TOMRA Systems — Earnings Release 2018

Apr 25, 2018

TOMRA: Strong Organic Growth in Sorting and Collection

TOMRA: Strong Organic Growth in Sorting and Collection

Revenues in the first quarter 2018 amounted to 1,754 MNOK up from 1,564 MNOK in

first quarter last year, representing a growth of 12%. Organic, currency

adjusted revenues were up 10% for the group, 5% in TOMRA Collection Solutions

and 17% in TOMRA Sorting Solutions.

Gross margin was 41% in the quarter, a slight increase from 40% in first quarter

2017. Stable margins in TOMRA Collection Solutions and improved margins in TOMRA

Sorting Solutions.

Operating expenses increased to 580 MNOK in first quarter, up from 475 MNOK in

first quarter last year. The increase related to higher activity, ramp-up costs

in New South Wales (Australia), currencies and acquisitions (three months with

Compac in 2018 compared to two months in 2017 + one month with BBC in 2018).

Adjusted for currencies, acquisitions and ramp-up costs, operating expenses

increased by 6%.

EBITA was 142 MNOK in first quarter 2018 versus 158 MNOK in first quarter 2017.

Cash flow from operations in first quarter 2018 equaled 120 MNOK, compared to

122 MNOK in first quarter 2017.

Collection Solutions: The Global Plastic Pollution Challenge Makes Governments

Consider Deposit Schemes

Revenues in the business area equaled 934 MNOK in the first quarter, up from 877

MNOK in first quarter last year. After adjustment for currency changes, revenues

were up 5%.

Gross margin was 40%, unchanged from last year. Operating expenses were 253

MNOK, up from 207 MNOK last year, mainly due to ramp-up in New South Wales,

higher activity and currency. EBITA was 121 MNOK, down from 144 MNOK last year.

On 28 March 2018, the UK government announced plans for a deposit return system.

The goal of the scheme is to drastically reduce plastic pollution and is a part

of the government's 25-year environmental plan.

"We are happy to hear the positive news from the UK government. We understand

that the details are not ready yet and it is too early for us to comment on the

commercial opportunity at this stage. However, from what we understand a

nationwide scheme could be considered. We also understand that the government is

looking at RVMs as one of the channels of collecting the material. We look

forward to the coming year of consultation period", says Stefan Ranstrand, TOMRA

President and CEO.

Sorting Solutions: Continued Good Momentum

Revenues equaled 820 MNOK in first quarter 2018, up 17% in local currencies,

adjusted for acquisitions. Gross margin was 42%, up from 41% same period last

year due to product mix. Operating expenses were up 6% (organic, currency

adjusted)

EBITA increased from 30 MNOK in first quarter 2017 to 41 MNOK in first quarter

2018, positively influenced by higher revenues and higher gross margin.

"The development in TOMRA Sorting continues to be positive and as we had a

record high order inflow in the quarter, we end the quarter with an all-time

high order backlog in Recycling and Food. We see a good momentum in all business

streams", Ranstrand comments on the quarterly development for Sorting Solutions.

TOMRA signed 23 February 2018 an agreement with the owners of BBC Technologies

Ltd (BBC) to acquire 100 percent of the shares. BBC is headquartered in

Hamilton, New Zealand and is a leading provider of precision grading systems for

blueberries and other small fruits. BBC origins go back to 2000, and it

currently employs around 145 people across locations in New Zealand, Chile,

Europe and USA.

Closing of the transaction took place 1 March 2018, when TOMRA paid a total

consideration of 363 MNOK, free of cash and interest-bearing debt.

"BBC complements TOMRA's own fruit inspection and grading technology portfolio.

We admire the work done by the BBC team in developing leading technologies,

market position and their long-term commitment to customers, and we look forward

to continue the journey within an attractive fast-growing together", Ranstrand

concludes.

Asker, 25 April 2018

TOMRA Systems ASA

For questions, please contact:

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

Elisabet V. Sandnes, SVP Head of Group Strategy & Investor Relations: +47 97 55

79 15

Webcast link:

https://events.webcast.no/tomra/kvartalspresentasjoner/78BwPvm0s22GuMOqx3GA

There will be a Q&A after the presentation and the recorded webcast will be made

available on TOMRA's 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 ~95,700 installations in over 80 markets

worldwide and had total revenues of ~7.4 billion NOK in 2017. The Group employs

~3,550 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 and material recovery) and Sorting Solutions

(recycling, mining and food sorting). For further information about TOMRA,

please see www.tomra.com