TOMRA Systems

Earnings Release • May 7, 2025

1 st quarter 2025 results announcement

TOMRA Systems ASA 7 May 2025 © TOMRA

Quarterly highlights

Financial highlights

Revenues	• Total revenue of 306 MEUR (291 MEUR in 1Q 2024). Compared to 1Q 2024 revenues were: ‐ Up 5% for TOMRA Group ‐ Down 2% in Collection ‐ Down 1% in Recycling ‐ Up 16% in Food
Gross margin	• Gross margin at 43% (40% in 1Q 2024) ‐ improved margin in Collection and higher volumes and cost savings in Food
Operating expenses	• Operating expenses of 104 MEUR (101 MEUR in 1Q 2024, adj. for special items)
EBITA	• EBITA of 26 MEUR (15 MEUR in 1Q 2024, adj. for special items)
Special items	• No one-off items. (-1.6 MEUR in 1Q 2024 related to Food restructuring)
Cash flow	• Cash flow from operations of 65 MEUR (19 MEUR in 1Q 2024)
Order intake and backlog	• Recycling order intake of 61 MEUR (73 MEUR in 1Q 2024) and order backlog of 122 MEUR (125 MEUR in 1Q 2024)
	• Food order intake of 87 MEUR (76 MEUR in 1Q 2024) and order backlog of 125 MEUR (118 MEUR in 1Q 2024)

Collection Business update

• Revenue growth in all regions except Europe (ex Northern) where 1Q24 was a particularly strong comparable quarter due to Romania, Hungary and Ireland DRS launch.
• New markets: Slow down in Austria after DRS launch on 1 January 2025; record strong revenues in Romania.
• Existing markets: Continued good growth from expansions and new technology.
• Continued gross margin and EBITA margin improvement.
• Successful Tasmania DRS launched on 1 May 2025

Stable revenues despite lower new market activity

Poland – 1 October 2025

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

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Greece – 1 December 2025

In February 2025, 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 2 years in accordance with its waste management law 'LRSCEC' (link).

United Kingdom – October 2027

In January 2025, the UK government passed a DRS law for England and Northern Ireland (link). Scotland is in process of aligning its legislation accordingly. On 6 May 2025, UK DMO was announced as the system operator (link).

Recycling Business update

• Revenues in line with 1Q24, after record high activity in 4Q24.
• Low order intake in the quarter, but order backlog remains solid.
• Continued growth in service and positive momentum continues in metals recycling.
• European plastics recycling market remains soft and macroeconomic uncertainty is delaying customers' investment decisions.

Solid order backlog

GAINnext crowned Recycling Machinery Innovation of the Year at the Plastics Recycling Awards Europe

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 in Europe and South America.
• Profitability improving according to plan.
• Strong quarterly order intake driven by vegetables and potatoes.
• Improving market sentiment, but macroeconomic uncertainty may impact customers' investment sentiment.

Strong order intake growth of 13%

Horizon Business update

• TOMRA Feedstock: Norwegian plant has been named "Områ" and is now in its commissioning phase.
• TOMRA Reuse: Continued piloting, product and business development ongoing.
• C-trace: contract signed with OLO Bratislava to bring nextlevel digitalization to the city's waste collection through integrated RFID tracking, fleet management, and automated route planning.

TOMRA Reuse

Contract signing with OLO Bratislava

TOMRA Feedstock

Norwegian plant Områ

Tariff update: ~15% of TOMRA Group revenues are exposed to imports of goods to the United States

First order effects - limited

Gross margin shortfall estimated to max 1%-point if EU tariffs go to 20% and China tariffs at 145%. Contractual terms with customer regulate risk burden

Second order effects

Growth risk

Tariff uncertainty and lower GDP growth may reduce and delay Recycling and ood customers' investments. OMRA's global customer base and diversified segment exposure balances growth risk. Collection is deemed to be largely unaffected.

A strengthening/weakening of EUR toward other currencies of 10% would normally decrease/increase EBITA by ~5%. A currency hedging strategy is in place for future predicted cashflow to mitigate effects.

Opportunities

Focus on supply security and reduced global trade increases the need for more recycled material and other circular solutions. Changes in trade flows of food creates new export markets which drive demand for food grading and sorting.

Financials and outlook

[EUR millions] Group P&L Highlights

Collec on
Recycling
ood
Opera ng e penses
Special items		‐

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

Collection P&L Highlights

orthern Europe
(e orthern Europe
orth America
o the world Rest
Opera ng e penses

Revenues [EUR millions] Gross margin [% of Revenues] EBITA [EUR millions]

Recycling P&L Highlights

Europe
Americas
Asia
o the world Rest
Opera ng e penses

Revenues [EUR millions] Gross margin [EUR millions] EBITA [EUR millions] Order intake [EUR millions] Order backlog [EUR millions] ‐

Food P&L Highlights

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

*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
on‐interest‐bearing liabili es

Cashflow from operations

• Cash flow from operations of 65 MEUR in 1Q 2025 (19 MEUR in 1Q 2024)

Solidity and gearing

• 38% equity ratio

• NIBD/EBITDA (rolling 12 months) of 1.6x

Financial position

Outlook

Collection . • High activity related to new markets and growth in existing 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, increased macroeconomic uncertainty and trade tensions lead to slower short-term growth. • Based on the order backlog at the end of the first quarter, a 50% conversion ratio is estimated to be recognized as revenues in the second quarter. Food • Need for automation and increased quality and safety requirements create opportunities mid and long term. • Improving market sentiment. However, renewed macroeconomic uncertainty may impact customers' investment willingness. • Based on the order backlog at the end of the first quarter, a 75% conversion ratio is estimated to be recognized as revenues in the second 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 inancial results to currency luctuations. 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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