TOMRA Systems

Earnings Release • Apr 26, 2024

TOMRA: 1Q 2024 - Strong quarter in Collection; Recycling and Food profitability impacted by low volumes

TOMRA: 1Q 2024 - Strong quarter in Collection; Recycling and Food profitability impacted by low volumes

TOMRA, the global technology leader in sensor-based solutions for optimal

resource productivity, announces its financial results for the first quarter of

Revenues for the Group amounted to 3,322 MNOK in the quarter, in line with the

first quarter last year. Collection delivered strong revenues of 2,153 MNOK, an

increase of 15% (currency adjusted). In Recycling, revenues declined 16%

(currency adjusted) to 529 MNOK. This is in line with the estimated backlog

conversion ratio for the quarter which is impacted by a higher share of large

projects with longer lead times. In Food, revenues were impacted by seasonal

variation in combination with a soft order intake in the third quarter 2023 and

declined 15% (currency adjusted) to 688 MNOK.

The combination of low backlog conversion and solid order intake of 881 MNOK and

924 MNOK for Recycling and Food respectively in the quarter has resulted in a

record high order backlog of 2,839 MNOK for the two divisions combined.

Gross margins for TOMRA Group ended at 40% in the quarter, in line with the

margin in the first quarter last year. Gross margin improvements in Collection

from 38% to 40% were offset by a lower margin in Recycling due to lower volumes.

The gross margin in Recycling declined to 48% from 51% compared to last year

while it was unchanged in Food at 37%.

Operating expenses in the quarter were 1,157 MNOK, which is in line with the

fourth quarter last year. This excludes one-off costs of 18 MNOK in the quarter

which relate to the ongoing cost reduction program in Food.

EBITA, adjusted for one-off costs, amounted to 176 MNOK in the first quarter,

which is a decrease from 277 MNOK last year.

Earnings per share excluding one-off costs amounted to 0.10 NOK in the first

quarter, compared to 0.42 NOK last year.

Highlights 1Q 2024

(all growth figures are from the first quarter last year and adjusted for

currency if not otherwise stated)

· Revenues amounted to 3,322 MNOK in TOMRA Group, in line with last year

· Revenue growth of 15% in Collection, but down 16% in Recycling and down 15%

in Food

· Gross margin of 40.1%, in line with last year's 40.2%

· Operating expenses of 1,157 MNOK, adjusted for 18 MNOK in one-off costs

related to the Food restructuring program, in line with the level in the

previous quarter

· EBITA was 176 MNOK adjusted for food restructuring costs, and 158 MNOK

including these costs

· Cash flow from operations was 228 MNOK

· Recycling order intake declined 12% while the backlog increased 9% to 1,459

MNOK - its highest level on record

· Food order intake declined 12% while the backlog increased 8% to 1,380 MNOK-

its second highest level on record

Tove Andersen, President and CEO of TOMRA Systems ASA comments:

"The first quarter was another strong quarter for our Collection division with

continued high activity in new deposit return scheme (DRS) markets including

Romania, Victoria (AUS), Hungary, and Ireland. We are also experiencing a lot of

customer interest for our new reverse vending machines (RVMs) - the R2 multi

-feed machine and the RollPac backroom solution - which we believe will set a

new standard in the market. In Recycling and Food, revenues came in low as

estimated by the backlog conversion ratio, which resulted in low profitability

in the quarter and an EBITA margin of 5% for the Group.

Looking ahead, we have a record high order backlog to deliver on in Recycling

and Food combined, new DRS markets that have announced commencements in late

2024 and early 2025, and an exciting new technology portfolio to offer our

customers in all three divisions. We are also pleased to announce two

significant offtake agreements for TOMRA Feedstock with OMV and Borealis, to

supply them with a stable flow of material for their recycling processes. This

demonstrates the opportunities that lie ahead of us when industry leaders come

together. Combined with a political will in the EU to adopt new legislation for

increased circularity, important steps are being taken to enable a world without

waste - in line with our mission at TOMRA to transform how we obtain, use and

reuse our world's resources."

Webcast:

President & CEO Tove Andersen and CFO Eva Sagemo will present the results today

at 08:00 CEST. The presentation and Q&A session will be sent via live webcast

and will be available on demand shortly after the presentation:

https://channel.royalcast.com/landingpage/hegnarmedia/20240426_2/

Analysts and investors who would like to actively participate in the live Q&A

session must register separately for the TEAMS webinar:

https://events.teams.microsoft.com/event/1216268d-d7a2-4c2a-9ced

-c74fa3f74d4d@4308d118-edd1-4300-8a37-cfeba8ad5898

Asker, 26 April 2024

TOMRA Systems ASA

For further information, please contact:

Eva Sagemo, CFO

Tel: +47 934 39 911

Daniel Sundahl, Head of Investor Relations

Tel: +47 913 61 899

TOMRA developes solutions that enable circular economies and optimal resource

productivity through automated identification, collection, grading, and sorting

of resources. We optimize how resources are obtained, used, and reused - turning

waste into valuable resources. Our vision is to lead the resource revolution and

enable a world without waste.

TOMRA has more than 110,000 installations in over 100 markets worldwide and had

total revenues of NOK 14.8 billion in 2023. The Group employs 5,400 people

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

further information about TOMRA, please visit www.TOMRA.com

This information is subject to the disclosure requirements pursuant to section 5

-12 of the Norwegian Securities Trading Act.