Handelsbanken Mid/Small Cap Seminar21 June 2011 in Stockholm

Stefan RanstrandPresident/CEOTomra Systems ASA

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“A tiny blue and green oasis of life in a cold universe.” – David Suzuki

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TRANSFORMATION

The world population and standard of living is increasing dramatically

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World resources are under unprecedented pressure

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Resource productivity must increase to ensure sustainable development

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TRANSFORMATION

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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.

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TOMRA is transforming how we obtain our resources…

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Our sorters can increase recovery of valuable minerals by up to 25%

Our sorters can reduce water consumption with 3-4 cubic meters per ton ore

Our sorters can reduce energy consumption in mining by 15%

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TOMRA is transforming how we use our resources…

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More than 30 per cent of fruits and vegetables grown for North American consumers are discarded before they reach grocery store shelves because of cosmetic imperfections*

One of our optical sorters can individually analyze millions of potatoes, tomatoes etc. per day and quality sort each and every one to maximize efficient use of the produce

Up to 100% reduction on manual labor alternative and productivity increases up to 20%. Yield improvement > 1.5%

12* According to MAF Roda

TOMRA is transforming how we reuse our resources…

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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

450 000 tons of metal is recovered every year by our metal recycling machines

Our vertical balers enable daily savings of 45,000 transport movements, 700,000 liters of fuel and up to 50% of customers’ waste handling costs

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TOMRA creates sensor-based solutions for optimal resource productivity

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Today we are seeing more opportunities for transformative solutions than ever before.

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Deposits into refunds…

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Waste into wealth…

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Source into resource…

Purpose into profits…

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Profits into progress…

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TOMRA is showing that we can move past the false choice between the earth and the economy

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This is the resource revolution

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TOMRA is leading it

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TOMRA Collection Technology

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RVM TECHNOLOGY

SERVICE/SUPPORT

DATA ADMIN/CLEARING

MATERIALPICK-UP

MATERIALBROKERAGE

MATERIALPROCESSING

MATERIALRECYCLING

The used beverage container recycling value chain

Generic used beverage container (UBC) recycling value chain

RVM-based UBC recycling value chain

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Value proposition

• RVMs reduce need for manual labor 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 convenience

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Current global installed base of RVMs in deposit markets

South America: ~1,000

Nordic: ~20,000

Germany: ~30,000 / 45,000*

North America: ~19,000

Other Europe: ~20,000

Japan: ~500

All deposit (7)

Non-refillable

Refillable

ESTIMATES

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New markets

* Trautwein has ~20,000 small RVMs installed in corporate cantinas, factories etc. Source: TOMRA analysis

INDICATIVE

Proposed expansion/amendments

Industry Funded Repeal Campaign

CDL campaign

North America Europe/Other

UK: 20,000-25,000 RVMsfully penetrated

Australia: 4,000-5,000 RVMs fullypenetrated

Spain: 15,000-20,000 RVMs fullypenetrated

Protect and defendexisting business

Spur growth in existing markets

Succeed in new markets

• Cost leadership

• Increased differentiation

• Accelerated machine replacement

• Incremental revenue streams on installed base

• New segments/channels

• New deposit markets

• Viable non-deposit business models

Our strategy

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Highlights – Collection Technology

• TOMRA is the number 1 player in the reverse vending machine (RVM) industry

• Installed base of more than 65,000 machines across more than 30 markets

• Annual revenue of ~2 bn NOK

• Current EBITA margin of 15-20% after R&D charges

• Opportunities for introduction of new (deposit) legislation and expansion of existing deposit systems

• Opportunities to leverage installed base– Accelerated replacement of old

machines in existing markets through increased innovation

– Incremental revenue streams on installed base (value added services etc.) such as PANTO

– New material streams handled by RVMs – odd shapes

– Penetration of new segments/channels

Business characteristics Investment opportunities

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TOMRA Sorting Technology

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RECYCLING MINING FOOD

Sorting and inspection business streams

SEGMENT

SHARE OF

REVENUE

MATERIALS

CUSTOMERS

INDUSTRY

POSITION

1 1 Top 5 overall, number 1 in certain segments

~45%

Plastics, paper, metals etc.

Material recovery facilities, scrap dealers, metal shredder operators

~20%

Minerals, gems, coal, metal slag etc.

Mining companies

~35%

Potatoes, tomatoes, carrots etc.

Food growers, packers and processors

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1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

• Revenue growth, organic plus inorganic, of nearly 40% per year from 2004-10

• Technology base and segment/application knowledge expanded both through acquisitions and in-house ventures

• Growth driven by

− Favorable changes in regulatory framework (DSD, WEEE, ELV, etc)

− Price increases in food, commodities & landfill costs

− Strong sales and service network

− Technology leadership

− Higher quality and food safety demands

TITECH Visionsort AS established

CommoDas acquired

Ultrasort acquired

QVision AS established

>100

Strong revenue growth since inception in 1996

Revenue development and key milestones for TITECH GroupEUR million

Real Vision Systems acquired

TITECH acquired by TOMRA

14.5

0.5

Odenberg acquired

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Total annual market size for different sensor-based sorting segments

EUR million

Market size and potential

ESTIMATES

Source: TOMRA analysis

~500-550

~850-900

50 90407020

60

400

650

2010 2015

Food

Mining

Metal

Waste

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Maintain technology leadership position

Expand geographically

Use M&A to consolidate market and enter new business streams

• Continue to invest heavily in R&D

• Bring new and enabling technology to the market

• Further develop web of partners

• Aggressively target promising regions and markets

• Leverage market presence across entire portfolio

• New verticals/business streams in sensor-based sorting

• Increase footprint and scale through consolidation

Our strategy

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• World leader in sensor-based sorting

• Focused on recycling, mining and food -number 1 in waste and mining and a key player in food

• Installed base of ~5,000 optical sorters and 500 peelers across 45 markets

• Total 2010 revenue of more than 100 MEUR

• Strong value propositions and attractive ROI for customers based on reduction of operational costs and/or increased quality/output of material stream

• Expansion into new segments (new verticals/industries) and new geographies

• Potential for increased scale benefits and rapid growth through industry consolidation

Business characteristics Investment opportunities

Highlights – Sensor Based Sorting

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TITECH – Waste to wealth

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Value proposition for PET sorting

Reducescosts

Increasesrevenues

Ensures consistent,

stable and fast operations

• Reduces person-hours by up to 75 %

• Low operating and maintenance costs and reduced space requirements

• Avoids high turnover of personnel

• High precision (over 99% purity –ready for BtB processes)

• Easy to adapt to changing needs and sorting tasks

• Sorting of up to 10 tons per hour

• MTBF >7,000 hours, i.e., two years of two-shift operations

• Reduced accidents and less strain on staff

• Constant quality and performance

• Some sorting tasks impossible/difficult for manual sorters

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Market segments in recycling

Waste recycling Metal recycling

PackagingSorting

Commercial & Industrial Wate Sorting

Construction & demolition WasteSorting

Single Stream Recycling

Paper Sorting

Mixed MunicipalSolid WasteSorting

RefuseDerived Fuel

Pre-sortedMaterial Sorting

End of Life VehiclesScrap Sorting

Electronic Scrap Sorting

Non-FerrousMetals Sorting

Ash Sorting

WireRecovery

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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

Market size and potential

90

160

Source: TOMRA analysis

50

90

40

70

2010 2015

Waste Metal

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ESTIMATES

• TITECH pioneered optical sorting of waste and is the number 1 player in this industry

• Serves all key market segments such as recycling of plastics, paper, metals etc.

• Installed base of more than 2,500 units

• Strong sales and service network

• Unrivalled technology platform

• Growing business, historically the annual growth rate has been in excess of 20%

• Favorable macro drivers– Increasing waste volumes– More ambitious recycling targets and

programs– Labor costs continue to increase– Attractive commodity prices

• Continued strong organic growth driven by geographical expansion and new sorting applications– Asia, Middle East and South America

are growing markets– Demand for more advanced sorting

solutions as markets become more sophisticated and experienced with sensor based sorting

Highlights - TITECH

Business characteristics Investment opportunities

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Commodas Ultrasort –Finding mindful solutions

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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

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PreciousMetals

IndustrialMinerals

Calcite

Feldspar

Dolomite

Talc

Quartz

Magnesite

Salt

Diamonds

Tanzanite

Emeralds

Diamonds& Gems

Gold

Platinum

BaseMetals

Iron

Manganese

Chromite

FerrousMetals

Copper

Zinc

Nickel

Tungsten

Lead

Fuel

Coal

Uranium

StainlessSteel

Copper

Chromite

Slag

Bold = High Volume Mining

Market segments

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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 analysis

20

60

2010 2015

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ESTIMATES

• CommoDas UltraSort is the number 1 player in sensor-based sorting of mining materials

• Covers all key industry segments such as minerals, metals, gemstones etc.

• ~160 units installed worldwide

• Rapidly growing business

• Increasing demand for commodities from emerging markets

• Increased pressure on costs but high/increasing energy and water costs

• Tougher environmental regulations

• Lower head grade

Business characteristics Investment opportunities

Highlights - Commodas Ultrasort

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Odenberg – Securing quality, efficiency and productivity

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Value proposition

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Operational Efficiency

Reduces Costs

Assured Consumer

Food Quality & Safety

Increases Revenue

• Up to 100% reduction on manual labor alternative

• Productivity Increases -~ 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.

Market segments and technologies for food sorting

Source: TOMRA analysis 49

SK

Seeds &

Kernels

PFV

Processed

Fruits &

Veg incl

Frozen /

diced..

FF

Fresh Fruits

FV

Fresh Vegetables

NDF

Nuts &

Dried Fruit

Circa 45% of global production (volume)

Circa 40% of global production (volume)

Source: TiTech analysis

M&A opportunities within sensor-based sorting/inspection

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Fruits and vegetables

StaplesMeat & fish

Dairy BeveragesBread and bakery

SweetsFeed & pet food

Key

Odenberg

MAF

Greefa

Aweta

Citrus

BEST

Buhler (Sortex)

SEA

Satake

Concept Engineers

Visys

QVision

InLine Process

Buchi

Perten

Process Sensors

TermoScientific

Bruker Optics

NIR-Online

NDC

ESE

Concept Engineers

Concept Engineers

S+S

Foss

Prediktor

NDC

NIR-Online

Prediktor

Process Sensors

Carl Zeiss Carl Zeiss

Mettler Toledo

Loma

Anritsu

Ischida

Smiths Detection

Foss

Process Sensors

Food sorting

Process analytics

Product inspection

RayTech

Target-rich environment

Focus for this presentation

Market size and potential

Total annual market size

EUR million

400

650

2010 2015

Growth potential

• Market expected to grow at an annual rate of >10% overall

• Odenberg expects to increase its overall market share

Drivers

• More sophisticated and demanding consumers with more disposable income and changing eating habits

• 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 analysis 51

ESTIMATES

• Top 5 player in optical sorting and processing solutions for food.

• #1 in sorting of potatoes, tomatoes & peaches and # 1 in steam peeling of potatoes

• Diversified both geographically and by customer type

• Proven & loyal partner to some of worlds top food companies

• Installed base of ~2,200 optical sorters and ~500 steam peelers

• Rapidly growing business, revenue doubled from 2005 to 2010

Business characteristics Investment opportunities

Highlights - Odenberg

• Increasing global consumption of food

• Growing middle class population (70 million per year) with increasing demands for food quality, in particular from BRIC countries

• Relentless industry focus on reducing costs through automation and improved quality control

• Stricter rules and regulations regarding food safety [farm to fork]

• Huge liability issues for food manufacturers if products are defect or contaminated

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Financial performance and targets

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Collection Technology - Segment financials

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Gross and EBITA margin developmentPercent

Revenue developmentNOK million

0

500

1000

1500

2000

2500

2007 2008 2009 2010

Q1 Q2 Q3 Q4 Full year

4345 46

48

16 16

2119

0

5

10

15

20

25

30

35

40

45

50

2007 2008 2009 2010

GM EBITA

Collection Technology - Financial Dashboard

55

~75%

~35%

Industry growth

Profitability (ROCE)

Recurringrevenue

Dashboard

20-30 markets

~65%

Low

Market share

Geographicaldiversity

Cyclicality

0-5%

TARGETS 2010 -2015

• Yearly growth 5 – 10%

• 40% reduced COGS on machines from 2010 to 2015

• EBITA-margin 20-25%

Industrial Processing Technology - Segment financials

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Gross and EBITA margin developmentPercent

Revenue developmentNOK million

0

100

200

300

400

500

600

700

800

900

2007 2008 2009 2010

Q1 Q2 Q3 Q4 Full year

51 52 52 53

1719

5

18

0

10

20

30

40

50

60

2007 2008 2009 2010

GM EBITA

Financial Dashboard - Industrial Processing Technology

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10-15%

’15-40%

Industry growth

Profitability (ROCE)

Recurringrevenue

Dashboard

40-50 markets

10-60%

Medium to high

Market share

Geographicaldiversity

10-15%

TARGETS 2010 -2015

• Yearly organic growth 15%

• Acquisitions on top

• EBITA-margin 20-25%

Cyclicality

Material Handling - Segment financials

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Gross and EBITA margin developmentPercent

Revenue developmentNOK million

0

200

400

600

800

1000

1200

2007 2008 2009 2010

Q1 Q2 Q3 Q4 Full year

21

17

10

22

10

7

-8

9

-10

-5

0

5

10

15

20

25

2007 2008 2009 2010

GM EBITA

Financial Dashboard - Material Handling

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90-100%

~14%

Industry growth

Profitability (ROCE)

Recurringrevenue

Dashboard

10 markets

30-80%

Market share

Geographicaldiversity

0-3%

TARGETS 2010 -2015

• Yearly organic growth 0-3%

• EBITA-margin >10%

Low

Cyclicality

• Cash flow from operations

• 40 MNOK in 1Q 2011 versus 109 MNOK in 1Q 2010, which was positively influenced by prepayments

• Cash flow from investments

• Investment of 55 MEUR in Odenberg in 1Q 2011

• Other investments of 48 MNOK 1Q 2011

• Interest bearing debt

• Increased by 422 MNOK during 1st quarter due to the Odenberg acquisition

• 500 MNOK 5 year revolving debt facility, established in January 2011, replacing previous 250 MNOK facility due to expire in October 2011

• Additional 500 MNOK to be refinanced during 2Q 2011

• Solid financial position

• 48% equity

• NIBD/EBITDA* =1.2

Amounts in NOK million

31 Mar 2011

31 Mar 2010

ASSETS 3831 3123

• Intangible assets 1394 904

• Leasing equipment 158 124

• Other fixed assets 615 606

• Inventory 614 568

• Short-term receivables 941 891

• Cash and cash equivalents 109 30

LIABILITIES AND EQUITY 3831 3123

• Equity 1833 1919

• Interest bearing liabilities 957 269

• Non-interest bearing liabilities

1041 935

* Rolling 12 months based upon EBITDA before other items

Financial highlights – balance sheet, cash flow and capital structure

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TOMRA creates transformative sensor-based solutions for optimal resource productivity

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Today we are seeing more opportunities for transformative solutions than ever before.

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Deposits into refunds…

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Waste into wealth…

64

65

Source into resource…

Purpose into profits…

66

Profits into progress…

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TOMRA is showing that we can move past the false choice between the earth and the economy

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This is the resource revolution

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TOMRA is leading it

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