1 st quarter 2021 results announcement

TOMRA Systems ASA 23 April 2021 © TOMRA

HIGHLIGHTS FROM THE QUARTER

Key financial highlights

Revenues	•	Revenues of 2,291 MNOK (2,302 MNOK in first quarter 2020) Adjusted for currency, revenues were: - Up 3% for TOMRA Group - Up 21% in TOMRA Collection Solutions - Down 33% in TOMRA Recycling Mining - Flat in TOMRA Food
Gross margin	•	Gross margin 42.5% (slightly up from 42.3% in first quarter 2020) - Higher margins in TOMRA Collection Solutions and lower in TOMRA Recycling Mining
Operating expenses	•	Operating expenses of 733 MNOK, flat from last year in comparable currencies - Positive effect from cost measures, increased activity level in Collection Solutions
EBITA	•	EBITA of 240 MNOK – up from 228 MNOK in first quarter 2020
Cash flow	•	Cash flow from operations of 269 MNOK – compared to 265 MNOK in first quarter 2020
Order intake	•	Order intake 1,385 MNOK in TOMRA Food and TOMRA Recycling Mining, all time high adjusted for currencies - Positive momentum in all divisions and segments - All time high order backlog of 1,928 MNOK, up 14% currency adjusted compared to first quarter 2020
COVID-19	•	Limited impact, primarily regarding meeting new customers, cross-border travel and logistics

Business update for TOMRA Collection Solutions

collection points at retailers

Solid growth driven by European markets The DRS introduction in Latvia completes Northern Europe as a front runner within circular economy ˜800 automated 36 expert lines 1 FEB 2022 Latvia DRS goes live 1 JUL 2021 Netherlands expansion

Collection Solutions

soon installed in The Netherlands

‒ Growth of 35% in Europe in the period compared to first quarter 2020
‒ Successful expansion in The Netherlands, high activity level in Germany and the positive momentum in Northern Europe continues
‒ Stable business in North America
‒ Positive quarter over quarter volume development in Australia

1) Legislative updates according to official government statements

2) https://www.rijksoverheid.nl/documenten/rapporten/2020/10/09/bijlage-01-ontwerpbesluit-metalen-drankverpakkingen 3) https://nos.nl/artikel/2367153-kogel-door-de-kerk-per-31-december-2022-statiegeld-op-blikjes.html

Update on new deposit markets1)

The Netherlands – July 2021 and December 2022 (expansion)

‒ In April 2020, the DRS was extended to include deposit on small plastic bottles as of July 20212) .
‒ In February 2021, the decision of deposit introduction on cans was announced3) with start date on December 31st, 2022.

Slovakia – January 2022

‒ In September 2020, Slovakia announced implementation of a deposit system on beverage packaging as of January 1st, 2022.
‒ In January 2021, the scheme administrator was selected4) .

Latvia – February 2022

‒ In August 2020, Latvia announced the introduction of a deposit system starting February 1st, 20225) .
‒ On April 9th this year TOMRA was selected as reverse vending technology provider. A negotiation period will follow with contract signing scheduled for July 1st, 2021.

Scotland – July 2022

‒ In May 2020, the Scottish Parliament approved DRS regulations with the commencement date on July 1st, 2022.
‒ In March 2021, the scheme administrator was appointed.

Victoria – 2023

‒ In April 20216), the government of Victoria announced a split responsibility model for DRS to start in 2023.

4) https://www.minzp.sk/aktuality/milnik-priprave-zalohoveho-systemu-minister-budaj-predstavil-spravcu-ktory-zavedie-system-zalohovania-pet-flias.html 5) https://www.diena.lv/raksts/latvija/zinas/parakstits-ligums-par-atkritumu-depozita-sistemas-ieviesanu-latvija-14255277 6) https://www.premier.vic.gov.au/victoria-set-deliver-cash-cans

Business update for TOMRA Recycling Mining

Waste sorting and plastics recycling

Good momentum in the order intake - All time high order backlog in waste sorting and plastics upgrading

All time high order backlog1) at the end of first quarter High commodity prices support the recycling market

Illustration2) of price development of virgin PET and recycled PET (rPET)

PET = virgin-derived polyethylene terephthalate rPET= recycled polyethylene terephthalate (comparable to virgin PET)

Product launch – recovery of small diamonds

Metal recycling and mining

Positive development in the order intake
Improved industrial demand and commodity prices
Launch of a new mining product for small diamonds recovery

Diamonds and gemstones represent the largest application category in mining
The TOMRA COM XRT 300 /FR sorter completes the portfolio offering enabling TOMRA to be a one-stop shop for diamonds sorting

Business update for TOMRA Food

Sustained growth in fresh food
All time high order intake driven by blueberry, cherry and kiwi
Top category in fresh food, together with apples and citrus
Good momentum, order intake
AI offering (LUCAiTM) in blueberry sorting

Nuts & dried fruitsorting

30-35% Market share worldwide**)

Second largest category in processed food
Successful launch of the new TOMRA 5C sorter for nuts and dried fruit which incorporates the digital offering TOMRA Insight

Blueberry sorting

50-60% Market share worldwide

*) Not including peelers, where TOMRA's market share is ~70%

**) Includes best estimates of market size for high volume sub-categories in developing markets. TOMRA's market share in our focus sub-categories and regions is up to ~80%

Circular Economy – TOMRA is the go-to partner

Joint forces Bridge the quality gap

"One major challenge towards more circular packaging is the availability of high-quality recycled plastics that can be used in the packaging of our brands." Dr. Thorsten Leopold, Director International Packaging Technology

Home Care Henkel

New food grade material Recycled polystyrene (rPS)

Styrenics Circular Solutions, which TOMRA is part of has filed the first application for EU authorization of mechanically recycled polystyrene as food contact material.

Innovation in applications Textile sorting

TOMRA and Stadler delivered the first automated plant for textile sorting as part of the Swedish Innovation Platform for Textile Sorting, a governmentfunded project.

Circular solutions Counting and sorting center

TOMRA and Viridor have formed a partnership in a bid to design, build and operate counting and sorting centers for the Scottish deposit return scheme.

https://recycling.tomra.com/blog/tomra-and-stadler-deliver-the-worlds-first-fully-automated-textile-sorting-plant

https://newsroom.tomra.com/tomra-and-borealis-open-state-of-the-art-plant-for-post-consumer-plastic-waste-sorting-and-advanced-mechanical-recycling/

http://styrenics-circular-solutions.com/wp-content/uploads/2021/03/20210309-SCS-seeks-EFSA-opinion-on-rPS_Press-Release.pdf https://newsroom.tomra.com/viridor-and-tomra-collaborate-on-scottish-deposit-return-scheme-project/

FINANCIALS AND OUTLOOK

Currency risk and hedging policy

Revenues and expenses per currency:

	EUR¹	USD	NOK	OTHER²	TOTAL
Revenues	45 %	35 %	0 %	20 %	100 %
Expenses	40 %	25 %	5 %	30 %	100 %

Assets and liabilities per currency:

	EUR¹	USD	NOK	OTHER²	TOTAL
Assets	45 %	15 %	10 %	30 %	100 %
Liabilities	55 %	15 %	10 %	20 %	100 %
¹ EUR includes DKK		² Most important: AUD, NZD, RMB, CAD, SEK, GBP and JPY		NOTE: Estimated and rounded figures

¹ EUR includes DKK NOTE: Estimated and rounded figures

10% change in NOK towards other currencies will impact:

	Revenues	Expenses	EBITA
EUR*	4.5%	4.0%	7.0%
USD	3.5%	2.5%	8.0%
OTHER**	2.0%	3.0%	-4.0%
ALL	10.0%	9.5%	11.0%

HEDGING POLICY

CASHFLOW AND P/L

• TOMRA can hedge up to one year of future predicted cash flows. Gains and losses on these hedges are recorded at the finance line, not influencing EBITA

B/S

• TOMRA only hedges B/S items where exchange rate fluctuations could have P/L impact. Gains and losses on B/S hedging are recorded in accordance with IAS 21 and will normally not have P/L impact

Financial highlights | P&L statement

		st 1 Quarter
Amounts in NOK million	2021	2020	2020 Adj*
Revenues	2,291	2,302	2,214
Collection Solutions	1,364	1,168	1,131
Recycling Mining	318	485	473
Food	609	649	610
Gross contribution in %	973 42%	973 42%	933 42%
Operating expenses	733	745	731
EBITA in %	240 10%	228 10%	202 9%

TOMRA Collection Solutions financials

		st 1 Quarter
Amounts in NOK million	2021	2020	2020 Adj*
Revenues	1,364	1,168	1,131
Northern Europe	203	192
Europe (ex Northern)	626	423
North America	358	386
Rest of the world	177	167
Gross contribution in %	573 42%	462 40%	451 40%
Operating expenses	317	311	305
EBITA in %	256 19%	151 13%	146 13%

TOMRA Recycling Mining financials

	st 1 Quarter
Amounts in NOK million	2021	2020	2020 Adj*
Revenues	318	485	473
Europe	200	278
America	65	84
Asia	30	75
Rest of the world	23	48
Gross contribution	159	249	246
in %	50%	51%	52%
Operating expenses	136	137	136
EBITA	23	112	110
in %	7%	23%	23%

Based upon current production and delivery plans, the revenues in 2Q21 are estimated to be approximately 60% of order backlog at the end of 1Q21

432

TOMRA Food financials

	st 1 Quarter
Amounts in NOK million	2021	2020	2020 Adj*
Revenues	609	649	610
Europe	188	195
America	260	274
Asia	48	77
Rest of the world	113	103
Gross contribution	241	262	236
in %	40%	40%	39%
Operating expenses	252	274	267
EBITA	-11	-12	-31
in %	-2%	-2%	-5%

Based upon current production and delivery plans, the revenues in 2Q21 are estimated to be approximately 75% of order backlog at the end of 1Q21

Financial highlights | Balance sheet and cash flow

	31 March		31 Dec
Amounts in NOK million	2021	2020	2020
ASSETS	10,806	12,250	10,977
Intangible non-current assets	3,737	4,226	3,846
Tangible non-current assets	2,263	2,638	2,371
Financial non-current assets	362	463	353
Inventory	1,571	1,943	1,492
Receivables	2,419	2,536	2,383
Cash and cash equivalents	454	444	532
LIABILITIES AND EQUITY	10,806	12,250	10,977
Equity	5,568	5,924	5,591
Lease liabilities	1,047	1,260	1,104
Interest-bearing liabilities	1,300	1,939	1,414
Non interest-bearing liabilities	2,891	3,127	2,868

Cashflow from operations

• Cash flow from operations of 269 MNOK in the first quarter 2021 (265 MNOK in first quarter 2020)

Solidity and gearing

52% equity ratio
NIBD/EBITDA (Rolling 12 months)
- o 0.5x without IFRS 16 / 0.9x including IFRS 16

TOMRA has a solid financial position

Weighted average debt maturity of 2.8 years
All interest-bearing is swapped to EUR and is exposed to EUR/NOK exchange rate fluctuations.

Debt maturity profile Current funding sources

TOMRA has a satisfactory liquidity situation with available unused credit lines of approx. 1 199 MNOK
A senior unsecured bonds (no financial covenants) of 1 000 MNOK (swapped to EUR) is listed on Oslo Stock Exchange
The financial covenant related to the bank debt is minimum equity ratio of 30 %

Not including 300MNOK cash-pool overdraft facility

Outlook

Collection Solutions	• Overall good momentum in TOMRA Collection Solutions • Expansion in Netherlands expected to have a positive impact
Recycling/Mining	• Positive momentum assumed to continue • In the short term, the COVID-19 situation could still have some negative effects
Food	• Good momentum, some short-term challenges from COVID-19 • Mid and long-term opportunities in both the fresh and processed food segments
Currency	• Reporting in NOK and with some NOK cost base, TOMRA will in general benefit from a weak NOK, particularly measured against EUR • With significant revenues in USD and costs in EUR, TOMRA Food is exposed to USD/EUR

Copyright

The material in this Document (which may be a presentation, video, brochure or other material), hereafter called Document, including copy, photographs, drawings and other images, remains the property of TOMRA Systems ASA or third-party contributors where appropriate. No part of this Document may be reproduced or used in any form without express written prior permission from TOMRA Systems ASA and applicable acknowledgements. No trademark, copyright or other notice shall be altered or removed from any reproduction

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 trademark 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