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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


Key activities

Customers

Market share

Employees


Key activities

Customers

Market share

* Proforma 2011 as if BEST should have been part of TOMRA

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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

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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

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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

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RVM PRODUCT PORTFOLIO

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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

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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

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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

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46

TOMRA Sorting Solutions

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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

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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

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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)


LIBS Laser induced breakdown spectroscopy

Recycling, Mining

EM (Electro-Magnetic sensor)

Conductivity,permeability


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


~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


revenue


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


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

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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


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

http://www.greefa.nl/uk/default.htm

http://www.maf-roda.com/index.html

http://www.greefa.nl/uk/default.htm

http://www.maf-roda.com/index.html

TOMRA SORTING RECYCLING - TRANSFORMING EFFICIENCY AND QUALITY

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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

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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


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


2010 2015

50

90

40

70

Waste Metal

68

RECYCLING COMPETITIVE LANDSCAPE

Technological advantage

HighLowCo

st a

dvan

tage


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

http://search.debeersintranet.com/Metdoc/Documents/Metallurgy%20presentations/X-ray%20Machine%20Final640by480.avi



http://search.debeersintranet.com/Metdoc/Documents/Metallurgy%20presentations/CrusherDemo.avi

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


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


2010 2015

20

60

74

MINING COMPETITIVE LANDSCAPE


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