TOMRA Systems — Investor Presentation 2024

Jul 19, 2024

2 nd quarter 2024 results announcement

TOMRA Systems ASA 19 July 2024 © TOMRA

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Quarterly highlights

Financial highlights

Revenues	• Total revenue of 333 MEUR (332 MEUR in 2Q 2023). Compared to 2Q 2023 revenues were: ‐ Flat for TOMRA Group ‐ Up 15% in Collection ‐ Down 15% in Recycling ‐ Down 16% in Food
Gross margin	• Gross margin at 44% (42% in 2Q 2023) ‐ Improvement in all three divisions
Operating expenses	• Operating expenses of 101 MEUR adjusted for special items (96 MEUR in 2Q 2023) ‐ Flat development compared to the last two quarters
EBITA, adj.	• EBITA, adjusted for special items of 44 MEUR (46 MEUR in 2Q 2023)
Special items	• One-off costs of 0.5 MEUR relating to Food restructuring
Cash flow	• Cash flow from operations of 34 MEUR (3 MEUR in 2Q 2023)
Order intake and backlog	• Recycling order intake of 65 MEUR (74 MEUR in 2Q 2023) and order backlog of 133 MEUR (121 MEUR in 2Q 2023) • Food order intake of 83 MEUR (85 MEUR in 2Q 2023)
	and order backlog of 119 MEUR (96 MEUR in 2Q 2023)

Collection Business update

• Strong sales in all regions.
• In new markets, high activity continued in Romania and picked up in Austria.
• European Distribution Hub launched in Poland, positioning TOMRA for future growth and reducing our CO2 footprint.
• Continued success with early rollout of new product portfolio including the RollPac backroom solution which has won both the iF and Red Dot design awards.

Continued revenue growth up 15% compared with 2Q 2023

Tasmania – 2H 2024

The Tasmanian bottle bill was passed in 2022 with implementation expected in second half 2024 (link).

Uruguay – December 2024

A deposit return scheme for beverage containers is in process of implementation, originally planned to commence by the end of 2024 (link).

Austria – 1 January 2025

Introduction of deposit on single-use beverage containers (link).

Poland – 1 January 2025

A DRS law was published by the Government of Poland on 12 September 2023 (link). The system will allow multiple system operators with the first one having been assigned in March 2024 (link).

Singapore – 1 April 2025

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

TOMRA RollPac

Redefining reverse vending with space-efficient solutions

Recycling Business update

• Revenues in line with expected lower backlog conversion ratio, driven by a higher share of large projects with longer lead times.
• Softer market sentiment continues in European plastics recycling.
• Opening of TriPlast (pictured below) Austria's most advanced sorting plant for lightweight packaging featuring a combination of TOMRA's AI-powered solutions combined with 38 AUTOSORT units.

Record-high order backlog up 9% compared with 2Q 2023

Price development (illustrative) of virgin PET and recycled PET (rPET)

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

Food Business update

• Revenue down compared to a strong 2Q 2023.
• Soft market sentiment in fresh food categories while the potato category continues to perform well.
• Cost reduction and restructuring program is progressing according to plan.
• The last units out of Hamilton, New Zealand have been produced with production now consolidated to main production site in Slovakia.

Solid order backlog up 23% compared with 2Q 2023

Financials and outlook

[EUR millions] Group P&L Highlights

	2nd Quarter		1st Half Year
Amounts in EUR million	2024	2023	2024	2023
Revenues	333	332	623	626
Collection	193	167	381	333
Recycling	57	68	104	123
Food	82	97	142	169
Gross contribution	145	141	262	259
in %	44%	42%	42%	41%
Operating expenses	101	96	203	189
EBITA, adj.	44	46	59	70
in %	13%	14%	9%	11%
Special items*	-1	0	-2
EBITA	43	46	57	70
in %	13%	14%	9%	11%

Revenues 210 266 305 332 333 2Q20 2Q21 2Q22 2Q23 2Q24 43% 2Q20 45% 2Q21 42% 2Q22 42% 2Q23 44% 2Q24 Gross margin [% of Revenues] [EUR millions] 26 46 44 46 43 2Q20 2Q21 2Q22 2Q23 2Q24 EBITA

Collection P&L Highlights

	2nd Quarter		Half 1st	Year
million Amounts in EUR	2024	2023	2024	2023
Revenues	193	167	381	333
Northern Europe	26	26	50	50
(ex Northern) Europe	93	76	190	156
North America	50	49	93	90
of the world Rest	23	16	48	37
contribution Gross	78	65	154	129
in %	40%	39%	40%	39%
Operating expenses	46	39	91	77
EBITA	32	26	62	51
in %	16%	16%	16%	15%

Recycling P&L Highlights ³²

	2nd Quarter		Half 1st	Year
in million Amounts EUR	2024	2023	2024	2023
Revenues	57	68	104	123
Europe	40	34	62	64
Americas	5	14	20	28
Asia	6	12	14	21
of the world Rest	6	7	9	10
contribution Gross	30	35	52	63
in %	53%	51%	50%	51%
Operating expenses	20	19	42	38
EBITA	10	15	11	24
in %	17%	22%	10%	20%

[EUR millions] Food P&L Highlights

	2nd Quarter		1st Half Year
Amounts in EUR million	2024	2023	2024	2023
Revenues	82	97	142	169
Europe	27	33	43	53
Americas	39	43	67	81
Asia	8	7	17	14
Rest of the world	8	14	15	21
Gross contribution	37	42	59	68
in %	45%	43%	42%	40%
Operating expenses	29	32	57	63
EBITA, adj.	8	10	3	5
in %	10%	10%	1.8%	3%
Special items*	-1		-2
EBITA	8	10	0	5
in %	10%	10%	0%	3%

*Food restructuring costs

Balance sheet and cash flow [EUR millions]

	30 Jun		December 31
million Amounts in EUR	2024	2023	2023
ASSETS	1 502 ,	1 334 ,	1 469 ,
Intangible non-current assets	409	386	407
Tangible non-current assets	310	252	286
Financial non-current assets	62	54	62
Inventory	254	243	237
Receivables	378	343	374
Cash and cash equivalents	89	55	104
LIABILITIES AND EQUITY	1 502 ,	1 334 ,	1 469 ,
Equity	588	599	614
liabilities Lease	142	125	139
Interest-bearing liabilities	370	253	299
Non-interest-bearing liabilities	402	358	417

Cash flow from operations, YTD

Cashflow from operations

• Cash flow from operations of 34 MEUR (3 MEUR in 2Q 2023)

Solidity and gearing

• 39% equity ratio
• NIBD/EBITDA (rolling 12 months) of 2.3x

Financial position

Currency risk and hedging policy

USD/EUR average 2Q24 vs 2Q23: +1.2%

Revenues and expenses per currency:

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

Assets and liabilities per currency:

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

¹ Most important: AUD, NZD

NOTE: Estimated and rounded figures

Currency sensitivity

A strengthening/ weakening of EUR towards other currencies of 10% would normally decrease/increase EBITA by ~5%.

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 as net financial items, 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

Collection . • High activity related to new and expanding markets. • Quarterly performance will be dependent upon timing of new initiatives. Recycling • Currently softer market sentiment leading to slower short-term growth. • Demand for recycled materials is expected to create attractive growth opportunities. • Based on the order backlog at the end of the first quarter, a 45% conversion ratio is estimated to be recognized as revenues in the third quarter. Food • Challenging macroeconomic environment is delaying customer investments. • Need for automation and increased quality and safety requirements create opportunities mid and long term. • Full savings effect of 30 MEUR cost reduction program expected by end of 2024. • Based on the order backlog at the end of the first quarter, a 65% conversion ratio is estimated to be recognized as revenues in the third quarter. Other • Capital expenditures from Horizon activities of 40-50 MEUR are expected in 2024, primarily related to the two Feedstock sorting plants. Currency • TOMRA's global operations exposes the financial results to currency fluctuations. TOMRA will generally benefit from a stronger USD due to the revenue exposure.

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), includes and may be based on forward-looking information and statements that are subject to unknown risks and uncertainties that could cause actual results to differ materially from any projections of future performance or result expressed or implied by such forward-looking statements. The content of this Document is based on current management 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", "anticipates", "intends", "goals", "strategy" or similar expressions, if not part of what could be clearly characterized as a demonstration case, although not all forward-looking statements contain such terms. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of our control. 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 guarantee or assurance that those expectations will be achieved, or that future results or events will be consistent with any such opinions, forecasts, or estimates. TOMRA Systems ASA does not guarantee the accuracy, reliability, or completeness of the Document, neither expressed or implied, and no reliance should be placed on it. Except as required by applicable securities laws, we undertake no obligation to update or revise these statements based on new information, future developments or otherwise. TOMRA Systems ASA (including its directors, officers and employees) assumes no liability related to 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 TOMRA Company.

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