- Adjusted for currency impact, revenue increased by 5% relative to the fourth quarter 2001 (continuing operations)

 

-   Operating profit 82 MNOK compared to a loss of 330 MNOK in the fourth quarter 2001

 

- Strong cash flow, contributing to a year-end cash balance in excess of 1 billion NOK.

 

 

On 1 January 2003, Germany introduced deposit on 14 billion non-refillable containers for soft drink, beer and mineral water. This is in addition to the existing deposit system for 31 billion refillable containers. An interim, chain- or store-based solution for non-refillable containers, based on manual handling in stores, is currently operating. This interim solution will be replaced on 1 October 2003 by a national and automated system. TOMRA will use its extensive technological resources to assist the industry in developing the required solutions for Germany. Given the chosen solution incorporating automated collection, compaction and other items, TOMRA has not changed its expectation of the total market potential in Germany in a medium term perspective.

 

Several new store openings, which have a private deposit system on non-refillable PET containers, have been the main driver of the positive development in Finland over the past six months. The positive development generated by such store openings is not expected to continue in 2003.

 

TOMRA received an initial order for fifty machines for the Israeli market , half of which were delivered in December 2002. The remaining number of machines were delivered in January 2003. The distributor agreement, of November 2002 with Afcon Control & Automation Ltd., positions TOMRA for placement of a further potential of 450 machines in 2003.

 

Operations in California were profitable during the fourth quarter 2002. Based on interest from several major retailers, TOMRA is prepared to expand its recycling center serices in California. However, TOMRA will delay any investment decisions until a final resolution of legislative amendments related to man-hour reduction and payment structure from the state is concluded, which is expected by mid-2003.

 

TOMRA continued large scale roll-out of TOMRA 83 HcP in Michigan in fourth quarter. For the year, TOMRA has installed 1,900 machines in U.S. East and Canada. TOMRA expects to install approximately 2,200 machines in this area in 2003.

 

Focus during the fourth quarter 2002 has been to optimize operations at the recently acquired IMCO collection centers. In addition, TOMRA has focused on adapting its non-deposit model to recently approved legislation in the state of Rio de Janeiro. Under the newly passed law, all stakeholders, which are responsible for bringing PET bottles into the market, must recycle at minimum 25%. TOMRA is in discussions with all relevant stakeholders regarding a future roll-out of its currently piloted rePlanet centers.