TOMRA Systems — Interim / Quarterly Report 2016

Apr 26, 2016

1 ST QUARTER 2016 RESULTS ANNOUNCEMENT

TOMRA SYSTEMS ASA 1 st Quarter Results 26.04.2016

HIGHLIGHTS FROM THE QUARTER

Revenues	• Revenues of 1,360 MNOK (1,107 MNOK in first quarter 2015) Currency adjusted revenues were: - Up 12% for TOMRA Group - Up 14% in TOMRA Collection Solutions - Up 10% in TOMRA Sorting Solutions
Gross margin	• Gross margin 42%, down from 43% in first quarter 2015 (currency adjusted) - Slightly lower margin in TOMRA Collection Solutions - Stable margin in TOMRA Sorting Solutions
Operating expenses	• Operating expenses of 421 MNOK (369 MNOK in first quarter 2015) - Up 5% adjusted for currency
EBITA	• EBITA of 153 MNOK (104 MNOK in first quarter 2015)
Cashflow	• Strong cash flow from operations of 118 MNOK (50 MNOK in first quarter 2015)
TOMRA Collection	• Good momentum in Germany, due to replacement demand • Nordic market developing positively due to replacement in Sweden
TOMRA Sorting Solutions	• Order intake of 661 MNOK, compared to 573 MNOK same period last year, currency adjusted up 7% • Order backlog of 829 MNOK, up from 822 MNOK at the end of first quarter 2015

CURRENCY

Revenues and expenses per currency; NOTE: Rounded figures

	EUR*	USD	NOK	SEK	OTHER	TOTAL
Revenues	45 %	30 %	5 %	10 %	10 %	100 %
Expenses	45 %	25 %	10 %	10 %	10 %	100 %
EBITA	45%	50 %	- 15 %	10 %	10 %	100 %
* EUR includes DKK	Mainly CNY

FINANCIAL HIGHLIGHTS P&L STATEMENT

	1st Quarter
Amounts in NOK million	2016	2015	15 Adj*
Revenues	1,360	1,107	1,210
• Collection Solutions	869	699	763
• Sorting Solutions	491	408	447
Gross contribution	574	473	517
in %	42%	43%	43%
Operating expenses	421	369	401
EBITA	153	104	116
in %	11%	9%	9%

FINANCIAL HIGHLIGHTS BALANCE SHEET, CASH FLOW AND CAPITAL STRUCTURE

Amounts in NOK million	31 March 2016	31 March 2015	31 Dec 2015
ASSETS	7,152	6,412	7,317
• Intangible non-current assets	2,858	2,583	2,891
• Tangible non-current assets	795	701	837
• Financial non-current assets	306	317	316
• Inventory	1,278	1,050	1,209
• Receivables	1,570	1,468	1,751
• Cash and cash equivalents	345	293	313
LIABILITIES AND EQUITY	7,152	6,412	7,317
• Equity	3,915	3,317	3,945
• Minority interest	166	130	160
• Interest bearing liabilities	1,140	1,359	1,206
• Non-interest bearing liabilities	1,931	1,606	2,006

Ordinary cashflow from operations

• 118 MNOK (50 MNOK in 1Q 2015)

Solidity

• 55% equity
• NIBD/EBITDA = 0.6 (Rolling 12 months)
• Dividend of NOK 1.75 (NOK 1.45 last year)

TOMRA COLLECTION SOLUTIONS

HIGHLIGHTS COLLECTION SOLUTIONS

Overall	• Revenues of 869 MNOK, up from 699 MNOK in first quarter 2015 - Revenues up 14% in local currencies • Gross margin was 41% in the period - Down from 42% last year, due to product mix • Operating expenses of 205 MNOK - Up from 4% currency adjusted • EBITA increased from 108 MNOK to 147 MNOK
Europe	• Currency adjusted revenues up 26% in Europe - Good momentum in Germany, due to replacement demand - Nordic market developing positively due to replacement in Sweden - Lithuanian deposit system live from February
North America	• US down 3% in local currencies - Lower machine sales, partly offset by better throughput volumes

7

COLLECTION SOLUTIONS FINANCIALS

	1st Quarter
Amounts in NOK million	2016	2015	15 Adj*
Revenues	869	699	763
• Nordic	158	118
• Europe (ex Nordic)	374	272
• US East/Canada	322	299
• Rest of the world	15	10
Gross contribution	352	291	317
in %	41%	42%	42%
Operating expenses	205	183	198
EBITA	147	108	119
in %	17%	15%	16%

*2015 actual restated at 2016 exchange rates, estimated ** Adjusted for one-time costs

GERMANY REPLACEMENT UPDATE

TOMRA SORTING SOLUTIONS

HIGHLIGHTS SORTING SOLUTIONS

BUSINESS STREAM UPDATE

FOOD

• Revenues in 1Q16 up from 1Q15
• Order intake significantly up quarter over quarter, leading to an all time high order backlog at the end of 1Q16

RECYCLING

• Revenues in 1Q16 slightly up from 1Q15,
• Order intake stable quarter over quarter
• Order backlog stable
• Challenging commodity markets limits growth opportunities

MINING

• Revenues stable at a low level
• Depressed market in all commodities, except for diamonds

SORTING SOLUTIONS FINANCIALS

	1st Quarter
Amounts in NOK million	2016	2015	15 Adj*
Revenues	491	408	447
• Europe	205	208
• North America	157	111
• South America	4	13
• Asia	90	59
• Oceania	21	11
• Africa	14	6
Gross contribution	222	182	200
in %	45%	45%	45%
Operating expenses	206	178	195
EBITA	16	4	5
in %	3%	1%	1%

BACKLOG DEVELOPMENT AND MOMENTUM

• Delivered all time high order intake of 661 MNOK in the quarter (compared to 573 MNOK last year)
• Revenues came in at 491 MNOK (up from 408 MNOK in 1Q15)
• With an all time high order intake, and somewhat limited numbers taken to P/L, the quarter ends with a healthy order backlog of NOK 829 MNOK
• Estimated backlog conversion ratio in 2Q16: 75%-80%*

* Based upon current production and delivery plans, the revenues in 2Q16 are estimated to be approximately 75-80% of order backlog at the end of 4Q15

OUTLOOK AND SHAREHOLDER STRUCTURE

OUTLOOK

Collection Solutions

• The replacement demand in Germany is assumed to continue, but second half of 2016 is expected to be stronger than first half.

Sorting Solutions • Currently good momentum in Food Sorting, but low commodity prices negatively impact Mining.

Currency

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

TOMRA SHAREHOLDER STRUCTURE

Top 10 shareholders as of 06 April 2016					Shareholders	by country
1	Investment AB Latour	38 130 000	25.8%
2	Folketrygdfondet	10 955 732	7.4%
3	Skandinaviska Enskilda (Client Account)	9 874 206	6.7%	(NOM)
4	The Bank of New York BNY Mellon	2 916 535	2.0%	(NOM)
5	Nordea Nordic Small	2 745 407	1.9%
6	Clearstream Banking	2 679 793	1.8%	(NOM)
7	BNY Mellon, Stiching Dep.	2 574 065	1.7%	(NOM)
8	Goldman Sachs & Co	2 302 303	1.6%	(NOM)
9	Odin Norge	2 280 188	1.5%
10	SEB - Swedish	2 153 115	1.1%	(NOM)
	Sum Top 10	76 611 344	51.8%
	Other shareholders	71 408 734	49.2%
	TOTAL (5,869 shareholders)	148 020 078	100.0%

Source: VPS

DISCLAIMER

Copyright

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Disclaimer

This Document (which may be a presentation, video, brochure or other material), hereafter called Document, may include and be based on, inter alia, forward-looking information and statements that are subject to risks and uncertainties that could cause actual results to differ. The content of this Document may be based on current 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 "expects", "believes", "estimates" or similar expressions, if not part of what could be clearly characterized as a demonstration case. 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 assurance that those expectations will be achieved or that the actual results will be as set out in the Document. TOMRA Systems ASA does not guarantee the accuracy, reliability or completeness of the Document, and TOMRA Systems ASA (including its directors, officers and employees) accepts no liability whatsoever for any direct or consequential loss arising from 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 trade mark for most of these entities. In this Document we may sometimes use "TOMRA", "TOMRA Systems", "we" or "us" when we refer to TOMRA Systems ASA companies in general or where no useful purpose is served by identifying any particular TOMRA Company