Third Quarter

Transcription

1 Third Quarter

2 Financial highlights NOK million 3Q 05 3Q 04 YTD 05 YTD 04 Revenues RVM Technology Collection & Materials Handling Recycling Technology Other non-deposit activities Operating profit excluding restructuring charges Operating profit including restructuring charges (12) 159 Cash flow from operations

3 Initial remarks The process of assessing which business areas will be included in the future strategic scope of TOMRA has been completed Divestment of Brazilian operations was concluded on 31 August for a sales price of 19 MUSD (122 MNOK) in cash payment The remaining business areas constitute TOMRA s future platform Ambition level for the previously announced cost reduction program is maintained despite increased activity level in Germany Cost reduction target of ~80 MNOK maintained despite increased activity level in R&D and engineering and capacity ramp-up in production Expected total restructuring charges in 3Q and 4Q will be reduced from 30 MNOK to 20 MNOK 2

4 SEGMENT: RVM Technology 3

5 RVM Technology - Financials NOK million 3Q 05 3Q 04 YTD 05 YTD 04 Revenue Nordic Central Europe & UK Rest of Europe US East/Canada Gross contribution (in %) 141 (47%) 159 (52%) 382*** (46%) 469 (51%) Operating expenses 101* 101** 331**** 309** Operating profit (in %) 40 (13%) 58 (19%) 51 (6%) 160 (17%) * Including restructuring charges of 6 MNOK in 3Q 05 ** Including restructuring charges of 7 MNOK in 3Q 04 *** Including write-downs of 12 MNOK (in 2Q 05) **** Including restructuring charges of 40 MNOK (1Q+2Q+3Q 05) 4

6 RVM Technology Highlights Europe Revenue decrease of 4% to 201 MNOK in 3Q 05 versus 209 MNOK in 3Q 04; year-to-date revenues down 14% due to weaker EURO and lower sales Increased sales in Denmark in August and September due to several new store openings Increased RVM installation rate in Holland from September due to new legislation North America Revenue increase of 11% to 15.1 MUSD in 3Q 05 versus 3Q 04, 4% increase in NOK to 98 MNOK; yearto-date revenues in USD up 7%, unchanged in NOK Stronger volumes main driver behind growth 5

7 RVM Technology Orders from Germany ~100 reverse vending systems to be installed in ~35 GLOBUS hypermarkets Total contract value of MEUR depending on choice of backroom solutions and share of machines delivered with crate unit Systems to be installed end of 2005 and beginning of 2006 A firm order for ~1,200 RVMs and an option for up to 500 additional machines to Ali Süd s ~1,650 stores Most of the machines are stand-alone machines with limited backroom solutions The machines will be delivered and installed during 1H 2006 There is a need to keep tight control over the supply chain during the roll-out in Germany Therefore, a potential change of strategic ownership of Tomra Production AS has been postponed Harmonization of product portfolio and outsourcing of certain components/platforms will continue 6

8 SEGMENT: Collection and Materials Handling

9 Collection & Materials Handling - Financials NOK million 3Q 05 3Q 04 YTD 05 YTD 04 Revenue US East/Canada US West Gross contribution (in %) 65 (26%) 59 (25%) 153 (24%) 143 (23%) Operating expenses Operating profit (in %) 32 (13%) 26 (11%) 60 (9%) 46 (7%) 8

10 Collection & Materials Handling Highlights US East/ Canada 3Q 2005 revenue increase of 7% to 22.1 MUSD in Materials Handling operations vs. 3Q 2004; up 1% in NOK to 143 MNOK YTD revenues in USD up 4% to 57 MUSD; down 3% measured in NOK US West/ California) 3Q 2005 Collection revenues up by 18% vs. 3Q 2004 to 16.3 MUSD; up 9% measured in NOK to 104 MNOK YTD revenues in USD up 19% to 44.4 MUSD; up 11% in NOK 9

11 Collection & Materials Handling margin development 12-months rolling average operating profit (EBIT) margin Percent Continued efficiencies driving improved profitability in Materials Handling operations JAN 04 FEB 04 MAR 04 APR 04 MAY 04 JUN 04 JUL 04 AUG 04 SEP 04 OCT 04 NOV 04 DEC 04 JAN 05 FEB 05 MAR 05 APR 05 MAY 05 JUN 05 JUL 05 AUG 05 SEP 05 Higher aluminum price and collection volumes main reason for growth and improved profitability in Collection 10

12 SEGMENT: Recycling Technology 11

13 Recycling Technology - Financials NOK million 3Q 05 3Q 04 YTD 05 YTD 04 Revenue Nordic Central Europe & UK Rest of Europe US/Canada Rest of World Gross contribution (in %) 45 (47%) 16 (67%) 121 (46%) 16 (67%) Operating expenses * 11 Operating profit (in %) 15 (16%) 5 (21%) 18 (7%) 5 (21%) * Including restructuring charges of 3 MNOK in 2Q 05 12

14 Recycling Technology Highlights Continued strong performance in both TiTech and Orwak Group operating margin of 16% in 3Q Strong operating margins driven by operational leverage in both TiTech and Orwak Group Order backlog of 77 MNOK end of 3Q 2005 vs. 65 MNOK end of 3Q 2004 supports strong development in 4Q 13

15 Recycling Technology - Order book Order book NOK million Q02 1Q03 2Q03 3Q03 4Q03 1Q04 2Q04 3Q04 4Q04 1Q05 2Q05 3Q05 Timing 14

16 SEGMENT: Other non-deposit activities 15

17 Other non-deposit activities - Financials NOK million 3Q 05 3Q 04 YTD 05 YTD 04 Revenue Gross contribution (in %) 9 (15%) 15 (15%) 39 (16%) 39 (14%) Operating expenses * 79 Operating profit (10) (-17%) (10) (-10%) (124) (-49%) (40) (-15%) * Including total restructuring charges of 86 MNOK in 2Q 05 16

18 Other non-deposit activities Japan Prerequisites for success in place High UBC volumes Consumer behavior favorable Existing manual solutions expensive Increasing PET (aluminum) commodity prices Current TOMRA technology applicable (with some modification) 10 RVMs operating in Tokyo municipalities Municipalities satisfied Positive consumer response sufficient volumes Retailers satisfied by higher customer traffic STRONG MOMENTUM CREATED, BUT SIGNIFICANT VOLUMES EXPECTED NO EARLIER THAN 2007/

19 Other non-deposit activities UK Key elements in business model to be assessed Current system costs low due to low recycling rates (but potential future costs high) Business model depends on high collection volumes to finance cost of technology Current TOMRA technology applicable, but must be industrialized 5 TRCs operating in the UK Consumers like them and use them, however Harder to change behavior than in Japan Volumes without incentives too low Plastics/metal mix unfavorable Incentives implemented Positive initial effect, too early to conclude Simple awareness building just initiated SIGNIFICANTLY INCREASED VOLUMES NEEDED 18

20 Invitation to Capital Markets Day Tomra Systems ASA invites all investors, fund managers and analysts to a Capital Markets Day on 8 November 2005 between 08:30 AM and 12:30 PM. Visiting address will be Drengsrudhagen 2, Asker. Registration will start at 8:00 AM. Key topics include: Overall TOMRA strategy and business plan going forward Project Germany expectations and preparations North America business strategy overview Non-deposit initiatives RVM product development and harmonization If you would like to attend the event, please send your confirmation to Ragnhild Ringheim via at ragnhild.ringheim@tomra.no or via fax , including your contact information, by 1 November

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22 Addendum slides

23 Major shareholders* Shares Ownership 1. Folketrygdfondet % 2. State Street Bank & Client Omnibus D % 3. Danske Bank A/S 3887 Operations Sec % 4. Orkla ASA % 5. Morgan Stanley & Co. S/A Custrom Segrega % 6. Vital Forsikring ASA DnB NOR Kapitalforvaltning % 7. JP Morgan Chase Bank Clients Treaty Account % 8. Clearstream Banking CID Dept, Frankfurt % 9. VPF DNB NOR Norge % 10. SIS Segaintersettle % SUB-TOTAL % Other shareholders % TOTAL ( shareholders) % Total foreign ownership % *Registered 30 September

24 Shares & shareholders* Number of Country Shares shareholders Ownership 1. Norway ,2 % 2. Great Britain ,2 % 3. USA ,2 % 4. Denmark ,3 % 5. Luxembourg ,9 % 6. Switzerland ,0 % 7. Sweden ,0 % 8. Belgium ,8 % 9. Germany ,7 % 10. Irland ,6 % Total ,8 % *Registered 30 September