TOMRA Systems — Interim / Quarterly Report 2022

Apr 29, 2022

1 st quarter 2022 results announcement

TOMRA Systems ASA 29 April 2022 © TOMRA

HIGHLIGHTS FROM THE QUARTER

Financial highlights

Revenues	• Revenues of 2,501 MNOK (2,291 MNOK in first quarter 2021) Adjusted for currency, revenues were: - Up 10% for TOMRA Group - Up 3% in TOMRA Collection - Up 56% in TOMRA Recycling Mining - Up 1% in TOMRA Food
Gross margin	• Gross margin 40% (down from 42% in fourth quarter 2021) - Lower margins in all divisions
Operating expenses	• Operating expenses of 760 MNOK (733 MNOK in first quarter 2021) - Good cost control and continued investment in future oriented activities
EBITA	• EBITA of 237 MNOK – slightly down from 240 MNOK in first quarter 2021
Cash flow	• Cash flow from operations of 166 MNOK – compared to 269 MNOK in first quarter 2021
Order intake	• Order intake of 1,537 MNOK in TOMRA Recycling Mining and TOMRA Food - Up 16% compared to first quarter 2021, adjusted for currencies - Positive momentum in all segments, up 35% in TOMRA Recycling Mining and up 4% in TOMRA Food - All-time high order backlog of 2,177 MNOK, up 16% currency adjusted compared to end of first quarter 2021
Other	• Good delivery performance, but inflation and continued supply chain shortages represent a challenge • Activities on pricing and cost reduction are managed closely

Business update for TOMRA Collection

Successful roll-out of the deposit system in Latvia

Latvia DRS live on Feb 1st, 2022

On February 1st, 2022, Latvia implemented a deposit system for beverage containers, with a transition period until end of July 2022.

TOMRA Collection quarterly update

• ‒ Successful rollout of the deposit system in Latvia
• ‒ Good momentum in existing markets
• ‒ Continued sales in Slovakia and initial equipment sales in Romania in preparation for the upcoming deposit system
• ‒ Continued ramp-up investments for establishing in new markets

The Netherlands – January 2023 (expansion)

From January 1, 2023, The Netherlands will extend1) their deposit system to include cans, which are planned to be collected via retail.

Romania – 2022/2023

Romania passed the government decision2) to introduce a deposit system, the implementation timeline being 2022-2023.

Quebec – 2023 (date to be set with final regulations) On January 26th, 2022, the state of Quebec published3) draft regulations for the expansion and modernization of the current DRS.

Ireland – 2023

On November 17th, 2021, Ireland approved4) DRS regulations. The start date and deposit value have not yet been communicated.

Scotland – August 2023

In May 2020, Scotland approved deposit regulations and in Dec 20215) , the implementation date was set to August 16th, 2023.

Victoria and Tasmania – 2023

In April 20216) , Victoria announced DRS introduction; In March 20227) , the Tasmanian bottle bill passed the Parliament and became law.

Connecticut – 2023 and 2024 (expansion)

In Jun 20218) , Connecticut decided to expand their deposit system to include most carbonated beverages (from 2023) and raise the deposit value to 10¢ (from 2024).

Austria – January 2025

In November 2021, Austria announced the introduction9) of deposit on single-use beverage containers, with start date January 1st, 2025.

1) https://nos.nl/artikel/2367153-kogel-door-de-kerk-per-31-december-2022-statiegeld-op-blikjes.html 2) https://legeaz.net/monitorul-oficial-955-2021/hg-1074-2021-sistem-garantie-returnare-ambalaje-nereutilizabile 3) http://www2.publicationsduquebec.gouv.qc.ca/dynamicSearch/telecharge.php?type=1&file=76313.pdf

4) https://www.gov.ie/en/press-release/b7f94-regulations-signed-for-a-deposit-return-scheme-for-plastic-bottles-and-aluminium-cans/ 5) https://www.gov.scot/news/scotlands-deposit-return-scheme/ 6) https://www.premier.vic.gov.au/victoria-set-deliver-cash-cans

7) https://nre.tas.gov.au/environmental-management/container-refund-scheme 8) https://www.cga.ct.gov/asp/cgabillstatus/cgabillstatus.asp?selBillType=Bill&bill_num=SB01037&which_year=2021 9) https://www.parlament.gv.at/PAKT/VHG/XXVII/I/I_01104/index.shtml#tab-Uebersicht

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Business update for TOMRA Recycling Mining

Waste sorting and plastics recycling

• Continued good momentum across main geographies
• High activity level both in waste sorting (material collection) and recycling (material upgrade) segments

Order intake increase of 35% compared to 1Q21 Plastic and metal prices at continued high level

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

Metal recycling and mining

• Solid growth in metal recycling
• Emissions reduction efforts and increased energy prices sustained the high demand for scrap metal
• Good interest level in mining applications

UK's largest multi-polymer facility – enabled with TOMRA technology

Viridor's Avonmouth plant opened on March 3, 2022:

• Infeed of 80,000 tons per annum of UK sourced post-consumer material
• Three sorting lines: PET, HDPE and PP

• 99% purity level, including food grade

• 60,000 tons of recycled polymer will be put on the market, including 14,000 tons of food-grade PET

Business update for TOMRA Food

Positive investment sentiment in both segments

Processed Food

• Good demand signals from food service
• Higher labor costs, particularly in US, support investment in automation

Fresh Food

• Continued good momentum
• Strong relative growth in citrus and cherry in the quarter

TOMRA innovations at Fruit Logistica in Berlin

Blueberry application

Robotic packing system – automation of blueberry sorting; part of our complete solution in blueberry processing.

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 %

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%
OTHER2	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

¹ EUR includes DKK NOTE: Estimated and rounded figures ² Most important: AUD, NZD, RMB, CAD, SEK, GBP and JPY

Financial highlights | P&L statement

		st 1 Quarter
Amounts in NOK million	2022	2021	2021 Adj*
Revenues	2,501	2,291	2,282
Collection	1,393	1,364	1,355
Recycling Mining	489	318	314
Food	618	609	613
Gross contribution in %	996 40%	973 42%	975 43%
Operating expenses	760	733	727
EBITA in %	237 9%	240 10%	248 11%

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TOMRA Collection financials

		st 1 Quarter
Amounts in NOK million	2022	2021	2021 Adj*
Revenues	1,393	1,364	1,355
Northern Europe	246	203
Europe (ex Northern)	573	626
North America	393	358
Rest of the world	182	177
Gross contribution in %	538 39%	573 42%	567 42%
Operating expenses	331	317	316
EBITA in %	207 15%	256 19%	251 19%

TOMRA Recycling Mining financials

		st 1 Quarter
Amounts in NOK million	2022	2021	2021 Adj*
Revenues	489	318	314
Europe	309	200
America	94	65
Asia	47	30
Rest of the world	40	23
Gross contribution	236	159	159
in %	48%	50%	51%
Operating expenses	146	136	133
EBITA	90	23	26
in %	18%	7%	8%

Based upon current production and delivery plans, the revenues in 2Q22 are estimated to be approximately 65% of order backlog at the end of 1Q22

TOMRA Food financials

	st 1 Quarter
Amounts in NOK million	2022	2021	2021 Adj*
Revenues	618	609	613
Europe	140	188
America	311	260
Asia	76	48
Rest of the world	90	113
Gross contribution	222	241	249
in %	36%	40%	41%
Operating expenses	249	252	250
EBITA	-28	-11	-1
in %	-4%	-2%	-0%

1Q19 1Q20 1Q21 1Q22

Based upon current production and delivery plans, the revenues in 2Q22 are estimated to be approximately 65% of order backlog at the end of 1Q22

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Financial highlights | Balance sheet and cash flow

		31 March	31 Dec
Amounts in NOK million	2022	2021	2021
ASSETS	11,821	10,806	11,589
Intangible non-current assets	3,742	3,737	3,790
Tangible non-current assets	2,269	2,263	2,197
Financial non-current assets	388	362	347
Inventory	1,921	1,571	1,883
Receivables	2,881	2,419	2,740
Cash and cash equivalents	619	454	632
LIABILITIES AND EQUITY	11,821	10,806	11,589
Equity	6,249	5,568	6,164
Lease liabilities	758	1,047	1,015
Interest-bearing liabilities	1,163	1,300	1,004
Non-interest-bearing liabilities	3,651	2,891	3,406

Cashflow from operations

• Cash flow from operations of 166 MNOK in the first quarter 2022 (269 MNOK in first quarter 2021)

Solidity and gearing

• 53% equity ratio
• NIBD/EBITDA (rolling 12 months) of 0.5x including IFRS 16

TOMRA has a solid financial position

Debt maturity profile Current funding sources

• Weighted average debt maturity of 1.8 years
• All interest-bearing is swapped to EUR and is exposed to EUR/NOK exchange rate fluctuations.

Drawn Undrawn

• TOMRA has a satisfactory liquidity situation with available unused credit lines of approx. 1 311 MNOK
• Senior unsecured bonds (no financial covenants) of 1 000 MNOK (swapped to EUR) are listed on Oslo Stock Exchange
• The financial covenant related to the bank debt is minimum equity ratio of 30 %

Not including unused 300MNOK cash-pool overdraft facility*

Outlook

Collection	• High activity related to preparation for new markets • Quarterly performance will be dependent upon timing of new initiatives
Recycling Mining	• Positive momentum assumed to continue • High commodity prices and demand for recycled materials are expected to drive growth
Food	• Good demand signals and investment sentiment • Mid and long-term opportunities in both the fresh and processed food segments
Supply Chain	• Shortages in the supply chain and logistical challenges are expected to continue • Component price increases and inflation continue to impact negatively in the short term
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

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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 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