2 nd quarter 2021 results announcement

TOMRA Systems ASA 16 July 2021 © TOMRA

HIGHLIGHTS FROM THE QUARTER

Key financial highlights

Revenues	•	Revenues of 2,685 MNOK (2,319 MNOK in second quarter 2020) Adjusted for currency, revenues were: - Up 27% for TOMRA Group - Up 43% in TOMRA Collection Solutions - Up 33% in TOMRA Recycling Mining - Up 6% in TOMRA Food
Gross margin	•	Gross margin 45% ( up from 43% in second quarter 2020) - Higher margins in TOMRA Collection Solutions (compared to weak second quarter 2020)
Operating expenses	•	Operating expenses of 746 MNOK (707 MNOK in second quarter 2020) - Still positive effect from cost measures, increased activity level in Collection Solutions
EBITA	•	EBITA of 465 MNOK – up from 288 MNOK in second quarter 2020
Cash flow	•	Cash flow from operations of 286 MNOK – compared to 123 MNOK in second quarter 2020
Order intake	•	Order intake 1,410 MNOK in TOMRA Food and TOMRA Recycling Mining - All time high adjusted for currencies (up 38% compared to second quarter 2020) - Positive momentum in all divisions and segments - All time high order backlog of 2,032 MNOK, up 25% currency adjusted compared to end of second quarter 2020
Other	• •	COVID-19: Still some impact, primarily regarding meeting new customers, cross-border travel and logistics Component shortage is overall under control, but still represents a risk

Business update for TOMRA Collection Solutions

Successful roll-out of small bottle expansion of the Dutch DRS

TOMRA 1Q 2001 quarterly report:

"The Dutch Minister of Environment announced on January 31 that

‒ Growth of 36% in Europe compared to second quarter 2020
‒ Successful roll-out in The Netherlands and go-live on July 1st, 2021
‒ Stable business in North America
‒ Continued good momentum in the Nordics
‒ Sourcing of key components under control and closely monitored

1) Legislative updates according to official government statements

2) https://www.minzp.sk/aktuality/milnik-priprave-zalohoveho-systemu-minister-budaj-predstavil-spravcu-ktory-zavedie-system-zalohovania-pet-flias.html 3) https://www.diena.lv/raksts/latvija/zinas/parakstits-ligums-par-atkritumu-depozita-sistemas-ieviesanu-latvija-14255277

Update on new deposit markets1)

Slovakia – January 2022
‒ In September 2020, Slovakia announced implementation of a deposit system on beverage packaging as of January 1st, 20222) .

Latvia – February 2022

‒ Latvia introduces a deposit system starting February 1st, 20223) . TOMRA was selected as reverse vending technology provider.
‒ The contract was signed on July 15, 2021.

Scotland – July 2022 (potential delay to 2023)

‒ In May 2020, the Scottish Parliament approved DRS regulations with the commencement date on July 1st, 2022.
‒ In March 2021, the scheme administrator was appointed.

The Netherlands – December 2022 (expansion)

‒ In February 2021, the decision of deposit introduction on cans was announced4) with start date on December 31st, 2022.

Victoria – 2023

‒ In April 20215), the government of Victoria announced a split responsibility model for DRS to start in 2023. Collection Solutions business update

Connecticut – January 2023 and 2024 (expansion)

‒ In June 20216) , the state of Connecticut expands deposit legislation to most carbonated beverages not included so far (from 2023) and raises the deposit value from 5 cents previously to 10 cents (from 2024).

4) https://nos.nl/artikel/2367153-kogel-door-de-kerk-per-31-december-2022-statiegeld-op-blikjes.html 5) https://www.premier.vic.gov.au/victoria-set-deliver-cash-cans

6) https://www.cga.ct.gov/asp/cgabillstatus/cgabillstatus.asp?selBillType=Bill&bill_num=SB01037&which_year=2021

Business update for TOMRA Recycling Mining

Waste sorting and plastics recycling

All time high order backlog
High commodity prices and material shortage

All time high order backlog, 27% above last year Continued high commodity prices boost recycling

Illustration1) of price development of virgin PET and recycled PET (rPET)

PET = virgin-derived polyethylene terephthalate rPET= recycled polyethylene terephthalate (comparable to virgin PET)

number of delays occurred so far

Other demand drivers for waste sorting and plastic recycling

of PET flakes)

Metal recycling and mining

Strong metal recycling market
Customer feedback on small diamond machine beyond expectations
3 rd largest diamond recovered with TOMRA technology

1) The chart is intended for illustration purposes and should not be used as factual evidence 2) https://solutions.tomra.com/hrs-rrp-landing-page

collection rates2)

Business update for TOMRA Food

Continued growth in both fresh and processed food

Processed Food

Positive momentum in the food service sector
Order intake in the top categories of potatoes and nuts/dried fruit above 2020 and 2019 levels

Fresh Food

Continued solid growth in fresh food
Particularly high demand in smaller categories such as cherries and kiwis

Potatoes order intake growth1) of 38% quarter over quarter

French Fries manufacturers are investing in additional capacity

"The industry's future is more sustainable operations and bringing automated process control to the next level focusing on data. These are both aspects where TOMRA's expertise and knowledge have helped us and furthered our operations. The TOMRA steam peelers and integrated peel scanners have been an improvement on overall peel quality, peel loss, and requires less operator attention."2)

Rick Verhage | Process Engineer for Grading & Peeling within Engineering Services | Lamb Weston Meijer

Circular Economy – high quality food grade recycled polystyrene (rPS) is now available

High quality recycled polystyrene (rPS), including for food grade applications, is available commercially for the first time.

INEOS Styrolution, member of Styrenics Circular Solutions (SCS) and global leader in styrenics, has announced1) commercialization of mechanically recycled polystyrene in EMEA.

The recycled and recyclable polystyrene material is based on TOMRA's high-quality sorting process which delivers a polystyrene purity of more than 99.9%.

An application for EU authorization of mechanically recycled polystyrene as food contact material has been submitted2) by Styrenics Circular Solutions in March 2021.

FINANCIALS AND OUTLOOK

Currency risk and hedging policy

Revenues and expenses per currency:

	EUR¹	USD	NOK	OTHER²	TOTAL
Revenues	45 %	35 %	0 %	20 %	100 %
Expenses	40 %	25 %	5 %	30 %	100 %

Assets and liabilities per currency:

	EUR¹	USD	NOK	OTHER²	TOTAL
Assets	45 %	15 %	10 %	30 %	100 %
Liabilities	55 %	15 %	10 %	20 %	100 %
¹ EUR includes DKK	² Most important: AUD, NZD, RMB, CAD, SEK, GBP and JPY		NOTE: Estimated and rounded figures

¹ EUR includes DKK NOTE: Estimated and rounded figures

10% change in NOK towards other currencies will impact:

	Revenues	Expenses	EBITA
EUR*	4.5%	4.0%	7.0%
USD	3.5%	2.5%
OTHER2	2.0%	3.0%	-4.0%
ALL	10.0%	9.5%	11.0%

HEDGING POLICY

CASHFLOW AND P/L

• TOMRA can hedge up to one year of future predicted cash flows. Gains and losses on these hedges are recorded at the finance line, not influencing EBITA

B/S

• TOMRA only hedges B/S items where exchange rate fluctuations could have P/L impact. Gains and losses on B/S hedging are recorded in accordance with IAS 21 and will normally not have P/L impact

Financial highlights | P&L statement

		nd 2 Quarter		st 1 Half Year
Amounts in NOK million	2021	2020	2020 Adj*	2021	2020	2020 Adj*
Revenues	2,685	2,319	2,109	4,976	4,621	4,323
Collection Solutions	1,379	1,055	961	2,743	2,223	2,092
Recycling Mining	439	910	330	757	1,559	803
Food	867	354	818	1,476	839	1,428
Gross contribution	1,211	995	894	2,184	1,968	1,827
in %	45%	43%	42%	44%	43%	42%
Operating expenses	746	707	667	1,479	1,452	1,398
EBITA	465	288	227	705	516	429
in %	17%	12%	11%	14%	11%	10%

TOMRA Collection Solutions financials

		nd 2 Quarter		st 1 Half Year
Amounts in NOK million	2021	2020	2020 Adj*	2021	2020	2020 Adj*
Revenues	1,379	1,055	961	2,743	2,223	2,092
Northern Europe	215	187		418	379
Europe (ex Northern)	596	411		1,222	834
North America	412	312		770	698
Rest of the world	156	145		333	312
Gross contribution	603	408	369	1,176	870	820
in %	44%	39%	38%	43%	39%	39%
Operating expenses	325	290	274	642	601	579
EBITA	278	118	95	534	269	241
in %	20%	11%	10%	19%	12%	12%

TOMRA Recycling Mining financials

	nd 2 Quarter		st 1 Half Year
Amounts in NOK million	2021	2020	2020 Adj*	2021	2020	2020 Adj*
Revenues	439	354	330	757	839	803
Europe	264	231		464	509
America	40	17		105	101
Asia	99	63		129	138
Rest of the world	36	43		59	91
Gross contribution	234	193	183	393	442	429
in %	53%	55%	55%	52%	53%	53%
Operating expenses	140	129	121	276	266	257
EBITA	94	64	62	117	176	172
in %	21%	18%	19%	15%	21%	21%

Based upon current production and delivery plans, the revenues in 3Q21 are estimated to be approximately 60% of order backlog at the end of 2Q21

TOMRA Food financials

	nd 2 Quarter		st 1 Half Year
Amounts in NOK million	2021	2020	2020 Adj*	2021	2020	2020 Adj*
Revenues	867	910	818	1,476	1,559	1,428
Europe	254	267		442	462
America	465	435		725	709
Asia	63	64		111	141
Rest of the world	85	144		198	247
Gross contribution	374	394	342	615	656	578
in %	43%	43%	42%	42%	42%	40%
Operating expenses	252	262	246	504	536	513
EBITA	122	132	96	111	120	65
in %	14%	15%	12%	8%	8%	5%

Based upon current production and delivery plans, the revenues in 3Q21 are estimated to be approximately 70% of order backlog at the end of 2Q21

Financial highlights | Balance sheet and cash flow

	30 June	31 Dec
Amounts in NOK million	2021	2020	2020
ASSETS	11,281	12,036	10,977
Intangible non-current assets	3,810	4,087	3,846
Tangible non-current assets	2,226	2,436	2,371
Financial non-current assets	393	433	353
Inventory	1,673	1,941	1,492
Receivables	2,665	2,680	2,383
Cash and cash equivalents	514	459	532
LIABILITIES AND EQUITY	11,281	12,036	10,977
Equity	5,486	5,880	5,591
Lease liabilities	1,028	1,128	1,104
Interest-bearing liabilities	1,654	2,048	1,414
Non-interest-bearing liabilities	3,113	2,980	2,868

Cashflow from operations

• Cash flow from operations of 286 MNOK in the second quarter 2021 (123 MNOK in second quarter 2020)

Solidity and gearing

49% equity ratio
NIBD/EBITDA (Rolling 12 months)
- o 0.6x without IFRS 16 / 0.9x including IFRS 16
o Dividend of 3.00 NOK/share paid out in May 2021

TOMRA has a solid financial position

Weighted average debt maturity of 2.5 years
All interest-bearing is swapped to EUR and is exposed to EUR/NOK exchange rate fluctuations.

Not including 300MNOK cash-pool overdraft facility

Debt maturity profile Current funding sources

TOMRA has a satisfactory liquidity situation with available unused credit lines of approx. 876 MNOK
Senior unsecured bonds (no financial covenants) of 1 000 MNOK (swapped to EUR) are listed on Oslo Stock Exchange
The financial covenant related to the bank debt is minimum equity ratio of 30 %

Outlook

Collection Solutions	• High activity related to preparation for new markets • Quarterly performance will be dependent upon timing of new initiatives
Recycling/Mining	• Positive momentum assumed to continue • In the short term, the COVID-19 situation could still have some negative effects
Food	• Good momentum, some short-term challenges from COVID-19 • Mid and long-term opportunities in both the fresh and processed food segments
Currency	• Reporting in NOK and with some NOK cost base, TOMRA will in general benefit from a weak NOK, particularly measured against EUR • With significant revenues in USD and costs in EUR, TOMRA Food is exposed to USD/EUR

A decade of growth and value expansion

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Disclaimer

This Document (which may be a presentation, video, brochure or other material), hereafter called Document, may include and be based on, inter alia, forward-looking information and statements that are subject to risks and uncertainties that could cause actual results to differ. The content of this Document may be based on current expectations, estimates and projections about global economic conditions, including the economic conditions of the regions and industries that are major markets for TOMRA Systems ASA and its subsidiaries and affiliates. These expectations, estimates and projections are generally identifiable by statements containing words such as "expects", "believes", "estimates" or similar expressions, if not part of what could be clearly characterized as a demonstration case. Important factors that could cause actual results to differ materially from those expectations include, among others, changes in economic and market conditions in the geographic areas and industries that are or will be major markets for TOMRA Systems ASA. Although TOMRA Systems ASA believes that its expectations and the Document are based upon reasonable assumptions, it can give no assurance that those expectations will be achieved or that the actual results will be as set out in the Document. TOMRA Systems ASA does not guarantee the accuracy, reliability or completeness of the Document, and TOMRA Systems ASA (including its directors, officers and employees) accepts no liability whatsoever for any direct or consequential loss arising from the use of this Document or its contents. TOMRA Systems ASA consists of many legally independent entities, constituting their own separate identities. TOMRA is used as the common brand or trademark for most of these entities. In this Document we may sometimes use "TOMRA", "TOMRA Systems", "we" or "us" when we refer to TOMRA Systems ASA companies in general or where no useful purpose is served by identifying any particular TOMRA Company