TOMRA Systems — Investor Presentation 2018

Jan 8, 2018

SEB NORDIC SEMINAR

President and CEO, Stefan Ranstrand 8th of January 2017 Copenhagen, Denmark

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 2016
• ~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

Recently approved Nearly approved In progress

North America: Possible expansion of deposit system in Quebec

Scotland: Commitment to a Container Deposit Scheme announced in party program

Spain: Regional initiatives ongoing

Australia:

NSW introduced deposit from December 2017.

QLD announced that they introduce deposit in 2018 and 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
• 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

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

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

[m]	Sensor/ Technology	Material Property	Segment
10-12 10-11 10-10 10-9	RM (Radiometric)	Natural Gamma Radiation	Mining
	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 10-1 101 102 103 104	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
	EM (Electro Magnetic sensor)	Conductivity, permeability	Recycling, Mining, Food

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.

TOMRA HAS THE BROADEST FOOTPRINT WITHIN THE FOOD SORTING UNIVERSE

BULK SORTING

SINGULATED SORTING

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 • Avocado • Kiwi	• 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

FOOD COMPETITIVE LANDSCAPE

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

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

	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 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

Q&A

GERMANY REPLACEMENT UPDATE

BACKLOG DEVELOPMENT AND MOMENTUM

TOMRA Sorting Solutions (TSS) without Compac:

• Delivered order intake of 724 MNOK in the quarter, compared to 613 MNOK same quarter last year, up 22% currency adjusted
• Revenues came in at 673 MNOK (up from 636 MNOK in 3Q16)
• All time high order backlog of 924 MNOK, up from 793 MNOK at the end of September 2016

Compac

• Reported revenues of 158 MNOK in the quarter and finished the quarter with a backlog of 302 MNOK
• Estimated backlog conversion ratio in 4Q17, including Compac: 75%-80%*

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	30 Sep 2017	30 Sep 2016	31 Dec 2016
ASSETS	8,214	7,206	7,115
• Intangible non-current assets	3,313	2,745	2,750
• Tangible non-current assets	849	755	801
• Financial non-current assets	307	322	342
• Inventory	1,204	1,235	1,127
• Receivables	2,067	1,815	1,696
• Cash and cash equivalents	474	334	399
LIABILITIES AND EQUITY	8,214	7,206	7,115
• Equity	4,326	3,925	4,192
• Minority interest	175	173	178
• Interest bearing liabilities	1,214	980	760
• Non-interest bearing liabilities	2,499	2,128	1,985

Ordinary cashflow from operations

• 375 MNOK (348 MNOK in 3Q 2016)

Solidity

• 53% equity
• NIBD/EBITDA = 0.6x (Rolling 12 months)

CURRENCY

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

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%

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

* EUR includes DKK

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

TOMRA SHAREHOLDER STRUCTURE

	th Top 10 shareholders as of 4	of October 2017		Shareholders by country
1	Investment AB Latour	39 000 000	26.3%
2	Folketrygdfondet	8 679 393	5.9%	8%
3	The Bank of New York BNYM, Stichting Dep	7 845 000	5.3% (NOM)	6% 6%
4	Skandinaviska Enskilda SEB AS, UCITS V	4 775 557	3.2% (NOM)	37% 7%
5	Goldman Sachs & Co	4 247 510	2.9% (NOM)
6	Clearstream Banking	2 969 622	2.0% (NOM)	10%
7	ODIN Norge	2 280 188	1.5%	26%
8	Danske invest Norske C/O Danske Capital A	2 190 530	1.6% (NOM)
9	Nordea Nordic Small	2 149 276	1.5%	Sweden Norway USA
10	SEB Sverigefond SMAB	2 042 250	1.4%	Great Britain Netherlands Luxembourg Others
	Sum Top 10	76 179 346	51.5%
	Other shareholders	71 840 732	48.5%
	TOTAL (5,781 shareholders)	148 020 078	100.0%

Source: VPS

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