TOMRA Systems — Investor Presentation 2018

May 24, 2018

HANDELSBANKEN MID/SMALL CAP SEMINAR

President and CEO, Stefan Ranstrand 24th of May 2018 Stockholm, Sweden

THE DAWN OF THE RESOURCE REVOLUTION

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

• Our solutions, in use around the globe, helped keep ~25 millions of tons of CO₂ from being released into the atmosphere in 2017
• ~35 bn used beverage containers are captured every year through our reverse vending machines
• 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

CREATING VALUE THROUGH TWO STRONG BUSINESS AREAS*

TOMRA Collection Solutions

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

ONLY 2% OF THE ANNUAL PLASTIC PRODUCTION IS REUSED FOR SAME/SIMILAR PURPOSE APPLICATION

POTENTIAL NEW DEPOSIT MARKETS

North America: Possible expansion of deposit system in Quebec

Scotland:

Commitment to a Container Deposit Scheme announced in party program

UK:

Announced plans for a deposit scheme to reduce plastic pollution. Consultation period to follow

Spain: Regional initiatives ongoing

Australia:

NSW introduced deposit from December 2017

Recently approved In progress

QLD announced that they introduce deposit in 2018 Western Australia might introduce in 2019

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 was successful
• Large number of machines installed in core markets
• Key product for replacement sale in e.g. Germany

COMPETITIVE LANDSCAPE

Number of RVM markets

Annual revenue from RVM sales

Source: TOMRA estimates and analysis

TOMRA Sorting Solutions

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

A COMMON SENSOR BASED TECHNOLOGY PORTFOLIO

	RECYCLING MINING FOOD
ELECTROMAGNETIC SENSOR (EM) Electro-magnetic properties like conductivity and permeability	X	X	X
LED SPECTOMETRY (LED) Color and spectral properties based on multiple LED light sources in very high optical resolution	X	X	X
NEAR-INFRARED SPECTROSCOPY (NIR) Specific and unique spectral properties of reflected light in the near-infrared spectrum	X	X	X
VISIBLE LIGHT SPECTROMETRY (VIS) Specific and unique spectral propertiesof reflected light in the visible spectrum	X	X	X
X-RAY TRANSMISSION (XRT) Atomic density irrespective of surface properties and thickness	X	X	X
LASER INDUCED BREAKDOWN SPECTROSCOPY (LIBS) Elemental composition	X
X-RAY FLUORESCENCE (XRF) Elemental composition	X	X
INFRARED TRANSMISSION (IRT) Density and shape properties by light absorption			X
IR CAMERA (IR) Heat conductivity and heat dissipation			X
COLOR CAMERA (COLOR) Color properties measured in very high optical resolution	X	X	X
LASER REFLECTION/FLUORESCENCE (LASER) Structural, elemental and biological properties by reflection, absorption and fluorescence of laser light	X	X	X

Total annual market size

EUR million

• 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"

Source: TOMRA estimates and analysis

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

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

Chips, French fries, peeled, specialty products, sweet potatoes, unpeeled, washed

LASER, CAMERA, BSI, PULSED LED

Beans, beets, broccoli, carrots, corn, cucumbers, industrial spinach, IQF vegetables, jalapenos/peppers, onions, peas, pickles

LASER, CAMERA, BSI, PULSED LED

Almonds, cashews, hazelnuts, macadamias, peanuts, pecans, pistachios, walnuts

LASER, CAMERA, X-RAY

Apricots, cranberries, dates, figs, prunes, raisins

LASER, CAMERA, BSI, X-RAY

SEEDS & GRAINS

Barley, coffee, corn, dry beans, lentils, oat, pulses, pumpkin, sunflower and watermelon seeds, wheat

LASER, CAMERA, BSI, X-RAY

Apples, blackberries, blueberries, cherries, cranberries, peaches & pears, raspberries, strawberries, tomatoes

LASER, CAMERA, BSI, PULSED LED

Baby leaves, iceberg lettuce, spinach, spring mix

LASER, CAMERA

Mussels, scallops, seaweed, shrimps, tuna, pet food

LASER, CAMERA, BSI, X-RAY, INTERACTANCE SPECTROSCOPY

Bacon bits, beef, chicken breasts, hot dogs, IQF meat, pork, pork rind, sausages, pet food

LASER, CAMERA, BSI, INTERACTANCE SPECTROSCOPY

GUMMIES

LASER, CAMERA

TOBACCO

LASER, CAMERA

TOMRA HAS ESTABLISHED THE BROADEST FOOTPRINT WITHIN FOOD SORTING

FOOD COMPETITIVE LANDSCAPE

TOMRA competitive positioning

• Size (revenues)

B

• Widest range of applications (150+)
• Broadest technology base
• Geographic reach (~80 countries)
• Market share in targeted segments
• Bulk Sorting market share*: 25%
• Lane Sorting market share*: 25%

ONLY A FRACTION OF THE WASTE VOLUME IS HANDLED BY SENSOR BASED SORTING

Sensor based sorting is competing with different technologies

RECYCLING: APPLICATIONS AND SENSOR TECHNOLOGY

MUNICIPAL SOLID WASTE

Hard plastics, plastic film, mixed paper, RDF, metals, organics/biomass

Plastics, plastic film, cardboard, mixed paper, deinking paper, metal

NIR, VIS, XRT, LASER

NIR, VIS, EM

PACKAGING UPGRADING PLASTICS

PET, PE, PP, flakes

NIR, VIS, EM

NF metal, stainless steel, copper cables, copper, brass, aluminum

NIR, VIS, XRT, XRF, EM, COLOR

POST-SHREDDER ELECTRONIC SCRAP PAPER

Printed circuit boards, non-ferrous metal concentrates, cables, copper, brass, stainless steel

XRT, XRF, EM, NIR, COLOR

Deinking, cardboard, carton

NIR, VIS, EM

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

Q&A

GERMANY REPLACEMENT UPDATE

BACKLOG DEVELOPMENT AND MOMENTUM

REVENUES

ORDER INTAKE ORDER BACKLOG

• Tomra Sorting Solutions (TSS):
• Delivered all time high order intake of 1,188 MNOK in the quarter, compared to 826 MNOK same quarter last year
• Revenues came in at 820 MNOK (up from 687 MNOK in 1Q17)
• With an all time high order intake, and somewhat limited number of orders taken to P/L, the quarter ends with an all time high order backlog of 1,515 MNOK
• Estimated backlog conversion ratio in 2Q18: 70%*

OUR FOOD CUSTOMERS

KEY FINANCIALS DEVELOPMENT

EBITA and margin Earnings per share

FINANCIAL HIGHLIGHTS BALANCE SHEET, CASH FLOW AND CAPITAL STRUCTURE

Amounts in NOK million	31 March 2018	31 March 2017	31 Dec 2017
ASSETS	8,808	7,927	8,437
• Intangible non-current assets	3,673	3,177	3,412
• Tangible non-current assets	996	856	998
• Financial non-current assets	350	349	349
• Inventory	1,276	1,211	1,197
• Receivables	1,917	1,808	1,887
• Cash and cash equivalents	596	526	594
LIABILITIES AND EQUITY	8,808	7,927	8,437
• Equity	4,493	4,301	4,594
• Minority interest	143	184	143
• Interest bearing liabilities	1,668	1,174	1,280
• Non-interest bearing liabilities	2,504	2,268	2,420

Cashflow

• From operations: 120 MNOK (122 MNOK in 1Q 2017)
• From investments: -502 MNOK (-490 MNOK in 1Q2017)

Solidity

• 53% equity
• NIBD/EBITDA = 0.8x (Rolling 12 months)
• Dividend of NOK 2.35 (NOK 2.10 last year) due 8 May 2018

CURRENCY

Revenues and expenses per currency; NOTE: Rounded figures

	NOTE: Rounded figures
--	------------------------------	--

	EUR*	USD	NOK	NZD	OTHER	TOTAL
Revenues	45 %	45 %	0 %	0 %	10 %	100 %
Expenses	40 %	30 %	5 %	5 %	20 %	100 %
EBITA	50 %	100 %	- 20 %	- 20 %	-10 %	100 %

* EUR includes DKK

CURRENCY EXPOSURE

Revenues and expenses per currency;

NOTE: Rounded figures

	$EUR*$	USD	NOK	NZD	OTHER	TOTAL
Revenues	45 %	45 %	0%	0%	10%	100 %
Expenses	40 %	30 %	5 %	5 %	20 %	100 %
EBITA	50%	100 %	$-20%$	$-20%$	$-10%$	100 %

* EUR includes DKK

10% change in NOK towards other currencies will impact;

	Revenues	Expenses	EBITA
EUR*	4.5%	4.0%	5.0%
USD	4.5%	3.0%	10.0%
NZD	0.0%	0.5%	-2.0%
OTHER	1.0%	2.0%	-1.0%
ALL	10.0%	9.5%	12.0%

* 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

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

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