• Revenues 664 MNOK (-7% relative to fourth quarter 2003)
  • Europe 236 MNOK (-30%)
  • North America 282 MNOK (unchanged)
  • Non-deposit markets 146 MNOK (+60%)

The amendment of the German Packaging Ordinance was concluded in January 2005 with an approval in the German Lower House. The amended Ordinance entails a flat deposit of 25 Euro cents on containers filled with beer, carbonated soft drinks and mineral water as of 9 May 2005. Also, the so-called "Island deposit systems" operated by most discounters today, must be disbanded by May 2006. At such time, a national deposit system must be in place whereby stores selling beverages filled in non-refillable containers must also pay back deposit to any consumer returning empty containers. Preparations for a national deposit system are in progress.

 

TOMRA has presented its written answer to the EU Commission's Statement of Objections related to the investigations started in 2001,  and has also presented its views in a separate oral hearing. TOMRA strongly contests the Commission's arguments. A final decision in the case is expected in 2005. TOMRA is entitled to appeal the final decision of the Commission to the European Court of Justice.

 

The revenue growth of 14% in 2004 was driven by higher volumes, as well as higher PET and aluminum prices. Collection volumes in comparable sites grew by 25 percent. Because of better capacity utilization and improved commodity prices, TOMRA met its milestone of operating margin in California of 10 percent.

 

TOMRA seeks to generate considerable efficiency gains in existing recycling systems by increasing the use of technology in the sorting and handling of packaging waste. This will be achieved by acquiring and developing recycling technology and equipment companies with attractive growth and profit potential. The acquisitions of TiTech and Orwak Group are important steps in realizing this strategy.

 

TiTech's performance in 2004 met TOMRA's expectations. Strong demand from central European countries and positive momentum in the US and UK are the main reasons for this growth. In December 2004, TOMRA signed an agreement to acquire 100 percent of the shares in Orwak Group AB (Orwak Group). The acquisition price is based on an enterprise value of 175 MSEK and a performance-based conditional payment of up to 20 MSEK tied to 2005 and 2006 earnings. Closing of the transaction is expected in February 2005.

 

Since November 2004, TOMRA has been piloting the first TRC (Tomra Recycling Center) in the UK together with TESCO, the UK's leading retailer. An expanded test with an additional five centers is scheduled to run through 2005 at the latest. The aim of the test is to verify the feasibility of a TRC business model versus existing collection infrastructure, by measuring volume, consumer acceptance and transportation costs. Discussions regarding a full roll-out of TRC's in the UK may be initiated towards the end of 2005.

 

In Japan, TOMRA has together with Sumitomo Corporation, installed eight RVM-based recycling centers. The pilots with Sumitomo will run through the first quarter 2005. Both TOMRA and Sumitomo have confirmed their intent to discuss a more formal partnership model. These discussions will take place in the first half of 2005.

 

 

 

 

http://webcast.no/webcast/clients/webcast.asp?clientid=7&webcastid=13

 

A record of the broadcast will be available as soon as the live broadcast has ended