Second Quarter

Transcription

1 Second Quarter

2 Financial highlights NOK million 2Q 05 2Q 04 YTD 05 YTD 04 Revenue ,286 1,184 RVM Technology Collection & Materials Handling Recycling Technology Other nondeposit activities Operating profit excl. restructuring charges Operating profit incl. restructuring charges (95) 42 (85) 84 Cash flow from operations

3 Restructuring charges NOK million Charges Full year cost savings Q 05 Expected 3Q/4Q 05 COGS OPEX Total restructuring accruals 21 RVM Technology 12 Collection & Materials Handling Recycling Technology 3 ~30 ~25 ~55 Other nondeposit activities 6 Group functions Total writedowns 114 Goodwill 90 Parts inventory 12 IT systems/other 12 2

4 Segment: RVM Technology 3

5 RVM Technology Financials NOK million 2Q 05 2Q 04 YTD 05 YTD 04 Revenue Nordic Central Europe & UK Rest of Europe 1 2 US East/Canada Gross contribution (in %) 118* (43%) 151 (50%) 241* (46%) 310 (50%) Operating expenses 137** ** 208 Operating profit (in %) (20) 43 (14%) 11 (2%) 102 (17%) * Including writedown on inventory of 12 MNOK in 2Q 05 ** Including total restructuring charges of 34 MNOK in 2Q 05 4

6 RVM Technology Highlights Europe Revenue decrease of 12% to 186 MNOK in 2Q 05 mainly due to lower Nordic activity; yeartodate revenue down 20% Expanded deposit in Holland from 1 January 2006 expected to impact 2H05 positively orders for more than 100 machines confirmed North America Revenue increase of 12% to 14.5 MUSD in 2Q 05; increase of 3% in NOK to 92 MNOK YTD revenue in USD up 6%, down 3% in NOK Increased number of machine installments in 2Q 05 versus beginning of year due to accelerated installments of machines according to previously announced contract with New Yorkbased retailer 5

7 German process update DPG Deutsche Pfandsystem GmbH has been formed in order to establish and administer a national deposit system for nonrefillable beverage containers in Germany On 8 July, a precontract between DPG and Bundesdruckerei GmbH was signed for the delivery of a security system for oneway containers TOMRA is Bundesdruckerei s partner in this project A field test will be conducted 50 million containers will be marked with Bundesdruckerei s security marking (printed directly on cans, on labels for PET and glass) 20 recognition units manufactured by TOMRA will be used to read the containers Security system specifications will be open and made available to system suppliers 6

8 RVM Technology Perspectives Increased operational focus through reorganization/ market segmentation in Europe Nordic installed base an opportunity ~19,000 machines installed (value added services potential) ~6,000 old machines (replacement potential) Product streamlining and harmonization of RVM portfolio Reduced complexity paves the way for more industrialized production Additional positive impact on purchasing and service costs 7

9 Segment: Collection & Materials Handling 8

10 Collection & Materials Handling Financials NOK million 2Q 05 2Q 04 YTD 05 YTD 04 Revenue US East/Canada US West Gross contribution (in %) 54 (25%) 48 (23%) 88 (22%) 84 (21%) Operating expenses Operating profit (in %) 20 (9%) 15 (7%) 28 (7%) 20 (5%) 9

11 Collection & Materials Handling Highlights Revenue in Collection (US West/California) up by 22% in 2Q 2005 to 14.4 MUSD ; up 14% measured in NOK to 93 MNOK YTD revenue in USD up 21%, up 12% in NOK Revenue increase of 6% to 18.8 MUSD in 2Q 2005 in Materials Handling operations (US East & Canada); down 4% in NOK to 120 MNOK YTD revenue in USD up 4%, down 6% in NOK Improved segment profitability due to improved efficiency, higher aluminum prices and higher volumes California business model needs to be strengthened Increased retailer participation Reduced cost exposures 10

12 Segment: Recycling Technology 11

13 Recycling Technology Financials NOK million 2Q 05 2Q 04 YTD 05 YTD 04 Revenue Nordic Central Europe & UK Rest of Europe US/Canada Rest of World Gross contribution (in %) 48 (48%) 76 (46%) Operating expenses 36* 73* Operating profit (in %) 12 (12%) 3 (2%) * Including total restructuring charges of 3 MNOK in 2Q 05 12

14 Recycling Technology Highlights Considerably improved performance in both TiTech and Orwak Group in 2Q 2005 vs. a very weak 1Q 2005 Operating expense reduction program in AB Orwak initiated Order backlog supports strong development in 2H05 82 MNOK in combined order backlog end of 2Q 2005 vs. 70 MNOK end of 2Q 2004 Orders in Titech and Orwak Group are very project sensitive, which in turn can have an impact on timing and give quarterly variations Historically, the order backlog is built up during 1H and then reduced in 2H as projects are delivered and sales are taken to P&L 13

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

16 Segment: Other nondeposit activities TOMRA Wharehouse TOMRA Recycling Plant Pindamonhangaba Collection Rexam Can Factory Novelis 15

17 Other nondeposit activities Financials NOK million 2Q 05 2Q 04 YTD 05 YTD 04 Revenue Gross contribution (in %) 16 (17%) 14 (17%) 30 (16%) 24 (14%) Operating expenses 119* * 54 Operating profit (103)* (12) (114)* (30) * Including total restructuring charges of 86 MNOK in 2Q 05 16

18 Other nondeposit activities Highlights Brazil Stable operations with operating profit of 7 MNOK in 2Q 05 and 12 MNOK YTD before restructuring charges TOMRA has decided that its Brazilian operations are outside the strategic scope; divestment process initiated 80 MNOK writedown in 2Q05 Japan Technology and concept well received by all stakeholders Decisions by Tokyo municipalities this fall key to further development Sumitomo partnership key in future business model UK 3 centers installed end of 2Q 2005; 3 remaining centers to be installed in August Container collection volumes at the centers equal approximately 70,000 containers per month Incentives to consumers to be implemented in August to generate higher volumes 17

19 One company One agenda MISSION VISION SOLUTIONS MARKETS Technology Helping the World Recycle! The leading global provider of advanced recycling solutions for handling of used materials Recognition Sorting Volume reduction Services Field support All markets with developed or emerging recycling value chains Logistics Processing 18

20 Back to sustainable profitable growth Profit growth superior to revenue growth Profit contribution versus market share: TOMRA to be the preferred supplier Increased operational focus continuous improvement Achieve two digit operating profit margin Sustainable growth without Germany Organic revenue growth key success factor Increased implementation of value added services Application of TOMRA s core technology in nondeposit markets Sustainable profitable growth will be visible in

21 Short term action plan Establish new, leaner cost base for 2006 Ensure 80 MNOK in lower cost base in 2006 Harmonize RVM portfolio and assess alternative sourcing methods Strengthen strategic scope Divest Brazilian operations Strengthen California business model Bring business development projects to commercialization phase Preanalysis of the TRC business model performance in fall 2005 Define joint business model with Sumitomo and execute on potential in Japan 20

22 It is TOMRA s ability to build solutions based on technology from TOMRA, TiTech and Orwak combined with value added services in deposit as well as nondeposit markets that will decide our level of success 21

23 22

24 Addendum slides

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

26 Shares & shareholders* Country Shares Ownership Number of shareholders 1. Norway % Great Britain % Denmark % USA % Switzerland % Luxembourg % Sweden % Belgium % Finland % Germany % 99 TOTAL 98.1% *Registered 30 June