equipment in the future. But. . . that type of equipment? , can make the range complete. Is it cost-effective to manufacture standard equipment, will it be cheaper? New suppliers to investigate: TOPPUROR (Taiwan), JETSUN (Taiwan), Membrane Solutions (specialist in high-quality membranes and cartridges), BLUE PLUSER Select a provider for each range of RO and search new products with new technology (have to be in the trade shows in China) Continue working with FLUXTEK, SOLEAQUA, KFLOW, AOSMITH. LIKUAN faucets is probably a good supplier. They can manufacture products customized with the PWG brands

FLUXTEK (ESLI supplier) - Problems in Spain because they have an agreement with HIDROWATER. - Product quality and control is worse and we think that the price is not better than SOLEAQUA STANDARD RO COMPACT RO

Standard RO – Evolution JETSUN BLUEPLUSER

COMPACT RO JETSUN SPECIAL PRODUCT RO TOP PUROR

NEW PRODUCTS TO EXPLORE COMPACT RO RANGE Green Product New technology Zero Installation Medium Price PURICOM: ZIP RO KFLOW : RO-POT 119$ (FOB) Yves-Marie is testing: We have problems with quality water in our test BLUE PLUSER: BP-BRT 01 118$ (FOB) Added value: Hot water also included

NEW PRODUCTS TO EXPLORE

Industrial RO

Esli RO (Insol) • Advantages: – Competitive pricing, even when sold through Insol, especially the Alfa range. – Wide basic/standard range: from 200 l/h up to 92 m³/h. – Standard range from 2000 ppm to 15000 ppm. – Standard units are complete: 8’’ units include PLC, touch screen Siemens, flushing/CIP, multi-cellular pump Grundfos, etc. – Suitable for our market and the industrial sector. – Sufficient personalization: projections, recommendations, etc. – Availability of standard UF units. – High flexibility and willingness to make changes. – Direct contact with those in charge of helping us commercially

Esli RO (Insol) • Personal experience: – Overall quality is acceptable in general, considering the cost of the equipment. – Quality control is absent, although the situation is improving. More quality problems on non-standard products. – Some improvements could be done without a big impact on cost (change lowcost components, better coordination of production process, more care to finishing the product & increased quality control). – Problems are mostly with PLC and touchscreens, which the system depends on. – Quality of components varies, but well-known brands are used for the main components. – Quality of assembly has improved. – Delivery lead times could improve and are sometimes an obstacle in sales (often due to high-pressure pumps, automation or electrical part). Changes in material (e. g. AISI 316 instead of AISI 304) also delay delivery.

Esli RO (Insol) • • Most popular units: mostly Alfa units. Systems with 4’’ membranes because of competitive pricing, high-volume market & product availability in Insol. Also aesthetically the nicest. Catalogue & documentation: – Usually not sold from catalogue (due to personalization & adjustments) , but used as starting point. – Sufficient documentation for most popular units, but information missing for some units (sea water units, UF, EDI…). Insol usually makes the commercial documentation, based on the info received and own experience. – The content of the documentation (manuals & certificates) could improve. – Insol normally has to solve the language problem themselves. Esli support & after-sales service: – Pre-sales: good support, partly the reason of Esli’s success. – More problems in production and after-sales service, when dealing with technical subjects (also due to the distance). Sometimes slow reaction, but good attitude & willingness to help. – Esli does not go on site to help. Other remarks: – Customers are generally happy with Esli. In case of repeated problems, customers are less inclined to choose Esli again, which is normal. – Overall, the products are well adapted to the needs of the Spanish market (pre-sales service & price). – Problems must be solved quickly: Esli has to improve their products or give Insol the necessary tools to help the customer themselves.

Herco RO (Euraqua) • • Advantages of Herco: – 37 years of experience – Top engineering – Very wide product range – Reliability – Extensive testing – Extensive documentation and manuals – Availability of certificates (TUV, ISO, CE…) – Guaranteed performance – Availability of Profi-net – Orbital welding – High efficiency (75 to 90% recovery) – Own controllers Personal experience: generally good to excellent quality of the entire range

Herco RO (Euraqua) • • • Most popular units: Euraqua sells all types (RK, AS, KR , ND/P…), but mostly the WSE & ND range, as these are a little cheaper. All units are very good in terms of performance. Catalogue: good catalogue + additional information (technical info, pictures, brochures…) on Herco website. Herco support: generally sufficient. Euraqua knows who to contact depending on the type of problem. It can be harder to get info if Christian is not there. After-sales service: only support by phone of the “Kunderservice”. Herco hardly ever goes on site to help. Other remarks: – Some customers only want Herco units. Others choose Herco or Esli based on the application and the available budget. Mainly the KR units (concentrate staged up to 90 % recovery) give Herco an advantage over the competition. – Herco does not have much experience with sea water RO units and UV systems. For these applications, Esli is stronger. Herco is not very strong in very high flow rates (> 40 m³/h) either.

Euraqua UK RO • Advantages: – Over 25 years of RO building experience – Large range of standard systems over a series of platforms – Possibility to engineer custom systems both in terms of functionality and physical shape – PLC controls with simple touch screen controls – Flow rates from 300 lph to over 30 m³/hr – Single pass, double pass and EDI options – Each RO fully tested with recorded results before despatch – Large stock of spares – Tried and tested, quality components.