TOMRA Systems — Earnings Release 2019

May 7, 2019

TOMRA Q1: Good start of the year positioning for further growth

TOMRA Q1: Good start of the year positioning for further growth

Revenues in the first quarter 2019 ended at 2,081 MNOK, up 19% from 1,754 MNOK

in first quarter last year. Organic, currency adjusted revenues were up 14% for

the group, 8% for TOMRA Collection Solutions and 20% for TOMRA Sorting

Solutions.

Gross margin was 42% in the quarter compared to 41% in first quarter 2018,

reflecting stable margins in TOMRA Collection Solutions and improved margins in

TOMRA Sorting Solutions.

Operating expenses amounted to 667 MNOK in the quarter, an increase from 580

MNOK in first quarter last year due to higher business activity, currencies and

acquisition of BBC (BBC consolidated into group financials from 1 March 2018).

EBITA reached 207 MNOK in first quarter 2019, up 46% from same period last

year.

Cash flow from operations in first quarter 2019 were 229 MNOK, compared to 120

MNOK in first quarter 2018.

IFRS 16 was introduced in first quarter 2019 and had a positive effect of 64

MNOK on cash flow from operations and 7 MNOK on EBITA respectively.

On 27th of March, the EU Single-use Plastics Directive was formally approved by

the European Parliament. "With the new regulation, EU has proven its leadership

role on environment by setting ambitious targets on collection rates and amount

of recycled content in new products. We see great potentials to benefit from the

legislative framework by pursuing our strategy on the circular economy and

developing a sustainable business model.", says Stefan Ranstrand, President and

CEO of TOMRA.

Collection Solutions: Good growth in Australia and stable elsewhere

Revenues equaled 1,042 MNOK in the first quarter 2019, up from 934 MNOK in first

quarter last year. After adjustment for currency changes, revenues were up 8%.

Gross margin was 40%, unchanged from last year. Operating expenses amounted to

278 MNOK, up from 253 MNOK last year, mainly due to currencies and cost related

to the preparation for new deposit markets. EBITA was 139 MNOK, an increase from

121 MNOK first quarter last year.

The ramp-up in New South Wales was completed in 2018 with an installed base of

1,200 RVMs, in addition to approx. 100 RVMs in Queensland operational from

November 2018. Both markets have enjoyed good throughput volumes through the

summer season, contributing to the year-over-year growth in Collection

Solutions.

Sorting Solutions: Continued strong momentum in Recycling

Revenues equaled 1,039 MNOK in first quarter 2019, up 20% in local currencies,

adjusted for acquisitions (BBC). Gross margin was 44%, up 42% from same period

last year.

Operating expenses were up from 307 MNOK to 365 MNOK, due to higher activity,

the acquisition of BBC and currency effects.

EBITA increased from 41 MNOK in first quarter 2018 to 92 MNOK in first quarter

2019, positively influenced by topline growth and gross margin improvements.

Order intake was 1,104 MNOK in first quarter 2019, compared to 1,188 MNOK in

first quarter last year. The order backlog decreased slightly from 1,515 MNOK to

1,464 MNOK end of first quarter 2019.

Revenues in the Food business stream improved year-over-year, while order

backlog decreased due to lower order intake in US and more orders taken to P/L.

The order intake improved in Recycling year-over year with both revenues and

order backlog significantly up compared to same period last year.

Asker, 7 May 2019

TOMRA Systems ASA

For questions, please contact:

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

Bing Zhao, Director Investor Relations & Strategy: +47 40 21 08 19

Webcast link: https://events.webcast.no/tomra/kvartalspresentasjoner/tomra

-systems-asa-q1-presentation

-2019 (https://eur02.safelinks.protection.outlook.com/?url=https%3A%2F%2Fevents.w

ebcast.no%2Ftomra%2Fkvartalspresentasjoner%2Ftomra-systems-asa-q1-presentation

-2019&data=02%7C01%7Cbing.zhao%40tomra.com%7C8b151217e2034802a28b08d6cd45155b%7C4

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gw%2FipO%2BGoMt1IjxWtyT1JPJEBlxyOSYVw%3D&reserved=0)

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

available on TOMRA's webpage www.TOMRA.com.

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 provides technology-led solutions that enable

the circular economy with advanced collection and sorting systems that optimize

resource recovery and minimize waste in the food, recycling and mining

industries.

TOMRA has ~100,000 installations in over 80 markets worldwide and had total

revenues of ~8.6 billion NOK in 2018. The Group employs ~4,000 globally and is

publicly listed on the Oslo Stock Exchange. (OSE: TOM). For further information

about TOMRA, please see www.tomra.com