TOMRA Systems — Earnings Release 2022

Jul 15, 2022

TOMRA: 2Q 2022 - All-time high revenues, order intake, and order backlog

TOMRA: 2Q 2022 - All-time high revenues, order intake, and order backlog

TOMRA ended the second quarter of 2022 with continued quarter over quarter

growth and record high revenues. The order intake was all-time high, leading to

a new record in the order backlog.

Revenues in the second quarter 2022 amounted to 3,054 MNOK compared to 2,685

MNOK in second quarter last year. Currency adjusted revenues were up 10% for

TOMRA Group. At division level, currency adjusted revenues were up 6% in

Collection, up 25% in Recycling, and up 7% in Food.

Gross margin was 42% in the second quarter 2022, down from 45% in the same

period last year, with lower margins in Collection and Recycling, and higher

margins in Food. Supply chain challenges and inflation have continued to be a

pressure point in the short term, while mitigating actions are being implemented

across the organization.

Operating expenses amounted to 841 MNOK in second quarter 2022, compared to 746

MNOK in second quarter last year, up 11% currency adjusted.

EBITA was 438 MNOK in second quarter 2022, down from 465 MNOK in the same period

last year.

Cash flow from operations was 310 MNOK in second quarter 2022, compared to 286

MNOK in second quarter last year.

"The good momentum at the beginning of the year has continued in the second

quarter of 2022. Implementation of new and extended deposit systems, demand for

recycled material, and automation in the food value chain generate good growth

opportunities. There is high activity level and pipeline building with the

reopening of country borders, in-person trade fairs, and sales events. At the

same time, we have set ambitious targets to double our business over five years

and will continue to invest in future-oriented activities and in developing new

opportunities.", says Tove Andersen, TOMRA President and CEO.

Collection: All-time high revenues, while component cost and inflation put

pressure on margins

Revenues in the business area equaled 1,519 MNOK in second quarter 2022, up from

1,379 MNOK in the same period last year. After adjustment for currency changes,

revenues were up 10%.

The momentum has been good in the period. European sales were close to last year

levels, where new sales in Romania contributed positively. North American

volumes had a positive development, whereas in Australia heavy rainfalls had a

somewhat negative impact on volume levels.

Gross margin was 38% in the first quarter 2022, from 44% in the same period last

year. The lag between cost inflation and price increases impacts negatively and

accounts for the largest portion of the margin variance. In addition, product

and business mix had a negative effect in the quarter compared to the same

period last year.

Operating expenses equaled 347 MNOK in second quarter 2022, compared to 325 MNOK

in the same period last year.

EBITA was 225 MNOK in the period, down from 278 MNOK in second quarter 2021.

Recycling: Top line growth of 25%, all-time high order intake and order backlog

Revenues equaled 552 MNOK in second quarter 2022 compared to 439 MNOK in the

same period last year, up 25% currency adjusted.

Gross margin was 49% in second quarter 2022, down from 53% in second quarter

2021, negatively impacted by sourcing costs and inflationary pressure and a less

favorable product mix compared to the same period last year.

Operating expenses amounted to 172 MNOK in second quarter 2022 compared to 140

MNOK in the same period last year, mainly the result of business expansion and

higher marketing and sales activities.

EBITA was 100 MNOK in second quarter 2022, compared to 94 MNOK in the same

period last year.

The order intake was 675 MNOK in second quarter 2022, up 19% currency adjusted

from the same quarter last year and all-time high. The order backlog increased

to 980 MNOK at the end of second quarter 2022 from 822 MNOK in the same period

last year, up 17% currency adjusted and all-time high.

There is continued high demand for recycled materials. The waste sorting and

plastic segment continues to drive order intake growth, and elevated price

levels for commodities sustain a strong momentum in metals recycling and

upgrading.

Food: All-time high revenues and order backlog, positive margin development

Revenues equaled 983 MNOK in second quarter 2022, compared to 867 MNOK in the

same period last year, up 7% adjusted for currencies.

Gross margin was 44% in second quarter 2022, up from 43% in the same period last

year. Increased sales volumes, as well as pricing measures and a favorable

product and project mix have had a positive effect in the period.

Operating expenses amounted to 283 MNOK in the period, compared to 252 MNOK in

second quarter last year.

EBITA was 151 MNOK in second quarter 2022, compared to 122 MNOK in the same

period last year.

Order intake was 1,043 MNOK in second quarter 2022, compared to 881 MNOK in the

same quarter last year, up 12% currency adjusted, and all-time high.  The order

backlog increased to 1,380 MNOK at the end of second quarter 2022, up 12%

currency adjusted from end of second quarter 2021, and all-time high.

Food sustains a good momentum on the back of good market demand and increased

labor costs supporting investments in automation. The demand signals are good in

both the fresh food and processed food segments.

Asker, 15 July 2022

TOMRA Systems ASA

For questions, please contact:

Eva Sagemo, CFO: +47 934 39 911

Georgiana Radulescu, VP Head of IR: +47 941 01 643

Webcast link:

https://events.webcast.no/tomra/kvartalspresentasjoner/9FOGzllRpt3fnfIFY4Hr

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 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 approximately 100,000 installations in over 80 markets worldwide and

had total revenues of ~10.9 billion NOK in 2021. The Group employs ~4,600

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

further information about TOMRA, please see www.tomra.com