DNB SMALL AND MID CAP SEMINAR

Transcription

1 DNB SMALL AND MID CAP SEMINAR Deputy CEO / CFO, Espen Gundersen 8 April 2014

2 THE WORLD POPULATION AND STANDARD OF LIVING IS INCREASING DRAMATICALLY

3 WORLD RESOURCES ARE UNDER UNPRECEDENTED PRESSURE

4 RESOURCE PRODUCTIVITY MUST INCREASE TO ENSURE SUSTAINABLE DEVELOPMENT

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6 THE TOMRA TRANSFORMATION JOURNEY FROM: TO: 100% 5 % 95 % 16 % 84 % 40 % 60 % A house of brands Collection Collection Sorting Collection Sorting Collection Sorting A branded house 6

7 A MARKET LEADER IN ALL ACTIVE MARKETS 60 % 40 % REVERSE VENDING MATERIAL RECOVERY COMPACTION FOOD RECYCLING MINING Market share: ~75% Market share: ~60% Market share: ~15-20% Market share: ~40-50% * Market share: ~55-65% Market share: ~40-50% * In total food (incl. rice and lane sorting): 12-15% 7

8 CREATING VALUE THROUGH TWO STRONG BUSINESS AREAS Two strong areas for value creation ~40% ~60% Collection Sorting Stable High margins Low cyclicality High growth High margins Medium cyclicality High technology - sustainable business Source: 2013 FY financials 8

9 TOMRA Collection Solutions 9

10 ENSURE SUFFICIENT DIFFERENTIATION BY DELIVERING ON PRODUCT ROADMAP AMBITIONS

11 # of installed RVS COMPETITIVE LANDSCAPE >70,000 10,000-70,000 5,000-10, ,000 <500 KANSMACKER, MAX COMPACTION, RVM TECH, DIGI, INCOM, ECO POINT >30 Annual revenue from RVS sales Number of RVS markets Source: TOMRA estimates and analysis ESTIMATES 11

12 Price (EUR) ENTER NEW SEGMENTS >200,000 Depot segment opportunity 50, ,000 TOMRA s current sweet spot 10,000-50,000 3,000-5,000 Small stores Discounters/Supermarkets Hypermarkets, C&C RCs, small depots etc. Large depots, counting centers M UBC/year M UBC/year 1-3 M UBC/year 3-5 M UBC/year 5-15 M UBC/year M UBC/year Container volume 12

13 CREATE NEW REVENUE STREAMS FROM SW/IT TOMRAPlus TOMRA ReACT Integrating hardware and software into attractive and engaging combos 13

14 NEW DEPOSIT MARKETS Pilot machines at Whitmuir Farm and Heriot-Watt University North America: Annual opportunities for new bottle bills, e.g. in Minnesota Scotland: Potential for ~2,000 machines from 2016 and onwards Eastern Europe: Potential for ~2,000 machines in Latvia and Lithuania from 2015 /2016 and onwards Spain: Potential for 15,000+ machines from 2015 and onwards Australia Potential for ~5,000+ machines from 2014 and onwards Pilot machine in Cadaques, Cataluña Commercial installation in Northern Territory 14

15 TOMRA Sorting Solutions 15

16 STRONG REVENUE GROWTH SINCE INCEPTION IN 1996 Revenue development and key milestones EURm Ultrasort acquired Odenberg acquired BEST acquired 227* Total revenue growth (organic plus inorganic) of ~37% per year from Organic growth for the same period was ~21% TITECH Visionsort AS established Real Vision Systems acquired CommoDas acquired TITECH acquired by TOMRA Technology base and segment/application knowledge expanded both through acquisitions and inhouse ventures QVision AS established * Includes BEST proforma for 2012 and excluding Chilling and Freezing unit divested Q

17 HOW DOES SENSOR BASED SEPARATION WORK? High-tech sensors to identify objects High speed processing of information (material, shape, size, color, defect, damage and location of objects) Precise sorting by air jets or mechanical fingers Product specific equipment design often including multiple technologies to maximize sorting efficiency Food larger products Food smaller products Recycling Feeding of materials Sensor Separation chamber Mining 17

18 A COMMON SENSOR BASED TECHNOLOGY PORTFOLIO Gammaradiation X-ray Ultraviolett (UV) Visible light (VIS) Near Infrared (NIR) Infrarot (IR) Microwaves Radio waves Alternating current (AC) [m] Sensor/ Technology Material Property Segment RM (Radiometric) Natural Gamma Radiation Mining XRT (X-ray transmission) Low Energy X-ray XRF COLOR (CCD Color Camera) Laser attenuation and PM (Photometric) NIR / MIR (Near/Medium Infrared Spectrometry) LIBS EM (Electro- Magnetic sensor) Atomic Density X ray fluorescence (Elemental Spectroscopy) Reflection, Absorption, Transmission Monochromatic Reflection /Absorption of Laser Light Scattering analysis of Laser Light Reflection, Absorption (Molecular Spectroscopy) Laser induced breakdown spectroscopy Conductivity, permeability Recycling, Mining, Food Recycling, Mining Recycling, Mining, Food Mining, Food Recycling, Mining, Food Recycling, Mining Recycling, Mining, Food 18

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20 AUTOMATED WITH TOMRA SORTING UNITS NIR for packaging waste Baler Focus on the PET stream PE Natural PE Colored PP Mixed Paper cleaning ONP Cleaning PET Manual sorting for oversize materials Sorting of Municipal Solid Waste, Cyprus Packaging ONP Double Deck Screen Ballistics (removing films) Input 20

21 RECYCLING: APPLICATIONS AND SENSOR TECHNOLOGY HOUSEHOLD WASTE PACKAGING C & D AUTOMOBILE SHREDDER ELECTRONIC SCRAP MATERIAL Hard plastics Plastic film Mixed paper RDF Metals Organics/ Biomass Plastics Plastic film Cardboard Mixed paper Deinking paper Metal 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 metal concentrates Cables Copper Brass Stainless steel Meatball sorting SENSOR TECHNOLOGY NIR VIS XRT NIR VIS EM NIR VIS XRT EM NIR VIS XRT EM COLOR XRF XRT EM NIR COLOR XRF Mixed paper PE/PP flakes Cleaned wood Copper Wire Brass 21

22 # of installed machines RECYCLING COMPETITIVE LANDSCAPE >3,000 1,000-3, ,000 TOMRA competitive positioning Largest installed base Highest revenues Broadest technology platform Highest number of applications and markets served Leading brand Market share: 55-65% markets markets >50 markets Revenue from sensorbased sorting Geographic presence Source: TOMRA estimates and analysis 22

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24 OUR BROAD COVERAGE AND TECHNOLOGY BASE IS SETTING US APART DRIED FRUIT NUTS FRESH CUT FRUIT VEGETABLES MEAT POTATOES SEAFOOD FOOD SENSOR TECHNOLOGY Apricots Craisins Figs Prunes Raisins LASER NIR VIS X-RAY Almonds Cashews Hazelnuts Macadamias Peanuts Pecans Pistachios Seeds Walnuts LASER CAMERA X-RAY Baby leaves Iceberg lettuce Spinach Spring mix LASER CAMERA Apples Blackberries Blueberries Cherries Citrus Cranberries Peaches & pears Raspberries Strawberries Tomatoes LASER CAMERA NIR VIS Beans Beet Broccoli Carrots Corn Cucumbers IQF vegetables Jalapenos/ Peppers Onions Peas Pickles LASER CAMERA NIR VIS Bacon bits Beef IQF meat Pork Pork rind LASER CAMERA NIR Washed French fries Unpeeled Peeled Potato chips Specialty products Sweet LASER CAMERA NIR VIS Mussels Scallops Shrimps LASER CAMERA NIR VIS X-RAY 24

25 TOMRA HAS THE BROADEST FOOTPRINT WITHIN THE FOOD SORTING UNIVERSE Free fall Belt Lane SK Rice, Seeds & Kernels NDF Nuts & Dried Fruit PFV Processed Fruits & Veg FV Fresh Vegetables FF Fresh Fruits Other Confectionary, etc. Circa 40%* of annual global sorter sales revenue Circa 30%* of annual global sorter sales revenue Circa 25%* of annual global sorter sales revenue Circa 5%* of annual global sorter sales revenue * TOMRA estimates 25

26 # of installed machines FOOD COMPETITIVE LANDSCAPE >3,000 1,000-3, ,000 TOMRA competitive positioning Size (revenues) Widest range of applications (150+) Broadest technology base Geographic reach (~80 countries) Market share in targeted segments Transformative solutions (Q-Vision) Market share: 40-50% in markets served* Revenue from sensorbased sorting markets markets Geographic presence >50 markets Source: TOMRA estimates and analysis * Total Food sorting (also including rice and lane sorting): 12-15% 26

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28 THE CONCEPT OF SENSOR-BASED SORTING IN MINING Mining process: Industrial minerals Mining process: Metal mining Run of Mine (ROM) Run of Mine (ROM) Primary Crushing Primary Crushing Secondary Crushing Sensor Based Sorting Sensor Based Sorting Product Waste 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 transported, crushed, grinded or further treated Beneficiation Plant: Milling Screening DMS Flotation Product Waste Tailings (fines) Current segment Potential new segment 28

29 MINING: APPLICATIONS AND SENSOR TECHNOLOGY INDUSTRIAL MINERALS BASE & Fe METALS FUEL/ ENERGY PRECIOUS METALS DIAMONDS & GEMS METAL SLAG COMMODITY Calcite Quarts Feldspar Magnesite Talcum Dolomite Salt Copper Zinc Nickel Tungsten Iron Manganese Chromite Coal Uranium Gold Platinum Diamonds Tanzanite Colored gemstones Stainless steel Copper Chrome SENSOR TECHNOLOGY COLOR XRT NIR XRF XRT COLOR EM NIR XRT RM XRT COLOR XRF NIR COLOR XRT XRF NIR XRT XRF EM Calcite Copper Coal Gold Diamonds Ferro Silica Slag 29

30 # of installed machines MINING COMPETITIVE LANDSCAPE > TOMRA competitive positioning Wide geographical coverage Broadest technology platform Leading brand Pioneering in developing high volume sorter in corporation with Rio Tinto Market share: 40-50% markets markets >50 markets Revenue from sensorbased sorting Geographic presence Source: TOMRA estimates and analysis 30

31 ADOPTION OF SENSOR-BASED SORTING AT DIFFERENT MATURITY LEVELS Maturity/ industry adoption FOOD RECYCLING MINING* * In certain mining sub-segments, such as industrial minerals and diamonds, sensor-based sorting is a more mature technology. Time 31

32 MARKET SIZE AND POTENTIAL Total annual market size EUR million ~910 ~1 320 Market growth Market expected to grow at rate of around 7-9% per year A large part of growth from unlocking of dormant potential only possible by developing new applications and technologies Some growth in old world, but faster growth in new world Food Expected development in geographical revenue contribution Mining Recycling 34 % 38 % % % 39 % Source: TOMRA estimates and analysis * Market size for food includes peeling, meat/process analytics, virgin materials and tobacco. 27 % ROW US EUR 32

33 AMBITIOUS TARGETS FOR GROWTH AND POSITIONING Collection Solutions Sorting Solutions 1 Growth Overall revenue growth of 4-8% Overall revenue growth of 10-15% 2 Profitability EBITA margins : 17-22% EBITA margins: 18-23% 3 Technology Product roadmap to ensure competitiveness Capture new revenue streams Product roadmap with several breakthrough developments Common sorting platform 4 Operations Continue COGS cutting program Ambitious COGS savings program Production and increased sourcing in China and other low cost countries 5 M&A Current focus on integration No larger M&A expected in the short term 33

34 Q&A