Third Quarter 2005 - Cisionmb.cision.com/Main/4659/9327174/60699.pdf · Third Quarter 2005. 1...
Transcript of Third Quarter 2005 - Cisionmb.cision.com/Main/4659/9327174/60699.pdf · Third Quarter 2005. 1...
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Third Quarter 2005Third Quarter 2005
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Financial highlightsNOK million
3Q 05 3Q 04 YTD 05 YTD 04
Revenues 701 665 1987 1849
• RVM Technology 299 303 827 922
• Collection & Materials Handling 247 237 647 632
• Recycling Technology 95 24 262 24
• Other non-deposit activities 60 101 251 271
Operating profit excludingrestructuring charges
79 83 133 166
Operating profit includingrestructuring charges
73 76 (12) 159
Cash flow from operations 66 96 112 332
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Initial remarks
The process of assessing which business areas will be included in the future strategic scope of TOMRA has been completed• Divestment of Brazilian operations was concluded on 31 August for a sales
price of 19 MUSD (122 MNOK) in cash payment• The remaining business areas constitute TOMRA’s future platform
Ambition level for the previously announced cost reduction program is maintained despite increased activity level in Germany• Cost reduction target of ~80 MNOK maintained despite increased activity
level in R&D and engineering and capacity ramp-up in production• Expected total restructuring charges in 3Q and 4Q will be reduced from 30
MNOK to 20 MNOK
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SEGMENT: RVM Technology
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RVM Technology - FinancialsNOK million
3Q 05 3Q 04 YTD 05 YTD 04
Revenue 299 303 827 922
• Nordic 98 95 280 335
• Central Europe & UK 103 111 276 310
• Rest of Europe - 3 - 5
• US East/Canada 98 94 271 272
Gross contribution(in %)
141(47%)
159(52%)
382***(46%)
469(51%)
Operating expenses 101* 101** 331**** 309**
Operating profit (in %)
40(13%)
58(19%)
51(6%)
160(17%)
* Including restructuring charges of 6 MNOK in 3Q 05** Including restructuring charges of 7 MNOK in 3Q 04*** Including write-downs of 12 MNOK (in 2Q 05)**** Including restructuring charges of 40 MNOK (1Q+2Q+3Q 05)
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RVM Technology – Highlights
• Revenue decrease of 4% to 201 MNOK in 3Q 05 versus 209 MNOK in 3Q 04; year-to-date revenues down 14% due to weaker EURO and lower sales
• Increased sales in Denmark in August and September due to several new store openings
• Increased RVM installation rate in Holland from September due to new legislation
Europe
• Revenue increase of 11% to 15.1 MUSD in 3Q 05 versus 3Q 04, 4% increase in NOK to 98 MNOK; year-to-date revenues in USD up 7%, unchanged in NOK
• Stronger volumes main driver behind growth
North America
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RVM Technology – Orders from Germany
• ~100 reverse vending systems to be installed in ~35 GLOBUS hypermarkets
• Total contract value of 4.1-6.5 MEUR depending on choice of backroom solutions and share of machines delivered with crate unit
• Systems to be installed end of 2005 and beginning of 2006
• There is a need to keep tight control over the supply chain during the roll-out in Germany
• Therefore, a potential change of strategic ownership of Tomra Production AS has been postponed
• Harmonization of product portfolio and outsourcing of certain components/platforms will continue
• A firm order for ~1,200 RVMs and an option for up to 500 additional machines to Ali Süd’s ~1,650 stores
• Most of the machines are stand-alone machines with limited backroom solutions
• The machines will be delivered and installed during 1H 2006
SEGMENT: Collection and Materials Handling
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Collection & Materials Handling - FinancialsNOK million
3Q 05 3Q 04 YTD 05 YTD 04
Revenue 247 237 647 632
• US East/Canada 143 142 364 377
• US West 104 95 283 255
Gross contribution(in %)
65(26%)
59(25%)
153(24%)
143(23%)
Operating expenses 33 33 93 97
Operating profit (in %)
32(13%)
26(11%)
60(9%)
46(7%)
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Collection & Materials Handling – Highlights
• 3Q 2005 revenue increase of 7% to 22.1 MUSD in Materials Handling operations vs. 3Q 2004; up 1% in NOK to 143 MNOK
• YTD revenues in USD up 4% to 57 MUSD; down 3% measured in NOK
US East/ Canada
• 3Q 2005 Collection revenues up by 18% vs. 3Q 2004 to 16.3 MUSD; up 9% measured in NOK to 104 MNOK
• YTD revenues in USD up 19% to 44.4 MUSD; up 11% in NOK
US West/ California)
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Collection & Materials Handling –margin development
12-months rolling average operating profit (EBIT) marginPercent
Continued efficiencies driving improved profitability in Materials Handling operations
Higher aluminum price and collection volumes main reason for growth and improved profitability in Collection
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JAN
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FEB
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MAR 0
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APR
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MAY
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JUN
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JUL
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AUG
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SEP
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OCT
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V 0
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DEC
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JAN
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FEB
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MAR 0
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APR
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SEGMENT: Recycling Technology
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Recycling Technology - FinancialsNOK million 3Q 05 3Q 04 YTD 05 YTD 04
Revenue 95 24 262 24
• Nordic 21 - 56 -
• Central Europe & UK 48 10 129 10
• Rest of Europe 12 10 29 10
• US/Canada - 3 13 3
• Rest of World 14 1 35 1
Gross contribution(in %)
45(47%)
16(67%)
121(46%)
16(67%)
Operating expenses 30 11 103* 11
Operating profit (in %)
15(16%)
5(21%)
18(7%)
5(21%)
* Including restructuring charges of 3 MNOK in 2Q 05
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Recycling Technology – Highlights
• Continued strong performance in both TiTech and Orwak Group –operating margin of 16% in 3Q
• Strong operating margins driven by operational leverage in both TiTech and Orwak Group
• Order backlog of 77 MNOK end of 3Q 2005 vs. 65 MNOK end of 3Q 2004 supports strong development in 4Q
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Recycling Technology - Order book
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4Q02 1Q03 2Q03 3Q03 4Q03 1Q04 2Q04 3Q04 4Q04 1Q05 2Q05 3Q05
Order book NOK million
Timing
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SEGMENT: Other non-deposit activities
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Other non-deposit activities - FinancialsNOK million
3Q 05 3Q 04 YTD 05 YTD 04
Revenue 60 101 251 271
Gross contribution (in %) 9(15%)
15(15%)
39(16%)
39(14%)
Operating expenses 19 25 163* 79
Operating profit (10)(-17%)
(10)(-10%)
(124)(-49%)
(40)(-15%)
* Including total restructuring charges of 86 MNOK in 2Q 05
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Other non-deposit activities – Japan
Prerequisites for success in place• High UBC volumes• Consumer behavior favorable• Existing manual solutions expensive• Increasing PET (aluminum) commodity prices• Current TOMRA technology applicable (with
some modification)
10 RVMs operating in Tokyo municipalities• Municipalities satisfied• Positive consumer response – sufficient
volumes• Retailers satisfied by higher customer traffic
STRONG MOMENTUM CREATED, BUT SIGNIFICANT VOLUMES EXPECTED NO
EARLIER THAN 2007/2008
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Other non-deposit activities – UK
Key elements in business model to be assessed• Current system costs low due to low recycling
rates (but potential future costs high)• Business model depends on high collection
volumes to finance cost of technology• Current TOMRA technology applicable, but must
be industrialized
5 TRCs operating in the UK• Consumers like them and use them, however
– Harder to change behavior than in Japan– Volumes without incentives too low– Plastics/metal mix unfavorable
• Incentives implemented – Positive initial effect, too early to conclude – Simple awareness building just initiated
SIGNIFICANTLY INCREASED VOLUMES NEEDED
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Invitation to Capital Markets Day
Tomra Systems ASA invites all investors, fund managers and analysts to a Capital Markets Day on 8 November 2005 between 08:30 AM and 12:30 PM. Visiting address will be Drengsrudhagen 2, Asker. Registration will start at 8:00 AM.
Key topics include:• Overall TOMRA strategy and business plan going forward• Project Germany – expectations and preparations• North America – business strategy overview• Non-deposit initiatives• RVM product development and harmonization
If you would like to attend the event, please send your confirmation to Ragnhild Ringheim via E-mail at [email protected] or via fax +47 66 79 91 15, including your contact information, by 1 November 2005
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Addendum slides
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Major shareholders*
Shares Ownership
1. Folketrygdfondet 18 703 100 10.5%
2. State Street Bank & Client Omnibus D 8 140 182 4.6%
3. Danske Bank A/S 3887 Operations Sec. 6 377 333 3.6%
4. Orkla ASA 5 089 800 2.9%
5. Morgan Stanley & Co. S/A Custrom Segrega 4 997 731 2.8%
6. Vital Forsikring ASA DnB NOR Kapitalforvaltning 3 948 689 2.2%
7. JP Morgan Chase Bank Clients Treaty Account 3 689 385 2.1%
8. Clearstream Banking CID Dept, Frankfurt 3 475 708 1.9%
9. VPF DNB NOR Norge 2 656 138 1.5%
10. SIS Segaintersettle 2 380 545 1.3%
SUB-TOTAL 59 458 611 33.3%
Other shareholders 119 027 948 66.7%
TOTAL (14 724 shareholders) 178 486 559 100.0%
Total foreign ownership 71 109 968 39.8%
*Registered 30 September 2005
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Shares & shareholders*
Number ofCountry Shares shareholders Ownership
1. Norway 107 376 591 13 893 60,2 %2. Great Britain 19 927 100 78 11,2 %3. USA 16 210 838 180 10,2 %4. Denmark 9 446 869 62 5,3 %5. Luxembourg 6 947 803 36 3,9 %6. Switzerland 5 419 332 22 3,0 %7. Sweden 3 528 834 116 2,0 %8. Belgium 1 465 121 12 0,8 %9. Germany 1 289 912 98 0,7 %10. Irland 982 550 17 0,6 %
Total 172 594 950 14 514 97,8 %
*Registered 30 September 2005