TOMRA Washington Beverage Container Initiative Educational Conference Call December 20, 2006.

TOMRA

Washington Beverage Container Initiative Educational Conference Call December 20, 2006

About Tomra

TOMRA’s Approach To Collecting Containers

Tomra Recycling Centers - Existing

Open Discussion

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

Today’s 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

TOMRA’s Position In The Recycling Value Chain

Sorting & Processing

Back-end processing systems

Front-end collection systems

RecyclingLogisticsLogisticsCollection

For beverage containers and rigid packaging

For general household, industrial and special waste

Material Reclaiming

For Recycled- Content packaging

Cost & Effectiveness of Existing Return Systems

Source: BEAR MSRP Report

Focus Area

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

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

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.

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

Recycling Kiosks In Japan

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

The Tomra Recycling Center (TRC)

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