Tomra Systems Asa · OSL:TOM
Tomra Systems Asa — Q4 2023 Earnings Presentation
24 slides from Tomra Systems Asa's earnings presentation, Feb 15, 2024
Slide 1: 4th quarter 2023 results announcement
4th quarter 2023 results announcement Click to enter TOMRA Systems name ASA Place 15 February 2023 dd.mm.yy © TOMRA
Slide 2: Quarterly highlights
Quarterly highlights
Slide 3: Financial highlights
Revenues • Total revenue of 4,123 MNOK (3,477 MNOK in 4Q 2022). Adjusted for currency, revenues were: — Up 10% for TOMRA Group — Up 26% in Collection — Up 18% in Recycling Financial — Down 20% in Food • highlights Gross margin Gross margin improvement to 44% – (42% in 4Q 2022). Highest since 2Q 2021
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: Collection Recycling Food
Creating sensor-based solutions for optimal resource productivity - transforming how we obtain, use, and reuse resources Collection Recycling Food Click to enter name Place dd.mm.yy Publicly listed on Oslo Stock Exchange (OSEBX: TOM)
Slide 6: Collection Business update
New markets that have implemented DRS Collection 30 Sep 2023 – 1 February 2024 Victoria – 1 November 2023 Romania – 30 November 2023 Business update Hungary – 1 January 2024 Ireland – 1 February 2024 • Good performance in all regions – both existing and new markets. • Strong sales in Hungary which w
Slide 7: Recycling Business update
Continued revenue growth Recycling up 18% (currency adj.) compared with 4Q 2022 Business update NOK millions 877 681 631 • Strong revenue growth in Europe and the Americas, especially within waste sorting 413 438 • Softer market sentiment has slowed down growth in order intake • 25% investment in co
Slide 8: Food Business update
Decline in revenues down 20% (currency adj.) compared with 4Q 2022 Food NOK millions 891 878 938 1 103 938 Business update 4Q19 4Q20 4Q21 4Q22 4Q23 • Weak market sentiment continues in fresh food. Processed food continues to perform well, driven by potatoes. • Good progress on cost reduction program
Slide 9: Develop adjacent business through TOMRA Horizon
Develop adjacent business through TOMRA’s strategy is to TOMRA Horizon We explore and scale up new adjacent business opportunities and alternative business models that leverage our technology and decades of know-how to ➢ accelerate growth ➢ diversify our business ➢ generate steadily growing revenues
Slide 10: The Rotake system
BUY CONSUME takeaway from at home/in office/on restaurant/café The Rotake the go system TOMRA Reuse is developing a full circular value chain and an open managed system to enable reusable takeaway packaging with collection technology at the core SANITIZE sort, quality check and RETURN at ship back t
Slide 11: In January 2024, we launched the first ever Rotake system in Aarhus
Another 29 20,000 50,000 machines cups at launch Being delivered in February Over 40 cafés and eateries In January 2024, we participating launched the first ever Users pay TOMRA investing Rotake system in Aarhus 5DKK deposit which is refunded 15 million NOK upon return to RVM in Aarhus pilot 1.5DKK
Slide 12: Reuse enabled by technology
Serialized packaging for system integrity and transparency Reuse enabled by technology Advanced digital backbone for user simplicity Outbound Café/Restaurant Logistics Delivery Automated collection points for user Sanitization Warehouse Collection Point 12 Inbound convenience, scalability and seamle
Slide 13: Reuse addresses the growing problem from increased waste and GHG emissions
Reuse addresses the growing problem from increased waste and GHG emissions stemming from single-use packaging In Europe alone, it is consumed …creating substantial market …relying on key drivers up to ~25bn1 in takeaway opportunities for players like materializing to ensure system containers each ye
Slide 14: Financials and outlook
Financials and outlook
Slide 15: Group P&L Highlights
Revenues [NOK millions] 4 123 Group P&L Highlights 2 569 2 742 3 050 3 477 4th Quarter Full Year Amounts in NOK million 2023 2022 2022 Adj* 2023 2022 2022 Adj* 4Q19 4Q20 4Q21 4Q22 4Q23 Revenues 4,123 3,477 3,753 14,756 12,188 13,346 Gross margin Collection 2,306 1,693 1,829 7,981 6,192 6,780 [% of R
Slide 16: Collection P&L Highlights
Revenues [NOK millions] 2 306 Collection P&L Highlights 1 265 1 426 1 481 1 693 4th Quarter Full Year Amounts in NOK million 2023 2022 2022 Adj* 2023 2022 2022 Adj* 4Q19 4Q20 4Q21 4Q22 4Q23 Revenues 2,306 1,693 1,829 7,981 6,192 6,780 Gross margin [% of Revenues] Northern Europe 294 227 1,124 927 Eu
Slide 17: Recycling P&L Highlights
Revenues [NOK millions] 877 631 681 Recycling P&L Highlights 413 438 4Q19 4Q20 4Q21 4Q22 4Q23 4th Quarter Full Year Gross margin Amounts in NOK million 2023 2022 2022 Adj* 2023 2022 2022 Adj* [NOK millions] 54% 54% 51% 52% Revenues 877 681 747 3,105 2,376 2,632 50% Europe 535 384 1,650 1,432 4Q19 4Q
Slide 18: Food P&L Highlights
Revenues Food P&L Highlights [NOK millions] 1 103 938 891 878 938 4th Quarter Full Year Amounts in NOK million 2023 2022 2022 Adj* 2023 2022 2022 Adj* 4Q19 4Q20 4Q21 4Q22 4Q23 Revenues 938 1,103 1,178 3,668 3,620 3,934 Gross margin [NOK millions] Europe 216 316 1,055 1,033 44% 44% 45% 43% 42% Americ
Slide 19: Balance sheet and cash flow
Cash flow from operations, YTD Balance sheet and cash flow [NOK millions] 2,000 1,500 31 Dec 31 December 1,000 Amounts in NOK million 2023 2022 2022 500 ASSETS 16,513 13,932 13,932 Intangible non-current assets 4,570 4,132 4,132 0 1/1 1Q 2Q 3Q 4Q Tangible non-current assets 3,212 2,671 2,671 Range 2
Slide 20: Financial position
Financial position Debt maturity profile Current funding sources • Weighted average debt maturity of 2.2 years • TOMRA has unused credit lines of approx. 573 MNOK • Interest-bearing bonds are swapped to EUR and is exposed to EUR/NOK exchange • Senior unsecured bonds (no financial covenants) of 1 600
Slide 21: Currency risk and hedging policy
Currency risk and hedging policy Measured against NOK 120 10% change in NOK towards other currencies will impact: 115 Revenues Expenses EBITA 110 EUR EUR 5.0% 5.0% 5.0% 105 100 USD 3.0% 2.5% 6.0% 95 USD OTHER1 2.0% 2.0% 2.0% 90 4Q22 1Q23 4Q23 ALL 10.0% 9.5% 13.0% 2Q23 3Q23 85 sep. 22 des. 22Average
Slide 22: Outlook
• High activity related to new and expanding markets Collection • Quarterly performance will be dependent upon timing of new initiatives Outlook • Currently softer market sentiment leading to slower short-term growth Recycling • Demand for recycled materials is expected to create attractive growth o
Slide 23: 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 24: www.tomra.com
www.tomra.com 24