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TOMRA INVESTORPRESENTATION
TOMRA SYSTEMS ASA
19th October 2012
2
TOMRA was founded on an innovation in 1972 that began with design, manufacturing and sale of reverse vending machines (RVMs) for automated collection of used beverage containers
3
Today, TOMRA creates sensor-based solutions for optimal resource productivity – helping our customers increase their financial results and reduce their environmental impact
4
TOMRA has installations in over 80 markets worldwide and had total revenue of ~3.7 billion* NOK in 2011
TOMRA has ~2,200 employees and is publicly listed on the Oslo Stock Exchange
* Excluding BEST
5
The TOMRA Group continues to innovate and provide cutting-edge solutions for optimal resource productivity within two main business areas:
Collection Solutions (reverse vending, material recovery and compaction)
Sorting Solutions (recycling, mining and food)
“A TINY BLUE AND GREEN OASIS OF LIFE IN A COLD UNIVERSE.” – DAVID SUZUKI
THE WORLD POPULATION AND STANDARD OF LIVING IS INCREASING DRAMATICALLY
WORLD RESOURCES ARE UNDER UNPRECEDENTED PRESSURE
RESOURCE PRODUCTIVITY MUST INCREASE TO ENSURE SUSTAINABLE DEVELOPMENT
10
THE DAWN OF THE RESOURCE REVOLUTION
SOURCE: McKinsey
11
The resource revolution is about transforming how we obtain, use, and reuse resources for sustainable economic growth and improved quality of life for all.
12
At TOMRA we have always thought this way. From inventing the world’s first reverse vending machine in 1972 to providing the most innovative sensor-based sorting systems today.
TOMRA IS TRANSFORMING HOW WE OBTAIN OUR RESOURCES…
Our sorters can reduce water consumption with 3-4 cubic meters per ton ore
Our sorters can reduce energy consumption in mining by 15%
Our sorters can increase recovery of valuable minerals by up to 25%
14
TOMRA IS TRANSFORMING HOW WE USE OUR RESOURCES…
Our optical sorters can analyze 25 tons of product per hour, maximizing yield and recovery while reducing waste, energy, and chemical use
We recover 5% - 10% of the produce, through higher yields and better utilization, reducing pressure on the food chain
That’s approximately 25,000 trucks per year in potatoes alone
16
TOMRA IS TRANSFORMING HOW WE REUSE OUR RESOURCES…
30 billion used beverage containers are every year captured by our reverse vending machines
Our optical waste sorter can analyze and sort a football stadium covered with waste in less than 15 minutes
715,000 tons of metal is recovered every year by our metal recycling machines
Our vertical balers enable daily savings of ~20,000 transport movements, 160,000 liters of fuel and up to 50% of customers’ waste handling costs
18
TOMRA CREATES SENSOR-BASED SOLUTIONS FOR OPTIMAL RESOURCE PRODUCTIVITY
Today we see more opportunities for optimal resource productivity than ever before
20
WASTE INTO VALUE…
YIELD INTO USAGE…
SOURCE INTO RESOURCE…
PURPOSE INTO PROFITS…
PROFITS INTO PROGRESS…
TOMRA invests 8% of its yearly revenue in R&D, to progress and create solutions to move past the false choice between the earth and the economy
26
27
TOMRA: Leading the resource revolution
TOMRA IN SHORT
29
84%
16%
CollectionSorting
100%
Collection
THE TOMRA TRANSFORMATION JOURNEY
2000 2004 20122008
A house of brands
A branded house
60%
40%
CollectionSorting
FROM: TO:
95%
5%
CollectionSorting
30
60%
40%
Collection Sorting
CREATING VALUE THROUGH TWO STRONG BUSINESS AREAS
Source: Rounded proforma figures after acquisition
• Stable• High margins• Low cyclicality
• High growth• High margins• Medium cyclicality
High technology - sustainable business
Two strong areas for value creationSorting Solutions A larger part of TOMRA
31
TOMRA’S TWO BUSINESS AREAS*
Employees
Share of ‘11 sales
Key activities
TOMRA Collection Solutions
960
Sale and service of solutions for automated collection of used beverage containers with deposit in retail stores
~46%
Material Recovery
175
High speed identifying, sorting and processing of information: material, shape, size, color, defect, damage and location of objects
~11%
Customers Grocery retailers Material recovery facilities, scrap dealers, metal shredder operators
TOMRA Sorting Solutions
75
On of the world’s largest manufacturer of vertical balers
~4%
50
The leading provider of sensor-based sorting systems for the mining industry
~3%
Retail, manufacturing industry, restaurant, catering & hotel, warehouse & distribution Mining companies
Pick-up, transportation and processing of used beverage containers and operation of a network of collection sites in USA
~13%
Optical sorting and processing solutions for food
Odenberg: ~7% (acquired in 2011) / BEST: ~16% (acquired in 2012)
Grocery retailers and beverage manufacturers Food growers, packers and processors
400 Odenberg: 175 / BEST: 310
Compaction
Reverse Vending Machines
Food
Mining
Recycling
~50-60%Market share ~65%
~40-60%~15-20% in active markets
~25%~60% in USA (markets served)
Employees
Share of ‘11 sales
Key activities
Customers
Market share
Employees
Share of ‘11 sales
Key activities
Customers
Market share
* Proforma 2011 as if BEST should have been part of TOMRA
32
TOMRA INSTALLED BASE
TOMRA Collection Solutions TOMRA Sorting Solutions
INSTALLED UNITSNordicGermanyOther EuropeJapanNorth AmericaSouth America
TOTAL
~15,000~23,000~12,000
~500~15,000
~1000
~67,000
INSTALLED UNITSNordicUKOther EuropeAsia/OceaniaNorth AmericaMiddle East/Africa
TOTAL
~16,000~17,000~26,000
~4,000~4,000
~500
~67,500
INSTALLED UNITSEuropeUS / CanadaAustraliaSouth AfricaOther
TOTAL
7035204520
190
INSTALLED UNITSEuropeAsiaUS / CanadaOther
TOTAL
1850220500380
2,950
INSTALLED UNITSEuropeUS/CanadaAsiaOther
TOTAL
~1,150~1,350
~120~100
~2,720
INSTALLED UNITSEuropeUS/CanadaAsia/OceaniaSouth AmericaMiddle East/Africa
TOTAL
~1,950~1,050
~330~120~350
~3,800
33
USING THE POWER OF BUSINESS TO DO GOOD
EMPLOYEES
• 81% of our employees say TOMRA is a “Great Place to Work”
ENVIRONMENT
• We contribute to avoided emissions of about ~10mill tons CO2 annually
ETHICAL BUSINESS BEHAVIOUR
• Member of UN Global Compact since end 2009
• Implementing ethical policies worldwide
INCREASING CUSTOMER VALUES
• Productivity
• Revenues
• Quality
TOMRA IN DEPTH
35
TOMRA Collection Solutions
TOMRA REVERSE VENDING – TRANSFORMING BEHAVIOR
37
THE USED BEVERAGE CONTAINER RECYCLING VALUE CHAIN
RVM TECHNOLOGY
SERVICE/SUPPORT
DATA ADMIN/CLEARING
MATERIALPICK-UP
MATERIALBROKERAGE
MATERIALPROCESSING
MATERIALRECYCLING
Generic used beverage container (UBC) recycling value chain
RVM-based UBC recycling value chain
38
RVM PRODUCT PORTFOLIO
39
RVM VALUE PROPOSITION
• RVMs reduce need for manual labour and will typically have a payback period of 12-18 months for medium sized stores
• Improved logistics and handling
• RVMs keep track of all deposit transactions – in Germany alone the total transaction volume has an annual value in excess of ~4 bn EUR
• RVMs have several fraud detection features to prevent paying out deposit on non-eligible containers
• RVMs make it convenient and easy for consumers to return their empty containers
• RVMs are clean and efficient and ensure correct redemption of containers
Reduced costs
Clearing of deposits
High consumer
convenience
40
MARKET STRUCTURES AND BUSINESS MODELS
• Non-refillables account for 75% of all containers sold and are popular due to simplified distribution/manufacturing and consumer marketing aspects
• Some markets have MANDATORY deposit systems to ensure proper collection of containers
• RVMs are used to make these systems more effective and efficient
• In markets without deposit there might still be a need to organize collection of empty containers, either to support overall recycling targets/ambitions or to demonstrate corporate social responsibility
• Although the rationale for using RVMs varies from market to market, RVMs can in general be used to facilitate the collection process
Other incentive-based markets(non-deposit)
Mandatory (non-refillable)deposit markets
• Refillable containers account for ~25% of all containers sold and have traditionally been used by local and regional breweries outside NA
• Refillable containers are typically part of a VOLUNTARY deposit system to incentivize consumers to return containers for reuse
• RVMs are used to make this system more effective and efficient
Voluntary (refillable) deposit markets
1
2
3
41
COMPETITIVE LANDSCAPE
Annual revenue from RVM
Source: TOMRA estimates and analysis
1-5 11-20
Num
ber o
f ins
talle
d RV
Ms
Number of RVM markets
<2,500
6-10
2,500-5,000
10,000-20,000
>65,000
>3021-30
…
42
TOMRA COLLECTION: OUR STRATEGY
• Cost leadership• Increased differentiation
• Accelerated machine replacement• Incremental revenue streams on installed base
• New deposit markets• Viable non-deposit business models
Protect and defend existing business
1
Spur growth in existing markets
2
Succeed in new markets3
43
COST LEADERSHIP AMBITION
Overall ambition to reduce COGS on new RVMs by 40% from 2010 to 2015
20% by aggressive sourcing and production strategy• 70% of sourcing from low-cost countries• Flexible and quicker assembly close to main markets
15% by technology and design for low cost manufacturing• Modularity – building block principle• Smarter design , e.g. combining processors and sensors
5% by other means• New production techniques• Automation• Volume
44
RECENT TOMRA INNOVATIONS
MultiPac
Taking uptime to new levels
Flake
Boosting operational uptime and logistical efficiency
T-820 Touch
Setting new standards in usability for consumer, owner and operator
SoftDrop MK3
DMR
Enabling simpler store operations
Doublefeed
Customer-specific solution enabling space-efficient operations
Minimizing border fraud issues in Michigan
TOMRAPlus
A new management tool for proactive admin of your reverse vending systems
PRESENT AND PROSPECTIVE DEPOSIT SCHEMES
SaskatchewanManitobaAlbertaOntarioNorthwest TerritoriesNunavutYukonPrince Edward IslandNova ScotiaNew BrunswickNewfoundlandQuebec
CaliforniaOregonConneticut New YorkMassachusettesVermontMaineHawaiiIowaMichigan
FloridaGeorgiaNorth CarolinaVirginiaKentuckyMissouri
USA
Canada
NorwayIcelandFinlandSwedenCroatiaGermanyDenmarkNetherlandsIsraelEstonia
Czech RepublicMontenegroSerbiaLithuaniaLatvia
Northern Territory South Australia
Australia
Europe
States / provinces with a running deposit system
States / provinces in Initial discussions
States / provinces in advanced discussion
General Australia
ScotlandSpain
45
46
TOMRA Sorting Solutions
47
1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
Ultrasort acquired
STRONG REVENUE GROWTH SINCE INCEPTION IN 1996
• Total revenue growth (organic plus inorganic) of ~35% per year from 2004-11
— Organic growth for the same period was ~22%
• Technology base and segment/application knowledge expanded both through acquisitions and in-house ventures
• Growth driven by:
− Price increases in food, commodities & landfill costs
− Favorable changes in regulatory framework (DSD, WEEE, ELV, etc)
− Strong sales and service network
− Technology leadership
− Higher quality and food safety demands
TITECH Visionsort AS established
CommoDas acquired
QVision AS established
>120
Revenue development and key milestones EUR million
Real Vision Systems acquired
TITECH acquired by TOMRA
14.50.5
Odenberg acquired
Acquired 31st of May 2012
48
OUR CORE TECHNOLOGY: THE EYES AND BRAINS OF SORTING AND PROCESSING
• High-tech sensors are utilized to identify objects on a conveyor belt
• High speed processing of information: material, shape, size, color, defect, damage and location of objects
• Precise sorting by air jets or mechanical fingers
49
A COMMON SENSOR BASED TECHNOLOGY PORTFOLIO
Sensor/Technology
Material Property Segment
RM (Radiometric) Natural Gamma Radiation Mining
XRT (X-ray transmission) Low Energy X-ray
Atomic Density Recycling, Mining, Food
XRF X ray fluorescence (Elemental Spectroscopy)
Recycling, Mining
COLOR (CCD Color Camera) Reflection, Absorption, Transmission
Recycling, Mining, Food
Laser attenuation andPM (Photometric)
Monochromatic Reflection /Absorption of Laser LightScattering analysis of Laser Light
Mining, Food
NIR / MIR (Near/Medium Infrared Spectrometry)
Reflection, Absorption (Molecular Spectroscopy)
Recycling, Mining, Food
LIBS Laser induced breakdown spectroscopy
Recycling, Mining
EM (Electro-Magnetic sensor)
Conductivity,permeability
Recycling, Mining, Food
10-12
10-11
10-10
10-9
10-8
10-7
10-6
10-5
10-4
10-3
10-2
10-1
101
102
103
104
Ultraviolett (UV)
Visible light (VIS)
Near Infrared (NIR)
Microwaves
X-ray
Gamma-radiation
Alternating current(AC)
Radio waves
[m]
Infrarot (IR)
CUTTING-EDGE TECHNOLOGY DRIVEN BYSIGNIFICANT INVESTMENTS IN R&D
• In-house R & D department with more than 305 people
• Partnership with leading R&D institutions: SINTEF, CTR, Fraunhofer ILT; universities like RWTH and Brussels
• 8% of revenue invested in R&D
• 15 test centers worldwide
Electromagnetic Sensor (EM) Material property detected: electromagnetic properties like conductivity and permeability
SENSOR PORTFOLIO
Radiometry (RM)Material property detected: radioactivity
IR Camera (IR)Material property detected: heat conductivity and heat dissipation
X-ray Fluorescence (XRF)Material Property detected: elemental composition
Near-Infrared Spectrometry (NIR)Material property detected: specific and unique spectral properties of reflected light in the near-infrared spectrum
Visible Light Spectrometry (VIS)Material property detected: visible spectrum for transparent and opaque materials
X-ray Transmission (XRT)Material property detected: specific atomic density irrespective of size, moisture or pollution level
CCD Color Camera (COLOR)Material property detected:color properties in the color areas red, green and blue
Test center in Koblenz, Germany
LaserMaterial property detected: scattering of laser light
50
Infrared Transmission (IRT)Material property detected: light absorption
51a part of TOMRA
INCREASE
REVENUES
• Increase purity of sellable materials
• Increase recovery rate
• Increase capacity
REDUCE
COSTS
OTHER
BENEFITS
• Increase recovery ofvaluable metals, minerals, diamonds and gems from ores
• New technology give access to old dumps
• Increase yield
• Increase throughput
• Reduce labor requirements
• Lower operating and service costs
• Reduce labor requirements
• Lower operating and service costs
• Reduce waste
• Reduce energy consumption
• Reduce water consumption
• Less wear and tear
• Less rocks needs crushing
•Food safety
• Increased and consistent quality and safety
• Increased flexibility of production line
• Production reporting and analysis
• Less environmental impact
• Reduce carbon footprint
• Easier permitting
• Consistent quality of output streams
• Increase flexibility of production line
• Monitor material composition
WHY SENSOR-BASED SORTING?
52
ADOPTION OF SENSOR-BASED SORTING AT DIFFERENT MATURITY LEVELS
RECYCLING
Maturity/ industry adoption
Time
* In certain mining sub-segments, such as industrial minerals and diamonds, sensor-based sorting is a more mature technology.
FOOD
MINING*
53
MARKET SIZE AND POTENTIAL
Total annual market size for different sensor-based sorting segments
EUR million
Source: TOMRA estimates and analysis
~500-550
~850-900
2010 201550 9040
7020
60
400
650 FoodMiningMetalWaste
54
TOMRA SORTING: OUR STRATEGY
• New verticals/business streams in sensor-based sorting• Increase footprint and scale through consolidation• *Now added through latest acquisition of BEST*
• Utilize our market leader position to maximize economies of scale effect
• Effective sourcing in combination with product friendly R&D
• Continue to invest heavily in R&D• Bring new and enabling technology to the market• Further develop web of partners
Maintain technology leadership position
2
• Aggressively target promising regions and markets• Leverage market presence across entire portfolioExpand geographically1
Cost leadership3
M&A to consolidate market and enter new business
streams4
TOMRA SORTING FOOD – SECURING QUALITY, EFFICIENCY, AND PRODUCTIVITY
56
Circa 40%* of annual global sorter sales
revenue
Circa 30%* of annual global sorter sales
revenue
Circa 25%* of annual global sorter sales
revenue
SK
Seeds & Kernels
PFV
Processed Fruits & Veg
FF
Fresh Fruits
FV
Fresh Vegetables
NDF
Nuts & Dried Fruit
Other
Confectionary, etc.
AFTER ACQUIRING BEST TOMRA HAS A BROAD FOOTPRINT WITHIN THE FOOD SORTING UNIVERSE
Circa 5%* of annual global sorter sales
revenue
* TOMRA estimates
# 1 # 1
57
FOOD
SENSOR TECHNOLOGY
• Whole• Field• Seed• Table/ware• Sweet• Processed• Peeled
• Tomato• Citrus• Dried fruits• Nuts• Peach & pear
• Beet• Corn• Carrot• Green bean• Jalapenos/ Pepper• Onion• Pickles• Cucumbers
POTATO FRUIT VEGETABLE
NIRVIS
NIRVIS
NIRVIS
FOOD: APPLICATIONS AND SENSOR TECHNOLOGY
NIRVIS
• Beef• Pork• Seafood
MEAT/SEAFOOD
FOOD • Apricots• Raisins• Figs• Prunes• Craisins
• Almonds• Cashews• Hazelnuts • Macademias • Peanuts• Pecans• Pistachios• Seeds• Walnuts
• Iceberg• Mixed salad• Leaves• Spinach• Spring Mix
DRIED FRUIT NUTS FRESH CUT
• Apples• Apricots• Blackberries• Blueberries• Cherries• Cranberries• Pineapple• Raspberries• Strawberries
FRUIT VEGETABLES POTATO SEAFOOD
• Peas• Beans• Broccoli• Carrots• Corn• Garlic• Mixed vegetables
• Chips• Flakes• French fries
• Scallops• Mussels• Shrimp
SENSOR TECHNOLOGY
LASERX-RAY
LASERX-RAY
LASERCAMERA
LASERCAMERA
CAMERALASER / FLUO
LASERCAMERA
LASERCAMERAX-RAY
58
SORTING UNWASHED POTATOES: WORKING PRINCIPLE
• The Field Potato Sorter is ODENBERG’s first venture into the unwashed potato market
• The machine uses unique near infra-red technology to remove soil clods, stones and rotten potatoes, in addition to the foreign material commonly found in fields such as golf balls, plastics, wood etc
• The FPS sorter should be used after a soil remover and is designed to fit existing grading equipment or be used as a standalone unit and can operate on harvested potato crop before and after storage
• The system also provides online potato size data for logging, plus sorter operating information
59
FROM FARM TO FORK
PROVIDING SOLUTIONS THROUGHOUT THE VALUE CHAIN
60
VALUE PROPOSITION
Operational EfficiencyReduces
Costs
Assured Consumer
Food Quality & Safety
Increases Revenue
• Up to 100% reduction on manual labor alternative • Productivity Increase ~ 20%• In many cases sorting cannot be completed manually due
to product size or defect types• Yield improvement > 1.5%
• Protects customers reputations. Automated control helps protect against ‘undesirables’ or ‘harmful’ items entering the food chain. Mitigates against the ‘cost’ and damage of failure, recalls, etc
• Legislation for food quality becoming more and more demanding with full traceability
• High precision and multiple sort grades (by size & quality) maximizes raw product utilization and product sales value
• Easy to achieve customer requirements regardless of incoming product quality.
• Analyses the crop quality, size and line efficiency as it sorts. Provides real time data to customers to become more productive (effective real time control), maximizing yield and select/monitor suppliers.
61
FOOD: SORTING MARKET SIZE AND POTENTIAL*
Total annual market size
EUR million
2012 2017
500
650-750
Growth potential• Market expected to grow at an annual rate of 5-8%
overall
Drivers• More sophisticated and demanding consumers with
more disposable income and changing eating habits• Tendency to more processed, packed and frozen food
supporting maximum customer convenience and globalization of brands & products of processed food
• Food supply constraints calls for optimal resources productivity
• More focus on food safety, sorting out foreign objects• Consolidation in the retail and processing sectors
− Improving yield and quality − Reducing labor costs
• Globalization & increasing export− Verifiable quality & safety processes − Traceability Requirements
Source: TOMRA estimates and analysis* Updated after BEST acqusition
62
STRENGTHENING OF MARKET POSITIONING AFTER ACQUISITION OF BEST
1,000-3,500
10-25markets
>50markets
# of
inst
alle
d m
achi
nes
Geographic presence
0-1,000
25-50markets
>3,500
Size and presence – New positioning
Revenue from sensor-based sorting
Source: TOMRA estimates and analysis
1,000-3,500
10-25markets
>50markets
# of
inst
alle
d m
achi
nes
Geographic presence
0-1,000
25-50markets
>3,000
Size and presence – Before BEST
TOMRA SORTING RECYCLING - TRANSFORMING EFFICIENCY AND QUALITY
64
HOUSEHOLDWASTE PACKAGING C & D
AUTOMOBILESHREDDER
ELECTRONICSCRAP
MATERIAL
SENSOR TECHNOLOGY
• Hard plastics• Plastic film• Mixed paper• RDF• Metals• Organics/ Biomass
• Plastics• Plastic film• Cardboard• Mixed paper• Deinking paper• Metal
NIRVISXRT
• Inert material• Plastic film• Metals• Wood• Paper & Cardboard• Plastics
• NF metal• Stainless steel• Copper cables• Copper• Brass• Aluminum• Meatball sorting
• Printed circuit boards
• Non-ferrous metalconcentrates
• Cables• Copper• Brass• Stainless steel• Meatball sorting
NIRVISEM
NIRVISXRTEM
NIRVISXRTEMCOLORXRF
XRTEMNIRCOLORXRF
RECYCLING: APPLICATIONS AND SENSOR TECHNOLOGY
Mixed paper PE/PP flakes Cleaned wood Copper Wire Brass
65
AUTOMATED WITH TOMRA SORTING UNITS
PET
PE Natural
PE Colored
PP
ONP Double Deck Screen
Input
Manual sorting for oversize materials
ONP Cleaning
Mixed Paper cleaning
Ballistics(removing films)
Packaging
NIR for packaging waste Baler
Focus on the PET stream,
Sorting of Municipal Solid Waste, Cyprus
66
RECYCLING: VALUE PROPOSITION
Reducescosts
Increasesrevenues
Ensures consistent, stable and
fast operations
• Reduces manual labor by up to 75 %• Low operating and maintenance costs and
reduced space requirements• Avoids high turnover of personnel
• High precision • Easy to adapt to changing needs and sorting tasks
• High volume sorting• Machines enables longer hour operations• Reduced accidents and less strain on staff• Constant quality and performance• Some sorting tasks impossible/difficult for
manual sorters
67
RECYCLING: SORTING MARKET SIZE AND POTENTIAL
Total annual market size
EUR million Growth potential• Market expected to grow at an annual rate
of 10-15% overall• TITECH expects to maintain its overall
market share
Drivers• Increased demand for raw material• Higher labor costs• Higher commodity prices• Legislation (landfills, ELV, WEEE etc.) • Adoption of technology in new markets
(Asia, Latin America, Eastern Europe)• New applications such as flake sorting
90
160
Source: TOMRA estimates and analysis
2010 2015
50
90
40
70
Waste Metal
68
RECYCLING COMPETITIVE LANDSCAPE
Technological advantage
HighLowCo
st a
dvan
tage
Technological advantage
HighLow
Cost
adv
anta
ge Hig
hLo
w
Waste recycling Metal recycling
Hig
hLo
w
Source: TOMRA analysis
TOMRA SORTING MINING– FINDING MINDFUL SOLUTIONS
70
INDUSTRIALMINERALS
BASE &Fe METALS
FUEL/ENERGY
PRECIOUSMETALS METAL SLAG
COMMODITY
SENSOR TECHNOLOGY
• Calcite
• Quarts
• Feldspar
• Magnesite
• Talcum
• Dolomite
• Salt
COLORXRTNIRXRF
XRTCOLOREMNIR
XRTRM
XRTCOLORXRFNIR
XRTXRFEM
DIAMONDS& GEMS
COLORXRTXRFNIR
•Copper
• Zinc
• Nickel
• Tungsten
• Iron
• Manganese
• Chromite
• Coal
• Uranium
• Gold
• Platinum
• Diamonds
• Tanzanite
• Colored gemstones
• Stainless steel
• Copper
• Chrome
MINING: APPLICATIONS AND SENSOR TECHNOLOGY
Calcite Coal DiamondsCopper Ferro Silica SlagGold
71
THE CONCEPT OF SENSOR-BASED SORTING IN MINING
Tailings (fines)
Product
Primary Crushing
Run of Mine
Sensor Based Sorting
Beneficiation Plant
Milling
Screening
DMS
Flotation Facts (estimated)• 15% to 50% of the ROM can be rejected in an
early stage of the process (application dependent)• These low grade waste rocks don’t need to be
crushed, grinded and further treated
72
MINING: VALUE PROPOSITION
Increased access to resources
Cost savings
Environ-mental
benefits
• Lower head grade can be processed• Better utilization of existing deposits• Old dumps turn into resources
• Significant capacity increase of the traditional beneficiation plant
• Energy costs savings• Less wear and tear and chemicals costs
• Better carbon footprint• Reduction of acid mine drainage• Less pollution
73
MINING: SORTING MARKET SIZE AND POTENTIAL
Total annual market size
EUR million
Growth Potential• Market expected to grow at an annual
rate of around 20-30% overall• Commodas Ultrasort expects to
maintain its overall market share
Drivers• Increasing demand for commodities
from emerging markets• Increased pressure on costs but
high/increasing energy and water costs
Source: TOMRA estimates and analysis
2010 2015
20
60
74
MINING COMPETITIVE LANDSCAPE
Technological advantage
HighLow
Cost
adv
anta
ge
Hig
hL
ow
Source: TOMRA analysis
75
Financial performance and targets
76
KEY FINANCIALS DEVELOPMENT
2007 2008 2009 2010 20110
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
NO
Km
2007 2008 2009 2010 20110
200
400
600
800
1,000
1,200
1,400
1,600
1,800
30%
32%
34%
36%
38%
40%
42%
44%
46%
NO
Km
2007 2008 2009 2010 20110.0
0.5
1.0
1.5
2.0
2.5
3.0
NO
K pe
r sha
re
2007 2008 2009 2010 20110
100
200
300
400
500
600
700
800
10%
12%
14%
16%
18%
20%
NO
Km
Revenues Gross Contribution and margin
EBITA and margin Earnings per share
FINANCIAL HIGHLIGHTSBALANCE SHEET, CASH FLOW AND CAPITAL STRUCTURE
Ordinary cashflow from operations
• 181 MNOK in 3Q 2012 versus 299 MNOK in 3Q 2011
Cashflow from investments
• Minus 939 MNOK, of which 893 MNOK relates to the acquisition of BEST.
Solidity
• 42% equity
• NIBD/EBITDA = 1.9 (Rolling 12 months)
BEST Kwadraat NV• Fully consolidated from 2 July 2012
Amounts in NOK million30 Sept
2012
30 Sept
2011
31 Dec
2011
ASSETS 5,346 4,138 3,999
• Intangible non-current assets 2,328 1,405 1,391
• Tangible non-current assets 551 567 527
• Financial non-current assets 272 286 264
• Inventory 826 639 627
• Receivables 1,273 1,122 1,012
• Cash and cash equivalents 96 119 178
LIABILITIES AND EQUITY 5,346 4,138 3,999
• Equity 2,142 2,030 2,141
• Minority interest 78 80 76
• Interest bearing liabilities 1,641 782 741
• Non-interest bearing liabilities 1,485 1,246 1,041
77
FINANCING
78
500
500
750
5050
0
200
400
600
800
1000
1200
1400
1600
1800
2000
Inte
rest
bea
ring
debt
Eksportfinans (A) DNB (B) DNB/SEB (C)
Type 3 year term loan 5 year revolving credit facility
3 year revolving credit facility
Established July 2011 January 2011 July 2012
Expire July 2014 January 2016 July 2015
Amount NOK 500 million NOK 500 million EUR 100 million (~NOK 750 million)
Repayment Bullet Bullet Bullet
Interest Floating, 3m Floating, 1-12 m Floating, 1-9 m
Margin 52 bps above NIBOR 60 - 90 bps above NIBOR/EURIBOR
110 – 165 above EURIBOR
Pledge Negative Negative Negative
Covenants 30% Equity 30% Equity 30% Equity
Committed and uncommitted credit lines
B
A
C
Utilized 1641 MNOK
79
CURRENCY EXPOSURE
EUR* USD NOK SEK OTHER TOTAL
Revenues 50 % 30 % 5 % 10 % 5 % 100 %
Expenses 45 % 25 % 15 % 10 % 5 % 100 %
EBITA 80% 60 % - 55 % 10 % 5 % 100 %
Revenues and expenses per currency;
Revenues Expenses EBITA
EUR* 5.0% 4.5% 8.0%
USD 3.0% 2.5% 6.0%
SEK 1.0% 1.0% 1.0%
OTHER 0.5% 0.5% 0.5%
ALL 9.5% 8.5% 15.5%
10% change in NOK towards other currencies will impact;
NOTE: Rounded figures
HEDGING POLICY
• TOMRA hedges B/S items that will have P/L impact on currency fluctuations
• TOMRA can hedge up to one year of future predicted cash flows. Gains and losses on these hedges are recorded in the finance line, not influencing EBITA
* EUR includes DKK
* EUR includes DKK
80
COLLECTION SOLUTIONS –SEGMENT FINANCIALS
Gross and EBITA margin developmentPercent
Revenue developmentNOK million
2007 2008 2009 2010 20110
500
1000
1500
2000
2500
3000
Q1 Q2 Q3Q4 Full year
2007 2008 2009 2010 20110
5
10
15
20
25
30
35
40
45
50
38 3941 42 41
13 1316 16
19
GM EBITA
81
COLLECTION SOLUTIONS –FINANCIAL DASHBOARD
Dashboard
Indu
stry
gro
wth
Recu
rrin
g re
venu
e
Mar
ket s
hare
Geo
grap
hica
l di
vers
ityCy
clic
ality
65% 80% 25%
Low
20-30 markets 10 markets
Low
30 markets
Medium
RVM Material Recovery Orwak
0-5% 0-3% 3-5%
~35% ~15% 10-15%
Profi
tabi
lity
(RO
CE)
RVM Material Recovery Orwak
TARGETS 2010 -2015
Yearly growth 4 – 8%
40% reduced COGS on new RVM machines from 2010 to 2015
EBITA-margin 17%-22%
~75% 90-100% 25%
82
SORTING SOLUTIONS –SEGMENT FINANCIALS
Gross and EBITA margin developmentPercent
Revenue developmentNOK million
2007 2008 2009 2010 20110
100
200
300
400
500
600
700
800
900
1000
Q1 Q2 Q3Q4 Full year
2007 2008 2009 2010 20110
10
20
30
40
50
60
7064 62 62
5854
28 26
1722
18
GM EBITA
83
FINANCIAL DASHBOARD – SORTING SOLUTIONS
TARGETS 2010 -2015
Yearly organic growth 10-15%
Geographical expansion
EBITA-margin 18-23%
Dashboard
10-15%
30-40%
Industry Growth
Profitability (ROCE)
Recurring revenue
Dashboard
Mar
ket s
hare
Geo
grap
hica
l di
vers
ity
10-15%
Cycl
ical
ity
50-60 % 40-60 %
High
40-50 markets 20-30 markets
High
Recycling Mining
25%
45-50 markets
Medium
Food
0
100
200
300
400
500
600
1Q
04
2Q
04
3Q
04
4Q
04
1Q
05
2Q
05
3Q
05
4Q
05
1Q
06
2Q
06
3Q
06
4Q
06
1Q
07
2Q
07
3Q
07
4Q
07
1Q
08
2Q
08
3Q
08
4Q
08
1Q
09
2Q
09
3Q
09
4Q
09
1Q
10
2Q
10
3Q
10
4Q
10
1Q
11
2Q
11
3Q
11
4Q
11
1Q
12
2Q
12
3Q
12
NO
K m
illio
n
Tomra Sorting
ORDER BACKLOG DEVELOPMENT
84
85
Appendices
TOMRA MATERIAL RECOVERY – TRANSFORMING EFFICIENCY
87
TOMRA’S INTEGRATED VALUE CHAIN IN NORTH AMERICA
RVM BUSINESS MATERIAL RECOVERY BUSINESS
In the US, offering an integrated solution to the customer is required in order to sell RVM technology
RVM TECHNOLOGY
SERVICE/SUPPORT
DATA ADMIN./CLEARING HOUSE
MATERIALPICK-UP
MATERIALBROKERAGE
MATERIALPROCESSING
88
MID-WEST, EAST COAST & QUEBEC OPERATIONS
In addition to RVM sales/service, TOMRA is also involved in:
• Logistics management: Pick-up and transportation of collected containers
• Material processing: Sorting, cleaning, shredding/flaking/ crushing and baling materials into recyclable fractions
• Material marketing/trading: Sale and trading of processed materials on behalf of industry, which owns the collected materials
Bottlers pay a fee to TOMRA linked to volume of containers picked-up, processed and marketed
• ~560 MNOK in revenues in 2011
• Own transportation network in some states, outsourced to 3rd parties in other states
• Processing of UBCs in own facilities plus outsourced facilities
• Annual volumes processed (pounds):
– Alu 130+ mill.– Glass 500+ mill.– Plastic 130+ mill
TOMRA COMPACTION– SMALL SPACES CREATE BIG SOLUTIONS
90
VALUE CHAIN IN THE BUSINESS STREAM COMPACTION
SORTING AND COMPACTION AT SOURCE
PICK-UP:BALES AND BRIQUETTES
MATERIAL RECYCLING
TO RECYCLING STATION OR RECYCLING PLANT
91
COMPACTION: THE CONCEPT
92
MARKET SEGMENTS
The four main market segments:
FOOD RETAIL NON-FOOD RETAIL
MANUFACTURING INDUSTRY
HOTELS ANDRESTAURANTS
28
13
17
25
83 6 International
food retailers
Regional food retailers
Non-food retailers
Industry
Waste Management
Public inst.
Fast food, service, other
Revenue breakdown on customer segments:
93
TOMRA - taking a bigger role in the resource revolution
94
DISCLAIMER
CopyrightThe material in this Document (which may be a presentation, video, brochure or other material), hereafter called Document , including copy, photographs, drawings and other images, remains the property of TOMRA Systems ASA or third party contributors where appropriate. No part of this Document may be reproduced or used in any form without express written prior permission from TOMRA Systems ASA and applicable acknowledgements. No trademark, copyright or other notice shall be altered or removed from any reproduction
DisclaimerThis Document (which may be a presentation, video, brochure or other material), hereafter called Document, may include and be based on, inter alia, forward-looking information and statements that are subject to risks and uncertainties that could cause actual results to differ. The content of this Document may be based on current expectations, estimates and projections about global economic conditions, including the economic conditions of the regions and industries that are major markets for TOMRA Systems ASA and its subsidiaries and affiliates. These expectations, estimates and projections are generally identifiable by statements containing words such as “expects”, “believes”, “estimates” or similar expressions, if not part of what could be clearly characterized as a demonstration case. Important factors that could cause actual results to differ materially from those expectations include, among others, changes in economic and market conditions in the geographic areas and industries that are or will be major markets for TOMRA Systems ASA. Although TOMRA Systems ASA believes that its expectations and the Document are based upon reasonable assumptions, it can give no assurance that those expectations will be achieved or that the actual results will be as set out in the Document. TOMRA Systems ASA does not guarantee the accuracy, reliability or completeness of the Document, and TOMRA Systems ASA (including its directors, officers and employees) accepts no liability whatsoever for any direct or consequential loss arising from the use of this Document or its contents. TOMRA Systems ASA consists of many legally independent entities, constituting their own separate identities. TOMRA is used as the common brand or trade mark for most of these entities. In this Document we may sometimes use “TOMRA”, “TOMRA Systems”, “we” or “us” when we refer to TOMRA Systems ASA companies in general or where no useful purpose is served by identifying any particular TOMRA Company
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