Slide 1: 3rd quarter 2023 results announcement
3rd quarter 2023 results announcement Click to enter TOMRA Systems name ASA Place 20 October 2023 dd.mm.yy © TOMRA
Slide 2: Quarterly highlights
Quarterly highlights
Slide 3: Financial highlights
Revenues • Total revenue of 3,515 MNOK (3,156 MNOK in 3Q 2022). Adjusted for currency, revenues were: — Up 3% for TOMRA Group — Up 11% in Collection Financial — Up 14% in Recycling — Down 18% in Food highlights Gross margin • Gross margin improvement to 43% – highest since 2021 — Improvement in all
Slide 4: Cyberattack update
Cyberattack update TOMRA discovered a cyberattack against the company on 16 July affecting the TOMRA domain and internal IT systems. TOMRA is progressing well toward normal operations. • Swift actions limited its impact • No evidence of sensitive data loss, no ransom demands • Most customer machines
Slide 5: Our strategy is to accelerate growth in core and develop adjacent opportunities
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 Net Zero Revenue growth EBITA margin Dividend payout Capital structure holistic sustainability 15% CAGR at 18% 40-60% of EP
Slide 6: Collection, Recycling, Food
>105,000 installations Creating sensor-based solutions for optimal resource productivity - transforming how we obtain, use, and reuse resources e Collection Recycling Food 100+ countries Publicly listed on Oslo Stock Exchange (OSE: TOM) 6
Slide 7: Collection Business update
Victoria – 1 November 2023 Victoria is going live with its container deposit scheme. TOMRA Cleanaway is the Collection network operator for zones 1 and 4 (link). The Tasmanian bottle bill was passed in 2022 with implementation expected in second half 2024 (link). Quebec – 1 November 2023 Business up
Slide 8: Recycling Business update
Continued revenue growth Recycling up 14% (currency adj.) compared with 3Q 2022 Business update NOK millions 654 822 • High activity level in most regions and market segments 493 421 417 • Growth normalizing from high levels over the last couple of years • Stable metal and polymer prices, but some d
Slide 9: Food Business update
Decline in revenues down 18% (currency adj.) compared with 3Q 2022 Food NOK millions 719 874 876 916 797 Business update 3Q19 3Q20 3Q21 3Q22 3Q23 • Good performance within processed food • Continued weak market sentiment in fresh food • Improvement agenda to focus on increase profitability and custo
Slide 10: Fundamental drivers in Food remain sound
Fundamental drivers in Food remain sound with market expected to grow 6-7% annually Food market has strong mid TOMRA has a leading position globally within to long term growth drivers grading and sorting fresh and processed food Population growth and rise of the middle class >3k Need for reduced los
Slide 11: TOMRA Food: mergers and acquisitions with unrealized synergy potential
TOMRA Food 2023 Mergers and acquisitions with unrealized synergy potential 2016 2012 2018 2011
Slide 12: Food cost-reduction program
Simplify our organization and processes to increase efficiency Food cost- reduction Profitability Reduce costs with 30 MEUR (~ 350 MNOK) to restore program: profitability to 10-11% EBITA margin Take advantage of unrealized synergies Double down on drivers of to increase customer satisfaction and be
Slide 13: Financials and outlook
Financials and outlook
Slide 14: Group P&L Highlights
Revenues [NOK millions] 3 515 Group P&L Highlights 2 378 2 578 2 883 3 156 3rd Quarter Year-to-Date 9 Months Amounts in NOK million 2023 2022 2022 Adj* 2023 2022 2022 Adj* 3Q19 3Q20 3Q21 3Q22 3Q23 Revenues 3,515 3,156 3,407 10,633 8,711 9,593 Gross margin Collection 1,896 1,586 1,707 5,676 4,499 4,9
Slide 15: Collection P&L Highlights
Revenues [NOK millions] 1 896 Collection P&L Highlights 1 238 1 287 1 514 1 586 3rd Quarter Year-to-Date 9 Months Amounts in NOK million 2023 2022 2022 Adj* 2023 2022 2022 Adj* 3Q19 3Q20 3Q21 3Q22 3Q23 Revenues 1,896 1,586 1,707 5,676 4,499 4,951 Gross margin Northern Europe 262 214 830 699 [% of Re
Slide 16: Recycling P&L Highlights
Revenues [NOK millions] 822 654 Recycling P&L Highlights 493 421 417 3Q19 3Q20 3Q21 3Q22 3Q23 3rd Quarter Year-to-Date 9 Months Gross margin Amounts in NOK million 2023 2022 2022 Adj* 2023 2022 2022 Adj* [NOK millions] 54% 55% 54% 54% Revenues 822 654 724 2,228 1,695 1,886 52% Europe 384 376 1,114 1
Slide 17: Food P&L Highlights
Revenues [NOK millions] Food P&L Highlights 719 874 876 916 797 3Q19 3Q20 3Q21 3Q22 3Q23 3rd Quarter Year-to-Date 9 Months Gross margin Amounts in NOK million 2023 2022 2022 Adj* 2023 2022 2022 Adj* [NOK millions] Revenues 797 916 976 2,730 2,517 2,756 42% 43% 42% 40% 39% Europe 229 287 840 717 3Q19
Slide 18: Balance sheet and cash flow
Cash flow from operations, YTD [NOK millions] Balance sheet and cash flow 2,000 1,500 30 Sept 31 December 1,000 Amounts in NOK million 2023 2022 2022 500 ASSETS 15,954 13,744 13,932 0 Intangible non-current assets 4,425 4,045 4,132 1/1 1Q 2Q 3Q 4Q Tangible non-current assets 2,788 2,583 2,671 Range
Slide 19: Financial position
Financial position Debt maturity profile Current funding sources • Weighted average debt maturity of 2.3 years • TOMRA has unused credit lines of approx. 269 MNOK • Interest-bearing bonds are swapped to EUR and is exposed to EUR/NOK exchange • Senior unsecured bonds (no financial covenants) of 1 600
Slide 20: Currency risk and hedging policy
Currency risk and hedging policy Measured against NOK 120 10% change in NOK towards other currencies will impact: 115 Revenues Expenses EBITA EUR 110 USD EUR 5.0% 5.0% 5.0% 105 100 USD 3.0% 2.5% 6.0% 95 OTHER1 2.0% 2.0% 2.0% 90 3Q22 4Q22 1Q23 ALL 10.0% 9.5% 13.0% 2Q23 3Q23 85 jun. 22 sep. 22Average
Slide 21: Outlook
• High activity related to preparation for new markets Collection • Quarterly performance will be dependent upon timing of new initiatives Outlook • The market activity is normalizing after extraordinary high growth in 2022 and 2023 Recycling • Demand for recycled materials continues to drive demand
Slide 22: Copyright and Disclaimer
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 Docum
Slide 23: www.tomra.com
www.tomra.com 23