TOMRA Systems — Earnings Release 2014

Apr 30, 2014

1 ST QUARTER 2014 RESULTS ANNOUNCEMENT

TOMRA SYSTEMS ASA 30th April 2014

HIGHLIGHTS FROM THE QUARTER INCLUDE

Revenues	• Revenues of 1,065 MNOK (966 MNOK in first quarter 2013). Currency adjusted revenues were: - Up 1% for TOMRA Group - Up 4% in TOMRA Collection - Down 2% in TOMRA Sorting
Gross margin	• Gross margin 43%, down from 44% in first quarter 2013 - Slightly lower gross margin in TOMRA Sorting
Operating expenses	• Operating expenses of 356 MNOK (314 MNOK in first quarter 2014) - Including one time integration cost of 12 MNOK in TOMRA Sorting - Up 1% adjusted for one time cost and currency
EBITA	• EBITA of 106 MNOK (113 MNOK in first quarter 2013) - Including one time integration cost of 12 MNOK in TOMRA Sorting
Cashflow from operations	• Cashflow from operations of 12 MNOK (11 MNOK in first quarter 2013)
Orders TOMRA Sorting	• Order intake of 488 MNOK compared to 403 MNOK same period last year • All time high order backlog of 574 MNOK in TOMRA Sorting, up from 475 MNOK at the end of fourth quarter 2013
Other	• Post merger integration and streamlining of TOMRA Sorting ongoing

FINANCIAL HIGHLIGHTS P&L STATEMENT

		1st Quarter
Amounts in NOK million	2014	2013	13 Adj*
Revenues	1,065	966	1,050
• Collection Solutions	676	598	652
• Sorting Solutions	389	368	398
Gross contribution	462	427	461
in %	43%	44%	44%
Operating expenses	356	314	341
EBITA	106	113	120
in %	10%	12%	11%
One time costs included in operating expenses	12	-	-

* 2013 actual restated at 2014 exchange rates, estimated

** Adjusted for one time costs

FINANCIAL HIGHLIGHTS BALANCE SHEET, CASH FLOW AND CAPITAL STRUCTURE

Amounts in NOK million	31 March 2014	31 March 2013
ASSETS	5,661	5,312
• Intangible non-current assets	2,485	2,334
• Tangible non-current assets	586	566
• Financial non-current assets	297	228
• Inventory	936	885
• Receivables	1,278	1,146
• Cash and cash equivalents	79	153
LIABILITIES AND EQUITY	5,661	5,312
• Equity	2,732	2,412
• Minority interest	85	81
• Interest bearing liabilities	1,494	1,561
• Non-interest bearing liabilities	1,350	1,258

Ordinary cashflow from operations

• 12 MNOK (11 MNOK in 1Q 2013)

Solidity

• 50% equity
• NIBD/EBITDA = 1.7 (Rolling 12 months)

Dividend

• Dividend of NOK 1.35 per share

STATUS FINANCING

	Eksportfinans/DNB	DNB/SEB	DNB	DNB/SEB
Type	3 year term loan	3 year revolving credit facility	5 year revolving credit facility	3/5 year revolving credit facility
Established	July 2011	July 2012	January 2011	April 2014
Expires	July 2014	July 2015	January 2016	April 2017/2019
Amount	NOK 500 million	EUR 100 million (NOK 826 million)	NOK 500 million (or EUR equivalent)	EUR 120 million (multicurrency)
Repayment	Bullet	Bullet	Bullet	Bullet
Interest	Floating, 3m	Floating, 1-9m	Floating, 1-12m	Floating, 1-9m
Margin	52 bps above NIBOR	110-165 above EURIBOR/NIBOR	50-80 bps above NIBOR/EURIBOR	45-185 above EURIBOR/NIBOR
Pledge	Negative	Negative	Negative	Negative
Covenants	30% Equity	30% Equity	30% Equity	30% Equity

HIGHLIGHTS FROM THE 2014 AGM

• The annual general assembly took place 29 April 2014 at TOMRA HQ in Asker, Norway
• Dividend of NOK 1.35/share (up from NOK 1.25/share last year) was approved
• Payment date 13 May 2014
• New Board member: Pierre Couderc
• Long experience from the food industry
• Proxy to acquire up to 10% of the share capital in connection with potential mergers and acquisitions

TOMRA Collection Solutions

HIGHLIGHTS COLLECTION SOLUTIONS

Overall	• Revenues equaled 676 MNOK in first quarter 2014, up from 598 MNOK in first quarter 2013 - Adjusted for currency, revenues were up 4 percent • Gross margin was 43%, unchanged from same period last year • Operating expenses equaled 178 MNOK, up 1% from same period last year • EBITA increased to 110 MNOK, up from 92 MNOK, as a consequence of higher volumes, positive currency development, stable margins and good cost control. • Currency adjusted, EBITA improved with 7 %
Europe	• Stable sales in the Nordic region and positive development in Central Europe • T9 well received
US	• Revenues down 3 % in local currencies. • Severe weather with several winter storms has had a negative impact on both through-put volumes as well as material recovery volumes • Partly offset with strong RVM sales

COLLECTION SOLUTIONS FINANCIALS

		1st Quarter
Amounts in NOK million	2014	2013	13 Adj*
Revenues	676	598	652
• Nordic	130	127
• Central Europe & UK	296	240
• Rest of Europe	6	3
• US East/Canada	237	225
• Rest of the world	7	3
Gross contribution	288	255	279
in %	43%	43%	43%
Operating expenses	178	163	176
EBITA	110	92	103
in %	16%	15%	16%

* 2013 actual restated at 2014 exchange rates, estimated

SUCCESSFUL LAUNCH OF T-9

Front end: 8 x T-9 installed in store - North America

• About ~250 T-9 sold since product launch September 2013 - ~200 in Q1 2014 alone
• Launched in all the largest geographies
• Germany
• Nordics (ex. Denmark)
• Netherlands

Backroom: 4 multipacks handling the volumes from 8 x T-9's

• Currently resulting in a temporary margin dilution effect
• Planned move of parts of T-9 production to low cost countries
• To contribute positively to margins towards end 2014

THE ONE RING POTENTIAL: SOME ILLUSTRATIVE COMMENTS

TOMRA Sorting Solutions

HIGHLIGHTS SORTING SOLUTIONS

Revenues	• Revenues were up 6% Q-o-Q Adjusted for currency effects revenues decreased 2% —
Gross margin	• Gross margin decreased from 47% in first quarter 2013 to 45% in first quarter 2014 Negatively influenced by a weak USD vs EUR — Stable margins the last three quarters —
Operating expenses	• Operating expenses increased from 145 MNOK in first quarter 2013 to 171 MNOK in first quarter 2014 Including one time integration cost of 12 MNOK — Unchanged adjusted for one time cost and currency —
EBITA	• EBITA down from 27 MNOK in first quarter 2013 to 3 MNOK first quarter 2014 Including one time integration cost of 12 MNOK — Negative influenced by lower revenues (in local currencies) and — lower gross margin
Orders	• Strong order intake of 488 MNOK, up 403 MNOK in first quarter 2013 • All time high order backlog of 574 MNOK compared to NOK 475 MNOK at the end of fourth quarter 2013
Other	• Post merger integration and streamlining of the TOMRA Sorting organization ongoing in several locations

SORTING SOLUTIONS FINANCIALS

		1st Quarter
Amounts in NOK million	2014	2013	13 Adj*
Revenues	389	368	398
• Nordic	2	4
• Central Europe & UK	110	106
• Rest of Europe	51	28
• US East/Canada	146	137
• Rest of the world	80	93
Gross contribution	174	172	182
in %	45%	47%	46%
Operating expenses	171	145	159
EBITA	3	27	23
in %	1%	7%	6%
One time costs included in operating expenses	12	-	-

* 2013 actual restated at 2014 exchange rates, estimated

** Adjusted for one time costs

BUSINESS STREAM UPDATE

FOOD	• Revenues were slightly lower in 1Q14 compared to 1Q13, due to lower order backlog at the beginning of the quarter • Good order intake during 1Q14 has improved the order backlog • High activity in both product development and organizational development
RECYCLING	• Revenues were slightly higher in 1Q14 compared to 1Q13, due to higher order backlog at the beginning of the quarter • Order intake has developed positively in waste recycling the last quarters • Metals recycling still depressed due to low commodity prices
MINING	• Good order intake in 1Q14 • Distribution agreement signed with Outotec
INTEGRATION	• Several ongoing integration initiatives: Centralize Process Analytics business unit activities in Leuven — Centralize R&D activities within Mining, moving it from Australia/Canada to Germany — Intention to centralize production activities, currently in Leuven to Pezinok — Centralize Food Finance & Administration activities currently in Dublin in Leuven — Centralize Food Service Back-Office for Belgium and the Netherlands in Leuven — 12 MNOK expensed in 1Q14. Additional 13 MNOK to come in 2Q14 —

BACKLOG DEVELOPMENT AND MOMENTUM

Comments

• The order backlog declined in the period 1Q13- 3Q13
• Partly explained by large US order signed in 2012 and delivered in 2013
• Resulting in a low order backlog end 3Q13
• Good order intake in 4Q13 and 1Q14, combined with stronger NOK and fewer orders taken to P/L in 1Q14
• Leading to all time high order backlog at the end of 1Q14
• Continued high order intake through 2Q14 and 3Q14 important to increase revenues in 2014 compared to 2013

Hazelnut sorter for further processing…

…with ANNUAL PRODUCTION of ~45,000 tonnes…

…amounts to ~150-175 tonnes per day…

..with default acceptance = 1 defect per 2 tonnes…

… done with 7 Nimbus sorters…

~600 manual workers are needed to do the same

job…

Business Outlook

OUTLOOK

Collection Solutions:

• No new markets are expected to generate significant revenues in the coming quarters and activity is consequently assumed to be stable

Sorting Solutions:

• The business area ended 1Q14 with an all time high order backlog, but as part of this backlog has somewhat longer delivery times, revenues in 2Q14 are expected to be somewhat below 2Q13
• Favorable market and product mix is expected to lead to a somewhat improved GM% in 2Q14, compared to 2Q13
• Integration cost of 13 MNOK to be taken in 2Q14 (in addition to the 12 MNOK recorded in 1Q13). The initiatives are assumed to generate yearly savings of close to 30 MNOK per year, starting 2015

Currency:

• Reporting in NOK and with some NOK cost base, TOMRA will in general benefit from a weak NOK, measured particularly against EUR and USD. TOMRA will consequently continue to gain from a strong USD and EUR, provided current exchange rate levels are maintained

Copyright

The material in this Document (which may be a presentation, video, brochure or other material), hereafter called Document , including copy, photographs, drawings and other images, remains the property of TOMRA Systems ASA or third party contributors where appropriate. No part of this Document may be reproduced or used in any form without express written prior permission from TOMRA Systems ASA and applicable acknowledgements. No trademark, copyright or other notice shall be altered or removed from any reproduction

Disclaimer

This Document (which may be a presentation, video, brochure or other material), hereafter called Document, may include and be based on, inter alia, forward-looking information and statements that are subject to risks and uncertainties that could cause actual results to differ. The content of this Document may be based on current expectations, estimates and projections about global economic conditions, including the economic conditions of the regions and industries that are major markets for TOMRA Systems ASA and its subsidiaries and affiliates. These expectations, estimates and projections are generally identifiable by statements containing words such as "expects", "believes", "estimates" or similar expressions, if not part of what could be clearly characterized as a demonstration case. Important factors that could cause actual results to differ materially from those expectations include, among others, changes in economic and market conditions in the geographic areas and industries that are or will be major markets for TOMRA Systems ASA. Although TOMRA Systems ASA believes that its expectations and the Document are based upon reasonable assumptions, it can give no assurance that those expectations will be achieved or that the actual results will be as set out in the Document. TOMRA Systems ASA does not guarantee the accuracy, reliability or completeness of the Document, and TOMRA Systems ASA (including its directors, officers and employees) accepts no liability whatsoever for any direct or consequential loss arising from the use of this Document or its contents. TOMRA Systems ASA consists of many legally independent entities, constituting their own separate identities. TOMRA is used as the common brand or trade mark for most of these entities. In this Document we may sometimes use "TOMRA", "TOMRA Systems", "we" or "us" when we refer to TOMRA Systems ASA companies in general or where no useful purpose is served by identifying any particular TOMRA Company

TOMRA SHAREHOLDER STRUCTURE

	st Top 10 shareholders as of 31 of March 2014	Shareholders by country
1	Investment AB Latour	35 690 000	24.1%
2	Folketrygdfondet	14 660 124	9.9%
3	Jupiter European Fund	9 355 330	6.3%
4	Skandinaviska Enskilda A/C Clients account	8 942 119	6.0% (NOM)
5	JP Morgan Chase Bank Nordea Treaty account	4 338 991	2.9% (NOM)
6	Nordea Nordic Small	3 367 498	2.3%
7	Skandinaviska Enskilda A/C Finnish Resident	2 596 929	1.8% (NOM)
8	ODIN Norge	2 564 905	1.7%
9	The Bank of New York BNY Mellon	2 490 096	1.7% (NOM)
10	Clearstream Banking	2 091 031	1.6% (NOM)	Total shares held abroad: 77.8%
	Sum Top 10	86 442 368	58.4%
	Other shareholders	61 577 710	44,6%
	TOTAL (5,894 shareholders)	148 020 078	100%

Source: VPS