Slide 1: 4th quarter 2019 results announcement
th 4 quarter 2019 results announcement TOMRA Systems ASA 20 February 2020 © TOMRA
Slide 2: Highlights from the year & 4th quarter
HIGHLIGHTS FROM THE YEAR & 4th QUARTER 2
Slide 3: Highlights from the year
Highlights from the year • Revenues of 9,346 MNOK (8,596 MNOK in 2018) – up 9% Adjusted for currency and acquisitions, revenues were: Revenues - Up 5% for TOMRA Group - Up 5% in TOMRA Collection Solutions - Up 5% in TOMRA Sorting Solutions • Gross margin 44%, up from 43% in 2018 Gross margin - Impro
Slide 4: Highlights from the quarter
Highlights from the quarter Revenues • Revenues of 2,569 MNOK (2,467 MNOK in fourth quarter 2018) – up 4% Adjusted for currency, revenues were: - Down 1% for TOMRA Group - Up 6% in TOMRA Collection Solutions - Down 6% in TOMRA Sorting Solutions Gross margin • Gross margin 43.1% (up from 42.5% in fou
Slide 5: TOMRA's solutions to close the loop
TOMRA’s solutions to close the loop Sort >8m tons of plastic Upcycle 2m tons of plastic every year from 2025 20-people dedicated team: every year from 2025 14% 40% From waste to value 2% collected for 30% recycling • Create the market for recyclates closed-loop recycling • Collaboration across value
Slide 6: Highlights Collection Solutions
Highlights Collection Solutions Business drivers Public pressure to reduce waste, littering and treatment of single-use plastics, where deposit legislation is the solution P/L • Revenues of 1,265 MNOK, up from 1,141 MNOK in fourth quarter 2018 - Revenues up 6% in local currencies due to higher activ
Slide 7: Latest update on selected new container deposit markets
Latest update on selected new container deposit markets Western Australia Scotland Portugal England France • September 2016, the • September 2017, First • December 2018, the • March 2018, UK • June 2019, State Secretary government announced Minister Nicola Sturgeon Government published Environment S
Slide 8: Highlights Sorting Solutions
Highlights Sorting Solutions P/L Food Recycling & Mining • Revenues equaled 1,304 MNOK in • Business drivers: growing population • Business drivers: Growth in waste fourth quarter 2019, down 2% year- and more demanding consumers, volume combined with stronger over-year need to increase yield, produc
Slide 9: Financials and outlook
FINANCIALS AND OUTLOOK 9
Slide 10: Currency risk and hedging policy
Currency risk and hedging policy 10% change in NOK towards other +7.9*% currencies will impact: Positive Revenues Expenses EBITA impact from EUR* 4.5% 4.0% 7.0% +4.7*% stronger USD 3.5% 2.5% 8.0% USD vs EUR OTHER** 2.0% 3.0% -4.0% ALL 10.0% 9.5% 11.0% 4Q18 1Q19 2Q19 3Q19 4Q19 HEDGING POLICY *Average
Slide 11: Financial highlights | P&L statement
Financial highlights | P&L statement 4th quarter Full year Amounts in NOK million 2019 2018 2018 Adj* 2019 2018 2018 Adj* Revenues 2,569 2,467 2,583 9,346 8,596 8,928 Collection Solutions 1,265 1,141 1,196 4,633 4,265 4,424 Sorting Solutions 1,304 1,326 1,387 4,713 4,331 4,504 Gross contribution 1,1
Slide 12: Collection Solutions financials
Collection Solutions financials 4th quarter Full year Amounts in NOK million 2019 2018 2018 Adj* 2019 2018 2018 Adj* Revenues 1,265 1,141 1,196 4,633 4,265 4,424 Northern Europe 160 154 618 611 Europe (ex Northern) 498 465 1,708 1,710 North America 428 403 1,718 1,605 Rest of the world 179 119 589 3
Slide 13: Sorting Solutions financials
Sorting Solutions financials 4th quarter Full year Amounts in NOK million 2019 2018 2018 Adj* 2019 2018 2018 Adj* Revenues 1,304 1,326 1,387 4,713 4,331 4,504 Europe 423 401 1,767 1,508 America 466 553 1,651 1,719 Asia 185 152 596 491 Rest of the world 230 220 699 613 Gross contribution 602 597 627
Slide 14: 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 1,304 MNOK, down from 1,326 MNOK last year - All time high order intake of 1,332 MNOK in the quarter, compared to 1,146 MNOK last year - Order backlog of 1,458 MNOK at the
Slide 15: Financial highlights | Balance sheet and cash flow
Financial highlights | Balance sheet and cash flow With IFRS 16 Without IFRS 16 31 Dec 31 Dec 31 Dec Amounts in NOK million 2019 2019 2018 ASSETS 10,868 9,815 9,595 Intangible non-current assets 3,788 3,788 3,821 Tangible non-current assets 2,330 1,293 1,276 Financial non-current assets 406 406 340
Slide 16: Successful issuance of unsecured bonds
Successful issuance of unsecured bonds • 6 November 2019, TOMRA issued a total amount of 1,000 3,000 MNOK in senior unsecured bonds. • The transaction is split in two tranches, both were 2,500 significantly oversubscribed: − 400 MNOK on 3-years with a coupon of 3m Nibor + 0.50% p.a. − 600 MNOK on 5-
Slide 17: Dividend Information
Dividend Information • 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 2.75 - Up from an ordinary dividend of NOK 2.50 last
Slide 18: Outlook
Outlook • Overall stable business Collection Solutions • Increased operating expenses due to ramp-up in new markets • Good momentum within Recycling Sorting Solutions • Improved momentum in Food, but with regional differences • Reporting in NOK and with some NOK cost base, TOMRA will in general bene
Slide 19: Q&A
Q&A 19
Slide 20: Copyright and Disclaimer
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