TOMRA Systems — Investor Presentation 2019

May 7, 2019

1 st quarter 2019 results announcement

TOMRA Systems ASA @TOMRA 07.05.2019

Highlights from the quarter

Revenues	• Revenues of 2,081 MNOK (1,754 MNOK in first quarter 2018) – up 19% Adjusted for currency and acquisitions, revenues were: - Up 14% for TOMRA Group - Up 8% in TOMRA Collection Solutions - Up 20% in TOMRA Sorting Solutions
Gross margin	• Gross margin 42%, up from 41% in first quarter 2018 - Improved margins in TOMRA Sorting Solutions
Operating expenses	• Operating expenses of 667 MNOK (580 MNOK in first quarter 2018) - Higher activity - BBC acquired in March 2018 - Currencies
EBITA	• EBITA of 207 MNOK – up 46% from first quarter 2019 - Positive effect from IFRS 16 of 7 MNOK
Cash flow	• Cash flow from operations of 229 MNOK (120 MNOK in first quarter 2018) - Positive effect from IFRS 16 with 64 MNOK
TOMRA Collection Solutions	• Strong revenues growth in Australia • Preparations for new deposit markets ongoing
TOMRA Sorting Solutions	• Order intake of 1,104 MNOK, down from 1,188 MNOK same period last year. - Improved in Recycling, offset by weaker in Food • Order backlog of 1,464 MNOK, down from 1,515 MNOK at the end of first quarter 2018

Currency

Revenues and expenses per currency:

	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						NOTE: Rounded figures

Financial highlights | P&L statement

st
1 Quarter
Amounts in NOK million	2019	2018	18 Adj*
Revenues	2,081	1,754	1,815
Collection Solutions	1,042	934	962
Sorting Solutions	1,039	820	853
Gross contribution	874	722	749
in %	42%	41%	41%
Operating expenses	667	580	595
EBITA	207	142	154
in %	10%	8%	8%

Financial highlights | Balance sheet, cash flow and capital structure

			* Excluding IFRS 16
Amounts in NOK million	31 Mar 2019	31 Mar 2018 *	31 Dec 2018 *
ASSETS	10,695	8,808	9,595
Intangible non-current assets	3,765	3,673	3,821
Tangible non-current assets	2,281	996	1,276
Financial non-current assets	343	350	340
Inventory	1,563	1,276	1,447
Receivables	2,267	1,917	2,314
Cash and cash equivalents	476	596	397
LIABILITIES AND EQUITY	10,695	8,808	9,595
Equity	5,060	4,493	5,077
Minority interest	161	143	159
Interest bearing liabilities	2,588	1,668	1,524
Non-interest bearing liabilities	2,886	2,504	2,835

Ordinary cashflow from operations

• 229 MNOK (120 MNOK in first quarter 2018)
  • Positive effect from IFRS 16 of 64 MNOK

Solidity

• 47% equity
• NIBD/EBITDA = 0.7x (Rolling 12 months), ex IFRS 16 effects

Dividend: The AGM approved 6th of May a dividend of NOK 2.50 (ordinary) + NOK 2.00 (extraordinary), to be paid out around 20th of May 2019

IFRS 16	Limited impact		10% B/S increase		Improved cash from
	on P/L				operations

Financing structure

^*The AGM approved 6th of May a dividend of NOK 2.50 (ordinary) + NOK 2.00 (extraordinary), to be paid out around 20th of May 2019

TOMRA COLLECTION SOLUTIONS

Highlights Collection Solutions

P/L	• Revenues of 1,042 MNOK, up from 934 MNOK in first quarter 2018 - Revenues up 8% in local currencies, driven by higher activity in Australia • Gross margin was 40% in the period - Unchanged from first quarter 2018 • Operating expenses of 278 MNOK, up from 253 MNOK in first quarter 2018 - Ramp-up - Currencies • EBITA increased from 121 MNOK to 139 MNOK
Europe	• Currency adjusted, revenues were down 2% in Europe - Somewhat down in Central/Eastern Europe, partly offset by higher revenues in Northern Europe
North America	• Currency adjusted, revenues were unchanged in North America - Overall stable performance in both machine sales and throughput volumes
Australia	• Strong growth in New South Wales - Ramp-up concluded in 2018 - Good volumes in summer months • Deposit introduced fourth Quarter 2018 in Queensland - First quarter 2019 first fully operational quarter with 10 Collection Refund Points

Initiatives on new container deposit markets

Western Australia	Scotland	Portugal	England
• Beverage containers accounts for 35% of all litter in WA • Deposit value: 0.1 AUD (150mL – 3L) • Draft position statement for collection infrastructure published in January 2019 • Ongoing selection of scheme coordinator role	• September 2017, First Minister Nicola Sturgeon announced a deposit return scheme for drink containers • Consultation round ended 25th of September 2018 • Minister of Environment to present deposit system proposal	• December 2018, the Government published a law establishing a system for return and deposit of beverage containers • Decree with details around the scheme to be worked out during 2019 • Pilot projects implemented during 2019	• March 2018, UK Environment Secretary Michael Gove announced plans for a deposit return scheme • December 2018, UK Waste and Resource Strategy was published • Consultation opened 18th of February 2019
Estimated Startup: Early 2020	Estimated Startup: Late 2020	Estimated Startup: Early 2022	Estimated Startup: 2023

Collection Solutions financials

st 1 Quarter
Amounts in NOK million	2019	2018	18 Adj*
Revenues	1,042	934	962
Northern Europe	152	148
Europe (ex Northern)	391	409
North America	353	322
Rest of the world	146	55
Gross contribution	417	374	381
in %	40%	40%	40%
Operating expenses	278	253	260
EBITA	139	121	121
in %	13%	13%	13%

TOMRA SORTING SOLUTIONS

Highlights Sorting Solutions

P/L	• Revenues equaled 1,039 MNOK in first quarter 2019, up from 820 MNOK in first quarter 2018 - Adjusted for currency and acquisitions, revenues were up 20% - Includes BBC revenues of three months in 2019 (vs one month in 2018)
	• Gross margin 44% - Up from 42% in first quarter 2018 • Operating expenses up from 307 MNOK to 365 MNOK - Higher activity - BBC - Currency • EBITA of 92 MNOK (41 MNOK in first quarter 2018) - Margin 9%, up from 5% in first quarter 2018
Orders	• Order intake of 1,104 MNOK, down from 1,188 MNOK same period last year - Improved in Recycling, offset by weaker in Food • Order backlog of 1,464 MNOK, down from 1,515 MNOK at the end of first quarter 2018

Business stream update

FOOD

• Revenues in 1Q19 improved compared to 1Q18
• Order intake down in 1Q19, compared to a strong 1Q18
• Order backlog down end 1Q19 compared to end of 1Q18
  • Lower order intake in US and more orders taken to P/L during the quarter

RECYCLING & MINING

• Strong growth in revenues in 1Q19 compared to 1Q18

• Order intake up 1Q19, compared to a strong intake in 1Q18
• Order backlog significantly up from end of 1Q18

Sorting Solutions financials

st 1 Quarter
Amounts in NOK million	2019	2018	18 Adj*
Revenues	1,039	820	853
Europe	403	256
North America	326	282
South America	33	29
Asia	149	115
Oceania	88	86
Africa	40	52
Gross contribution	457	348	368
in %	44%	42%	43%
Operating expenses	365	307	315
EBITA	92	41	53
in %	9%	5%	6%

Development in order intake and order backlog

Revenues

Order intake Order backlog

• TOMRA Sorting Solutions (TSS):

  • Revenues of 1,039 MNOK, up from 820 MNOK last year
  • Order intake of 1,104 MNOK in the quarter, compared to 1,188 MNOK last year

• Order backlog of 1,464 MNOK by the end of first quarter, compared to 1,515 MNOK last year

• Estimated backlog conversion ratio in 2Q19: 80-85%*

OUTLOOK

Outlook

Collection Solutions	• Overall stable business • Increased operating expenses due to preparation for new markets
Sorting Solutions	• The positive momentum in Recycling is continuing • Temporary slower momentum in Food
Currency	• Reporting in NOK and with some NOK cost base, TOMRA will in general benefit from a weak NOK, particularly measured against EUR. • With significant revenues in USD and costs in EUR and NZD, TOMRA Sorting is exposed to USD/EUR and USD/NZD.

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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