Slide 1: 4th Quarter 2016 Results Announcement
TH 4 QUARTER 2016 RESULTS ANNOUNCEMENT TOMRA SYSTEMS ASA 4th Quarter Results 23.02.2017
Slide 2: Highlights from 2016
HIGHLIGHTS FROM 2016 • Revenues of 6,610 MNOK (6,143 MNOK in 2015) Currency adjusted revenues were: - Up 4% for TOMRA Group Revenues - Up 4% in TOMRA Collection Solutions - Up 5% in TOMRA Sorting Solutions • Gross margin 43%, up from 42% in 2015 Gross margin - Improved margin in TOMRA Collection Sol
Slide 3: Highlights from the Quarter
HIGHLIGHTS FROM THE QUARTER • Revenues of 1,766 MNOK (1,816 MNOK in fourth quarter 2015) Currency adjusted revenues were: Revenues - Stable for TOMRA Group - Down 7% in TOMRA Collection Solutions - Up 11% in TOMRA Sorting Solutions • Gross margin 42%, up from 41% in fourth quarter 2015 Gross margin
Slide 4: Currency
CURRENCY -1.8%* Some negative impact from currencies in 4Q16 vs 4Q15 -3.2%* -8.0%* 4Q15 1Q16 2Q16 3Q16 4Q16 * Average rate 4Q16 vs average rate 4Q15 Revenues and expenses per currency; NOTE: Rounded figures EUR** USD NOK SEK OTHER TOTAL Revenues 45 % 30 % 5% 10 % 10 % 100 % Expenses 45 % 25 % 10 % 1
Slide 5: Financial Highlights: P&L Statement
FINANCIAL HIGHLIGHTS P&L STATEMENT 4th Quarter YTD Amounts in NOK million 2016 2015 15 Adj* 2016 2015 15 Adj* Revenues 1,766 1,816 1,775 6,610 6,143 6,350 • Collection Solutions 1,028 1,139 1,110 4,065 3,803 3,921 • Sorting Solutions 738 677 665 2,545 2,340 2,429 Gross contribution 743 751 740 2,814
Slide 6: 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 2016 2015 ASSETS 7,115 7,317 • Intangible non-current assets 2,750 2,891 • Tangible non-current assets 801 838 • Financial non-current assets 342 316 • Inventory 1,127 1,209 • Receivables 1,696 1
Slide 7: TOMRA Collection Solutions
TOMRA COLLECTION SOLUTIONS 7
Slide 8: Highlights Collection Solutions
HIGHLIGHTS COLLECTION SOLUTIONS • Revenues of 1,028 MNOK, down from 1,139 MNOK in fourth quarter 2015 - Revenues down 7% in local currencies • Gross margin was 39% in the period - Slightly up from same quarter last year Overall • Operating expenses of 204 MNOK - Up 4% currency adjusted • EBITA decre
Slide 9: Collection Solutions Financials
COLLECTION SOLUTIONS FINANCIALS 4th Quarter YTD Amounts in NOK million 2016 2015 15 Adj* 2016 2015 15 Adj* Revenues 1,028 1,139 1,110 4,065 3,803 3,921 • Nordic 157 152 665 526 • Europe (ex Nordic) 505 616 1,860 1,809 • North America 354 353 1,474 1,393 • Rest of the world 12 18 66 75 Gross contribu
Slide 10: Germany Replacement Update
GERMANY REPLACEMENT UPDATE TOMRA MACHINES INSTALLED IN THE GERMAN MARKET 2700 – 3700 MACHINES PER YEAR 10
Slide 11: TOMRA Sorting Solutions
TOMRA SORTING SOLUTIONS 11
Slide 12: Highlights Sorting Solutions
HIGHLIGHTS SORTING SOLUTIONS • Revenues equaled 738 MNOK in fourth quarter 2016, Revenues up from 677 MNOK in fourth quarter 2015 — Revenues up 11% in local currencies • Gross margin was 46% in the period Gross margin — Slightly up from same quarter last year EBITA • EBITA of 134 MNOK (115 MNOK in f
Slide 13: Business Stream Update
BUSINESS STREAM UPDATE FOOD • Overall good momentum • Revenues in 4Q16 significantly up from 4Q15 • Order intake significantly up quarter over quarter RECYCLING • Continuing low commodity prices still have somewhat negative effect on performance • Revenues in 4Q16 slightly down compared to 4Q15, • O
Slide 14: Sorting Solutions Financials
SORTING SOLUTIONS FINANCIALS 4th Quarter YTD Amounts in NOK million 2016 2015 15 Adj* 2016 2015 15 Adj* Revenues 738 677 665 2,545 2,340 2,429 • Europe 290 305 1,100 1,089 • North America 194 179 805 685 • South America 47 35 80 92 • Asia 122 132 368 366 • Oceania 48 13 115 52 • Africa 37 13 77 56 G
Slide 15: Backlog Development and Momentum
BACKLOG DEVELOPMENT AND MOMENTUM • Order intake of 649 MNOK in the quarter (up from 551 MNOK same quarter last year) • Revenues were 738 MNOK (compared to 677 MNOK in 4Q16) • Order backlog of 704 MNOK, up from 659 MNOK at the end of fourth quarter 2015 • Estimated backlog conversion ratio in 1Q17: 7
Slide 16: Expanding Further in Food Sorting
EXPANDING FURTHER IN FOOD SORTING • TOMRA signed 11 October a sales and purchase agreement with the owners of Compac Holding Ltd (Compac), acquiring 100 per cent of the shares in the company. • Closing of the transaction took place 31 January 2017, after Tomra obtained approval from the New Zealand
Slide 17: Outlook and Shareholder Structure
OUTLOOK AND SHAREHOLDER STRUCTURE 17
Slide 18: Outlook
OUTLOOK • The replacement demand in Germany is assumed to Collection continue into 2017, but the replacement in Sweden was Solutions to a large extent finished at the end of 2016 • Currently good momentum in Food, but low commodity Sorting prices continue to have a somewhat negative influence Soluti
Slide 19: Q&A
Q&A 19
Slide 20: TOMRA Shareholder Structure
TOMRA SHAREHOLDER STRUCTURE Top 10 shareholders as of 31st of December 2016 Shareholders by country 1 Investment AB Latour 38 311 000 25.8% 3% 2 Folketrygdfondet 9 529 819 6.4% 5% 5% 3 The Bank of New York BNYM, Stitching Dep 7 845 000 5.3% (NOM) 6% 35% 4 Skandinaviska Enskilda A/C Clients account 4
Slide 21: Disclaimer
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