TOMRA Systems — Investor Presentation 2023

Apr 28, 2023

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

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12.2 BILLION NOK REVENUES IN 2022

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

Our transformation journey

Creating value through three divisions

~800

Employees

~2,600 Employees

Customers

Grocery retailers, bottlers, deposit scheme coordinators

Customers

Waste management, material recovery plants, recyclers

~1,600 Employees

Customers

6 Food growers, packers, processors & cooperatives

TOMRA's global presence Installed base ῀105,000

Total	῀82,000	῀9,000	8 ῀13,800
Asia Pacific	῀5,000	῀1,300	῀1,900
Americas	῀14,000	῀1,400	῀6,300
EMEA	῀63,000	῀6,300	῀5,600
	Collection	Recycling	Food

TOMRA Collection

TOMRA Global leader in reverse vending

50 years of experience

82 000 machinesin operation

Represented in more than

6.2bn NOK revenues

An overview of current deposit markets

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

Upcoming deposit markets

13

Deposit system proposed

for 2025

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

mentioned as a mean to reach those targets.

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

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

Number of RVM markets

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

Redemption centers, small depots etc.

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

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

brands are still far away from reaching them.

EU member states need to meet PPWD¹ targets for plastic recycling

¹Packaging and Packaging Waste Directive

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

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"

2

1

million tons

million tons

2

million tons

1

million 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

Ore sorting 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, VISIBLE LIGHT SPECTROMETRY (VIS) Specific and unique spectral properties of reflected light in the visible spectrum

absorption and fluorescence of laser light

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

• 15% to 50% of the ROM can be rejected in an early stage of the process (application dependent)
• low grade waste rocks don't need to be transported, crushed, grinded, or further treated

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

Ore sorting is used to:

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

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

processing equipment

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

Provide leading solutions and innovations

Utilize cutting edge sensor technology

Exploit the power of deep learning

Deep market expertise and partnership

45 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

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

TOMRA Food

Population growth and rise of the middle class

Shift to automation and digital tools

Cyclical investments in different categories, regions and seasons

TOMRA Food with a strong value proposition

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

Market position and addressable market

Our Technology…

…are detecting a wide range of parameters

Removal of foreign material in a material stream, e.g. insects, glass, metal, wood & plastics

Biometric Characteristics

Sort based on chemical composition such as water, protein content, sugar content (Brix) and dry matter

Objects with spots or other (small) blemishes are removed

Shape & Size

Sort on length, width, diameter, area, brokenpiece recognition

Removal of produce contaminated with aflatoxin

Grading by color or

Color

removal of discolorations in mono- and mixed-color

Removal of soft, molded or rotten food

Removal of visible and invisible small and substantial defects

Broken, split and damaged objects are detected and removed Fluo

Based on the chlorophyll level present in produce defects are removed

material

Detection of density differences

Working principles in Food sorting

Chute or Channel sorter

Xray sorter Air inspection Infeed (unsorted) X-ray source X-ray detector Precise air guns Accept / reject Infeed belt (unsorted) Full width NIR and Color Vision sensors Intelligent finger ejectors Accept/reject 2

Belt inspection

Singulated grading

Food technology platforms

Solutions for fresh and processed produce

TOMRA A Product Line		TOMRA B Product Line		TOMRA C Product Line	TOMRA X Product Line	Peeling Lines
TOMRA 3A Series	TOMRA 5A Series	TOMRA 5B	TOMRA 3C	TOMRA 5C	TOMRA 5X	Peeling

Integrated sorting solutions for fresh produce

Leading position globally

Size of bubble = Estimated revenue from sensor-based sorting and related peripherals within the addressable market

Food Categories

Leading technology

Some of our customers

Group financials development

EBITA and margin

Gross contribution and margin

Earnings per share

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

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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

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

Suppliers Customers

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

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

Our ambitions 2022 – 2027

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Our ambition is to keep an investment grade status

Financial Risk Profile A

June 2022 Business Risk Profile BBB+

TOMRA Green Bond Framework

Use of proceeds		Highlights form Cicero Second Party Opinion
ICMA category: Pollution prevention and control
Expenditures related to:	Examples of eligible assets:	solutions and a low-carbon future"
Collection, sorting and processing of beverage containers	• Manufacturing, installation, maintenance, and operation of reverse vending machines (RVMs) • Sorting and processing facilities • R&D related to the development and design of RVMs • Collection systems for reusable packaging • Outreach to raise awareness and support for deposit return schemes	circular economy, and improved waste management" harmful biodiversity impacts"
Recovery and upgrading of valuable materials from waste streams for recycling	• Software development for waste sorting machines • Assembly lines for manufacturing of sorting machines • R&D to improve performance or enable sorting of new types of materials (e.g., textiles) • Investments in the sorting and processing of post consumer materials	"TOMRA has significantly strengthened its sustainability "The overall assessment of TOMRA's governance structure and processes gives it a rating of Good."
Minimizing the carbon Click to enter name footprint of operations Place	• Renewable energy equipment • Clean transportation

dd.mm.yy 70 • R&D to increase the use of sustainable materials

"TOMRA's RVMs and waste sorting machines are well-aligned with circular economy solutions and a low-carbon future"

By improving material recovery for recycling and reuse, TOMRA's RVMs and waste sorting machines are an important contribution to the climate transition, a more circular economy, and improved waste management"

"RVM solutions have the potential to limit climate emissions, local pollution, and harmful biodiversity impacts"

"TOMRA has significantly strengthened its sustainability strategies"

"The overall assessment of TOMRA's governance structure and processes gives it a rating of Good."

Dark Green is allocated to projects and solutions that correspond to the longterm vision of a low-carbon and climate resilient future.

Targets for Sustainable Growth

For a sustainable planet for generations to come

we have an obligation to grow

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