TOMRA Systems — Investor Presentation 2016

Jan 7, 2016

SEB NORDIC SEMINAR

Stefan Ranstrand 6 Januar 2016

CREATING VALUE THROUGH TWO STRONG BUSINESS AREAS

Two strong areas for value creation

Source: 2014 Annual sales figures

TOMRA Collection Solutions

ELEMENTS OF A MODERN REVERSE VENDING SYSTEM

User communication

Recognition system

Sorting & processing Data administration

COMPETITIVE LANDSCAPE*

Number of RVS markets

Annual revenue from RVS sales

Source: TOMRA estimates and analysis * Estimates

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

• In fourth quarter 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
• 2014 installations: 1,200 machines

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

GERMANY REPLACEMENT UPDATE

POTENTIAL 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 18%-23%

TOMRA Sorting Solutions

STRONG REVENUE GROWTH SINCE INCEPTION IN 1996

• Total revenue growth (organic plus inorganic) CAGR of ~33% per year from 2004- 2014
• Average annual organic growth for the same period was ~17%
• Technology base and segment/application knowledge expanded both through acquisitions and inhouse ventures

A COMMON SENSOR BASED TECHNOLOGY PORTFOLIO

	[m]
Gamma radiation	10-12 10-11
X-ray	10-10 10-9 10-8
Ultraviolett (UV)	10-7 10-6
Visible light (VIS)	10-5
Near Infrared (NIR)	10-4 10-3
Infrared (IR) Microwaves	10-2 10-1
Radio waves	101 102
Alternating current (AC)	103 104

[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 10-1 101 102 103	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
	LIBS	Laser induced breakdown spectroscopy	Recycling, Mining
104	EM (Electro Magnetic sensor)	Conductivity, permeability	Recycling, Mining, Food

TOMRA HAS THE BROADEST FOOTPRINT WITHIN THE FOOD SORTING UNIVERSE

* TOMRA estimates

Circa 5% of annual global sorter sales revenue comes from other segments, like confectionary

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

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

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

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: 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
SENSOR	COLOR	XRT COLOR	XRT RM	XRT COLOR	COLOR XRT	XRT XRF
TECHNOLOGY	XRT NIR	EM		XRF	XRF	EM
	XRF	NIR		NIR	NIR
	Calcite	Copper	Coal	Gold	Diamonds	Ferro Silica Slag

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%

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%

26

APPENDIX

KEY FINANCIALS DEVELOPMENT

EBITA and margin Earnings per share

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

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%	50 %	- 15 %	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%	5.0%
SEK	1.0%	1.0%	1.0%
OTHER	1.0%	1.0%	1.0%
ALL	9.5%	9.0%	11.5%

* EUR includes DKK

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

FINANCIAL HIGHLIGHTS P&L STATEMENT

Q3 results

	3rd Quarter			YTD
Amounts in NOK million	2015	2014	14 Adj*	2015	2014	14 Adj*
Revenues	1,748	1,188	1,346	4,327	3,349	3,737
• Collection Solutions	1,110	695	795	2,664	2,006	2,255
• Sorting Solutions	638	493	551	1,663	1,343	1,482
Gross contribution	717	508	566	1,812	1,440	1,590
in %	41%	43%	42%	42%	43%	43%
Operating expenses	393	302	341	1,144	969	1,070
EBITA	324	206	225	668	471	520
in %	19%	17%	16%	15%	14%	14%
One time costs in op.exp.	-	-	-	-	25	25

CURRENCY

Q3 results

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 BALANCE SHEET, CASH FLOW AND CAPITAL STRUCTURE

Amounts in NOK million	30 Sept 2015	30 Sept 2014	31 Dec 2014
ASSETS	7,318	5,963	6,625
• Intangible non-current assets	2,816	2,479	2,623
• Tangible non-current assets	721	616	683
• Financial non-current assets	309	285	307
• Inventory	1,158	923	913
• Receivables	1,918	1,488	1,537
• Cash and cash equivalents	396	172	436
• Assets held for sale	-	-	126
LIABILITIES AND EQUITY	7,318	5,963	6,625
• Equity	3,648	2,790	3,244
• Minority interest	136	91	115
• Interest bearing liabilities	1,439	1,565	1,649
• Non-interest bearing liabilities	2,095	1,517	1,593
• Liabilities held for sale		-	24

Q3 results

Ordinary cashflow from operations

• 384 MNOK (236 MNOK in 3Q 2014)

Solidity

• 50% equity
• NIBD/EBITDA = 1.0 (Rolling 12 months)

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