MTD
MTD is a professional and international service provider in the field of temporary water infrastructures, including clean drinking water and the associated wastewater processing.
About MTD Pure Water
MTD is a professional and international service provider in the field of temporary water infrastructure and (waste) water treatment. This means specifically:
- supplying and possibly filtering drinking water;
- pumping drinking water;
- pumping waste water; and
- filtering waste water.
Water is an essential factor in the organization and success of events and business activities. The infrastructure for this often has to be constructed temporarily and the quality of the drinking water must be of impeccable quality. What matters is that the water is safe at the point where it is consumed. MTD takes care of that.
In the Netherlands we provide temporary water supplies for concerts and festivals such as Lowlands, Mysteryland and concert at sea, national events such as the KLM open, the HISWA outdoors and Sail Amsterdam.
We supply temporary water infrastructure worldwide for the most prestigious projects including the Olympic Games, the FIFA World Cup since 2010, the European Football Championships since 2008, Cirque du Soleil worldwide since 2002, Volvo Ocean Race and Formula E races worldwide.
MTD is the globally recognized partner for demanding organizers of global events. It always concerns reliable, safe and increasingly sustainable solutions. As a partner, MTD takes care of the design of the infrastructure, the installation of the infrastructure, the equipment and the logistics during construction and dismantling. MTD provides solutions for all facilities that cannot do without water: drinking water, sanitary facilities, kitchens. MTD also provides solutions for the purification and disposal of waste water.
Explanation of water supply
The water infrastructure starts with the water supply, the “main connection”. This could be an existing source such as a fire hydrant. If there is no source at a location, water can be supplied via tankers. We install so-called “break tanks” or “static tanks” from a water supply. A static tank is a tank with an interruption (air) of the permanent water infrastructure and temporary water infrastructure. The air gap prevents drinking water from flowing back into the fixed water infrastructure. We connect storage/buffer bags to these static tanks. This increases the capacity of the water infrastructure.
We connect so-called “booster pumps” to the buffer bags. These booster pumps increase the pressure in the water infrastructure. The water infrastructure is then connected to the various facilities where the water is used. We do not supply the facilities ourselves, such as showers, toilets and kitchens. We do provide some facilities, such as drinking water supplies and hand wash basins. The wastewater is then pumped via wastewater pumps to wastewater storage bags and discharged.
Finally, the wastewater can be treated so that it can be safely reused. Additional services include drinking water filtration and waste water filtration.
History
MTD was founded in 1987 as MTD Expotechniek in Liempde and has been active from the start in supplying temporary water infrastructures for events. In 1987, one of the most important projects was Burgundisch Den Bosch after the start of connecting the stands at the Werktuigdagen in Liempde. More projects followed. Bourgondisch Den Bosch is still a project where MTD provides the temporary water connections. Since the first project for the Werktuigdagen in Liempde, MTD has successfully carried out projects for several Olympic Games, FIFA and UEFA championships and the Volvo Ocean Race. MTD will also provide temporary water supplies for various locations during the upcoming Summer Olympics in Japan
Events are MTD's largest, but not the only area of activity. The demand for temporary water solutions is also high and growing for the Expo market (trade fairs, conferences, summits) and the Industry market (including offshore, construction, peace operations). In the coming years, MTD aims for a growing market share in the Events, Expo and Industry market segments.
MTD's home base is in the Netherlands, in Tilburg. Due to the many international activities and the need for local knowledge and the availability of equipment, branches have been created in 10 countries in Europe, North and South America and Asia, including through acquisitions and mergers. MTD has 1 permanent employees as of January 2020, 121. During projects they work with a flexible workforce of 57 to 125 additional freelancers. Together, these branches, in dozens of countries, work on more than 1500 projects per year.
Milestones
Turnover and profit
In odd years there are fewer major events than in even years. There are also more events in the summer than in the winter. We also notice this in our turnover. We therefore have a so-called cyclical business. These cycles depend on the season (summer or winter) or year (whether or not there are Olympic Games or major football tournaments). These influences have an impact on turnover.
On the next page you will see a schematic representation of the impact of cyclical influences on our annual turnover:
Important!
The turnover from 2011 to 2018 is based on the consolidated annual accounts for those years. The 2019 turnover is based on internal figures. These figures have not (yet) been checked by the accountant.
The turnover for 2020 is a forecast. We don't know how next year will go. We have made assumptions about this. You can read more about these assumptions in chapter 7.8 of the prospectus . They may be wrong after all. It is therefore uncertain whether this forecast will come true. You cannot derive any rights from this. You should not make your decision to invest in our bonds based on this forecast.
Key Figures
Think Global, Act Local!
The market in which MTD dominates is a global market and needs a global approach with a local presence. By working internationally, international fame will grow and demand from customers who operate internationally will grow.
This is a trend for all market segments. The network of MTD branches around the world guarantees a steady turnover from a large number of international customers. The market in which the company operates can be divided into three Business Lines:
- Events: The events market: these are all events in the field of sports, culture, festivals & concerts, outdoor fairs & conferences and company parties and anniversaries.
- Expo: The expo centers market: these are all trade fairs, conferences, summits and relevant events that are held in and outside the expo center.
- Industry: The industrial market: these are all temporary projects for construction, offshore and onshore, mining, water companies, defense/NATO, World Bank/United Nations and NGOs.
Customers and partners
Markt
The rental of temporary water infrastructures and water treatment will only increase explosively in the coming years. MTD is only at the beginning of an international expansion. This is partly due to:
- Further globalization and a wave of consolidation of event companies.
- Sustainability | Strong focus on 'legacy' at sporting events, more and more temporary construction is taking place.
- Improving cost efficiency | International sports organizations want Global deals. They all struggle with too few 'host cities' due to the expected high (local) costs.
- Back to core business | You also see a trend in industry and at exhibition centers that companies are returning to their core business and hiring services (such as MTD offers) instead of doing it themselves.
Competition
MTD is a niche player in the world of temporary water infrastructures for events. In this niche, MTD has profiled itself as a global plumber. MTD determines the market price and the price level of local competition is 40%/50% below MTD's price level.
MTD determines what the standard is in the market. These MTD standards are adopted in public tenders for events throughout the world. For example, Tokyo Olympics requests water monitoring in the tender, as MTD offers. MTD does have competition locally, but there is hardly any other provider of temporary water infrastructures, active with offices and/or storage in multiple countries.
MTD's competition can be divided into the following groups;
- The local customised plumber (focused on temporary provision) with a few employees, who are represented in all countries in which MTD is active.
- The permanent plumber (aimed at permanent supply) who also organizes an occasional event.
- The sanitary ware supplier who, in addition to non-core business, also installs temporary water.
- The electricity rental company for events that also installs temporary water in addition to, if not core business.
MTD is only at the beginning of an international expansion. It is expected that competition for MTD will not increase internationally.
Management
Hans Verhoeven – Managing Director
Hans Verhoeven (1957) has been owner and managing director of MTD Holding BV since the takeover in 2006. Within MTD, Hans focuses on MTD's customer portfolio and acquiring new clients all over the world.
Structure
MTD is now represented in 12 countries:
* No physical office and/or warehouse, but a legal entity.
Organogram
What does our company look like?
We are part of a group of companies. You can also see how the companies are connected and who the directors are. In some countries it is legally required to have two shareholders. That is why some of our subsidiaries also have this. The shareholders in those cases are MTD Holding BV and MTD International BV
Below you will see an overview of our structure as of February 1, 2020.
Loan purpose
We want to borrow a maximum of € 3.500.000 from investors. We want to grow further with the money. Growing by investing in materials, repaying the combination facility of ABN AMRO Bank NV, investing in sustainability and the organization, and by maintaining reserves for working capital. We explain this briefly below.
The investments for the Olympic Games in Japan include:
- more than 500 pumps and pressure boosters;
- about 100 kilometers of tubing;
- approximately 3700 brass and plastic dividers for distributing water;
- approximately 1000 buffer bags and buffer tanks;
- approximately 7.800 links.
We note that investments in materials are in principle made through MTD Fleet Services BV. MTD Fleet Services BV will therefore also be the company that purchases the material. They will therefore also become legal owners of the material. If it is financially more advantageous to purchase (part of) the material through MTD Japan LTD or MTD Japan KK, then they will buy the material. They then become legal owners of the material.
Risks and certainties
Investing always involves risks. The main risk you face is that MTD will not have the money to repay you or pay the interest. This could happen, among other things, if MTD does not achieve sufficient turnover during the Olympic Games in Japan. Then you may not receive any repayment of the loan and you will not receive any interest.
A conditional surety is issued by CEO Hans Verhoeven to the Obligatiehouders Belangen Foundation € 500.000.-.
For the full risk analysis and details of the bail, please refer to the prospectus and the information document.
Sustainability investments
The proceeds from the emission will also be partly used in sustainability investments:
- water monitoring | real-time water monitoring with sensors and water meters that generate data to implement sustainable designs and reduce water consumption
- Innovation in drinking water savings; the further development and use of water fountains, among other things, to significantly reduce single-used plastic bottles at festivals and sports events
- innovation in reuse of wastewater filtration, development of (environmentally friendly) wastewater filter installations to stimulate the reuse of wastewater
These investments in innovation allow us to deliver quality, safety, reliability and efficiency anywhere in the world. This gives MTD a unique market position.
Rates
The rates charged by NPEX are shown below.
| NPEX account | free |
|---|---|
| Deposit money | free |
| Registration fee for issue | 1% one-off |
| Service fee | 0,05% per month* |
*To be calculated based on the nominal value of the bonds in the portfolio on the coupon payment date and to be offset against the (monthly) interest payment.
