2 ND QUARTER 2013 RESULTS ANNOUNCEMENT

Transcription

1 2 ND QUARTER 2013 RESULTS ANNOUNCEMENT TOMRA SYSTEMS ASA 18th of July 2013

2 HIGHLIGHTS FROM THE QUARTER INCLUDE Revenues Gross margin Revenues of 1,177 MNOK (948 MNOK in second quarter 2012). Organic, currency adjusted revenues were: - Up 2% for TOMRA Group - Up 3% TOMRA Collection - Down 4% in TOMRA Sorting Gross margin 42%, down from 47% in second quarter Change in product and market mix - Down in TOMRA Sorting due to the BEST acquisition EBITA EBITA of 172 MNOK (180 MNOK in second quarter 2012) - Including 8 MNOK restructuring charge Cashflow from operations Other Cashflow from operations of 120 MNOK (109 MNOK in second quarter 2012) Order backlog of 501 MNOK in TOMRA Sorting, down from 560 MNOK in first quarter

3 FINANCIAL HIGHLIGHTS P&L STATEMENT 2 nd Quarter 1 st Half Amounts in NOK million Adj* Adj* Revenues 1, ,143 1,784 1,774 Collection Solutions ,297 1,283 1,276 Sorting Solutions Gross contribution in % % % % % % % Operating expenses EBITA in % 15% 19% 19% 13% 18% 17% Excluding the divested unit, TOMRA Pacific *2012 actual restated at 2013 exchange rates, estimated 3

4 FINANCIAL HIGHLIGHTS BALANCE SHEET, CASH FLOW AND CAPITAL STRUCTURE Amounts in NOK million 30 June June Dec 2012 ASSETS 5,572 4,028 5,159 Intangible non-current assets 2,396 1,405 2,295 Tangible non-current assets Financial non-current assets Inventory Receivables 1,259 1,076 1,078 Cash and cash equivalents LIABILITIES AND EQUITY 5,572 4,028 5,159 Equity 2,407 2,098 2,283 Minority interest Interest bearing liabilities 1, ,551 Non-interest bearing liabilities 1,336 1,114 1,251 Ordinary cashflow from operations 120 MNOK (109 MNOK in 2Q 2012) Cashflow from investments (ex M&A) 62 MNOK, (52 MNOK 2Q 2012) Solidity 45% equity NIBD/EBITDA = 1.8 (Rolling 12 months) Dividend of 185 MNOK (1.25 NOK per share) paid out in May 2013 BEST Kwadraat NV Fully consolidated from 2 July

5 TOMRA Collection Solutions 5

6 HIGHLIGHTS COLLECTION SOLUTIONS Revenues equaled 699 MNOK in second quarter 2013, up from 672 MNOK in second quarter Revenues up 3% in local currencies Overall Gross margin was 42%, down from all time high margin of 44% same period last year - Influenced by product and market mix EBITA decreased from 135 MNOK to 127 MNOK, explained by lower margins Europe Currency adjusted revenues up 3% in Europe Somewhat down Nordic Higher activity in Central Europe North America Currency adjusted revenues up 4% in North America Volume growth in Material recovery 6

7 COLLECTION SOLUTIONS FINANCIALS 2nd Quarter 1st Half Amounts in NOK million Adj* Adj* Revenues ,297 1,283 1,276 Nordic Central Europe & UK Rest of Europe US East/Canada Rest of the world Gross contribution in % % % % % % % Operating expenses EBITA in % 18% 20% 20% 17% 19% 19% 7

8 SUPPLY CHAIN THE TOMRA WAY: LEAN PRODUCTION AND OPTIMIZED LOGISTICS AMBITION: 40% COGS REDUCTION ON NEW RVMs Execution: Complete turnaround of our supply chain Before: 80% from high cost countries Now: 50% from low cost countries Ambition: 70% from low cost countries 1) Assembly in Myslowice, Poland and Lier, Norway. Lier has reduced assembly time of 10% on key products every year since ) TOMRA Xiamen, established in 2010, is handling all the local sourcing and module production in China A 40 container with parts and modules ships from Xiamen to Lier every second week The mix of parts and modules are delivered directly to the assembly line ship the line 8

9 COGS PROGRAM REMAIN IN FOCUS: NOW ENTERING A NEW STAGE 40% Supply chain management was the major contributor to the achieved COGS savings to date. The lions share of components identified for sourcing have now been executed upon In parallel: Re-engineering and re-designing of the RVM machines to fit low cost manufacturing targets the new product portfolio The new product family launching in the coming next 12 months is designed to benefit from the manufacturing improvement measures 0%

10 TOMRA Sorting Solutions 10

11 HIGHLIGHTS SORTING SOLUTIONS Revenues As a consequence of the BEST acquisition; Revenues up 73% compared to second quarter Organic, currency adjusted revenues was down 4% Gross margin Gross margin decreased from 54% in second quarter 2012 to 43% in second quarter 2013, due to the BEST acquisition (consolidated in Q3 2012) and unfavorable product mix EBITA EBITA of 51 MNOK (50 MNOK in second quarter 2012) Order backlog Business stream food Business stream recycling Order backlog of 501 MNOK compared to NOK 560 MNOK at the end of first quarter 2013 Mixed momentum with significant variations between geographies as well as product lines Closure of production facilities in Eindhoven, Netherlands - moving production to Pezinok, Slovakia Still negatively influenced by low commodity prices 11

12 SORTING SOLUTIONS FINANCIALS 2nd Quarter 1st Half Amounts in NOK million Adj* Adj* Revenues Nordic Central Europe & UK Rest of Europe US East/Canada Rest of the world Gross contribution in % % % % % % % Operating expenses EBITA in % 11% 18% 18% 9% 17% 16% 12

13 NOK million TOMRA SORTING: ORDER BACKLOG DEVELOPMENT Q04 2Q04 3Q04 4Q04 1Q05 2Q05 3Q05 4Q05 1Q06 2Q06 3Q06 4Q06 1Q07 2Q07 3Q07 4Q07 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 13

14 THE CURRENT MACRO ENVIRONMENT IS EFFECTING THE PORTFOLIO MIX TOMRA Sorting Portfolio mix ~5 % ~20 % ~75 % Comments Over the last year we have seen a more challenging environment for our recycling segment The decline in recycling revenues have been somewhat compensated by the increase in Food sales Food accounts for around 15% more of the total group sales today compared to same period last year - However, Food has lower gross margins compared to recycling Food Recycling Mining 14

15 ESTABLISHING A COMMON SORTING PLATFORM Past Five companies merged, hence different five platforms Roll-out of new products to be based on common sorting platform Working on streamlining features like Common Processing, Common GUI, Self Diagnosis, Statistics, Interfacing, Common Hardware Future Faster time to market Minimize risk, redundancy and complexity Decrease development costs Decrease production costs Intellectual property right protection Development team coherence and optimizing development resources Increased investment security for our clients Tapping into the synergy potential through streamlining our sorting platform 15

16 Outlook and shareholder structure 16

17 OUTLOOK Collection Solutions: No new markets are expected to generate significant revenues in the coming quarters and activity is consequently assumed to be stable and in line with previous quarters As usual the second half of the year is expected to be stronger than the first half, for both revenues and profit Sorting Solutions: Momentum is mixed, both geographically as well as between product lines and business streams In food we experience significant regional differences, a trend that s expected to continue thru out third quarter Order intake in food is expected to be somewhat lower in 3Q13 than in 2012 due to a single 18.5MUSD order from a French fries processing plant in North America signed in 2012 Despite low commodity prices, we expect a somewhat improved order intake in recycling during 3Q13 Gross margins in Sorting Solutions are expected to improve from the 2Q13 level, but due to product mixes still be below 2Q12 level Currency: Reporting in NOK and with some NOK cost base, TOMRA will in general benefit from a weak NOK, measured particularly against EUR and USD. TOMRA will consequently benefit from a strong USD and EUR, if current exchange rate levels are maintained 17

18 2013 CAPITAL MARKETS DAY BRUSSELS - NOV 6 18

19 TOMRA SHAREHOLDER STRUCTURE Top 10 shareholders as of 30 th of June 2013 Shareholders by country 1 Investment AB Latour % 2 Folketrygdfondet % 3 Jupiter European Fund % 4 Skandinaviska Enskilda Banken client account % (NOM) 5 Nordea Nordic Small % (NOM) 6 Skandinaviska Enskilda Banken Finnish resident % 7 JP Morgan Chase Nordea Treaty Account % (NOM) 8 The Northern Trust C Treaty Account % (NOM) 9 The Bank of New York BNY Mellon % (NOM) 10 State Street Bank Client Omnibus % (NOM) Total shares held abroad: 76.4% Sum Top % Other shareholders % TOTAL (6,186 shareholders) % Source: VPS 19

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