Drivers and trends

• Poor state of the underground infrastructure requiring significant maintenance and renovation
• Ageing underground infrastructure

~40

Years old on average

• Increased extreme weather increases the load on the underground infrastructure networks and requiring more maintenance and higher quality pipes
• Temperature and rainfall increase set to strain underground infrastructure

12%

• Existing regulations expected to drive higher investment
• Regulations increase the frequency of maintenance intervals
• Increasing standards and reporting requirements

~90

• Urbanisation placing extra pressure on the outdated underground infrastructure in urban areas, which increases maintenance need

13%

• Sizeable outsourced UIM market with only ~24% of the services currently insourced
• No expected change in outsourcing degree in Nordic markets
• Further outsourcing potential in Germany (e.g. municipalities)

~24%

of market insourced

• Increasing trend for customers to weight ESG criteria
• Reporting requirements also increasing

~30%

weighting in certain tenders