TOMRA Systems — Earnings Release 2024

Feb 14, 2025

4 th quarter 2024 results announcement

TOMRA Systems ASA 14 February 2025 © TOMRA

Quarterly highlights

Financial highlights

Revenues	• Total revenue of 398 MEUR (354 MEUR in 4Q 2023). Compared to 4Q 2023 revenues were: ‐ Up 12% for TOMRA Group ‐ Up 2% in Collection ‐ Up 37% in Recycling ‐ Up 13% in Food
Gross margin	• Gross margin at 46% (44% in 4Q 2023) ‐ Strong volumes in Recycling and COGS savings in Food
Operating expenses	• Operating expenses of 103 MEUR adjusted for special items (102 MEUR in 4Q 2023)
EBITA, adj.	• EBITA, adjusted for special items of 78 MEUR (53 MEUR in 4Q 2023)
Special items	• One-off costs of 3 MEUR relating to Food restructuring (32 MEUR in 4Q 2023 incl. cyberattack)
Cash flow	• Cash flow from operations of 83 MEUR (113 MEUR in 4Q 2023)
Order intake and backlog	• Recycling order intake of 76 MEUR (66 MEUR in 4Q 2023) and order backlog of 107 MEUR (99 MEUR in 4Q 2023) • Food order intake of 85 MEUR (95 MEUR in 4Q 2023) and order backlog of 108 MEUR (102 MEUR in 4Q 2023)
Dividend	• Dividend of NOK 2.15 per share proposed by the Board (NOK 1.95 for 2023) - Payout ratio of 58% of EPS
Other	• Acquisition of leading digital waste management solution provider c-trace

Collection Business update

• Record revenues in the quarter, driven by strong sales in both existing and new markets.
• New markets: High activity in preparation for Austria's system launch on 1 January 2025. Activity level continues in Romania, increasing in Poland.
• Existing markets: Strong growth in Australia and North America.
• All-time high full year revenues and EBITA in 2024, with improved gross margin and EBITA margin.

Record high revenues up 2% compared with 4Q 2023

Poland – 1 October 2025 In an amended act, Poland set a new commencement date for their deposit return system to 1 October 2025 (link).

Tasmania – 1 May 2025

TOMRA has been appointed sole reverse vending solutions provider for the upcoming deposit return system (link).

Greece – 1 December 2025

Amendments were made to Greece's waste management law in October , setting December 2025 as the new launch date. In February 2025, additional secondary DRS legislation was signed into law by the Minister of Environment and the Minister of Economy (link). A system operator is yet to be assigned.

Portugal – 1Q 2026

Portugal has licensed SDR as system operator of the upcoming deposit return system, with effect from 1 January 2026 (link). A formal commencement date has not been set.

Singapore – 1 April 2026

In March 2023, the parliament passed legislation for a deposit return system. The system operator has been licensed with launch date 1 April 2026. (link).

Uruguay – (2026)

A deposit return system is in process of implementation. Originally planned to commence by the end of 2024 (link), an updated start date is yet to be announced (link).

Spain – November 2026

In November 2024, Spain announced that it will introduce a deposit return system within years in accordance with its waste management law 'LRSCEC', due to the country's insufficient collection volumes (link).

United Kingdom – October 2027

In January 2025, the UK government passed a DRS legislation for England and Northern Ireland. The planned commencement date is 1 October 2027 (link). Scotland is in the process of adapting their DRS regulation accordingly.

Recycling Business update

• Record revenues and EBITA in the quarter on successful delivery on order book.
• Strong order intake in the quarter and solid order backlog.
• Soft market sentiment continues in European plastics recycling, stable activity in waste sorting, and increased activity in aluminum.
• For the full year 2024, Recycling delivered in line with record strong figures in 2023.
• Adoption of the Packaging and Packaging Waste Regulation in EU marks a significant move towards boosting recycling rates.

Strong order intake up 15% compared with 4Q 2023

Price development (illustrative) of virgin PET and recycled PET (rPET)

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

Food Business update

• Strong quarter with revenue growth of 13% compared to 4Q 2023
• Further cost savings realized in the quarter; cost savings program completed.
  • 20% FTE reduction
  • Production site closures completed in Hamilton and Auckland (NZ)
  • 30 MEUR in annual run rate savings
• Signs of improved market sentiment. Strong global momentum remains in potatoes, increased market activity in citrus.

Successful profitability recovery

EBITA adj. margin, %

Aarhus findings after one year of piloting Horizon Business update

• TOMRA Feedstock: Norwegian plant nearing completion. Commissioning planned in Q2 2025.
• TOMRA Reuse: Celebrating one year of piloting in Aarhus, Denmark with high user satisfaction rates. Collaboration agreement signed with Lisbon City Council and the Portuguese Association for Hotels, Restaurants and Catering Establishments (AHRESP).
• TOMRA Textiles: Decision not to pursue alternative business model for now. TOMRA remains committed to support the industry in developing a circular textile value chain with technology development continuing in TOMRA Recycling.
• C-trace acquisition announced 24 October 2024. Integration progressing according to plan. Strong fourth quarter results.

TOMRA Reuse

Financials and outlook

[EUR millions] Group P&L Highlights

	4th Quarter		Full Year
Amounts in EUR million	2024	2023	2024	2023
Revenues	398	354	1,348	1,288
Collection	203	198	773	697
Recycling	103	75	266	270
Food	ਰੇ 1	81	311	320
Gross contribution	181	155	584	548
in %	46%	44%	43%	43%
Operating expenses	103	102	403	387
EBITA, adj.	78	ਦੇਤੋ	181	162
in %	20%	15%	13%	13%
Special items*	-3	-32	-5	-43
EBITA	75	21	176	119
in %	19%	6%	13%	9%

Revenues Gross margin [% of Revenues] [EUR millions] EBITA (and EBITA adj.)

* Includes Food restructuring and cyberattack costs

Collection P&L Highlights

Northern Europe
e Northern Europe
North America
of the world Rest
Opera ng e penses

Recycling P&L Highlights

Europe
Americas
Asia
of the world Rest
Opera ng e penses

Food P&L Highlights

Europe
Americas
Asia
of the world Rest
Opera ng e penses
items Special	‐	‐	‐	‐

*Food restructuring costs

Balance sheet and cash flow

ntangible non‐current assets
angible non‐current assets
inancial non‐current assets
nventory
Receivables
Cash and cash e uivalents
E uity
liabili es Lease
nterest‐bearing liabili es
Non‐interest‐bearing liabili es

Cashflow from operations

• Cash flow from operations of 83 MEUR in 4Q 2024 (113 MEUR in 4Q 2023)

Solidity and gearing

• 38% equity ratio
• NIBD/EBITDA (rolling 12 months) of 1.6x

Financial position

Outlook

Collection	• High activity related to new and expanding markets. • Quarterly performance will be dependent upon timing of new initiatives.
Recycling	• Regulation and demand for recycled materials is expected to create attractive growth opportunities. • Currently softer market sentiment in plastics recycling leading to slower short term growth. • Based on the order backlog at the end of the fourth quarter, a 45% conversion ratio is estimated to be recognized as revenues in the first quarter.
Food	• Need for automation and increased quality and safety requirements create opportunities mid and long term. • Challenging macroeconomic environment is delaying customer investments. • Based on the order backlog at the end of the fourth quarter, a 65% conversion ratio is estimated to be recognized as revenues in the first quarter.
Other	• Capital expenditures from Horizon activities of approx. 40 MEUR are expected in 2025, primarily related to TOMRA Feedstock.
Currency	• OMRA's global operations e poses the financial results to currency fluctuations. TOMRA will generally benefit from a stronger USD due to the revenue exposure.

Copyright

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Disclaimer

This Document (which may be a presentation, video, brochure or other material), includes and may be based on forward-looking information and statements that are subject to unknown risks and uncertainties that could cause actual results to differ materially from any projections of future performance or result expressed or implied by such forward-looking statements. The content of this Document is based on current management 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 "e pects", "believes", "estimates", "anticipates", "intends", "goals", "strategy" or similar expressions, if not part of what could be clearly characterized as a demonstration case, although not all forward-looking statements contain such terms. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of our control. 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 guarantee or assurance that those expectations will be achieved, or that future results or events will be consistent with any such opinions, forecasts, or estimates. TOMRA Systems ASA does not guarantee the accuracy, reliability, or completeness of the Document, neither expressed or implied, and no reliance should be placed on it. Except as required by applicable securities laws, we undertake no obligation to update or revise these statements based on new information, future developments or otherwise. TOMRA Systems ASA (including its directors, officers and employees) assumes no liability related to 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 " OMRA", " OMRA Systems", "we" or "us" when we refer to TOMRA Systems ASA companies in general or where no useful purpose is served by identifying any TOMRA Company.

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