Industry Insight Monthly December 2016 by AI Global Media

INDUSTRY I

Dec 2016

The E-Commerce Revolution E-commerce is championed for its convenience, so surely there must be a way to cut through the noise and make online shopping the ‘1-click’ experience it’s supposed to be? – Enter Expressly…

PLUS: The Five Pillars of Digitisation in the Automotive Industry / Tackling Climate Change in the Food Industry / World Waste-to-Energy Technologies

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Welcome to the very first edition of Industry Insight Monthly, the quarterly online magazine which is the home of up to date comment, news and insight across the corporate landscape. Industry Insight is the perfect resource for those looking to keep their finger on the pulse and remain at the forefront of the latest developments in their industry, thanks to AI Global Mediaâ&#x20AC;&#x2122;s wealth of industry contacts.

With a global subscriber base of 55,000 we ensure we offer the ideal platform for advertisers looking to reach their target market. Our subscribers include prominent CEOs, dedicated business executives and leading visionaries seeking to make their mark on the business market.

DECEMBER 2016 Page 3

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Contents...

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UKâ&#x20AC;&#x2122;s largest Rail Infrastructure Project to Boost Economy and Generate Job Opportunities

6. News 10-15. Environment 10. EBRD Conference Highlights Private Sector Role in Tackling Climate Change in Food Industry 12. UK P&I Advises Members of Environmental and Insurance Liabilities Under the Antarctic Treaty 14. World Waste-to-Energy Technologies 16-23. Transport 16. Global Trucking: 8 Transformational Growth Trends Impacting the Industry 18. The Five Pillars of Digitisation in the Automotive Industry 20. UKâ&#x20AC;&#x2122;s largest Rail Infrastructure Project to Boost Economy and Generate Job Opportunities 22. Aircraft Heavy Maintenance Visit 24-27. E-Commerce 24. Boom in Mobile E-Commerce Drives Businesses to Enhance Platforms Through IoT and Predictive Analytics 26. The E-Commerce Revolution

28. Deals

DECEMBER 2016 Page 5

South African Multidisciplinary Construction Industry Under Pressure

Expansion into Sub-Saharan Africa could be a viable strategic alternative to drive revenue opportunities, says Frost & Sullivan. The South African (SA) construction industry contributes significantly to the economy and employs a large portion of the workforce. However, the multidisciplinary construction industry globally is exposed to the business cycle and has been under tremendous pressure.

several challenges both locally and globally,” notes Frost & Sullivan’s Chemical, Materials, Food (CMF) Industry Analyst Lynessa Moodley. “Challenges include employee relations, lack of skilled labour, and liquidity risk resulting in poor overall financial performance of the sector. Increased competition also restrains company profits due to price wars.”

Recent analysis from Frost & Sullivan, titled Analysis of the South African Multidisciplinary Construction Industry within an African Context, takes a look at the top 12 heavy construction companies with experience in mining, processing plants, and project management within Sub-Saharan Africa for the 2015 financial year. The eight publicly listed, South African EPCM companies analysed in the study witnessed an average decrease in market capitalisation of 31 per cent over the 2015 financial year. These companies also witnessed an average decrease of 52 per cent in marketto-book value from 2011 to 2015, indicating a significant drop in investor confidence. The four remaining companies forming part of the analysis are international businesses with a reputation for delivering projects in Africa, two of which are not publicly listed companies. The analysis offers deep insight into the current financial performance of the companies, the scope of capabilities, and the current challenges faced in the South African construction industry.

In 2015, slow economic growth hindered the South African construction industry. A weakening exchange rate caused a rise in the import costs of raw material, transportation and project costs. This stalled the demand for Engineering, Procurement, and Construction Management (EPCM) work, thereby reducing profitability. However, Frost & Sullivan expects that the current state of the industry is not expected to remain as such in the long term due to the South African Government’s National Development Plan and increased social infrastructure spend, resulting in a temporary surge in the market. The 2022 Commonwealth Games is also anticipated to contribute to the boost in market growth.

“In order to overcome the current challenging market conditions in South Africa, EPCM companies need to look at alternative markets in Africa where a growth in demand is expected for infrastructure projects and EPCM services,” concludes Frost & Sullivan’s CMF Research Analyst Kimberley “Despite the resounding growth Bryant. “EPCM companies are advised experienced in the build up to the to establish a strategy that encourages 2010 FIFA World Cup hosted by trade and business interaction South Africa, the construction industry between African countries and focus is currently witnessing a major slump on the developments related to this as construction companies face network to bring in revenues.”

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INDUSTRY INSIGHT MONTHLY // NEWS

FelCor - Corporate Governance

K The initiatives follow the Board’s ongoing review of evolving corporate governance practices and investor preferences, as well as discussions with various institutional stockholders. FelCor Lodging Trust Incorporated has announced that its Board of Directors has approved and implemented several stockholderfriendly corporate governance initiatives. “Today’s announcement underscores FelCor’s ongoing commitment to high standards of corporate governance, corporate ethics and shareholder engagement,” said Christopher J. Hartung, FelCor’s Lead Director and governance committee chair. “We strongly believe that regularly reviewing our corporate governance and soliciting open and constructive feedback from our stockholders supports our efforts to build long-term shareholder value.” The initiatives include: • Amending and restating FelCor’s 2014 Equity Compensation Plan to impose minimum vesting and postvesting holding periods and to prohibit cash buyouts of underwater options

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Adding a new section to FelCor’s Bylaws to provide proxy access to director candidates nominated by shareholders that meet certain ownership thresholds and satisfy other criteria Amending FelCor’s Bylaws to delete a section that had reserved for the Board the exclusive power to amend FelCor’s Bylaws (stockholders will be able to propose binding amendments to FelCor’s Bylaws assuming they approve a corresponding charter amendment at next year’s annual meeting) Amending FelCor’s Corporate Governance Guidelines to, among other things, provide for annual individual director reviews and principles for evaluating and managing individual and average director tenure Adopting a Lead Director Charter to formalize and further clarify the robust function, authority and responsibilities of FelCor’s Lead Director

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Amending FelCor’s Insider Trading and Disclosure Policy to add a comprehensive antihedging policy and clarifying language regarding Regulation FD compliance. Detailed descriptions of each of the initiatives can be found in a current report on Form 8-K to be filed today with the Securities and Exchange Commission.

The actions announced are in addition to several recentlyimplemented actions taken by the Company to strengthen its corporate governance and accountability, including declassifying the Board and permitting annual election of all directors, reducing the threshold for FelCor’s stockholders to call a special meeting of stockholders, and modifying FelCor’s executive compensation program to emphasize pay-for performance, among others.

Amazon Lockers at 50 Retail Centers

Washington Prime Group Inc. have reached a deal with Amazon to offer 50 Amazon Lockers at their retail centers. Washington Prime Group Inc. has announced that the Company and Amazon have reached an agreement to offer Amazon Lockers self-service locations at 50 of its retail centers. This significant new initiative underscores Washington Prime Group’s commitment to provide differentiated products and services to its guests. Lou Conforti, CEO and Director commented, “We are excited to collaborate with the world’s largest online retailer to offer Amazon Lockers at a large number of our retail centers.” Mr. Conforti further stated, “Amazon Lockers are a great example of how we are capturing the nexus between physical space and e-commerce. This symbiotic relationship is increasingly apparent and the ‘town center’ positioning of WPG retail centers allow us to embrace innovation which drives shopper traffic and enhances the overall experience of our guest. Plain and simple, it is our intent to be the bricks which complement the clicks.” Washington Prime Group plans to commence with the rollout of Amazon Lockers next month. Amazon Lockers are a self-service delivery location where customers can pick up and return Amazon. com packages at a time and place that’s convenient for them.

DECEMBER 2016 Page 7

Flexible working and tax breaks for start-ups needed to open floodgates for more women in financial services, Sturgeon Ventures says

K Sturgeon announces its four pledges to Treasury’s Women in Finance Charter. The introduction of compulsory flexible working hours would open the floodgates to more women working in the UK financial services industry, according to Sturgeon Ventures, the leading regulatory ‘incubator’ or ‘umbrella’ firm that submitted its four pledges to HM Treasury’s Women in Finance Charter in today’s release by the Government. Sturgeon is also launching a campaign for the government to initiate tax breaks for those startup companies in which women account for at least half of senior management. Seonaid Mackenzie, Managing partner at Sturgeon, commented: “there are many women all across the UK with a tremendous amount of experience and who could re-enter the financial services industry but can’t because of the insurmountable difficulties of juggling family care with inflexible nine to five working hours. “Financial services start-ups could benefit enormously by tapping into this overlooked workforce and the government should be actively encouraging this by offering them tax-breaks, especially for startup financial services companies appointing women to 50% or more of their senior management roles. Such moves would add substantial dynamism to the UK financial services industry, which is especially relevant in the wake of the Brexit vote. “At Sturgeon we firmly believe that diversity amongst our team improves innovation, decision-making and the way we deliver our services. Women today represent 80% of our workforce and we aim to always maintain 50% in

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senior management in accordance with our Charter pledges. We take immense pride in the fact that our endeavour to be a responsible organisation ties in so well with the aims of the UK Government’s Charter and we are • delighted today to release our initial four pledges as a charter signatory.” Sturgeon was among the first signatories to the treasury’s Charter and the only regulatory incubator to do so. It was one of only 13 signatories to pledge to have 50/50 women in senior management roles, alongside Virgin Money, Legal & General and the FCA. The 72 signatories range from international firms such as Mizuho Bank to startups such as Affinity Capital, which is managed entirely by women. The Charter requires signatory firms to formulate a strategy for achieving greater diversity within their organisations, particularly at the senior and executive levels, set Internal and Externally reportable targets to improve diversity in the workforce and publicly report on these goals. Sturgeon Ventures’ four pledges include: • Support five women into senior management/board level roles at the financial services clients we work with, and maintain at least 50% of their own senior management team as women • Support five women who wish to continue their financial services careers to be retained in consulting, contracting and other permanent positions in the sector. This includes encouraging and supporting continual training of these women • Support five women, who would have otherwise been lost to the

industry, to continue or return to careers. This would likely include giving working mothers flexible hours with the option to work from Sturgeon’s office or at home Support Schools in the United Kingdom - to speak to at least two schools from Year 11-13 in the next financial year on gender diversity in financial services and encourage aspirations to work in front-office roles with no gender bias

Sturgeon also encourages those startups that it provides with regulatory to exploit the ‘Gender Dividend’ by implementing similar measures to its own. The number of regulatory ‘incubator’ or ‘umbrella’ firms in the City of London’s institutional financial sector has grown to 52,1 according to Sturgeon Ventures LLP, which was the first such firm to launch 18 years ago. “Regulatory incubators”, also known as FCA Umbrella or Regulatory Hosting, provide third-party investment management, investment advice and compliance and eventually direct authorisation support to startup financial services businesses until they can be directly regulated in their own right. The service has been particularly in demand since the global financial crisis, with many individuals leaving large institutions to set up their own operations. Sturgeon’s analysis1 estimates that there are currently around 800 firms that are appointed representatives of wholesale incubators in the UK. For further information on Sturgeon’s four pledges under the Charter, see: www.sturgeonventures.com/about-us/ equality-diversity-policy/.

INDUSTRY INSIGHT MONTHLY // NEWS

Sanjeev Gupta Seals Purchase of ‘Industry-Friendly’ UK Bank

K This is following receipt of approval at the beginning of November for a Change in Control from the Prudential Regulation Authority and the Financial Conduct Authority. The transaction will be completed in December 2016. British industrialist Sanjeev Gupta, through Wyelands Holdings Limited, finalised with Tungsten Corporation PLC, the terms of the purchase of Tungsten Bank PLC which is to be renamed Wyelands Bank PLC (the “Bank”). The Bank will, upon completion, be permitted to accept deposits under the protection of the Financial Services Compensation Scheme. Mr Gupta said the investment in Wyelands Bank PLC, which is named after his private estate, is part of his wider vision to promote the revival and growth of industrial businesses in the UK. The Bank will initially specialise in supplychain and trade financing for the industrial sector in the UK and internationally. He added: “I’m eager to promote the development of a deposittaking institution that will become an industry-friendly source of finance to oil the wheels of British engineering and manufacturing, thereby stimulating growth and job creation. “There is a clear gap in the market to form and develop a bank in the UK serving these sectors of the economy as well as the deposit market. The constraints with respect to bank financing for smaller industrial players has not eased since the 2008 downturn and has been a key missing component inhibiting business expansion. There remains great potential for domestic and exportled growth but businesses need better working capital funding

solutions to do so. Wyelands Bank will aim to be an empathetic champion for British industry, offering innovative solutions and benefitting from a greater understanding of industry’s financial needs. We also believe that there is an opportunity to provide depositors with attractive products in an overly concentrated market place.” Mr Gupta said: “I’m truly excited about this opportunity and see the potential for substantial growth, fuelled by the new Government’s industrial strategy and the Financial Regulator’s approach to bring more competition to the banking sector.” The industrialist, whose family group, the GFG Alliance, holds extensive interests in the energy, metals and engineering sectors, has frequently outlined his vision to create a more competitive and sustainable industrial sector in the UK through the application of innovative business models, utilisation of new technologies and increasing use of renewable energy sources. The investment in Wyelands Bank is yet another step towards achieving his wider vision to create a more fertile environment for manufacturing and engineering, in order to champion the renaissance of a globally competitive British industrial base. He explained that the Bank, as a regulated entity, will be owned, governed and operated independently of the Liberty and SIMEC Groups, which hold the industrial and energy

generation interests and assets of the GFG Alliance. He further elaborated: “We have proposed, upon Completion, to appoint an independent Chairman and board of the highest calibre and have retained the existing management who will lead the strategic rollout of the Bank’s business plan. Wyelands Bank is investing in the development of modernised systems and highly-skilled teams which will underpin its future success.” John Howland Jackson, formerly a Senior Managing Director of ING Bank NV and presently Chairman of Nikko Asset Management Europe, will be appointed Chairman of the Bank upon Change in Control and Iain Hunter, who currently serves as CEO of Tungsten Bank PLC, will continue in his role to lead the management team of the Bank. Previously, he was CEO of CIT Bank Limited.

Telechips to Establish USA Headquarters

K Irvine, California will be at the centre of Telechips US operations. Telechips has announced that it is establishing headquarters in Irvine, California for its US operations in a move designed to better serve customers and position Telechips for sustainable, long-term growth. “The opening of our US headquarters is a significant milestone for Telechips. The company now has a world-wide foot print and the ability to serve key customers here in the United States. Telechips is excited to begin selling our SoC products that offer best in class performance and world class quality. We look forward to expanding sales in the Set-top Box and automotive markets.” said Steve Wahl, Telechips USA, Inc.’s first chief executive officer. “We are excited to establish our office in the US. We anticipate rapid expansion in both the US and Europe markets. Having a US presence is a key to our growth plans.” said Jangkyu Lee, chief executive officer and President of Telechips. Telechips will showcase Automotive Infotainment demos at GENIVI AMM on 19th, Oct. 2016, in Burlingame, California. Battleship platform is a standard solution for Display Audio and AVN, integrating OEM proven assets through a collaboration with strategic partners. Telechips provides market verified automotive multimedia, connectivity, and broadcasting chipsets. With this integrated IVI solution, Top tier manufacturers are able to secure stable system with reduced costs and lead time.

DECEMBER 2016 Page 9

EBRD Conference Highlights Private Sector Role in Tackling Climate Change in Food Industry

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INDUSTRY INSIGHT MONTHLY // ENVIRONMENT

At COP22 event, Nicholas Stern says agriculture and climate change “inextricably linked” The private sector must play a key role in addressing climate challenges in the agricultural sector and in helping farmers reduce their own impact on the climate, a conference on the sidelines of the United Nations COP22 climate talks in Marrakesh heard today.

The EBRD’s Managing Director for Economics, Policy and Governance, Mattia Romani, told the conference that the Bank’s investments in agribusiness were all in the private sector, supporting the EBRD’s drive to make food production more sustainable, improve resource efficiency and reduce waste.

At the event staged by the European Bank for Reconstruction and Development (EBRD) – Food and Climate Change: The Role of the Private Sector – leading climate specialist Nicholas Stern said agriculture and climate change were inextricably linked.

The EBRD had observed changes in the way agribusiness companies addressed the global challenge of climate change and environmental issues in general.

He noted that food production methods were already changing as a result of the risks posed by climate change. The private sector was aware that continued profitability of the food and agricultural sector depended on the preservation of environmental resources that were vulnerable to the effects of climate change. The momentum generated by last year’s Paris climate agreement and the new Sustainable Development Goals agreed in 2015 presented “a valuable opportunity for private sector agricultural and food actors to take an active role in finding solutions to the common challenges which lie ahead”, he said.

Clients were seeking to increase competitiveness by being more efficient with water and energy, developing environmentally friendly land-management practices and the promotion of biofertilisers, bioenergy and other eco-products. Such developments could not happen in a political vacuum and support from the public sector was necessary, he said, pointing to remaining gaps in government legislation which had the potential to distort competition both within and between countries. “Water and energy pricing are important, and so are public policies aimed at making sustainable use of resources, protecting vulnerable resources, creating infrastructure that facilitates adaptation to climate change, and developing appropriate financial mechanisms,” Dr Romani said.

The EBRD has been supporting the development of market economies since its creation in 1991 and is now active in 36 countries across three continents – from Mongolia in Central Asia to Morocco on the shores of the Atlantic Ocean, from Estonia on the Baltic to Egypt on the Mediterranean. In helping to promote efficient, robust and resilient economies, the EBRD has placed a high priority on ensuring food security and energy efficiency and combating climate change. It has financed close to 600 transactions in the agribusiness sector, exceeding €10 billion of cumulative investment. At the same time the Bank is firmly committed to increasing its climate finance. Under its Green Economy Transition approach, the EBRD is aiming to scale up its green economy investments from 30 per cent of the total portfolio today to 40 per cent by 2020. “Part of our success will depend on the private sector’s willingness to undertake investments in this area, and agribusinesses are key,” Dr Romani told the conference.

Water and energy pricing are important, and so are public policies aimed at making sustainable use of resources, protecting vulnerable resources, creating infrastructure that facilitates adaptation to climate change, and developing appropriate financial mechanisms.

DECEMBER 2016 Page 11

UK P&I Advises Members of Environmental and Insurance Liabilities Under the Antarctic Treaty

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INDUSTRY INSIGHT MONTHLY // ENVIRONMENT

Annex VI of the Environment Protocol causing potential problems for shipowners. Dingjing Huang, Underwriting and Legal Analyst at UK P&I discuss Annex VI of the Environment Protocol and why ship-owners trading in the Antarctic should be aware of their potential liabilities. “Annex VI of the Environment Protocol, which deals with liabilities arising from environmental emergencies, has not yet come into force, but ship-owners trading in the Antarctic should be aware of their potential liabilities under this regulation. “The Treaty’s Protocol on Environmental Protection came into force in 1998. Its objective is the ‘comprehensive protection of the Antarctic environment and associated ecosystems’. The Protocol imposes strict regulations on all activities carried out in the Antarctic. “One of the most significant aspects of the Protocol is its treatment of environmental emergencies. Parties are committed to providing ‘prompt and effective’ response actions to emergencies arising from activities carried out in the Antarctic area, which include shipping activities. “The obligations and liabilities under Annex VI are the prevention and mitigation of environmental emergencies; responding to such emergencies; and assigning liability for meeting the costs of responding.

“UK P&I Members involved in activities in the Antarctic region are advised to be aware of the potential impacts of Annex VI of the Antarctic Treaty: • Annex VI applies to ‘environmental emergencies’. These are defined as accidental events that result in, or imminently threaten to result in, any significant and harmful impact on the Antarctic environment • The Annex covers such emergencies where they are connected to scientific research programmes, tourism and ‘all other governmental and non-governmental activities in the Antarctic Treaty’ • The Antarctic Treaty requires each contracting party to give notice to the other contracting parties of all expeditions to and within Antarctica • The main responsible person under Annex VI is the ‘operator’. An ‘operator’ is defined to include any natural or legal person, governmental or non-governmental, that organises activities to be carried out in the Antarctic Treaty area. It excludes natural persons who are acting as employees, contractors or agents of a person organising such activities. Compulsory insurance “Annex VI also states that the Secretariat of the Antarctic Treaty shall maintain and administrate a fund, which is known as the Antarctic Environmental Liability Fund (‘AELF’).

“Unlike funds under other maritime liability regimes, the main purpose of the AELF is to reimburse costs incurred by a Party or Parties in taking response action, to the extent that such costs are reasonable and justified. It does not appear to serve as a fund to compensate third parties and the source of the fund will include voluntary contributions from any State or person. “In order to underpin liability, Parties must require their operators to maintain adequate insurance or other financial security (such as a bank guarantee) up to the applicable limits to cover their liability to Parties who step in to take the required response actions where they have themselves failed to do so. “Parties can also require similar insurance or financial security to be provided to cover circumstances where the operator is liable to make a payment to the AELF, to the Party of the non-State operator, or to a party that takes enforcement action against it in circumstances where no Party steps in to address the emergency. “Two questions remain unanswered by the Annex: whether the insurer will be able to invoke defences available to the insured; and whether the insurer may subrogate and claim reimbursement from the AELF fund. These questions need to be addressed before the Annex comes into force.”

The Treaty’s Protocol on Environmental Protection came into force in 1998. Its objective is the ‘comprehensive protection of the Antarctic environment and associated ecosystems.’

DECEMBER 2016 Page 13

World Waste-to-Energy Technologies

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INDUSTRY INSIGHT MONTHLY // ENVIRONMENT

Research and Markets has announced the addition of the “World Waste-to-Energy Technologies Market - Opportunities and Forecasts, 2014 - 2022” report to their offering. Waste-to-energy technology refers to the process of generating energy from any waste material. The energy created from waste may take the form of heat, electricity or transport fuel. Growing concerns across the globe regarding the recycling of waste to preserve the environment and to satisfy the rising demand for electricity is driving the adoption of waste-to-energy technologies. Waste-to-energy technology is currently most frequently used for Municipality Solid Waste (MSW). Presently, more than half of the world’s population resides in urban areas.

The rise of global urbanization coupled with the growing population has prompted the increased adoption of MSW. However, the high cost of these technologies, the complexity involved in integrating the system and stringent environmental regulations are factors which limit the growth of this market. Governments across the globe are attempting to create awareness regarding this technology. They are also providing financial aid and schemes to promote the adoption of waste-to-energy technologies. KEY BENEFITS: This report provides an in-depth analysis of the waste-to-energy technology market with current and future trends to elucidate the imminent investment pockets in the market.

Porter’s Five Force model and SWOT analysis would facilitate stakeholders in making strategic decisions by providing them with insights about current market conditions and important factors impacting market growth. Analysis of key players in the waste-to-energy market would help the stakeholder to understand the key strategies adopted by these companies to increase their market share. Analysis of the current market scenario as well as future estimations through 2013-2020 would enable an understanding of the future prospects of the market.

The rise of global urbanization coupled with the growing population has prompted the increased adoption of MSW.

DECEMBER 2016 Page 15

Global Trucking: 8 Transformational Growth Trends Impacting the Industry

Keeping ahead of the technological, demographical, environmental and geopolitical shifts that alter the commercial truck market will be crucial for truck original equipment manufacturers (OEMs).

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INDUSTRY INSIGHT MONTHLY // TRANSPORT

Economic growth and urbanisation are driving demand for trucks in emerging markets, finds Frost & Sullivan’s Intelligent Mobility team.

New Frost & Sullivan analysis titled, Eight Transformational Trends Influencing the Global Trucking Industry’s Growth Trajectory (http://frost.ly/100), details the latest trends that are shaping the commercial trucking industry, such as digital transformation, autonomous trucking, rise of value trucks, platformisation, and urban trucking among others.

“Keeping ahead of the technological, demographical, environmental and geopolitical shifts that alter the commercial truck market will be crucial for truck original equipment manufacturers (OEMs),” said Frost & Sullivan Intelligent Mobility Research Analyst Silpa Paul. “Penetration in Asian markets will be the key factor in the design of globally scalable platforms for Western OEMs, led by Daimler, Volvo, and the Volkswagen Group. Evolving truck technology has moved well beyond basic telematics to integrate advanced traffic modelling, weather prediction, and social media analytics. In fact, by 2025, OEMs are expected to introduce level 3 autonomous trucks. “Autonomous and connectivity technologies, Big Data analytics, and advanced powertrains are the future of trucking,” said Paul. “This evolution is inevitable as truck driver shortage in North America and even emerging economies such as India, strengthen the case for autonomous trucks.”

Eight Transformational Trends Influencing the Global Trucking Industry’s Growth Trajectory is part of Frost & Sullivan’s Transportation & Logistics Growth Partnership Service program, which offers unique insights on light-, mediumand heavy-duty trucks; city trucks; transmission technologies; telematics; autonomous technologies; and Big Data in trucking.

About Frost & Sullivan Frost & Sullivan, the Growth Partnership Company, works in collaboration with clients to leverage visionary innovation that addresses the global challenges and related growth opportunities that will make or break today’s market participants. For more than 50 years, we have been developing growth strategies for the global 1000, emerging businesses, the public sector and the investment community. Contact us: Start the discussion

Digital technologies for resource management and total cost optimisation efforts are transforming global freight mobility. The advent of green, safe, connected and smart trucks is propelling the commercial truck market to a service-based business model instead of a product-based one. A significant portion of global truck market growth in the next decade will come from Next 11, ASEAN, Middle East, and African countries. Rapid economic growth and urbanisation, coupled with free trade agreements and the development of industrial corridors, are aiding truck market growth in these regions.

Autonomous trucking will be a key product differentiator for OEMs in the next 10-15 years; therefore, they must build marketing campaigns that portray autonomous driving technologies as tools for driver comfort and convenience, rather than a means to replace drivers.

DECEMBER 2016 Page 17

The Five Pillars of Digitisation in the Automotive Industry

Suddenly, things are talking to other things, learning from other thingsâ&#x20AC;&#x201D; and theyâ&#x20AC;&#x2122;re talking to us. www.industryinsightmonthly.com

INDUSTRY INSIGHT MONTHLY // TRANSPORT

K The rapid pace of digitisation is transforming the component-driven automotive sector to a software-and solutions-focussed industry, accelerated by consumers’ evolving digital lifestyle expectations and demands for new and innovative services.

This was the premise of a roundtable debate hosted by Frost & Sullivan, in partnership with IBM Watson IoT, on the eve of this year’s Paris Motor Show, featuring the unique perspectives of leading OEMs’ senior executives and digital leaders. The automotive industry is set for a paradigm shift based on the following five pillars, constituting the next generation of growth opportunities: • Connected Supply Chain • Industrial Internet of Things and Industry 4.0 • Connected and Autonomous car • Digital Retailing and Vehicle Relationship Management • Mobility as a Service (MaaS) In a future connected supply chain, the combination of IoT data with analytics provides manufacturers with a common platform to operate with realtime visibility, promoting greater interdependency, collaboration, dynamic responsiveness and the flexibility to integrate disruptive innovations. This is expected to derive savings of up to $1bn for a mainstream volume OEM. According to Sarwant Singh, Senior Partner at Frost & Sullivan, the auto space is progressing towards mass adoption of 4G LTE and, ultimately, 5G as well as satellite broadband systems.

“The advent of autonomous vehicles will give rise to a plethora of services, and personalisation of the travel experience will be of critical importance. Connected autonomous technologies will increasingly render the car a platform for drivers and passengers to use their transit time for personal activities, which would include the use of media and other service packages,” Mr Singh continues. In the future, we will see an increased focus on packaging services like LBS (location based services), consumer OTA (overthe-air), Infotainment with Mobility, insurance, remote upgrades, prognostics and extended warranty-related services, expected to become revenue streams for car owners. An area where the impact of digital disruption will be particularly prevalent is the unbundling of the automotive retail network. The future of automotive retail will transition from a transactional concept to an experience-based model using digital tools throughout the customer journey. The roundtable forum also mooted the possibility of the car of the future morphing into a Mobility platform. Transactions will be made based on time and miles covered. Most European OEMs are already progressing towards Car as a Service (CaaS).

“The Internet of Things (IoT) has already transformed the customer experience; enhanced operations; and disrupted professions, businesses and even entire industries,” states Sanjay Brahmawar, Global Head & Managing Partner Strategic Business Development at IBM Watson Internet of Things, and comoderator of the debate. “By bringing together the IoT with IBM Watson™ cognitive computing technologies, we are infusing a new kind of thinking into objects, systems and processes. Watson technology understands, reasons and learns, enabling us to uncover new insights, new pathways and new possibilities,” Mr Brahmawar continues. “Suddenly, things are talking to other things, learning from other things—and they’re talking to us. And as that happens, there will be virtually no limits on what we can achieve.” IBM is partnering with the leading automotive companies in the world to combine decades of expertise and apply the power of cognition to bring better outcomes to manufacturers and consumers everywhere. Mr Brahmawar adds: “Watson IoT AutoLAB accelerates our client’s cognitive mobility journey by helping them rapidly connect, activate, and co-create new services.” By 2025, advanced technologies such as automated driving, connected mobility, EV charging, and health and wellbeing solutions will play a pivotal role in improving the experience offered by vehiclesharing operators, according to Frost & Sullivan.

The Future of Mobility consists of technology-enabled, door-to-door, multi-modal travel, encompassing pre-trip, in-trip and post-trip services to improve the user’s journey experience. The event crystallised that a diverse digital strategy, encompassing several elements right from Business Intelligence analytics, Internet of Things (IoT) to deep learning and Artificial Intelligence (AI), will help improve the bottom line of an automaker. The OEM thought leaders conceded that the industry is working on “software-based everything”, from human machine interface tooling, over-the-air and security software, high definition maps to automakers’ increasing diversification into offering their own mobility services. Most major OEMs’ roadmap to digitisation is to develop digital services today, in a bid to eventually develop Car and Mobility as a Service business models, ultimately making the car an integrated part of a connected living solution.

By 2020, Internetconnected vehicles will be the number one application, transmitting over 350 KB of data per minute.

DECEMBER 2016 Page 19

UKâ&#x20AC;&#x2122;s largest Rail Infrastructure Project to Boost Economy and Generate Job Opportunities

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INDUSTRY INSIGHT MONTHLY // TRANSPORT

High speed Railway systems are the only true sustainable high transport capacity solutions, which have the potential to seamlessly connect cities in the present and continents in future. Rail transportation provides the largest margins and can be extremely profitable. Rail infrastructure, which has high initial investment costs, also has tremendous longevity and payback potential. It has been over 150 years since a new rail line has been constructed in the North of London. Earlier, in the 1850â&#x20AC;&#x2122;s the East coast mainline recorded close to 60 million passenger journeys per year. Over the years, passenger journeys have increased significantly to reach 1.7 billion which has urged the UK government to develop its railway infrastructure. The HS2 project acts as a great driver for economic growth and development in the transportation sector. The 57-billion-pound project is a game-changer which will have a great impact on the reduction of journey times while providing thousands of extra seats every day. However, there are still a few major factors which have led people to resist the initiative. The need to demolish housing estates along the proposed route has raised concerns among residents. Any infrastructure project will have an impact on the region it serves; both negative and positive. Even though the project is aimed at achieving a positive outcome, there are a

few temporary setbacks during development process. People will be displaced throughout the route along with existing housing infrastructure which might also cause an emotional distress to the parties involved. In order to overcome these negative impacts, the government needs to create a strategy team to liaise with these residents and make sure that their needs are fulfilled. Even though the Department for transport has offered a compensation of 110 percent of house value to anyone living within 60 meter of the route, the immense pressure that this project will cause on the residents will be inevitable. The government must prepare an action plan to create an economy that works for everyone to remain on the right track. Since the initial announcement of the Second-High speed rail project, the UK government has taken up initiatives to amend certain concerns. The HS2 changed its alignment to increase the number of people it can serve. The new alignment increases the catchment area which will carry over 300,000 people a day and will triple the seats available out of Euston at peak hours, freeing up space on the existing network for additional commuter and freight services. This has enabled the government to make the system more profitable and accessible for commuters. The completion of the HS2 line, which is due in 2033, will increase the number of trains along the mainline, commuter and intercity

systems. During construction, the HS2 is expected to create around 25,000 jobs and support growth in the wider economy which will be worth an additional 100,000 jobs. With the initiation of the HS2 project, the government has established its ambition to build a sustainable transport network which will create new business opportunities for UK and a much needed revitalization of the economy.

About Frost & Sullivan Frost & Sullivan, the Growth Partnership Company, works in collaboration with clients to leverage visionary innovation that addresses the global challenges and related growth opportunities that will make or break todayâ&#x20AC;&#x2122;s market participants. For more than 50 years, we have been developing growth strategies for the global 1000, emerging businesses, the public sector and the investment community.

During construction, the HS2 is expected to create around 25,000 jobs and support growth in the wider economy which will be worth an additional 100,000 jobs.

DECEMBER 2016 Page 21

Aircraft Heavy Maintenance Visit

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INDUSTRY INSIGHT MONTHLY // TRANSPORT

K Technavio’s latest report on the global aircraft heavy maintenance visit (HMV) market provides an analysis on the most important trends expected to impact the market outlook from 2016-2020. Technavio defines an emerging trend as a factor that has the potential to significantly impact the market and contribute to its growth or decline. Avimanyu Basu, a lead analyst from Technavio, specializing in research onaerospace components sector, says, “The original equipment manufacturers in the aviation industry are shifting their focus from supplying of components to providing aftermarket services that include parts manufacture approval components as well as maintenance services.” Airlines offer maintenance, repair, and overhaul (MRO) operations in the market with an aim to develop more opportunities for airline operators, resulting in high revenue passenger kilometer (RPK). Though APAC holds great potential for MRO facilities, the region is challenged with shortage of skilled labor and wage inflation. The HMV market is globalizing at a fast pace owing to the growing number of MRO facilities in emerging countries like India, South America, and China. Request a sample report: http:// www.technavio.com/request-asample?report=53282 Technavio’s sample reports are free of charge and contain multiple sections of the report including the market size and forecast, drivers, challenges, trends, and more. The top three emerging trends driving the global aircraft HMV market according to Technavio aerospace and defense research analysts are:

Trend toward block maintenance Use of energy harvester modules for maintenance operations Robotized maintenance assistance reducing cost and man hour Trend toward block maintenance “For a wide-body airplane like the B747, the number of scheduled maintenance tasks are extensive, and in particular, for higher C and D checks. These intensive checks require the airplane to be grounded for maintenance for several weeks, which is a loss for the airlines,” adds Avimanyu. The block or phase maintenance can be a solution by dividing the higher checks into segmented blocks or phases. A typical phase check provides a thorough visual inspection and operational or functional checks of specified components and systems. Each check includes the requirements of low check A and B, and some part of C and D checks, at required task intervals. Phase checks are carried out at 200-800 flight-hour intervals, which depends upon the packaging plan of work and airline operating variables. Use of energy harvester modules for maintenance operations One of the major challenges of aircraft maintenance operations is the loss of productivity due to inspection of the healthy section of the aircraft. This reflects higher maintenance cost and in turn, a much expensive HMV. Detection of minute cracks as well as visible dents are quite challenging on carbon-based materials unlike aluminum. The use of energy

autonomous sensors, free of electrical wiring, which closely monitors the airframe structure can be a possible solution. A team of researchers from Vienna University of Technology, Austria working closely with EADS Germany developed a technology which can detect the mentioned faults. The technology involves effectual energy autonomous sensors placed in close contact with the airframe. The sensors are equipped with a small water tank for thermal energy storage. Once the aircraft is airborne, the system harvests energy through the temperature difference between the sub-zero temperature outside and the ground temperature of the water tank. Robotized maintenance assistance reducing cost and man hour In an aircraft engine, the blades in compressors and turbines experience high stress levels while converting fluid energy into mechanical energy. In the process, the blades are subjected to wear due to vibration, friction, or by erosion from dust and sand particles. Also, sometimes during hard landings large objects collide with the blades. This causes the blade components made of titaniumor nickel-alloy steels to bend or crack, which obstruct the flow of air resulting in higher fuel consumption. Blades are expensive objects and repairing a blade is almost 50% less expensive than acquiring a new one.

One of the major challenges of aircraft maintenance operations is the loss of productivity due to inspection of the healthy section of the aircraft.

DECEMBER 2016 Page 23

Boom in Mobile E-Commerce Drives Businesses to Enhance Platforms Through IoT and Predictive Analytics

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INDUSTRY INSIGHT MONTHLY // E-COMMERCE

K With the explosion of mobile e-commerce, the number of online communication channels and the volume of customer data is multiplying, prompting software developers to design platforms that can collect and analyse data from all channels. The technologies that will best empower businesses to improve their mobile e-commerce communications and transactions include Big Data analytics, the Internet of Things (IoT), omnichannel communications and ad predictive analytics. New analysis from Frost & Sullivan, Next Generation Technologies for Mobile E-commerce (http://frost.ly/yv), finds that enterprises use automated responses based on data trigger points to personalise and individualise their customer conversation. This translates to greater conversion rates of shoppers to customers, expanding enterprises’ client base and strengthening brand loyalty. “While predictive analytics analyse the volumes of Big Data collected on shoppers, the IoT augments predictive analytics by collecting data from multiple points of customer contact, including brick and mortar stores, websites and telephone calls,” said TechVision research analyst Mike Valenti. “Integrating these technologies supports the goal of omni-channel sales and creates a seamless shopping experience at any venue.” Many small- to medium-sized enterprises are unaware of the volume of mobile e-commerce and believe they need personnel with high technical expertise to handle the transactions and data. Enterprises find it difficult to build a bridge between e-commerce conducted on mobile devices and desktop communications. They will find it easier to navigate between the two once they start considering mobile e-commerce as complementary to other types of online commerce, rather than as a separate or competing entity.

Meanwhile, the development of omni-channel technology platforms is proving vital for targeted e-commerce and marketing. It is important that the marketing campaigns be individualised and device-agnostic to suit the device preferences of customers. Crossdevice conversion technology enables enterprises to access valuable customer data from multiple devices. “One of the main challenges of managing content on different devices is the variety of screen sizes where the interactive data is displayed,” noted Valenti. “This has fuelled the innovation of responsive templates that provide easily used interfaces on laptops, tablets and/ or smartphones.” Another exciting addition to the mobile e-commerce experience is augmented reality (AR). Using this technology, an online shopper can virtually experience the product, such as knowing the way a necklace will appear on the shopper or having a driver’s view of a new automobile. Enabling consumers to store their AR experiences on a mobile device adds a new link between the enterprise and its customers. Enterprises are also addressing the important issue of security, as smart phones and tablet computers can be hacked or even physically stolen for account intrusion. Enterprises now offer biometric access to mobile e-commerce, which is going a long way in enhancing the security and speed of transactions.

Next Generation Technologies for Mobile E-commerce, part of the TechVision subscription, offers a detailed account of the technology trends that will support the expansion of mobile e-commerce from 2016 through 2020. Frost & Sullivan’s global TechVision practice is focused on innovation, disruption and convergence, and provides a variety of technologybased alerts, newsletters and research services as well as growth consulting services. Its premier offering, the TechVision program, identifies and evaluates the most valuable emerging and disruptive technologies enabling products with near-term potential. A unique feature of the TechVision program is an annual selection of 50 technologies that can generate convergence scenarios, possibly disrupt the innovation landscape, and drive transformational growth. View a summary of the TechVision program by clicking on the following link: http://ifrost.frost.com/ TechVision_Demo. For complimentary access to more information on this research, please visit: http://frost.ly/z7www. frost.com

Integrating these technologies supports the goal of omnichannel sales and creates a seamless shopping experience at any venue.

DECEMBER 2016 Page 25

The E-Commerce Revolution

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INDUSTRY INSIGHT MONTHLY // E-COMMERCE

K • 98% of new visitors to any given e-commerce website do not make a purchase due to inconvenience and lack of trust in new websites; • Expressly reduces registration and payment processes from an average of 7 steps to 1-click; • Expressly cuts through the noise of online shopping, suggesting bespoke shopping experiences across different websites and apps; • Expressly built in less than 6 months a network of 200 online retailers, who acquire customers from other network members in a sector which demands convenience, security, and efficiency.

Expressly is a novel solution to the tedium of finding websites that are relevant to your wants or needs, and it also entirely eliminates the frustration of form filling whilst shopping online, a major cause of friction. When first making a purchase from an unfamiliar online store, consumers have to go through an all too familiar procedure: register, create a password, verify email, add shipping address, billing address, a payment method and so on. Although online shopping is getting ever more popular, the process of shopping online keeps getting lengthier and more complicated. If entering a new store was as complex (off-line), the equivalent image would be getting ID-checked before being allowed to walk into any high-street store! E-commerce is championed for its convenience, so surely there must be a way to cut through the noise and make online shopping the ‘1-click’ experience it’s supposed to be? – Enter Expressly… Expressly is the brainchild of two London based ex-McKinsey consultants and entrepreneurs, Fabrizio Fantini & Andrea Tricoli; the Harvard and Columbia graduates, respectively, developed Expressly in response to their painful experience with new websites.

“We found it really annoying – says Andrea – having to register with every new website, even when navigating from another one that already knew us: we were wasting so much time confirming our email over and over, typing our home address, and remembering weird coupon codes. We asked ourselves – is there a better way?” Expressly has the industry’s largest network of registered e-commerce stores and allows retailers to acquire customers from one another while providing their own consumers with offers which are in line with their buying habits, style, want and need. Expressly believes this cuts out the major frustration of online shopping, while not compromising on security and privacy compliance. “There are so many websites out there, finding ones that you really like and would buy from can be a time-consuming nightmare – continues Andrea – and then up to 98% of new visitors never end up buying anything. But with Expressly, over 200 stores in the UK will never need to ask users to register again – no forms, no passwords – and this is just after our first 6 months since soft launch”.

Expressy represents an elegant solution to the pitfalls of online shopping, boosting ease of use, and streamlining the user experience through a secure and private back-end data transfer. Once a consumer is registered on an Expressly website, they can fulfil their order on any partner site with 1-click: no registration, no password. Tailored, secure offers to shop in 1-click on any other site. Expressly is, much like the contactless card for off-line, a means to achieve extreme convenience when buying online. Eventually they will foster an Amazon-like marketplace, but across all online stores rather than just on Amazon. 200 UK digital merchants are already part of their growing network for direct customer acquisition, more info can be found on buyexpressly.com

But with Expressly, over 200 stores in the UK will never need to ask users to register again – no forms, no passwords – and this is just after our first 6 months since soft launch.

DECEMBER 2016 Page 27

D+H and Malauzai Software Announce Partnership to Drive Disruptive Digital Offerings in the FinTech Industry

K Firms join forces to power next generation of retail and business experiences, enabling banks and credit unions to meet the needs of evolving customer demands. DH Corporation (“D+H”), a leading provider of technology solutions to financial institutions globally, and Malauzai Software Incorporated (Malauzai), a privately-held software development company that is transforming the technology behind mobile and Internet banking, have signed a new strategic agreement to add Malauzai to D+H’s digital ecosystem. Through this partnership, the firms will utilize their market-leading solutions to help power multi-channel, nextgeneration retail and business experiences. D+H is expanding its successful relationship with Malauzai, which was originally established in 2014. Through the previously established relationship, D+H and Malauzai delivered a leading-edge, intuitive and secure mobile banking solution that was deployed at numerous financial institutions. The success of the mobile application, synergies between the teams, and D+H’s ongoing commitment to providing innovative, relevant solutions were natural tie-ins to deepening the relationship. The new partnership will allow D+H to

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further focus on digital channel, retail and consumer payments and core platform integration to help financial institutions expand their competitive edge in a rapidly evolving market and drive growth in the digital space. “FinTech has revolutionized the customer experience and it is critical that financial institutions embrace digital solutions in order to remain relevant in today’s ever-changing marketplace,” said Spencer Jones, Group Head, Enterprise Solutions for D+H. “The decision to further integrate Malauzai into our D+H digital ecosystem demonstrates our commitment to enhancing existing digital solutions and bringing to market new offerings in an agile fashion, powering next generation platforms for the banking industry.” “We’re thrilled to extend our partnership with the D+H team after a successful relationship over the last two years,” said Tom Shen, CEO of Malauzai. “As customers continue to demand better user experiences and faster innovation from their financial institutions, we believe our partnership offers solutions that meet the highest standards for the industry.”

INDUSTRY INSIGHT MONTHLY // DEALS

Avondale Complete the Sale of Calder Foods to Flagship Food Group

IronPlanet® and TruckPlanet® Launch Fleet Services Offerings

In 2002 Nigel Harrison and Paul Baker established Calder Foods, a specialist chilled food manufacturer, taking the business from strength to strength to a £22m turnover. Their goal was to bring another party to the business to increase the value even further. They instructed Avondale to secure an acquisition that would not only be financially rewarding but also enabled them to retain a stake and active involvement in the business.

IronPlanet®, a leading online marketplace for selling and buying used equipment and other durable assets, in conjunction with its TruckPlanet marketplace, on 10th November launched Fleet Services featuring IronPlanet Truck Locator. With access to over $200 million in Class 8 and other trucks, Fleet Services, and particularly IronPlanet Truck Locator, will uniquely meet the needs of multi-unit and fleet buyers.

Avondale’s exceptional insight into the food industry enabled them to be extremely targeted in their approach to potential acquirers. Of the six parties Avondale brought to the table, five submitted indicative offers. Ultimately it came down to two offers; one trade and one private equity, and after much negotiation and deliberation the offer from Flagship Food Group, a US owned multi-national food service specialist, was accepted. Founding members Paul and Nigel, who will remain in their current positions as joint MDs of Calder Foods and retain shares in the Flagship, commented “This is one of the toughest business and personal decisions we have ever had to make. Not only did Avondale bring the right acquirers to the table but they also coached us selecting the best offer and partner for the future of Calder. We are delighted

to be joining the Flagship family. The partnership provides a golden opportunity to develop the Calder Foods portfolio, taking advantage of Flagship’ Europe’s wider customer base in the foodservice sectors to promote sales.” Commenting on the acquisition Russell Maddock, CEO of Flagship Europe said: “Calder Foods has an exceptional reputation within the foodservice sector and their products will provide the perfect complement to our own portfolio of ‘Food to Go’ products for this marketplace. We look forward to a smooth transition and to further developing both the business and the ‘Love Fresh’ brand under the Flagship Europe umbrella.” www.avondale.co.uk

“IronPlanet and its TruckPlanet marketplace have become go-to destinations for the disposition and purchase of quality used heavy equipment and trucks,” said Paul Blalock, Vice President, Truck Sales, IronPlanet. “With our new Fleet Services program, and IronPlanet Truck Locator, we are now also the destination for fleet buyers of all sizes. If you want to buy one late-model sleeper or daycab, that’s great and we have what you want, but now if you want to buy 25 matched trucks that are all trade-term ready, IronPlanet Truck Locator will help you manage or grow your fleet quickly, easily and economically all at once.”

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• While all of IronPlanet’s 1.5 million registered users worldwide can participate, IronPlanet Truck Locator is tailor-made for buyers who want to buy in bulk, who are not looking to buy one at a time during on-site or online auctions, and who want to work with a dedicated sales team that knows the details and is close to the deal. IronPlanet’s Fleet Services will: • Control revenue and increase the speed of cash recovery for OEMs and other sellers;

Offer buyers access to over $200 million in fleet inventory from leading truck brands; Facilitate bulk sales that leverage IronPlanet’s leading technology and marketplace advantages; Meet the needs of fleet managers who have limited time and need access to a broad multi-unit buying format they can trust; Include industry-leading customer care from IronPlanet and TruckPlanet’s Inside Sales Team; Expand to other equipment classes such as IronPlanet’s new shipping container inventory, available soon for multi-unit purchase and; Provide a worldwide reach to make national and international buying, selling and delivery of fleet inventory as seamless as possible.

Though commercial trucks will be of immediate focus, IronPlanet anticipates rolling out this format to other asset classes, including storage and shipping containers, in the near future. More information on IronPlanet.com and TruckPlanet.com For more information, visit www.ironplanet.com

DECEMBER 2016 Page 29

Severn Trent’s £78.5 Million Deal to Buy Dee Valley Water

K What Lies Ahead for the UK Water Industry? Fredrick Royan, Vice President Environment & Water, Frost & Sullivan, comments on the digital disruptions and growth opportunities for the UK water industry.

and benefit from the efficiency gains, and also enhance customer experience and satisfaction. We will certainly see this being mirror in the transformation of Dee Valley as the acquisition process by Severn Trent is set in motion.”

“The UK water utility marketplace is set to witness a significant change in April 2017 with the opening of the retail market. This has presented an opportunity for water and wastewater service companies such as Severn Trent to explore opportunities of consolidation in the UK market, with water only companies in neighbouring regions being of high interest and prospect.

Digital disruption is increasingly influencing the water industry, which has been rather risk-averse and traditionally seen as a brick and mortar business. Ms. Garfield, who was earlier leading British Telecom, has been able to bring in new ideas from the IT sector, as the water industry begins to benefit from broader convergence trends.

“For instance, in 2015, South West Water (SWW) announced its plans to acquire Bournemouth Water, which again allowed SWW to consolidate its stature in the region with the acquisition of a neighbouring water only utility and integrating its assets and resources with the aim of capitalising on the efficiency gains. “For what concerns Dee Valley Water, it is worth highlighting that the company’s average household bill was one of the highest among water only companies and Severn Trent will be aiming to combining assets and services in an effective manner with the aim of improving efficiencies, which in turn should translate into a tangible benefit for customers in the form of a lowering of average household bill. “It is also worth highlighting that with Liv Garfield taking over as CEO at Severn Trent, she has been able to stamp her signature in the overall strategy of Severn Trent to leverage the power of digital

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The UK water utility industry currently includes companies with two broad business models, with 10 companies providing water and wastewater services. The number of water only companies has already decreased from 10 to 8 over the last couple of years, with the purchase of Bournemouth Water by South West Water and Severn Trent purchasing Dee Valley. We expect this trend to continue as there still exist opportunities for consolidation in the UK water utility industry.”

INDUSTRY INSIGHT MONTHLY // DEALS

UK and India Agree to Increase IP Cooperation

K Prime Minister Theresa May and Indian Prime Minister Narendra Modi on Tuesday 8th November 2016 have witnessed the signing of a major Intellectual Property (IP) agreement between the UK and India. The Memorandum of Understanding (MOU) was put together by the UK Intellectual Property Office (UK IPO) and the Indian Department of Industrial Policy and Promotion.

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It will help enhance bilateral cooperation on a range of IP related activities. For example: Exchanges of best practice in the field of IP, for example, streamlining the processing of registrations for patents, trademarks and designs; Technical exchanges which can involve supporting enforcement authorities and assisting mechanisms for the judicial resolution of IP disputes; Outreach activities including business advice on how to value and secure IP and; Education campaigns to increase awareness and respect for IP for the general public.

The agreement, signed by Adam Williams, acting director International Policy at the UK IPO, and joint secretary Rajiv Aggarwal of India’s Department for Industrial Policy and Promotion, reflects the importance of Intellectual Property for economic and social development in both regions. Baroness Neville-Rolfe, the UK’s Minister of State for Energy

and Intellectual Property said, “I have been very impressed with the rapid progress India has made with its intellectual property regime in recent years. A strong IP system is an important catalyst for running a modern innovative economy. “It makes perfect sense for the UK and India to share best-practice and look to improve our respective IP systems as much as possible. I look forward to working closely with our India counterparts to ensure that innovative British and Indian businesses can thrive whether their operation is in Manchester or Mumbai.” Sir Dominic Asquith KCMG, British High Commissioner to the Republic of India added that, “the signing of a MOU on intellectual property between India and the UK is an important development that will promote innovation and creativity in both countries. It will help the UK to support India’s drive to improve ease of doing business, thereby advancing trade, investment and economic growth.” www.gov.uk

Albion Ventures Completes Acquisition of OLIM

K Albion Ventures one of the largest independent venture capital investors in the UK, announces that it has successfully completed the acquisition of OLIM Limited from Close Brothers Group. The acquisition was first announced on 27 September 2016, subject to regulatory approval. OLIM is a fund manager specialising in UK quoted equities, with around £500 million of assets under management. The completion of the acquisition further diversifies Albion’s investment management expertise into quoted equities and increases its assets under management and administration to over £950 million.

specialises in UK quoted equities and has approximately £500 million of assets under management. Its particular strengths are in charities, for which it manages £240 million, and in investment and other trusts and private clients. OLIM has been part of the Close Brothers Group since 2000.

Albion Ventures is a UK investment management business, with combined funds under management or administration of over £950 million, including six venture capital trusts, Albion Community Power PLC (a renewable energy generator), Albion Care Communities, the UCL Technology Fund and, following this acquisition, OLIM. Albion was founded in 1996 and became independent of Close Brothers Group in 2009. Albion Ventures LLP and OLIM Limited are both authorised and regulated by the Financial Conduct Authority. Founded in 1986, OLIM is a specialist investment management company that focuses on delivering impressive investment returns and a superior client service. OLIM

DECEMBER 2016 Page 31

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