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Financial Year 2002 1
20022002
Financial Year 2002 2
Financial highlights -Financial Year 2002
Revenues of 2,667 MNOK, up 3%– Europe 937 MNOK, up 3%– North America 1,303 MNOK, down 4% – South America 427 MNOK, up 99 MNOK
13% revenue growth adjusted for currency impactOperating profit 330 MNOK– ~(86) MNOK currency impact during 2002
Strong cash flow from operations 501 MNOK– Year-ending cash balance > 1 billion NOK
Total assets 3,137 MNOK, down 10% from prior year
Financial Year 2002 3
The year of the NOKCurrency impact on TOMRA during 2002
(2.7)SEK
(2.6)DKK
(0.1)CHF
(10.9)Revenueimpact
(5.4)EUR
(0.8)CAD
0.7USD
Q1MNOK
(2.4)
(6.3)
(0.3)
(66.0)
(6.9)
(3.5)
(46.6)
Q2
(1.9)
(4.6)
(0.4)
(110.9)
(9.9)
(5.1)
(89.0)
Q3
(1.6)
(1.3)
(0.4)
(80.5)
(13.1)
(3.3)
(60.8)
Q4
(8.6)
(14.8)
(1.1)
(268.2)
(35.3)
(12.7)
(195.7)
2002
(7.2)EBIT impact (18.4) (33.0) (27.0) (85.7)
Financial Year 2002 4
Revenue by year(Continuing operations)
19512325
2592 2667
0
400
800
1200
1600
2000
2400
2800
1999 +49%
2000 +19%
2001 +11%
2002 +3%
Financial Year 2002 5
Revenue by quarter(Continuing operations)
391
539 504 518 515561
611 637
551
648697 697
630670
716651
0
100
200
300
400
500
600
700
800
Millio
n N
OK
1999 2000 2001 2002
1st quarter 2nd quarter 3rd quarter 4th quarter
Financial Year 2002 6
Revenues by activity(Continuing operations)
200120022001200220012002
3284271,3541,303910937Total
142170718701--Mat. Handl.
--96651818Adm./Prom.
182255242195--Rec. Centers
--132107295282Service
42166235597637Sales/lease
South AmericaNorth AmericaEurope
Financial Year 2002 7
Business activities revenue split(Continuing operations)
43,0
18,9
23,3
9,0
5,7
33,7
16,5
34,5
10,3
4,9
29,6
16,5
33,2
16,4
4,4
32,8
14,6
32,6
16,9
3,1
0 %
20 %
40 %
60 %
80 %
100 %
1999 2000 2001 2002
Sales/lease Service Mat. Hand. Rec. Ctrs. Adm./prom.
Financial Year 2002 8
Operating profit(Continuing operations)
373451
-17
330
-100
0
100
200
300
400
500
1999 +39%
2000 +21%
2001 2002
Financial Year 2002 9
Pre-tax profit by quarter(Continuing operations)
74
11611793 93 108
147 147
106
141 144
-290
81110 117
99
-300
-225
-150
-75
0
75
150
Millio
n N
OK
1999 2000 2001 2002
1st quarter 2nd quarter 3rd quarter 4th quarter
Financial Year 2002 10
Total assets
270
849
251
351
627
712
1118
253
405
784
698
971
263
579
982
1017
779
181
380
780
0
500
1000
1500
2000
2500
3000
3500
1999 2000 2001 2002
Cash Curr. assets Lease equip. Intangibles Fixed assets
2,348 3,272 3,493 3,137
Financial Year 2002 11
Major shareholders*
57.46%102,560,635Total foreign ownership
100.00%178,486,559TOTAL (12,291 shareholders)
65.62%117,119,551Other shareholders
35.04%62,534,257SUB-TOTAL
1.79%3,187,762Deutsche Bank AG Kundendepot10.
1.86%3,316,573Nordea Bank Denmark S/A Nordea (DK) CCA9.
1.93%3,448,200JP Morgan Bank Lux S/A Carnegie FCP’s8.
1.94%3,456,571Danske Bank A/S 3887 Operations Sec.7.
2.01%3,586,124ABN Amro Bank – Danish Clients6.
2.15%3,831,228Clearstream Banking CID Dept, Frankfurt5.
3.41%6,090,000CDC IXIS c/o Sparebanken NOR4.
4.98%8,885,414State Street Bank & Client Omnibus Depodit Account3.
5.09%9,082,085JP Morgan Chase Bank Clients Treaty Account2.
9.89%17,650,300Folketrygdfondet1.
OwnershipShares
*Registered 30 December 2002
Financial Year 2002 12
Shares & shareholders*
12,07796.13%171,579,130TOTAL
231.53%2,730,844Finland10.
892.41%4,301,526Germany9.
1143.01%5,372,445Sweden8.
243.14%5,604,478Switzerland7.
213.57%6,371,970France6.
546.49%11,583,778Luxembourg5.
587.65%13,654,222Denmark4.
7012.36%22,060,939Great Britain3.
18713.44%23,988,594USA2.
11,43742.53%75,910,334Norway1.
Number ofshareholdersOwnershipSharesCountry
*Registered 30 December 2002
Financial Year 2002 13
BU Europe
Financial Year 2002 14
BU Europe - Highlights
3% revenue growth during 2002– 10% growth when adjusted for currency
impact– Main growth drivers DK, SWE, FIN & CEE
Deposit in Germany implemented on1 January 2003Continued high activity in Finland 4QFirst order of 50 machines to Israel in 4Q
Financial Year 2002 15
BU Europe – Sales by marketGrowth
in local
Figures in MNOK 2002 2001 currency
Norway 66 77 (14%)Sweden 133 122 17%Finland 113 105 15%Denmark 227 58 316%The Netherlands 81 180 (52%)Germany 194 225 (8%)Austria/CEE 55 52 14%Switzerland 30 37 -Belgium 20 42 -Others 18 12 -Total BU Europe 937 910 10%*
*Adjusted for total currency impact in 2002
Financial Year 2002 16
35,900 installed RVM’s in Europe
106 116 399696 814
2 5192 544
2 756 3 2853 845
4 382
6 249
8 210
0
3 000
6 000
9 000
GRE CZ FRA SWI BELG DK Others AUS NLD NOR FIN GER SWE
Financial Year 2002 17
Germany update
Deposit implemented as planned– Interim, store- or chaine based manual solution
Industry working on implementation ofnational deposit system set for 1 October2003– Executive Committee decision on security on 24
January– DSD subsidiary chosen as clearinghouse
Retailers stepped up activities for execution ofautomated solutionsGovernment to propose changes in PackagingOrdinance
Financial Year 2002 18
Decision on security system in Germany
Based on automated collection in all trade segments– Traditional RVMs in large & discount stores– Tailored small store solution for low volume handling
Correct recognition of containers through– EAN bar codes– Special ink marking– Additional recognition devices which might be deemed
necessary
Cancellation of deposit containers through– Compaction in large & discount stores– New cancellation device for special marking
TOMRA part of working technical group, which is developing new recognition & cancellation devices for special marking
Financial Year 2002 19
Container recognition…a ”small” piece of the complete system set-up
Sort andaccumulaterefillables
Devaluate orcompact non-refillables
Refillablecontainer
Non-refillablecontainer
ShapeEAN CodeMaterialWeight
UV markLid mark
Special code
vvvv
vv
Correct countFraud protection
Financial Year 2002 20
The integrated RVM solution
Man Machine Interface & Automation
Pocessing & In- store Logistics
Data Administration & Online Services
Recognitionsystem
Financial Year 2002 21
Basic requirements of RVMs
Shape
Consumer
Speed
Storeoperation
Clearinghouseorganization
All container handling
Easy to use
Mean time between stops
Compaction
Anti-cheat security
Accounting accuracy
Service frequency
Proven technologyService concepts
Online capability
Sorting
Payment accuracy
Value add services Consumer perception
Reliability
Store management
Durability
Financial Year 2002 22
German product portfolioNeed for RVMs = 40,000 without small store segment
T-83
BRAVO
NEW
?
Investment
Smallstores
Hypermarkets
Non-refillable container market(~60% of RVM market)
T-710T-610
All container market(~40% of RVM market)
Financial Year 2002 23
Deposit on all drinks except on– wine– milk– Tetrapaks
Deletion of 72% minimum refillablequota thereby making depositpermanent
Government anticipates changes to PackagingOrdinance to be implemented before 1 October
Simplified legal framework and more consumer friendly deposit system
Financial Year 2002 24
BU North America
Financial Year 2002 25
BU North America - Highlights
Revenue of 1,303 MNOK (-4%)8% revenue growth in 2002 measured in USD22% 4th quarter revenue growth measured in USD1,900 machines installed in total during 2002– of which ~500 T-83 HcP
Rationalization of materials handling capacityin MA/CTProfitable operations in California
Financial Year 2002 26
BU North America –Sales by market
Figures in MNOK 2002 2001 %∆ in USD/CAD
New York 405 473 (4%)Connecticut 92 85 22%Massachusetts 104 108 9%Michigan 289 236 38%California 304 351 (2%)Canada 94 97 11%Others 15 4 327%Total BU North America 1,303 1,354 8%
Financial Year 2002 27
U.S. East RVM market
Upstate
METRO
MichiganIowa
TNY
Maine
MOBILE
81%2,71811,528Total
89%5604,733NY/VT
86%6634,149MI/IA
100%0369ME
57%9951,346MA
65%500939CT
TOMRAshare
OthersTOMRA# ofRVMs
Financial Year 2002 28
U.S. East Materials Handling market
MOBILE
TNYR
METRO
BICS
UBCR
MASS
50%2,027,628,237NY
48%2,523,000,000MI/IA
10%72,000,000ME
48%718,150,703MA
27%316,751,995CT
TOMRA market
share
Units processed by TOMRA
State
Financial Year 2002 29
California looking ahead
1.5 MNOK operating profit in 20022003 initiatives– Goal of 4% volume growth– Continued cost reduction & improved
operational efficiencies
Increased interest from major retailersfor TOMRA recycling center servicesLegislative amendments related to man-hour reduction & paymentstructure from state expected by mid-2003
Financial Year 2002 30
Canadian deposit markets
Deposit Return for all beverages
Deposit Return for soft drinks and beer only
Deposit Return for beer only
Financial Year 2002 31
Canadian beverage market
Population: 31 million 14.3 billion containers sold per yearExpanded deposit in 6 of 10 provinces65.4% weighted average recycling rate
Total containers recovered:– Deposit: 7.6 billion containers p.a. – Non-deposit: 1.75 billion containers p.a.
Tomra handles 954 million containers p.a. – 10.2% market share
Financial Year 2002 32
Canadian RVM market
1,770Total
150Other
670USIPAC (TOMRA)
950TOMRA
# of RVMsPlayersTypical retail configuration
Financial Year 2002 33
TOMRA’s processing facility outside Montreal
Financial Year 2002 34
2003 key initiatives in Canada
Cooperation with beer industry to improvehandling efficiencies through automatedcollection at beer & liquor stores (Ontario in 2003 & Alberta in 2004)Replace existing, non-intelligent USIPAC RVMsin Quebec in order to gain cost efficiency & limit fraudPenetrate small store segment in QuebecIntroduce TOMRA 83 HCp in large store segment in Quebec
Financial Year 2002 35
BU South America
Financial Year 2002 36
BU South America - Highlights
Revenues of 427 MNOK, up 99 MNOKCurrency impact on revenue (59) MNOKIntegration and rationalization of Imcocollection centers in completion phaseTOMRA positioned with new business model to fulfill stakeholders’ needs in connection with new PET law in thestate of Rio de Janeiro
Financial Year 2002 37
Brazilian recycling context
Legal context
Consumer context
Environmental context
Enormous beverage container littering problem related to PET containers
Regulators are aware of the problem and several new regulations are currently being put into place
– PET law in Rio (25% recycling; practical solutions under dev.)
– PET law in Sao Paulo– National solid waste policy– PET law in Pernambuco– PET law in Ceara
High consumer sentiment towards recyclingConsumers expect a more active role from retail and beverage industry
All companies involved in the manufacturing, use and sale of beverage containers are experiencing increased pressure to step up recycling efforts
As retailers sell the majority of PET bottles, they are naturally expected to contribute strongly
Overall Population: 173 millionContainer universe: 36 billion
Financial Year 2002 38
rePlaneta history & results
A pilot for testing collection at the retail site
Cooperation between Tomra, Ambev and Pao da Acucar
Pilot initiated at 8 locations in Rio de Janeiro on June 4, 2001.
Some promising results in pilot period198 000 customers10 million containers collected
Very well received by consumers and positive value realized for retailer
Very positive signals from regulators
Solid experience base established on how to operate retail collection infrastructure in Brazil
History Observations
The Replaneta concept and business model is a very cheap and effective way to significantly increase recycling rates for PET in Brazil
Financial Year 2002 39
rePlaneta installations
Extra Extra TijucaTijuca -- 11ºº Extra Extra BarraBarra dada TijucaTijuca -- 22ºº
Extra Boulevard Extra Boulevard -- 33ºº Extra Extra NiteróiNiterói -- 44ºº
Financial Year 2002 40
In Brazil, the retailer is at thecenter of recycling
Consumers
Tomra
Advertisers
Beverage industry
Regulatory environment
Retailer
The retailers are taking a lead in establishing an attractive/effective infrastructure and draw on other stakeholders for financing and support
Financial Year 2002 41
Establishment of collection infrastructurewill help solve PET problem
Approximately 100 centers in Rio de Janeiro state would collect ~100 million PET containers and increase recycling by 12-15% to above 30% total
Retail location is preferred and 100 centers in Rio de Janeiro State would likely be distributed at 28 Hypermarkets and 72 Supermarkets
Current average PET volume per center
Average number of PET containers collected per center per yearThousands
50 % efficiency increase through adjusted incentives and improved marketing
650
325 975
New average PET volume per center
Financial Year 2002 42
Brazil – number of grocery stores by format
2000
Small supermarkets(1-4 checkouts)
Medium supermarkets(5-19 checkouts)
Hypermarkets(50+ checkouts)
Large supermarkets(20-49 checkouts)
~150~450
~4,800
~52,400
~57,800
Large number of grocery retail outlets, but majority of smaller stores
Initially estimated potential for Replanetainstallations at ~1,000-2,000 stores
Financial Year 2002 43
Japan 2002
No. of inhabitants: 127 million
Container universe: 47.5
billion
High consumerrecycling activity (70-80% recycling rate for cans/glass and 15% for plastic)
Existing municipalmodels run at extremely high costs
Envipco’s former distributor now a Tomra Partner
Envipco equipment currently beingreplaced by Tomra recycling centers
Municipality operated collectioncenters are very successful
– Example from Hozumi Townmunicipality shows 73% resident participation with one collectioncenter per 3000 inhabitants
– Significant cost reduction for municipality
4 MNOK in sales during 2002
”Unlimited” potential through themunicipality model – 3240 municipalities in Japan
Background Developments
Financial Year 2002 44
Recent installations in Japan
Financial Year 2002 45
2003-2005 business development priorities
Latin Am. hub:Brazil (Sao Paulo)
Asian hub:Japan (Tokyo)
European hub:Germany (Düs.)
BrazilMexicoEtc.
JapanMalaysiaAustraliaEtc.
Germany UKSlovakiaBalticsEtc.
Wal*MartEtc.
We will leverage current “hubs” to explore new regional opportunities
US hub:CT (Stratford)
Financial Year 2002 46
