TOMRA Systems — Earnings Release 2020

Oct 22, 2020

TOMRA: 3Q 2020 - Solid development in third quarter

TOMRA: 3Q 2020 - Solid development in third quarter

Third quarter 2020 marked a return to normal despite the headwind brought about

by the COVID-19 pandemic. The essential nature of the markets that TOMRA serves

is a strength, while technology continues to be a success factor for our

customers.

Revenues in the third quarter 2020 amounted to 2,578 MNOK compared to 2,378 MNOK

in third quarter last year. Currency adjusted revenues were up 3% for TOMRA

Group. Revenues were down 1% in TOMRA Collection Solutions and up 7% in TOMRA

Sorting Solutions, currency adjusted.

Gross margin was 46% in the quarter, up from 45% in third quarter 2019, with

higher margins in TOMRA Collection Solutions and stable in TOMRA Sorting

Solutions.

Operating expenses was 676 MNOK in third quarter 2020, compared to 648 MNOK in

third quarter last year - down 1% currency adjusted.

EBITA was 501 MNOK in third quarter 2020, up from 414 MNOK in the same period

last year.

Cash flow from operations in third quarter 2020 equaled 432 MNOK, compared to

438 MNOK in third quarter 2019.

Collection Solutions: Business as usual, volumes stabilized in North America

Revenues in the business area equaled 1,287 MNOK in the third quarter, up from

1,238 MNOK in third quarter last year. After adjustment for currency changes,

revenues were down 1%.

Gross margin increased to 45% as a result of efficiency gains and product mix in

the third quarter. Operating expenses was 258 MNOK, compared to 264 MNOK last

year, due to currencies partly offsetting the effect of cost measures.

By the end of the second quarter the US deposit states had resumed enforcement

of bottle bill regulations and volumes have rebounded and are close to normal

levels. Despite COVID-19 challenges, TOMRA strengthened its market position in

Northern Europe. Australia continues on a growth trajectory with increased

volume collection in third quarter 2020 compared to the same period last year.

On October 1[st], TOMRA launched in Western Australia with five modern depots

located in the Perth area.

Accumulated cost control measures have led to a 6% reduction in operating

expenses in third quarter compared to the same period last year, currency

adjusted.

EBITA was 316 MNOK, up from 270 MNOK last year.

Sorting Solutions: Sound momentum in fresh food and waste sorting

Revenues equaled 1,291 MNOK in third quarter 2020, up 7% in local currencies

compared to last year. Gross margin was 47%, up from 46% in third quarter 2019.

Operating expenses in the second quarter was 382 MNOK versus 360 MNOK last year,

flat when adjusted for currency.

EBITA increased from 168 MNOK in third quarter 2019 to 221 MNOK in second

quarter 2020, up 27% currency adjusted.

Order intake of 1,102 MNOK in the quarter, compared to 1,224 MNOK same quarter

last year, down 15% currency adjusted. The order backlog was 1,557 MNOK at the

end of third quarter 2020, up from 1,430 MNOK at the end of third quarter 2019.

Currency adjusted the order backlog was unchanged.

Home consumption has boosted the grocery business and sustained the good

momentum in fresh food. The recovery in the food service sector has been slower

and more uncertain. Order intake is negatively impacted as a result.

The waste sorting and plastic recycling business is a healthy segment driven by

legislation and the push for circularity. Metal sorting and Mining have been

negatively impacted by slower industrial demand which has remained below pre

-Covid levels during the third quarter.

Asker, 22 October 2020

TOMRA Systems ASA

For questions, please contact:

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

Georgiana Radulescu, Director Investor Relations: +47 94 10 16 43

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

-systems-asa-q3-presentation

-2020 (https://eur02.safelinks.protection.outlook.com/?url=https%3A%2F%2Fevents.w

ebcast.no%2Ftomra%2Fkvartalspresentasjoner%2Ftomra-systems-asa-q3-presentation

-2020&data=04%7C01%7Cgeorgiana.radulescu%40tomra.com%7C88ae7ea8fd2e4872f63508d875

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7C1000&sdata=LM34Cy4%2BxoISAEsGKXQVcD9AoydxHBtFQXDCKn6QJHk%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 more than 100,000 installations in over 80 markets worldwide and had

total revenues of ~9.3 billion NOK in 2019. The Group employs ~4,500 globally

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

information about TOMRA, please see www.tomra.com