Business Plan 2018 - Aarhus Vand
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Business Plan 2018
CONTENTS
Preface .................................................................................... 3
Framework of Aarhus Vand...................................................... 4
Cooperation with Aarhus Municipality ...................................... 6
Annual wheel, 2018 ................................................................. 7
The board ................................................................................ 8
Mission, vision and values........................................................ 9
Business strategy .................................................................. 10
We integrate UN’s sustainable development goals ................. 12
Strategic collaboration strengthens Aarhus Vand
and the industry ..................................................................... 14
The world’s most resource-efficient
wastewater treatment plant ................................................... 17
We are implementing a digital transformation ......................... 18
We are creating a strong corporate culture ............................ 20
Organisation .......................................................................... 22
Sharpening the focus on financing ......................................... 24
Financial forecast for 2018 ..................................................... 25
Investments and tariffs ........................................................... 26
Cover photo: The fountain ”Endless Connection”
at the waterfront in Aarhus is made by Jeppe Hein.
In the background Climate Planet.
Photo left: The water tower in Hasle was in 2017 turned
into a light installation that will make the water tower a
landmark for Aarhus and will create positive attention
in the residential area of Bispehaven that has the water
tower located in the ”backyard”.
2
Preface
Welcome to Aarhus Vand’s business plan 2018. The business plan chains and, if supported, this may affect both local and regional
describes in words and pictures the company’s exciting develop- business development and growth positively.
ment and expectations for 2018.
As one of the largest water companies in Denmark, Aarhus Vand
We have established a sound and excellent base for the further commits to supporting the water industry. We have extensive
development of Aarhus Vand. This is essential as the setting of the knowledge in the operation of various facilities, establishment of
company is constantly changing. organisations, analysing, tendering, planning, project manage-
ment, training and commissioning of facilities. By adopting a global
Collaboration with our key stakeholders – the customers, owners perspective, we can contribute knowledge and support for Danish
and authorities – is rewarding. Together, we will strive to realise exports. At the same time, the industry and we can gain new
Aarhus Vand’s Strategy 2020 and continue to focus on growth, knowledge to optimise and develop processes and procedures,
productivity and ingenuity in 2018 in our efforts to shape the future thus improving the entire industry.
water company in Aarhus.
Aarhus Vand will become a more attractive place to work when
At Aarhus Vand, we put every effort into creating a productive and company activities take on an international dimension. The
stimulating workplace. We adjust, reorganise, adapt and develop water companies and the industry will gain new knowledge, with
in all areas, and this is exciting and demanding at the same time. the potential for optimising and developing our processes and
procedures, thus improving the individual companies. Aarhus
New challenges and demands create new business areas, Vand would therefore like to deliver and share the responsibility of
technological development and promote business activities such increasing Danish exports in water applications.
as the green growth plan, plans for the climate, and solutions
for how to handle rainwater on citizens’ own property and, not Our business plan also describes Aarhus Vand’s mission, vision
least, export. and objectives under the setting laid out for our activities by
our owner and by Danish legislation. It also describes how we
Aarhus Vand is well on the way: organise work and sets out our values and our strategy for the
The entire water cycle, a market- years ahead.
orientated product catalogue for
customers, partnerships and Last but not least, it considers the prerequisites to fulfilling our
collaboration agreements such as vision, such as a competent staff, excellent partnerships and
Shared and 3Vand – just to mention sound finances.
a few.
The business plan builds on:
One-third of Denmark’s water indu-
stry is located in Business Region – The framework of Aarhus Vand
Aarhus, which is the domicile of – Mission, vision and values
several market leaders in water. – Cooperation with Aarhus Municipality
Increasing global demand – Business Strategy
for water technology – Social responsibility
holds a vast potential – Strategic collaboration
for additional growth in – The digital strategy
Business Region Aarhus. – Value-based management
However, more coordi- – The financial strategy
nated and strategic efforts – Financial forecast
are needed across the
municipalities to ensure Enjoy your reading.
that the business potential
is utilised optimally. Many Best regards
locally orientated compa-
nies in Business Region
Aarhus have the potential
to become part of more Lars Schrøder
globally orientated value Director
3
Framework of Aarhus Vand
Aarhus Vand is a Danish public limited company owned by Aarhus The individual points of the agreement:
Municipality. The owner strategy for municipally-owned companies
– including Aarhus Vand – makes up the overall framework for the Efficiency gains
realisation and implementation of the objectives of the individual – Towards 2020, a minimum of DKK 1.3 billion must be gained.
company. It establishes directions for Aarhus Vand’s Board and
Management, and it is the municipality’s way of expressing its Future benchmarking
attitudes and expectations of the company. – All-in financial benchmarking and development of the price cap
regulation with demands for efficiency improvements in relation
The purpose of Aarhus Vand is to supply and develop resource- to operating costs as well and construction costs.
effective services in the entire water cycle to create a climate-
adapted, sound environment as well as growth and export, which Increased flexibility
will be of benefit to customers and stakeholders. The company’s – 2-year price caps for everyone from 2017/18 and 4-year price
activities comprise rainwater disposal (including climate adaptation caps from 2018/19 for the best
projects), production and distribution of drinking water, transport – A new correction of the cap
and purification of wastewater, emptying of private holding tanks – Simplification of the annual control of the price cap
as well as safeguarding a balanced and healthy water cycle. – Extraordinary efficiency gains may form part of the equity
– Abolition of the internal supervision.
We recover, treat and distribute 15 million cubic meters of drinking
water and purify more than 30 million cubic meters of wastewater The authoritative role of municipalities
every year at nine waterworks and four wastewater treatment – Unambiguous rules must ensure that the water companies be-
plants. The company has a staff of 217 competent and dedicated come better at handling their tasks and that the municipalities
employees. become better at performing their role as authority.
Aarhus Vand’s revenue is based on user payments in the form High demands on the environment, health and continuity
of connection fees, fixed charges, road charges, variable water of supply
and sewage disposal charges and a charge for emptying private – New performance-based benchmarking will be introduced.
holding tanks. Under the Danish Consolidated Act on Water Sup-
ply and the Danish Act on Payment Rules regarding wastewater, Consumers’ complaints filing
the income must finance the company’s annual production and – A water complaints board will be established which will be
administration costs, financial expenses and investments. handling disputes about the terms of supply.
Regulation of the water sector
The Supply Secretariat (Forsyningssekretariatet) is charged with
regulating water companies’ finances according to a price cap
based on the individual company’s historical prices, development
in costs and demands for efficiency improvement. In 2015, the
Danish Parliament agreed to change the regulations of the water
sector, and the changes have subsequently been implemented.
The principles of this regulation are:
1. Increased efficiency in the water sector
2. Support and further development of high standards for the
environment, services and continuity of supply
3. Less bureaucratic organising and inspection
4. Better framework for technological development in the water
sector.
4
The Supply Secretariat – its role and financing Principle 2:
– With the introduction of differentiated tariffs, the companies will Natural monopolies to be subjected to uniform, incentive-
pay according to size. based financial regulation to create the best possible regulatory
framework for more efficient utilities and low prices.
Consolidation
– The agreement contains a general description of the incentive Principle 3:
to consolidate Good corporate governance to encourage efficient and trans-
– In case of mergers, it must still be possible to introduce parent management of the utilities.
differentiated tariffs even across municipal boarders.
Principle 4:
Technology development: Robust regulation of the security of supply to ensure a high degree
– R&D must be promoted with the establishment of a good of continuity of supply, safeguard the environment and protect
framework within the Danish water sector public health.
– R&D is not part of the company’s main activities.
Principle 5:
In 2016 the Government launched “Future utility supplies”, its Effective and transparent supervision based on the framework
strategy for the future utility sector. The strategy lays out the regulation to ensure development, effective administration
framework for the future regulation of the utility sectors on the and target-orientated analysis of the effects of the framework
basis of the five principles below: regulation.
Principle 1: The strategy contains a number of specific initiatives that will not
Tasks that are not natural monopolies per se must be subjected to only support the overall efficiency improvements of DKK 5.9 billion
competition as far as possible, and there must be Chinese walls annually by 2025, but also maintain a high degree of continuity of
between monopolies and areas subjected to competition – in an supply. These initiatives represent an improvement of the frame-
effort to create as much competition as possible, which will be of work conditions for Danish companies while ensuring low prices
benefit to citizens and companies alike. for the consumers.
The artwork ”Your Rainbow Panorama”, placed at the top of the Aros art museum, is created by Olafur Eliasson.
5
Cooperation with Aarhus Municipality
Aarhus Municipality acts as owner, author- corporate governance, corporate culture, tion/service, finances, security, environ-
ity and contractual party in relation to remuneration of managers and social mental and social conditions. The purpose
Aarhus Vand. This involves a differentiated responsibility. The annual general meeting of the owner strategy is to contribute to:
task management, including: is one of the ways in which the municipality
may exerts its influence on the company. – Ensuring consistency between Aarhus
– As the owner: What it is Aarhus Municipality and Aarhus Vand’s policy,
Municipality wants and expects from New owner strategy vision and plans
Aarhus Vand Aarhus Municipality formulated a new own- – Clarifying Aarhus Municipality’s goals for
– As authority: Aarhus municipality’s over- er strategy for Aarhus Vand in 2017. It is Aarhus Vand, including the company’s
seeing that Aarhus Vand observes the an elaboration of the goals and objectives Board of Directors
rules established when company was founded, – Ensuring the best possible effect of the
– As a contractual party: Aarhus an attempt to accommodate to a demand resources used within Aarhus Vand’s
Municipality’s purchase of services from Aarhus City Council in continuation of business area and the greatest possible
from Aarhus Vand and collaboration on the municipality’s policy on active owner- value creation in the company
projects. ship of municipal companies. Aarhus – Regulating cooperation between Aarhus
Municipality’s overall objective for Aarhus Municipality and Aarhus Vand within
As the owner, Aarhus Municipality may Vand is to ensure the greatest possible the framework of the rules in force at all
have an interest in relation to Aarhus Vand’s long-term value creation and to ensure that times, always respecting the interests of
strategy, results, risk, capital structure, the objectives are met in relation to opera- any other owners.
”OUR RAINWATER LAKES
MUST BE USED BOTH FOR
CLIMATE ADAPTATION AND
RECREATIONAL PURPOSES”
6
The owner strategy lays down what it is Regarding financial responsibility, the the owners.
Aarhus Municipality expects Aarhus Vand owner strategy mentions, among other – Aarhus Municipality expects Aarhus
to be working towards: things, that: Vand to focus on eco-efficient invest-
ment and optimisation of its operation.
– Ensuring clean drinking water – Aarhus Municipality expects Aarhus – Aarhus Municipality expects that the
– Ensuring stable supply and high Vand to have a strong focus on financial development in charges is reasonable,
customer satisfaction responsibility, including that the com- financially, to consumers, and that
– Contributing to a clean environment pany works towards future-proofing charges will be fixed at a level which
– Contributing to the climate efforts and facilities and maintaining and developing ensures Aarhus Vand’s capital stock and
adaptation to climate change its financial values. its operation.
– Assuming social responsibility through – Aarhus Municipality expects Aarhus
internships and employment on special Vand to have a continued focus on
conditions development, efficiency and possible
– Supplying the citizens of Aarhus with synergy effects advantageous to the
water of high quality and being among consumers and the owners.
the 30 least expensive municipalities in – Aarhus Municipality expects Aarhus
Denmark Vand to organise its actions and
– Ensuring that return on investments and arrangements in a way that will not
capital structures satisfy the set goals. cause an unnecessarily high risk for
Annual wheel, 2018
ANNUAL WHEEL FOR THE COLLABORATION WITH AARHUS MUNICIPALITY
MARCH APRIL MAY
Dialogue meeting Dialogue meeting Annual
with the Municipal Corporation with the Mayor general meeting
Involved parties: Involved parties: Involved parties:
Chairman of the Board, Director, Chairman of the Board, Chairman of the Board, Director,
Mayor, councillors and members of Director, Mayor and Mayor, Mayor’s Department and
the Municipal Corporation City Manager City Council
ANNUAL WHEEL FOR THE BOARD OF DIRECTORS
JAN FEB APR MAY MAY SEP DEC
1st 2nd Board of DANVA 3rd 4th
New Year’s
board board directors’ annual board board
reception
meeting meeting seminar meeting meeting meeting
Budget for
Financial
2019
statements
Business
2017
goals for 2019
7
The board
Flemming Besenbacher Keld Hvalsø
Chairman of the board Deputy Chairman
Professor of nano- Member of the
science and physics, Aarhus City Council
Aarhus University for Enhedslisten
Johanne Sønderlund Birn Ango Winther
Business owner Member of the
Aarhus City Council
for Socialdemokraterne
Almaz Mengesha Henrik Frier
Member of the Employee
Aarhus City Council representative,
for Liberal Alliance Aarhus Vand
Mads Thomsen Bjørn Rohde
Employee Employee
representative, representative,
Aarhus Vand Aarhus Vand
Jens Hørup Jensen
Consumer representative
8
Mission, vision and values
Mission Continued development of the produc-
Our mission is to offer and develop re- tion machinery combined with extensive ”WE” FEELING
source-efficient services throughout the participation in research projects and – We have each other’s best interests
entire water cycle, creating a climate- highly competent and well-educated at heart
adapted, sound environment, growth employees will help ensure that our sur- – We make room for diversity
and export, all of which will be of benefit roundings and we see Aarhus Vand as – We are good colleagues and rein-
to customers and stakeholders. the leading water company in Denmark. force our sense of community
– We build the best workplace
Vision Two of the key conditions to the com- together
Aarhus Vand wants to be Denmark’s pany’s success are that all employees
leading water company. at Aarhus Vand work individually and RESPONSIBILITY
together to implement our goals and to – We keep our promises and stand
Aarhus Vand will focus on developing keep our customers in focus in our daily by what we do
a value-adding water company with work. – We take responsibility for our
characteristics such as: Environmentally surroundings
sound, resource-efficient, energy-neu- Values – We improve our competencies
tral, well-run, innovative and partnership- At Aarhus Vand, we not only manage – We show initiative
promoting. by goals but also by values. Our four
basic values – ‘we’ feeling, responsibil- INNOVATION
Aarhus Vand has an excellent basis for ity, innovation and dialogue – are part of – We make room for creativity
creating overall solutions and committing our DNA. The values are related to the – We dare lead the way
to sustainability in relation to the entire following statements, which must guide – We realise ideas quickly
water cycle. The water and wastewater how we fulfil these values: – We challenge the way things are
sections each have their own strengths done
and potential and by coordinating them,
we can achieve a unique position. DIALOGUE
– We are honest and show respect
At the same time, excellent opportunities – We are open and trustful
have been created to streamline opera- – We give and receive praise and
tions by utilising synergies optimally in a complaints
wide range of areas. – We share knowledge and
experience
”WE HAVE
THE CUSTOMER
IN FOCUS”
9
Business Strategy
Our business strategy – Strategy 2020 – focus areas identify the three most impor- underlie productivity and must point out,
focuses on the development of a value- tant overall areas in which the company develop and accelerate new potential areas
adding water company which is charac- must develop in the coming years and of growth.
terised by being: Environmentally sound, strengthen the focus of our strategy work
resource-efficient, energy-neutral, well-run, towards 2020. This focus is an indica- We create growth by developing new busi-
innovative and partnership-promoting. tion that we wish to create development ness areas within our core areas of compe-
The strategy is based on our vision to be for ourselves and that we wish to support tence where there is no competition, and
Denmark’s leading water company and on growth, export, productivity and creativity where similar solutions and products have
our mission to offer and develop resource- in Denmark. Furthermore, our politicians not already been developed. We want to
efficient services in the entire water cycle, require that we continue to improve and establish a link between the existing growth
which create a climate-adjusted and become more productive. opportunities, fill a missing role and assume
healthy environment, as well as growth responsibility. Therefore, we want to create
and export for the benefit of our customers Growth by means of a creative and growth in areas where we see a need for
and stakeholders. In addition to developing exploratory approach development, but for which neither we
the company, our mission holds a desire The focus areas of growth, productivity and nor others have found a solution. This is
to create value for the surrounding society ingenuity interact and support each other. no easy task. It requires a creative and
and to support UN’s global goals for sus- We want to produce more at fewer ex- exploratory approach to development, and
tainable development. penses by reducing our costs and resource that is why our strategy of ingenuity works
consumption. At the same time, we want with developing managers’ and employees’
The strategy has three focus areas: to create meaningful growth that outweighs innovative competences.
Growth, productivity and ingenuity. The the increased productivity. Ingenuity must
VISION
AARHUS VAND WANTS TO BE DENMARK’S LEADING WATER COMPANY
STRATEGY 2020
Focuses on the development of a value-creating water company with characteristics such as:
Environmentally friendly, resource efficient, energy neutrality, well-running, innovative and
partnership promotion
GROWTH PRODUCTIVITY INGENUITY
GOALS FOR 2020 GOALS FOR 2020 GOALS FOR 2020
Growth grow Productivity grow Measured on the effect of
by 20% by 20% productivity and growth
GOALS FOR 2018 GOALS FOR 2018 GOALS FOR 2018
Growth grow Productivity grow Obtain an ingenuity score
by DKK 38 million by 2% of 93%
Cross-cutting focus areas:
New products and services, water knowledge, research and development
FOUNDATION
VALUES: ‘We’ feeling, responsibility, innovation and dialogue
MISSION: Offer and develop resource-efficient services throughout the water cycle in an
attempt to create a sound, climate-adapted environment, growth and export of benefit to
customers and stakeholders
Strategy 2020 – our ‘strategy house’ represents a framework for the direction in which
Aarhus Vand wants to be headed.
10We will develop new areas and create – Climate adaptation projects ment, the business objective being an inge-
growth in close cooperation with other – International projects nuity score of 93 percent.
water companies, water technology – Resource utilisation of waste water The main strategic projects for 2018 in
companies and research institutions. (energy and phosphorus). relation to ingenuity are:
The development of Marselisborg ReWater
is a good example of such cooperation. When it comes to productivity, our busi- – Marselisborg ReWater
Here, the objective is to develop the world’s ness goal is an annual 2% productivity – Automation of the production of drinking
most resource-efficient wastewater treat- improvement towards 2020 on operations water – including new waterworks in
ment plant, which would not be possible and capital investment. In 2018, productiv- Beder
with today’s solutions and ways of think- ity will mainly be driven by development – Process management.
ing. That is why we need a strong innova- in the IT area and by the introduction of
tive force if this project is to succeed. The digital production and workflows. In relation We have selected three cross-cutting prior-
knowledge and technology development to operations, we will continue to focus ity areas, which will help to ensure progress
we create along the way must, at the same on reducing our actual operating costs. In in the three focus areas:
time, turn into a good business, creating relation to capital investment, we will focus
new jobs and providing value to many on achieving the planned 2% efficiency – New products and services
people. improvements on projects for the renewal – Water knowledge
of water and wastewater pipelines in coop- – R&D.
Business goals focus on development eration with ‘Water Partner’. The following
For each of the focus areas of growth, pro- strategic projects support productivity dur- These three areas will help to support a
ductivity and ingenuity, we have attached ing the period 2018-2020: cultural change that will increasingly turn
a business goal which focuses on the de- Aarhus Vand into:
velopment we want to succeed with. The – Project portfolio and resource manage-
business goals express our focused efforts ment in the entire Aarhus Vand – A market-orientated company develop-
for 2018 and reflect the strategy towards – Digitisation. ing and offering new services
2020. We want to create overall growth of – A knowledge company developing and
DKK 120 million during the strategy period In relation to ingenuity, our ambition is to providing knowledge locally, nationally
from 2010 to 2020. For 2018, the aim is to become a more resourceful organisation. In and globally
create growth worth of DKK 38 million. The 2018, this development will be measured – A market leader, locally, nationally and
main growth areas in 2018 are: by means of our work climate measure- globally – in the field of applied R&D.
Our focus areas are:
growth, productivity and ingenuity.
11We integrate UN’s sustainable
development goals
UN’s 17 global goals for sustainable de- social accountability: Consumer relations, for us to integrate the global targets in our
velopment, adopted in 2015, is the most the environment, the climate and working Strategy 2020 and in the projects where
ambitious plan for the future of the planet. conditions, business ethics, human rights they are relevant.
To be successful, each and every one of us and our contribution to the development
must contribute. At Aarhus Vand, we have of local society. Furthermore, Aarhus Vand Primarily goals:
worked systematically with sustainability maintains a strategic focus on the environ- – 6 (clean water and sanitation)
for many years. We are a CSR certified ment and the climate, two areas in which – 13 (climate action)
company, which requires that we have full we perform considerably better than pre- – 14 (life below water).
control of the entire palette of topics within scribed by the law. Therefore, it is natural
12Our focus is on the local effort of providing We are world leaders when it comes to uti- Our wastewater treatment is of great
our customers with sufficient, clean drink- lising the resources in wastewater for green importance when it comes to safeguarding
ing water. To ensure this, we have for more energy. Our goal is to produce energy and life below water. A clean Aarhus Bay, with
than 10 years been working systematically recycle purified water and nutrients from the resulting biological and recreational
with drinking water quality through the wastewater to an extent not seen else- values, depends on effective purification of
comprehensive management programme where. We also have a goal of becoming very large volumes of wastewater, some-
“Documented drinking water quality”, completely energy-and CO2-neutral in thing, we have been quite successful at.
and we are certified as a food company 2030, and we are well on the way. In 2018,
in accordance with ISO 22000. Our aim the goal is to produce 55 per cent of the Furthermore, we assume additional re-
is to ensure clean drinking water also for energy we use in the entire company. sponsibility by contributing to the recrea-
future generations. This is done through Our know-how in the field of energy opti- tional use of lakes, streams and the port
a comprehensive groundwater protection misation and utilisation at our wastewater area. We have particular focus on stream-
programme and a series of action plans treatment plants has attracted attention lining the efficiency of our operation of
that, among other things, forbid the use of worldwide. This has resulted in rapid the wastewater treatment processes and
pesticides in confined areas with ground- growth, and in a number of countries, we future-proofing our facilities and purification
water interests. support capacity building and export of capacity further.
Danish technology.
In addition to this, we are working on mini- Our knowledge about effective wastewater
mising water loss in our pipeline network, Another important area is our efforts in treatment is already in demand globally
and so far, we have reached a historical relation to adapting Aarhus to climate and will contribute to raising the knowledge
low of 5.5 per cent. Globally, we focus change in order to avoid flooding. This of – and the level of – wastewater treat-
on transferring our knowledge in drinking places heavy demands on our infrastruc- ment in a number of countries. This will
water production to a number of countries, ture and management of the water cycle. mean an improvement of life below water
the United States, for instance, through Together with the citizens of Aarhus, the on a global scale.
the Water Technology Alliance and in Africa municipality and a number of experts, we
through 3Vand. will continue the development of value-
adding and effective climate solutions.
CSR GOALS 2018
Clean drinking water: (Goal no. 6) Climate adaptation: (Goal no. 13) Water environment: (Goal no. 14)
Limit value exceeded. Cooking of the Areas that change status from Emission requirements for wastewater
water recommended. common sewer to separate system. treatment plants that have an impact
Goal 2018: 0 Goal 2018: 75 hectares on the aquatic environment have been
exceeded. Goal: 0
Climate control measures: (Goal no.13) Water environment: (Goal no.14)
The energy produced at our wastewater Emission requirements for waterworks
treatment plants should cover 100% of the that have an impact on the aquatic
company’s energy consumption for electri- environment have been exceeded.
city and heat in 2030. Goal 2018: 55% Goal: 0
Climate control measures:
(Goal no. 13)
The total energy consumption at our
wastewater treatment plant
Goal 2018: 23 GWh
Resource utilisation:
(Goal no. 13)
Production of PhosphorCare
Goal 2018: 250 tonnes
13Strategic collaboration strengthens
Aarhus Vand and the industry
Entering partnerships within water technol- water and developing solutions for climate Aarhus Vand and ensure cross-pollination
ogy is part of Aarhus Vand’s DNA. We see change adaptations. of existing partnerships. It is about creating
ourselves as one of Denmark’s leading a close connection between what already
water companies in a number of areas, and Through partnerships, we at Aarhus Vand works well today in existing professional
we possess knowledge and competence stand every chance of succeeding with competencies, companies and partner-
that we would like to share with others. But Strategy 2020. Part of our strategy is ships.
we can also learn a great deal from others. ongoing development of our competence
This is why we collaborate closely with and knowledge. Our ambition is to have A number of water-related companies may
other Danish and foreign supply compa- the best specialised employees intend on achieve an increase in growth and produc-
nies, municipalities, consultants, education- finding optimal solutions. This is best done tivity through strong cooperation. Together
al institutions, researchers, entrepreneurs in interdisciplinary, instructive and innova- with the other partners in 3Vand (Hofor,
and suppliers. tive interaction with our partners and other Biofos, Vandcenter Syd), Aarhus Vand has
stakeholders, for instance through formal- laid the foundations of a water accelerator,
By working together with some of the best ised partnership agreements, knowledge regionally and nationally, that is going to be
partners in the industry, we find new ideas, networks and alliances. further developed, take form and increase
opportunities, and solutions to the chal- value creation in 2018.
lenges we face. Challenges such as limiting Water accelerator
energy consumption in the production of We have a desire to create a national coop- Vandpartner
drinking water and wastewater treatment, eration on water technology in recognition In 2016, we established a public-private
producing enough energy to get an energy of the real problems and needs of the mar- water partnership together with Samn For-
neutral water cycle, reducing the emis- ket. And we see a great need to accelerate syning (the former Odder Spildevand) and
sion of CO2 from our activities, and using this cooperation in the Danish water sector Favrskov Forsyning for the period 2016
resources such as phosphorus in waste- so as to create additional partnerships for – 2021 on the renewal of water lines and
”PARTNERSHIPS
ARE A PART OF
OUR DNA”
14purification plants in Odder, Favrskov and Shared 3Vand
Aarhus Municipality. The main partners are Shared is a service company that provides 3Vand is a network-based, strategic coop-
the firms of consultants Envidan and Niras administrative services to the four utilities eration between Hofor, Biofos, Vandcenter
and contractors Arkil, Aarsleff and Vam. of Favrskov, Morsø, Syddjurs Wastewater Syd and Aarhus Vand. We share a number
In addition to this, Norva24, NCC, Sulzer, Treatment Plant and Aarhus Vand. of interests and want to take the lead in the
LE34 and FKSSlamson also take part. industry, set a political agenda and support
The partnership, Vandpartner, includes The purpose of Shared is to economise the export of Danish water technology and
scheduling, digging up, lining, TV inspec- and streamline in order to create added Danish solutions.
tion, pump stations and measuring. value for the parties. By pooling resources
in a shared service company, we can afford At 3Vand we are focusing on R&D, and
Our experience with partnering over the to have highly specialised staff with the we cooperate on political topics such
past 15 years has shown us that we ben- right experience, which gives us a bet- as groundwater protection. We share a
efit greatly from this type of cooperation. ter hand when we offer our goods and number of challenges, and, together, we
It has meant an increase in efficiency and services. And together we can achieve a can develop the right solutions and attempt
a decrease in costs. The essential point of greater volume and reap the ensuing ben- to influence Government’s decision-making
the partnership agreement with Favrskov efits and savings. through lobbying. When the three largest
Forsyning and Samn Forsyning is that it municipalities and the three largest water
must help improve the quality of our work The collaboration should also include other companies in Denmark agree, it will not go
and enable us to create innovative meas- administrative services such as shared IT unnoticed by politicians or authorities.
ures and optimise the work processes and wage administration. One of the goals
to the benefit of all parties involved: our is also to expand the circle of owners. WTA
customers, the three supply companies 3Vand’s ambition is strong international
and the external companies. efforts to stimulate growth and export in
15the water sector. For instance, through PhosphorCare
the Water Technology Alliance (WTA), the The goal of the government’s resource
purpose of which is to support the Danish strategy, ‘Denmark free of waste’, is that
water industry in their efforts to embark on 80% of all the phosphorus from our sew-
the American market as well as to make age sludge must be recycled in 2018. It
the Danish water model more known. is an ambitious but important goal since
phosphorous is a scarce resource, and
So far, WTA has been established in Chi- prices are soaring. Phosphorous forms
cago (WTA Chicago) and San Francisco part of our cells and bones, and without it,
(WTA California). In Chicago, the alliance plants would not be able to grow.
consists of 3Vand, the Danish Trade Coun-
cil and the companies Danfoss, DHI, AVK, In a partnership with Herning Vand, Grund-
Landia and Linak & Nissen Energi Teknik. fos, Norconsult and Knowledge Centre for
WTA Chicago has an employee posted in Agriculture and the Danish Pig Research
Chicago, who is to act as a bridgehead for Centre (SEGES), we have managed to
Danish export companies in relation to op- turn the phosphorus in wastewater into
portunities and specific tasks in the field of a fertiliser rather than a waste product.
energy optimisation and energy production In the partnership, we have developed a
in the wastewater sector. concept that has been implemented at
Åby Wastewater Treatment Plant, where
Aarhus Vand also has a cooperation agree- we, as one of the first places in the world,
ment with the Chicago-based wastewater extract the phosphorus in wastewater and
company Metropolitan Water Reclamation resell it as a fertiliser of high quality under
District of Greater Chicago. The coopera- the name ‘PhosphorCare’. Herning Vand
tion agreement is about our mutual obliga- has also built a wastewater treatment plant,
tion to exchange employees and know- and Aarhus Vand is going to open a plant
ledge in specific areas. by Marselisborg Wastewater Treatment
”By working Aarhus Vand, The Danish Trade Council
Plant in 2018, which will be Scandinavia’s
largest plant, with an expected production
together with and 12 other Danish companies have
established WTA California to promote
of phosphorus fertilisers of up to 800 kg
per day.
some of the Danish export within the drinking water and
best partners wastewater sectors. WTA California must
therefore increase the knowledge and use
The concept has attracted great interest,
not only in Denmark but also from abroad.
in the industry, of Danish water technology solutions that
contribute positively to solving California’s
In Denmark, there is a potential of con-
structing 20-30 phosphorus plants, and the
we find new critical water shortage as well and achieve export potential is estimated to be DKK 1.6
ideas, oppor- the goals for the reduction of greenhouse
gases.
billion over a 10-year period. New EU legis-
lation on recycled phosphorus products are
tunities and Aarhus Vand is the coordinator of the
on the way in 2018 and will increase the
possibility of extending the concept further.
solutions” Alliance. With the support of the Danish
Industry Foundation and assistance of the The partnership has entered a contract
Consulate General in Chicago, we have with French Suez, one of the world’s
posted an employee in San Francisco, who largest water companies, for assistance in
is to create close cooperation between building a phosphorus plant based on the
Danish and American utilities, public technology developed in the partnership.
authorities and educational and research And Aarhus Vand has entered an agree-
institutions in the field of water. The Alliance ment about an innovation partnership,
consists of the Export Council, 3Vand as where the concept may be further devel-
well as the companies Kamstrup, Applied oped together with Suez Water S.A. and
Biomimetic, Danfoss, Grundfos, Rambøll, the Danish company Stjernholm A/S. Suez
Smith Innovation, Skytem, DHI, Leif Koch, is now offering this concept on the global
AVK, IGIS and LiqTech. market and expects to build at least 2-3
plants each year in the future.
16The world’s most resource-efficient
wastewater treatment plant
A new wastewater treatment plant by Aarhus Vand’s ambition to be energy-and entitled “Automation and improved working
Marselisborg in southern Aarhus is set CO2-neutral by 2030 at the latest. environment” is about how we use robots
to be an international lighthouse for to create an even better working environ-
resource utilisation of wastewater. A 15 innovation challenges to be addressed ment and completely avoids employees
strong focus on innovation will ensure The goal for the plant is ambitious, and in getting into direct contact with the waste-
that not only known technology, but also order to succeed, we need new solutions water, for instance. The project “Resources
the technology of the future, is brought and new ways of thinking. That is why we in the wastewater – now and in the future”
into play. must focus on innovation. The first step uncovers which resources can be found in
was a kick-off event in the spring of 2017 the wastewater – besides the ones already
The plant, which will be ready in 2026, will to attract the cream of Danish compa- being utilised today. It will be a great help
be called Marselisborg Resource Facility nies, manufacturers, suppliers, research in determining which processes the plant
and will also be marketed as Marselisborg institutions and entrepreneurs interested in will have to accommodate. Alginate is an
ReWater. The ambition is that – in addition contributing to the innovation of the plant example of a future resource in wastewater
to meeting the current and future demands through partnerships. The next step con- which can be used to create artificial skin,
for wastewater treatment – the plant will be sisted of 50 “speed dates” with potential among other things.
the world’s most resource-efficient waste- partners to find out if there was a perfect
water treatment plant. match for future cooperation. Knowledge as cool business
In addition to the sub-projects, we will be
The name signals that besides purifying The speed dates were based on 15 inno- working on an EIA study together with
wastewater and ensuring a good water vation challenges representing the chal- Aarhus Municipality in 2018 to clarify the
environment in Aarhus Bay, the plant is go- lenges that we must overcome to develop environmental impact of placing the facility
ing to produce energy and recycle purified a state-of-the-art plant for 2026 and at Østhavnen near the existing plant at
water and nutrients from wastewater to an beyond. Based on the speed dates, we Marselisborg. We appointed a building
extent not seen elsewhere in the world. designed a number of sub-projects that we owner consultant in 2017, who will help us
will seek funding for together with the part- establish two consortia in 2018, which will
The purpose of utilising the resources in the ners. This work will continue in 2018. One focus on “resources and processes” and
wastewater is to reduce the costs of treat- of the sub-projects – “Mars on the Moon” “architecture and buildings” respectively
ing wastewater by including the resources – is about developing a modular system with a view to development, specifica-
in the circular economies through the sale focussing on the structure that connects tion and supply. Last but not least, we will
of energy, fertilisers and purified wastewa- the individual modules. The purpose is be working with new business models in
ter. Furthermore, the aim is to reduce CO2 to build a plant so flexible that it can be 2018 that will help turn the knowledge we
emissions and save on scarce resources expanded and changed in proportion to acquire along the way into a good busi-
such as phosphorus. It must support a growing population and the develop- ness, creating new jobs and value to many
Aarhus Municipality’s climate strategy and ment of new technologies. Another project people.
Marselisborg ReWater will ensure a good water environment in Aarhus Bay.
17”TRUELSBJERGVÆRKET IN
AARHUS IS TOMORROW’S
WATERWORKS”
18We are undergoing
a digital transformation
The world around us is constantly changing, – We accelerate and sharpen our transformation
and our digital strategy, which is an integral from administration to customer-based business
part of Strategy 2020, supports a digital trans- and, in doing so, ensure Aarhus Vand’s future
formation of the company. livelihood
– We increase productivity, create value and pro-
As a company, we are more and more often met mote ingenuity
with a demand for increased efficiency, and our – We create even better frameworks and condi-
customers and the surrounding community commit tions for employees and contribute to improving
themselves more and more to new technologies job satisfaction and motivation
and go digital. New business models emerge, – We can quickly and effectively respond to and
fundamentally challenging the current models, adapt to future changes in the water sector.
and digital product innovation takes place with
unprecedented ease and speed. The organisation Our digitisation strategy is an integral part of
as we know it today is disappearing, as companies Strategy 2020. It defines which strategic areas
are forced to adapt to the digital world – and their Aarhus Vand must develop, support and strength-
employees, to new working methods. en through digitisation:
– Organisation: That we have the right organisa-
Therefore, in order to achieve our long-term goals, tion and governance to ensure coordination,
digitisation is a critical and essential transforma- focus and utilisation of synergies across Aarhus
tion which creates the foundation for Aarhus Vand Vand.
maintaining a relevant and competitive position – IT and systems: That we provide an overview
in the market. With our digital strategy, it is our and a high degree of standardisation of our
ambition that Aarhus Vand should become a digital system landscape; that we establish a mobile
role model and trendsetter for the water industry – and digital platform available to everyone
nationally and internationally. – Data as raw material: That we display and
activate our data to optimise and create solu-
Digitally first tions, services, and business processes through
The digital transformation is a journey we em- data-driven information and support in decision-
barked on some time ago, and since then we have making.
developed many ground-breaking digital solutions. – Optimisation of the business: That digitisation
But now is the time for high-priority strategic efforts supports improved productivity and less waste,
in digitisation, involving increased, controlled coor- thus leading to a high degree of job satisfaction.
dination, prioritisation, knowledge-sharing, compe- We create the framework for better cooperation
tency development, standardisation and speed. and knowledge-sharing.
– Customers: That we offer new digital services
Digitisation requires that we take on new behav- targeted specifically toward customers’ present
iour, that we think and act digitally. A new mindset and future needs through new insights.
of “digitally first” is to become part of our DNA,
a central point in our business strategy, Strategy Through active participation in digital ecosys-
2020. It is therefore essential that the transforma- tems across activities, we will develop our digital
tion should be created, owned, implemented – and competence and create new digital solutions to the
felt – by everyone at Aarhus Vand. Digitisation will industry.
make Aarhus Vand an even more exciting and chal-
lenging place to work, a place that will continue to In each area, we will set some long-term, strategic
attract new and competent colleagues. goals for how they can be promoted and support-
ed by means of digitisation. Specific project activi-
Digitisation in support of Strategy 2020 ties will be prioritised based on how they contribute
Digitisation is a fundamental prerequisite for en- to improving productivity, creating new business
suring that we can meet our strategic goals and areas and growth, and on their ability to be a driver
ambition: of digital innovation.
19We are creating a strong
corporate culture
Our complex and changing environment herent whole and direction in the daily work management, which gives the individual
makes it increasingly difficult to manage and which helps us to make the right and employee greater flexibility and freedom to
and run the company exclusively on the necessary decisions. The common basic decide for themselves.
basis of fixed guidelines and proce- values help to build a strong corporate
dures. This is why we have supplement- culture and a dynamic organisation: It is Value-based leadership is about
ed our management system with a set a good starting point for leadership and taking responsibility
of strong core values and why we work collaboration in a workday full of change Since we defined our core values, we have
with value-based management. and with an ever-growing demand for continuously been developing a value-
increased productivity. based style of management which aims
Our core values consist of the values to achieve greater efficiency as well as a
we-feeling, responsibility, innovation and We free up resources when it is values higher degree of employee satisfaction.
dialogue. Our core values are part of our rather than rules that guide us in our work. Value-based management is not about
DNA, a standpoint which ensures a co- Therefore, we have a strong focus on self- whether or not we should have goals. To
20us, value-based management is about how we take responsibility in order to HR strategy
achieve our goals and how we turn management into a common task. It is a Our new HR policy will be implemented in
question of good leadership and not least about leading and being led. With 2018. The objective of the policy is to ensure a
value-based management, employees assume a high degree of autonomy, well-functioning workplace and to provide the
which will enable them to act appropriately in unforeseen or critical situa- framework for continued development, so that
tions. They can improvise and act in the best possible way thanks to the core Aarhus Vand will continue to be an attractive and
values, which enable them to decide what to do without having to seek advice dynamic workplace that attracts and maintains
or permission from management. We make room for employees’ creativity and skilled staff in a healthy working environment.
competences to unfold, which, in turn, increases their sense of responsibility The strategy focuses on the following key areas:
and their potential for further development. And it gives us a flexible organisa-
tion – an organisation in motion and geared towards absorbing changes and An attractive workplace. This will be one of
adapting to customer demands. our most important competition parameters. As
a leading water company and a good place to
work, we must use our brand to actively attract
the right competences. We will invest in employ-
ees’ working lives through targeted competency
development so that we can meet future needs.
“Well on the way”. New members of staff will
meet with the Director for an informal talk about
our corporate culture and will be assigned a
mentor who plans the introduction to Aarhus
Vand together with the immediate manager.
Within the first 6 months of employment, every-
one will be called in for a “well-on-the-way
interview” to ensure that we keep improving the
way we welcome our new colleagues.
Structured competency development. The
leaders are equipped to take charge of compe-
tency development of our employees. Employee
competency development must be seen as a
Above: Our value base consists of the values ‘we’ process rather than stand-alone courses so
feeling, responsibility, innovation and dialogue – in as to ensure consistency between the compe-
everyday terms the WATER values. tency enhancement and the strategy, and must
be translated into real competences. We are
To the left: With our leak search trailer we save developing “Aarhus Vand Academy”, providing
80 percent of time finding leaks on the grid. wide and varied training opportunities for all
employees.
Recruitment with care. One of the biggest fac-
tors of differentiation in tomorrow’s water industry
will be the ability to attract the right people. We
want to create the right balance between profes-
sionalism and personality based on a holistic
approach. We look not only at professional com-
petence. We also consider whether a candidate
has a personality that fits well into an organisa-
tion with value-based management.
21Organisation
Aarhus Vand is one overall public limited company with a simple, logical organisation divided into three departments.
SHARED A/S AARHUS VAND A/S
Theres Bonney Lars Schrøder AARHUS VAND TA
Director Managing director
PLAN AND PROJECT PRODUCTION BUSINESS SUPPORT
Claus Møller Pedersen Claus Homann Mads Bayer
Department manager Department manager CFO
PLAN AND PROJECT AARHUS VAND TA and department managers of Aarhus Vand
Is responsible for planning tasks, imple- In 2017, Aarhus Vand has established a Claus Homann and Claus Møller Pedersen
menting construction works, pipe reg- subsidiary company for the purpose of make up the Board of Directors. Aarhus
istration and GIS systems as well as for managing the accounts of activities falling Vand constitutes the parent company,
coordinating development activities. A very outside the company’s core areas. The which owns the new company 100%, and
large part of the tasks is handled through company is called ‘Aarhus Vand TA’, where the board of Aarhus Vand constitutes the
projects with internal and external partners. ‘TA’ is an abbreviation of the Danish expres- general assembly.
A significant share of the department’s con- sion ‘Tilknyttet Aktivitet’ (‘associated activ-
struction projects is completed in collabora- ity’). Associated activities are those activities With the regulation of the Danish Water
tion with external advisors and contractors. that do not fall directly within the scope of Sector Act, Aarhus Vand may need another
our main activities, which include the provi- company structure in order to carry out the
PRODUCTION sion of drinking water, wastewater treat- activities necessary to achieve our strategic
Delivers drinking water, purifies wastewa- ment and adaptation to climate change. goals.
ter and utilises resources such as energy Aarhus Vand TA mainly includes our growth
and phosphorus from wastewater to the activities such as our international activities SHARED
benefit of the citizens and the environment in the United States and in Zambia. Together, Aarhus Vand, Syddjurs Spilde-
in Aarhus. The department ensures high vand, Favrskov Forsyning and Morsø
quality, efficiency and continuity of supply Revenue from the associated activities can- Forsyning have established a service
through operation, service and develop- not exceed DKK 2 million within the frame- company, Shared. The purpose of Shared
ment activities. work of Aarhus Vand; however, we expect is to economise and streamline in order to
revenues significantly above this limit. That create added value for the owners. Based
BUSINESS SUPPORT is why we are obliged by law to set up a on joint purchasing, the company will han-
Consists of HR, Customer Service, Devel- special company to handle the activities dle a number of tasks and services that will
opment and Finance, which together and which exceed the DKK 2 million limit. benefit the customers of each utility.
separately support the business, both in
relation to the customers we have internally CFO of Aarhus Vand, Mads Bayer, is the
at Aarhus Vand and to our customers in director of Aarhus Vand TA, and managing
and outside Aarhus Municipality. director of Aarhus Vand, Lars Schrøder,
22A mixer from biotank at Egå Renseanlæg helps to ensure better waste water treatment.
Aarhus Vand’s employees in numbers 2016 2017
Number of employees 209 217
Converted into full-time employees 202 207
Percentage distribution, women 29% 33%
Percentage distribution, men 71% 67%
Number of civil servants 23 22
Average age, all employees 48.4 47.7
Staff turnover 9,3% 9,8%
23Sharpening the focus on financing
Increased focus on the financing of our a new wastewater treatment plant – tegy to ensure the necessary financial
activities in the coming years means Marselisborg Rewater. scope for the coming years.
greater consistency between invest-
ment, charges and the financial frame- The great demand for investment exerts in- Dialogue on the financial framework
work. creased pressure on our liquidity, especially As part of the strategy, we want to engage
in the context of the increased require- in a dialogue with the financial authority in
We are experiencing a large influx of new ments for continuous improvement of the the Supply Secretariat and the Danish
customers in line with the many newly-built efficiency of our operating expenses and Energy Agency to ensure that the finan-
houses in Aarhus Municipality. This calls fixed assets we are met with from politi- cial regulation takes account of the deve-
for expansion of our assets, for instance cal side. In addition to this, we are under lopment in municipalities of growth and
our wastewater treatment plants and pressure financially from a governmental municipalities in need of fundamental
waterworks, and renovation of our existing requirement of imposing a ceiling on our structural changes. As part of the strategy
assets. The next few years, we are going revenue. We pay much attention to obser- we will systematically apply business cases
to focus on the construction of a new wa- ving the requirements we are met with, the and asset management to make sure that
terworks in Beder, ongoing renewal of our requirements of the municipal wastewater the projects we embark on are the ones
water and wastewater pipelines, adapta- plan, for instance. In light of these require- that will give us value for money.
tion to climate change as well ments, we have
as preparations designed a We will work systematically towards realis-
for financial ing new areas of revenue which may help
stra- improve our financial situation. This will
require an extension of the very rigid frame-
work for new income areas – and call for a
constructive dialogue.
Finally, we will carry out a study to find out
what is the best financial solution in relation
to our many substantial, long-term invest-
ments, and we will need even tighter
control of the company’s cash flow.
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