3 rd quarter 2021 results announcement

TOMRA Systems ASA 22 October 2021 © TOMRA

HIGHLIGHTS FROM THE QUARTER

Key financial highlights

Revenues	• Revenues of 2,883 MNOK (2,578 MNOK in third quarter 2020) Adjusted for currency, revenues were: - Up 15% for TOMRA Group - Up 21% in TOMRA Collection - Up 21% in TOMRA Recycling Mining - Up 3% in TOMRA Food
Gross margin	• Gross margin 44% (down from 46% in third quarter 2020) - All divisions slightly down (compared to a strong third quarter 2020)
Operating expenses	• Operating expenses of 748 MNOK (676 MNOK in third quarter 2020) - Increased activity level and investments in future-oriented activities
EBITA	• EBITA of 529 MNOK – up from 501 MNOK in third quarter 2020
Cash flow	• Cash flow from operations of 596 MNOK – compared to 432 MNOK in third quarter 2020
Order intake	• Order intake 1,359 MNOK in TOMRA Recycling Mining and TOMRA Food - Up 35% compared to third quarter 2020 adjusted for currencies - Positive momentum in all divisions and segments - Order backlog of 2,022 MNOK, up 42% currency adjusted compared to end of third quarter 2020
Other	• COVID-19: Still some impact, mainly in TOMRA Food, primarily regarding meeting new customers and cross-border travel • Component shortage is overall under control, but represents a risk

Business update for TOMRA Collection

High activity level in the markets

Tesco has selected TOMRA as the supplier of RVMs in Slovakia

TOMRA secures contract with major grocery retailer in Scotland

TOMRA Collection business update

‒ Growth of 38% in Europe compared to third quarter 2020
‒ Continued good momentum in Germany
‒ Good growth in the Nordics, partly driven by the R1 machine
‒ Sales and installations ongoing in Slovakia
‒ Temporary lockdown in Australia had a negative effect on the revenues

1) https://www.minzp.sk/aktuality/milnik-priprave-zalohoveho-systemu-minister-budaj-predstavil-spravcu-ktory-zavedie-system-zalohovania-pet-flias.html 2) https://www.diena.lv/raksts/latvija/zinas/parakstits-ligums-par-atkritumu-depozita-sistemas-ieviesanu-latvija-14255277 3) https://nos.nl/artikel/2367153-kogel-door-de-kerk-per-31-december-2022-statiegeld-op-blikjes.html

The R1 machine launched in Denmark and Germany (https://r1.tomra.com/)

First installations in Latvia, preparations

on track for go-live in 2022

Update on new deposit markets (according to official government statements)

Slovakia – January 2022
‒ In September 2020, Slovakia announced implementation of a

Latvia – February 2022
‒ Latvia introduces a deposit system starting February 1st, 20222) TOMRA has been selected as reverse vending technology provider.

Scotland – July 2022 (potential delay to 2023)
‒ In May 2020, the Scottish Parliament approved DRS regulations with the commencement date on July 1st, 2022.

deposit system on beverage packaging as of January 1st, 20221)

The Netherlands – December 2022 (expansion)

‒ In February 2021, the decision of deposit introduction on cans was announced3) with start date on December 31st, 2022.

Romania – 2022/2023

‒ In October 2021, Romania passes the government decision4) for implementing a deposit system in late 2022. Current political instability presents a challenge to the implementation timeline.

Victoria – 2023
‒ In April 20215), the government of Victoria announced deposit introduction with a split responsibility model in 2023.

Connecticut – January 2023 and 2024 (expansion)

‒ In June 20216) , Connecticut expands deposit to most carbonated beverages (from 2023) and raises the deposit value from 5 cents to 10 cents (from 2024).
4) https://legeaz.net/monitorul-oficial-955-2021/hg-1074-2021-sistem-garantie-returnare-ambalaje-nereutilizabile 5) https://www.premier.vic.gov.au/victoria-set-deliver-cash-cans
6) https://www.cga.ct.gov/asp/cgabillstatus/cgabillstatus.asp?selBillType=Bill&bill_num=SB01037&which_year=2021

Business update for TOMRA Recycling Mining

Waste sorting and plastics recycling

Positive momentum in waste sorting and plastics recycling
TOMRA opened a new test center for flake sorting in Parma, Italy

Good order intake development and solid backlog High rPET and metal prices at the end of September

Illustration1) of price development of virgin PET and recycled PET (rPET)

PET = virgin-derived polyethylene terephthalate rPET= recycled polyethylene terephthalate (comparable to virgin PET)

Metal recycling and mining

Strong metal recycling market
Order intake above 2019 levels
High commodity prices

A circular economy for metals

Consumer expectation of sustainability
Technology plays an important role in upgrading non-ferrous metal to clean fractions
Good demand for maximizing recovery and quality of metals

Business update for TOMRA Food

Continued good momentum in both segments

Processed Food

Market confidence in the return of food service drives investment
Potatoes have contributed positively

Cherries: growth category in 2021

High quality expectations from consumers
High standards of equipment performance from customers

Fresh Food

Continued good momentum in fresh food
Growth in kiwi and small fresh fruits
TOMRA provides sorting and grading, as well as integrated solutions
Increased preference for fresh fruit reflects positively on the demand for fresh cherries

FINANCIALS AND OUTLOOK

Currency risk and hedging policy

Revenues and expenses per currency:

	EUR¹	USD	NOK	OTHER²	TOTAL
Revenues	45 %	35 %	0 %	20 %	100 %
Expenses	40 %	25 %	5 %	30 %	100 %

Assets and liabilities per currency:

	EUR¹	USD	NOK	OTHER²	TOTAL
Assets	45 %	15 %	10 %	30 %	100 %
Liabilities	55 %	15 %	10 %	20 %	100 %
¹ EUR includes DKK		² Most important: AUD, NZD, RMB, CAD, SEK, GBP and JPY		NOTE: Estimated and rounded figures

¹ EUR includes DKK NOTE: Estimated and rounded figures

10% change in NOK towards other currencies will impact:

	Revenues	Expenses	EBITA
EUR*	4.5%	4.0%	7.0%
USD	3.5% 2.5%		8.0%
OTHER2	2.0%	3.0%	-4.0%
ALL	10.0%	9.5%	11.0%

HEDGING POLICY

CASHFLOW AND P/L

• TOMRA can hedge up to one year of future predicted cash flows. Gains and losses on these hedges are recorded at the finance line, not influencing EBITA

B/S

• TOMRA only hedges B/S items where exchange rate fluctuations could have P/L impact. Gains and losses on B/S hedging are recorded in accordance with IAS 21 and will normally not have P/L impact

Financial highlights | P&L statement

	rd 3 Quarter			Year-to-date 9 months
Amounts in NOK million	2021	2020	2020 Adj*	2021	2020	2020 Adj*
Revenues	2,883	2,578	2,506	7,859	7,199	6,829
Collection	1,514	1,287	1,248	4,257	3,510	3,341
Recycling Mining	493	417	408	1,250	1,256	1,212
Food	876	874	849	2,352	2,433	2,277
Gross contribution	1,276	1,177	1,143	3,460	3,145	2,970
in %	44%	46%	46%	44%	44%	44%
Operating expenses	748	676	671	2,226	2,128	2,069
EBITA	529	501	472	1,234	1,017	901
in %	18%	19%	19%	16%	14%	13%

TOMRA Collection financials

	rd 3 Quarter			Year-to-date 9 months
Amounts in NOK million	2021	2020	2020 Adj*	2021	2020	2020 Adj*
Revenues	1,514	1,287	1,249	4,257	3,510	3,341
Northern Europe	196	176		614	555
Europe (ex Northern)	712	481		1,934	1,315
North America	489	485		1,259	1,183
Rest of the world	117	145		450	457
Gross contribution	644	574	556	1,820	1,444	1,376
in %	43%	45%	45%	43%	41%	41%
Operating expenses	307	258	259	949	859	838
EBITA	337	316	297	871	585	538
in %	22%	25%	24%	20%	17%	16%

TOMRA Recycling Mining financials

	rd 3 Quarter			Year-to-date 9 months
Amounts in NOK million	2021	2020	2020 Adj*	2021	2020	2020 Adj*
Revenues	493	417	409	1,250	1,256	1,212
Europe	301	285		765	794
America	92	34		197	135
Asia	58	72		187	210
Rest of the world	42	26		101	117
Gross contribution	265	231	228	658	673	657
in %	54%	55%	56%	53%	54%	54%
Operating expenses	146	133	131	422	399	388
EBITA	119	98	97	236	274	269
in %	24%	24%	24%	19%	22%	22%

Based upon current production and delivery plans, the revenues in 4Q21 are estimated to be approximately 70% of order backlog at the end of 3Q21

TOMRA Food financials

	rd 3 Quarter			Year-to-date 9 months
Amounts in NOK million	2021	2020	2020 Adj*	2021	2020	2020 Adj*
Revenues	876	874	849	2,352	2,433	2,277
Europe	295	219		737	681
America	306	407		1,031	1,116
Asia	80	88		191	229
Rest of the world	195	160		393	407
Gross contribution	367	372	359	982	1,028	937
in %	42%	43%	42%	42%	42%	41%
Operating expenses	263	260	256	767	796	769
EBITA	104	112	103	215	232	167
in %	12%	13%	12%	9%	10%	7%

Based upon current production and delivery plans, the revenues in 4Q21 are estimated to be approximately 75% of order backlog at the end of 3Q21

Financial highlights | Balance sheet and cash flow

	30 September	31 Dec
Amounts in NOK million	2021	2020	2020
ASSETS	11,414	12,264	10,977
Intangible non-current assets	3,798	4,121	3,846
Tangible non-current assets	2,160	2,398	2,371
Financial non-current assets	390	420	353
Inventory	1,795	1,819	1,492
Receivables	2,794	2,868	2,383
Cash and cash equivalents	477	638	532
LIABILITIES AND EQUITY	11,414	12,264	10,977
Equity	5,876	6,176	5,591
Lease liabilities	994	1,105	1,104
Interest-bearing liabilities	1,154	1,910	1,414
Non-interest-bearing liabilities	3,390	3,073	2,868

Cashflow from operations

• Cash flow from operations of 596 MNOK in the third quarter 2021 (432 MNOK in third quarter 2020)

Solidity and gearing

51% equity ratio
NIBD/EBITDA (Rolling 12 months)
- o 0.3x without IFRS 16 / 0.7x including IFRS 16

TOMRA has a solid financial position

Weighted average debt maturity of 2.3 years
All interest-bearing is swapped to EUR and is exposed to EUR/NOK exchange rate fluctuations.

Drawn Undrawn

Not including unused 148MNOK cash-pool overdraft facility*

Debt maturity profile Current funding sources

TOMRA has a satisfactory liquidity situation with available unused credit lines of approx. 1 376 MNOK
Senior unsecured bonds (no financial covenants) of 1 000 MNOK (swapped to EUR) are listed on Oslo Stock Exchange
The financial covenant related to the bank debt is minimum equity ratio of 30 %

EU Taxonomy – preliminary1) assessment

1) The assessment of Taxonomy-aligned activities is a preliminary indication, and it might change

2) Based on the draft criteria presented for public consultation by the Platform on sustainable finance (https://ec.europa.eu/info/publications/210803-sustainable-finance-platform-technical-screening-criteria-taxonomy-report_en), which is not an official Commission document

(a) climate change mitigation

Outlook

• High activity related to preparation for new markets • Quarterly performance will be dependent upon timing of new initiatives
• Positive momentum assumed to continue, still some short term COVID-19 related challenges • High commodity prices is assumed to drive growth
• Good momentum, still some short-term challenges from COVID-19 • Mid and long-term opportunities in both the fresh and processed food segments
• Component shortage and supply chain disruptions will continue to be a risk area
• 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, TOMRA Food is exposed to USD/EUR

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 trademark 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