Slide 1: Investor Presentation
Investor Presentation TOMRA Systems ASA 19 July 2024 © TOMRA
Slide 2: Collection Recycling Food
5400 1.29 BILLION EUR EMPLOYEES REVENUES IN 2023 GLOBALLY Creating sensor-based solutions for optimal resource productivity - transforming how we obtain, use, and reuse resources Collection Recycling Food Publicly listed on Oslo Stock Exchange (OSEBX: TOM)
Slide 3: Collection
Collection reverse vending machines for bottle and can recycling
Slide 4: Recycling
Recycling sorting systems for optimal resource recovery
Slide 5: Food
Food making every piece of food count
Slide 6: Leading market position, best-in-class technology
Leading market TOMRA is uniquely 50 years of position positioned along know-how powerful global megatrends Best-in-class Purpose-driven technology employees
Slide 7: Our vision is to Lead the Resource Revolution
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.
Slide 8: TOMRA's global presence
TOMRA’s global presence Installed base ~110,200 Collection ~85,000 Recycling ~10,200 Food ~15,000 8
Slide 9: We operate in markets where we take a leading global position
1,300 MEUR We operate in markets where we take a leading FOOD global position and make a meaningful impact. RECYCLING e Through continuous 300 MEUR innovation and thought COLLECTION leadership, our solutions shape new market – enabling us to grow 2003 2005 2007 2009 2011 2013 2015 2017 2019 2021 202
Slide 10: TOMRA's transformation journey
TOMRA’s transformation journey mergers and acquisitions 2004 TITECH 2006 Commodas 2011 2012 BEST 2016 Compac TOMRA acquires TITECH, Sale of Californian material TOMRA acquires BEST, leading TOMRA expands into lane the world's leading provider TOMRA acquires Commodas handling business. With the food
Slide 11: Each year, at least 8 million tons of plastics leak into the ocean
Each year, at least 8 million tons of plastics leak into the ocean. That’s the equivalent of one garbage truck every minute. The New Plastics Economy World Economic Forum (2016) Location: Vacha Dam, Bulgaria
Slide 12: But the tides are shifting
But the tides are shifting. There’s a desire for change… Consumer demand Legislative push for Market pull from large for responsible plastic new plastic waste brand owners and use options strategies companies 12
Slide 13: Post-consumer plastic packaging is treated linear instead of circular
Today: post-consumer plastic packaging Our ambition is treated linear instead of circular by 2030: Source: Ellen MacArthur Foundation 14% Collected for recycling 40% Recycling of plastics into the same or 98% similar-quality application 2% 8% 4% Virgin material Closed-loop Cascaded Process Dispose r
Slide 14: Our experience and technologically advanced solutions
Our experience and technologically advanced solutions help create circular value chains that benefit business and society. 14
Slide 15: TOMRA Collection
TOMRA Collection 15
Slide 16: TOMRA Collection
~700 TOMRA Collection million EUR in revenue Transforming society’s habits to keep valuable resources in a continuous loop of 81,000 use and reuse. ~85,000 machines in operation Collecting 46 billion containers a year *Figures are from 2023 Source: TOMRA.com
Slide 17: Over 46 billion drink containers collected in 2023
Over 46 billion drink containers collected in 2023
Slide 18: Deposit return systems enable Clean Loop Recycling
Deposit return systems enable Clean Loop Recycling Europe USA Average PET plastic Average beverage beverage container container return return rates. rates. 47% 94% 27% 72% 88% Containers without Containers with Containers without Containers with Containers in high- a deposit a deposit a deposit1 a d
Slide 19: Recently launched and upcoming deposit markets
Recently launched and upcoming deposit markets Quebec: Deposit system Poland: Hungary: expanded 2023 Deposit system to be Deposit system implemented in 2025 implemented 2024 Connecticut: Ireland: Existing deposit system Deposit system Romania: modernized in 2024 launched in 2024 Deposit system imple
Slide 20: High collection rates achieved in two years' time
High collection rates achieved in two years’ time Return rate Deposit value in EUR Return rates in Lithuania 98% 92% 92% 92% 92% Prior to container 34% deposit scheme 66% 43% ~40% End of 74% year 1 No deposit 0.25 0.21- End of 0.31 0.1-0.4 0.09 0.1 No deposit year 2 0.05 92% Germany Norway Finland M
Slide 21: A meaningful deposit value is the strongest driver of results
Return rates compared to purchasing power parity-adjusted deposit values - € (2018) 100% Germany Finland Germany Lithuania Netherlands Michigan Lithuania Iceland A meaningful 90% Finland Sweden Iceland Estonia Iceland Croatia Estonia Denmark Lithuania Denmark deposit value is 80% South Australia Isr
Slide 22: Driving market momentum through global advocacy work
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 Targets for recycled content plastic beverage bottles in plastic beverage bottles EUROPE 77% 90% 25% 30% 2025 2029 2025 2030
Slide 23: The four principles of high-performing deposit return systems
The four principles of high-performing deposit return systems PERFORMANCE CONVENIENCE PRODUCER RESPONSIBILITY SYSTEM INTEGRITY A collection target for a The redemption system is Producers manage, finance Trust is built into the broad scope of beverage easy, accessible and fair and invest in the syst
Slide 24: Reinvestment of unredeemed deposits and material revenue within the system
Profit and loss overview of Norway’s Reinvestment of unredeemed Central System Administrator (2019) deposits and material revenue within the system In Norway over 80% of the system’s costs are covered by unredeemed deposits and material revenue 24
Slide 25: Legislative outlook supports new and expanded DRS markets
Legislative outlook supports new and Canada provinces expanded Deposit Return Scheme (DRS) markets US states Expansion and Singapore as modernization towards 2030 Single Use launchpad in South-East Asia Plastic Directive Australia - States Potentially first one-way DRS in First full DRS Latin Americ
Slide 26: Preferred partner in reverse vending solutions
Preferred partner in reverse vending solutions >80 000 10 000- 80 000 # of installed RVMs TRUSTED PARTNER SERVICE NETWORK 5 000- 10 000 500- 5 000 INNOVATION SOLUTIONS CHAMPION PORTFOLIO <500 1-10 11-20 21-30 31-40 >40 26 Number of RVM markets 26 Source: TOMRA estimates and analysis
Slide 27: Our reverse vending portfolio
PRICE Our reverse vending portfolio Redemption Center Hypermarket Discounter & Supermarket Convenience & Small Store 0.1-0.3 M UBC/year 0.3-1 M UBC/year 1-3 M UBC/year 3-5 M UBC/year 5-15 M UBC/year 15-50 M UBC/year CONTAINER VOLUME 27 Click here for more info
Slide 28: Business model expertise across deposit systems
Business model expertise across deposit systems Financing Retail Sales & Service model Throughput model Upfront equipment High recurring revenue Revenue Recurring service Location revenues Swift roll-out Proven track record Aligned interests Retailer purchases and takes the TOMRA owns and operates t
Slide 29: Cash flow profiles of the two business models
Cash flow profiles of the two business models Illustrative cash flow profiles per machine Cash flow Higher initial sales Higher recurring revenue Year 0 Time Sales & Service Throughput Upfront CAPEX
Slide 30: Advanced digital platform leveraged across stakeholder groups
Advanced digital platform leveraged across stakeholder groups TOMRA Productivity Gain Consumer Engagement API/Data System Integration DIGITAL PLATFORM Retail Productivity Gain
Slide 31: Global Supply Chain
Current supply chain with country origin on purchased material China Norway Taiwan Sweden Global Supply Poland Chain Germany Optimize global sourcing and production set-up The goal Support the market demands both on capacity and flexibility Dual sourcing strategy in focus to reduce risk and exposure
Slide 32: Our Big Hairy Audacious Goal
Our Big Hairy Audacious Goal 500 BILLION empty beverage containers handled by TOMRA equipment and collected for clean loop recycling 32
Slide 33: TOMRA Recycling
TOMRA Recycling 33
Slide 34: TOMRA Recycling
TOMRA Recycling Transforming resource recovery through advanced waste and metals sorting that turns waste into value. The world generates At least 33% 2.01 billion TOMRA’s smart sorting machines of waste is not managed in an environmentally tons of municipal solid maximize resource safe manner waste
Slide 35: Legislative push and market pull towards a circular economy
There is a legislative push and market pull towards a circular economy Ellen MacArthur Foundation Global Commitment Extended Producer Responsibility policy is a key element, complemented Several strong commitments have been made; however, by quotas, taxes, bans, and mandatory recycled content target
Slide 36: Packaging waste including EPS
Example: Norway Target 2025=50% recycling Target 2030=55% recycling Packaging waste including EPS [Ton] EU member states need to meet PPWD1 targets for plastic recycling Total waste generated Material recycled EU target Material recycled, new measurement point 1 Packaging and Packaging Waste Directi
Slide 37: Strong commitment from the industry to use recycled polymers
Strong commitment from the industry to use recycled polymers Selected global commitments (non-exhaustive) “Our ambition is to use 1 million tons of plastic 1 waste a year in our global chemical plants by 2025” million tons “Produce and market 2 million tons of recycled 2 and renewable based polymers
Slide 38: Sorting is essential for a circular economy
Sorting is essential for a circular economy Waste sorting segment Recycling segment Ore sorting segment Recover materials for recycling from both Upgrade material to pure fractions Recovery and ore sorting source separated and mixed household for high quality recycling to reduce environmental waste
Slide 39: How does sensor-based separation work?
How does sensor-based separation work? Feeding of High-tech sensors to identify objects unsorted material Precise ejection by ultra fast air jets Product specific equipment design often including multiple technologies to maximize sorting efficiency High-speed processing of information (material, sha
Slide 40: A broad sensor-based technology portfolio
A broad sensor-based technology portfolio RECYCLING FOOD ELECTROMAGNETIC SENSOR (EM) Electro-magnetic properties like conductivity and permeability X X LED SPECTOMETRY (LED) Color and spectral properties based on multiple LED light X X EM sources in very high optical resolution LED NEAR-INFRARED SPE
Slide 41: Automation with TOMRA units
Automation with TOMRA units 41
Slide 42: Solutions enable recovery of recyclables from different waste streams
Our solutions enable recovery of recyclables from different waste streams AVL Leipzig, Germany Mixed Waste Sorting Plant IVAR, Norway A modern packaging sorting plant can contain up to 60 NIR sorters Our solutions can also recover valuables from residual waste streams 42 42
Slide 43: Mining needs to make a leap towards a more sustainable future
The essential nature of mining means that the industry needs to make a leap towards a more sustainable future Run of Mine (ROM) Crushing Sensor Based Sorting Waste Product • 15% to 50% of the ROM can be rejected in an early stage of the process (application dependent) • low grade waste rocks don’t n
Slide 44: Ore sorting solutions reduce the mining industry's footprint
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 44
Slide 45: Our technology continues to push the boundaries of recycling sorting
Our technology and innovations continue to push the boundaries of the recycling sorting market New segments for automated sorting Increase of automation and performance Capacity growth Recycling sensor-based 7% sorting equipment market Out of scope for TOMRA addressable market: other non-sensor-base
Slide 46: Our solutions close the loop by enabling high quality recycling
Our solutions close the loop by enabling high quality recycling Plastics Wood sorting Textile sorting Alloy sorting We are actively pushing the We are investing into the development of solutions for new segments boundaries of plastics recycling by: • Demonstrating advanced mechanical recycling • Sup
Slide 47: We have two strategic priority areas
We have two strategic priority areas Accelerate growth Provide leading solutions and innovations Increase the recovery Enable high quality closed Utilize cutting edge Deep market expertise of recyclables loop recycling sensor technology and partnership Exploit the power Develop digital of deep learn
Slide 48: Enabling closed loop recycling solutions
Our commitment towards plastic packaging by 2030 We are here to 30% of post-consumer plastic packaging is recycled in a closed-loop enable closed loop recycling solutions - material stream by material stream 48 48
Slide 49: TOMRA Food
TOMRA Food 49
Slide 50: TOMRA Food
TOMRA Food Transforming global food production to maximize food safety and minimize food loss by making sure Every Resource Counts . By 2050, a global We have ambitions to population of 9.8 billion Currently, 33% of all food produced is will need 70% enable a post-harvest food loss reduction of eith
Slide 51: Robust drivers supporting the market
Robust drivers supporting the market Population growth and rise of the middle class Continued loss and waste of food Shift to automation and digital tools North America, Europe Latin America Asia and Oceania and South Africa Cyclical investments in different categories, regions and seasons 51 Automa
Slide 52: TOMRA Food with a strong value proposition
TOMRA Food with a strong value proposition Why Automate Why TOMRA Know-how Technology Partnerships Food safety Quality Yield increase Expertise to Best-in-class With local improvement transform the sorting and understanding, global food industry grading solutions, know-how and long- and digital insi
Slide 53: We are addressing approximately 60% of the sorting and grading market
Market position and addressable market Global food processing and machinery industry We are addressing Sorting and grading market approximately 60% Out of scope for TOMRA: of the total food • Low-cost and low-tech color sorting • Limited automation markets sorting and grading Addressable market mark
Slide 54: Our Technology
Our Camera Laser Technology… Digital Pulsed LED Spectroscopy X-ray 54
Slide 55: Detecting a wide range of parameters
Foreign Blemishes Toxins Structure Material …are detecting Removal of foreign material in a material Objects with spots or other (small) blemishes Removal of produce contaminated with Removal of soft, molded or rotten food a wide range stream, e.g. insects, glass, metal, wood & are removed aflatoxin
Slide 56: Working principles in Food sorting
Air inspection Belt inspection 1 Working 3 2 2 3 4 1 principles in 5 Food sorting 4 1 Infeed Belt (unsorted) 4 Precise air guns 1 Infeed belt (unsorted) 3 Intelligent finger ejectors 2 Cameras 5 Accept / reject 2 Full width NIR and Color 4 Accept/reject 3 Lasers Vision sensors Chute or Channel sorte
Slide 57: Food technology platforms
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 TOMRA S Pro
Slide 58: Leading position globally
Leading position globally Total Food Sorting and Grading Market >3k # of installed machines Addressable Food market Chute 1-3k TOMRA 2022: ˜0.4 EUR billion Lane 0-1k Belt 10-25 25-50 >50 markets markets markets Geographic presence 58 Size of bubble = Estimated revenue from sensor-based sorting and r
Slide 59: Food Categories
Food Categories Potatoes Nuts & Dried Fruit Vegetables Apples Citrus Berries Cherries Fresh Cut Avocados Kiwifruit Grains & Seeds
Slide 60: Leading technology
Leading technology Sorting & Artificial Grading Intelligence Data & Service & Analytics Support
Slide 61: Some of our customers
Some of our customers Processed Food Fresh Food 61
Slide 62: Corporate strategy and sustainable growth
Corporate strategy and sustainable growth 62
Slide 63: Group financials development
Group financials development Revenues Gross contribution and margin 1,400 700 49% 1,200 600 42% 1,000 500 35% 800 400 28% MEUR MEUR 600 300 21% 400 200 14% 200 100 7% 0 0 0% 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Earnings per sha
Slide 64: Accelerate growth in core business and develop adjacent opportunities
Our strategy is to accelerate growth in core business and develop adjacent opportunities 64 64
Slide 65: TOMRA's strategy: develop adjacent business through TOMRA Horizon
Develop adjacent business through TOMRA’s strategy is to TOMRA Horizon We explore and scale up new adjacent business opportunities and alternative business models that leverage our technology and decades of know-how to ➢ accelerate growth ➢ diversify our business ➢ creating value for customers, shar
Slide 66: TOMRA Feedstock
TOMRA Feedstock 66
Slide 67: TOMRA is investing into two advanced Feedstock sorting plants
Germany TOMRA • 100% TOMRA owned Long-term offtake is investing into • EUR ~ 50-60 million agreements signed with two advanced • Capacity ~ 80.000 tons p.a. industry leaders • Output: >10 different polymer fractions Feedstock • Operational end of 2025 est. TOMRA will provide stable supply of high-qu
Slide 68: More plastics in Europe need to be recycled
More plastics in Europe need to be recycled Too little plastic waste Too little recycled plastics is being recycled is used in new products Post-consumer plastics waste treatment in Europe Source of plastics converted into new plastic products in Europe Recycled plastics Landfill Recycling 13% 24% 2
Slide 69: Only half of post-consumer plastics waste is collected and sorted
Only half of post-consumer plastics waste is separately collected and sorted for recycling Post-consumer plastics waste value chain in Europe Illustrative and simplified 16 million tons p.a. 8 million tons p.a. Landfill Mixed waste collection 15 million tons p.a. Incineration Plastic Product Consump
Slide 70: A new advanced sorting step can enable circularity
A new advanced sorting step in the value chain can enable circularity of millions of tons of plastic waste Leveraging TOMRA Post-consumer plastics waste value chain in Europe technology and expertise Illustrative and simplified 16 million tons p.a. <8 million tons p.a. Landfill Mixed waste Sorted an
Slide 71: Supporting drivers across the value chain for circular plastics
Supporting drivers across the value chain for circular plastics Regulatory push for more Industry committing to GHG Chemical recycling capacity is plastics recycling emission reduction increasing Creating supply and demand for Creating demand for recycled plastics Creating demand for recyclates recy
Slide 72: TOMRA Feedstock alternative business model for long-term value creation
Incoming waste is Sorting and recovery TOMRA Feedstock offers an attractive alternative typically subject to 70-80 % business model for long-term value creation EUR 30-60 / ton yield gate fee Output Illustrative cash flow profile for a large-scale greenfield plant Payback period 8-15 Investment peri
Slide 73: TOMRA Reuse
TOMRA Reuse 73
Slide 74: First Rotake system launched in Aarhus
Another 29 20,000 50,000 machines cups at launch Being delivered in February Over 40 cafés and eateries In January 2024, we participating launched the first ever Users pay TOMRA investing Rotake system in Aarhus 5DKK deposit which is refunded 15 million NOK upon return to RVM in Aarhus pilot 1.5DKK
Slide 75: The Rotake system
BUY CONSUME takeaway from at home/in office/on restaurant/café The Rotake the go system TOMRA Reuse is developing a full circular value chain and an open managed system to enable reusable takeaway packaging with collection technology at the core SANITIZE sort, quality check and RETURN at ship back t
Slide 76: Reuse enabled by technology
Serialized packaging for system integrity and transparency Reuse enabled by technology Advanced digital backbone for user simplicity Outbound Café/Restaurant Logistics Delivery Automated collection points for user Sanitization Warehouse Collection Point 76 Inbound convenience, scalability and seamle
Slide 77: Reuse addresses growing waste and GHG emissions from single-use packaging
Reuse addresses the growing problem from increased waste and GHG emissions stemming from single-use packaging In Europe alone, it is consumed …creating substantial market …relying on key drivers up to ~25bn1 in takeaway opportunities for players like materializing to ensure system containers each ye
Slide 78: TOMRA Textiles
TOMRA Textiles
Slide 79: TOMRA Textiles
TOMRA Textiles Only 1% is Automated sensor-based sorting enables accurate recycled sorting of mixed textile materials into high-purity into new textile single material products, to suit different recycling products 85% end up in technology feedstock requirements. (fiber-to-fiber 12% are landfills or
Slide 80: Our ambitions 2022 – 2027
Our ambitions 2022 – 2027 Revenue EBITA Dividend Capital Net Zero growth margin payout structure Holistic 15% at 40 – 60% Investment sustainability CAGR 18% of EPS grade strategy 80
Slide 81: Our ambition is to keep an investment grade status
Our ambition is to keep an investment grade status Green Bond Framework Financial Risk Profile A- A Scope Ratings June 2024 Business Risk Profile Investment BBB+ grade 81
Slide 82: TOMRA Green Bond Framework
TOMRA Green Bond Framework Use of proceeds Highlights form Cicero Second Party Opinion ICMA category: Pollution prevention and control “TOMRA’s RVMs and waste sorting machines are well-aligned with circular economy Expenditures related to: Examples of eligible assets: solutions and a low-carbon futu
Slide 83: Our sustainability commitment
Our sustainability commitment Leading the Resource Revolution while becoming a fully circular business and being safe, fair and inclusive
Slide 84: Our sustainability targets
Our sustainability targets 84 84
Slide 85: For a sustainable planet for generations to come
For a sustainable planet for generations to come 85
Slide 86: 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 87: www.tomra.com
www.tomra.com