Slide 1: 4th Quarter 2018 Results Announcement
TH 4 QUARTER 2018 RESULTS ANNOUNCEMENT TOMRA SYSTEMS ASA 4th Quarter Results 21.02.2019
Slide 2: Highlights from 2018
HIGHLIGHTS FROM 2018 • Revenues of 8,596 MNOK (7,432 MNOK in 2017) – up 16% Adjusted for currency and acquisitions, revenues were: Revenues - Up 11% for TOMRA Group - Up 9% in TOMRA Collection Solutions - Up 14% in TOMRA Sorting Solutions • Gross margin 43%, up from 42% in 2017 Gross margin - Stable
Slide 3: Highlights from the Quarter
HIGHLIGHTS FROM THE QUARTER • Revenues of 2,467 MNOK (2,041 MNOK in fourth quarter 2017) – up 21% Adjusted for currency and acquisitions, revenues were: Revenues - Up 15% for TOMRA Group - Up 14% in TOMRA Collection Solutions - Up 17% in TOMRA Sorting Solutions • Gross margin 43%, unchanged from fou
Slide 4: Update on EU Single-Use Plastics Directive
UPDATE ON EU SINGLE-USE PLASTICS DIRECTIVE - REINFORCING EU'S LEADERSHIP ROLE ON ENVIRONMENT Recycled content in product design: Product bans - 25% by 2025 in PET bottles - 30% by 2030 in all plastic bottles Collection target for plastic bottles: - 77% by 2025 - 90% by 2029 Extended Producer Respons
Slide 5: Currency
CURRENCY +3.4%* Positive impact from stronger USD vs EUR in +0.2%* TSS 4Q17 1Q18 2Q18 3Q18 4Q18 *Average rate 4Q18 vs 4Q17 Revenues and expenses per currency: EUR* USD NOK NZD OTHER TOTAL Revenues 45 % 45 % 0% 0% 10 % 100 % Expenses 40 % 30 % 5% 5% 20 % 100 % EBITA 50 % 100 % - 20 % - 20 % -10 % 100
Slide 6: Financial Highlights P&L Statement
FINANCIAL HIGHLIGHTS P&L STATEMENT 4th Quarter Full year Amounts in NOK million 2018 2017 17 Adj* 2018 2017 17 Adj* Revenues 2,467 2,041 2,066 8,596 7,432 7,470 • Collection Solutions 1,141 995 1,004 4,265 3,871 3,901 • Sorting Solutions 1,326 1,046 1,062 4,331 3,561 3,569 Gross contribution 1,049 8
Slide 7: Financial Highlights Balance Sheet, Cash Flow and Capital Structure
FINANCIAL HIGHLIGHTS BALANCE SHEET, CASH FLOW AND CAPITAL STRUCTURE 31 Dec 31 Dec Amounts in NOK million 2018 2017 ASSETS 9,595 8,437 • Intangible non-current assets 3,821 3,412 • Tangible non-current assets 1,276 998 • Financial non-current assets 340 349 • Inventory 1,447 1,197 • Receivables 2,314
Slide 8: Dividend
DIVIDEND • Target to distribute 40%-60% of EPS as dividend • Strong cashflow generation from recurring business • Solid balance sheet • Easy access to financing • Board proposal to the Annual General Meeting: - Ordinary dividend of NOK 2.50 - Extraordinary dividend of NOK 2.00 - Total dividend NOK 4
Slide 9: TOMRA Collection Solutions
TOMRA COLLECTION SOLUTIONS 9
Slide 10: Highlights Collection Solutions
HIGHLIGHTS COLLECTION SOLUTIONS • Revenues of 1,141 MNOK, up from 995 MNOK in fourth quarter 2017 - Revenues up 14% in local currencies, with increased revenues in all geographies • Gross margin was 40% in the period - Unchanged from fourth quarter 2017 Overall • Operating expenses of 273 MNOK, up f
Slide 11: Initiatives on New Container Deposit Markets
INITIATIVES ON NEW CONTAINER DEPOSIT MARKETS Western Australia Scotland Portugal England • December 2018, the • Beverage containers accounts • September 2017, First • March 2018, UK Environment Government published a law for 35% of all litter in WA Minister Nicola Sturgeon Secretary Michael Gove est
Slide 12: Collection Solutions Financials
COLLECTION SOLUTIONS FINANCIALS 4th Quarter Full year Amounts in NOK million 2018 2017 17 Adj* 2018 2017 17 Adj* Revenues 1,141 995 1,004 4,265 3,871 3,901 • Northern Europe 154 180 611 614 • Europe (ex Northern) 465 407 1,710 1,671 • North America 403 377 1,605 1,520 • Rest of the world 119 31 339
Slide 13: TOMRA Sorting Solutions
TOMRA SORTING SOLUTIONS 13
Slide 14: Highlights Sorting Solutions
HIGHLIGHTS SORTING SOLUTIONS • Revenues equaled 1,326 MNOK in fourth quarter 2018, up from 1,046 MNOK in fourth quarter 2017 Revenues – Adjusted for currency and acquisitions, revenues were up 17% – Includes BBC revenues of 84 MNOK in fourth quarter 2018 • Gross margin 45% Gross margin — Unchanged f
Slide 15: Business Stream Update
BUSINESS STREAM UPDATE FOOD • Revenues in 4Q18 improved significantly compared to 4Q17 • Order intake up quarter over quarter • BBC consolidated from 1 March 2018, ending fourth quarter with a backlog of 53 MNOK RECYCLING • Revenues in 4Q18 stable compared to 4Q17, • Order intake stable quarter over
Slide 16: Sorting Solutions Financials
SORTING SOLUTIONS FINANCIALS 4th Quarter Full year Amounts in NOK million 2018 2017 17 Adj* 2018 2017 17 Adj* Revenues 1,326 1,046 1,062 4,331 3,561 3,569 • Europe 401 302 1,508 1,182 • North America 442 354 1,466 1,282 • South America 111 51 253 140 • Asia 152 128 491 419 • Oceania 129 117 383 329
Slide 17: Development in Order Intake and Order Backlog
DEVELOPMENT IN ORDER INTAKE AND ORDER BACKLOG ORDER INTAKE ORDER BACKLOG REVENUES • TOMRA Sorting Solutions (TSS): • Revenues of 1,326 MNOK, up from 1,046 MNOK last year • Order intake of 1,146 MNOK in the quarter, compared to 967 MNOK last year • Despite all time high revenues in the quarter, a str
Slide 18: Outlook
OUTLOOK 18
Slide 19: Outlook
OUTLOOK • Overall stable business Collection Solutions • Increased operating expenses due to preparation for new markets Sorting • Currently positive momentum in all business streams Solutions • Reporting in NOK and with some NOK cost base, TOMRA will in general benefit from a weak NOK, particularly
Slide 20: Q&A
Q&A 20
Slide 21: Copyright and Disclaimer
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