TOMRA Systems — Earnings Release 2014

Jul 18, 2014

TOMRA Q2: Strong order intake in Sorting Solutions in a quarter with flat revenues

TOMRA Q2: Strong order intake in Sorting Solutions in a quarter with flat revenues

Revenues in the second quarter 2014 amounted to 1,187 MNOK compared to

1,177 MNOK in second quarter last year. Revenues in TOMRA Collection

increased by 4% (down 1% currency adjusted), while revenues in TOMRA

Sorting were down 4% (down 8% currency adjusted).

Gross margin was 43% in the quarter, up from 42% in the corresponding

period last year, explained by improved margins in TOMRA Sorting.

Operating expenses increased from 323 MNOK in second quarter 2013 to 348

MNOK in second quarter 2014, including one-time integration costs of 13

MNOK in TOMRA Sorting. Adjusted for currency (stronger EUR and USD vs

NOK) and one-time costs, operating expenses increased by 2%.

EBITA was 156 MNOK in second quarter 2014 versus 172 MNOK in the second

quarter 2013.

Cash flow from operations in second quarter 2014 equaled 136 MNOK, up

from 120 MNOK in second quarter 2013.

Collection Solutions: T-9 roll out slightly ahead of schedule and new

depot prototype machine out for testing

Revenues in the business area equaled 726 MNOK in the second quarter, up

from 699 MNOK in second quarter last year. After adjustment for currency

changes, revenues were down 1%.

Compared to same period last year gross margin was unchanged at 42%.

Operating expenses were up 2%, currency adjusted. EBITA was MNOK 129, up

from 127 MNOK, due to the positive currency impact.

Since the new RVM machine T-9 the new RVM machine was launched in

September last year it has received a very good reception in the market

place. The ambition is to place 1,000 machines during 2014 and so far

487 machines has left production.

"It is very encouraging to see the good reception the T-9 is getting

from the target client group high volume stores and high-end retail",

says Stefan Ranstrand, TOMRA President and CEO.

On top of the new product launch TOMRA is progressing as planned with

the development of the new depot machine. The depot machine will serve

the very high volume bulk market where TOMRA is not present today. One

machine is out for testing in Norway, and several more test machines

will be placed in the US market during 2014. The new machine is based on

existing modules from the TOMRA portfolio and in-house R&D.

Sorting Solutions: Positive order intake development in all three

business segments

Revenues in the quarter decreased by 4% compared to same quarter in

2013. Adjusted for currency effects, revenues were down 8%.

Gross margin increased from 43% in second quarter 2013 to 44% in second

quarter 2014, with the negative impact of a stronger EUR vs USD being

offset by better product and market mix. Operating expenses increased in

the same period from 153 MNOK to 168 MNOK, negatively influenced by

integration costs of 13 MNOK in second quarter 2014 (versus 8 MNOK in

second quarter 2013). Adjusted for integration cost and currency,

operating expenses were up 1%.

EBITA decreased from 51 MNOK in second quarter 2014 to 34 MNOK in second

quarter 2014.

As a consequence of higher order intake and somewhat fewer orders taken

to P/L currently, the order backlog at the end of second quarter 2014 is

at an all-time high at 615 MNOK compared to 574 MNOK at the end of first

quarter 2014.

"After a somewhat longer period where we have experienced a more

challenging order intake situation, we have now seen three consecutive

good quarters with a satisfactory order intake. Specifically for this

quarter, we are pleased to see an increase of about 20% in order intake

compared to same period last year", comments Ranstrand.

Asker, 18 July 2014

TOMRA Systems ASA

For questions, please contact:

Deputy CEO/CFO Espen Gundersen: +47 66 79 92 42 / +47 97 68 73 01

Elisabet V. Sandnes, Investor Relations Officer / M&A Director: +47 97

55 79 15

Webcast link: http://presenter.qbrick.com/?pguid=71267d05-db08-452f-befd

-ed708919b818

We will open up for Q&A after the presentation and the recorded webcast

will be made available on our webpage www.tomra.com after broadcast is

concluded.

TOMRA was founded on an innovation in 1972 that began with design,

manufacturing and sale of reverse vending machines (RVMs) for automated

collection of used beverage containers. Today TOMRA has ~170,000

installations in over 80 markets worldwide and had total revenues of

~4.6 billion NOK in 2013. The Group employs ~2,500 globally, and is

publicly listed on the Oslo Stock Exchange. (OSE: TOM) The TOMRA Group

continues to innovate and provide cutting-edge solutions for optimal

resource productivity within two main business areas: Collection

Solutions (reverse vending, material recovery and compaction) and

Sorting Solutions (recycling, mining and food sorting). For further

information about TOMRA, please see www.tomra.com