Slide 1: 3rd Quarter 2018 Results Announcement
RD 3 QUARTER 2018 RESULTS ANNOUNCEMENT TOMRA SYSTEMS ASA 3rd Quarter Results 23.10.2018
Slide 2: Highlights from the Quarter
HIGHLIGHTS FROM THE QUARTER • Revenues of 2,247 MNOK (1,855 MNOK in third quarter 2017) – up 21% Adjusted for currency and acquisitions, revenues were: Revenues - Up 14% for TOMRA Group - Up 9% in TOMRA Collection Solutions - Up 20% in TOMRA Sorting Solutions • Gross margin 44%, up from 43% in third
Slide 3: Currency
CURRENCY Overall limited +2.5%* currency effect, still: TCS: Positive impact from both stronger EUR +3.5%* and USD vs NOK. TSS: Positive impact by weaker NOK and stronger USD vs EUR. 3Q17 4Q17 1Q18 2Q18 3Q18 *Average rate 3Q18 vs 3Q17 Revenues and expenses per currency: NOTE: Rounded figures EUR* US
Slide 4: Financial Highlights: P&L Statement
FINANCIAL HIGHLIGHTS P&L STATEMENT 3rd Quarter YTD 9 months Amounts in NOK million 2018 2017 17 Adj* 2018 2017 17 Adj* Revenues 2,247 1,855 1,896 6,129 5,391 5,404 • Collection Solutions 1,135 1,024 1,044 3,124 2,876 2,897 • Sorting Solutions 1,112 831 852 3,005 2,515 2,507 Gross contribution 995 79
Slide 5: Financial Highlights: Balance Sheet, Cash Flow and Capital Structure
FINANCIAL HIGHLIGHTS BALANCE SHEET, CASH FLOW AND CAPITAL STRUCTURE 30 Sept 30 Sept 31 Dec Amounts in NOK million 2018 2017 2017 ASSETS 9,117 8,214 8,437 • Intangible non-current assets 3,653 3,314 3,412 • Tangible non-current assets 1,129 848 998 • Financial non-current assets 327 307 349 • Invento
Slide 6: TOMRA Collection Solutions
TOMRA COLLECTION SOLUTIONS
Slide 7: Highlights Collection Solutions
HIGHLIGHTS COLLECTION SOLUTIONS • Revenues of 1,135 MNOK, up from 1,024 MNOK in third quarter 2017 - Revenues up 9% in local currencies, driven mainly by New South Wales’ volumes • Gross margin was 43% in the period - Unchanged from third quarter 2017 Overall • Operating expenses of 240 MNOK, up fro
Slide 8: Queensland Deposit Scheme: Live from 1 November 2018
QUEENSLAND DEPOSIT SCHEME: LIVE FROM 1 NOVEMBER 2018 QLD Scheme: The Beverage Industry Governs the Scheme through Producer Responsibility Organization CoEx Beverage • TOMRA and Cleanaway have signed Producers standalone contracts directly with CoEx • TOMRA will run 10 modern depots in the Container
Slide 9: Potential New Deposit Markets
POTENTIAL NEW DEPOSIT MARKETS Western Australia Scotland England • Beverage containers accounts • September 2017, First Minister • March 2018, UK Environment for 35% of all litter in WA Nicola Sturgeon announced a Secretary Michael Gove • Deposit value: 0.1 AUD (150mL deposit return scheme for drink
Slide 10: Collection Solutions Financials
COLLECTION SOLUTIONS FINANCIALS 3rd Quarter YTD 9 months Amounts in NOK million 2018 2017 17 Adj* 2018 2017 17 Adj* Revenues 1,135 1,024 1,044 3,124 2,876 2,897 • Northern Europe 147 146 457 434 • Europe (ex Northern) 433 470 1,245 1,264 • North America 467 397 1,202 1,143 • Rest of the world 88 11
Slide 11: TOMRA Sorting Solutions
TOMRA SORTING SOLUTIONS
Slide 12: Highlights Sorting Solutions
HIGHLIGHTS SORTING SOLUTIONS • Revenues equaled 1,112 MNOK in third quarter 2018, up from 831 MNOK in third quarter 2017 Revenues – Adjusted for currency and acquisitions, revenues were up 20% – Includes BBC revenues of 93 MNOK in third quarter 2018 • Gross margin 46% Gross — Up from 43% last year,
Slide 13: Business Stream Update
BUSINESS STREAM UPDATE FOOD • Stable revenues in 3Q18 compared to 3Q17 • Order intake slightly down in the quarter due to timing, but up year-to date • BBC consolidated from 1 March 2018, ending third quarter with a backlog of 80 MNOK RECYCLING • Revenues in 3Q18 significantly up from 3Q17 • Order i
Slide 14: Sorting Solutions Financials
SORTING SOLUTIONS FINANCIALS 3rd Quarter YTD 9 months Amounts in NOK million 2018 2017 17 Adj* 2018 2017 17 Adj* Revenues 1,112 831 852 3,005 2,515 2,507 • Europe 423 344 1,107 880 • North America 336 242 1,024 928 • South America 74 31 142 89 • Asia 136 91 339 291 • Oceania 97 73 254 212 • Africa 4
Slide 15: 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 1,112 MNOK, up from 831 MNOK last year • Order intake of 1,105 MNOK in the quarter, compared to 964 MNOK last year • Despite all time high revenues in the quarter, a stron
Slide 16: Outlook
OUTLOOK 16
Slide 17: Outlook
OUTLOOK • Queensland ramp-up ongoing - go live 1st of November 2018 Collection Solutions • Increased operating expenses due to preparation for new markets Sorting • Currently good momentum in all business streams Solutions • Reporting in NOK and with some NOK cost base, TOMRA will in general benefit
Slide 18: Group Financial Targets 2018-2023 – Our Ambitions Affirmed
GROUP FINANCIAL TARGETS 2018-2023 – OUR AMBITIONS AFFIRMED Dividend Revenue payout growth EBITA- Capital margin Structure ROCE new 40-60% projects >10% of EPS Maintain investment >18% grade >20% 18
Slide 19: Q&A
Q&A
Slide 20: Copyright and Disclaimer
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