TOMRA Systems — Earnings Release 2020

May 5, 2020

TOMRA: 1Q 2020 - On solid ground to navigate through the turmoil

TOMRA: 1Q 2020 - On solid ground to navigate through the turmoil

Revenues in the first quarter 2020 amounted to 2,302 MNOK, up 11% from 2,081

MNOK in first quarter last year. Organic, currency adjusted revenues were up 3%

for the group, 5% for TOMRA Collection Solutions and 1% for TOMRA Sorting

Solutions.

Gross margin was slightly up from 42.0% to 42.3 %, reflecting stable margins in

TOMRA Collection Solutions and improved margins in TOMRA Sorting Solutions.

Operating expenses totaled 745 MNOK in the quarter, an increase from 667 MNOK in

first quarter last year due to ramp-up in TOMRA Collection Solutions and

Circular Economy and currency effects.

EBITA reached 228 MNOK in first quarter 2020, up from 207 MNOK in same period

last year.

Cash flow from operations in first quarter 2020 were 265 MNOK, compared to 229

MNOK in first quarter 2019.

TOMRA's reporting currency, the NOK, depreciated significantly against all major

currencies during March 2020. As a result, assets and liabilities have both

increased 14% in value and equity improved 703 MNOK during the first quarter.

Net financial item on the income statement reflects a net currency loss of 190

MNOK due to currency hedging contracts recorded at market value using closing

exchange rates for the quarter. The weakening of the NOK has also had a material

positive impact on order intake and backlog in TOMRA Sorting Solutions.

Over the past quarter, the extent of the COVID-19 virus as a global pandemic has

become apparent and TOMRA has responded resolutely to the unprecedented

challenges.

"Ensuring people's safety and wellbeing remains a top priority for us and

considerable efforts have been invested into protection, prevention, engagement

and transparent communication. TOMRA remains close to its customers and

continues to provide expertise and support, leveraging remote connectivity and

its geographical footprint. While we strive to manage our operations and ensure

business continuity, we also seek to understand the longer-term implications and

seize potential opportunities. TOMRA's strategy and ambitions stays firm, as we

also see calls for rebuilding towards broader sustainability and resilience,"

says Stefan Ranstrand, President and CEO of TOMRA.

Collection Solutions: Major markets showing resilience, some impact of lockdown

Revenues equaled 1,168 MNOK in the first quarter 2020, up from 1,042 MNOK in

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

5% fueled by higher activity in Northern Europe and Australia.

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

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

to the preparation for new deposit markets.

EBITA was 151 MNOK, an increase from 139 MNOK first quarter last year.

The main customer group of Collection Solutions are retailers, which are

regarded as society critical businesses and remain sound through the crisis.

Container return volumes mirror the severity of lockdown measures imposed by

governments worldwide. Europe has been less impacted, while impact in North

America has been material. Australia experienced a dip in volume but has picked

up again going into May.

Sorting Solutions: Tackling uncertainties backed by all-time high order backlog

Revenues equaled 1,134 MNOK in first quarter 2020, up 1% in local currencies.

Gross margin was 45%, up 44% from same period last year.

Operating expenses were up from 365 MNOK to 397 MNOK, up 1.5% currency adjusted.

EBITA increased from 92 MNOK in first quarter 2019 to 114 MNOK in first quarter

2020, positively influenced by topline growth and gross margin improvements.

Order intake was 1,591 MNOK in first quarter 2020, up 11% currency adjusted from

first quarter last year with increased order intake in all business streams. The

order backlog ended at an all-time high of 1,915 MNOK, compared to 1,458 MNOK

same period last year, representing an 13% increase adjusted for currencies.

Both food supply and waste management are defined as essential business

operations. However, the industries face disruptions in different ways, amongst

others labor shortage and logistics challenges. Customers of TOMRA Sorting

Solutions - Food are in demand of critical support, but also experience

uncertainties related to economic outlook and future demand. Recycling is

supported by strong megatrends for sustainability, but some segments are also

exposed to commodity price fluctuations and industrial demand.

Asker, 5 May 2020

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

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

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

-2020&data=02%7C01%7Cbing.zhao%40tomra.com%7C5b80446f2a9d432d716f08d7eb8017e2%7C4

308d118edd143008a37cfeba8ad5898%7C0%7C0%7C637236807697539001&sdata=PyVVeZc2QxA0qf

bqSDp4Ko3g3qozHWCwLRMluXfZmSk%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