TOMRA Systems — Investor Presentation 2010

Apr 21, 2010

First Quarter 2010 Results

21 April 2010

TOMRA

Helping the world recycle

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TOMRA Helping the world recycle

Highlights from the quarter include:

• Steady performance in Collection technology, currency adjusted
• Continued improved performance and strong order inflow in Industrial processing technology
• Significant improved performance in Material handling West Coast operations
• Strong cashflow

1st Quarter Presentation

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TOMRA
Helping the world recycle

Financial highlights – profit and loss statement

Amounts in NOK million	1Q 2010	1Q 2009	1Q 2009 Adjusted*
Revenues	731	754	692
• Collection Technology	395	431	396
• Material Handling	205	216	195
• Industrial Processing Technology	131	107	101
Gross contribution	294	273	248
Gross margin	40%	36%	36%
Operating expenses	209	222	211
Operating profit	85	51	38
Operating margin	12%	7%	5%

• 1Q2009 actual restated at 1Q2010 exchange rates - Estimated

1st Quarter Presentation

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TOMRA
Helping the world recycle

Financial highlights – balance sheet, cash flow and capital structure

Amounts in NOK million	31 Mar 2010	31 Mar 2009
ASSETS	3123	3369
• Intangible assets	904	919
• Leasing equipment	124	114
• Other fixed assets	606	666
• Inventory	568	596
• Short-term receivables	891	1046
• Cash and cash equivalents	30	28
LIABILITIES AND EQUITY	3123	3369
• Equity	1919	1960
• Interest bearing liabilities	269	536
• Non-interest bearing liabilities	935	873

• Cash flow from operations
• 109 MNOK in 1Q 2010 versus 4 MNOK in 1Q 2009
• Partly explained by more customer prepayments
• Cash flow from finance
• Due to strong cashflow, net interest bearing debt decreased by 120 MNOK during 1Q 2010
• Strong financial position
• 61% equity
• 240 MNOK in net interest bearing debt
• Currently holding 2 million treasury shares to be cancelled at today's AGM

1st Quarter Presentation

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TOMRA
Helping the world recycle

Collection technology

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TOMRA
Helping the world recycle

Collection technology financials

Amounts in NOK million	1Q 2010	1Q 2009	1Q 2009 Adjusted*
Revenues	395	431	396
• Nordic	114	129
• Central Europe & UK	204	218
• Rest of Europe	1	1
• US East/Canada	75	82
• Rest of World	1	1
Gross contribution	189	205	187
in %	48%	48%	47%
Operating expenses	123	123	117
Operating profit	66	82	70
in %	17%	19%	18%

• 1Q2009 actual restated at 1Q2010 exchange rates - Estimated

1st Quarter Presentation

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TOMRA
Helping the world recycle

Highlights Collection technology

Overall

• Revenues flat, currency adjusted
• Stable margins

Europe

• Activity down slightly in the Nordic region, mature markets
• Slight increase in revenues in Germany as more machines enter regular service modus

US

• Revenue up 7% in local currency (USD)
• Result of increased volumes of water bottles in New York and Connecticut

Technology

• Establishment of TOMRA's operations in China is progressing according to plan
• Will be fully operational during second half 2010

1st Quarter Presentation

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TOMRA
Helping the world recycle

Industrial processing technology

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TOMRA
Helping the world recycle

Industrial processing technology financials

Amounts in NOK million	1Q 2010	1Q 2009	1Q 2009 Adjusted*
Revenues	131	107	101
• Nordic	20	15
• Central Europe & UK	48	40
• Rest of Europe	27	21
• US/Canada	13	9
• US West	11	8
• Rest of World	12	14
Gross contribution in %	66	54	49
	50%	50%	49%
Operating expenses	57	63	61
Operating profit in %	9	(9)	(12)
	7%	-	-

• 1Q2009 actual restated at 1Q2010 exchange rates - Estimated

1st Quarter Presentation

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TOMRA Helping the world recycle

Highlights Industrial processing technology

Recognition & sorting platform (TiTech Group)

• Revenues materially up compared to same quarter last year
• Order book close to all time high
• Positive momentum in plastic/paper recycling, metal recycling as well as in the mining segment
• TiTech has started hiring sales and R&D resources, in response to more promising outlook for the unit

Volume reduction (Orwak & Presona)

• Sales activity gaining momentum in Orwak
• Order for 262 Orwak-bailers received in Spain
• Market outlook for large horizontal bailers challenging
• Presona AB divested in April 2010
• Negative EBIT impact of approx. 20 MSEK - affecting 2Q 2010

1st Quarter Presentation

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TOMRA
Helping the world recycle

Industrial processing technology order book

1st Quarter Presentation

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TOMRA
Helping the world recycle

Material handling

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TOMRA Helping the world recycle

Material handling financials

Amounts in USD million	1Q 2010	1Q 2009
Revenues	35.0	31.4
• US East/Canada	18.8	17.0
• US West (California)	16.2	14.4
Gross contribution
in %	6.7	2.0
	19%	6%
Operating expenses	4.3	4.6
Operating profit
in %	2.4	(2.6)
	7%	-

1st Quarter Presentation

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TOMRA Helping the world recycle

Highlights Material handling

East Coast/Canada

• Revenue up from 17.0 MUSD to 18.8 MUSD due to more water bottles
• Improved margins as a consequence of higher volumes

California

• Performance materially improved due to a combination of:
• Higher aluminum prices
• LME 1Q2009 => $1360/ton
• LME 1Q2010 => $2175/ton
• Positive EBIT impact of almost 2 MUSD in the quarter
• Handling fees reinstated
• Were reduced by 85% from 1 July 2009 and 100% from 1 November 2009
• Negative impact of almost 1 MUSD per month
• From 1 January reinstated at 0.98 cents/container
• Will remain until 1 July 2010
• Streamlined operations
• 50 sites closed
• Two processing plants outsourced
• Reduced overheads

1st Quarter Presentation

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TOMRA
Helping the world recycle

Outlook

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TOMRA Helping the world recycle

Outlook

• Collection technology: Somewhat slower development in Europe will be partly offset by the positive effect of the deposit expansions in US
• Industrial processing technology: Activity expected to increase compared to 2009. Divestment of Presona will improve margins
• Material handling East Coast: Positive impact from more water bottles
• Material handling West Coast: Will gain from higher aluminum prices, reinstated handling fees and efficiency gains. However, a long term fix for financing of the bottle fund is not in place and handling fee revenues are therefore currently exposed
• Increased activity in IPT and establishment of China operations will slightly increase operating expenses
• The strong NOK vs EUR and USD will have a negative impact on performance in all segments

1st Quarter Presentation

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TOMRA
Helping the world recycle

Addendum slides

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TOMRA Helping the world recycle

Major shareholders

1	Orkla ASA	23 000 000	15.3%
2	Folketrygdfondet	12 141 200	8.1%
3	The Northern Trust C Treaty Account	10 287 750	6.9%
4	JP Morgan Chase Bank Nordea Treaty Account	6 735 227	4.5%
5	Varma Mutual Pension Company	3 138 000	2.1%
6	Bank of New York MEL ADR Department	3 065 882	2.0%
7	Clearstream Banking CID Dept, Frankfurt	2 993 126	2.0%
8	Holberg Norge v/Holberg Fondsforvaltning	2 945 000	2.0%
9	UBS AG, London Branc S/A IPB Secregated C	2 840 058	1.9%
10	Euroclear Bank S.A./25% Client	2 531 326	1.7%
	SUB-TOTAL	69 677 569	46.4%
	Other Shareholders	80 342 509	53.6%
	TOTAL (8,464 shareholders)	150 020 078	100.0%
	Total foreign ownership		54.3%

1st Quarter Presentation

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TOMRA Helping the world recycle

Shareholders by nationality

1	Norway	46.5%	7 528
2	Great Britain	19.1%	67
3	USA	10.4%	150
4	Luxembourg	6.5%	29
5	Finland	4.8%	22
6	France	2.6%	21
7	Belgium	2.1%	11
8	Denmark	1.6%	40
9	Sweden	1.3%	115
10	Italy	1.1%	10
	TOTAL	96.1%	7 993

1st Quarter Presentation

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TOMRA Helping the world recycle

Copyright

The material in this document, including photographs, drawings and 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 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 Presentation includes and is based, inter alia, on forward-looking information and statements that are subject to risks and uncertainties that could cause actual results to differ. These statements and this Presentation are based on current expectations, estimates and projections about global economic conditions, the economic conditions of the regions and industries that are major markets for Tomra Systems ASA and Tomra Systems ASA's (including subsidiaries and affiliates) lines of business. These expectations, estimates and projections are generally identifiable by statements containing words such as "expects", "believes", "estimates" or similar expressions. Important factors that could cause actual results to differ materially from those expectations include, among others, economic and market conditions in the geographic areas and industries that are or will be major markets for Tomra Systems' businesses, oil prices, market acceptance of new products and services, changes in governmental regulations, interest rates, fluctuations in currency exchange rates and such other factors as may be discussed from time to time in the Presentation. Although Tomra Systems ASA believes that its expectations and the Presentation 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 Presentation. Tomra Systems ASA does not guarantee the accuracy, reliability or completeness of the Presentation, 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 report or its contents. Tomra Systems consists of many legally independent entities, constituting their own separate identities. Tomra Systems is used as the common brand or trade mark for most of these entities. In this presentation we may sometimes use "Tomra Systems", "we" or "us" when we refer to Tomra Systems companies in general or where no useful purpose is served by identifying any particular Tomra Systems company.

1st Quarter Presentation