tomra washington beverage container initiative educational conference call december 20, 2006
TRANSCRIPT
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