TOMRA Systems — Investor Presentation 2014

Jan 9, 2014

SEB NORDIC SEMINAR 2014

President and CEO, Stefan Ranstrand 9 January 2014

POSITIONING TOMRA TOWARDS MACRO TRENDS

THE CHALLENGE: THE OPPORTUNITY:

3 billion more middle-class consumers expected to be in the global economy by 2030

Up to \$1.1 trillion spent annually on resource subsidies

\$2.9 trillion of savings in

2030 from capturing the resource productivity potential

At least \$1 trillion

more investment in the resource system needed each year to meet future resource demands

SOURCE: McKinsey

THE WORLD POPULATION AND STANDARD OF LIVING IS INCREASING DRAMATICALLY

WORLD RESOURCES ARE UNDER UNPRECEDENTED PRESSURE

RESOURCE PRODUCTIVITY MUST INCREASE TO ENSURE SUSTAINABLE DEVELOPMENT

A MARKET LEADER IN ALL ACTIVE MARKETS

* In total food (incl. rice and lane sorting): 12-15%

TOMRA COLLECTION SOLUTIONS: ELEMENTS OF A MODERN REVERSE VENDING SYSTEM

User communication

Recognition system

Sorting & processing Data administration

HOW DOES SENSOR BASED SEPARATION WORK?

• High-tech sensors to identify objects
• High speed processing of information (material, shape, size, color, defect, damage and location of objects)
• Precise sorting by air jets or mechanical fingers
• Product specific equipment design often including multiple technologies to maximize sorting efficiency

AMBITIOUS TARGETS FOR GROWTH AND POSITIONING…

…TO BE EXECUTED WITHIN OUR STRATEGIC DIRECTION

Ultimately, the Resource Revolution goes beyond a single goal or a set of numbers

We all have a stake in getting results – it is a global challenge

TCS: THE GERMAN REPLACEMENT OPPORTUNITY

TCS: ENTER NEW SEGMENTS

TSS: EFFICIENCY IN PRODUCT DEVELOPMENT: COMMON SORTING PLATFORM

Tapping into the synergy potential through streamlining our sorting platform

TSS: CROSS UTILIZING OUR PORTFOLIO TECHNOLOGIES

TITECH NIR + ODENBERG platform

Field Potato Sorter

• The NIR technology allows efficient removal of rocks, dirt and rotten potatoes before the potatoes are stored
• The solution opens up sorting of unwashed potatoes in a way that previously was not possible

BEST LASER + TOMRA mining platform

PRO Laser Duo

• The LASER technology allows detection of quartz of all colors. This opens for sorting of quartz itself, and gold bearing quartz mineralization
• The solution is unique in the market and further underlines our technological leadership

TITECH NIR + BEST LASER

Nimbus BSI

• An NIR sensor has been added to the NIMBUS machine platform
• The new machine increases our competitiveness in the nuts segment

Several more projects on combining technologies into new products in the pipeline

TSS: Q-VISION INNOVATING TO SOLVE A PROBLEM – TRANSFORMING AN INDUSTRY

• Food safety and traceability have become more important than ever with the recent meat scandals across Europe
• TOMRA Sorting has developed an in-line meat analysis solution
• The QVision 500 can conduct:
• Fat
• Protein
• Collagen
• Moisture analysis solution
• Allows meat processors to provide a consistent product quality to their customers

The machine was launched at the IFFA industry trade show in Frankfurt in May and YTD almost 30 units have been sold

• Our solutions, in use around the globe, helped keep up to 20 millions of tons of CO₂ from being released into the atmosphere in 2012
• 30 bn used beverage containers are captured every year through our reverse vending machines
• Our vertical balers contribute to a daily reduction of 20,000 waste pickups, saving 160,000 liters of fuel consumption
• Our steam peelers process 15 million tons of potatoes per year with a 1% yield improvement over other alternatives
• 715,000 tons of metal are recovered every year by our metalrecycling machines

Q&A

TOMRA INVESTOR PRESENTATION

TOMRA SYSTEMS ASA 9th of January 2014

© 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 creates sensor-based solutions for optimal resource productivity

TOMRA IN SHORT

THE TOMRA TRANSFORMATION JOURNEY

CREATING VALUE THROUGH TWO STRONG BUSINESS AREAS

Two strong areas for value creation

Source: Rounded proforma revenue figures after BEST acquisition

TOMRA'S TWO BUSINESS AREAS

	REVERSE VENDING	RECYCLING
Share of '12 sales*	~43%	~13%
Employees	960	190
Customers	Grocery retailers	Material recovery facilities, scrap dealers, metal shredder operators
Market share	~65%	~50-60%

	COMPACTION	MINING
Share of '12 sales*	~4%	~3%
Employees	75	50
Customers	Retail, manufacturing industry, restaurant, catering & hotel, warehouse & distribution
Market share	~15-20% in active markets	~40-60%

	MATERIAL RECOVERY	FOOD
Share of '12 sales*	~13%	~24%
Employees	400	560
Customers	Grocery retailers and beverage manufacturers	Food growers, packers and processors
Market share	~60% in USA (markets served)	~25%

RECYCLING
~13%
190

MINING
~3%
50
Mining companies

FOOD

* Based on 2012 proforma numbers (including BEST for the full year)

TOMRA INSTALLED BASE

REVERSE VENDING		COMPACTION		RECYCLING		MINING		FOOD
Nordic Germany Other Europe Japan	~15,300 ~24,400 ~12,500 ~650	Nordic UK Other Europe Asia/Oceania	~16,500 ~17,500 ~28,200 ~4,100	Europe US / Canada Asia Other	~2,180 ~620 ~270 ~400	Europe US / Canada Australia South Africa	~70 ~35 ~20 ~50	Europe US/Canada Asia/Oceania South America	~3,265 ~2,580 ~450 ~190
North America South America	~17,000 ~1,050	North America Middle East/Africa	~4,200 ~500			Other	~25	Middle East/ Africa	~515
TOTAL	~70,900	TOTAL	~71,000	TOTAL	~3,470	TOTAL	~200	TOTAL	~7,000

Numbers per year end 2012

USING THE POWER OF BUSINESS TO DO GOOD

TOMRA IN DEPTH

TOMRA Collection Solutions

RECYCLING OF BEVERAGE PACKAGING IN A DEPOSIT SYSTEM

ELEMENTS OF A MODERN REVERSE VENDING SYSTEM

User communication

Recognition system

Sorting & processing Data administration

THE USED BEVERAGE CONTAINER RECYCLING VALUE CHAIN

Generic used beverage container (UBC) recycling value chain

RVM-based UBC recycling value chain

Number of reverse vending machines (backrooms excluded) sold per region in 2012 Units

ENSURE SUFFICIENT DIFFERENTIATION BY DELIVERING ON PRODUCT ROADMAP AMBITIONS

2012

2015

T-9: THE FIRST OF A NEW GENERATION OF MACHINES

• On 23rd September 2013, TOMRA presented the first machine of the new generation of machines to come
• T-9 features the first 360 degree recognition system applied in an RVM and a completely new industrial design
• The machine is faster, cleaner and takes all types of beverage containers
• The launch has been successful
• Several machines already installed in core markets
• Key product for replacement sale in e.g. Germany

TOMRA is setting the standard for reverse vending for the next decade

REVERSE VENDING ADVANTAGES

COMPETITIVE LANDSCAPE

Number of RVS markets

Source: TOMRA estimates and analysis

ESTIMATES

• Assist in developing new deposit markets Ensure continued relevance of deposit systems 2 Defend and nurture core deposit market business 1 Embrace new business models ^{3 4} Expand scope of business • Target new material streams

• Increase differentiation towards competition
• Further reduce the cost of reverse vending systems

• Increase scope of existing deposit markets

• Capture new volume by entering new segments

• Create new revenue streams from Software/IT

COGS SAVINGS PROGRAM

• Moving sourcing from high cost to low cost countries has been the major driver for the COGS savings to date
• Our new portfolio has been designed to allow an even higher degree of low cost country sourcing and to benefit from modern manufacturing processes
• In the early phase of a product's lifetime, COGS will be high due to small sourcing volumes and high cost of certain cutting-edge components

Phases of COGS saving program Achieved and estimated savings Percent (of average portfolio cost)

ILLUSTRATIVE

EXAMPLE: CHANGES IN SOURCING SETUP

COGS distribution by region (sourcing)

Source: TOMRA analysis

ENSURE CONTINUED RELEVANCE OF AUTOMATED DEPOSIT SYSTEMS

40 % 60 % Handled with RVS Handled manually Handling method for deposit containers Percent of total

Share of containers sold with deposit Percent of total

ILLUSTRATIVE

ENTER NEW SEGMENTS

CREATE NEW REVENUE STREAMS FROM SW/IT

TOMRAPIUS			Mill Freem		* A fettigs / 42 Tonsier / O Liquid
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Filters		Ostave deck -	TO	Provenir!	D TRACKS FAN FIL
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Integrating hardware and software into attractive and engaging combos

NEW DEPOSIT MARKETS

COLLECTION SOLUTIONS – FINANCIAL DASHBOARD

TARGETS 2013 -2018

Yearly growth 4 – 8%

COGS cut program continues: 40% reduced COGS on new RVM machines from 2010 to 2015

EBITA-margin 17%-22%

TOMRA Sorting Solutions

STRONG REVENUE GROWTH SINCE INCEPTION IN 1996

* Includes BEST proforma for 2012 and excluding Chilling and Freezing unit divested Q1 2013

HOW DOES SENSOR BASED SEPARATION WORK?

• High-tech sensors to identify objects
• High speed processing of information (material, shape, size, color, defect, damage and location of objects)
• Precise sorting by air jets or mechanical fingers
• Product specific equipment design often including multiple technologies to maximize sorting efficiency

ADOPTION OF SENSOR-BASED SORTING AT DIFFERENT MATURITY LEVELS

* In certain mining sub-segments, such as industrial minerals and diamonds, sensor-based sorting is a more mature technology.

CUTTING-EDGE TECHNOLOGY DRIVEN BY SIGNIFICANT INVESTMENTS IN R&D…

SENSOR PORTFOLIO

• In-house R&D department with more than 20% of all employees
• 8% of revenue invested in R&D
• Developing own sensors
• Using own software and data processing tools
• Ownership of 80 patents
• Partnership with leading R&D institutions: SINTEF, CTR, Fraunhofer ILT; universities like RWTH, Aachen and Brussels

…TO DEVELOP PRODUCTS SERVING A WIDE RANGE OF DETECTION PARAMETERS

Color Removal of discolorations in monoand mixed-color material

Blemishes Objects with spots or other (small) blemishes are removed

Defects Removal of visible and invisible small and substantial defects

Structure Removal of soft, molded or rotten food

Density Detection of density differences

Damage Broken, split and damaged objects are detected and removed

Shape & Size Sort on length, width, diameter, area, broken-piece recognition, …

Biometric Characteristics

Sort based on water content and removal of micotoxyn contaminations

Foreign Material

Removal of foreign material in a material stream, e.g. insects, worms, snails or plastics in food applications

Fluo

X-RAY

density and shape

Based on the chlorophyll level present in produce defects are removed

Detox Removal of produce contaminated with aflatoxin

Analysis of objects based on their

A COMMON SENSOR BASED TECHNOLOGY PORTFOLIO

Gamma
radiation
X-ray
Ultraviolett (UV)
Visible light (VIS)
Near Infrared (NIR)
Infrarot (IR)
Microwaves
Radio waves
Alternating current (AC)

[m]	Sensor/ Technology	Material Property	Segment
10-12 10-11	RM (Radiometric)	Natural Gamma Radiation	Mining
10-10 10-9	XRT (X-ray transmission) Low Energy X-ray	Atomic Density	Recycling, Mining, Food
10-8 10-7	XRF	X ray fluorescence (Elemental Spectroscopy)	Recycling, Mining
10-6 10-5 10-4 10-3 10-2 10-1	COLOR (CCD Color Camera)	Reflection, Absorption, Transmission	Recycling, Mining, Food
	Laser attenuation and PM (Photometric)	Monochromatic Reflection /Absorption of Laser Light Scattering analysis of Laser Light	Mining, Food
	NIR / MIR (Near/Medium Infrared Spectrometry)	Reflection, Absorption (Molecular Spectroscopy)	Recycling, Mining, Food
101 102 103	LIBS	Laser induced breakdown spectroscopy	Recycling, Mining
104	EM (Electro Magnetic sensor)	Conductivity, permeability	Recycling, Mining, Food

CROSS UTILIZING OUR PORTFOLIO TECHNOLOGIES

TITECH NIR + ODENBERG platform

Field Potato Sorter

• The NIR technology allows efficient removal of rocks, dirt and rotten potatoes before the potatoes are stored
• The solution opens up sorting of unwashed potatoes in a way that previously was not possible

BEST LASER + TOMRA mining platform

PRO Laser Duo

• The LASER technology allows detection of quartz of all colors. This opens for sorting of quartz itself, and gold bearing quartz mineralization
• The solution is unique in the market and further underlines our technological leadership

TITECH NIR + BEST LASER

Nimbus BSI

• An NIR sensor has been added to the NIMBUS machine platform
• The new machine increases our competitiveness in the nuts segment

Several more projects on combining technologies into new products in the pipeline

SORTING UNWASHED POTATOES: WORKING PRINCIPLE

• The Field Potato Sorter is ODENBERG's first venture into the unwashed potato market
• The machine uses unique near infra-red technology to remove soil clods, stones and rotten potatoes, in addition to the foreign material commonly found in fields such as golf balls, plastics, wood etc
• The FPS sorter should be used after a soil remover and is designed to fit existing grading equipment or be used as a standalone unit and can operate on harvested potato crop before and after storage
• The system also provides online potato size data for logging, plus sorter operating information

SORTING VALUE PROPOSITION

MARKET SIZE AND POTENTIAL

Total annual market size

EUR million

Source: TOMRA estimates and analysis

* Market size for food includes peeling, meat/process analytics, virgin materials and tobacco.

Market growth

• Market expected to grow at rate of around 7-9% per year
• A large part of growth from unlocking of dormant potential – only possible by developing new applications and technologies
• Some growth in "old world", but faster growth in "new world"

Expected development in geographical revenue contribution

SORTING SOLUTIONS: OUR STRATEGY

		Food	Recycling	Mining
			More than doubling of emerging markets revenue (but North America and Europe still 60% of business in 2018)
1	Revenue growth	New applications representing 25% of revenue in 2018	15 M€ growth in new segments	Significant expansion of sales network
	of 10-15% over the period	New segments representing 10% of revenue in 2018	50% growth in service revenue	Succeed in high volume segments
		Grow with existing customers and double service revenue
	Extend		Common sorting platform for all new product developments
2	technology		Cross-utilization of sensor portfolio, e.g. NIR/BSI in food and laser in mining
	leadership		Extend current leadership in core NIR and laser technologies, and develop new cutting edge sensors
			Design changes, economies of scale and purchasing power to lower COGS
3	Improve		Consolidation of manufacturing and sourcing; increased sourcing from low cost countries
	operational efficiency		Streamlining of organization and processes to take out synergies across business units
			Target to grow profits at several percentage points faster than revenue

TOMRA SORTING: ORDER BACKLOG DEVELOPMENT

Other TSS US french fries plant

FINANCIAL DASHBOARD – SORTING SOLUTIONS

TARGETS 2013 -2018

Yearly organic growth 10-15%

Geographical expansion

EBITA-margin 18-23%

(i) In markets served. Total food sorting (incl. rice and lane sorting*) 12-15%

61

GROWTH IN GLOBAL FOOD DEMAND WILL SPUR INVESTMENTS IN AUTOMATION

Drivers and trends

• Increasing food consumption in emerging markets, more mid-class consumers
• Industry focus on increased productivity and reducing costs through automation & quality control
• Higher quality demands from the consumers
• Stricter regulations from governments concerning food safety , health & traceability
• Shift towards packaged convenience food and fast food
• Risk of claims & recalls
• Social media snowball effect (Twitter, Facebook, etc.)
• Globalization of brands and sourcing set up
• Scarcity & expense of (seasonal) manual labor
• Consolidation in the retail and processing sectors
• Adoption of technology in emerging markets

MARKET SIZE FOOD SORTING*

Total annual market size

EUR million

* Market sizes shown include peeling, meat/process analytics, virgin materials and tobacco.

Market growth

• Total market for food sorting growing around 6- 8% per year
• Approximately a third of total growth is dormant potential
• only unlocked by development of new applications and technologies
• New world share grows but the two old world ~770 champions (Europe & Americas) remain strong

Expected development in geographical revenue contribution

WE ARE UNIQUELY POSITIONED TO SERVE THE ENTIRE VALUE CHAIN WITH OUR PRODUCT PLATFORM

Sales of potato-related products account for about 25% of the sales in the food division

TOMRA HAS THE BROADEST FOOTPRINT WITHIN THE FOOD SORTING UNIVERSE

* TOMRA estimates

THREE WAYS OF SORTING WITHIN THE FOOD SEGMENT

Free fall (Channel / Chute)
Application	Seeds, rice, grains
Companies	Buhler, Key, Best, Satake, Daewon, Hefei, Orange
Sensor tech.	Camera (simple)

Belt
Application	Prepared /preserved veg. and fruit
Companies	Best, Key, Odenberg, Raytec
Sensor tech.	Several (complex)

Lane
Application	Fresh produce
Companies	MAF, Aweta, Greefa, Compac
Sensor tech.	Several (medium)

Note: Piechart showing estimated total revenue within the food sorting segment

FOOD COMPETITIVE LANDSCAPE

TOMRA competitive positioning

• Size (revenues)
• Widest range of applications (150+)
• Broadest technology base
• Geographic reach (~80 countries)
• Market share in targeted segments
• Transformative solutions (Q-Vision)
• Market share: 40-50% in markets served*

* Total Food sorting (also including rice and lane sorting): 12-15%

OUR BROAD COVERAGE AND TECHNOLOGY BASE IS SETTING US APART

	DRIED FRUIT	NUTS	FRESH CUT	FRUIT	VEGETABLES	MEAT	POTATOES	SEAFOOD
FOOD	• Apricots • Craisins • Figs • Prunes • Raisins	• Almonds • Cashews • Hazelnuts • Macadamias • Peanuts • Pecans • Pistachios • Seeds • Walnuts	• Baby leaves •Iceberg lettuce • Spinach • Spring mix	• Apples • Blackberries • Blueberries • Cherries • Citrus • Cranberries • Peaches & pears • Raspberries • Strawberries • Tomatoes	• Beans • Beet • Broccoli • Carrots • Corn • Cucumbers • IQF vegetables • Jalapenos/ Peppers • Onions • Peas • Pickles	• Bacon bits • Beef •IQF meat • Pork • Pork rind	• Washed • French fries • Unpeeled • Peeled • Potato chips • Specialty products • Sweet	• Mussels • Scallops • Shrimps
SENSOR TECHNOLOGY	LASER NIR VIS X-RAY	LASER CAMERA X-RAY	LASER CAMERA	LASER CAMERA NIR VIS	LASER CAMERA NIR VIS	LASER CAMERA NIR	LASER CAMERA NIR VIS	LASER CAMERA NIR VIS X-RAY

OUR CUSTOMERS

We are active in five continents and 80 markets

• 6 of the 10 largest, global food companies are our customers
• We have ~2,000 customers globally

TSS Food provides sorting solutions for:

• Growers: Harvester mounted tomato, onion and garlic sorters
• ~5% of our customers
• Packers: Sorting of many different types of fruit and vegetables by color, size, shape, defect, blemish, damage or foreign objects
• ~30% of our customers
• Processors: Sorting of processed potatoes (French fries, chips), fruits and vegetables
• ~65% of our customers

SPECIALTY PRODUCTS APPLICATIONS

	RAW MATERIALS	TOBACCO	10 %	Peeling
APPLICATIONS	• Virgin plastics • Synthetic rubber • Virgin wood	• Threshing lamina • Threshing stems • Oriental leaf	15 %	Meat (Process Analytics)
	• Specialty chemicals	• Primary lamina • Primary stems		Raw materials and tobacco
SENSOR TECHNOLOGY	LASER/FLUO CAMERA	LASER/FLUO CAMERA	75 %	Vegetables, fresh cut, processed lettuce and spinach
	HYPERSPECTRAL		(Food Sorting)	Nuts
				Fruits
				Dried Fruit and Seafood
				Potatoes
				Whole product sorting

GLOBAL DRIVERS FOR THE RECYCLING SEGMENT

Drivers and trends

• Consumption and industry production level increase
• Favorable changes in regulatory framework (DSD, WEEE, ELV, etc)
• Commodity price levels and fluctuation
• Access to financing
• Demand for recycled raw materials
• Increasing labor costs in emerging world drive adoption of automatic sorting technologies
• Some countries in Western Europe partly saturated
• Pre-sorted (plastics) still door opener in new markets
• Municipal Solid Waste (MSW) important in emerging countries
• More aggressive pricing from competitors affect market

MARKET SIZE RECYCLING

Total annual market size

EUR million

Market growth

• Market expected to grow at around 7-9% per year, lower than previous expectations due to economic slowdown
• Demand in old world flattening, while new markets expected to drive growth
• Existing segments will serve as a base, whilst the majority of growth will come from:
• New geographies
• New applications
• New products

RECYCLING: APPLICATIONS AND SENSOR TECHNOLOGY

	HOUSEHOLD WASTE	PACKAGING	C & D	AUTOMOBILE SHREDDER	ELECTRONIC SCRAP
MATERIAL	• Hard plastics • Plastic film • Mixed paper • RDF • Metals • Organics/ Biomass	• Plastics • Plastic film • Cardboard • Mixed paper • Deinking paper • Metal	• Inert material • Plastic film • Metals • Wood • Paper & Cardboard • Plastics	• NF metal • Stainless steel • Copper cables • Copper • Brass • Aluminum • Meatball sorting	• Printed circuit boards • Non-ferrous metal concentrates • Cables • Copper • Brass • Stainless steel • Meatball sorting
SENSOR TECHNOLOGY	NIR VIS XRT	NIR VIS EM	NIR VIS XRT EM	NIR VIS XRT EM COLOR XRF	XRT EM NIR COLOR XRF

Mixed paper PE/PP flakes Cleaned wood Copper Wire Brass

AUTOMATED WITH TOMRA SORTING UNITS

Sorting of Municipal Solid Waste, Cyprus

RECYCLING COMPETITIVE LANDSCAPE

TOMRA competitive positioning

• Largest installed base
• Highest revenues
• Broadest technology platform
• Highest number of applications and markets served
• Leading brand
• Market share: 55-65%

Source: TOMRA estimates and analysis

GLOBAL DRIVERS FOR THE MINING SEGMENT

• Energy costs and water stress are major drivers
• Demand of all commodities is expected to grow with increased population and urbanization in the drivers seat
• Increasing labor costs in emerging world drive adoption of automatic sorting technologies
• Mining companies capex impact the investment sentiment
• Sensor based sorting is considered to be a future solution
• Hardest competition comes from alternative well proven technologies

MARKET SIZE MINING

Total annual market size

EUR million

Market growth

• Capex is forecasted to decline 2013 2014 (down 20% versus 2012)
• Expected to pick-up again during 2015
• Sensor based machines sales expected to grow at around 15% per year
• Growth is however conditional on new applications and technologies being developed
• Sensor based sorting is still a technology to be accepted and growth in this niche has

MINING: APPLICATIONS AND SENSOR TECHNOLOGY

	INDUSTRIAL MINERALS	BASE & Fe METALS	FUEL/ ENERGY	PRECIOUS METALS	DIAMONDS & GEMS	METAL SLAG
	• Calcite	•Copper	• Coal	• Gold	• Diamonds	• Stainless steel
COMMODITY	• Quarts	• Zinc	• Uranium	• Platinum	• Tanzanite	• Copper
	• Feldspar	• Nickel			• Colored	• Chrome
	• Magnesite	• Tungsten			gemstones
	• Talcum	• Iron
	• Dolomite	• Manganese
	• Salt	• Chromite
		XRT	XRT	XRT	COLOR	XRT
SENSOR TECHNOLOGY	COLOR XRT	COLOR	RM	COLOR	XRT	XRF
	NIR	EM		XRF	XRF	EM
	XRF	NIR		NIR	NIR
	Calcite	Copper	Coal	Gold	Diamonds	Ferro Silica Slag

THE CONCEPT OF SENSOR-BASED SORTING IN MINING

Mining process: Industrial minerals

• 15% to 50% of the ROM can be rejected in an early stage of the process (application dependent)
• These low grade waste rocks don't need to be transported, crushed, grinded or further treated

Mining process: Metal mining

Current segment Potential new segment

MINING COMPETITIVE LANDSCAPE

TOMRA competitive positioning

• Wide geographical coverage
• Broadest technology platform
• Leading brand
• Pioneering in developing high volume sorter in corporation with Rio Tinto
• Market share: 40-50%

Historical financial performance

KEY FINANCIALS DEVELOPMENT

EBITA and margin Earnings per share

FINANCIAL HIGHLIGHTS BALANCE SHEET, CASH FLOW AND CAPITAL STRUCTURE

Cashflow (NOKm)	2013	2012	2011	2010	2009	2008	2007	2006	2005	2004	Total
From operations	540	550	566	525	457	375	526	346	243	381	4 509
From Investing	(201)	(209)	(150)	(229)	(163)	(182)	(143)	(140)	(65)	(136)	(1 617)
Free cashflow after tax (I)	339	341	416	297	294	193	383	207	177	245	2 892
Dividend	(185)	(155)	(89)	(81)	(75)	(70)	(65)	(61)	(321)	(54)	(1 155)
Share buy back	0	(5)	(4)	(4)	(50)	(202)	(408)	(422)	(211)	0	(1 306)
Dividend minorities	(25)	(34)	(28)	(30)	(15)	(21)	(13)	(17)	(12)	(13)	(208)
Paid back to owners (II)	(210)	(195)	(121)	(116)	(140)	(293)	(486)	(499)	(545)	(66)	(2 670)
From Acquisitions (III)	0	(829)	(407)	(79)	0	(144)	0	(113)	(111)	(260)	(1 943)
Net cashflow = (I) + (II) + (III)	129	(683)	(112)	102	154	(244)	(103)	(405)	(479)	(81)	(1 720)

Amounts in NOK million	31 Sept. 2013
ASSETS	5,724
• Intangible non-current assets	2,451
• Tangible non-current assets	591
• Financial non-current assets	262
• Inventory	902
• Receivables	1,371
• Cash and cash equivalents	147
LIABILITIES AND EQUITY	5,724
• Equity	2,573
• Minority interest	84
• Interest bearing liabilities	1,654
• Non-interest bearing liabilities	1,413

NOTE: 2013 figures comprise actual YTD September 13 + 4Q13 estimated to be equal to the average of the last four 4Qs. Should not be read as guidance

CURRENCY EXPOSURE

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%	65 %	- 30 %	10 %	10 %	100 %

* EUR includes DKK

10% change in NOK towards other currencies will impact;

	Revenues	Expenses	EBITA
EUR*	4.5%	4.5%	4.5%
USD	3.0%	2.5%	6.5%
SEK	1.0%	1.0%	1.0%
OTHER	1.0%	1.0%	1.0%
ALL	9.5%	9.0%	13.0%

HEDGING POLICY

• TOMRA hedges B/S items that will have P/L impact on currency fluctuations
• TOMRA can hedge up to one year of future predicted cash flows. Gains and losses on these hedges are recorded in the finance line, not influencing EBITA

COLLECTION SOLUTIONS – SEGMENT FINANCIALS

Revenue development NOK million

Gross and EBITA margin development Percent

SORTING SOLUTIONS – SEGMENT FINANCIALS

Revenue development NOK million

Gross and EBITA margin development Percent

A COMMENT ON RETURN ON CAPITAL EMPLOYED

Capital employed is calculated as EBITA/Net assets:

• (Net assets = Total Assets Total debt, adjusted for cash, interest bearing debt, and tax items)
• 2010 ROCE for TCS is adjusted for EU fine

TOMRA has delivered ROCE in the range 30-50% for the last three years

DISCLAIMER

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 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