Materials. Managing Your Waste. Sustainability Report 2011

1 Materials Managing Your Waste Sustainability Report 2011

Sustainability Report 2011 Materials Managing Your Waste

Contents 3 Preface 5 Sustainability Report 6 Pride 6 Trends Gazellen 7 Policy 8 Rebranding 11 Passion 14 Family Day 15 Launch of a new product line in Dottenijs 18 Waste Framework Directive 20 Mano Mundo 22 VANHEEDE POLYMERS & COMPOUNDS laboratory 23 Belgium s first hybrid waste collection truck! 24 National distribution 26 Structure 28 Planet Fire, Water, Air and Earth 30 Care for the environment 31 VANHEEDE FRANCE 44 People 46 Policy 47 Employees 48 Safety 50 Profit 56 Key figures 57

Materials Managing Your Waste Planet People Profit Sustainability Report 2011 Passion Pride

Preface 5 I am proud to present the 2011 sustainability report. This sustainability report serves as a means to inform our stakeholders about our company. 2011 was a good year, a year on which I can look back with pride. A year in which we as a company have once again evolved in a most positive manner, across all parts of our company. We continue to look to the future with vision and enthusiasm. Both our company and our sector are constantly evolving. The implementation of the European waste directives demands thorough adaptation from us as a company, but also from our clients. As a team we are ready to implement this new legislation and to serve our clients correctly. Our company also further improved its national coverage in Belgium this year and established the foundations for further growth in France. Every day we endeavour to work with an eye to the future. We also regularly adjust our policies to assure and carry out our services as efficiently as possible and to optimise our high-quality service. Our company currently has a workforce of more than 500. In terms of organisation and structure, we also put a great deal of effort into maintaining the cohesion between our employees and sending out a common message based on our company values. As a company we seek to continually evolve, and we will continue to invest in quality, processes, installations and the services. However, we will continue to respect our company s basic values: our familiar 3 Ps for sustainability (People, Planet, Profit) supplemented with Passion and Pride. Each of the themes raised above is covered in detail in this sustainability report. As you will probably have noticed, however, this sustainability report also has a new look. Our aim is to highlight the evolution of the market and the evolution in our sector through rebranding: rebranding with respect for the past, but especially with an innovative look to the future. A future to which we look forward with great optimism! David Vanheede Chairman of the Board of Directors, Vanheede Environment Group nv

Pride in what we do Pride Sustainability Report 2011 Pride

Trends Gazellen 7 VANHEEDE ENVIRONMENTAL LOGISTICS wins Trends Gazellen On 14 March 2012, the winners of the Trends Gazellen West- Vlaanderen 2012 were announced in La Brugeoise in Bruges. VANHEEDE ENVIRONMENTAL LOGISTICS won the first prize in the large companies category. We are, therefore, extremely proud to call ourselves Gazelle Ambassador for 2012 for West Flanders, having been recognised as being the fastest growing company in West Flanders in terms of workforce, turnover and cash flow. Outlook for the future and workforce This splendid recognition would have been impossible without the years of hard work by our employees and a clear vision of the future by our company. In recent years we have worked tirelessly to create a clear-cut and professional company structure that will allow our employees to work with a high level of independence and motivation. A motivated workforce almost automatically means good service and satisfied clients. Constructive relationship with our clients We also pursue an open and transparent understanding with our clients and suppliers, to allow us to work together as partners and so build up a highly constructive long-term relationship, ultimately resulting in a win-win situation for everyone involved. These pillars form an important reason for our growth and have led to this prestigious award. Gazellen West-Vlaanderen: International market Although VANHEEDE ENVIRONMENT GROUP is justifiably proud of its roots in West Flanders, it currently has 11 sites spread throughout Belgium and Northern France. We also process waste flows under our own management from the Netherlands, Germany, Luxembourg, the UK and other countries. IN THE MEDIA After we were awarded this prize, we appeared in many media: Kanaal Z, Trends, Ondernemers, Radio 2, Weekbode and others.

8 1. Policy: in brief We regard the policy of VANHEEDE ENVIRONMENT GROUP as a dynamic spear formed by people: a clear outlook to the future, with our vision and mission as the spearhead. Our vision and mission inextricably lead to our strategy with the related targets and KPIs. These elements are influenced by our company values, which are inspired primarily by the family values inherent in our company. Important parts of our policy are the human aspect and the involvement of all our stakeholders: both internally, between colleagues and departments, and externally, for all our stakeholders. Working together to build a superior, sustainable future! 2. The policy built up around 4 policy elements VANHEEDE ENVIRONMENT GROUP has a clear-cut policy that is built up from deep-rooted symbiosis between various policy elements: Vision Mission Strategy Targets The relevance of the policy and the resulting targets is continually appraised at the management meetings and during the Board s assessment of the management system. During that same assessment, a programme of actions is used to define the actions needed to achieve the targets. 2.1 VISION To use innovations to shape the past in readiness for the future. 2.2 MISSION VANHEEDE ENVIRONMENT GROUP seeks to be a sustainable business that offers its clients the most efficient solutions for managing waste, materials, green energy and environmental aspects. We employ a high-quality, professional and innovative approach that offers added value for all our stakeholders. 4 strategic axes Progressive entrepreneurship Excellent processes Strategic & operational targets "Objective" is gewijzigd in "Targets". Wordt er een nieuw beeld aangeleverd? We seek to be a sustainable company To use innovations to shape the past in readiness for the future Sustainability Report 2011 Pride

Policy 9 For VANHEEDE ENVIRONMENT GROUP, sustainable entrepreneurship implies attaining the best results for all its stakeholders with a minimal impact on the environment. VANHEEDE ENVIRONMENT GROUP nv s stakeholders are its employees, the environment, its clients, its suppliers, its contractors, public authorities, media, the Board of Directors, banks and insurance companies. 2.3 STRATEGY VANHEEDE ENVIRONMENT GROUP s strategy: Grouped into 4 strategic axes: 1. Logistics Integrated waste management Custom container lease Intelligent logistics Sorting and transhipment activities Service outlet 2. Services Collection and sorting of hazardous and nonstandard waste Interventions and advice Cleaning and tank transport 3. Raw Materials Waste into raw materials 4. Renewable Energy Waste into energy Progressive entrepreneurship 1. Entrepreneurship and the requisite flexibility are obtained by creating a mentality in which our people can make their own decisions wherever possible. It is for this reason that we organise our activities into business units. Each business unit can develop itself further and specialise in its own core business. The structure of multiple business units, each with its own responsibilities, strengthens this entrepreneurship. 2. Progressive entrepreneurship is obtained by supplementing this company structure with a matrix structure, in which support activities and core activities can influence each other (under the influence of the market/legislation etc.). This allows us to adjust more quickly where necessary. This also visibly enhances the cohesion between the different business units. Excellent Processes Both our human capital and our production lines need to be of excellent and high quality within their fields. This is the only means by which we can set ourselves apart from the rest of the market. 1. Besides the operational processes, processes that influence decisions or the organisational form must also be uniform, well-considered and efficient. 2. The machinery and equipment that we use to collect and process waste must be of the highest standard. 2.4 targets We use our strategy as the basis for determining concrete targets, along the lines of primary, operational and management processes. The strategic targets must result in operational targets, in accordance with the SMART principle. SMART stands for: Specific Measurable Acceptable Realistic Time-bound Our SMART targets are guiding: they indicate what we seek to achieve and direct the actions of our people and our company. They also indicate when which results need to be attained.

10 Policy 3. Company values Every facet of the policy elements on which the company s policy is based is determined by our company values. PEOPLE-PLANET-PROFIT PRIDE PASSION SUSTAINABILITY and CORPORATE ETHICS comprise a long-term vision, within which we pursue organic growth, taking into account the relationship between the separate Ps. An open, honest and sincere relationship allows us to look each other in the eye and work towards a win-win situation for everyone involved. By communicating with each other in a transparent manner, we will achieve better results and create more simplicity in what is a complex world. WE CAN THEN take PRIDE in what we do! By pursuing personal contact with our stakeholders and by stimulating this empathic relationship between everyone involved, we take and give more responsibility for all our employees, resulting in a great sense of involvement and strong commitment - the drive to realise and innovate something - creativity in the search for solutions So that we can do our job with PASSION The management fully supports the substance of this policy and the management system based on it. As such, the management also provides the necessary resources to implement, maintain and improve this system. Our directors, our managers and our entire workforce are fully involved in applying these policy principles both within and beyond the organisation. Sustainability Report 2011 Pride

Rebranding 11 VANHEEDE ENVIRONMENT GROUP: Rebranding 2012 VANHEEDE ENVIRONMENT GROUP is ready for the future. Our company has evolved into an integrated environmental group and an established player within our sector. It goes without saying that a modern and appealing image is of the greatest importance. To accentuate the evolution of our company and to present ourselves in the market in a contemporary manner, we decided to adapt our house style, while maintaining due respect for the past. Ready for the new challenges in the environmental sector: a waste disposal company ready for the future! Our environmental sector is often praised for its progressiveness and sustainability. Numerous publications describe the waste and materials sector as one of the spearheads of our national and European industry. Waste management involves much more than collecting waste from our partners. The challenge is to organise internal waste logistics within the companies and to give purpose and added value to our waste flows. Stimulating in-depth proficiencies It is from this point of view that we restructured our company several years ago. By organising various activities into separate business units, each with its own management, we stimulated the know-how and proficiencies present in those business units. Using this structure, our company will continue its efforts to seek out the best and most sustainable solutions for our clients waste management.

12 Rebranding Our environmental sector comprises an extensive range of waste flows and materials. As such, we endeavour to create specialists in each segment who interact directly to obtain advice from each other. Each business unit will continue to bear the name VANHEEDE. This will strengthen the synergy between the business units, but more importantly should make it clear that the corporate values are overarching. THINK GLOBAL, ACT LOCAL: ACQUISITIONS CONSOLIDATE NATIONAL COVERAGE We also strongly encourage the principle of Think global act local, both in the literal sense and in the symbolic sense. As an environmental company, we need to think in terms of a sustainable method of cross-border waste processing. Long-term thinking and the vision of the world in which our children and our grandchildren will live should be key here. In addition, our national coverage was optimised via acquisitions in the Genk, Liège and Luxembourg regions. Literally and figuratively, it is our aim to be very close to our clients. Waste management is a specific process for each company. As a consequence, in many cases a personal approach is required. We do not have large call centres with centralised helpdesk numbers: each client is assigned a personal contact. This is a perfect example of a personal approach: being close to the client, in terms of both location and service. VANHEEDE ENVIRONMENT GROUP steadfastly supports its clients: clients that we prefer to consider partners. Many companies do the opposite, opting for centralisation and globalisation. VANHEEDE ENVIRONMENT GROUP does not do this. An ingenious ICT network ensures that we can continue to work in this manner and optimise our level of service. REBRANDING: READY FOR THE NEXT GENERATION At the same time, we must not lose sight of the evolution that our society is currently undergoing. VANHEEDE ENVIRONMENT GROUP is therefore in the process of launching no fewer than 11 new websites. Each company will have its own new website in order to serve our partners/clients etc even better. Yet there is more: these will not be websites with large volumes of general information, but instead will offer very useful to-the-point information which can serve as a tool for our clients. MYVANHEEDE AND ONLINE SHOP We are also launching a range of new tools that are unique in our sector: An online shop where our clients can place their orders, receive quotes and request information 24 hours a day. A tool with which we can offer our clients clear information and help them at those moments which are important for our clients, 24 hours a day, 7 days a week. Does this seriously conflict with our personal approach? Not at all. VANHEEDE ENVIRONMENT GROUP seeks to deal with each client according to the client s preferences. This approach offers us the opportunity to guarantee the best possible service for our new digital users too. We have also launched MyVanheede: an online platform that our clients can use to organise their waste management 24 hours a day, generating online reports, organising collections, checking invoices, contracts etc. This new online tool is another means to ensure that our clients can count on high-quality service at every level. Sustainability Report 2011 Pride

Rebranding 13 REBRANDING: NEW CORPORATE IDENTITY AND LOGO In recent years, our company has undergone what may be described as a strong evolution. We are ready for a challenging future and wish to underscore this with a rebranding: a new logo and a new house style to symbolise a new sense of panache at VANHEEDE ENVIRONMENT GROUP, yet based on our established family values. Explanation of the logo: A clear connection with the old logo, both in the pictorial trademark and in the colour code. Respect for the past, respect for the sustainable relationship that we have built up with our clients over the past 40 years. A symbolic V. The name VANHEEDE continues to be significant in our company philosophy. A family business with fundamental values that in each new step pursues a long-term philosophy, both in its internal structure and in its relationships with clients, suppliers, neighbours etc. Multiple Vs working together in a wheelwork and providing a strong sense of cohesion. The interacting V forces. The new corporate structure gives rise to a number of separate VANHEEDE companies, each with its own specialisation and competencies. The V forces or the spearheads that drive us forward, with an eye to the future. MORE THAN A SLOGAN: MANAGING YOUR WASTE... MANAGING YOUR MATERIALS! Materials Managing Your Waste The purpose of the rebranding is to present our company in the market in a dynamic and contemporary manner. Yet we have also changed our slogan for the purpose of imparting a visible evolution. VANHEEDE ENVIRONMENT GROUP puts forth every effort to give waste a new, useful application wherever possible and focuses primarily on reuse waste as a raw material/commodity. Various public authorities also impose rules, via a new materials decree, to further sort and process our waste flows into new raw materials. The new slogan clearly shows the link between waste processing and materials. In addition, this slogan, which addresses both the inlet (waste) as well as the outlet (materials), indicates our continued focus on both waste and materials. 2 Vs which are connected to each other old logo the spearheads that drive us with an eye to the future HR POLICY OF UTMOST IMPORTANCE Over a period of 5 years, our workforce rose by nearly 100 employees. As such, a comprehensive HR policy is of the greatest importance. Job security and the creation of new jobs continue to be important aspects within for businesses. We are on the lookout for new competent workers every day. A solid HR policy provides for a broad range of competencies, ranging from service-oriented drivers, IT specialists, engineers, office workers, dispatchers, manual workers etc.: a very diverse jumble of competencies, cultures and genders which also typifies our company and all directed by our policy and our company values.

Working on sustainable development calls for passion Passion Sustainability Report 2011 Passion

Family Day at Dottenijs 15 The Family Day through the eyes of Isabelle Deslé It was on a Saturday morning in February that we rose from bed with trepidation in our heart. We asked ourselves if we would be able to get there. It had begun to snow the previous evening: the first snow of the year. It immediately reminded us of the previous winter, when the country roads around Geluwe had changed into a white hell. That Friday evening, the radio once again summed up the traffic misery. Luckily, it was not as bad as we feared. No more snow had fallen that night and unlike the previous year the municipal salt stocks had not yet been exhausted. We set out for Dottenijs [F. Dottignies] wrapped in thick scarves, hats, mittens, thermal underwear etc.: appropriate attire for a frosty -12 C. ORGANISATION What immediately struck us when we arrived was the superlative organisation. Despite the 650 visitors, the car park attendant quickly directed us to a free space and we were received by a friendly welcoming committee. We could immediately join a group led by Nico Kimpe, our guide for the day. NEW BEGINNING Nico showed us the machine that makes paper bales and explained what 80/20 means: the quality of the paper. We promise ourselves to work even harder at sorting in the future. We then ambled along the wood, the organic waste, the glass lying outside in transit, and learned that what we saw was not waste but raw materials. This is not an end but a new beginning. The scraps of plastic and carpeting also lay inside awaiting their transformation. They would be changed into pellets: an alternative fuel for limekilns, stone kilns and blast furnaces. Nico explained the procedure to us and the machine put us in mind of the device used to mash potato rissoles a generation ago: a nostalgic moment.

16 Family Day at Dottenijs Meanwhile, our winter attire seemed very apt: with the welcome words let s stay here for a while, our guide enjoyed a ray of sunshine. Despite the sub-zero temperatures, it had in fact become a gorgeous day. At the back of the site, we looked with amazement at the extent of the investments at VANHEEDE ALTERNATIVE FUELS: a new weighbridge and an ultramodern warehouse with a fully automatic loading installation. HEARTWARMING You lot go and get warm. We went into the marquee set up specially for the Family Day. Inside it was pleasantly warm, fortunately. Now I could show how happy I was to be there: I introduced my partner to everybody. Showing him how nice it is at VANHEEDE ENVIRONMENT GROUP made me proud, which is one of my clearest recollections of the Family Day: how open, happy and friendly people are. I thanked the Vanheede family for inviting us. They show how important people and passion are. They prove that these are not empty words. No fiddling about here, no show, no boasting or pulling the wool over people s eyes, just straightforward. Animation, makeup and movies for the children, fries and hamburgers and beer and coke. Delicious. And really from the heart, like with a real family, including for the youngest visitors. We stayed late because we had so much to say and because we felt welcome. Because there was no obligation but we were nevertheless allowed experience it. It was an enjoyable and successful day. Heartwarming. Even at -12 C. Isabelle Deslé Isabelle Deslé Sustainability Report 2011 Passion

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18 VANHEEDE ALTERNATIVE FUELS Launch of a new product line: a fine example of environmental innovation! It was with pride that the new VANHEEDE ALTERNATIVE FUELS plant was presented to our group s employees at the VANHEEDE Family Day early in 2012. The plant has been fully operational since June 2012 and can truly be called a fine example of environmental innovation. THE CONCRETE OBJECTIVES OF THE INVESTMENT The new plant for pelletising high calorific material reaches a capacity of 90,000 tonnes per year, twice the original capacity. The objectives are varied: Focus on further improving the quality of the fuels Broader product range Greater production efficiency through advanced automation Compliance with legislation Desire to become the leading company in Europe Continued innovation LEADER IN QUALITY IN EUROPE VANHEEDE ALTERNATIVE FUELS reflects our efforts to continue building towards a sustainable future. The know how gained, the continuing innovative drive and the investments made in recent years will allow us to continue to grow and serve as a European standard for the production of secondary high-grade fuels. Our personal and transparent communication coupled with the high quality of our fuels saw us gradually grow to be the leader in Europe. SERVICE AS TOP PRIORITY Our personal approach is not only reflected in the close partnerships that we set up with our clients. Our clients are our focus, and as such we serve them according to their needs. Delivering materials at moments that suit our clients continues to be a priority. Fast, high-quality and efficient service is an objective in and of itself. COMPLIANCE WITH LEGISLATION The legislator is steering companies in the direction of a further mode of sorting. VANHEEDE ENVIRONMENT GROUP also supports this new approach. It will provide a higher quality of new raw materials and allow us to effectively close the cycle. The plant also reflects trend. The high calorific incoming waste flows are further graded and sorted, allowing us, among other things, to grade and sort ferrous and non-ferrous and inert materials using fully automated processes and recycle them further. The final product is processed into pellets and recycled as fuel and raw materials for the cement and limekiln industry by end users. MAJOR EVOLUTION For more than 13 years, VANHEEDE ALTERNATIVE FUELS has been paving the way towards environmental awareness and green energy. By producing alternative fuels from high calorific industrial waste, this division of the VANHEEDE ENVIRONMENT GROUP has grown into a highly automated site, and every year produces more than 90,000 tonnes of pellets, fluff and granulates: the equivalent of 43 million litres of fuel oil or the total energy requirement of 13,000 households. Sustainability Report 2011 Passion

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20 Waste Framework directive A European vision: We have known for some time that legislation causes a continuous evolution in the environmental landscape and as such also has a major impact on the recycling sector. Waste is no longer simply collected and deposited in landfills. In fact, wherever possible, we will seek to recover and valorise the raw materials and energy still contained in the waste. The European Waste Framework Directive 2008/98/EU seeks to give formal shape to this philosophy and presents an important milestone in European waste policy. The new framework directive places a clear emphasis on the waste processing hierarchy, prevention and reuse being given priority, as a basic principle. Recycling and energy reclamation (such as alternative fuels) will receive precedence over incineration without energy recovery or landfilling. Reduction in use Reuse Recycling Co-incineration Incineration with energy recovery Landfilling with energy recovery Incineration without energy recovery Landfilling without energy recovery Reduction in use Reuse Recycling Co-incineration Incineration with energy recovery Landfilling with energy recovery Incineration without energy recovery Landfilling without energy recovery IMPLEMENTATION OF EUROPEAN WASTE FRAMEWORK DIRECTIVE 2008/98/EU Flemish Region: Materials Decree and the Flemish Sustainable Management of Materials Cycles and Waste Regulations ( Vlarema ) were published in the Belgian Bulletin of Acts and Decrees on 28 February and 23 May 2012, respectively. Walloon Region: The decree implementing the Waste Directive was published in the Belgian Bulletin of Acts and Decrees on 29 May 2012. A decree amending numerous other decrees was published in the Belgian Bulletin of Acts and Decrees on 4 June 2012. Brussels Region: The new Waste Regulations were adopted on 8 June. France: A waste prevention and management decree was published by the French Government in the Official Journal on 12 July 2011, based on a number of provisions stemming from the Waste Framework Directive and the Grenelle 2 Act. VANHEEDE ENVIRONMENT GROUP s views on the Waste Framework Directive Sustainability Report 2011 Passion

21 Flemish government resolutely opts for sustainable materials policy: Vlarema The Flemish government recently passed the draft proposal for a decree Order establishing the Flemish Sustainable Management of Materials Cycles and Waste Regulations. As a consequence, the Vlarema, as it is commonly known, and so the Materials Decree will replace the former Vlarea and the Waste Materials Decree and represents the goal of reusing waste as materials wherever possible. The Vlarema is therefore related to the implementation of the European Waste Framework Directive of 2008. NEW MATERIALS With this new legislation, the Flemish Government seeks to maximise the focus on recovering and recycling waste materials and converting them into new materials. Similarly, the former terminology for waste materials has also been adapted in connection with the materials policy. References to a transferrer of waste materials as used in the past have been replaced by collector/ trader/ broker of waste materials. CONCRETELY: What does the Vlarema actually mean for industrial waste? The most important aspect is the obligation for businesses to sort at the source: at least 20 different types of waste must be presented and collected separately. If the different types are not presented/collected separately, the mixed industrial waste is required to be processed on a sorting line in a licensed sorting centre to separate and sort as much as possible of the 20 types of waste. If the separate flows as required are presented separately, the residual waste may be transported to an incinerator. Another very important provision in the Vlarema concerns the obligation for collectors/traders/brokers to furnish producers of the waste materials with information about the waste that must be collected separately waste materials, using a contract that is concluded between the collector/trader/broker on the one hand and the producer on the other, specifying the respective types and their preferred manner of collection. Managing Your Waste/Materials Materials Managing Your Waste Our revised slogan perfectly reflects this evolution in the waste sector. VANHEEDE ENVIRONMENT GROUP guarantees that your waste flows will be processed using sustainable methods and at all times seeks to maximise valorisation. We make new raw materials from your waste! If you have any specific questions concerning this new legislation, please do not hesitate to contact our Commercial Department. We will gladly offer our input and help you further. 20 different waste materials to be presented and collected separately 1 Small hazardous waste of similar commercial origin 2 Used glass 3 Paper and paperboard waste 4 Used animal and vegetable oils and fats 5 Vegetable waste 6 Textiles waste 7 Discarded electrical and electronic devices 8 Used tyres 9 Rubble 10 Used oil 11 Hazardous waste materials 12 Asbestos-containing waste materials 13 Discarded equipment and containers which contain ozone-depleting materials or fluorinated greenhouse gases 14 Used agricultural plastic 15 Discarded batteries 16 Plastic bottles, tins and cans and drinks and food cartons (from 1 July 2013 forward) 17 Wood waste 18 Metal waste 19 PVC plastic tubes and sections 20 Packages of transparent or white plastic film

22 Mano Mundo May is the traditional month to kick off the festival season. All the parks, beds, meadows, trees and shrubs have donned their green costumes and invite numerous festival goers to a festivity full of music, dance, enjoyment and spontaneous fun. Mano Mundo, the free-admission world festival that takes place on the splendid provincial estate De Schorre in Boom, wishes to part of this. In this 19th edition, the organisation focuses on climate change as its main theme and as an explicit message. Climate, environment and ecology form are one of the organisation s most important focal points at each edition, in addition to inviting a diverse and colourful public. It is therefore not by chance that VANHEEDE ENVIRONMENTAL LOGISTICS has been selected as a preferred partner to manage the festival s waste policy. In partnership with a regular eco team, 7 types of waste will be collected separately at one centrally located collection site before, during and after the festival. Each year suggestions for improvement are discussed with the organisation. For example, this year can be qualified as a successful test to transform part of the residual waste into a secondary raw material in the form of pellets for use as an alternative fuel source. The festival sector continues to be an important and ever-growing sector. Besides relaxation and enjoyment, the sector is also committed more and more to offering an educational element. Waste policies are an important part of this. How else could we speak of a successful event if everyone looks back with satisfaction and the splendid, green estate is once more neat and tidy and ready for people to enjoy, in no time at all. Sustainability Report 2011 Passion

VANHEEDE POLYMERS & COMPOUNDS lab 23 VANHEEDE POLYMERS & COMPOUNDS makes every effort to give plastic materials and plastics waste a new, useful application. Recycling as much of the raw materials into high-quality materials is a top priority. Quality is of paramount importance to VANHEEDE POLYMERS & COMPOUNDS. This has resulted in the further expansion and operational status of our synthetics laboratory. This perfectly reflects our vision and strategy to produce our synthetic materials with identical properties to new raw materials, allowing them to be reused at least at the same level. VANHEEDE POLYMERS & COMPOUNDS currently has the means to take different measurements of various product and process parameters of your raw materials and to monitor those parameters. We also work in close partnership with a number of research institutes, enabling us to deliver high-quality products to our clients. VANHEEDE POLYMERS & COMPOUNDS Managing Your Waste! Managing Your Materials! Managing Your Plastics!

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Belgium s first hybrid waste collection truck! 25 VANHEEDE ENVIRONMENT GROUP continues to invest in reducing CO₂ emissions VANHEEDE ENVIRONMENT GROUP launches Belgium s first hybrid waste collection truck (26 tonnes)! Joke Schauvliege, Flemish Minister of the Environment Kamel Sid, Managing Director of Volvo Europa Trucks David Vanheede, CEO of Vanheede Environment Group SETTING For many years now the VANHEEDE ENVIRONMENT GROUP has paid considerable attention to the ecological impact of its operations, endeavouring to limit that impact to a minimum. Investing in systems and plants to make raw materials from waste (closing the cycle) and the quest towards the lowest possible CO₂ emissions are objectives of primary importance in this connection. As such, VANHEEDE ENVIRONMENT GROUP has a large and varied fleet of cars and trucks to optimally organise its operations in the waste sector. A UNIQUE PARTNERSHIP Under the motto stronger together, Volvo Trucks, vehicle bodies specialist Geesinknorba and VANHEEDE ENVIRONMENT GROUP came together and created Belgium s first hybrid compactor truck (26 tonnes). This is not a small version of a truck with a limited radius, but a fully-fledged waste collection truck (26 tonnes) which is perfectly suited to serve this group s industrial clients. OPERATION After years of research, Volvo Trucks has decided to make the parallel hybrid engine ready for production. When the vehicle brakes the energy from the brakes is stored in Lithium ion batteries. The electric motor then uses this energy to replace or assist the diesel engine on departure or acceleration. Combined with a start & stop function, this results in a transport solution with visibly lower emissions. Moreover, waste is compacted using entirely electrical means, thanks to the plug-in body construction developed by Geesinknorba. TARGET The target is to realise a 30% reduction in CO₂ emissions. In addition, the green energy originating from the biogas or biomass can be used to charge the batteries that allow the waste collection truck body construction to operate. This unique combination also means that the truck is much quieter. BELGIAN TECHNOLOGY An interesting factoid: this hybrid waste collection truck is built entirely at Volvo Trucks Belgian manufacturing plant in Ghent. On top of this, VANHEEDE ENVIRONMENT GROUP is also the largest operator within its sector that is wholly Belgian-owned. A unique partnership that is entirely in Belgian hands... something for Belgian s to be proud of. The hybrid can be seen on the road in the South-West Flanders region from 15 July forward.

26 Client-oriented service and a comprehensive national distribution continue to be essential elements for the success of VANHEEDE ENVIRONMENT GROUP. The proximity of our dispatch and sorting centres to our clients is of the utmost importance in offering attentive service, across the entire territory of Belgium and North France. THINK GLOBAL - ACT LOCAL In addition, VANHEEDE ENVIRONMENT GROUP actively stimulates the principle of Think Global - act Local both in the literal sense and in the symbolic sense. As an environmental company we have to conceive of a crossborder sustainable method of waste processing. Long-term thinking and thinking about the world for our children and grandchildren need to be key here. In addition, our national coverage was optimised via a series of acquisitions. The goal is to be very close to our clients, both literally and figuratively. In recent years, the sites in Genk, Messancy and now also Wanze (Liège) have been added to allow us to serve our clients as best as possible and to reinforce our national position. CLIENTS = PARTNERS VANHEEDE ENVIRONMENT GROUP steadfastly supports its clients: clients that we prefer to consider partners. Sustainability Report 2011 Passion

A national presence! 27 Many companies do exactly the reverse, opting for centralisation and globalisation. VANHEEDE ENVIRONMENT GROUP does not do this. An ingenious ICT network allows us to continue to work in this manner and optimise our service. We seek to serve each client, from small to a multinational, from Luxembourg to the coast, from hospital, from baker to garage owner, in the best way possible. A PERSONALISED APPROACH - empathetic client services Over time, VANHEEDE ENVIRONMENT GROUP has undergone an immense evolution. From an SME in West Flanders we have grown to be an established national player in our sector. The company s values remain the same, though: a family business that wishes to deal as closely with each client as possible and to offer each client the best possible level of service, with maximum sustainability. Empathetic client services are greatly appreciated by our stakeholders, and offering our clients our input and seeking a win-win situation for all parties are the primary focus. Waste management is different for each company. As such, a personal approach is often required. We have no large call centres with 0800 numbers: instead, each client has a personal point of contact the perfect example of a personal approach. We are close to our clients, both in terms of location and in terms of service. ACQUISITION OF CTL AND NOËL SELECTION - Reinforcement of the position in the provinces of Namur & Liège The recent integration of the Logistics operations of the companies CTL and Noël Selection within VANHEEDE ENVIRONMENT GROUP has visibly reinforced our presence in the provinces of Namur and Liège. CTL and Noël Selection are two companies that were set up by the Noël family. They are a somewhat smaller, but not insignificant player in the region of Namur - Liège. For example, they provide the logistics for a number of waste container sites in the two provinces. They also provide house-to-house collection in more than 10 municipalities of the province of Liège (both the collection of household refuse such as Plastic bottles, tins and cans and drinks and food cartons, paper and paperboard and large household waste). These companies and VANHEEDE ENVIRONMENT GROUP have already had ties for a number of years. Vanheede subcontracts for CTL for collecting container glass in a part of the Liège intercommunal area INTRADEL. CTL and Noël Selection also subcontract for VANHEEDE ENVIRONMENT GROUP. OPERATING BASE NEAR HUY The merging of VANHEEDE ENVIRONMENT GROUP and the Noël family s companies therefore offers various advantages to both parties, allowing them to position themselves more strongly in the market: VANHEEDE ENVIRONMENT GROUP now has an operating base in the vicinity of Huy, from where it can serve both the cities of Liège and Namur (both are situated barely 30 km from the site). CTL and Noël Selection can make use of the group s competencies. The house-to-house operations will be transferred to a new entity, VANHEEDE PROPRETÉ, while the logistics operations for the waste container sites and industrial clients will be transferred to VANHEEDE ENVIRONMENTAL LOGISTICS.

28 Structure at 31/12/2011 - Group companies www.vanheedeenvironmentallogistics.com www.vanheedeenvironmentalservices.com www.vanheede.com www.vanheedelandfillsolutions.com www.vanheedeglassrecycling.com www.vanheedebiomasssolutions.com www.vanheedecarpetrecycling.com www.vanheedepolymersandcompounds.com www.vanheedewindpower.com www.vanheedealternativefuels.com www.vanheedesolarenergy.com Sustainability Report 2011 Passion

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Ecological sustainability as a green theme Planet Sustainability Report 2011 Planet

Care for the Environment 31 The world is slowly but surely undergoing a green movement. It is not only at a political level that decisions are made with this vision: everyone is trying, or should try, to give protecting the environment top priority. At VANHEEDE ENVIRONMENT GROUP, care for the environment and ecological working methods are cardinal principles throughout the entire organisation. We also see this green movement becoming increasingly prominent at our clients, which we naturally commend. In the present-day world, we may expect and even demand that everyone makes a positive contribution to a healthier environment. After all, we all depend on a better living environment for our own welfare as well as the welfare of our children in order to survive. It is therefore in our own interests to promote sustainable developments. VANHEEDE ENVIRONMENT GROUP deems it to be its corporate responsibility to society to help to realise this. For VANHEEDE ENVIRONMENT GROUP, care for the environment therefore remains one of its principal objectives. We work at this at various levels. By investing in high-tech plants, we seek to minimise our energy consumption and our environmental impact. But such as by many interventions... minor interventions can have large effects. For example, we try to make our own employees sensitive to their everyday impact on the environment, both at work and at home (for example with respect to the volumes of energy and water used). We also propagate our know-how to our clients. Yet we also organise educational waste projects at schools, for example. We seek to turn our own companies into model environmental companies, for example by using sustainable facility services. Finally, our core operations convert waste to new raw materials or energy, which allows us offer solutions to a various environmental and societal problems. Our working methods are formalised in our sustainability management system, which we again had inspected in May 2011 for compliance with the ISO 9001 (quality) and ISO 14001 (environment) standards. The certificates were once more obtained for all the Belgian branches of VANHEEDE ENVIRONMENT GROUP.

32 The 4 natural elements A subdivision has been made into 4 constituent areas: the 4 natural elements: Fire, Water, Air and Earth Air emissions VANHEEDE ENVIRONMENT GROUP s environmental performance figures for the year 2011 are discussed below and illustrated with figures. Waste / Waste processing Energy consumption and production Water consumption Raw materials and fossil fuels are becoming scarce and highly-sought goods. We endeavour to process the 1850 waste flows processed at VANHEEDE ENVIRONMENT GROUP in a sustainable and ecologically responsible manner. Waste flows are recycled, become new raw materials, become energy. If thousands of years ago people were convinced that all matter was composed of these 4 elements... then in the year 2011 we nevertheless need to expand the natural element Earth to include waste materials, as both are sources of raw materials. Thousands of years ago people assumed that all matter was composed of these four elements. We now know better, yet we can still learn a great deal from the natural elements. Earth, water, fire and air have played a crucial role for life on Earth since the planet was born. They still give shape to our planet and civilisation. They played a principal role in ancient natural philosophy, both with the Ancient Greek philosophers and in traditions from the Far East. At present, the natural elements are often used symbolically and so attest a specific world view. However, the intuitions of the ancient philosophers still stand: the four elements play a major role in nature and are therefore indispensable to the human race. These natural elements perfectly show the synergy between the different facets of VANHEEDE ENVIRONMENT GROUP and symbolise the 4 issues that we wish to discuss in this Planet section. Fire: energy consumption and production Water: water consumption Air: air emissions Earth: waste/ waste processing We intentionally link the natural element Earth to waste. In the year 2011, raw materials are not only and solely extracted from the ground: our waste world also provides a considerable volume of raw materials. Sustainability Report 2011 Planet

Air 33 Air emissions: limiting the impact for humans and the environment Our first natural element is air. In life, the element air symbolises the power of thought and knowledge. In society and particularly for VANHEEDE ENVIRONMENT GROUP, thinking is of great importance. We think along with our clients and continue to innovate and seek the best solutions for each waste flow. Air, of course, stands for freedom and for the air that we breathe every day. Each year, CO₂ emissions are becoming increasingly important and our company wishes to devote its efforts, each day, to minimising those emissions. As an environmental partner of many companies, VANHEEDE ENVIRONMENT GROUP can to be a significant partner in these efforts. 1.1. CONTRIBUTION TO EMISSIONS VANHEEDE ENVIRONMENT GROUP s operations impact two greenhouse gases, namely carbon dioxide (CO₂) and methane (CH). The main sources of CO₂ are the transport activities and the production processes. Methane is produced by the biological decomposition of waste. Methane originates in the landfill site of VANHEEDE LANDFILL SOLUTIONS and in the digester plant of VANHEEDE BIOMASS SOLUTIONS. At both installations, the methane is captured, diverted to the biogas engines and converted into electricity, CO₂ and water. The efficient capture and diversion of biogas originating from the landfill is a priority for VANHEEDE LANDFILL SOLUTIONS. This not only provides for higher electricity production levels: it this also prevents the release of landfill gas into the air, which can be a cause of an odour nuisance. Over time, the landfill has demonstrated that less odour is released. This means that less landfill gas is released into the air, implying that more methane is converted into electricity, CO₂ and water. 1.2. REDUCTION IN GLOBAL EMISSIONS THROUGH COMPENSATION Besides emitting CO₂, VANHEEDE ENVIRONMENT GROUP also contributes to a reduction in global CO₂ emissions. This contribution is made, on the one hand, with the production of green energy and the utilisation of heat by the digester plant in Quévy and the landfill in Rumbeke. Conversion of methane into electricity, CO₂ and water means that CO₂ is discharged instead of methane, a greenhouse gas that is 20 times more potent. On the other hand, VANHEEDE ENVIRONMENT GROUP contributes to this reduction with the production of secondary fuels by the company VANHEEDE ALTERNATIVE FUELS. Using pellets as fuel in cement kilns and blast furnaces cuts back on substantial volumes of CO₂. 1.3. REDUCTION OF OWN EMISSIONS VANHEEDE ENVIRONMENT GROUP has set itself the target of determining the CO₂ balance or carbon footprint of its operations in order to then identify and realise reduction possibilities. The project will be carried further during the coming years.

34 Water Water is a precious commodity, which therefore deserves to be handled with care! Water, our second natural element... As a primeval sea, in numerous creation myths water is the source of all life, which emerges from that sea; at the same time, though, it is also the element of solution and drowning. Often, world eras from creation cycles come to an end through a massive flood, that the gods use to destroy displeasing forms of life. In the year 2011 we know better. Water is an important natural element; we cannot live without water, our own bodies consist principally of water. VANHEEDE ENVIRONMENT GROUP also handles water with the greatest care and endeavours to correctly raise awareness among its employees about this issue. 2.1. WATER CONSUMPTION Within VANHEEDE ENVIRONMENT GROUP only VANHEEDE BIOMASS SOLUTIONS uses water in its production processes: to moisturising compost, adding water in the unpacking line, cleaning containers used for food waste. VANHEEDE BIOMASS SOLUTIONS has its own biological water treatment plant, producing approximately 76 m³ of treated water per day. There is also the household water consumption, such as for cleaning office buildings, making coffee, using dishwashers, producing drinking water from sip well systems and using water for sanitation. This leads to the production of household waste water. A final source of waste water is formed by the washing areas for trucks and containers. This produces industrial waste water. attributed to the expansion projects that took place in 2011 at VANHEEDE ALTERNATIVE FUELS and to the fact that the sprinkler system was accidentally activated several times as a result of the severe winter conditions in 2011. In order to counteract this increase, 5 rainwater tanks of 20,000 litres were installed in 2011, which will collect the runoff from the 4,700m² roof. These rainwater tanks will come into use in 2012, which will lead to a reduction in the mains water consumption. Water consumption also doubled at VANHEEDE POLYMERS & COMPOUNDS at our site in Genk. This is proportionately linked to an increase in the production of regranulates. In 2011, problems also occurred with the operation of the heat exchanger on the regranulates line, causing higher water consumption levels in comparison with previous years. Fig. 1 Overview of mains water consumption 2008-2009-2010-2011 The types of water used are mains water, water originating from in-house water purification, rainwater and well water. 2000 m 3 1800 m 3 1600 m 3 1400 m 3 1200 m 3 1000 m 3 2008 2009 2010 2011 Figure 1 illustrates the use of mains water by the various companies of VANHEEDE ENVIRONMENT GROUP in 2008, 2009, 2010 and 2011. 800 m 3 600 m 3 400 m 3 200 m 3 Figure 1 shows a small increase in water consumption levels at our site in Dottignies. This increase can be 0 m 3 VEL GEL VAF+VEL DOT VEL OOS VEL ANT VLS RUM VES RUM VEL RUM VF MARQ VPC GENK Sustainability Report 2011 Planet

35 An increase is also visible at the VANHEEDE FRANCE site in Marquette-Lez-Lille, which can be attributed to on-site truck washing. In 2010, the high-pressure washer was out of use for a while, which logically explains the considerably lower consumption levels. In 2011, the high-pressure washer was back in use, once more logically explaining the much higher levels of water consumption. Other sites show mains water consumption levels to have decreased or remained level. This can be explained by the partial replacement of mains water by rainwater. The spectacular decrease in mains water consumption at VANHEEDE ENVIRONMENTAL LOGISTICS in Rumbeke can be ascribed to a significant decrease in the water consumption for each wash load. For 2012, we will make further efforts to limit the water consumption: Detailed measuring and monitoring of the consumption levels for the different types of water A further replacement of mains water by rainwater Research into and use of sustainable facility services (water-saving buttons, economical high-pressure washers etc.) Awareness among employees 2.2. CONTAMINATION OF RAINWATER Rainwater that might potentially come into contact with the waste materials stored at the various sites might become polluted. As such, it is always treated in a primary water treatment plant (sediment pits, oil-water separators with coalescence filters) before it is discharged. Rainwater that falls on the VANHEEDE LANDFILL SOLUTIONS landfill site and that seeps through the landfill is collected as percolate and transported to external water treatment plants. Figure 2 shows the volume of percolate discharged since 2004. Figure 2 demonstrates that a decrease in the volume of percolate is visible between 2006 and 2010 and that the volume of percolate water transported to external treatment plants started to increase once more in 2011. The decrease during the period from 2006 2010 can be explained by the fact that VANHEEDE LANDFILL SOLUTIONS added more and more intermediate film covering layers. This is not a statutory requirement; however, it means that more rainwater can be diverted to the surface water, preventing it from being contaminated and reducing the volume of percolate water to be transported for external treatment. In 2011, even more intermediate film covering layers were added, yet a reinfiltration project was also set up. Reinfiltration means that additional water is fed into the organic landfill cell, causing the biological activity to increase and more percolate water to be produced. This extra percolate then needs to be pumped up and be transported to an external treatment plant. A second explanation can be attributed to the extremely high levels of rainfall on the organic landfill cell at the end of 2010. Much of the percolate formed as a result was not pumped up and transported to external treatment plants until 2011. It continues to be an objective of VANHEEDE ENVIRONMENT GROUP to ensure that as little rainwater as possible becomes contaminated. This can be achieved by providing inside or covered storage facilities for waste materials at the sites and by further adding intermediate film covering layers at the landfill site of VANHEEDE LANDFILL SOLUTIONS. Another means of realising this objective is by providing a clear separation between contaminated and non-contaminated rainwater on a hardened subsurface. Non-contaminated rainwater can be discharged directly into the surface water and moreover is not taxed. Fig. 2 Tonnes of percolate water transported from VANHEEDE LANDFILL SOLUTIONS 18.000 m 3 16.000 m 3 14.000 m 3 12.000 m 3 10.000 m 3 8.000 m 3 6.000 m 3 4.000 m 3 2.000 m 3 0 m 3 2004 2005 2006 2007 2008 2009 2010 2011

36 Earth Waste: sustainable processing Our third natural element is earth How can we represent this more symbolically than as follows: The trees grow out of the ground, and their twigs grow from their trunks, and everyone considers it normal that leaves grow from those twigs. We see them falling on the ground and then grow once more. In this way, the Earth teaches us that what dies will come back to life. The Earth gives us many raw materials. Through the years, these raw materials have been used in many different processes. Yet the raw materials and products will at sometime fall to the ground, like the leaves on a tree. At the some point the raw materials will once again become raw materials and it is the responsibility of VANHEEDE ENVIRONMENT GROUP to ensure that these leaves can become a tree once more. VANHEEDE ENVIRONMENT GROUP must collect, sort and recycle the raw materials to make high-grade raw materials from them. 3.1. WASTE ORIGINATING FROM OWN OPERATIONS The operations of VANHEEDE ENVIRONMENT GROUP do not generate much waste material. The waste materials produced mainly originate from office work (paper, residual waste, Plastic bottles, tins and cans and drinks and food cartons) and garage and maintenance (small hazardous waste). When collecting, transporting and processing its own waste, VANHEEDE ENVIRONMENT GROUP uses the same working method as it does for its clients: in separate collection containers, raising awareness among employees, efficient collection and processing with maximum sustainability. 3.2. THE METHODS OF PROCESSING THE COLLECTED WASTE The in-house waste production is negligible compared with the waste tonnage that VANHEEDE ENVIRONMENT GROUP collects annually from its clients and manages for them. The companies VANHEEDE ENVIRONMENTAL LOGISTICS and VANHEEDE ENVIRONMENTAL SERVICES continually screen the market in search of the most sustainable processing methods for non-hazardous and hazardous waste materials. Waste can Fig. 3 Methods of processing waste collected by logistics companies Biological treatment Co-incineration Composting Physicochemical treatment Recycling Sorting Landfilling Combustion Digesting 3% 10% 22% 0% 8% 18% 5% 32% 1% Fig. 4 Methods of processing the waste collected by logistics companies 40% 35% 30% 25% 20% 15% 10% 5% 0% digesting combustion landfilling sorting recycling physicochemical treatment composting co-incineration 2008 2009 2010 2011 biological treatment Sustainability Report 2011 Planet

37 be transported to in-house processing sites or to external processors. This might be done directly or after a stopover at one of the logistics sites. The ways in which the waste materials collected by VANHEEDE ENVIRONMENTAL LOGISTICS and VANHEEDE ENVIRONMENTAL SERVICES are processed are shown in Figures 3, 4 and 5. Figures 5 and 6 reveal the efforts of VANHEEDE ENVIRONMENT GROUP to give waste a new application wherever possible. The most sustainable form of processing always receives preference. The subdivision of the processing methods at the treatment companies VANHEEDE LANDFILL SOLUTIONS - VANHEEDE ALTERNATIVE FUELS - VANHEEDE BIOMASS SOLUTIONS - VANHEEDE GLASS RECYCLING are shown in Figures 6 and 7. Since VANHEEDE ENVIRONMENT GROUP is continually seeking the most sustainable manner of processing, it contributes to maintaining the raw materials available on our planet (waste becomes raw material!) and to the substitution of fossil fuels by renewable energy (waste becomes energy!). VANHEEDE ENVIRONMENT GROUP also monitors that its emissions are kept to a minimum. In this way the company helps to create a more liveable environment. The most sustainable method of processing is always preferred. Fig. 5 Evolution of the methods of processing the waste collected by logistics companies Fig. 6 Processing methods - treatment companies for the year 2011 Fig. 7 Evolution of processing methods - treatment companies 90 80 70 60 50 40 2008 2009 2010 2011 composting digestion recycling co-incineration landfilling 39% 11% 25% 70% 60% 50% 40% 2008 2009 2010 2011 30 20 16% 9% 30% 20% 10 10% 0 useful application removal 0% useful application removal

38 Fire Energy: efficient management and increasing level of self-sufficiency Our fourth natural element is fire Fire is the most active element of all. Fire is also the lightest of all elements: it consists entirely of energy. Fire is the element of passion, the desire for change the Passion of VANHEEDE ENVIRONMENT GROUP. Fire is an extremely significant element at VANHEEDE ENVIRONMENT GROUP: not only because fire is a symbol for passion, but especially because of its symbolism for energy. Energy consumption and energy production are two very important items for VANHEEDE ENVIRONMENT GROUP. 4.1. ENERGY CONSUMPTION At VANHEEDE ENVIRONMENT GROUP, energy consumption and the nature of that consumption is largely dependent on the specific operations. The processing companies (Raw Materials and Renewable Energy) mainly use electricity during their production processes, whereas the diesel consumption for the transport operations is responsible for most of the energy consumption at the logistics companies (VANHEEDE ENVIRONMENTAL LOGISTICS and VANHEEDE ENVIRONMENTAL SERVICES). In addition, at office centres electricity is currently the major source of energy, and is used for such factors as heating, lighting and appliances (computers, printers etc.). 4.1.1. Electricity Figure 8 depicts the electricity used for the production processes and the office centres. The greatest energy users are and continue to be the production processes of VANHEEDE ALTERNATIVE FUELS and VANHEEDE BIOMASS SOLUTIONS. Following a drop in 2010, the electricity consumption at VANHEEDE ALTERNATIVE FUELS increased again in 2011. On the one hand, this is attributable to a higher tonnage processed and, on the other hand, it stems from the additions to fixed assets on the site. 2011 was, as it were, a transitional year. It was not patent to continue production during the work on the construction of the new shed and the expansion of the plant. VANHEEDE BIOMASS SOLUTIONS also again recorded a higher consumption level in 2011, which can be directly attributed to a higher tonnage processed. In Geluwe, consumption dropped by around 30 MWh, as a result of, among other things, closer monitoring of the heating during the winter period. In 2011, many steps were again taken with respect to energy consumption. Particular attention was given to mapping out the energy consumption patterns in detail. As such, additional electricity meters were placed at the more complex sites, making it possible to begin measuring Fig. 8 Electricity consumption (kwh) for production processes and office centres 5.000.000 4.500.000 4.000.000 3.500.000 3.000.000 2.500.000 2.000.000 1.500.000 1.000.000 500.000 0 VEL GEL VEL DOT VAF VEL OOS VEL ANT VES VEL RUM 2009 2010 2011 VLS VBS VEL VF QUE MARQ WIND VH VPC Sustainability Report 2011 Planet

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40 Fire the electricity consumption per company, but also per operation and even per sub-operation. This should lead to further information about the principal consumers, which in turn will make it possible to implement optimisations and adjustments. For 2012, the following objectives will apply: Investments in VANHEEDE ALTERNATIVE FUELS to help reduce the energy required per tonnage processed Further focus on the principal energy consumers and implementation of optimisations via monthly reports and monitoring Where possible, coupling of consumption to production to be expressed in kwh/tonne Sustainable procurement and facility services, such as energy-efficient lighting and electrical appliances, installation of timers and sensors Awareness among employees 4.1.2. Diesel consumption The diesel consumption by our fleet is, of course, one of the most important environmental aspects for VANHEEDE ENVIRONMETAL LOGISTICS and VANHEEDE ENVIRONMENTAL SERVICES. With a fleet of more than 140 trucks, it is vital to accurately monitor the consumption patterns. As such, it goes without saying that this is an issue that is given a great deal of attention. For example, VANHEEDE ENVIRONMENT GROUP has a modern fleet of trucks, and every opportunity is taken for the most innovative solutions with the lowest environmental impact. All the newly acquired trucks have euro-5 engines and we endeavour to replace older trucks with new trucks. Most of the sites of VANHEEDE ENVIRONMENT GROUP have their own fuel pump facilities. Consumption is monitored each month, per type of truck and per driver. This makes it possible to identify unusually high consumption levels and to take action. Efforts are also being made to maximise the efficiency of transportation: using the most optimal transport routes, optimising the quantity of waste per vehicle, etcetera: never travel empty is the motto here. Finally, new awareness campaigns have been organised for the drivers. Not only is eco-driving of the greatest importance: the maintenance of the fleet, tyre pressure etc. also play a significant role. Hybrid compacting truck Volvo Trucks, vehicle bodies specialist Geesinknorba and VANHEEDE ENVIRONMENT GROUP came together and created Belgium s first hybrid waste compacting truck (26 tonnes). When the vehicle brakes, the energy released by the brakes is stored in Lithium-ion batteries. The electric motor uses this energy to replace or assist the diesel engine on departure or acceleration. Combined with a start-and-stop function, this results in a transport solution with visibly lower emissions. The target is to realise a 30% reduction in CO₂ emissions. The hybrid will be on the road in the Roeselare region from 15 July forward. In 2012, we hope to continue along the same path to reducing diesel consumption: Reverse Logistics Intelligent transport More detailed measurements for monitoring consumption Identification of the most efficient transport routes Research into and investments in more economical means of transport Research into alternative methods of transportation Sustainability Report 2011 Planet

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42 Fire 4.2. ENERGY PRODUCTION 4.2.1. Electricity VANHEEDE ENVIRONMENT GROUP is producing more and more energy directly. At present, this mainly takes the form of electricity, though heat is also generated. Electricity is produced at three sites of the group: in Geluwe, Rumbeke and Quévy. In Quévy three business units produce energy: VANHEEDE BIOMASS SOLUTIONS using a digester plant that has been in operation since 2007, VANHEEDE WINDPOWER using a wind turbine that has been managed entirely inhouse since 2010 and finally VANHEEDE SOLAR. Late in 2011, 1065 solar panels were installed on the roof of the building. VANHEEDE LANDFILL SOLUTIONS has been producing electricity for more than 10 years now. Biogas engines are used to convert the landfill gas released into green electricity and heat, equivalent to 2.1 million litres of fuel oil or the total energy requirements (heating and electricity) of 650 households. Figure 9 depicts the electricity produced by VANHEEDE ENVIRONMENT GROUP. In 2011, VANHEEDE ENVIRONMENT GROUP made further investments to optimise its electricity production. At both VANHEEDE LANDFILL SOLUTIONS and VANHEEDE BIOMASS SOLUTIONS, the production processes were optimised further. In addition, the company made investments to accurately monitor the separate processes to facilitate adjustments and optimisations to the process and increase efficiency. 4.2.2. Heat The biogas engines of VANHEEDE LANDFILL SOLUTIONS and VANHEEDE BIOMASS SOLUTIONS are also used to produce heat. The volume of heat valorised is shown in Figure 10. The volume of heat valorised has remained more or less level. In November 2009, VANHEEDE LANDFILL SOLUTIONS launched a project together with Dewulf, a company located nearby, to use heat in a drying process. The volume of heat valorised by Dewulf dropped slightly in 2011 in comparison with 2010. 4.2.3. Green electricity certificates VANHEEDE ENVIRONMENT GROUP receives green electricity certificates for all the electricity that produces and all the heat valorised (see Figure 11). Part of the electricity produced is consumed directly at the sites at Rumbeke and Quévy. For the remainder, which is therefore available for the electricity grid, VANHEEDE ENVIRONMENT GROUP receives origin guarantee labels, Fig. 9 Evolution of electricity production (kwh) 20.000.000 VLS VBS GEL VH wind power Fig. 10 Evolution of heat valorisation (kwh) of VANHEEDE ENVIRONMENT GROUP 9.000.000 VLS VBS Fig. 11 Evolution of number of green electricity certificates and heat of VANHEEDE ENVIRONMENT GROUP GEL solar pannels VH wind power 40.000 VBS VLS 15.000.000 10.000.000 5.000.000 6.750.000 4.500.000 2.250.000 Number of GSC and WKC 30.000 20.000 10.000 0 2003 2004 2005 2006 2007 2008 2009 2010 2011 0 2008 2009 2010 2011 0 2003 2003 2004 2005 2006 2007 2008 2009 2010 2011 Sustainability Report 2011 Planet

43 which are awarded to volumes of electricity that may be qualified as green. Because of the reasons outlined above, the immense increase in the number of such certificates can be ascribed to more production, optimisations etc. 4.3. SELF-SUFFICIENCY Although the general electricity consumption at VANHEEDE ENVIRONMENT GROUP has increased slightly relative to 2010, it is evident (see Figure 12) that production much more substantially. As such, we are producing much more electricity than the entire group consumes. This means that VANHEEDE ENVIRONMENT GROUP has grew further as an energy producer in 2011. Fig. 12 Electricity consumption (kwh) relative to electricity production at VANHEEDE ENVIRONMENT GROUP 2008 2009 2010 40.000.000 2011 30.000.000 20.000.000 10.000.000 0 production consumption

44 VANHEEDE FRANCE Billy-Berclau site LOCATION Vanheede France has acquired 4 hectares in the Pas-de- Calais region, located at the heart of the 460 hectares of the Artois (Flanders) Industry Park. The Industry Park benefits from direct access via two interchanges of the RN47 (2x2 lanes), heading directly to the A25 motorway (Lille-Dunkirk) in the north and to the A26 motorway (Calais-Reims) in the south. The A1 motorway (Paris- Northern Europe) is also very accessible it is located just 10 minutes from the Industry Park. The distances to the closest towns and to the big cities are as follows: Lens: 11 km, Bethune: 17 km, Lille: 26 km, Brussels: 134 km and Paris: 212 km. A MULTI-ACTIVITY SITE The prefectoral decree that VANHEEDE FRANCE received on 9 November 2011 allows it to conduct a wide range of operations within VANHEEDE GROUP. The site can expect to process 150,000 tonnes of waste (140,000 tonnes of non-hazardous waste and 10,000 tonnes of hazardous waste) as part of sorting, transfer, collection or conversions operations. The operation will be undertaken in several phases. The first will involve transferring the company headquarters with its administrative and commercial services and everything in between. Two buildings, with a combined surface area of more than 3,000 m², will be dedicated to sorting and collecting reusable materials and OIW (ordinary industrial waste). Another building of approximately 1,200 m² will be used for collecting non-standard waste and dismantling WEEE (Waste from Electrical and Electronics Equipment). The second phase will focus on expanding the nonstandard waste collection centre, with the construction of two new buildings (1,700m²). During this period we will consider whether it would be advisable to integrate an alternative fuels manufacturing unit and/or a food waste unpacking centre. AN ENVIRONMENTAL LOCATION VANHEEDE GROUP is very committed to sustainable development and energy consumption reduction we aim to create a site that sets an example in terms of both design and environmental protection. In order to make this a reality, we have spent 1 million euros here, out of the 6 million euros involved in the investment for the first phase. Some points on which we wish to focus our efforts include: The construction of offices and social rooms which that may be expected to satisfy the values required of lowconsumption buildings Use of geothermal energy using the natural calories of the land for heating and cooling purposes, and so banishing the need for air condition Integrated wood panelling added to sorting buildings, to take advantage of natural light On-site general electrical system (offices, farm buildings and roads), with presence sensors and intensity variation according to the natural light with each area Collection and use of rainwater, and signing of the first agreement with the SIZIAF (zone manager) for the release of this rainwater Use of a seal (draining membrane connected to a gathering tank) under the concrete slabs for protecting the floors and basement areas of the non-standard waste building Extension of the extinguishing system (sprinkler systems) to all the farm buildings. A WELL-PLANNED VISION The establishment of this innovative site is a functional and integral part of Vanheede France s development vision. Indeed, by combining our current presence, the other parts of the group will share in these innovative activities, its structure and this work tool, and VANHEEDE FRANCE can claim that it is becoming a major environmental player in Northern France. Stéphane Beaurain: Area Manager Nord Pas de Calais Sustainability Report 2011 Planet

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All employees are involved in building the future People Sustainability Report 2011 Planet

Policy 47 Board of Directors The Board of Directors of holding company VANHEEDE ENVIRONMENT GROUP nv is composed of three directors: Vamastine bvba represented by David Vanheede, permanent representative Vanica bvba represented by Caroline Vanheede, permanent representative Imdaca nv represented by Claudette Descamps, permanent representative Management Each company has management meetings on a monthly basis. At each meeting the operational and financial situation of the company is monitored and controlled adjusted. Advisory Committee Caroline Vanheede (L) and David Vanheede, Claudette Descamps (R) Arnold Deceuninck Karel Gielen The Board of Directors is supported by the Advisory Committee, which is composed of two external specialists. The Advisory Committee attends the periodic meetings of the Board of Directors. In this way, Mr Arnold Deceuninck and Mr Karel Gielen support VANHEEDE ENVIRONMENT GROUP with their considerable knowledge and experience.

48 Employees Working together today on tomorrow s HR management! We are, on the one hand, currently being inundated with numerous general HR trends. On the other hand, in the context of sustainable HR, we strongly believe in the marked role of each of our employees. In order to achieve the best results, the HR department plays a crucial role in this: by offering the most comprehensive level of service possible. Together with the employees, the managing directors and the BU management, we constantly seek an optimum balance to guide each employee to be a professional employee. The HR department supervises the recruitment of new employees, stimulates new management talent, further expands retention policy, offers career counselling across all generations, ensures accurate paperwork, and much more. Permanent* employees in numbers Permanent employees in full-time equivalent Total workforce (permanent employees incl. temporary staff) 450 431 400 350 300 250 200 150 100 50 0 340 2007 367 366 2008 2009 376 2010 2011 * Permanent employees (excl. staff members on longterm sick leave, bridging pension or career interruption) 450 400 350 300 250 200 150 100 50 0 302 2007 355 350 2008 2009 359 2010 410 2011 500 450 400 350 300 250 200 150 100 50 0 402 417 401 2007 2008 2009 421 2010 481 2011 The objective of all this is to ensure that the company has motivated employees who have an impact on the organisation s structure and to generate a sense of responsibility, initiative and innovation. Women 20,19% Men/women Workers/drivers/office staff Drivers 35,03% Workers 32,25% Part-time/full-time Part-time 19,12% Men 79,81% Office staff 32,71% Full-time 80,88% Sustainability Report 2011 People

49 Breakdown by age Seniority Breakdown by nationality Breakdown by language >60y. 1,85% 51-60y. 14,85% 41-50y. 32,95% <30y. 16,47% 31-40y. 33,88% >30y. 0,70% 6-15y. 26,69% 16-30y. 8,12% < 5y. 64,50% other EU-countries 1,38% FR 15,55% BE 81,44% other non-eu-countries 1,63% FR 40,60% NL 59,40%

50 Safety In 2011, as in previous years, safety at work continued to be an absolute priority, into which the Quality Environment Safety Health department of VANHEEDE ENVIRONMENT GROUP, but especially with all employees, put a great deal of effort. As such, VANHEEDE ENVIRONMENT GROUP s policy statement includes the objective of creating a safe working environment where its employees can realise their full potential. Constant attention was paid to order and tidiness, education, reception of new employees etc. In addition to four safety themes that are common to all sites, the annual action plan Safety 2011 also addressed the following specific safety themes per site: VANHEEDE ENVIRONMENTAL SERVICES: training in dealing with hazardous waste and personal protective equipment VANHEEDE ENVIRONMENTAL LOGISTICS: adjustment and repairs to bell jars VANHEEDE POLYMERS & COMPOUNDS: presence of fire extinguishers VANHEEDE BIOMASS SOLUTIONS: updating of the documents concerning entry into service VANHEEDE ALTERNATIVE FUELS: gradual updating of the machinery VANHEEDE LANDFILL SOLUTIONS: other location for depositing of inert materials and updating of the working procedures No simple method exists for quantifying safety performances. These indicators are defined at various levels in the objectives. VANHEEDE ENVIRONMENT GROUP nv employs a number of internal and external guidelines for this purpose. Safety performance reports are linked to the frequency and severity rate. Both indicators take the number of hours of exposure into account. This makes it possible to compare the companies with internal as well as external data. * Fg = (number of accidents * 1,000,000) / number of hours of exposure * Eg = (number of calendar days of occupational disability * 1.000) / number of hours of exposure 140 120 100 80 60 40 20 0 116,30 2006 92,52 55,63 51,42 82,41 2007 2008 2009 2010 68,02 2011 3,5 3 2,5 2 1,5 1 0,5 0 2,99 2006 2,59 Number of accidents 0,91 1,11 1,92 2007 2008 2009 2010 The company has also defined a number of internal indicators to measure the results of the safety policy. The safety policy is adjusted on the basis of those results. Location of the injury: This overview shows which body parts were most affected in 2011. Our prevention campaigns should reflect these figures. location of injury number % Head or neck 8 13% Eyes 3 5% Torso or back 12 19% Upper limbs 22 35% Lower limbs 14 22% Other 4 6% 1,11 2011 Distribution of the accidents among employees: These indicators reveal to whom the prevention campaigns should be directed. 43% 5% 52% Number of calendar days Workers Drivers 1% Office staff 59% 40% Sustainability Report 2011 People

Safety 51

52 Safety Besides the familiar indicators, it is also useful to measure the performances of each company. Company Work-related accidents/ incidents/ commuting accidents Days of unfitness Vanheede Environmental Logistics Vanheede Environmental Services Vanheede Environment Group Vanheede Biomass Solutions Vanheede Alternative Fuels Vanheede Polymers & Compounds Vanheede France Vanheede Landfill Solutions 2% Accidents 2% 0% 3% 13% 6% 73% 2% 0% 0% 2% Days lost 3% 0% 3% 8% 85% 1% number % number % Group total 69 100% 724 100% VANHEEDE ENVIRONMENTAL LOGISTICS VANHEEDE ENVIRONMENTAL SERVICES VANHEEDE ENVIRONMENT GROUP VANHEEDE BIOMASS SOLUTIONS VANHEEDE ALTERNATIVE FUELS VANHEEDE POLYMERS & COMPOUNDS 46 67% 575 79% 4 6% 1 0% 1 1% 0 0% 8 12% 21 3% 2 3% 51 7% 1 1% 21 3% VANHEEDE FRANCE 6 9% 46 6% VANHEEDE LANDFILL SOLUTIONS 1 1% 9 1% The pie charts presented above (in absolute figures) do not take into account the number of employees per company. VEL is conspicuous here. This is logical, since VEL has approximately 34 times more employees than VPC, and consequently it is to be expected that many more accidents will have occurred at VANHEEDE ENVIRONMENTAL LOGISTICS. As such, a second representation is provided below (in relative figures) that does take into account the number of employees (number of hours worked) of the respective companies. This makes it possible to compare the results. Vanheede Environmental Logistics Vanheede Environmental Services Vanheede Environment Group Vanheede Biomass Solutions Vanheede Alternative Fuels Vanheede Polymers & Compounds Vanheede France Vanheede Landfill Solutions 16% 6% 13% 8% Accidents 8% 19% 17% 18% 2% 6% 13% 29% Days lost 8% 23% 22% 5% 0% 0% Sustainability Report 2011 People

Safety 53

54 Safety Some conclusions: Conclusion If we look at the distribution of accidents among the separate companies, in absolute terms VANHEEDE ENVIRONMENTAL LOGISTICS stands out, with 73 percent of the accidents. Taking the number of employees per company into account, the accidents are divided equally among the separate companies, with exception of VANHEEDE ENVIRONMENT GROUP. VANHEEDE ENVIRONMENT GROUP is principally involved in office work, meaning that the risks are much smaller than with the logistics and production work at the other companies. The study into the injuries reveals that hands and feet continue to be the body parts affected most often, despite the use of safety shoes. Most incidents involving hands concerned cuts or limbs being caught. Twisted ankles occur often as an injury to the feet, generally as a result of slippery or uneven floors. High safety shoes of safety boots offer the best protection against such injuries to the feet. The increased attention to the welfare of our employees has translated into a decrease in accident figures. Both frequency and severity rates have dropped significantly compared with 2010. In view of the various causes of work-related accidents and the different groups of employees involved, both a diversified and a specialised approach are required. In general terms, efforts are being made to increase safety awareness, both among managerial and operational employees. Managers are continually trained to identify and address risks and to warn employees about unsafe actions. During the consultations at production meetings, problem areas relating to safety are discussed with management. This offers an opportunity to discuss such matters as incidents, safety instruction cards, the wearing and correct use of personal protective equipment etcetera. Properly wearing of the correct personal protective equipment can prevent many injuries. Besides the actions concerning general safety awareness, specific measures are set up for each specific group of employees. Customised training plans are provided for each group of new employees. The approach for organising mandatory training in professional competence for drivers has been formalised. The concrete trainings will begin during the course of 2012. Specifically for drivers, interactive sessions are organised various during the various drivers meetings to address on specific topics, for example how to opening and shut containers and bins, how to get in and out of the truck, the purpose of wearing personal protective equipment etcetera. A very important issue is job risk analysis. This instrument is used to estimate the risks attached to all the jobs carried out. If these risks are too high, preventive measures must be taken to reduce the risks. A distinction is made between general and specific tasks. General tasks are not dependent on the company or site, but apply to multiple sites/companies. Examples include operating loads manually and movements on-site. Specific jobs only occur at a single company, for example pulverising plastics at VANHEEDE POLYMERS & COMPOUNDS. The output of this job risk analysis is of great importance for drawing up the safety plans for the coming years. Sustainability Report 2011 People

Safety 55

Healthy values of today form the sustainability of tomorrow Profit Sustainability Report 2011 Planet

Key figures 2011 57 This sustainability report presents the consolidated financial situation of VANHEEDE ENVIRONMENT GROUP at 31/12/2011 (financial year 01/01/2011-31/12/2011), both for the balance sheet and the income statement. The complete financial statements of VANHEEDE ENVIRONMENT GROUP nv and its separate subsidiaries and the consolidated financial statements can be accessed for free at the Balance Sheet Registry of the National Bank of Belgium. This report provides a brief summary.

58 Key figures 2011 No acquisitions were realised during 2011. As a consequence, a numerical comparison of the balance sheets and the income statements for 2011 and 2010 is representative. Prior years are less easy to compare, owing to minor acquisitions. The non-consolidated turnover for 2011 increased substantially in comparison with 2010: 97,924K for 2011 compared with 89,750K for 2010. This signifies an increase of approximately 9%. Non-consolidated turnover in KEUR per activity Logistics Services Raw Materials Renewable Energy 100.000 90.000 80.000 70.000 60.000 50.000 40.000 30.000 20.000 10.000 0 81.870 20.040 2.790 5.790 78.269 19.549 1.900 6.300 89.750 22.650 2.569 7.390 53.260 50.520 57.141 2008 2009 2010 97.924 24.798 3.155 7.327 62.644 2011 The graph entitled non-consolidated turnover shows, besides the total turnover, a breakdown of the turnover per operation: Logistics (logistics operations with the exception of special waste materials) Services (hazardous and special waste flows, interventions, tank transport and cleaning) Renewable Energy (renewable energy; secondary fuels) Raw Materials (secondary raw materials). Balance sheet The consolidated balance sheet for the year 2011 closed with a balance sheet total of 95,142K, which is more than 8.80% higher than the balance sheet total at yearend 2010. On the assets side, a sharp increase is visible in tangible fixed assets. Investments in 2011 came to approximately 17,000K: more than double those for the previous year. The investment project in Dottignies (see pages 18 and 19) and the purchase of two new sites (Roeselare and France) formed an important part in this. No changes in accounting policies have been made compared with last year. Assets are amortised or depreciated over a period of between three and twenty years, depending on the specific asset. Current receivables show a slight increase in the outstanding trade receivables at 31/12/2011, as a result of the increase in turnover. Cash and cash equivalents available are increased slightly. Liquidity dropped to 1.22, which is sufficient to fulfil all the short-term obligations. On the liabilities side, a substantial increase is visible in both long-term and current debts. Naturally, the high level of investments has had an effect on the amount of long-term and current borrowings. VANHEEDE ENVIRONMENT GROUP s solvency dropped to 55.44%; however, this includes the addition of the subordinated DACAR loan to equity. Income statement The consolidated income statement closed at 31/12/2011 with a consolidated profit of 1,487K. The consolidated turnover increased by more than 11% compared with 2010. The total operating costs also increased with 17%, however, causing a substantial drop in operating income. With the purchases, the increase in the value of the recovery products purchased is particularly conspicuous. Naturally, the same evolution is also evident in the turnover from the recovery products sold. The item services shows a substantial increase in fuel costs, maintenance and repairs' and temporary employee costs. The total wages (temporary cost plus remuneration and social charges) at 31/12/2011 shows an increase by 13% compared with 2010. This stems Sustainability Report 2011 Profit

59 from, among other factors, an increase in the workforce. In addition, wages increased proportionately to turnover. The annual amortisation of goodwill (at a rate of 5%) is presented separately in the consolidation, in the category amortisation and depreciation of consolidation differences. Amortisation and depreciation of other intangible and tangible fixed assets is increasing. The EBITDA of VANHEEDE ENVIRONMENT GROUP decreased to 17.91% in 2011. The EBIT follows this trend and came to 4.90%. The consolidated net profit for the year 2011 is 1,487K, which is considerably less than the profit of 4,011K for 2010. However, it is higher than the results for 2007, 2008 and 2009.

60 Key figures 2011 Consolidated balance sheet - period from 01 01 2011 to 31 12 2011 [in thousands of EUR] Movements in investments in thousands of EUR 20.000 17.500 15.000 12.500 10.000 ASSETS 2011 2010 Intangible fixed assets 13809 14595 Tangible fixed assets 49961 42345 Fixed financial assets 18 19 7.500 5.000 2006 11.800 2007 16.800 2008 11.850 2009 7.569 Movements in turnover in thousands of EUR 85.000 2010 8.150 2011 17.029 FIXED ASSETS 63.788 56.959 80.000 75.000 Long-term receivables 106 6 Inventories 1423 1648 Current receivables 20953 20770 Cash and cash equivalents 8314 7737 Prepayments and accrued income 558 308 70.000 65.000 60.000 55.000 CURRENT ASSETS 31.354 30.469 50.000 2006 53.250 2007 62.338 2008 67.195 2009 65.837 2010 74.757 2011 83.378 TOTAL ASSETS 95.142 87.428 Movements in EBITDA (in % of the consolidated turnover) 25 22,5 20 17,5 15 12,5 10 2006 23,35% 2007 15,24% 2008 17,12% 2009 18,26% 2010 22,14% 2011 17,91% Sustainability Report 2011 Profit

15 Movements in EBIT (in % of the consolidated turnover) 61 12,5 10 7,5 5 2,5 LIABILITIES 2011 2010 0 2006 14,31% 2007 1,9% 2008 2,13% 2009 3,52% 2010 9,34% 2011 4,9% Capital 3350 3350 Consolidated reserves 11015 9697 10.000 9.000 8.000 7.000 6.000 Movements in amortisation and depreciation in thousands of EUR (= excl. amortisation and depreciation on positive consolidation differences) EQUITY 14365 13.047 Third-party interests 863 656 THIRD-PARTY INTERESTS 863 656 Provisions for risks and charges 1998 1910 Deferred tax expenses 267 326 5.000 PROVISIONS, DEFERRED TAX EXPENSES 2.265 2.236 4.000 Movements in the cash flow in thousands of EUR 14.000 12.000 10.000 2006 4.812 2007 6.276 2008 7.858 2009 8.097 2010 8.340 2011 9.598 Long-term debts 52888 50154 Current debts 23877 20607 Accruals and deferred income 884 728 PAYABLES 77649 71.489 TOTAL LIABILITIES 95.142 87.428 8.000 6.000 4.000 2006 9.093 2007 4.683 2008 9.101 2009 10.357 2010 13.515 2011 12.334

62 Key figures 2011 Consolidated income statement period from 01 01 2011 to 31 12 2011 [in thousands of EUR] 2011 2010 Turnover 83.378,00 74.757,00 Movements in inventory 0,00 0,00 Other operating income 1.008,00 685,00 OPERATING INCOME 84.386,00 75.442,00 Purchases and subcontractings 29.289,00 24.857,00 Services and miscellaneous goods 20.696,00 16.714,00 Remunerations and social charges 18.419,00 16.420,00 Amortisation and depreciation 9.598,00 8.345,00 Impairments and provisions 136,00 115,00 Other operating costs 1.046,00 897,00 Amortisation and depreciation on consolidation differences 1.113,00 1.113,00 OPERATING COSTS 80.297,00 68.461,00 OPERATING PROFIT 4.089,00 6.981,00 FINANCIAL INCOME 395,00 290,00 FINANCIAL EXPENSE 2.052,00 1.870,00 PROFIT/LOSS FROM ORDINARY OPERATIONS 2.432,00 5.401,00 EXTRAORDINARY INCOME 97,00 23,00 EXTRAORDINARY EXPENSE 376,00 3,00 PROFIT/LOSS FOR THE FINANCIAL YEAR BEFORE TAX 2.153,00 5.421,00 WITHDRAWALS 59,00 0,00 TAXES 725,00 1.410,00 CONSOLIDATED PROFIT/LOSS 1.487,00 4.011,00 Sustainability Report 2011 Profit

63 Summary consolidated income statement [in thousands of EUR] 2011 2010 Turnover 83.378 74.757 EBITDA 14.936 16.554 Net income 1.480 4.011 Equity 14.365 13.047 Balance sheet total 95.142 87.428 Liquidity ratio 1,22 1,38 Solvency ratio* 55,44% 57,84% * subordinated loan added to equity Colophon Publication VANHEEDE Environment Group nv Beekstraat 25-27, 1080 Brussels Editor-in-charge Dieter Verhaeghe c/o Dullaardstraat 11, 8940 Geluwe Design and layout Apunta, Kortrijk - www.apunta.be Contact Please address any questions or comments concerning this sustainability report to dieter.verhaeghe@vanheede.com

64 Beekstraat 25-27 - 1080 Brussels - www.vanheede.com Sustainability Report 2011