Slide 1: 2nd Quarter 2018 Results Announcement
ND 2 QUARTER 2018 RESULTS ANNOUNCEMENT TOMRA SYSTEMS ASA 2nd Quarter Results 19.07.2018
Slide 2: Highlights from the Quarter
HIGHLIGHTS FROM THE QUARTER • Revenues of 2,128 MNOK (1,972 MNOK in second quarter 2017) – up 8% Adjusted for currency and acquisitions, revenues were: Revenues - Up 7% for TOMRA Group - Up 10% in TOMRA Collection Solutions - Up 4% in TOMRA Sorting Solutions • Gross margin 43%, up from 42% in second
Slide 3: Global Initiatives Drive Public Awareness and Search for Solutions
A NUMBER OF GLOBAL INITIATIVES DRIVE PUBLIC AWARENESS AND SEARCH FOR SOLUTIONS Increased focus on plastic pollution globally and in Europe… • December 2017, UN called for their member nations to prevent and significantly reduce marine pollution of all kinds by 2025 − Container Deposit Schemes (CDS)
Slide 4: Currency
CURRENCY +2.0%* TCS: Positive impact from stronger EUR, offset by a weaker USD. TSS: Negatively -5.9%* impacted by weak USD vs EUR. 2Q17 3Q17 4Q17 1Q18 2Q18 *Average rate 2Q18 vs 2Q17 Revenues and expenses per currency; NOTE: Rounded figures EUR* USD NOK NZD OTHER TOTAL Revenues 45 % 45 % 0% 0% 10 %
Slide 5: Financial Highlights: P&L Statement
FINANCIAL HIGHLIGHTS P&L STATEMENT 2nd Quarter 1st Half Amounts in NOK million 2018 2017 17 Adj* 2018 2017 17 Adj* Revenues 2,128 1,972 1,938 3,882 3,536 3,508 • Collection Solutions 1,055 975 964 1,989 1,852 1,853 • Sorting Solutions 1,073 997 974 1,893 1,684 1,655 Gross contribution 916 834 813 1,
Slide 6: Financial Highlights: Balance Sheet, Cash Flow and Capital Structure
FINANCIAL HIGHLIGHTS BALANCE SHEET, CASH FLOW AND CAPITAL STRUCTURE 30 June 30 June 31 Dec Amounts in NOK million 2018 2017 2017 ASSETS 8,849 8,260 8,437 • Intangible non-current assets 3,662 3,364 3,412 • Tangible non-current assets 1,066 839 998 • Financial non-current assets 352 362 349 • Invento
Slide 7: TOMRA Collection Solutions
TOMRA COLLECTION SOLUTIONS 7
Slide 8: Highlights Collection Solutions
HIGHLIGHTS COLLECTION SOLUTIONS • Revenues of 1,055 MNOK, up from 975 MNOK in second quarter 2017 - Revenues up 10% in local currencies, mainly driven by New South Wales’ volumes • Gross margin was 42% in the period - Unchanged from second quarter 2017 Overall • Operating expenses of 259 MNOK, up fr
Slide 9: Potential New Deposit Markets
POTENTIAL NEW DEPOSIT MARKETS Queensland Western Australia Scotland England • Queensland government has conditionally • September 2017, First • March 2018, UK appointed CoEx to develop • Consumers will be able to Minister Nicola Sturgeon Environment Secretary and run a CDS scheme get a 10 cent refun
Slide 10: Collection Solutions Financials
COLLECTION SOLUTIONS FINANCIALS 2nd Quarter 1st Half Amounts in NOK million 2018 2017 17 Adj* 2018 2017 17 Adj* Revenues 1,055 975 964 1,989 1,852 1,853 • Northern Europe 162 149 310 288 • Europe (ex Northern) 403 411 812 794 • North America 413 404 735 746 • Rest of the world 77 11 132 24 Gross con
Slide 11: TOMRA Sorting Solutions
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Slide 12: Highlights Sorting Solutions
HIGHLIGHTS SORTING SOLUTIONS • Revenues equaled 1,073 MNOK in second quarter 2018, up from 997 MNOK in second quarter 2017 Revenues – Adjusted for currency and acquisitions, revenues were up 4% – Includes BBC revenues of 63 MNOK in second quarter 2018 • Gross margin 44% Gross margin — Up from 42% la
Slide 13: Business Stream Update
BUSINESS STREAM UPDATE FOOD • Stable revenues in 2Q18 compared to 2Q17 • Strong order intake, leading to all time high order backlog • BBC consolidated from 1 March 2018, ending second quarter with a backlog of 100 MNOK, up from 86 MNOK at the end of first quarter 2018 RECYCLING • Revenues in 2Q18 u
Slide 14: Sorting Solutions Financials
SORTING SOLUTIONS FINANCIALS 2nd Quarter 1st Half Amounts in NOK million 2018 2017 17 Adj* 2018 2017 17 Adj* Revenues 1,073 997 974 1,893 1,684 1,655 • Europe 428 329 684 536 • North America 406 434 688 686 • South America 39 33 68 58 • Asia 88 92 203 200 • Oceania 71 82 157 139 • Africa 41 27 93 65
Slide 15: Backlog Development and Momentum
BACKLOG DEVELOPMENT AND MOMENTUM ORDER INTAKE ORDER BACKLOG REVENUES • TOMRA Sorting Solutions (TSS): • Revenues of 1,073 MNOK, up from 997 MNOK last year • Order intake of 1,144 MNOK in the quarter, compared to 951 MNOK last year • Despite all time high revenues in the quarter, a strong order intak
Slide 16: Outlook
WEE SSE " OUTLOOK
Slide 17: Outlook
OUTLOOK • The replacement demand in Germany is assumed to continue in Collection 2018 Solutions • Ramp-up in New South Wales will finish during 3rd quarter 2018 • Increased operating expenses due to preparation for new markets • Currently good momentum in all business Sorting streams Solutions • Rep
Slide 18: Q&A
Q&A 18
Slide 19: Disclaimer
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