TOMRA Systems — Investor Presentation 2017

Apr 5, 2017

DNB MARKETS SME CONFERENCE

Espen Gundersen Deputy CEO/CFO 5 April 2017

CREATING VALUE THROUGH TWO STRONG BUSINESS AREAS*

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TOMRA INSTALLED BASE

REVERSE VENDING			RECYCLING	MINING
Nordic	~15,300	EMEA	~3,500	Europe	~10	EMEA
Germany	~29,500	Americas	~700	US / Canada	~30	Americas
Other Europe	~14,200	Asia	~600	Australia	~5	Asia
North America	~15,900	Other	~20	South Africa	~25
Rest of the world	~3,500			Other	~30
TOTAL	~78,400	TOTAL	~4,820	TOTAL	~100	TOTAL

Not including machines sold on OEM agreements. 2016 recount of TSS portfolio

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TOMRA Collection Solutions

ELEMENTS OF A MODERN REVERSE VENDING SYSTEM

User communication

Recognition system

Sorting & processing Data administration

CURRENT DEPOSIT MARKETS

In addition, Tomra has some activity in markets with refillable deposit systems like: Austria, Belgium, Chile, Czech Republic, France, Hungary, Poland and South Korea.

COMPETITIVE LANDSCAPE*

Number of RVS markets

Annual revenue from RVS sales

Source: TOMRA estimates and analysis * Estimates

# of installed RVS

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
• 2015 installations: ~4,000 machines
• 2016 installations: ~4.600 machines

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

ENTER NEW SEGMENTS

GERMANY REPLACEMENT UPDATE

POTENTIAL NEW DEPOSIT MARKETS

COLLECTION SOLUTIONS – FINANCIAL DASHBOARD

TARGETS 2013 -2018

Yearly growth 4 – 8%

EBITA-margin 18% – 23%

TOMRA Sorting Solutions

STRONG REVENUE GROWTH SINCE INCEPTION IN 1996

Revenue development and key milestones MNOK

• Total revenue growth (organic plus inorganic) CAGR of ~30% per year from 2004- 2016
• Average annual organic growth for the same period was ~17%
• Technology base and segment/application knowledge expanded both through acquisitions and in-

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.

A COMMON SENSOR BASED TECHNOLOGY PORTFOLIO

Gamma radiation
X-ray
Ultraviolett (UV)
Visible light (VIS)
Near Infrared (NIR)
Infrared (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	COLOR (CCD Color Camera)	Reflection, Absorption, Transmission	Recycling, Mining, Food
10-4 10-3 10-2	Laser attenuation and PM (Photometric)	Monochromatic Reflection / Absorption of Laser Light Scattering analysis of Laser Light	Mining, Food
10-1	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

BACKLOG DEVELOPMENT AND MOMENTUM

• Order intake of 649 MNOK in the quarter (up from 551 MNOK same quarter last year)
• Revenues were 738 MNOK (compared to 677 MNOK in 4Q16)
• Order backlog of 704 MNOK, up from 659 MNOK at the end of fourth quarter 2015
• Estimated backlog conversion ratio in 1Q17: 70-75%*
• NOTE: Figures do not include Compac, which will be consolidated starting 1 February 2017

* Based upon current production and delivery plans, the revenues in 1Q17 (ex Compac) are estimated to be approximately 70-75% of order backlog at the end of 4Q16

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%

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TOMRA HAS THE BROADEST FOOTPRINT WITHIN THE FOOD SORTING UNIVERSE

BULK SORTING

SINGULATED SORTING

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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: Piechartshowing estimated total revenue within the food sorting segment

FOOD COMPETITIVE LANDSCAPE

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

OUR BROAD COVERAGE AND TECHNOLOGY BASE IS SETTING US APART IN BULK SORTING

	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

INTRODUCTION TO COMPAC (ANNOUNCED 12.10.16)

Introduction

Key Financials (NZDm)¹

• Compac is a New Zealand-based provider of post-harvest solutions and services to the global fresh produce industry
• Founded in 1984 by Hamish Kennedy with HQ in Auckland NZ and has around 700 employees
• Compac has a leading position within sorting of apples, kiwifruit, cherries, citrus, stonefruit, avocados and tomatoes
• The company designs, manufactures, sells and services packhouse automation systems that sort produce based on their weight, size, shape, colour, surface blemishes and internal quality
• Fruit handling equipment singulates fruits into lanes, in-feeds (wash and wax), inspects, sorts/grades and partly packages
• About 6,000 Compac sorting lanes have been sold worldwide in over 40 markets

62 75 105 152 7 8 -1 3 -2% 0% 2% 4% 6% 8% 10% 12% -5 15 35 55 75 95 115 135 155 175 FY13 FY14 FY15 FY16 Revenues EBITDA EBITDA margin%

Spectrim: Compac's latest sorter

• The sorter was launched in 2015
• Represents an unmatched capability of external defect detection and an advanced 3D imaging and modelling
• For sorting of apples, citrus, stone fruit and kiwi fruit
• Uniform lighting that minimizes shadows and reflections
• Sensors and cameras generate up to 500 images of every piece of produce, creating an accurate 3D model of each fruit
• Three different wavelengths that can be configured to target specific defects: color, blemishes, bruising

TRANSACTION RATIONALE ELABORATED

Attractive Market	• Lane sorting is a fast-growing adjacentsegment with a ~8% historical CAGR and strong future outlook • Key market trends drive further growth, especially in the developing markets as a substitute for manual labor as we see wagesincrease • The industry is yet to mature and fully industrialize
Complimentary geographical footprint	• Geographic expansion:Utilizing the differentfootprint and strengths in certain markets • Stronger in China together
Application fit expansion	• TOMRA is currently present in processed fruit and vegetables, Compac serves as a "natural" expansion also into fresh fruit
Confirming our leading position in food	• Lane and Bulk Sorting caterto same client needs, but offers complimentary functionality • Possibility to create a comprehensive Food Sorting solution provider • First mover advantage in combining Lane and Belt sorting: TOMRA to be the first company, which is active in all technology platforms used for sensor-based sorting of Food
Mutual benefits	• Potential in data capability, IoT and solution development • Combine current offering: Bulk presorterin front of lanes • Potato business: Utilizing TSS strength in potatoes and the upcoming demand forsizing • Complimentary fit within food traceability and food safety (emerging demand)
Why Compac	• Strong potential.Ongoing and planned business improvementinitiatives and funding to get in shape • Strong brand name, recognized as the technology leader (Spectrim) • Established complimentary footprintin the US, NZ, Australia and Latin America • Good platform for growth

AUTOMATED WITH TOMRA SORTING UNITS

Sorting of Municipal Solid Waste, Cyprus

RECYCLING: APPLICATIONS AND SENSOR TECHNOLOGY

	HOUSEHOLD			AUTOMOBILE	ELECTRONIC
	WASTE	PACKAGING	C & D	SHREDDER	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 EM 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 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

Revenues Gross Contribution and margin

FINANCIAL HIGHLIGHTS BALANCE SHEET, CASH FLOW AND CAPITAL STRUCTURE

Amounts in NOK million	31 Dec 2016	31 Dec 2015
ASSETS	7,115	7,318
• Intangible non-current assets	2,750	2,816
• Tangible non-current assets	801	721
• Financial non-current assets	342	309
• Inventory	1,127	1,158
• Receivables	1,696	1,918
• Cash and cash equivalents	399	396
LIABILITIES AND EQUITY	7,115	7,318
• Equity	4,192	3,648
• Minority interest	178	136
• Interest bearing liabilities	760	1,439
• Non-interest bearing liabilities	1,985	2,095

Ordinary cashflow from operations

• 390 MNOK (343 MNOK in 4Q 2015)

Solidity

• 59% equity
• NIBD/EBITDA = 0.3x (Rolling 12 months)

CURRENCY

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 Including CNY

TOMRA SHAREHOLDER STRUCTURE

	st Top 10 shareholders as of 31 of December 2016	Shareholders by country
1	Investment AB Latour	38 130 000	25.8%
2	Folketrygdfondet	9 529 819	6.4%		3% 5% 5%
3	The Bank of New York BNYM, Stitching Dep	7 845 000	5.3%	(NOM)	6%
4	Skandinaviska Enskilda A/C Clients account	4 055 568	2.7%	(NOM)	35% 7%
5	Goldman Sachs & Co	3 395 592	2.3%	(NOM)	12%
6	Clearstream Banking	2 751 495	1.9%	(NOM)
7	The Bank of New York BNYM	2 612 603	1.8%	(NOM)	27%
8	Nordea Nordic Small	2 349 276	1.6%
9	Odin Norge	2 280 188	1.5%		Sweden Norway USA
10	Danske invest Norske C/O Danske Capital A	2 219 530	1.5%		Great Britain Luxembourg Nederland Finland Others
	Sum Top 10	75 169 071	50.8%
	Other shareholders	72 851 007	49.2%
	TOTAL (5,595 shareholders)	148 020 078	100.0%

Sweden	Norway	USA
Great Britain	Luxembourg	Nederland
Finland	Others

Source: VPS

DISCLAIMER

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 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