fourth quarter 2008 - cisionmb.cision.com/public/4659/9326719/84d3e2e6b1d2d718.pdf · year on year...
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2
Financial Highlights – Profit and loss statement
Figures in NOK million 4Q 2008 4Q 2007 YTD 2008 YTD 2007
Revenues 1076 948 3622 3490
• Collection Technology, Deposit Solutions 524 503 1725 1731
• Material Handling 310 245 1010 1064
• Industrial Processing Technology 213 190 793 647
• Collection Technology, Non-Deposit Solutions
29 10 94 48
Gross contribution
Gross margin
380
35%
352
37%
1376
38%
1282
37%
Operating expenses 244 221 920* 837
Operating profit
Operating margin
136
13%
131
14%
456
13%
445
13%
* Includes restructuring charges of 22 MNOK in 3Q08
Year on year growth – adjusted for currency and restructuring charges
• Revenues
• Operating profit
(4%)
(18%)
4%
8%
3
3
Financial highlights - Balance sheet, cash flowand capital structure
• Cashflow from operations
• 255 MNOK in 4Q 2008 versus 313 MNOK in 4Q 2007
• Cash flow from finance
• 23 MNOK spent on share buy-backs in 4Q 2008
• Hedging of € 70M at 9.86 as of end 2008
• Strong financial position
• >50% equity and increased from 2008
• Current holding of treasury shares of 5.0 million
• Balance sheet
• Acquisition of Ultrasort results in goodwill/intangibles of 150 MNOK
• Weaker NOK at balancesheet date gives increased NOK value of balancesheet items
• 31.12.07 => 31.12.08
• € +24% $ +29%
Figures in NOK million 31 Dec 2008
31 Dec 2007
ASSETS 3594 2952
• Intangible assets 942 702
• Leasing equipment 111 80
• Other fixed assets 703 566
• Inventory 624 529
• Short-term receivables 1100 885
• Cash and cash equivalents 114 190
LIABILITIES AND EQUITY 3594 2952
• Equity 2019 1624
• Interestbearing liabilities 591 417
• Non-interestbearing liabilities 984 911
5
5
Collection Technology - Deposit Solutions Financials
Figures in NOK million 4Q 2008 4Q 2007 YTD 2008 YTD 2007
Revenues 524 503 1725 1731
• Nordic 158 206 601 611
• Central Europe & UK 280 221 834 792
• US East/Canada 86 76 289 326
• Rest of the world - - 1 2
Gross contribution in %
222
42%
209
42%
773
45%
754
44%
Operating expenses 117 107 451* 409
Operating profit
in %
105
20%
102
20%
322
19%
345
20%
* Including 15 MNOK in one-off restructuring charges in 3Q08
6
Highlights Collection Technology - Deposit
• Installed ≈5.000 machines, of which ≈700 UNO
• Stable prices and improved gross margin (44% 45%)
• Maintained strong market position
• T-820 with camera crate technology being launched in key markets
• Breakthrough in gas station segment for UNO (Shell to install 1.000)
• Orders valued 100 MNOK from Danish/Swedish customers received in January/February 2009
Overall
Service & maintenance
• Represent about 47% of total business area revenue
• Nordic service organization with common IT platform in place
• Increased penetration level of annual service contracts
• Contractual cleaning towards business as usual
• Compactor recurring business growing towards 70 MNOK yearly
• Product enhancements addressing service efficiency
7
Highlights Collection Technology - Deposit
• Donation decided and being implemented on >6.000 machines
• Donation becomes standard in most markets
• Lottery under implementation on 800 machines in Norway
• Electronic receipt becomes business as usual
Added value services
Legislation
• Increased activity, but low visibility on probability & time frame
• Potential candidates in a 3 year perspective
Australia
Eastern Europe, Latvia first to come
States in the US, NY water bottle highest probability
• Deposit good for the environment and a source for US state funding
8
Germany – our largest market
TOMRA install base of 18.400 RVMs will move towards 23-25.000
Recurring yearly service revenue >35 M€ already in 2009
Strong dynamics in food retails, give >1.500 machines annually
80% of installations with compactors
Large untapped potential for added value services
Netto/Norma one off volumes on top in 2009-2010
Kaufland successfully piloted and installed large/complex solution
UNO breakthrough in gas station market
Yearly revenues towards 100 M€
9
Collection Technology - Deposit
Outlook 2009
Currently no impact from financial downturn
and current order book and assessment of
activities could indicate improved performance
versus 2008
11
11
Materials Handling – Financials
Figures in NOK million 4Q 2008 4Q 2007 YTD 2008 YTD 2007
Revenues 310 245 1010 1064
• US East/Canada 165 103 465 463
• US West (California) 145 142 545 601
Gross contribution
in %
39
13%
54
22%
175
17%
220
21%
Operating expenses 31 27 109 115
Operating profit
in %
8
3%
27
11%
66
7%
105
10%
Currency impactFourth quarter 2008 compared to fourth quarter 2007: +25%Full year 2008 compared to full year 2007: - 4%
12
12
Materials Handling – Financials
Figures in USD million 4Q 2008 4Q 2007 YTD 2008 YTD 2007
Revenues 45.6 45.0 179.1 181.5
• US East/Canada 24.3 18.9 82.5 79.0
• US West (California) 21.3 26.1 96.6 102.5
Gross contribution
in %
5.7
13%
9.9
22%
31.0
17%
37.5
21%
Operating expenses 4.5 4.9 19.3 19.6
Operating profit
in %
1.2
3%
5.0
11%
11.7
7%
17.9
10%
Highlights 2008
• 7 M$ in revenue from commercial volumes with low margin
• Satisfactory performance in spite of high fuel prices for the year
• Fuel prices decreased with ≈50% during the quarter
• Operational expenses down by 10%
• Deposit volumes increased with 3%
• 82 M$ in revenues
• ~270 employees
• Own transportation network in some states, outsourced to 3rd parties in other states
• Processing in 7 own facilities plus 4 outsourced facilities
• Annual volumes processed (pounds):
– Alu 130+ mill.
– Glass 500+ mill.
– Plastic 130+ mill.
13
Materials HandlingEast Coast
Could be negatively impacted if beverage consumption decreases, no signs so far
Positively impacted by lower fuel prices
Historical EBIT performance in range 7% - 10%
• ~97 M$ in revenues
• ~660 employees
• ~450 recycling centers
• 4 processing facilities
• 1.3 billion containers collected annually
14
Materials HandlingUS West Coast (Californian) operations
Highlights 2008
• Due to commodity exposure, loss making in 4th quarter
• 1st quarter LME volume locked at 1.550$ per ton
• PET prices from 25 c/lb average YTD Sept 08 to 8 c/lb in Nov 08 to 13 c/lb in Jan 09
• Cost reduction activities initiated Nov/Dec 08
• Discussions with California DOC on ways to improve recycling
• Chinese PET market now functioning properly
15
Materials HandlingCalifornia operation
Sensitivity analysis
Oil price 40$ / Alu 1.500$ / PET 10 cent per pound -4% - 0%
Oil price 60$ / Alu 2.100$ / PET 15 cent per pound 2% - 8%
Oil price 80$ / Alu 2.500$ / PET 20 cent per pound >8%
Aluminum prices expected to be low throughout 2009
PET prices steadily increasing towards 20 cent per pound
EBIT performance range
16
Materials Handling
Summary
East Coast (45% of revenue) should operate in line with
historical 7% - 10% EBIT margin
California (55% of revenue) in red figures 1st half 2009
and potentially back in black figures 2nd half 2009
High level of uncertainty related to commodity prices
18
18
Industrial Processing Technology - Financials
Figures in NOK million 4Q 2008 4Q 2007 YTD 2008 YTD 2007
Revenues 213 190 793 647
• Nordic 39 14 120 78
• Central Europe & UK 94 93 355 300
• Rest of Europe 29 29 132 107
• US/Canada 16 10 51 34
• US West 13 10 39 24
• Rest of World 22 34 96 104
Gross contribution
in %
111
52%
89
47%
403
51%
321
50%
Operating expenses 76 65 259 220
Operating profit
in %
35
16%
24
13%
144
18%
101
16%
19
Highlights Industrial Processing Technology
Strong performance in all companies, Q4 as well as 2008
• Growing in all markets
2008 revenue growth
• TiTech 28%
• Presona 25%
• Orwak 10%
2008 performance
• TiTech slightly down on EBIT margin
• Orwak and Presona considerable improvement on margins
Industrial Processing Technology
Long term strong demand for recycling technology solutions unchanged
Waste generation continues to grow
Legislation impacts demand for more recycling
Efficiency improvements in current solutions needed
Consumers and politicians pushing the environmental agenda
A global trend
Long term strong demand for recycling technology solutions unchanged
Challenging to predict short term development
21
Order book comparedQ3-08
Order book compared Q4-07
TiTech -15% -29%
Presona -36% -52%
Orwak -21% -10%
Actions taken
• Significant cost reduction programs have been initiated in all 3 companies to adjust to lower revenues
Order inflow Q4 impacted from financial downturn
23
23
Collection Technology Non-deposit Solutions- Financials
Figures in NOK million 4Q 2008 4Q 2007 YTD 2008 YTD 2007
Revenues 29 10 94 48
• Central Europe & UK 23 5 55 38
• Rest of Europe 4 - 8 -
• US East & Canada - - 24 -
• Rest of World 2 5 7 10
Gross contribution
in %
9
31%
0
-
25
27%
(13)
-
Operating expenses 17 18 85* 77
Operating profit
in %
(8)
-
(18)
-
(60)
-
(90)
-
* Including 7 MNOK in one-off restructuring charges in 3Q08
24
Highlights Collection Technology - Non-deposit
Tesco installed 13 ARCs during the quarter and continues same pace in Q1 2009 towards 90 machines in total
Adjusting strategy in Japan to also approach retailers and CPGs for promotion. This to speed up growth
Cost reduction program implemented in Q3 will start to yield 1Q 2009
One of three stakeholders has to see benefits enough to take the lead
Retailers, Municipality, Consumer good provider
The lower investment and smaller footprint, the better
Kiosk, UNO, City/T-63
Key to get into revenue streams related to advertising/promotion (street furniture)
Adjusting spending and strategy accordingly
Lessons learned during last 3 years across all markets
From 90 MNOK loss making in 2007 to break even run rate late 2009
Consumer environmental awareness and attitude continues to put pressure on authorities and corporations
EUR* USD NOK SEK OTHER TOTAL
Revenues 45 % 35 % 5 % 10 % 5 % 100 %
Expenses 35 % 35 % 15 % 10 % 5 % 100 %
EBIT 120 % 35 % - 70 % 10 % 5 % 100 %
Revenues and expenses per currency;
Revenues Expenses EBIT
EUR* 4.5% 3.5% 12.0%
USD 3.5% 3.5% 3.5%
SEK 1.0% 1.0% 1.0%
OTHER 0.5% 0.5% 0.5%
ALL 9.5% 8.5% 17.0%
10% change in NOK towards other currencies will impact;
NOTE: Rounded figures
HEDGING POLICY
• TOMRA hedge B/S items that will have P/L impact on currency fluctuations
• TOMRA can hedge up to one year of future predicted cash flows. Gains and losses on these hedges are recorded at the finance line, not influencing the EBIT
Average currency rates in 2008
$ 5,64 / € 8.22
Currency exposure
26
* EUR includes DKK
* EUR includes DKK
27
Political leadership
Legislation
Public opinion
Corporate social responsibility
Waste generation
EU Landfill DirectiveEstablish regulations for landfilling of waste within the EU. Key requirements: All landfills must be classified for material…
WEATHER
EU Waste Packaging DirectiveEstablish targets for collection and recycling to be achieved by all EU member states within 2015. Overall recycling: 55-80%...
Macro trends impacting recycling industry positively
Corporate social responsibility
Commodity prices
28
Collection Technology – Deposit No impact
Materials Handling- East Coast operation- California
If any, positiveNegative impact at current commodity price level
Industrial Processing Technology Revenues in 2009 will decrease compared to 2008, too early to predict magnitude
Collection Technology – Non-deposit Limited impact
Currency Significant positive impact
Current assessment of impact from economic global downturn
2929
TOMRA also provides a positive contribution to the environment,
each year TOMRA enables:
• Collection of 30 billion used beverage containers through RVMs, ~3 % of world consumption
• Processing of 300,000 metric tons of beverage container material in the US
• Sorting of around 17.5 million metric tons of mixed waste through optical scanners from TiTech
• Compaction of about 30 million metric tons of waste in Orwak and Presona compactors
A positive contribution
Net avoidance of about 10 million metric tons of CO2 equivalents each year, equal to about 20% of the annual emissions of Norway
31
Addendum slideMajor shareholders
1 Orkla ASA 24 000 000 15.5%
2 Folketrygdfondet 15 349 700 9.9%
3 The Northern Trust C Treaty Account 12 946 274 8.4%
4 State Street Bank AN A/C Client Omnibus D 7 709 746 5.0%
5 Tomra Systems ASA 4 996 246 3.2%
6 Bank of New York MEL S/A Mellon Nominee 1 3 071 856 2.0%
7 FERD AS Invest P610AK 2 900 000 1.9%
8 Bank of New York ADR department 2 554 598 1.6%
9 Skagen Vekst 2 285 600 1.5%
10 RBC Dexia Investor S S/A Dub-non-resident 2 208 700 1.4%
SUB-TOTAL 78 022 720 50.3%
Other Shareholders 76 997 358 49.7%
TOTAL (8,772 shareholders) 155 020 078 100.0%
Total foreign ownership 71 441 608 46.1%
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