TOMRA Systems — Earnings Release 2018

Feb 21, 2019

TOMRA: 4Q Interim Results 2018 - Strong performance in both Collection and Sorting

TOMRA: 4Q Interim Results 2018 - Strong performance in both Collection and Sorting

Revenues in the fourth quarter 2018 ended at 2,467 MNOK, up 21% from 2,041 MNOK

in fourth quarter last year. Organic, currency adjusted revenues were up 15% for

the group, 14% for Tomra Collection Solutions and 17% for Tomra Sorting

Solutions.

Gross margin was 43% in the quarter, unchanged compared to fourth quarter 2017,

reflecting stable margins in both Tomra Collection Solutions and Tomra Sorting

Solutions.

Operating expenses amounted to 653 MNOK in the quarter, an increase from 574

MNOK in fourth quarter last year. The increase was due to high business

activity, ramp-up costs in new deposit markets and acquisition of BBC (BBC

consolidated into group financials from 1 March 2018).

EBITA reached 396 MNOK in fourth quarter 2018, up 32% from same period last

year.

Cash flow from operations in fourth quarter 2018 were 346 MNOK, compared to 356

MNOK in fourth quarter 2017.

Due to strong cashflow and a solid balance sheet, the Board proposes an ordinary

dividend of NOK 2.50 plus an extraordinary dividend of NOK 2.00, in total NOK

4.50 per share for 2018, up from NOK 2.35 per share last year.

"There has been a major shift in public attitude to waste and recycling

recently, and policymakers have been implementing ambitious targets and

regulations all over the world. Circular Economy has been high on the agenda as

nations and businesses seek to manage their resources more effectively and

deliver a more sustainable model from production to consumption. TOMRA is

committed to both reducing material waste and enhancing material value by making

use of our knowledge in both Collection and Sorting and through collaboration

with partners. We see good results of the work today, yet significant untapped

potentials remains", says Stefan Ranstrand, TOMRA President and CEO.

Collection Solutions: High business activity in both new and existing markets

Revenues amounted to 1,141 MNOK in the fourth quarter 2018, up from 995 MNOK in

fourth quarter last year. After adjustment for currency changes, revenues were

up 14%.

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

273 MNOK, up from 266 MNOK last year, mainly due to cost related to the

preparation for new deposit markets. EBITA was 179 MNOK, an increase from 135

MNOK fourth quarter last year.

In November 2018, the Queensland container deposit system went live, with all

TOMRA's 10 Collection Refund Points operational, each equipped with approx. 10

RVMs.

On 19th of December, a joint agreement with the EU Parliament and EU Council was

reached on the EU Single-use Plastics Directive, introducing amongst others

separate collection targets on plastic bottles and requirements for recycled

content in new plastic bottles.

Sorting Solutions: Good momentum across all business streams

Revenues equaled 1,326 MNOK in fourth quarter 2018, up 17% in local currencies,

adjusted for acquisitions (BBC). Gross margin was 45%, unchanged from same

period last year.

Operating expenses were up from 292 MNOK to 360 MNOK, due to higher activity,

the acquisition of BBC and currency effects.

EBITA increased from 182 MNOK in fourth quarter 2017 to 237 MNOK in fourth

quarter 2018, positively influenced by strong topline growth.

Despite all time high revenues in the quarter, continued strong order intake

lead to a healthy order backlog of 1,399 MNOK at the end of fourth quarter 2018,

up from 1,147 MNOK at the end of fourth quarter 2017.

Both revenues and order intake in the Food business stream improved year-over

-year. Recycling had stable revenue and order intake compared to fourth quarter

last year, while order backlog was significantly up. Mining also had improvement

in revenue, order intake and backlog.

Asker, 21 February 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-q4-presentation

-2018 (https://emea01.safelinks.protection.outlook.com/?url=https%3A%2F%2Fevents.

webcast.no%2Ftomra%2Fkvartalspresentasjoner%2Ftomra-systems-asa-q4-presentation

-2018&data=02%7C01%7Cbing.zhao%40tomra.com%7C1e5100f2519d4347bfcc08d690debcd1%7C4

308d118edd143008a37cfeba8ad5898%7C0%7C0%7C636855683656981152&sdata=3e4nWssbMJyEtT

skFdB8WOqz2cDyIOW%2BdarIuivnioE%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 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). 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