TOMRA creates sensor-based solutions for optimal resource productivity.

1. TOMRA
INVESTOR
PRESENTATION
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
2

3. Today, TOMRA creates sensor-based solutions for
optimal resource productivity – helping our customers
increase their financial results and reduce their
environmental impact
3

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 4

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)
5

6. “A TINY BLUE AND GREEN OASIS OF LIFE IN
A COLD UNIVERSE.” – DAVID SUZUKI

7. THE WORLD POPULATION AND STANDARD
OF LIVING IS INCREASING DRAMATICALLY

8. WORLD RESOURCES ARE UNDER
UNPRECEDENTED PRESSURE

9. RESOURCE PRODUCTIVITY MUST INCREASE
TO ENSURE SUSTAINABLE DEVELOPMENT

10. THE DAWN OF THE RESOURCE REVOLUTION
SOURCE: McKinsey
10

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.
11

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.
12

13. TOMRA IS TRANSFORMING HOW
WE OBTAIN OUR RESOURCES…

14. 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

15. TOMRA IS TRANSFORMING HOW
WE USE OUR RESOURCES…

16. 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

17. TOMRA IS TRANSFORMING HOW
WE REUSE OUR RESOURCES…

18. 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

19. TOMRA CREATES SENSOR-BASED SOLUTIONS FOR
OPTIMAL RESOURCE PRODUCTIVITY

20. Today we see more opportunities for optimal
resource productivity than ever before
20

21. WASTE INTO VALUE…

22. YIELD INTO USAGE…

23. SOURCE INTO RESOURCE…

24. PURPOSE INTO PROFITS…

25. PROFITS INTO PROGRESS…

26. 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
27

28. TOMRA IN SHORT

29. THE TOMRA TRANSFORMATION JOURNEY
2000 2004 2008 2012
FROM: TO:
5% 16%
40%
100%
95% 84% 60%
Collection Collection Collection
A house of Collection A branded
brands Sorting Sorting Sorting house
29

30. CREATING VALUE THROUGH TWO STRONG BUSINESS
AREAS
Sorting Solutions Two strong areas for value creation
A larger part of TOMRA
40%
60%
• Stable • High growth
• High margins • High margins
Collection Sorting • Low cyclicality • Medium cyclicality
High technology - sustainable business
Source: Rounded proforma figures after acquisition
30

31. TOMRA’S TWO BUSINESS AREAS*
TOMRA Collection Solutions TOMRA Sorting Solutions
Reverse Vending Machines Recycling
Key activities Sale and service of solutions for automated collection of used beverage High speed identifying, sorting and processing of information:
containers with deposit in retail stores material, shape, size, color, defect, damage and location of objects
Share of ‘11 sales ~46% ~11%
Employees 960 175
Customers Grocery retailers Material recovery facilities, scrap dealers, metal shredder operators
Market share ~65% ~50-60%
Compaction Mining
Key activities On of the world’s largest manufacturer The leading provider of sensor-based
of vertical balers sorting systems for the mining industry
Share of ‘11 sales ~4% ~3%
Employees 75 50
Customers Retail, manufacturing industry, restaurant, catering & hotel, warehouse & distribution Mining companies
Market share ~15-20% in active markets ~40-60%
Material Recovery Food
Key activities Pick-up, transportation and processing of used beverage containers and Optical sorting and processing
operation of a network of collection sites in USA solutions for food
Share of ‘11 sales ~13% Odenberg: ~7% (acquired in 2011) / BEST: ~16% (acquired in 2012)
Employees 400 Odenberg: 175 / BEST: 310
Customers Grocery retailers and beverage manufacturers Food growers, packers and processors
Market share ~60% in USA (markets served) ~25%
* Proforma 2011 as if BEST should have been part of TOMRA
31

32. TOMRA INSTALLED BASE
TOMRA Collection Solutions TOMRA Sorting Solutions
INSTALLED UNITS INSTALLED UNITS INSTALLED UNITS INSTALLED UNITS INSTALLED UNITS INSTALLED UNITS
Nordic ~15,000 Nordic ~16,000 Europe 1850 Europe 70 Europe ~1,150 Europe ~1,950
Germany ~23,000 UK ~17,000 Asia 220 US / Canada 35 US/Canada ~1,350 US/Canada ~1,050
Other Europe ~12,000 Other Europe ~26,000 US / Canada 500 Australia 20 Asia ~120 Asia/Oceania ~330
Japan ~500 Asia/Oceania ~4,000 Other 380 South Africa 45 Other ~100 South America ~120
North America ~15,000 North America ~4,000 Other 20 Middle East/ ~350
South America ~1000 Middle East/Africa ~500 Africa
TOTAL ~67,000 TOTAL ~67,500 TOTAL 2,950 TOTAL 190 TOTAL ~2,720 TOTAL ~3,800
32

33. USING THE POWER OF BUSINESS TO DO GOOD
EMPLOYEES ETHICAL BUSINESS BEHAVIOUR
• 81% of our employees say • Member of UN Global Compact
TOMRA is a “Great Place to since end 2009
Work”
• Implementing ethical
policies worldwide
ENVIRONMENT INCREASING CUSTOMER
VALUES
• We contribute to
avoided emissions of • Productivity
about ~10mill tons • Revenues
CO2 annually
• Quality
33

34. TOMRA IN DEPTH

35. TOMRA Collection Solutions
35

36. TOMRA REVERSE VENDING
– TRANSFORMING BEHAVIOR

37. THE USED BEVERAGE CONTAINER RECYCLING
VALUE CHAIN
Generic used beverage container (UBC) recycling value chain
RVM-based UBC recycling value chain
RVM SERVICE/ DATA ADMIN/ MATERIAL MATERIAL MATERIAL MATERIAL
TECHNOLOGY SUPPORT CLEARING PICK-UP PROCESSING BROKERAGE RECYCLING
37

38. RVM PRODUCT PORTFOLIO
38

39. RVM VALUE PROPOSITION
• RVMs reduce need for manual labour and will
typically have a payback period of 12-18
Reduced
costs months for medium sized stores
• Improved logistics and handling
• RVMs keep track of all deposit transactions –
in Germany alone the total transaction volume
Clearing of has an annual value in excess of ~4 bn EUR
deposits • RVMs have several fraud detection features to
prevent paying out deposit on non-eligible
containers
• RVMs make it convenient and easy for
High consumers to return their empty containers
consumer
convenience • RVMs are clean and efficient and ensure
correct redemption of containers
39

40. MARKET STRUCTURES AND BUSINESS MODELS
Mandatory • Non-refillables account for 75% of all containers sold and are popular due to
1 (non-refillable) simplified distribution/manufacturing and consumer marketing aspects
deposit markets • Some markets have MANDATORY deposit systems to ensure proper collection of
containers
• RVMs are used to make these systems more effective and efficient
Voluntary (refillable) • Refillable containers account for ~25% of all containers sold and have traditionally
2 deposit markets 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
Other incentive-based • In markets without deposit there might still be a need to organize collection of
3 markets empty containers, either to support overall recycling targets/ambitions or to
(non-deposit) 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
40

41. COMPETITIVE LANDSCAPE
Annual revenue
from RVM
>65,000
…
Number of installed RVMs
10,000-20,000
2,500-5,000
<2,500
1-5 6-10 11-20 21-30 >30
Number of RVM markets
Source: TOMRA estimates and analysis
41

42. TOMRA COLLECTION: OUR STRATEGY
1 Protect and defend • Cost leadership
existing business • Increased differentiation
Spur growth in • Accelerated machine replacement
2
existing markets • Incremental revenue streams on installed base
• New deposit markets
3 Succeed in new markets
• Viable non-deposit business models
42

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
43

44. RECENT TOMRA INNOVATIONS
T-820 Touch MultiPac SoftDrop MK3 Flake
Setting new standards in Taking uptime to new levels Enabling simpler store Boosting operational uptime
usability for operations and logistical efficiency
consumer, owner and
operator
TOMRAPlus DMR Doublefeed
A new management tool for Minimizing border fraud Customer-specific solution
proactive admin of your issues in Michigan enabling space-efficient
reverse vending systems operations
44

45. PRESENT AND PROSPECTIVE DEPOSIT SCHEMES
Canada Europe
Saskatchewan Norway Scotland
Manitoba Iceland Spain
Alberta Finland
Ontario Sweden
Northwest Territories Croatia Czech Republic
Nunavut Germany Montenegro
Yukon Denmark Serbia
Prince Edward Island Netherlands Lithuania
Nova Scotia Israel Latvia
New Brunswick Estonia
Newfoundland
Quebec
USA Australia
California Florida Northern Territory
Oregon Georgia South Australia
Conneticut North Carolina
New York Virginia General Australia
Massachusettes Kentucky
Vermont Missouri
Maine
Hawaii
Iowa
Michigan
States / provinces with a States / provinces in States / provinces in
running deposit system advanced discussion Initial discussions
45

46. TOMRA Sorting Solutions
46

47. STRONG REVENUE GROWTH SINCE INCEPTION IN 1996
• Total revenue growth (organic plus
Revenue development and key milestones Acquired 31st
of May 2012 inorganic) of ~35% per year from
EUR million 2004-11
— Organic growth for the same
period was ~22%
Ultrasort
acquired Odenberg • Technology base and
acquired
segment/application knowledge
expanded both through acquisitions
and in-house ventures
>120
CommoDas • Growth driven by:
acquired
− Price increases in
food, commodities & landfill costs
TITECH Real Vision TITECH
Visionsort AS Systems acquired by − Favorable changes in regulatory
established acquired TOMRA framework
(DSD, WEEE, ELV, etc)
QVision AS − Strong sales and service network
14.5
0.5 established
− Technology leadership
− Higher quality and food safety
1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
demands
47

48. 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
48

49. A COMMON SENSOR BASED TECHNOLOGY PORTFOLIO
Sensor/ Material Property Segment
[m] Technology
10-12 RM (Radiometric) Natural Gamma Radiation Mining
Gamma-
10-11
radiation
10-10 XRT (X-ray transmission) Atomic Density Recycling, Mining, Food
Low Energy X-ray
X-ray 10-9
10-8 XRF X ray fluorescence (Elemental Recycling, Mining
Ultraviolett (UV) 10-7 Spectroscopy)
10-6 COLOR (CCD Color Camera) Reflection, Absorption, Recycling, Mining, Food
Visible light (VIS)
10-5 Transmission
10-4
Near Infrared (NIR) Laser attenuation and Monochromatic Reflection Mining, Food
10-3 PM (Photometric) /Absorption of Laser Light
Infrarot (IR)
10-2 Scattering analysis of Laser Light
Microwaves 10-1 NIR / MIR (Near/Medium Reflection, Absorption Recycling, Mining, Food
Infrared Spectrometry) (Molecular Spectroscopy)
101
LIBS Laser induced breakdown Recycling, Mining
Radio waves 102 spectroscopy
103
Alternating current EM (Electro- Conductivity, Recycling, Mining, Food
104
(AC) Magnetic sensor) permeability
49

50. CUTTING-EDGE TECHNOLOGY DRIVEN BY
SIGNIFICANT INVESTMENTS IN R&D
SENSOR PORTFOLIO
• In-house R & D department with more
than 305 people
Electromagnetic Sensor (EM) Radiometry (RM)
Material property detected: Material property detected: • Partnership with leading R&D
electromagnetic properties like radioactivity
conductivity and permeability
institutions: SINTEF, CTR, Fraunhofer
ILT; universities like RWTH and Brussels
CCD Color Camera (COLOR) IR Camera (IR) • 8% of revenue invested in R&D
Material property detected: heat
Material property detected:
color properties in the color are conductivity and heat dissipation • 15 test centers worldwide
as red, green and blue
X-ray Transmission (XRT) X-ray Fluorescence (XRF)
Material property detected: specific Material Property detected:
atomic density irrespective of size, elemental composition
moisture or pollution level
Visible Light Spectrometry (VIS) Near-Infrared Spectrometry (NIR)
Material property detected: visible Material property detected: specific and
spectrum for transparent and opaque unique spectral properties of reflected
materials light in the near-infrared spectrum
Laser Infrared Transmission (IRT)
Material property detected: Material property detected:
scattering of laser light light absorption
Test center in Koblenz, Germany
50

51. WHY SENSOR-BASED SORTING?
• Increase purity of • Increaserecovery of • Increase yield
INCREASE sellable materials valuable metals, minerals,
• Increase throughput
REVENUES • Increase recovery rate diamonds and gems from
ores
• Increase capacity
• New technology give access
to old dumps
REDUCE • Reduce labor • Reduce
energy • Reduce labor
COSTS requirements consumption requirements
• Lower operating and • Reduce water consumption • Lower operating and
service costs • Less wear and tear service costs
• Less rocks needs crushing • Reduce waste
OTHER • Consistentquality of • Less environmental impact • Food safety
BENEFITS output streams • Reduce carbon footprint • Increased and consistent
• Increaseflexibility of • Easier permitting quality and safety
production line • Increased flexibility of
• Monitor material production line
composition • Production reporting and
analysis
51
a part of TOMRA

52. ADOPTION OF SENSOR-BASED SORTING AT DIFFERENT
MATURITY LEVELS
Maturity/
industry
adoption
FOOD
RECYCLING
MINING*
Time
* In certain mining sub-segments, such as industrial minerals and diamonds, sensor-based sorting is a more mature technology.
52

53. MARKET SIZE AND POTENTIAL
Total annual market size for different sensor-based sorting segments
EUR million
~850-900
~500-550 Food
650
Mining
Metal
400 Waste
60
20 70
40 90
50
2010 2015
Source: TOMRA estimates and analysis
53

54. TOMRA SORTING: OUR STRATEGY
• Aggressively target promising regions and markets
1 Expand geographically
• Leverage market presence across entire portfolio
• Continue to invest heavily in R&D
2 Maintain technology
leadership position • Bring new and enabling technology to the market
• Further develop web of partners
• Utilize our market leader position to maximize economies of
scale effect
3 Cost leadership
• Effective sourcing in combination with product friendly R&D
M&A to consolidate market • New verticals/business streams in sensor-based sorting
4 and enter new business • Increase footprint and scale through consolidation
streams • *Now added through latest acquisition of BEST*
54

55. TOMRA SORTING FOOD –
SECURING QUALITY, EFFICIENCY, AND PRODUCTIVITY

56. AFTER ACQUIRING BEST TOMRA HAS A BROAD
FOOTPRINT WITHIN THE FOOD SORTING UNIVERSE
#1 #1
SK NDF PFV FV FF Other
Seeds & Nuts & Processed Fresh Fresh Fruits Confectionary,
Kernels Dried Fruit Fruits & Veg Vegetables etc.
Circa 40%* of annual Circa 30%* of annual Circa 25%* of Circa 5%* of
global sorter sales global sorter sales annual global annual global
revenue revenue sorter sales sorter sales
revenue revenue
* TOMRA estimates
56

57. FOOD: APPLICATIONS AND SENSOR TECHNOLOGY
POTATO FRUIT VEGETABLE MEAT/SEAFOOD
FOOD • Whole • Tomato • Beet • Beef
• Field • Citrus • Corn • Pork
• Seed • Dried fruits • Carrot • Seafood
• Table/ware • Nuts • Green bean
• Sweet • Peach & pear • Jalapenos/
• Processed Pepper
• Peeled • Onion
• Pickles
• Cucumbers
SENSOR NIR NIR NIR NIR
TECHNOLOGY VIS VIS VIS VIS
DRIED FRUIT NUTS FRESH CUT FRUIT VEGETABLES POTATO SEAFOOD
FOOD • Apricots • Almonds • Iceberg • Apples • Peas • Chips • Scallops
• Raisins • Cashews • Mixed salad • Apricots • Beans • Flakes • Mussels
• Figs • Hazelnuts • Leaves • Blackberries • Broccoli • French fries • Shrimp
• Prunes • Macademias • Spinach • Blueberries • Carrots
• Craisins • Peanuts • Spring Mix • Cherries • Corn
• Pecans • Cranberries • Garlic
• Pistachios • Pineapple • Mixed vegetables
• Seeds • Raspberries
• Walnuts • Strawberries
SENSOR LASER LASER LASER LASER CAMERA LASER LASER
CAMERA
TECHNOLOGY X-RAY X-RAY CAMERA CAMERA LASER / FLUO CAMERA
X-RAY
57

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
58

59. FROM FARM TO FORK
PROVIDING SOLUTIONS THROUGHOUT THE VALUE CHAIN
59

60. VALUE PROPOSITION
• Up to 100% reduction on manual labor alternative
Operational
• Productivity Increase ~ 20%
Efficiency
• In many cases sorting cannot be completed manually due
Reduces to product size or defect types
Costs
• Yield improvement > 1.5%
• Protects customers reputations. Automated control
Assured helps protect against ‘undesirables’ or ‘harmful’ items
Consumer entering the food chain. Mitigates against the ‘cost’ and
Food Quality damage of failure, recalls, etc
& Safety • 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
Increases • Easy to achieve customer requirements regardless of
Revenue 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.
60

61. FOOD: SORTING MARKET SIZE AND POTENTIAL*
Total annual market size
EUR million 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
650-750 • Food supply constraints calls for optimal resources
productivity
500 • 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
2012 2017 − Traceability Requirements
Source: TOMRA estimates and analysis
* Updated after BEST acqusition
61

62. STRENGTHENING OF MARKET POSITIONING AFTER
ACQUISITION OF BEST
Size and presence – Before BEST Size and presence – New positioning
>3,000 >3,500
# of installed machines
# of installed machines
1,000- 1,000-
3,500 3,500
0-1,000 0-1,000
10-25 25-50 >50 10-25 25-50 >50
markets markets markets markets markets markets
Geographic presence Geographic presence
Revenue from
sensor-based sorting
Source: TOMRA estimates and analysis
62

63. TOMRA SORTING RECYCLING -
TRANSFORMING EFFICIENCY AND QUALITY

64. RECYCLING: APPLICATIONS AND SENSOR TECHNOLOGY
HOUSEHOLD AUTOMOBILE ELECTRONIC
WASTE PACKAGING C&D SHREDDER SCRAP
MATERIAL • Hard plastics • Plastics • Inert material • NF metal • Printed circuit
• Plastic film • Plastic film • Plastic film • Stainless steel boards
• Mixed paper • Cardboard • Metals • Copper cables • Non-ferrous metal
concentrates
• RDF • Mixed paper • Wood • Copper
• Metals • Deinking paper • Paper & • Brass • Cables
• Organics/ • Metal Cardboard • Aluminum • Copper
Biomass • Plastics • Meatball sorting • Brass
• Stainless steel
• Meatball sorting
SENSOR NIR NIR NIR NIR XRT
TECHNOLOGY VIS VIS VIS VIS EM
XRT EM XRT XRT NIR
EM EM COLOR
COLOR XRF
XRF
Mixed paper PE/PP flakes Cleaned wood Copper Wire Brass
64

65. AUTOMATED WITH TOMRA SORTING UNITS
NIR for packaging waste Baler
Focus on the PET stream,
PP Mixed Paper cleaning
PE Colored
PE Natural ONP Cleaning
PET
Manual sorting for oversize materials
Sorting of Municipal Solid Waste, Cyprus
ONP Double
Packaging
Deck Screen
Ballistics
(removing films)
Input
65

66. RECYCLING: VALUE PROPOSITION
• Reduces manual labor by up to 75 %
• Low operating and maintenance costs and
Reduces reduced space requirements
costs
• Avoids high turnover of personnel
• High precision
Increases • Easy to adapt to changing needs and sorting
revenues tasks
• High volume sorting
Ensures
consistent, s • Machines enables longer hour operations
table and • Reduced accidents and less strain on staff
fast
operations • Constant quality and performance
• Some sorting tasks impossible/difficult for
manual sorters
66

67. RECYCLING: SORTING MARKET SIZE AND POTENTIAL
Total annual market size
EUR million Growth potential
160 • Market expected to grow at an annual
rate of 10-15% overall
• TITECH expects to maintain its overall
70 market share
90 Drivers
• Increased demand for raw material
40 • Higher labor costs
• Higher commodity prices
90
• Legislation (landfills, ELV, WEEE etc.)
50 • Adoption of technology in new markets
(Asia, Latin America, Eastern Europe)
• New applications such as flake sorting
2010 2015
Waste Metal
Source: TOMRA estimates and analysis
67

68. RECYCLING COMPETITIVE LANDSCAPE
Waste recycling Metal recycling
High
High
Cost advantage
Cost advantage
Low
Low
Low High Low High
Technological advantage Technological advantage
Source: TOMRA analysis
68

69. TOMRA SORTING MINING
– FINDING MINDFUL SOLUTIONS

70. MINING: APPLICATIONS AND SENSOR TECHNOLOGY
INDUSTRIAL BASE & FUEL/ PRECIOUS DIAMONDS
MINERALS Fe METALS ENERGY METALS & GEMS METAL SLAG
COMMODITY • Calcite •Copper • Coal • Gold • Diamonds • Stainless steel
• Quarts • Zinc • Uranium • Platinum • Tanzanite • Copper
• Feldspar • Nickel • Colored • Chrome
• Magnesite • Tungsten gemstones
• Talcum • Iron
• Dolomite • Manganese
• Salt • Chromite
SENSOR COLOR XRT XRT XRT COLOR XRT
TECHNOLOGY XRT COLOR RM COLOR XRT XRF
NIR EM XRF XRF EM
XRF NIR NIR NIR
Calcite Copper Coal Gold Diamonds Ferro Silica Slag
70

71. THE CONCEPT OF SENSOR-BASED SORTING IN MINING
Run of Mine
Primary Crushing
Sensor Based Sorting
Beneficiation Plant
Milling
Screening
DMS
Flotation Facts (estimated)
• 15% to 50% of the ROM can be rejected in an
Tailings (fines) early stage of the process (application dependent)
• These low grade waste rocks don’t need to be
crushed, grinded and further treated
Product
71

72. MINING: VALUE PROPOSITION
• Lower head grade can be processed
Increased
access to • Better utilization of existing deposits
resources • Old dumps turn into resources
• Significant capacity increase of the
traditional beneficiation plant
Cost savings
• Energy costs savings
• Less wear and tear and chemicals costs
Environ- • Better carbon footprint
mental • Reduction of acid mine drainage
benefits
• Less pollution
72

73. MINING: SORTING 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
60 Drivers
• Increasing demand for commodities
from emerging markets
• Increased pressure on costs but
20 high/increasing energy and water
costs
2010 2015
Source: TOMRA estimates and analysis
73

74. MINING COMPETITIVE LANDSCAPE
High
Cost advantage
Low
Low High
Technological advantage
Source: TOMRA analysis
74

75. Financial performance and targets
75

76. KEY FINANCIALS DEVELOPMENT
Revenues Gross Contribution and margin
4,000 1,800 46%
3,500 1,600 44%
3,000 1,400 42%
1,200
2,500 40%
NOKm
NOKm
1,000
2,000 38%
800
1,500 36%
600
1,000 400 34%
500 200 32%
0 0 30%
2007 2008 2009 2010 2011 2007 2008 2009 2010 2011
EBITA and margin Earnings per share
800 20% 3.0
700
18% 2.5
600
NOK per share
2.0
500 16%
NOKm
400 1.5
300 14%
1.0
200
12% 0.5
100
0 10% 0.0
2007 2008 2009 2010 2011 2007 2008 2009 2010 2011
76

77. FINANCIAL HIGHLIGHTS
BALANCE SHEET, CASH FLOW AND CAPITAL STRUCTURE
30 Sept 30 Sept 31 Dec Ordinary cashflow from operations
Amounts in NOK million 2012 2011 2011
• 181 MNOK in 3Q 2012 versus 299
ASSETS 5,346 4,138 3,999 MNOK in 3Q 2011
• Intangible non-current assets 2,328 1,405 1,391
Cashflow from investments
• Tangible non-current assets 551 567 527
• Minus 939 MNOK, of which
• Financial non-current assets 272 286 264 893 MNOK relates to the
• Inventory 826 639 627
acquisition of BEST.
• Receivables 1,273 1,122 1,012
Solidity
• Cash and cash equivalents 96 119 178
• 42% equity
LIABILITIES AND EQUITY 5,346 4,138 3,999 • NIBD/EBITDA = 1.9 (Rolling 12
months)
• Equity 2,142 2,030 2,141
• Minority interest 78 80 76
BEST Kwadraat NV
• Interest bearing liabilities 1,641 782 741 • Fully consolidated from 2 July 2012
• Non-interest bearing liabilities 1,485 1,246 1,041
77

78. FINANCING
Utilized 1641 MNOK
2000
1800 50 Committed and uncommitted credit lines
50
1600
Eksportfinans (A) DNB (B) DNB/SEB (C)
1400 750 C Type 3 year term loan 5 year revolving 3 year revolving credit
Interest bearing debt
credit facility facility
1200
Established July 2011 January 2011 July 2012
1000 Expire July 2014 January 2016 July 2015
Amount NOK 500 million NOK 500 million EUR 100 million
800 (~NOK 750 million)
500 B
Repayment Bullet Bullet Bullet
600
Interest Floating, 3m Floating, 1-12 m Floating, 1-9 m
400 Margin 52 bps above NIBOR 60 - 90 bps above 110 – 165 above
NIBOR/EURIBOR EURIBOR
500 A Pledge Negative Negative Negative
200
Covenants 30% Equity 30% Equity 30% Equity
0
78

79. CURRENCY EXPOSURE
Revenues and expenses per currency; NOTE: Rounded figures
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 %
* EUR includes DKK
10% change in NOK towards other currencies will impact;
Revenues Expenses EBITA
EUR* 5.0% 4.5% 8.0% HEDGING POLICY
• TOMRA hedges B/S items that will have
USD 3.0% 2.5% 6.0%
P/L impact on currency fluctuations
SEK 1.0% 1.0% 1.0% • TOMRA can hedge up to one year of
future predicted cash flows. Gains and
OTHER 0.5% 0.5% 0.5%
losses on these hedges are recorded in
ALL 9.5% 8.5% 15.5% the finance line, not influencing EBITA
* EUR includes DKK
79

80. COLLECTION SOLUTIONS –
SEGMENT FINANCIALS
Revenue development Gross and EBITA margin development
NOK million Percent
3000 50
45 41 42 41
2500 38 39
40
35
2000
30
1500 25
19
20 16 16
1000 13 13
15
10
500
5
0 0
2007 2008 2009 2010 2011 2007 2008 2009 2010 2011
Q1 Q2 Q3 Q4 Full year GM EBITA
80

81. COLLECTION SOLUTIONS –
FINANCIAL DASHBOARD
Material Material
RVM Orwak RVM Orwak
Recovery Recovery
Dashboard
Industry growth
Market share
0-5% 0-3% 3-5% 65% 80% 25%
Geographical
Recurring
diversity
revenue
~75% 90-100% 25% 20-30 markets 10 markets 30 markets
Profitability
Cyclicality
(ROCE)
~35% ~15% 10-15% Low Low Medium
TARGETS 2010 -2015
Yearly growth 4 – 8%
40% reduced COGS on new RVM machines from 2010 to 2015
EBITA-margin 17%-22%
81

82. SORTING SOLUTIONS –
SEGMENT FINANCIALS
Revenue development Gross and EBITA margin development
NOK million Percent
1000 70 64 62 62
900 58
60 54
800
700 50
600 40
500 28
30 26
400 22
300 17 18
20
200
10
100
0 0
2007 2008 2009 2010 2011 2007 2008 2009 2010 2011
Q1 Q2 Q3 Q4 Full year GM EBITA
82

83. FINANCIAL DASHBOARD –
SORTING SOLUTIONS
Dashboard Recycling Mining Food
Industry
Market share
Growth
10-15%
50-60 % 40-60 % 25%
Recurring
Geographical
revenue
diversity
10-15%
40-50 markets 20-30 markets 45-50 markets
Profitability (ROCE)
30-40% Cyclicality High High Medium
TARGETS 2010 -2015
Yearly organic growth 10-15%
Geographical expansion
EBITA-margin 18-23%
83

84. 84
3Q12
2Q12
1Q12
4Q11
3Q11
2Q11
1Q11
4Q10
3Q10
2Q10
1Q10
4Q09
3Q09
2Q09
1Q09
ORDER BACKLOG DEVELOPMENT
4Q08
3Q08
Tomra Sorting
2Q08
1Q08
4Q07
3Q07
2Q07
1Q07
4Q06
3Q06
2Q06
1Q06
4Q05
3Q05
2Q05
1Q05
4Q04
3Q04
2Q04
1Q04
600
500
400
300
200
100
0
NOK million

85. Appendices
85

86. TOMRA MATERIAL RECOVERY
– TRANSFORMING EFFICIENCY

87. TOMRA’S INTEGRATED VALUE CHAIN IN NORTH
AMERICA
RVM SERVICE/ DATA ADMIN./ MATERIAL MATERIAL MATERIAL
TECHNOLOGY SUPPORT CLEARING HOUSE PICK-UP PROCESSING BROKERAGE
RVM BUSINESS MATERIAL RECOVERY BUSINESS
In the US, offering an integrated solution to the
customer is required in order to sell RVM technology
87

88. MID-WEST, EAST COAST & QUEBEC OPERATIONS
In addition to RVM sales/service, TOMRA is • ~560 MNOK in revenues in
also involved in: 2011
• Own transportation network
• Logistics management: in some states, outsourced
Pick-up and transportation to 3rd parties in other states
of collected containers
• Processing of UBCs in own
• Material processing: facilities plus outsourced
Sorting, cleaning, shredding/flaking/ facilities
crushing and baling materials into
recyclable fractions • Annual volumes processed
(pounds):
• Material marketing/trading: Sale and
– Alu 130+ mill.
trading of processed materials on behalf of
– Glass 500+ mill.
industry,
– Plastic 130+ mill
which owns the collected materials
Bottlers pay a fee to TOMRA linked
to volume of containers picked-up, processed
and marketed
88

89. TOMRA COMPACTION
– SMALL SPACES CREATE BIG SOLUTIONS

90. VALUE CHAIN IN THE BUSINESS STREAM COMPACTION
SORTING AND PICK-UP: TO RECYCLING MATERIAL
COMPACTION BALES AND STATION OR RECYCLING
AT SOURCE BRIQUETTES RECYCLING PLANT
90

91. COMPACTION: THE CONCEPT
91

92. MARKET SEGMENTS
The four main market segments: Revenue breakdown on customer segments:
Public Fast
inst. food, service, ot
her
FOOD RETAIL NON-FOOD RETAIL Waste International
6
Management 3 food retailers
8 28
25
Industry
13 Regional food
retailers
MANUFACTURING HOTELS AND 17
INDUSTRY RESTAURANTS
Non-food
retailers
92

93. TOMRA - taking a bigger role in the
resource revolution
93

94. DISCLAIMER
Copyright
The 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
Disclaimer
This 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
94