TOMRA Systems — Investor Presentation 2023

Apr 28, 2023

1 st quarter 2023 results announcement

Click to enter name Place dd.mm.yy TOMRA Systems ASA 28 April 2023 © TOMRA

Financial highlights

e

Revenues	• Revenues were 3,239 MNOK, +29% (2,501 MNOK in the first quarter 2022) Adjusted for currency, revenues were: — Up 17% for TOMRA Group — Up 18% in Collection — Up 15% in Recycling — Up 15% in Food.
Gross margin	• Gross margin of 40% – in line with the margin in the first quarter 2022 — Collection margin improvement compared to the previous three quarters — Improved margins in Recycling and Food compared to the same period last year
Operating expenses	• Operating expenses of 1,027 MNOK (760 MNOK in the first quarter 2022) — Driven mainly by business expansion, but also cost inflation and optimization initiatives
EBITA	• EBITA of 277 MNOK, up 17% from 237 MNOK in the first quarter 2022
Cash flow	• Strong cash flow from operations of 509 MNOK (166 MNOK in the first quarter 2022) — Positive effect from conversion of receivables
Order intake	• Recycling Order intake of 961 MNOK (+49%) and Order backlog of 1,309 MNOK (+53%) • Food Order intake of 954 MNOK (+7%) and Order backlog of 1,243 MNOK(-6%)
Other	• Strategic investment in Kezzler AS – a technology that can accelerate the transition to circularity and resource optimization

Our strategy is to accelerate growth in core and develop adjacent opportunities while becoming a fully circular business and safe, fair and

inclusive

Our ambitions towards 2027

Revenue growth 15% CAGR

EBITA margin at 18%

Dividend payout 40-60% of EPS

Capital structure Investment grade

Net Zero holistic sustainability strategy

Creating sensor-based solutions for optimal resource productivity - transforming how we obtain, use, and reuse resources

Place dd.mm.yy

Collection Business update

Updates

• All-time high quarterly revenues
• Improved gross margins compared to last three quarters
• New sales continued in the Netherlands (expansion 1 April 2023) and in Romania (start date 30 November 2023)
• Tomra Cleanaway selected as network operator in Victoria, Australia. Over 400 RVMs to be installed.

Victoria – 1 November 2023

Victoria announced its DRS start date on 14 April 2023, and that TOMRA Cleanaway will be one of three network operators. (link) The Tasmanian bottle bill was passed in 2022, but a start date is yet to be announced. (link)

Quebec – 1 November 2023

On June 14th, 2022, the state of Quebec approved the final regulations for the expansion and modernization of the current deposit system (link).

Romania – 30 November 2023

In 2021, Romania passed the government decision to introduce a deposit system (link). On October 5th, 2022 , the implementation date has been set to November 30th , 2023 (link).

Hungary – January 2024

In 2021 Hungary modified its waste laws, one element of which was to ensure that plastic bottles can be returned (link). The waste concessioner has initiated the process of engaging reverse vending technology providers aiming for a start in January 2024.

Ireland – February 2024

On November 17th, 2021, Ireland approved DRS regulations (link). The scheme coordinator has been selected and the start date planned for February 2024 (link).

Scotland – March 2024

In May 2020, Scotland approved deposit regulations. The implementation date is postponed to March 2024 (link).

Austria – January 2025

In November 2021, Austria announced the introduction of deposit on single-use beverage containers, with start date January 1st, 2025 (link).

Singapore – 1 April 2025

In March 2023, the parliament passed legislation for a deposit return scheme for beverage containers. (link).

All-time high order backlog, up 30% (currency adj.) compared with Q1 2022

Updates

• Record strong order intake and backlog with growth across all sorting segments: Waste, Plastic, Metal and Ore sorting
• Second test facility opened in Germany to meet growing demand for metal sorting
• TOMRA ore sorting technology to be installed in the world's largest Lithium sorting plant at Pilbara Minerals

Revenue up 15% (currency adj.) compared to Q1 2022

Food Business update

Updates

• Good performance in processed food with positive outlook
• The outlook is somewhat weaker in fresh food
• Reduced order backlog in the quarter
• Very strong growth in the potato segment

Enabling automation in textiles recycling

Digital business models

Collection systems for reusable packaging

Positioned to develop adjacent opportunities

Closing the gap in plastic recycling

Group P&L Highlights ^{2 302}

	1st Quarter
million Amounts in NOK	2023	2022	Adj* 2022
Revenues	3 239 ,	2 501 ,	2 771 ,
Collection	1 828 ,	1 393 ,
Recycling	617	489
Food	794	618
contribution Gross	1 303 ,	996	1 115 ,
in %	40 %	40 %	40 %
Operating expenses	1 027 ,	760	813
EBITA	277	237	302
in %	9 %	9 %	11 %

Collection P&L Highlights ^{1 168}

	1st Quarter
million Amounts in NOK	2023	2022	Adj* 2022
Revenues	1 828 ,	1 393 ,	1 543 ,
Northern Europe	268	246
(ex Northern) Europe	872	573
North America	457	393
of the world Rest	231	182
contribution Gross	701	538	606
in %	% 38	% 39	% 39
Operating expenses	421	331	351
EBITA	280	207	255
in %	% 15	% 15	% 17

Recycling P&L Highlights

	1st Quarter
million Amounts in NOK	2023	2022	Adj* 2022
Revenues	617	489	538
Europe	327	309
Americas	156	94
Asia	106	47
of the world Rest	29	40
contribution Gross	309	236	258
in %	50 %	48 %	48 %
Operating expenses	217	146	159
EBITA	92	90	99
in %	15 %	18 %	18 %

Based upon current production and delivery plans, the revenues in 2Q23 are estimated to be approximately 60% of order backlog at the end of 1Q23

Food P&L Highlights ^{649 609 618}

	1st Quarter
million Amounts in NOK	2023	2022	Adj* 2022
Revenues	794	618	690
Europe	223	140
Americas	418	311
Asia	77	76
of the world Rest	76	90
contribution Gross	293	222	250
in %	37 %	36 %	36 %
Operating expenses	343	249	269
EBITA	-49	-28	-19
in %	-6 %	-4 %	-3 %

Based upon current production and delivery plans, the revenues in 2Q23 are estimated to be approximately 80% of order backlog at the end of 1Q23

[NOK millions] Balance sheet and cash flow

	March 31		December 31
million in NOK Amounts	2023	2022	2022
ASSETS	14	11	13
	777	821	932
	,	,	,
Intangible	4	3	4
non-current	400	742	132
assets	,	,	,
Tangible	2	2	2
non-current	838	269	671
assets	,	,	,
Financial non-current assets	606	388	448
Inventory	2	1	2
	718	921	370
	,	,	,
Receivables	3	2	3
	496	881	562
	,	,	,
Cash and cash equivalents	719	619	750
LIABILITIES	14	821	13
EQUITY	777	11	932
AND	,	,	,
Equity	7	6	6
	070	249	572
	,	,	,
liabilities Lease	1 444 ,	1 001 ,	1 297 ,
Interest-bearing liabilities	2 200 ,	1 179 ,	2 260 ,
Non-interest-bearing liabilities	4 063 ,	3 392 ,	3 803 ,

Cashflow from operations

• Cash flow from operations of 509 MNOK in the first quarter 2023 (166 MNOK in the first quarter 2022)

Solidity and gearing

• 48% equity ratio
• NIBD/EBITDA (rolling 12 months) of 1.2x

Financial position

Debt maturity profile

• Weighted average debt maturity of 2.8 years
• Interest-bearing bonds are swapped to EUR and is exposed to EUR/NOK exchange rate fluctuations

Current funding sources

• TOMRA has a satisfactory liquidity situation with available unused credit lines of approx. 1,424 MNOK
• Senior unsecured bonds (no financial covenants) of 1 600 MNOK (swapped to EUR) are listed on Oslo Stock Exchange
  • Green Bonds portion amount to 1 000 MNOK
• The financial covenant related to the bank debt is minimum equity ratio of 30 %

Currency risk and hedging policy

Revenues and expenses per currency:

	EUR	USD	NOK	OTHER1	TOTAL
Revenues	50 %	30 %	0 %	20 %	100 %
Expenses	50 %	25 %	5 %	20 %	100 %

Assets and liabilities per currency:

	EUR	USD	NOK	OTHER1	TOTAL
Assets	45 %	20 %	5 %	30 %	100 %
Liabilities	50 %	15 %	10 %	25 %	100 %

¹ Most important: AUD, NZD, RMB, CAD, SEK, GBP and JPY

NOTE: Estimated and rounded figures

10% change in NOK towards other currencies will impact:

	Revenues	Expenses	EBITA
EUR	5.0%	5.0%	5.0%
USD	3.0%	2.5%	6.0%
OTHER1	2.0%	2.0%	2.0%
ALL	10.0%	9.5%	13.0%

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

Outlook

e

Collection	• High activity related to preparation for new markets • Quarterly performance will be dependent upon timing of new initiatives
Recycling	• Positive momentum assumed to continue and normalize from high 2022 levels • Demand for recycled materials is expected to create opportunities
Food	• Good demand in processed food, but somewhat weaker in fresh food • Need for automation creates opportunities mid and long term
Other	• Cost inflation will continue to be a pressure point – pricing and cost measures are expected to have a mitigating effect • Lower risk of sourcing shortages and logistical bottlenecks
Currency	• Reporting in NOK and with some NOK cost base, TOMRA will in general benefit from a weak NOK, particularly against EUR and USD

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 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