FY 20 0
Checklist 20 To-do list 20 Status Q404 Q1 Q2 Q3 Integrate TiTech and Orwak Group into TOMRA Successfully complete pilots in the UK and Japan Execute on German opportunity Revitalize and achieve profitable growth Improve TiTech/Orwak performance Secure permanent installations in Tokyo Conclude partnership agreement with Sumitomo New organizational structure to increase focus/create momentum Ensure 80 MNOK in cost savings, restructuring charges of ~50 MNOK Write-down of assets estimated to 114 Divest Brazilian operations Finalize product portfolio harmonization Strengthen California business model Achieve 50-70% market share in Germany Decide on future of UK project 1H 2006 2006/2007 1Q 2006 1
Back to sustainable profitable growth... Operating revenues 12 month rolling average NOK million Gross Margin 12 month rolling average Percent 2,700 38.0% 2,650 2,600 37.5% 37.0% 36.5% 2,550 36.0% 2,500 35.5% 2,450 2,400 Jan- Feb- Mar- Apr- May- Jun- Jul- Aug- Sep- Oct- Nov- Dec- 35.0% 34.5% 34.0% Jan- Feb- Mar- Apr- May- Jun- Jul- Aug- Sep- Oct- Nov- Dec- Operating expenses 12 month rolling average NOK million 780 760 740 720 700 680 Operating profit 12 month rolling average NOK million 250 200 150 100 50 660 Jan- Feb- Mar- Apr- May- Jun- Jul- Aug- Sep- Oct- Nov- Dec- 0 Jan- Feb- Mar- Apr- May- Jun- Jul- Aug- Sep- Oct- Nov- Dec- NOTE: One-time effects of -159 MNOK not included in the charts 2
Financial highlights (IFRS, continued and discontinued operations) NOK million 4Q 4Q 04 FY 20 FY 2004 Revenues 675 663 2662 2512 RVM Technology 356 328 1183 1250 Collection & Materials Handling 201 189 848 821 Recycling Technology 117 44 379 68 Other non-deposit activities 1 102 252 373 Operating profit excluding restructuring charges Operating profit including restructuring charges 93 70 226 236 79 58 67 217 Cash flow (from cont. ops.) Total assets (from cont. ops.) EPS (from cont. ops.) in NOK 131 0.31 75 0.22 243 2,994 0. 408 3,257 1.00 3
SEGMENT: RVM Technology 4
RVM Technology Financials NOK million 4Q 4Q 04 FY 20 FY 2004 Revenues 356 328 1183 1250 Nordic 97 104 377 439 Central Europe & UK 157 128 433 438 Rest of Europe - 4-9 US East/Canada 102 92 373 364 Gross contribution (in %) 159 (45%) 166 (51%) 541 c) (46%) 635 (51%) Operating expenses 93 a) 107 b) 424 d) 416 e) Operating profit (in %) 66 (19%) 59 (18%) 117 (10%) 219 (18%) a) Including restructuring charges of 6 MNOK b) Including restructuring charges of 12 MNOK c) Including inventory write-downs of 12 MNOK in 2Q d) Including total restructuring charges of 46 MNOK e) Including total restructuring charges of 19 MNOK 5
RVM Technology Highlights Europe North America Revenues of 810 MNOK, 9% decline versus last year; adjusted for currency effects revenues decreased by 5% Market share maintained Declining sales in Sweden, Finland and refillable markets in Central Europe Strong performance in second half Strong year in Holland driven by upgrades of old machines due to introduction of new deposit legislation Orders for ~4,000 RVMs received from Germany during 20, 4,000 additional RVMs ordered in January 2006 minimal impact on 4Q figures Revenues of 373 MNOK, 2% increase versus 2004; measured in USD revenues increased 7% to 57.9 MUSD Strong HCp sales in core Northeast markets primary driver for improvement Contract with largest lease customer renewed 1,270 RVMs placed during 20 70 MNOK replacement contract in Michigan signed in January 2006 6
RVM Technology Order situation in Germany Number of machines Contract value (ex. service) NOK billion ESTIMATES 30,000-40,000 Our expectations remain unchanged 4.5-7.0 ~12,000? ~4,000? ~8,000 Others TOMRA ~1.7? ~0.5? ~1.2 Others TOMRA Total market potential Ordered so far Total market potential Ordered so far TOMRA is on the right track towards delivering on the 50% - 70% market share ambition in Germany 7
RVM Technology Timing of German orders to P&L Estimated number of machines taken to P&L in Germany ROUGH ESTIMATES 4Q 1Q06 ~ 80 ~ 1,000* Exact timing of installations and upgrades still partly a moving target 2Q06 3Q06 ~ 2,500* ~ 2,500 Majority of current order backlog expected to be taken to P&L during 2Q and 3Q this year 4Q06 TOTAL (so far) ~ 2,000 ~ 8,000 Available production capacity in second half of 2006 * Includes several upgrades of refillable RVMs 8
RVM Technology UNO and T-820 status Product targeting small retail stores, gas stations and convenience stores (potentially also schools, large corporate cantinas etc.) Low cost machine produced in Poland and sold for ~4,000-5,000 EURO plus installation fee Target markets are the Nordic countries, Germany and Estonia Orders for ~260 UNO machines received in 20 and orders for ~200 additional machines received so far 2006 Ongoing tests with several customers (25+) including gas station chains and retailers with several thousand outlets Product targeting high volume retail stores High-end machine with new recognition technology and new user interface for easy, accurate and fast operations Important machine for accelerating replacement of old equipment Commercial deliveries started early 2006, orders received in Norway and Austria 9
SEGMENT: Collection and Materials Handling
Collection & Materials Handling Financials NOK million 4Q 4Q 04 FY 20 FY 2004 Revenues 201 189 848 821 US East/Canada 1 107 469 484 US West 96 82 379 337 Gross contribution (in %) 43 (21%) 41 (22%) 196 (23%) 184 (22%) Operating expenses 38* 37 134* 134 Operating profit (in %) 5 (2%) 4 (2%) 65 (8%) 50 (6%) * Including 6 MNOK in restructuring charges 11
Collection & Materials Handling Highlights US East/ Canada Revenues of 469 MNOK, down 3% versus 2004; measured in USD revenues increased 1% to 72.8 MUSD Record profitability due to further streamlining of transportation and processing activities Consolidation of processing plants in 20 will yield further cost savings in 2006 US West/ California) Revenues of 379 MNOK, up 12% versus 2004; measured in USD revenues increased 18% to 58.9 MUSD due to strong volume growth and attractive commodity pricing Total container volumes grew by 15% over the prior year and the total site count grew by 10% to 433 Work related claims in California reduced by 24% over prior year will impact insurance rates positively in the long term 20 was a record year in terms of profitability, and TOMRA anticipates positive trend to continue in 2006 due to commodity pricing and volume/new site growth 12
Collection in California Commodity prices Aluminum price development (London Metal Exchange Cash prices) USD/metric tonne 3000 2800 2600 2400 2200 2000 1800 1600 1400 In California, where TOMRA takes ownership of collected materials, the aluminum price increase is positively impacting revenues and profits As a general rule of thumb, a 100 USD/ton increase in the LME increases TOMRA s operating profit by approximately 1 MUSD Jan- Feb- Mar- Apr- May- Jun- Jul- Aug- Sep- Oct- Nov- Dec- Jan-06 Feb-06 13
SEGMENT: Recycling Technology 14
Recycling Technology Financials NOK million 4Q 4Q 04 FY 20 FY 2004 Revenues 117 44 379 68 Nordic 27-83 - Central Europe & UK 74 31 203 41 Rest of Europe 1 8 30 18 US/Canada 10 4 23 7 Rest of World 5 1 40 2 Gross contribution (in %) 53 (45%) 27 (61%) 174 (46%) 43 (63%) Operating expenses 34* 12 137** 23 Operating profit (in %) 19 (16%) 15 (34%) 37 (10%) 20 (29%) * Including restructuring charges of 2 MNOK ** Including total restructuring charges of 5 MNOK 15
Recycling Technology Highlights TiTech 3rd consequtive year of record revenues and profits driven by strong sales in Germany and the US Market share of ~70% maintained New markets entered in 20 include Korea, Australia and Norway Cooperation with TOMRA in materials handling in North America Several technology innovations in 20 ensured TiTech s position as the industry leader in optical sorting Orwak Group Stable revenue development versus previous year; Presona continued to perform well, AB Orwak faced certain challenges and Morinders had weak sales 2Q-4Q performance according to expectations after weak 1Q Market share of 20-25% maintained 20 cost reduction efforts have created a platform from which Orwak Group can grow profitably Potential cooperation with TOMRA regarding depots for handling of uncompacted deposit containers in Germany in 2006 16
Recycling Technology - Order book Order book value NOK million 90 80 70 60 50 40 30 20 10 0 4Q02 1Q03 2Q03 3Q03 4Q03 1Q04 2Q04 3Q04 4Q04 1Q 2Q 3Q 4Q Timing Although first quarter is generally weak, 1Q 2006 should be significantly better than 1Q 20 based on value of order book entering 2006 17
SEGMENT: Other non-deposit activities 18
Other non-deposit activities - Financials NOK million 4Q 4Q 04 FY 20 FY 2004 Revenues 1 102 252 373 Gross contribution (in %) - 10 (10%) 39 (15%) 49 (13%) Operating expenses 9 26 171* 1 Operating profit (8) (16) (132) (56) * Including total restructuring charges of 86 MNOK in 2Q 19
Other non-deposit activities Highlights Brazil Brazilian operations defined as non-core during second quarter due to limited technology content TOMRA s two subsidiaries sold to Aleris in August 20 for 122 MNOK in cash UK 5 TRCs installed during 20, bringing the total number of centers to 6 Feedback from consumers and TESCO is positive, and the business model is becoming more attractive as the gap between required and actual collection volumes is narrowed TOMRA is discussing an expansion of the TRC program with TESCO, conclusion expected during 1Q 2006 Japan Test program in Tokyo/Yokohama successfully completed early 20 with Sumitomo as TOMRA s partner First 10 permanent collection centers sold to wards in Tokyo TOMRA is currently in discussions with several wards in Tokyo for deliveries of additional centers in 2006 The discussions with Sumitomo regarding future structure of partnership and business model will be concluded during first half 2006 20
UK collection volumes Approaching break-even Number of units collected per center per month Thousand units ROUGH ESTIMATES Start-up period (Nov 04 Mar ) Mid-term period (Apr -Oct ) Current (Nov -Feb 06) 250 180 200 120 120 30 70 80 90 Assumed break-even volume Actual volume per center (average) Assumed break-even volume Actual volume per center (average) Assumed break-even volume Actual volume per center (average) 21
Proposed dividend for 20 At the Annual General Assembly in May, The Board will Recommend a 20 dividend of NOK 0.35 per share Ask for a cancellation of the 4,498,000 treasury shares acquired in connection with the share buy-back program in 20 Ask for a new authorization to buy back 10 million additional shares (on top of the 10 million authorized in 20) with the purpose of cancelling them. In 2006, TOMRA will replace its option program with a cash-based 3-5 years bonus system linked to extraordinary financial performance in the Tomra Group 22
TOMRA focus areas in 2006 RVM Technology Collection & Materials Handling Maximize value of German opportunity Accelerate Nordic and US replacement sales Roll out UNO & T-820 Reduce COGS through continued production/ sourcing improvements Capitalize on Holland opportunity Consolidate sorting plant operations Outsource certain laborintensive activities Maximize commodity pricing opportunities Recycling Technology Development initiatives New segments and markets for TiTech Focused sales and marketing efforts in Orwak Group Selected M&A Sign agreement with Sumitomo during 1H 2006 Obtain TESCO decision on expansion of TRC program during 1Q 2006 Invest in selected new initiatives - several new projects under evaluation 23
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Addendum slides
Major shareholders* Shares Ownership 1. Folketrygdfondet 18 103 100 10,1% 2. Orkla ASA 7 228 800 4,1% 3. State Street Bank & Client Omnibus D 6 767 984 3,8% 4. JP Morgan Chase Bank Clients Treaty Account 5 316 448 3,0% 5. Tomra Systems ASA 4 498 000 2,5% 6. Danske Bank A/S 3887 Operations Sec. 4 492 028 2,5% 7. Vital Forsikring ASA DnB NOR Kapitalforvaltning 3 826 289 2,1% 8. Clearstream Banking CID Dept, Frankfurt 3 606 259 2,0% 9. DnB NOR Norge (IV) VPF 2 782 708 1,6% 10. Deutsche Bank AG LON 2 496 390 1,4% SUB-TOTAL 59 118 006 33,1% Other shareholders 119 368 553 66,9% TOTAL (15,003 shareholders) 178,486,559 100.0% Total foreign ownership 61 840 476 34,6% *Registered 31 December 20 26
Shares & shareholders* Country Shares Ownership Number of shareholders 1. Norway 116 646 083 65.4% 14 162 2. Great Britain 21 552 513 12.1% 82 3. USA 12 138 624 6.8% 181 4. Denmark 7 350 946 4.1% 66 5. Luxembourg 5 965 047 3.3% 39 6. Switzerland 4 569 107 2.6% 19 7. Sweden 2 552 803 1.4% 117 8. Ireland 1 602 548 0.9% 18 9. Finland 1 077 920 0.6% 24 10. Germany 1 045 794 0.6% 97 TOTAL 97.7% 14 8 *Registered 31 December 20 27