TOMRA Systems — Environmental & Social Information 2022

Dec 19, 2022

TOMRA initiates EUR 50-60 million investment in plastic feedstock sorting

TOMRA initiates EUR 50-60 million investment in plastic feedstock sorting

TOMRA announced today that the Board of Directors has made a positive investment

decision for the construction of a sorting facility for post-consumer plastic

material.

TOMRA seeks to enable closing the quantity and quality gaps in plastic recycling

by producing high quality plastic fractions out of plastic waste that is

typically lost to incineration and landfill. The output material can be used by

recyclers to produce flakes and pellets for applications such as packaging

material.

Starting from 2019, TOMRA has worked on developing the concept of high-quality

sorting of both separate source and mixed waste plastic at a demo facility in

Lahnstein, Germany. Here, by bringing together innovative but existing

technologies and processes, TOMRA showed that high-quality, market-ready

recyclate production was possible, regardless of the source of input material.

"Millions of tons of plastic are lost to incineration and landfill every year.

In addition, there is an increasing demand for recycled plastics both from

chemical and mechanical recyclers. Our goal is to use our expertise in sorting

to contribute to closing the circularity gap for plastics and transforming mixed

plastic waste into valuable feedstock for recyclers.", says Dr. Volker Rehrmann,

EVP of TOMRA Recycling.

TOMRA will initiate an investment of EUR 50-60 million in building a mid-scale

plant in Germany. The plant is expected to be operational between 2024 and 2025

and have a yearly capacity of 80 000 tons. The plant will be built in an

existing facility which will be rented on a long-term basis. The capital

investment consists primarily of machinery and equipment.

TOMRA will source pre-sorted mixed post-consumer plastic material otherwise lost

to landfill and incineration and upgrade it via a splitting and grading process

at the TOMRA facility. The output will consist of over 10 different polymer

fractions, both flexible and rigid plastics, which will be sold to recyclers to

be used in mechanical and chemical recycling processes. We target profitability

levels comparable with the rest of the business and capital return levels in the

low double digits given the size of the facility being mid-scale.

"The urgency has never been greater to make a meaningful impact in the

transition towards a circular economy. In June this year we presented our

updated strategy and an ambition to employ the know-how and positioning of TOMRA

to capture opportunities in this space" says Tove Andersen, President and CEO,

TOMRA. "The investment we are now making in plastic feedstock sorting is aimed

at closing the loop on plastics and reducing dependency on primary resources."

At the end of Q3 2022 the company had NOK 660 million in cash, NOK 1,426 million

of net interest-bearing debt and 48% equity ratio. A significant part of the

capital investment will take place in 2023, hence the Board considers the

company to be well capitalized to initiate the investment.

TOMRA Systems ASA

Asker, 19 December 2022

For further inquiries, please contact:

Eva Sagemo, CFO +47 934 39 911

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

**This information is considered to be inside information pursuant to the EU

Market Abuse Regulation (EU) No 596/2014 and is subject to the disclosure

requirements pursuant to Section 5-12 the Norwegian Securities Trading Act.