ANNUAL REPORT 2012

Managing Director’s Review

Business Review - Environmental Anua

Bord na Móna Environmental began trading as Anua in 2011. Anua is a provider in the design, manufacture and installation of a portfolio of differentiated clean-tech technologies, offering clean air and clean water solutions.

Environmental Anua

Challenges

Global Economic Downturn
Anua operates in challenging market environments where levels of construction activity have experienced a dramatic and fundamental contraction. This will continue to be a challenge for the business for the foreseeable future.

Business and Consumer Confidence
Lower levels of business and consumer confidence, combined with lower levels of economic activity, are placing increasing strain on both disposable income and the availability of credit. These had a negative influence on purchasing decisions during the year.

Regulatory Change
The US state of Virginia relaxed its regulatory requirements in 2011. This has resulted in an influx of competitor residential wastewater treatment products and services and an ongoing decline in Anua’s Puraflo system sales.

Business Integration
The transition of the three UK business units into one consolidated entity alongside the implementation of lean manufacturing and sales processing systems led to particular challenges regarding sales growth and target achievement.

Achievements

Revenue Growth
Despite these challenges revenue grew by 3.9%. The primary driver of growth was the UK, where performance in the second half of the year was strong as the benefits of new manufacturing and sales processes came through. Despite negative construction forecasts for 2012, these results have given the business increased optimism for continued growth in Fiscal Year 2013.

Customer Service
A new customer service mobile workforce management system was introduced, providing faster and more efficient product and service delivery to customers. This strengthens customer service in all Anua’s markets and is vital to long term success.

New Technology
A new wastewater treatment product, Platinum, was launched in three US States, targeting the residential market.

Commitments

Product Innovation
Anua’s innovation agenda includes maintaining and developing a diversified and sustainable portfolio of clean air and clean water technologies.

Customer Service
Anua will strengthen its customer service capability further, building on the recognition of Anua’s success at the 2011 Irish Field Service Awards, which were presented to those companies demonstrating both operational and field service excellence.

Growing the UK Market
The revised operating model in the UK will be used to pursue market share growth, particularly in the wastewater treatment sector.

Regulation
The business is committed to providing products and services that meet the ever-changing regulatory and environmental requirements of the markets in which Anua operates.