TOMRA Systems — Interim / Quarterly Report 2014

Jul 18, 2014

18.07.2014

HIGHLIGHTS

2Q 2014

• Revenues of 1,187 MNOK (1,177 MNOK in second quarter 2013). Currency adjusted revenues were:
• Down 3% for TOMRA Group
• Down 1% in TOMRA Collection
• Down 8% in TOMRA Sorting
• Gross margin 43%, up from 42% in second quarter 2013
• Stable margin in TOMRA Collection
• Improved margin in TOMRA Sorting
• Operating expenses of 348 MNOK (323 MNOK in second quarter 2013)
• Up 2% adjusted for currency and one-time costs
• EBITA of 156 MNOK (172 MNOK in second quarter 2013) — Including 13 MNOK one-time cost
• Cash flow from operations of 136 MNOK (120 MNOK in second quarter 2013)
• Order intake of 502 MNOK in TOMRA Sorting, compared to 419 MNOK same period last year
• All time high order backlog of 615 MNOK in TOMRA Sorting, up from 574 MNOK at the end of first quarter 2014

1H 2014

• Revenues of 2,252 MNOK (2,143 MNOK in first half 2013). Currency adjusted revenues were:
• Down 1% for TOMRA Group
• Up 1% in TOMRA Collection
• Down 5% in TOMRA Sorting
• Gross margin 43%, unchanged from first half 2013
• Unchanged in TOMRA Collection
• Unchanged in TOMRA Sorting
• Operating expenses of 704 MNOK (637 MNOK in first half 2013)
• Up 1% adjusted for currency and one-time costs
• EBITA of 262 MNOK (285 MNOK in first half 2013) — Including 25 MNOK one-time cost
• Cash flow from operations of 149 MNOK (132 MNOK in first half 2013)

CONSOLIDATED FINANCIALS

Second quarter

Revenues in the second quarter 2014 amounted to 1,187 MNOK compared to 1,177 MNOK in second quarter last year. Revenues in TOMRA Collection increased by 4% (down 1% currency adjusted), while revenues in TOMRA Sorting were down 4% (down 8% currency adjusted).

Gross margin was 43% in the quarter, up from 42% in the corresponding period last year, explained by improved margins in TOMRA Sorting.

Operating expenses increased from 323 MNOK in second quarter 2013 to 348 MNOK in second quarter 2014, including a one time integration cost of 13 MNOK in TOMRA Sorting. Adjusted for currency (stronger EUR and USD vs NOK) and one-time costs, operating expenses increased by 2%.

EBITA was 156 MNOK in second quarter 2014 versus 172 MNOK in the second quarter 2013.

Cash flow from operations in second quarter 2014 equaled 136 MNOK, up from 120 MNOK in second quarter 2013.

First half

Revenues in first half 2014 amounted to 2,252 MNOK compared to 2,143 MNOK in first half last year. Revenues in TOMRA Collection increased by 8% (up 1% currency adjusted), while revenues in TOMRA Sorting were flat (down 5% currency adjusted).

Gross margin was 43% in first half 2014, unchanged from the corresponding period last year.

Operating expenses increased from 637 MNOK in first half 2013 to 704 MNOK in first half 2014, including a one time integration cost of 25 MNOK in TOMRA Sorting. Adjusted for currency and one-time costs, operating expenses increased by 1%.

EBITA was 262 MNOK in first half 2014 versus 285 MNOK in first half 2013.

Cash flow from operations in first half 2014 equaled 149 MNOK, compared to 132 MNOK in same period last year.

TOMRA Group Financials
(MNOK)	2Q14	2Q13	1H14	1H13
Revenues
- Nordic	141	155	273	286

- Nordic	141	155	273	286
- Central Europe & UK	450	452	856	798
- Rest of Europe	54	25	111	56
- North America	444	435	827	797
- Rest of World	98	110	185	206
Total revenues	1 187	1 177	2 252	2 143
Gross contribution	504.4	495	966	922
- in %	43 %	42 %	43 %	43 %
Operating expenses	348	323	704	637
EBITA	156.4	172	262	285
- in %	13 %	15 %	12 %	13 %
Incl. integration/ onetime costs
- In operating exp.	13	8	25	8

The equity ratio decreased from 50 % at year end 2013 to 47% at the end of June 2014, positively influenced by earnings in 2014 but negatively influenced by a dividend of 200 MNOK paid out in May 2014 (NOK 1.35 per share).

Net interest bearing debt increased by 150 MNOK during the same period, due to the dividend payment. At the end of second quarter 2014 NIBD/EBITDA on a rolling 12 month basis was equal to 1.8.

BUSINESS AREA REPORTING

TOMRA Collection Solutions

Second quarter

Revenues in the business area equaled 726 MNOK in the second quarter, up from 699 MNOK in second quarter last year. After adjustment for currency changes, revenues were down 1%.

Gross margin was stable at 42%.

Operating expenses were up 2%, currency adjusted.

EBITA was MNOK 129, up from 127 MNOK, due to the positive currency impact.

First half

Driven by stronger USD and EUR vs NOK, the business area reported a revenue growth of 8% in first half 2014, compared to same period last year. After adjustment for currency changes, revenues were up 1%.

Gross margin was stable at 42%.

Operating expenses were up 1%, currency adjusted.

EBITA was 239 MNOK, up from 219 MNOK last year, due to higher revenues.

Technology

At the end of third quarter 2013, TOMRA announced the launch of T-9, the first of a new generation of reverse vending machines (RVM) based on TOMRA Flow Technology. T-9 features the first ever 360 degree recognition system applied inside an RVM and enables faster and cleaner collection of beverage containers, also including containers that until now could not be collected in RVMs.

Market acceptance has been good, and TOMRA expects a significant share of orders received in the coming quarters to be on this new high-end platform.

North America

Revenues in second quarter was up 3% measured in local currencies, fuelled by higher activity within the material recovery business stream. The activity within the RVM business stream has been stable, measured against second quarter last year, but improved versus first quarter 2014, which was negatively influenced by severe weather on the east coast.

TOMRA Collection Solutions

(MNOK)	2Q14	2Q13	1H14	1H13
Revenues
- Nordic	138	145	268	272
- Central Europe & UK	286	276	582	516
- Rest of Europe	9	3	15	6
- North America	281	267	518	492
- Rest of World	12	8	19	11
Total revenues	726	699	1 402	1 297
Gross contribution	302	291	590	546
- in %	42 %	42 %	42 %	42 %
Operating expenses	173	164	351	327
EBITA	129	127	239	219
- in %	18 %	18 %	17 %	17 %

Europe

Currency adjusted revenues in second quarter were down 4% in Europe, with somewhat slower sales in both Nordic and Central Europe. Gross margin was stable.

BUSINESS AREA REPORTING

TOMRA Sorting Solutions

Second quarter

Revenues in the quarter decreased by 4% compared to same quarter in 2013. Adjusted for currency effects, revenues were down 8%.

Gross margin increased from 43% in second quarter 2013 to 44% in second quarter 2014, with the negative impact of a stronger EUR vs USD being offset by better product and market mix. Operating expenses increased in the same period from 153 MNOK to 168 MNOK, negatively influenced by integration costs of 13 MNOK in second quarter 2014 (versus 8 MNOK in second quarter 2013). Adjusted for integration cost and currency, operating expenses were up 1%.

EBITA decreased from 51 MNOK in second quarter 2014 to 34 MNOK in second quarter 2014.

First half

Revenues in first half 2014 were stable compared to same period in 2013. Adjusted for currency effects, revenues were down 5%.

Gross margin was stable at 44% in first half 2014 compared to first half 2013, with the negative impact of a stronger EUR vs USD being offset by better product and market mix. Operating expenses increased in the same period from 298 MNOK to 339 MNOK, negatively influenced by integration costs of 25 MNOK in first half 2014 (versus 8 MNOK in first half 2013). Adjusted for integration cost and currency, operating expenses up 1%.

EBITA decreased from 78 MNOK in first half 2013 to 37 MNOK in first half 2014.

Post merger integration

TOMRA Sorting has been executing an integration plan for improving operational efficiency and productivity.

This includes centralizing all process analytics activities in Belgium (moving it from Ireland, Germany and Norway), relocating F&A activities from Ireland to Belgium, centralizing Service for Benelux in Belgium and a proposal to move production from Belgium to Slovakia. The process should be completed by the end of 2014.

TOMRA Sorting Solutions
(MNOK)	2Q14	2Q13	1H14	1H13
Revenues
- Nordic	3	10	5	14
- Central Europe & UK	164	176	274	282
- Rest of Europe	45	22	96	50
- North America	163	168	309	305
- Rest of World	86	102	166	195
Total revenues	461	478	850	846
Gross contribution	202	204	376	376
- in %	44 %	43 %	44 %	44 %
Operating expenses	168	153	339	298
EBITA	34	51	37	78
- in %	7 %	11 %	4 %	9 %
Incl. integration/ onetime costs
- In operating exp.	13	8	25	8

Integration costs of 25 MNOK have been booked in first half 2014 (12 MNOK in first quarter and 13 MNOK in second quarter). The initiatives are assumed to generate savings of close to 30 MNOK per year, starting in 2015.

Order intake TOMRA Sorting

Order backlog TOMRA Sorting

After three consecutive quarters with lower order intake in 2013, the value of signed orders during fourth quarter 2013, first quarter 2014 and second quarter 2014 has increased significantly. Order intake during second quarter 2014 totaled 502 MNOK, up from 419 MNOK during the same quarter last year.

As a consequence of higher order intake and somewhat fewer orders taken to P/L, the order backlog at the end of second quarter 2014 is at an all time high (615 MNOK, up from 574 MNOK at the end of first quarter 2014).

Business streams

Food

Revenues in the Food business stream were lower in second quarter 2014 compared to second quarter 2013, due to lower order backlog at the beginning of the quarter. Reasonable order intake during second quarter 2014 improved the order backlog, ending the quarter with higher backlog than one year ago.

Recycling

Revenues were slightly higher in second quarter 2014 compared to second quarter 2013, due to higher order backlog at the beginning of the quarter.

Order intake has developed positively in waste recycling the last quarters and there have been continuous signs of improvements within this business stream. Activity within metal recycling has however been negatively influenced by lower metal prices over a longer period, and activity remains low.

Mining

As a result of a strategic focus on industrial minerals, gem stones and standard products, Mining experienced a significant increase in order intake in both first and second quarter 2014, compared to the previous eight quarters.

TOMRA signed an agreement with Outotec for supply of sorting solutions for the mining and metallurgical industry. By combining TOMRA's sorting equipment and Outotec's comprehensive application and comminution expertise, customers can be offered energy-efficient process solutions that help them to increase productivity and decrease costs and thereby extend the life of their mining operations, increasing the overall value of their deposit.

MARKET OUTLOOK

The long term demand for better resource productivity is a result of megatrends such as population increase, a growing middle class consumer base and greater urbanization. TOMRA, as a leader in sensor based solutions, is favorably positioned to capitalize on these trends.

TOMRA Collection Solutions

In Collection Solutions, no new markets are expected to generate significant revenues in the coming quarters and activity is consequently assumed to be stable and in line with previous quarters. As usual the second half of the year is expected to be stronger than the first half, for both revenues and profit.

TOMRA Sorting Solutions

The combination of a stronger order intake three consecutive quarters combined with a limited number of orders taken to P/L, has led to an all time high order backlog at the end of second quarter 2014.

Revenues and profit in TOMRA Sorting are consequently expected to improve significantly in second half of 2014, compared to first half 2014.

Currency

Reporting in NOK and with some NOK cost base, TOMRA will in general benefit from a weak NOK, measured particularly against EUR and USD. TOMRA will consequently continue to gain from a strong USD and EUR, provided current exchange rate levels are maintained.

NEW LOAN FACILITY

New loan facility

Tomra entered on 29 April into a 120 MEUR Multicurrency Revolving Credit Facility with DNB and SEB as Mandated Lead Arrangers, each providing 50% of the facility amount.

The facility is split into two tranches of 60 MEUR each, with a tenor of 3+1+1 years and 5+1+1 years. The funds will be used to refinance existing debt and general corporate purposes.

ORDINARY GENERAL MEETING

The annual general assembly took place 29 April at TOMRA's Headquarters in Asker, Norway. All agenda items were approved in accordance with the Board's recommendations, including a dividend of NOK 1.35 per share (up from NOK 1.25 last year).

Board member Bernd Bothe, who resigned after four years service, was replaced by Pierre Couderc. The other board members were re-elected

THE TOMRA SHARE

The total number of issued shares at the end of second quarter 2014 was 148,020,078 shares, including 144,685 treasury shares. The total number of shareholders decreased from 5,894 at the end of first quarter 2014 to 5,854 at the end of second quarter 2014. Norwegian residents held 23% of the shares at the end of second quarter 2014.

TOMRA's share price decreased from NOK 57.50 to NOK 49.90 during second quarter 2014. The number of shares traded on the Oslo Stock Exchange in the period was 7 million compared to 11 million in the same period in 2013.

Asker, 17 July 2014

The Board of Directors TOMRA SYSTEMS ASA

Svein Rennemo Stefan Ranstrand Chairman of the Board President & CEO

Condensed Consolidated interim financial statements

STATEMENT OF PROFIT AND LOSS		2nd Quarter		1st Half	Full year
(MNOK)	Note	2014	2013	2014	2013	2013
Operating revenues	(5)	1 186.9	1 177.2	2 251.7	2 143.1	4 602.1
Cost of goods sold		666.6	667.8	1 253.6	1 193.1	2 562.3
Depreciations/write-down		15.5	14.0	31.3	28.0	60.9
Gross contribution		504.8	495.4	966.8	922.0	1 978.9
Operating expenses		326.9	299.7	660.3	591.4	1 180.9
Depreciations/write-down		21.6	23.0	44.2	45.2	92.0
EBITA before other items	(5)	156.3	172.7	262.3	285.4	706.0
Amortizations		27.2	25.9	55.1	51.6	105.0
EBIT (Results from operating activities)	(5)	129.1	146.8	207.2	233.8	601.0
Net financial income		(8.2)	(9.2)	(17.0)	(18.4)	(39.9)
Profit before tax		120.9	137.6	190.2	215.4	561.1
Taxes		29.6	35.8	46.6	56.0	139.0
Profit from continuing operations		91.3	101.8	143.6	159.4	422.1
Discontinued operations		-	-	-	-	(9.7)
Net profit		91.3	101.8	143.6	159.4	412.4
Non-Controlling interest (Minority interest)		(8.0)	(11.3)	(12.1)	(16.9)	(35.7)
Earnings per share (EPS)		0.56	0.61	0.89	0.96	2.55

STATEMENT OF OTHER COMPREHENSIVE INCOME	2nd Quarter 1st Half		Full year
(MNOK)	2014	2013	2014	2013	2013
Net profit for the period	91.3	101.8	143.6	159.4	412.4
Other comprehensive income
Other comprehensive income that may be reclassified to profit or loss
Translation differences	68.7	92.1	3.4	161.1	300.3
Other comprehensive income that will not be reclassified to profit or loss
Remeasurements of defined benefit liability (assets)	0.0	0.0	0.0	0.0	(27.0)
Total comprehensive income	160.0	193.9	147.0	320.5	685.7
Attributable to:
Non-controlling interest	10.2	14.0	13.0	23.0	42.5
Shareholders of the parent company	149.8	179.9	134.0	297.5	643.2
Total comprehensive income	160.0	193.9	147.0	320.5	685.7

STATEMENTS OF FINANCIAL POSITION		30 June	31 Dec
(MNOK)	2014	2013	2013
ASSETS
Intangible non-current assets	2 527.9	2 395.6	2 486.8
Tangible non-current assets	613.1	598.9	607.9
Financial non-current assets	292.7	265.7	266.6
Inventory	955.5	917.1	873.5
Receivables	1 357.8	1 259.7	1 224.3
Cash and cash equivalents	197.3	134.9	164.1
TOTAL ASSETS	5 944.3	5 571.9	5 623.2
EQUITY & LIABILITIES
Equity	2 682.2	2 407.0	2 740.9
Non-controlling interest	95.9	94.3	82.6
Deferred taxes	114.9	115.1	97.4
Long-term interest bearing liabilities	1 739.5	1 735.1	1 004.4
Short-term interest bearing liabilities	-	-	552.1
Other liabilities	1 311.8	1 220.4	1 145.8
TOTAL EQUITY & LIABILITIES	5 944.3	5 571.9	5 623.2

Condensed Consolidated interim financial statements (continued)

	STATEMENT OF CASHFLOWS		2nd Quarter	1st Half	Full year
(MNOK)	Note	2014	2013	2014	2013	2013
Profit before income tax		120.9	137.6	190.2	215.4	561.1
Changes in working capital		(13.6)	(53.1)	(55.6)	(134.9)	(136.3)
Other operating changes		29.1	35.7	14.0	51.1	142.2
Total cash flow from operations		136.4	120.2	148.6	131.6	567.0
Cashflow from purchase of subsidiaries		0.0	0.0	0.0	3.7	3.7
Cashflow from sales of subsidiaries/reclass Tomra Japan		0.0	0.0	(7.7)	0.0	0.0
Other cashflow from investments		(68.3)	(62.4)	(129.9)	(102.8)	(234.4)
Total cash flow from investments		(68.3)	(62.4)	(137.6)	(99.1)	(230.7)
Cashflow from sales/repurchase of treasury shares	(3)	0.0	0.0	7.0	10.2	0.6
Dividend paid out	(2)	(199.6)	(185.0)	(199.6)	(185.0)	(185.0)
Other cashflow from financing		243.5	105.4	215.4	92.8	(177.8)
Total cash flow from financing		43.9	(79.6)	22.8	(82.0)	(362.2)
Total cash flow for period		112.0	(21.8)	33.8	(49.5)	(25.9)
Exchange rate effect on cash		6.3	3.4	(0.6)	7.2	12.8
Opening cash balance		79.0	153.3	164.1	177.2	177.2
Closing cash balance		197.3	134.9	197.3	134.9	164.1

EQUITY (MNOK)	Paid in capital	Transl. reserve	Actuarial Gain / (Loss)	Retained earnings	Total majority equity	Minority interest	Total Equity
Balance per 31 December 2013	1 066.1	(24.8)	(27.0)	1 726.6	2 740.9	82.6	2 823.5
Net profit				131.5	131.5	12.1	143.6
Changes in translation difference		2.5			2.5	0.9	3.4
Remeasurement defined benefit liability			0.0		0.0		0.0
Dividend non-controlling interest						0.3	0.3
Purchase of treasury shares					0.0		0.0
Treasury shares sold to employees	0.1			6.8	6.9		6.9
Dividend to shareholders					(199.6)		(199.6)
Balance per 30 June 2014	1 066.2	(22.3)	(27.0)	1 864.9	2 682.2	95.9	2 778.1

EQUITY	2nd Quarter 1st Half			Full year
(MNOK)	2014	2013	2014	2013	2013
Opening balance	2 732.0	2 412.1	2 740.9	2 283.3	2 283.3
Net profit	83.3	90.5	131.5	142.5	376.7
Translation difference	66.5	89.4	2.5	155.0	293.5
Remeasurement defined benefit liability	0.0	0.0	0.0	1.0	(27.0)
Dividend paid	(199.6)	(184.9)	(199.6)	(184.9)	(184.9)
Net purchase of own shares	0.0	0.0	6.9	10.2	(0.7)
Closing balance	2 682.2	2 407.1	2 682.2	2 407.1	2 740.9

NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS

NOTE 1 DISCLOSURE

This interim report has been prepared in accordance with IAS34, and in accordance with the principles used in the annual accounts for 2013. The quarterly reports do not however include all information required for a full annual financial statement of the Group and should be read in conjunction with the annual financial statement for 2013. The quarterly reports have not been audited. The quarterly reports require management to make judgments, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets and liabilities, income and expenses. Actual results may differ from these estimates. The significant judgments made by management in preparing these condensed consolidated interim financial statements in applying the Group's accounting policies and the key sources of estimation uncertainty were the same as those that applied to the consolidated financial statements for the year ending 31 December 2013.

A number of new standards, amendments to standards and interpretations are not effective for the company for the period ending 30 June 2014, and have not been applied in preparing these consolidated financial statements:

IFRS 9 Financial Instruments and related amendments to IFRS 7 regarding transition IFRS 14 Regulatory Deferral Accounts IFRS 15 Revenues from contracts

The new standards are not expected to have any material effects on the financial statements.

Revenue recognition: Revenues from sales and sales-type leases of the company's products are generally recognized at the time of installation. Revenues from service contracts and operating leases of the company's products are recognized over the duration of the related agreements. Other service revenues are recognized when services are provided.

Seasonality: The Material Recovery operations, and to some extent the US Reverse Vending operations, are influenced by seasonality. The seasonality mirrors the beverage consumption pattern in the US, which normally is higher during the summer (2Q and 3Q) than during the winter (1Q and 4Q). Also the Food business stream within Sorting Solutions is influenced by seasonality, with somewhat higher activity during the harvest season in the northern hemisphere.

Financial exposures: TOMRA is exposed to currency risk, as only ~3% of its income is nominated in NOK. A strengthening/ weakening of NOK toward other currencies of 10% would normally decrease/increase operating profit by 10-20%. An increase in NIBOR and EURIBOR of 1 percentage point, would increase financial expenses by ~NOK 14 million per year.

Segment reporting: TOMRA has divided its primary reporting format into two business areas: Collection Solutions and Sorting Solutions. In addition, the corporate overhead costs are reported in a separate column. The split is based upon the risk- and return profile of the Group's different activities; also taking into consideration TOMRA's internal reporting structure.

• Collection Solutions consists of the business streams Reverse Vending (development, production, sales and service of Reverse Vending Machines and related data management systems) + Material Recovery (pick-up, transportation and processing of empty beverage containers on behalf of beverage producers/fillers on the US East Coast and in Canada) + Compaction (small and mid-size compaction machines)
• Sorting Solutions consists of the business streams Food, Recycling and Mining, all providing advanced optical sorting systems
• Group Functions consists of costs related to corporate functions at TOMRA's headquarters.

Assets and liabilities are distributed to the different business streams, except for cash, interest-bearing debt and tax-positions, which are allocated to Group Functions. There are no material revenues from transactions with other business streams. There are no material related party transactions in 2014.

NOTE 2 DIVIDEND PAID

Paid out May 2013: 1.25 NOK x 147.9 million shares = NOK 184.9 million Paid out May 2014: 1.35 NOK x 147.9 million shares = NOK 199.6 million

NOTE 3 CHANGE IN ACCOUNTING PRINCIPLES – IFRS 11 Joint Arrangements

In accordance with IFRS 11, TOMRA has changed accounting principles for joint arrangements. Tomra Japan Ltd. has up until 2013 been proportionally consolidated in the Group accounts. From 2014, the equity method has been applied. When making the assessment, the structure of the arrangement, the legal form, the contractual terms of the arrangement and other relevant facts and circumstances have been taken into consideration.

Tomra Japan Ltd. was included in the balance sheet and income statement with the following amounts:

Amounts in NOK million	31.12.2012	31.12.2013
Intangible non-current assets	0.1	0.2
Tangible non-current assets	20.5	23.9
Financial non-current assets	0.1	0.1
Inventory	20.7	13.4
Receivables	4.3	6.3
Cash and cash equivalents	6.5	7.7
TOTAL ASSETS	52.2	51.5
Equity	0.3	1.8
Non-controlling interest	0.0	0.0
Deferred taxes	0.0	0.0
Long-term interest bearing liabilities	17.3	34.9
Short-term interest bearing liabilities	4.3	5.1
Other liabilities	30.3	9.7
TOTAL EQUITY & LIABILITIES	52.2	51.5

Amounts in NOK million	2013
OPERATING REVENUES	26.6
Cost of goods sold	13.4
Employee benefits expenses	3.9
Ordinary depreciation	4.6
Other operating expenses	2.3
TOTAL OPERATING EXPENSES	24.2
OPERATING PROFIT	2.4
Net financial items	0.8
PROFIT FOR THE PERIOD	1.6

NOTE 4 NET PURCHASE OF OWN SHARES

Net purchase of own shares	# shares	Average price		Total (MNOK)
2013
Gross purchased	200 000	NOK	54.00	10.8
Sold to employees	(181 368)	NOK	56.25	(10.2)
Net purchased	18 632			0.6
2014
Sold to employees	(123 104)	NOK	56.25	(6.9)
Net purchased	(123 104)	NOK	56.25	(6.9)

NOTE 5 OPERATING SEGMENTS

SEGMENT	Collection Solutions		Sorting Solutions		Group Functions		Group Total
(MNOK)	2Q14	2Q13	2Q14	2Q13	2Q14	2Q13	2Q14	2Q13
Revenues
- Nordic	138	145	3	1 0			141	155
- Central Europe & UK	286	276	164	176			450	452
- Rest of Europe	9	3	4 5	2 2			5 4	2 5
- North America	281	267	163	168			444	435
- Rest of World	1 2	8	8 6	102			9 8	110
Total revenues	726	699	461	478			1 187	1 177
Gross contribution	302	291	202	204			504	495
- in %	42 %	42 %	44 %	43 %			43 %	42 %
Operating expenses	173	164	168	153	7	6	348	323
EBITA	129	127	3 4	5 1	(7)	(6)	156	172
- in %	18 %	18 %	7 %	11 %			13 %	15 %
EBIT	121	119	1 5	3 3	(7)	(6)	129	146
- in %	17 %	17 %	3 %	7 %			11 %	12 %

SEGMENT	Collection Solutions		Sorting Solutions		Group Functions		Group Total
(MNOK)	1H14	1H13	1H14	1H13	1H14	1H13	1H14	1H13
Revenues
- Nordic	268	272	5	1 4			273	286
- Central Europe & UK	582	516	274	282			856	798
- Rest of Europe	1 5	6	9 6	5 0			111	5 6
- North America	518	492	309	305			827	797
- Rest of World	1 9	1 1	166	195			185	206
Total revenues	1 402	1 297	850	846			2 252	2 143
Gross contribution	590	546	376	376			966	922
- in %	42 %	42 %	44 %	44 %			43 %	43 %
Operating expenses	351	327	339	298	1 4	1 2	704	637
EBITA	239	219	3 7	7 8	(14)	(12)	262	285
- in %	17 %	17 %	4 %	9 %			12 %	13 %
EBIT	222	203	-1	4 2	(14)	(12)	207	233
- in %	16 %	16 %	0 %	5 %			9 %	11 %
Assets	2 407	2 387	3 184	2 917	353	268	5 944	5 572
Liabilities	737	677	534	494	1 880	1 900	3 151	3 071

NOTE 6 INTERIM RESULTS

(MNOK)	2Q14	1Q14	4Q13	3Q13	2Q13
Operating revenues (MNOK)	1 187	1 065	1 228	1 231	1 177
EBITA (MNOK)	156	106	204	217	173
EBIT (MNOK)	129	7 8	178	189	147
Sales growth (year-on-year) (%)	1 %	10 %	3 %	12 %	24 %
Gross margin (%)	43 %	43 %	44 %	42 %	42 %
EBITA margin (%)	13 %	10 %	17 %	18 %	15 %
EPS (NOK)	0.56	0.33	0.77	0.82	0.61
EPS (NOK) fully diluted	0.56	0.33	0.77	0.82	0.61

STATEMENT BY THE BOARD OF DIRECTORS AND THE CEO

We hereby confirm that the half-yearly financial statements for the Group for the period 1 January through 30 June 2014 to the best of our knowledge have been prepared in accordance with IAS 34 Interim Financial Reporting, and give a true and fair view of the assets, liabilities, financial position and profit or loss of the Group and the company taken as a whole.

To the best of our knowledge, the half-yearly report gives a true and fair:

• Overview of important events that occurred during the accounting period and their impact on the half-yearly financial statements
• Description of the principal risks and uncertainties facing the Group over the next accounting period
• Description of major transactions with related parties.

Asker, 17 July 2014

Svein Rennemo Jan Svensson Bodil Sonesson Aniela Gjøs Pierre Couderc Chairman Board member Board member Board member Board member

Employee Employee

Ingrid Solberg David Williamson Stefan Ranstrand Representative representative

Board member Board member President and CEO

About TOMRA

TOMRA was founded on an innovation in 1972 that began with design, manufacturing and sale of reverse vending machines (RVMs) for automated collection of used beverage containers.

Today, TOMRA has ~170,000 installations in over 80 markets worldwide and had total revenues of ~4.6 billion NOK in 2013.

The Group employs ~2,500 globally, and is publicly listed on the Oslo Stock Exchange. (OSE: TOM)

The TOMRA Group continues to innovate and provide cutting-edge solutions for optimal resource productivity within two main business areas: Collection Solutions (reverse vending, material recovery and compaction) and Sorting Solutions (recycling, mining and food sorting).

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

Nordic	$^{\sim}15,100$	Nordic	$-17,125$	Europe	$-2,450$	Europe	~173	Europe	~23.535
Germany	$^{\sim}26,000$	UK	$-18,040$	US / Canada	$-650$	US/Canada	$-40$	US/Canada	$-3.020$
Other Europe	$-12,700$	Other Europe	$-30,810$	Asia	~10	Australia	~25	Asia/Oceania	~575
Japan	~1700	Asia/Oceania	$-4.250$	Other	~535	South Africa	$-52$	South America	~245
North America	$-17,200$	North America	$-4,490$			Other	$~1$ 30	Middle East/	$-210$
South America	~1.070	Middle East/Africa	~505					Africa
TOTAL	~72.770	TOTAL	$-75.220$	TOTAL	$-4.045$	TOTAL	$-220$	TOTAL	~7.685

The results announcement will be broadcasted on July 18 08:00 CET via live webcast from TOMRA HQ, Drengsrudhagen 2, 1372 Asker. This and previous releases are available athttp://tomra.com/en/investor-relations/financial-information/quarterly-reports

For further information contact: Espen Gundersen, Deputy CEO / CFO, Tel: +47 97 68 73 01 Elisabet V. Sandnes, Investor Relations Officer / M&A Director, Tel: +47 97 55 79 15