TOMRA Systems — Interim / Quarterly Report 2015

Apr 24, 2015

24.04.2015

HIGHLIGHTS

1Q 2015

• All time high order intake of 573 MNOK in TOMRA Sorting Solutions, compared to 488 MNOK same period last year
• All time high order backlog of 822 MNOK in TOMRA Sorting Solutions, up from 657 MNOK at the end of fourth quarter 2014
• Revenues of 1,107 MNOK (1,022 MNOK in first quarter 2014). Currency adjusted revenues were:
• Down 2% for TOMRA Group
• Down 1% in TOMRA Collection Solutions
• Down 4% in TOMRA Sorting Solutions
• Gross margin 43%, unchanged from first quarter 2014 (currency adjusted)
• Stable margin in TOMRA Collection Solutions
• Stable margin in TOMRA Sorting Solutions
• Operating expenses of 369 MNOK (338 MNOK in first quarter 2014) — Up 3% adjusted for currency and one-time costs in 2014
• EBITA of 104 MNOK (107 MNOK in first quarter 2014)
• Cash flow from operations of 50 MNOK (12 MNOK in first quarter 2014)
• Divestment of Compaction completed
• Dividend of NOK 1.45 per share approved by the Annual General Assembly

TOMRA FIRST QUARTER 2015

CONSOLIDATED FINANCIALS

Revenues in the first quarter 2015 amounted to 1,107 MNOK compared to 1,022 MNOK in first quarter last year. Revenues in TOMRA Collection Solutions increased by 10% (down 1% currency adjusted), while revenues in TOMRA Sorting Solutions were up 5% (down 4% currency adjusted).

Gross margin was 43% in the quarter, down from 44% in the same quarter last year, but unchanged currency adjusted. The margins were stable in both business areas.

Operating expenses increased from 338 MNOK in first quarter 2014 to 369 MNOK in first quarter 2015. Adjusted for currency and one-time costs of 12 MNOK in first quarter 2014, operating expenses were up 3%.

EBITA was 104 MNOK in first quarter 2015, down from 107 MNOK in the first quarter 2014. EPS decreased from 0.33 NOK to NOK 0.30 during the same period.

Cash flow from operations in first quarter 2015 equaled 50 MNOK, up from 12 MNOK in first quarter 2014.

TOMRA Compaction was sold in fourth quarter 2014, and the transaction was closed in first quarter 2015.

Revenues and expenses related to this business stream have been reclassified as discontinued operationsin the comparable 2014 figures.

Net interest bearing debt decreased from 1,212 MNOK to 1,065 MNOK during the quarter, positively influenced by the proceeds from the divestment of TOMRA Compaction. At the end of first quarter 2015 NIBD/EBITDA (rolling 12 months) was equal to 1.2.

The equity ratio increased from 49% by the end of 2014 to 52% by the end of first quarter 2015. The annual General Assembly approved 23 April a dividend of NOK 1.45 per share to be paid in May 2015 (up from NOK 1.35 per share last year).

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 Group
(MNOK)	1Q15	1Q14
Revenues	1 107	1 022
Gross contribution	473	445
- in %	43 %	44 %
Operating expenses	369	338
EBITA	104	107
- in %	9 %	10 %
Incl. integration/ onetime costs
- In operating exp.	0	12

First quarter 2015 versus first quarter 2014, USD and EUR strengthened 27% and 5% respectively, positively influencing revenues by approximately 10% points and EBITA by approximately 11% points.

Excluding one time cost

BUSINESS AREA REPORTING

TOMRA Collection Solutions

The business area reported an increase in revenue of 10% in first quarter 2015, compared to same period last year. After adjustment for currency changes, revenues were down 1%.

Gross margin decreased from 43% to 42%, negatively influenced by more lower-margin USD nominated revenues (Material Recovery). Currency adjusted gross margin was stable.

Operating expenses were up 3%, after adjusting for currency. EBITA was 108 MNOK, down from 111 MNOK last year.

Europe

As communicated in the fourth quarter 2014 report, sales in Europe were somewhat slow in first quarter 2015. The momentum in the German market is however good. Germany implemented deposit on non-refillable beverage containers in 2006 and TOMRA installed 8,800 machines in that market during that year. These machines will need to be replaced, positively influencing TOMRA's performance in the upcoming quarters and years.

North America

Revenues in local currencies were stable, compared to first quarter 2014, but significantly up measured in NOK. Severe weather has negatively influenced volumes, but with limited effect measured against first quarter 2014, which also experienced bad weather conditions.

Divestment of TOMRA Compaction (Orwak)

TOMRA signed 12th December 2014 an agreement with San Sac Nordic AB to sell 100% of the shares in TOMRA Compaction Group AB for a consideration of 110 MSEK (free of cash and interest bearing debt). Closing took place 30th January 2015.

Revenues and expenses related to this business stream have been reclassified as discontinued operationsin the comparable 2014 figures.

TOMRA will continue as distributor for Orwak in five markets for a period of up to two years. The result from this activity is reported under discontinued operations.

TOMRA Collection Solutions

(MNOK)	1Q15	1Q14
Revenues
- Nordic	118	101
- Europe (ex Nordic)	272	294
- North America	299	234
- Rest of World	10	4
Total revenues	699	633
Gross contribution	291	271
- in %	42 %	43 %
Operating expenses	183	160
EBITA	108	111
- in %	15 %	18 %

4

BUSINESS AREA REPORTING

TOMRA Sorting Solutions

Revenues increased from 389 MNOK in first quarter 2014 to 408 MNOK in first quarter 2015. Adjusted for currency effects, revenues were down 4%.

Gross margin was stable at 45%. Operating expenses increased in the same period from 171 MNOK to 178 MNOK, adjusted for currency and one-time costs, operating expenses were up 3%.

EBITA increased from 3 MNOK in first quarter 2014 to 4 MNOK in first quarter 2015.

Order intake TOMRA Sorting

Order backlog TOMRA Sorting

As communicated in the fourth quarter 2014 report, the conversion rate (orders delivered/backlog) in first quarter 2015 was expected to be low. This, combined with good order intake in first quarter 2015 and a weaker NOK, has led to an all time high order backlog at the end of first quarter 2015.

Order intake during first quarter 2015 totaled 573 MNOK, up from 488 MNOK during the same quarter last year. The order backlog at the end of first quarter

TOMRA Sorting Solutions

(MNOK)	1Q15	1Q14
Revenues
- Europe	208	163
- North America	111	146
- South America	13	6
- Asia	59	59
- Oceania	11	5
- Africa	6	10
Total revenues	408	389
Gross contribution	182	174
- in %	45 %	45 %
Operating expenses	178	171
EBITA	4	3
- in %	1 %	1 %
Incl. integration/ onetime costs
- In operating exp.	-	12

2015 was 822 MNOK, up from 657 MNOK at the end of fourth quarter 2014

Businessstreams

Food

Revenues in the Food business stream were slightly down in first quarter 2015 compared to first quarter 2014. The order intake was significantly better than first quarter 2014, as well as the other quarters of 2014.

Recycling

Revenues in Recycling in first quarter 2015 were stable compared to first quarter 2014. Order intake has increased slightly compared to previous quarters, despite negative momentum in metals and plastic (PET) recycling, as a consequence of low commodity prices.

Mining

Revenues in Mining in first quarter 2015 were significantly up versus same quarter last year. Order intake was down in first quarter 2015, compared to a high order intake in first quarter 2014.

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

No new markets are expected to generate significant revenues in the coming quarters, but replacement opportunities in the German market are expected to improve performance going forward.

On the back of a somewhat weak first quarter 2015, activity is expected to develop positively, and 2015 in total is expected to be stronger than 2014, in respect of both revenues and EBITA.

TOMRA Sorting Solutions

The business area ended first quarter 2015 with an all time high order backlog, and second quarter 2015 is consequently expected to be strong and materially better than second quarter 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.

THE TOMRA SHARE

The total number of issued shares at the end of first quarter 2015 was 148,020,078 shares, including 141,082 treasury shares. The total number of shareholders increased from 5,763 at the end of fourth quarter 2014 to 5,796 at the end of first quarter 2015. Norwegian residents held 29% of the shares at the end of first quarter 2015.

TOMRA's share price increased from NOK 57.50 to NOK 67.75 during first quarter 2015. The number of shares traded on the Oslo Stock Exchange in the period was 11 million compared to 9 million in the same period in 2014.

SUBSEQUENT EVENTS

The annual general assembly took place 23 April in Asker. All agenda points were approved, including a dividend of NOK 1.45 per share.

At the meeting Jan Svensson replaced Svein Rennemo as chairman of the Board, who resigned after six years service.

Asker, 23 April 2015 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	Note	1st Quarter	Full year
(MNOK)		2015	2014	2014
Operating revenues	(5)	1 106,9	1 021,8	4 749,0
Cost of goods sold		613,9	561,0	2 636,2
Depreciations/write-down		20,3	15,8	63,3
Gross contribution		472,7	445,0	2 049,5
Operating expenses		342,6	316,4	1 225,2
Depreciations/write-down		25,7	21,6	87,8
EBITA	(5)	104,4	107,0	736,5
Amortizations		28,8	27,9	109,0
EBIT	(5)	75,6	79,1	627,5
Net financial income		(8,0)	(8,8)	(24,1)
Profit before tax		67,6	70,3	603,4
Taxes		17,3	17,0	148,4
Profit from continuing operations		50,3	53,3	455,0
Discontinued operations	(3)	(1,2)	(1,0)	(60,7)
Net profit		49,1	52,3	394,3
Non-Controlling interest (Minority interest)		(4,4)	(4,1)	(33,4)
Earnings per share (EPS)		0,30	0,33	2,44
Earnings per share (EPS) continuing operations		0,31	0,33	2,85
STATEMENT OF OTHER COMPREHENSIVE INCOME		1st Quarter		Full year
(MNOK)		2015	2014	2014
Net profit for the period		49,1	52,3	394,3
Other comprehensive income that may be reclassified to profit or loss
Translation differences		31,4	(65,3)	368,3
Other comprehensive income that will not be reclassified to profit or loss
Remeasurements of defined benefit liability (assets)		0,0	0,0	(10,1)
Total comprehensive income		80,5	(13,0)	752,5
Attributable to:
Non-controlling interest		14,7	2,8	51,7
Shareholders of the parent company		65,8	(15,8)	700,8
Total comprehensive income		80,5	(13,0)	752,5
		-0	-
STATEMENTS OF FINANCIAL POSITION		31 March		Full year
(MNOK)		2015	2014	2014
ASSETS
Intangible non-current assets		2 583,2	2 485,1	2 622,6
Tangible non-current assets		700,8	585,8	682,9
Financial non-current assets		317,4	297,1	307,3
Inventory		1 050,3	936,0	912,9
Receivables		1 467,0	1 278,3	1 536,9
Cash and cash equivalents		293,3	79,0	436,3
Assets held for sale	(3)	-	-	125,8
TOTAL ASSETS		6 412,0	5 661,3	6 624,7
EQUITY & LIABILITIES
Equity		3 316,9	2 732,0	3 244,0
Non-controlling interest		130,1	85,4	115,4
Deferred taxes		140,6	113,5	140,3
Long-term interest bearing liabilities		1 044,5	989,0	1 558,2
Short-term interest bearing liabilities		314,0	504,5	90,4
Other liabilities		1 465,9	1 236,9	1 452,0
Liabilities held for sale	(3)	-	-	24,4
TOTAL EQUITY & LIABILITIES		6 412,0	5 661,3	6 624,7

7

Condensed Consolidated interim financial statements (continued)

STATEMENT OF CASHFLOWS		1st Quarter
(MNOK) Note	2015	2014	Full year 2014
Profit before income tax*	66,4	69,3	542,7
Changes in working capital	(25,5)	(42,0)	(0,1)
Other operating changes	8,7	(15,1)	153,6
Total cash flow from operations	49,6	12,2	696,2
Cashflow from (purchase)/sales of subsidiaries	92,2	0,0	(19,6)
Other cashflow from investments	(64,2)	(69,3)	(266,1)
Total cash flow from investments	28,0	(69,3)	(285,7)
Cashflow from sales/repurchase of treasury shares (4)	7,1	7,0	2,0
Dividend paid out (2)	0,0	0,0	(199,6)
Other cashflow from financing	(230,4)	(28,1)	33,4
Total cash flow from financing	(223,3)	(21,1)	(164,2)
Total cash flow for period	(145,7)	(78,2)	246,3
Exchange rate effect on cash	2,7	(6,9)	25,9
Opening cash balance	436,3	164,1	164,1
Closing cash balance	293,3	79,0	436,3

* Including loss from discontinued operations

EQUITY	Paid in	Transl.	Actuarial	Retained	Total	Minority	Total
(MNOK)	capital	reserve	Gain /	earnings	majority	interest	Equity
Balance per 31 December 2014	1 066,1	325,2	(37,1)	1 889,8	3 244,0	115,4	3 359,4
Net profit				44,7	44,7	4,4	49,1
Changes in translation difference		21,1			21,1	10,3	31,4
Remeasurement defined benefit liability					0,0		0,0
Dividend non-controlling interest					0,0		0,0
Purchase of treasury shares					0,0		0,0
Treasury shares sold to employees	0,1			7,0	7,1		7,1
Dividend to shareholders					0,0		0,0
Balance per 31 March 2015	1 066,2	346,3	(37,1)	1 941,5	3 316,9	130,1	3 447,0

EQUITY	1st Quarter		Full year
(MNOK)	2015	2014	2014
Opening balance	3 244,0	2 740,9	2 740,9
Net profit	44,7	48,2	360,9
Translation difference	21,1	(64,0)	350,0
Remeasurement defined benefit liability		0,0	(10,1)
Dividend paid	0,0	0,0	(199,6)
Net purchase of own shares	7,1	6,9	1,9
Closing balance	3 316,9	2 732,0	3 244,0

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 2014. 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 2014. 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 2014.

A number of new standards, amendments to standards and interpretations are not effective for the period ending 31 March 2015 and have not been applied in preparing these consolidated financial statements. Those which may be relevant to the Group are set out below. The Group does not plan to adopt these standards early. These will be adopted in the period that they become mandatory unless otherwise indicated:

IFRS 9 Financial Instruments IFRS 15 Revenue from Contracts with Customers Amendments to IFRS 11 – Accounting for Acquisitions of Interests in Joint Operations Amendments to IFRS 16 and 38 – Clarification of Acceptable Methods of Depreciation and Amortisation

TOMRA is considering the effects of the future adoption of these standards. The current assessment is that TOMRA does not expect any material effects in the financial statements from the new standards.

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 10-12%. An increase in NIBOR and EURIBOR of 1 percentage point, would increase financial expenses by ~NOK 12 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
• 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 2015.

The divested Compaction business is classified as discontinued operations in the profit and loss statement and as assets/liabilities held for sale in the balance sheet, and classifies under Group Functions in the segment reporting.

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

9

NOTE 3 Discontinued operations

TOMRA signed 12th December 2014 an agreement with San Sac Nordic AB to sell 100% of the shares in TOMRA Compaction Group AB for a consideration of SEK 110 million (free of cash and interest bearing debt). Closing took place 30 January 2015. TOMRA will continue to operate as a distributor in some markets in a period of up to two years. The P/L impact from the Compaction business is reported as discontinued operations in both 2014 and 2015. TOMRA has given representations and warranties in line with what's is considered normal in such transactions. In the balance sheet, the assets and liabilities related to the Compaction business was classified as "held for sale" at the end of 2014.

		2014
		TOMRA	Continued
	TOTAL	Compaction	operations	Spesification of divestment loss
Operating revenues	4 953,1	204,1	4 749,0	Goodwill written off	39,0
Cost of goods sold	2 765,3	129,1	2 636,2	Transaction cost	9,2
Depreciations/write-down	63,3	-	63,3	Contingent liabilities	3,7
Gross contribution	2 124,5	75,0	2 049,5	Post closing costs	5,0
Operating expenses	1 290,4	65,2	1 225,2	Other divestment cost	7,1
Depreciations/write-down	91,6	3,8	87,8	Divestment loss	64,0
EBITA	742,5	6,0	736,5
Amortizations	110,4	1,4	109,0
EBIT	632,1	4,6	627,5	Sales price (SEK million)	110,0
Net financial income	(24,1)	-	(24,1)	Restruct. charge (SEK million)	(5,0)
Profit before tax	608,0	4,6	603,4	W/C adjustment (SEK million)	0,6
Taxes	149,7	1,3	148,4	Salesprice (SEK million)	105,6
Profit from continuing operations	458,3	3,3	455,0	Salesprice (NOK million)	101,4
Discontinued operations	(64,0)	(3,3)	(60,7)
Net profit	394,3	-	394,3	Assets held for sale	125,8
Non-Controlling interest	(33,4)	-	(33,4)	Liabilities held for sale	24,4
Earnings per share (EPS)	2,44	-	2,44	Net assets held for sale	101,4

ASSETS
Intangible non-current assets	2 662,9	40,3	2 622,6		First quarter
Tangible non-current assets	701,6	18,7	682,9		2015	2014
Financial non-current assets	307,4	0,1	307,3	Revenues	17,4	43,0
Inventory	947,2	34,3	912,9	Profit after tax	(1,2)	(1,0)
Receivables	1 569,3	32,4	1 536,9
Cash and cash equivalents	436,3		436,3
Assets held for sale	-	(125,8)	125,8
TOTAL ASSETS	6 624,7	0,0	6 624,7
EQUITY & LIABILITIES
Equity	3 244,0		3 244,0
Non-controlling interest	115,4		115,4
Deferred taxes	142,8	2,5	140,3
Long-term interest bearing liabilities	1 558,2		1 558,2
Short-term interest bearing liabilities	90,4		90,4
Other liabilities	1 473,9	21,9	1 452,0
Liabilities held for sale	-	(24,4)	24,4
TOTAL EQUITY & LIABILITIES	6 624,7	0,0	6 624,7

Goodwill written off	39,0
Transaction cost	9,2
Contingent liabilities	3,7
Post closing costs	5,0
Other divestment cost	7,1
Divestment loss	64,0
Sales price (SEK million)	110,0
Restruct. charge (SEK millior	(5,0)
W/C adjustment (SEK millio	0,6
Salesprice (SEK million)	105,6
Salesprice (NOK million)	101,4
Assets held for sale	125,8
Liabilities held for sale	24,4
Net assets held for sale	101,4

First quarter

NOTE 4 Purchase of treasury shares

Net purchase of own shares	# shares	Average price		Total (MNOK)
2014
Gross purchased	100 000	NOK	50,10	5,0
Sold to employees	(123 104)	NOK	56,25	(7,0)
Net purchased	(23 104)	NOK	56,25	(7,0)
2015
Sold to employees	(103 603)	NOK	68,59	(7,1)
Net purchased	(103 603)	NOK 68,59		(7,1)

NOTE 5 Operating segments

SEGMENT		Collection Solutions		Sorting Solutions		Group Functions		Group Total
(MNOK)	1Q15	1Q14	1Q15	1Q14	1Q15	1Q14	1Q15	1Q14
Revenues	699	633	408	389			1 107	1 022
Gross contribution	291	271	182	174			473	445
- in %	42 %	43 %	45 %	45 %			43 %	44 %
Operating expenses	183	160	178	171	8	7	369	338
EBITA	108	111	4	3	(8)	(7)	104	107
- in %	15 %	18 %	1 %	1 %			9 %	10 %
Amortization	9	9	2 0	1 9			2 9	2 8
EBIT	9 9	102	-16	-16	(8)	(7)	7 5	7 9
- in %	14 %	16 %	-4 %	-4 %			7 %	8 %
Assets	2 484	2 357	3 468	3 070	460	234	6 412	5 661
Liabilities	799	726	587	486	1 579	1 632	2 965	2 844

NOTE 6 Interim results

(MNOK)	1Q15	4Q14	3Q14	2Q14	1Q14
Operating revenues (MNOK)	1 107	1 401	1 188	1 139	1 022
EBITA (MNOK)	104	266	206	158	107
EBIT (MNOK)	7 5	240	177	131	7 9
Sales growth (year-on-year) (%)	8 %	20 %	0 %	1 %	10 %
Gross margin (%)	43 %	43 %	44 %	43 %	44 %
EBITA margin (%)	9 %	19 %	17 %	14 %	11 %
EPS (NOK)	0,30	0,75	0,80	0,56	0,33
EPS (NOK) fully diluted	0,30	0,75	0,80	0,56	0,33

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 ~85,000 installations in over 80 markets worldwide and had total revenues of ~4.7 billion NOK in 2014.

The Group employs ~2,400 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 and material recovery) and Sorting Solutions (recycling, mining and food sorting).

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

The results announcement will be broadcasted on Friday 24 April 2015 at 08:00 CET via live webcast from TOMRA HQ. This and previous releases are available at http://tomra.com/en/investor-relations/financial-information/quarterly-reports

For further information contact:

Espen Gundersen, Deputy CEO / CFO, Tel: +47 97 68 73 01