Slide 1: 1st quarter 2024 results announcement
st 1 quarter 2024 results announcement TOMRA Systems Click to ASA enter name 26Place April 2024 © dd.mm.yy TOMRA
Slide 2: Quarterly highlights
Quarterly highlights
Slide 3: Financial highlights
Revenues • Total revenue of 3,322 MNOK (3,239 MNOK in 1Q 2023). Adjusted for currency, revenues were: — Flat for TOMRA Group — Up 15% in Collection — Down 16% in Recycling — Down 15% in Food Gross margin • Gross margin at 40% – (40% in 1Q 2023) — Improvement in Collection compared to last year, whil
Slide 4: Our strategy is to accelerate growth in core and develop adjacent opportunities
Our strategy is to accelerate Our ambitions towards 2027 growth in core and develop adjacent • Revenue growth 15% CAGR opportunities while becoming a fully • EBITA margin at 18% circular business and safe, fair and • Dividend payout 40-60% of EPS inclusive • Capital structure Investment Grade • Net
Slide 5: Collection Recycling Food
Creating sensor-based solutions for optimal resource productivity - transforming how we obtain, use, and reuse resources Collection Recycling Food Horizon Publicly listed on Oslo Stock Exchange (OSEBX: TOM) 5
Slide 6: Collection Business update
Market tests have started for Collection Business update TOMRA R2 • Strong sales in all regions and continued sales into the recently launched markets Hungary, Romania, and Ireland. • Good throughput volume development in Victoria, which went live in November 2023. • Early success with new product p
Slide 7: Recycling Business update
Recycling Business update • Revenues in line with expected lower backlog conversion ratio, driven by a higher share of large projects with longer lead times. • Softer market sentiment continues in European plastics recycling. • First sales of AUTOSORT PULSE machines with dynamic LIBS technology (las
Slide 8: EU PPWR
Key provisions which are relevant for TOMRA EU PPWR Recycled content (plastics) Deposit return systems Latest update On 24 April 2024, the EU Parliament adopted the Packaging By 1 Jan 2029, requirement to By 2030, 10% of beverage set up DRS to ensure >90% containers placed on the and Packaging Waste
Slide 9: Food Business update
Food Business update • Low revenues in 1Q due to seasonal variation in combination with a soft order intake in the third quarter 2023. • Weak market sentiment continues in fresh food categories while the potato category continues to perform well. • Cost reduction and restructuring program is progres
Slide 10: TOMRA Horizon
TOMRA Feedstock TOMRA Textiles Closing the gap in plastic recycling Closing the loop on textiles TOMRA Horizon Feedstock presentation TOMRA Reuse Systems for reusable packaging
Slide 11: More plastics in Europe need to be recycled
More plastics in Europe need to be recycled Too little plastic waste Too little recycled plastics is being recycled is used in new products Post-consumer plastics waste treatment in Europe Source of plastics converted into new plastic products in Europe Recycled plastics Landfill Recycling 13% 24% 2
Slide 12: Only half of post-consumer plastics waste is separately collected and sorted for recycling
Only half of post-consumer plastics waste is separately collected and sorted for recycling Post-consumer plastics waste value chain in Europe Illustrative and simplified 16 million tons p.a. 8 million tons p.a. Landfill Mixed waste collection 15 million tons p.a. Incineration Plastic Product Consump
Slide 13: A new advanced sorting step in the value chain can enable circularity
A new advanced sorting step in the value chain can enable circularity of millions of tons of plastic waste Leveraging TOMRA Post-consumer plastics waste value chain in Europe technology and expertise Illustrative and simplified 16 million tons p.a. <8 million tons p.a. Landfill Mixed waste Sorted an
Slide 14: Supporting drivers across the value chain for circular plastics
Supporting drivers across the value chain for circular plastics Regulatory push for more Industry committing to GHG Chemical recycling capacity is plastics recycling emission reduction increasing Creating supply and demand for Creating demand for recycled plastics Creating demand for recyclates recy
Slide 15: TOMRA is investing into two advanced feedstock sorting plants
Germany TOMRA • 100% TOMRA owned Long-term offtake is investing into • EUR ~ 50-60 million agreements signed with two advanced • Capacity ~ 80.000 tons p.a. industry leaders • Output: >10 different polymer fractions Feedstock • Operational end of 2025 est. TOMRA will provide stable supply of high-qu
Slide 16: TOMRA Feedstock offers an attractive alternative business model
Incoming waste is Sorting and recovery TOMRA Feedstock offers an attractive alternative typically subject to 70-80 % business model for long-term value creation EUR 30-60 / ton yield gate fee Output Illustrative cash flow profile for a large-scale greenfield plant Payback period 8-15 Investment peri
Slide 17: Financials and outlook
Financials and outlook
Slide 18: Group P&L Highlights
Group P&L Highlights Revenues [NOK millions] 3 322 3 239 2 501 1st Quarter 2 302 2 291 Amounts in NOK million 2024 2023 2023 Adj* Revenues 3,322 3,239 3,316 1Q20 1Q21 1Q22 1Q23 1Q24 Collection 2,153 1,828 1,871 Gross margin [% of Revenues] Recycling 529 615 631 42% 42% 40% 40% 40% Food 688 794 811 G
Slide 19: Collection P&L Highlights
Revenues [NOK millions] 2 153 Collection P&L Highlights 1 364 1 393 1 828 1 168 1st Quarter 1Q20 1Q21 1Q22 1Q23 1Q24 Amounts in NOK million 2024 2023 2023 Adj* Revenues 2,153 1,828 1,871 Gross margin [% of Revenues] Northern Europe 276 268 40% 42% 40% Europe (ex Northern) 1,108 872 39% 38% North Ame
Slide 20: Recycling P&L Highlights
Revenues [NOK millions] 615 Recycling P&L Highlights 529 485 489 318 1Q20 1Q21 1Q22 1Q23 1Q24 1st Quarter Gross margin [NOK millions] Amounts in NOK million 2024 2023 2023 Adj* 51% 50% 49% 51% 48% Revenues 529 615 631 Europe 244 325 1Q20 1Q21 1Q22 1Q23 1Q24 Americas 169 156 EBITA [NOK millions] Asia
Slide 21: Food P&L Highlights
Revenues Food P&L Highlights [NOK millions] 794 688 649 618 1st Quarter 609 Amounts in NOK million 2024 2023 2023 Adj* 1Q20 1Q21 1Q22 1Q23 1Q24 Revenues 688 794 811 Gross margin [NOK millions] Europe 185 223 40% 40% 37% 37% Americas 324 418 36% Asia 103 77 1Q20 1Q21 1Q22 1Q23 1Q24 Rest of the world
Slide 22: Balance sheet and cash flow
Cash flow from operations, YTD Balance sheet and cash flow [NOK millions] 2,000 31 Mar 31 December 1,500 Amounts in NOK million 2024 2023 2023 1,000 ASSETS 17,272 14,777 16,513 500 Intangible non-current assets 4,723 4,400 4,570 Tangible non-current assets 3,534 2,838 3,212 0 1/1 1Q 2Q 3Q 4Q Financi
Slide 23: Financial position
Financial position Debt maturity profile Current funding sources • Weighted average debt maturity of 1.9 years • TOMRA has unused credit lines of approx. 444 MNOK • Interest-bearing bonds are swapped to EUR and is exposed to • Senior unsecured bonds (no financial covenants) of 1,600 MNOK EUR/NOK exc
Slide 24: Currency risk and hedging policy
Currency risk and hedging policy Measured against NOK 115 Change of presentation currency in 2Q 2024 110 EUR USD As of the second quarter 2024, TOMRA will change 105 its presentation currency and report in EUR. This will better reflect the underlying performance in the 100 business and reduce curren
Slide 25: Outlook
• High activity related to new and expanding markets. Collection . • Quarterly performance will be dependent upon timing of new initiatives. • Currently softer market sentiment leading to slower short-term growth. • Demand for recycled materials is expected to create attractive growth opportunities.
Slide 26: TOMRA Capital Markets Day 2024
September 5th, 2024 Alicante, Spain Registrations will TOMRA open on 29 April, 10:00am Capital Markets Day More information on the IR section 2024 Join us for a for full day of TOMRA.com to gain valuable insights into TOMRA's strategy Watch insightful Experience TOMRA’s presentations and engage solu
Slide 27: 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 28: www.tomra.com
www.tomra.com 28