美股-环境服务业-北美环境服务业：WM管理会议纪要

www.ubs.com/investmentresearch This report has been prepared by UBS Securities LLC. ANALYST CERTIFICATION AND REQUIRED DISCLOSURES BEGIN ON PAGE 22. UBS does and seeks to do business with companies covered in its research reports. As a result, investors should be aware that the firm may have a conflict of interest that could affect the objectivity of this report. Investors should consider this report as only a single factor in making their investment decision.  Global Research 18 December 2018 North American Environmental Services WM management call: Takeaways & transcript We hosted a call with Waste Management senior management We recently hosted a call with Jim Fish, President & CEO, Devina Rankin, SVP & CFO and Ed Egl, Director of Investor Relations for a fireside chat on WM's volume trends and outlook. The call was part of our ongoing UBS Management Series conference calls which aim to enhance clients understanding of public company operations through deep-dive discussions with senior management teams. Key takeaways WM has outperformed its solid waste peers on volume growth over the past 3 years with 2.1% avg. annual volume growth compared to 0.9% for peers on average. Management believes differentiation can drive volume growth, and that a key source of differentiation is the utilization of technology. WM hired a Chief Digital Officer ~ 1year ago with the intent of driving the deployment of technology throughout WM's business, including both customer facing the internally. In addition, WM has streamlined its salesforce and implemented technology to drive a more targeted sales process to grow national accounts and service upgrades (more pickups/larger containers). In its recycling business, WM is implementing contamination fees and plans to open a new positive sort recycling facility in 3Q or 4Q 2019 which is expected to drive a 60% reduction in labor compared to a traditional recycling facility. We expect WM to remain committed to the core waste business and return excess cash to shareholders. Stock implications We rate WM at Neutral with a $90 price target based on 11.0x 2019E EV/EBITDA which includes a +0.5x adjustment for WM's higher average FCF/EBITDA conversion to our industry base multiple of 10.5x. Equities North America General Industrial Services Jon Windham, CFA Analyst jon.windham@ubs.com +1-617-478-4711 William Grippin, CFA Analyst william.grippin@ubs.com +1-617-478 4740 Daniel Ford, CFA Analyst dan.ford@ubs.com +1-212-713-2224 North American Environmental Services 18 December 2018  2 We present below a transcript of our recent call with Jim Fish, Devina Rankin, and Ed Egl from Waste Management (WM). We have edited the transcript below for clarity. Minor grammatical changes that do not impact the meaning of content have been applied. The opinions expressed by Jim, Devina, and Ed herein do not necessarily reflect the views and opinions of UBS. UBS accepts no responsibility for the accuracy, reliability