0
FY 2005FY 2005
1
Checklist 2005
• 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
To-do list 2005 Status
• Integrate TiTech and Orwak Group into TOMRA• Successfully complete pilots in the UK and Japan• Execute on German opportunity
Q404
Q105
Q205
Q305
2
Back to sustainable profitable growth...Operating revenues – 12 month rolling averageNOK million
Gross Margin – 12 month rolling averagePercent
34.0%
34.5%
35.0%
35.5%
36.0%
36.5%
37.0%
37.5%
38.0%
Jan-05
Feb-05
Mar-05
Apr-05
May-05
Jun-05
Jul-05
Aug-05
Sep-05
Oct-05
Nov-05
Dec-05
2,400
2,450
2,500
2,550
2,600
2,650
2,700
Jan-05
Feb-05
Mar-05
Apr-05
May-05
Jun-05
Jul-05
Aug-05
Sep-05
Oct-05
Nov-05
Dec-05
660
680
700
720
740
760
780
Jan-05
Feb-05
Mar-05
Apr-05
May-05
Jun-05
Jul-05
Aug-05
Sep-05
Oct-05
Nov-05
Dec-05
0
50
100
150
200
250
Jan-05
Feb-05
Mar-05
Apr-05
May-05
Jun-05
Jul-05
Aug-05
Sep-05
Oct-05
Nov-05
Dec-05
Operating expenses – 12 month rolling averageNOK million
Operating profit – 12 month rolling averageNOK million
NOTE: One-time effects of -159 MNOK not included in the charts
3
Financial highlights (IFRS, continued and discontinued operations)NOK million
4Q 05 4Q 04 FY 2005 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 excludingrestructuring charges
93 70 226 236
Operating profit includingrestructuring charges
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
2432,9940.05
4083,2571.00
4
SEGMENT: RVM Technology
5
RVM Technology – Financials
NOK million4Q 05 4Q 04 FY 2005 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%)
541c)
(46%)635
(51%)
Operating expenses 93a) 107b) 424d) 416e)
Operating profit (in %)
66(19%)
59(18%)
117(10%)
219(18%)
a) Including restructuring charges of 6 MNOK b) Including restructuring charges of 12 MNOKc) Including inventory write-downs of 12 MNOK in 2Q 05 d) Including total restructuring charges of 46 MNOKe) Including total restructuring charges of 19 MNOK
6
RVM Technology – Highlights
• 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 05
• 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 2005, 4,000 additional RVMs ordered in January 2006 – minimal impact on 4Q figures
Europe
• 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 2005• 70 MNOK replacement contract in Michigan signed in January 2006
North America
7
RVM Technology – Order situation in Germany
Number of machines Contract value (ex. service)NOK billion
Total market potential
Ordered so far
Total market potential
Ordered so far
30,000-40,000
~12,000?~1.7?
4.5-7.0
TOMRA
Others~8,000
~4,000?~0.5?~1.2TOMRA
Others
ESTIMATES
Our expectations
remain unchanged
TOMRA is on the right track towards delivering on the 50% - 70% market share ambition in Germany
8
RVM Technology – Timing of German orders to P&L
ROUGH ESTIMATESEstimated number of machines taken to P&L in Germany
4Q05
1Q06
2Q06
3Q06
4Q06
TOTAL (so far)
~ 80
~ 1,000*
~ 2,500*
~ 2,500
~ 2,000
~ 8,000
Exact timing of installations and upgrades still partly a moving target
Majority of current order backlog expected to be taken to P&L during 2Q and 3Q this year
Available production capacity in second half of 2006
* Includes several upgrades of refillable RVMs
9
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 2005 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
SEGMENT: Collection and Materials Handling
11
Collection & Materials Handling – Financials
NOK million
4Q 05 4Q 04 FY 2005 FY 2004
Revenues 201 189 848 821
• US East/Canada 105 107 469 484
• 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
12
Collection & Materials Handling – Highlights
• Revenues of 469 MNOK, down 3% versus 2004; measured in USD revenues increased 1% to 72.8 MUSD
• Record profitability due to further streamlining oftransportation and processing activities
• Consolidation of processing plants in 2005 will yield furthercost savings in 2006
US East/ Canada
• 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
• 2005 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
US West/ California)
13
Collection in California – Commodity prices
1400
1600
1800
2000
2200
2400
2600
2800
3000
Jan-
05
Feb-
05
Mar
-05
Apr
-05
May
-05
Jun-
05
Jul-0
5
Aug-
05
Sep
-05
Oct
-05
Nov
-05
Dec
-05
Jan-
06
Feb-
06
Aluminum price development (London Metal Exchange – Cash prices)USD/metric tonne
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
14
SEGMENT: Recycling Technology
15
Recycling Technology – Financials
4Q 05 4Q 04 FY 2005 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%)
NOK million
* Including restructuring charges of 2 MNOK** Including total restructuring charges of 5 MNOK
16
Recycling Technology – Highlights
• 3rd consequtive year of record revenues and profits driven by strongsales in Germany and the US
• Market share of ~70% maintained• New markets entered in 2005 include Korea, Australia and Norway• Cooperation with TOMRA in materials handling in North America• Several technology innovations in 2005 ensured TiTech’s position as
the industry leader in optical sorting
TiTech
• Stable revenue development versus previous year; Presonacontinued 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• 2005 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
Orwak Group
17
Recycling Technology - Order book
0
10
20
30
40
50
60
70
80
90
4Q02 1Q03 2Q03 3Q03 4Q03 1Q04 2Q04 3Q04 4Q04 1Q05 2Q05 3Q05 4Q05
Order book value NOK million
Timing
Although first quarter is generally weak, 1Q 2006 should be significantlybetter than 1Q 2005 based on value of order book entering 2006
18
SEGMENT: Other non-deposit activities
19
Other non-deposit activities - Financials
NOK million
4Q 05 4Q 04 FY 2005 FY 2004
Revenues 1 102 252 373
Gross contribution (in %) - 10(10%)
39(15%)
49(13%)
Operating expenses 9 26 171* 105
Operating profit (8) (16) (132) (56)
* Including total restructuring charges of 86 MNOK in 2Q 05
20
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 2005 for 122 MNOK
in cash
• 5 TRCs installed during 2005, 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
UK
• Test program in Tokyo/Yokohama successfully completed early 2005 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
Japan
21
UK collection volumes – Approaching break-even
Number of units collected per center per monthThousand units
ROUGH ESTIMATES
Start-up period (Nov 04 – Mar 05)
Mid-term period(Apr 05-Oct 05)
Current(Nov 05-Feb 06)
250
70
Assumed break-even
volume
Actual volume per
center (average)
200
80
Assumed break-even
volume
Actual volume per
center (average)
120
90
Assumed break-even
volume
Actual volume per
center (average)
180
120
30
22
Proposed dividend for 2005
•At the Annual General Assembly in May, The Board will– Recommend a 2005 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 2005– Ask for a new authorization to buy back 10 million additional shares
(on top of the 10 million authorized in 2005) 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
23
TOMRA focus areas in 2006
• New segments and markets for TiTech
• Focused sales and marketing efforts in Orwak Group
• Selected M&A
• Sign agreement withSumitomo during 1H 2006
• Obtain TESCO decision onexpansion of TRC program during 1Q 2006
• Invest in selected newinitiatives - several newprojects under evaluation
Recycling Technology
Development initiatives
• Maximize value of Germanopportunity
• 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 labor-intensive activities
• Maximize commodity pricing opportunities
RVM Technology
Collection &Materials Handling
24
Addendum slides
26
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 2005
27
Shares & shareholders*
Country Shares OwnershipNumber 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% 14 805
*Registered 31 December 2005