Slide 1: 2nd quarter 2023 results announcement
2nd quarter 2023 results announcement Click to enter TOMRA Systems name ASA Place 14 July 2023 dd.mm.yy © TOMRA
Slide 2: Quarterly highlights
Quarterly highlights
Slide 3: Financial highlights
Revenues • All-time high revenues in all divisions. Total revenue of 3,879 MNOK (3,054 MNOK in the second quarter 2022) Adjusted for currency, revenues were: Financial — Up 14% for TOMRA Group — Up 15% in Collection — Up 26% in Recycling highlights — Up 4% in Food Gross margin • Gross margin improve
Slide 4: Our strategy is to accelerate growth in core and develop adjacent opportunities
Our strategy is to accelerate growth in core and develop adjacent opportunities while becoming a fully circular business and safe, fair and inclusive Our ambitions towards 2027 Net Zero Revenue growth EBITA margin Dividend payout Capital structure holistic sustainability 15% CAGR at 18% 40-60% of EP
Slide 5: Creating sensor-based solutions for optimal resource productivity
>105,000 installations Creating sensor-based solutions for optimal resource productivity - transforming how we obtain, use, and reuse resources e Collection Recycling Food 100+ countries Publicly listed on Oslo Stock Exchange (OSE: TOM) 5
Slide 6: Collection Business update
Victoria – 1 November 2023 Collection Victoria will go live with its container deposit scheme on 1 November 2023 with TOMRA Cleanaway as the network operator for zones 1 and 4. (link). The Tasmanian bottle bill was passed in 2022 with implementation expected in second half 2024. (link) Business upda
Slide 7: Recycling Business update
All-time high order backlog Recycling up 28% (currency adj.) compared with Q2 2022 Business update NOK millions 1 421 980 • All-time high quarterly revenues and order backlog 822 695 579 • Strong but more normalized order intake growth of 16% (currency adj.) • Launch of AUTOSORT PULSE for next-level
Slide 8: Food Business update
Decline in order intake down 18% (currency adj.) compared with Q2 2022 Food NOK millions 713 748 881 1 043 1 024 Business update 2Q19 2Q20 2Q21 2Q22 2Q23 • Good performance in the quarter driven by processed food • Weakened market sentiment due to a challenging macroeconomic environment • Focus on a
Slide 9: Positioned to develop adjacent opportunities
Closing the gap in Close the loop on plastic recycling textiles Positioned to develop adjacent opportunities Systems for 9 reusable packaging
Slide 10: Legislative push to advance circularity
Legislative push to advance circularity Recycled content Reuse and refill National legislation on EU’s Packaging & Packaging Waste Regulation EU’s Packaging & Packaging Waste Regulation take-away packaging (proposed) (proposed) France 1 January 2023: Mandatory reusable tableware for dine-in % of pos
Slide 11: Feedstock plant input and output
Input Output Feedstock Mixed plastics fraction High quality polymer Advanced sorting fractions to be supplied to sourced from material recovery facilities Dry washing recyclers (PE, PE-LD, PP, PS, PET, film) 11
Slide 12: TOMRA Feedstock Plants Germany Norway
TOMRA Feedstock Plants Germany Norway • Announced 19 December 2022 • Announced 31 May 2023 • 100% TOMRA owned • Joint Venture 65% TOMRA / 35% Plastretur • EUR ~ 50-60 million investment • EUR ~ 32 million investment • Capacity ~ 80.000 tons p.a. • Capacity ~ 90.000 tons p.a. • Input: mixed post-cons
Slide 13: Circular re-use system for takeaway packaging
Circular re-use system for takeaway packaging BUY Takeaway from restaurant/café Delivered at home RETURN to automated collection point PROCESS Sanitize, sort, quality check and ship back to restaurants/café COLLECT 13 Picking up empty packaging and transport to sanitation hub
Slide 14: Collaboration with Aarhus Municipality in Denmark on a deposit system for takeaway packaging
Collaboration with Aarhus Municipality in Denmark on a deposit system for takeaway packaging 14 Aarhus Docklands. Credits: Roar Paaske, VisitDenmark.
Slide 15: Financials and outlook
Financials and outlook
Slide 16: Group P&L Highlights
Revenues [NOK millions] 3 879 Group P&L Highlights 2 319 2 319 2 686 3 054 2nd Quarter 1st Half Year Amounts in NOK million 2023 2022 2022 Adj* 2023 2022 2022 Adj* 2Q19 2Q20 2Q21 2Q22 2Q23 Revenues 3,879 3,054 3,416 7,118 5,555 6,186 Gross margin [% of Revenues] Collection 1,952 1,519 1,702 3,779 2,
Slide 17: Collection P&L Highlights
Revenues [NOK millions] 1 952 Collection P&L Highlights 1 379 1 519 1 088 1 055 2nd Quarter 1st Half Year Amounts in NOK million 2023 2022 2022 Adj* 2023 2022 2022 Adj* 2Q19 2Q20 2Q21 2Q22 2Q23 Revenues 1,952 1,519 1,702 3,779 2,913 3,245 Gross margin [% of Revenues] Northern Europe 300 240 568 485
Slide 18: Recycling P&L Highlights
Revenues [NOK millions] 789 552 Recycling P&L Highlights 426 354 439 2Q19 2Q20 2Q21 2Q22 2Q23 2nd Quarter 1st Half Year Gross margin Amounts in NOK million 2023 2022 2022 Adj* 2023 2022 2022 Adj* [NOK millions] 54% 55% 53% 49% 51% Revenues 789 552 624 1,406 1,041 1,162 Europe 403 363 730 672 2Q19 2Q
Slide 19: Food P&L Highlights
Revenues [NOK millions] 1 139 Food P&L Highlights 983 910 867 2Q20 2Q21 2Q22 2Q23 2nd Quarter 1st Half Year Gross margin Amounts in NOK million 2023 2022 2022 Adj* 2023 2022 2022 Adj* [NOK millions] 43% 43% 44% 43% Revenues 1,139 983 1,090 1,933 1,601 1,780 Europe 388 289 610 429 2Q20 2Q21 2Q22 2Q23
Slide 20: Balance sheet and cash flow
Cash flow from operations [NOK millions] Balance sheet and cash flow 2,000 1,500 30 June 31 December 1,000 Amounts in NOK million 2023 2022 2022 500 ASSETS 15,617 13,242 13,932 0 Intangible non-current assets 4,520 3,949 4,132 1/1 1Q 2Q 3Q 4Q Tangible non-current assets 2,954 2,481 2,671 Range 2020-
Slide 21: Financial position
Financial position Debt maturity profile Current funding sources • Weighted average debt maturity of 2.6 years • TOMRA has a satisfactory liquidity situation with available unused credit lines of approx. 663 MNOK • Interest-bearing bonds are swapped to EUR and is exposed to EUR/NOK exchange rate flu
Slide 22: Currency risk and hedging policy
Currency risk and hedging policy Measured against NOK 130 10% change in NOK towards other currencies will impact: 125 EUR/NOK +16.3%* 120 Revenues Expenses EBITA USD/NOK +13.6%* 115 EUR 5.0% 5.0% 5.0% 110 105 USD 3.0% 2.5% 6.0% 100 OTHER1 2.0% 2.0% 2.0% 95 90 ALL 10.0% 9.5% 13.0% 2Q22 3Q22 4Q22 1Q23
Slide 23: Outlook
• High activity related to preparation for new markets Collection • Quarterly performance will be dependent upon timing of new initiatives Outlook • Positive momentum assumed to continue but normalize from high 2022-2023 levels Recycling • Demand for recycled materials is expected to create opportun
Slide 24: 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 25: www.tomra.com
www.tomra.com 25