TOMRA Systems — Investor Presentation 2022

Oct 21, 2022

Click to enter name Place dd.mm.yy TOMRA Systems ASA 21 October 2022 © TOMRA

At TOMRA, our vision is to Lead the Resource Revolution

It is our belief that businesses have the power and responsibility to help manage our planet's precious resources—today and tomorrow.

Our transformation journey

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Creating value through three divisions

Divisions and segments

	COLLECTION	RECYCLING	FOOD
	REVERSE VENDING	RECYCLING	PROCESSED FOOD
Share of '21 sales	~43%	~15%	~17%
Employees	1,856	575	826
Customers	Grocery retailers	Material recovery plants, scrap dealers, metal shredder operators	Food growers, packers and processors
Market share	~70%	~55-60%	~30%
	MATERIAL RECOVERY	MINING	FRESH FOOD
Share of '21 sales	~10%	~2%	~13%
Employees	580	84	655
Customers	Grocery retailers and beverage manufacturers	Mining companies	Food growers, packers and cooperatives
Market share	~60% in USA (markets served)	~40-50%	~25%
	TOMRA GROUP FUNCTIONS

Employees

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Installed base worldwide

REVERSE VENDING

TOTAL*)	~81,000
Rest of the world	~6,000
North America	~13,700
Other Europe	~15,100
Germany	~30,000
Nordic	~16,200

COLLECTION RECYCLING AND FOOD

RECYCLING			FOOD
EMEA	~5,885	EMEA	~6,050
Americas	~1,300	Americas	~4,850
Rest of world	~1,205	APAC	~2,050

TOTAL ~8,400

TOTAL ~13,000

TOMRA Collection

TOMRA Global leader in reverse vending

50 years of experience

81 000 machinesin operation

Represented in more than

5.7bn NOK revenues

44 billion containers a year in operation

An overview of current deposit markets

* In addition, some markets have refillable deposit systems such as: Austria, Belgium, Chile, Czech Republic, France, Hungary, Poland and South Korea

Upcoming deposit markets

Quebec: Deposit system to be modernized November 2023

Connecticut:

Expansion of existing deposit system in 2023 and 2024

Scotland: Container deposit scheme planned to start August 2023

Ireland: Deposit system to be implemented in 2023

The Netherlands: Deposit Return System to be extended January 2023

Collection target for plastic bottles:

• 77% by 2025
• 90% by 2029

Recycled content in product design:

• 25% by 2025 in PET bottles
• 30% by 2030 in all plastic bottles

EU Single-Use Plastic Directive: Targets on recycled content and collection target for plastic bottles. Deposit scheme mentioned as a mean to reach those targets.

Romania: Deposit system to be implemented November 2023

Austria: Deposit Return System to be implemented 2025

Victoria and Tasmania: Deposit Return System to

be implemented in 2023

We are driving the market momentum through global advocacy work aiming to achieve best practice deposit systems and generate demand through innovations

Collection targets for plastic beverage bottles

77% 2025 90% 2029

Targets for recycled content in plastic beverage bottles

25% 2025 30% 2030

Continued work with governments to implement best practice deposit legislation

Innovate solutions that trigger modernizations and increased demand

High collection rates achieved in two years' time

The four principles of high-performing deposit return systems

A collection target for a broad scope of beverage packaging plus a meaningful deposit delivers strong results.

The redemption system is easy, accessible and fair for everyone.

PERFORMANCE CONVENIENCE PRODUCER RESPONSIBILITY SYSTEM INTEGRITY

Producers manage, finance and invest in the system with use of unredeemed deposits and commodity revenues.

Trust is built into the system's processes through transparent management, a data-driven clearinghouse, and reliable redemption technology.

Reinvestment of unredeemed deposits and material revenue within the system

In Norway over 80% of the system's costs are covered by unredeemed deposits and material revenue

Profit and loss overview of Norway's Central System Administrator (2019)

Legislative outlook supports new and expanded Deposit Return Scheme (DRS) markets towards 2030

* In addition, some markets have refillable deposit systems such as: Austria, Belgium, Chile, Czech Republic, France, Hungary, Poland and South Korea

Europe and the Single Use Plastic Directive (SUPD) will be the main driver of new deposit markets towards 2030

* In addition, some markets have refillable deposit systems such as: Austria, Belgium, Czech Republic, France, Hungary and Poland

Strong local presence in existing and upcoming European deposit markets

Establishing local TOMRA entities and building local presence and partnerships early is key in our go to market strategy

* In addition, some markets have refillable deposit systems such as: Austria, Belgium, Czech Republic, France, Hungary and Poland

Existing DRS markets* EU countries

Preferred partner in reverse vending solutions

Source: TOMRA estimates and analysis

Customer centricity is at the core of our innovation strategy

Strategic aspiration: Innovate the most attractive solutions and the best customer experience

Business model expertise across deposit systems

Cash flow profiles of the two business models

Illustrative cash flow profiles per machine

Flexibility and scalability to enable new business models and new market entry

Advanced digital platform leveraged across stakeholder groups

Automated Depots Over the Counter Scheme App

RVM Kiosks Reverse Vending Centres Single RVMs

Current supply chain with country origin on purchased material

Global Supply Chain

Optimize global sourcing and production set-up

The goal

Support the market demands both on capacity and flexibility

Capable of annual delivery of up to 30.000 RVMs

Dual sourcing strategy in focus to reduce risk and exposure (increase European sourcing)

Our Big Hairy Audacious Goal

500 BILLION

empty beverage containers handled by TOMRA equipment and collected for clean loop recycling

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30

TOMRA Recycling

There is a legislative push and market pull towards a circular economy

Extended Producer Responsibility policy is a key element, complemented by quotas, taxes, bans, and mandatory recycled content targets.

https://www.rolandberger.com/en/Insights/Publications/Packaging-sustainability-2030.html

https://ellenmacarthurfoundation.org/global-commitment/overview

EU member states need to meet PPWD1 targets for plastic recycling

1 Packaging and Packaging Waste Directive

Target 2025=50% recycling Target 2030=55% recycling

Source: Utkast til høringsnotat med konsekvensutredning, Miljødirektoratet, February 27th 2020

Example:

Norway

Strong commitment from the industry to use recycled polymers

Selected global commitments (non-exhaustive)

"Our ambition is to use 1 million tons of plastic waste a year in our global chemical plants by 2025"

"Produce and market 2 million tons of recycled and renewable based polymers annually by 2030"

"Produce 2 million tons of sustainable (includes recycled and biobased) polyolefins by 2030"

"By 2030, Dow will enable 1 million tons of plastic to be collected, reused or recycled through its direct actions and partnerships"

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1

tons

tons

2

tons

1

tons

Sorting is essential for a circular economy

Waste sorting segment

Recover materials for recycling from both source separated and mixed household waste

Segment share of installed base

Recycling segment

Upgrade material to pure fractions for high quality recycling

Segment share of installed base

Mining segment

Recovery and ore sorting to reduce environmental impact

Segment share of installed base

How does sensor-based separation work?

High-speed processing of information (material, shape, size, color, defect, damage and location of objects)

A broad sensor-based technology portfolio

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

Automation with TOMRA units

Our solutions enable recovery of recyclables from different waste streams

A modern packaging sorting plant can contain up to 60 NIR sorters Our solutions can also recover valuables from residual waste streams

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

The essential nature of mining means that the industry needs to make a leap towards a more sustainable future

Our ore sorting solutions enable the mining industry to reduce their footprint

Ore sorting is used to:

• Reduce operational impact and footprint by splitting the "good" and the "bad" materials early in the process
• Extend the lifetime of a mine
• Reclaim valuables for stock piles

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Our technology and innovations continue to push the boundaries of the recycling sorting market

Our solutions close the loop by enabling high quality recycling

We are actively pushing the boundaries of plastics recycling by:

• Demonstrating advanced mechanical recycling
• Supporting chemical recyclers

Alloy sorting Textile sorting Plastics Wood sorting

We are investing into the development of solutions for new segments

We have two strategic priority areas

Accelerate growth Increase the recovery

Provide leading solutions and innovations

of recyclables

Enable high quality closed loop recycling

Utilize cutting edge sensor technology

Exploit the power of deep learning

Deep market expertise and partnership

46 Develop digital solutions & services

We are here to enable closed loop recycling solutions material stream by material stream

Our commitment towards plastic packaging by 2030

30%

of post-consumer plastic packaging is recycled in a closed-loop

TOMRA Food

Population growth and rise of the middle class

Continued loss and waste of food

Shift to automation and digital tools

Cyclical investments in different categories, regions and seasons

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TOMRA Food with a strong value proposition

Food Categories

Three ways of sorting within the Food segment

Free fall (Channel / Chute)
Application	Seeds, rice, grains
Sensor tech.	Camera (simple)

Belt
Application	Prepared /preserved veg. and fruit
Sensor tech.	Several (complex)

On belt inspection

Lane grading

TOMRA has established the broadest footprint within food sorting

We are addressing approximately 60% of the total food sorting and grading market

Market position and addressable market

Leading position globally

Leading technology

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Our food sorting customers

PROCESSED FOOD INDUSTRY FRESH PRODUCE INDUSTRY

Clear strategic direction and priorities

Maximize Growth

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Operational Excellence

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Maximize growth

Core

Anchor North America Accelerate Europe

Expansion Grow market share

Services and digital Increase recurring revenues Deliver advanced digital solutions

Operational excellence

Productivity

Continuous improvement Scale and synergies

Technology management

Technology leadership Modularization

Best-in-class solutions Digital

Supply chain optimization

Go-to-market Global sourcing and resilience

Customer focus Customer engagement Value proposition

Every Resource Counts

Post-harvest food loss reduction by 2030

Group financials development – solid track record

EBITA and margin

Gross contribution and margin

Earnings per share

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Accelerating growth in our core business

Strategic priorities Collection Recycling Food

Growth focus	New deposit markets Product driven innovation in existing markets	Grow with market Push market boundaries with technology	Market share and geographic expansion within key categories
Supply chain resilience
Innovation	Customer centric	Technology to unlock new segments	Portfolio optimization
Digital solutions
Engage policy makers
M&A

Our strategy is built on organic growth with the main engine being the core business

We have a solid market and capital position, and we will utilize this platform to develop adjacent business

Accelerate growth in core Develop adjacent business

Ideally positioned to develop adjacent opportunities

TOMRA's competitive edge, market position and technology can be applied in areas beyond our current operations

Strong macro trends and emerging business models within circular economy and resource efficiency

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What are we looking for

Business models with the potential to become a sizeable business, ripe for scaling over the next few years

Opportunities where TOMRA has a competitive advantage to succeed

Potential for strong capital returns and steady-state profitability in line with TOMRA's targets

Enabling automation in textiles recycling

Digital business models

Collection systems for reusable packaging

Examples of what we are exploring

Closing the gap in plastic recycling

The gap in plastics recycling

Majority of plastics are lost today Demand for recycled plastics

• In Europe alone, 24 million tons of plastics are lost to incineration and 14 million tons to landfill
• The volume of each waste plant and incinerator is too low for sophisticated sorting to ensure the quality and fractions required for recycling

GAP

• Already a strong demand for recycled plastics will increase significantly in the next few years (more than 10 million tons from major plastic producers)
• Mechanical and chemical recyclers need an individual polymer fraction at sizeable volumes to justify investments

Closing the circularity gap

Mixed plastics fraction needs to be made available by incinerators, landfills, and other sources

Connecting the value chain

Sorted polymer fractions (e.g., HDPE, PS, PP, etc.) to be supplied to recyclers with the right quality

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Our strategy is to accelerate growth in core business and develop adjacent opportunities

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Accelerate growth in core

Develop adjacent business

Our ambitions going forward

…in a world that needs change how fast can we at TOMRA go and what would it take?

We aim to accelerate growth to 15% and reach 18% EBITA margin by 2027

Our dividend policy

Operating cash flow growth of 15% CAGR

Our ambition is to keep an investment grade status

LEAD THE RESOURCE REVOLUTION

While

BECOME A FULLY CIRCULAR BUSINESS

And being

BE SAFE, FAIR, AND INCLUSIVE

Double the avoided emissions enabled by TOMRA products in use

Commitment to net zero emissions and setting science-based targets (to be externally verified by 2024)

90% sustainable materials and components in all new products >50% of our products are circular at the end of their life 100% renewable electricity >80% reduction in operational transport emissions

Strive for zero work-related injuries and illness by providing a safe place for people and the environment

Attract diverse talents from all the colorful facets of humanity, with a goal of 50% women and men joining annually

Grow female representation in senior management to >30%

Improve employee satisfaction and engagement with top quartile NPS Score

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

Our ambitions 2022 – 2027

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Place dd.mm.yy

Shareholder structure

10 shareholders as of 30 September 2022*) Top
1	Investment AB Latour	62 400 000	21,1 %
2	Folketrygdfondet	20 600 789	7,0 %
3	APG Asset Management	14 220 630	4,8 %
4	BlackRock	9 841 337	3,3 %
5	Swedbank Robur Fonder	7 762 005	2,6 %
6	Vanguard	6 795 188	2,3 %
7	Handelsbanken	6 719 213	2,3 %
8	Candriam	6 544 633	2,2 %
9	AllianceBernstein	6 080 808	2,1 %
10	Impax Asset Management	5 207 880	1,8 %
	Sum Top 10	146 613 699	49.5%
	Other shareholders	149 426 457	50.5%
	TOTAL (11.812 shareholders)	296 040 156	100.0%

TOMRA is uniquely positioned along global megatrends

We have set bold ambitions to double our business in the next five years

Accelerate growth in core Develop adjacent business

For a sustainable planet for generations to come

we have an obligation to grow

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.

www.tomra.com