TOMRA

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TOMRA

• Washington Beverage Container Initiative
  Educational Conference Call
  December 20, 2006
  

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• About Tomra
• TOMRAs Approach To Collecting Containers
• Tomra Recycling Centers - Existing
• Open Discussion

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About TOMRA

• TOMRA Systems ASA
• Founded in 1972
• History Design, manufacture and sale of Reverse
  Vending Machines (RVMs) for automated handling of
  used beverage containers
• Todays Mission Leading Provider of advanced
  recycling technology for used packaging
• Active in over 45 markets Europe, North
  America and Japan
• Best In Class
• Sustainability

• TOMRA North America
• Established in 1991
• 9 States 1 Province
• Revenues 200 Million
• 1,000 employees
• 16,500 Machine Installations
• Serve Major Food Retailers Beverage Producers
• 239 Wal-Mart Stores
• 889 RVMs in-use

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TOMRAs Position In The Recycling Value Chain
Sorting Processing
Recycling
Logistics
Logistics
Collection
Material Reclaiming
Back-end processing systems
Front-end collection systems
For Recycled- Content packaging
For beverage containers and rigid packaging
For general household, industrial and special
waste
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Cost Effectiveness of Existing Return Systems
Focus Area
Source BEAR MSRP Report
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Framing The Challenge

• Meaningful Access To Recycling Will Only Occur
  If
• Recycling is Convenient for Consumers
• Large Network of Redemption Points
• Combine Recycling with an Existing Activity
• Consumers are Rewarded for Their Participation
• Financial Reward and/or Perceived Rewards
• Economic Realities Are Addressed
• Real Estate Needs to Be Donated
• Commodity Values Strong Yet Not All Sufficient to
  Cover Recycling Costs
• Leverage Partnerships Incentive Communication
  Opportunities
• Technology to Reduce Operational Logistical
  Costs
• Program is Supported/Managed Properly
• Support of Local Communities
• Operated By Experienced Well-Heeled Companies
• Site and Program Management Standards Established
  Before Launch

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Incentives

• There Are Two Main Classes of Benefits Which a
  Reward Program Can Deliver
• What is the objective?
• What is the reward structure?
• What are the logistics?
• How will I deliver on the promise?
• How long will the program last?
• There Are Two Main Classes of Benefits Which a
  Reward Program Can Deliver Hard Soft Benefits
• Must Balance Real Costs vs. The Perceived Value

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Wal-Mart Test Florida, USA (2001-2003)

• Partnership Formed in 2001
  TOMRA / Wal-Mart / Coke /
  Anheuser-Busch
• Pilot Launched in 2002
• Goals
• Understand Consumer Behavior
  Related to Convenience,
  Attractiveness and Incentive
• Understand Economic Realities
  of Retail-Based Recycling
• Cost-Plus Model
• 0.01/Unit Incentive
• Operated For 11 Months
• Pilot Volume Goal Achieved in 3rd Month
• Averaged 6,000 Customer Transactions/mo.

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Consumer Response to RePlanet(RePlanet Users,
Post Launch)

• 84 Extremely Satisfied With Replanet Execution
• 71 Preferred RePlanet Over Other Methods of
  Recycling
• 67 Extremely Satisfied With .01 Redemption
  Value
• 43 Were Not Interested In Replanet if .01
  Redemption Value Went Away
• 71 Indicated Convenience of Wal-Mart as a
  Factor In Their Decision to Recycle.
• 41 Are Recycling More Often Since RePlanet
  Launched
• 67 Liked Wal-Mart Much More For Providing
  RePlanet Service
• 80 Perceive Recycling Extremely or Very
  Important

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Recycling Kiosks In Japan
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Tomra Japan (2005-Current)

• Background
• Partnership with Sumitomo
• Successful Pilot 80 RVMs installed
  At Supermarket Venues
• Expansion 2000 RVMs in 3 years
• Prerequisites For Success In-Place
• High UBC Volumes
• Consumer Behavior Favorable
• Current TOMRA Technology Applicable
• Municipalities Supermarkets
• Municipalities Satisfied Savings Realized
• Positive Consumer Response Sufficient Volumes

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The Tomra Recycling Center (TRC)
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Tesco TOMRA Recycling Center (TRC)
England (2005-Current)

• Tesco launched pilot November 2004
• The pilot included 6 centers scheduled to run
  through Q1 2006
• High media profile with funding from UK
  Government through WRAP
• After successfully meeting pilot KPIs (collected
  volumes and customer satisfaction) TESCO ordered
  100 centers on 2 June 2006.
• Order 15MUSD
• Recycling Centers delivered 2006/2007

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