Slide 1: Investor Presentation
Investor Presentation TOMRA Click to Systems ASA enter name 14 July 2023 Place © TOMRA dd.mm.yy
Slide 2: TOMRA at a glance: Collection, Recycling, Food
5000 12.2 BILLION NOK EMPLOYEES REVENUES IN 2022 GLOBALLY 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 3: Leading market position, best-in-class technology
Leading market TOMRA is uniquely 50 years of position positioned along know-how powerful global megatrends Best-in-class Purpose-driven technology employees3
Slide 4: Our vision is to Lead the Resource Revolution
Our vision is to Lead the Resource Revolution It is our belief that businesses have the power and responsibility to help manage our planet’s precious resources – today and tomorrow. 4
Slide 5: TOMRA's transformation journey
TOMRA’s transformation journey mergers and acquisitions 2004 TITECH 2006 Commodas 2011 2012 BEST 2016 Compac TOMRA acquires TITECH, Sale of Californian material TOMRA acquires BEST, leading TOMRA expands into lane the world's leading provider TOMRA acquires Commodas handling business. With the food
Slide 6: We have built a broad business platform
12.2 billion NOK We have built a FOOD broad business platform… RECYCLING e … while keeping a 2.7 billion NOK strong entrepreneurial COLLECTION spirit 2002 2004 2006 2008 2010 2014 2016 2018 2020 2022 Revenues 6
Slide 7: Creating value through three divisions
Creating value through three divisions TOMRA Collection TOMRA Recycling TOMRA Food 2022 Revenue 2022 Revenue 2022 Revenue 51% 19% 30% ~2,600 Customers ~800 Customers ~1,600 Customers Grocery retailers, bottlers, Waste management, material Food growers, packers, Employees deposit scheme coordinators
Slide 8: TOMRA's global presence
Installed base ῀105,000 TOMRA’s global presence EMEA ~75,000 Americas ~22,000 Asia Pacific ~8,000 Collection Recycling Food EMEA ῀63,000 ῀6,300 ῀5,600 Americas ῀14,000 ῀1,400 ῀6,300 Asia Pacific ῀5,000 ῀1,300 ῀1,900 Total ῀82,000 ῀9,000 ῀13,8008
Slide 9: Each year, at least 8 million tons of plastics leak into the ocean
Each year, at least 8 million tons of plastics leak into the ocean. That’s the equivalent of one garbage truck every minute. The New Plastics Economy World Economic Forum (2016) Location: Vacha Dam, Bulgaria
Slide 10: But the tides are shifting
But the tides are shifting. There’s a desire for change… Consumer demand Legislative push for Market pull from large for responsible plastic new plastic waste brand owners and use options strategies companies
Slide 11: Post-consumer plastic packaging is treated linear instead of circular
Today: post-consumer plastic packaging Our ambition is treated linear instead of circular by 2030: Source: Ellen MacArthur Foundation 14% Collected for recycling 40% Recycling of plastics into the same or 98% similar-quality application 2% 8% 4% Virgin material Closed-loop Cascaded Process Dispose r
Slide 12: Our experience and technologically advanced solutions
Our experience and technologically advanced solutions help create circular value chains that benefit business and society. Click to enter name Place dd.mm.yy 12
Slide 13: TOMRA Collection
TOMRA Collection — 13
Slide 14: TOMRA Collection
~6.2 TOMRA Collection billion NOK in revenue Transforming society’s habits to keep valuable resources in a continuous loop of 81,000 use and reuse. ~82,000 machines in operation Collecting 45+ billion containers a year *All the figures are from 2022 Source: TOMRA.com
Slide 15: Over 45 billion drink containers collected in 2022
er | GS | SS aS | i | a | eS | a | oS eS | | oS | eS | a | eS | Over 45 billion drink containers collected in 2022 [eS | eS | oS | eS | SS | oS | oe nts only 3% of all beverage containers This represe
Slide 16: Deposit return systems enable Clean Loop Recycling
Deposit return systems enable Clean Loop Recycling Europe USA Average PET plastic Average beverage beverage container container return return rates. rates. 47% 94% 27% 72% 88% Containers without Containers with Containers without Containers with Containers in high- a deposit a deposit a deposit1 a d
Slide 17: An overview of current deposit markets
An overview of current deposit markets Northwest Territories (2005) Quebec Norway Sweden (1984) (1984) (1999) Yukon (1992) Finland Iceland (1996) (1989) Newfoundland Ontario (1997) Denmark Estonia (2007) (2002) (2005) British Columbia Latvia (1970) (2022) Prince Edwardian Lithuania Netherlands (2016
Slide 18: Upcoming deposit markets
Upcoming deposit markets Quebec: Deposit system to be Hungary: modernized 2023 Deposit system to be implemented 2024 Connecticut: Ireland: Expansion of existing Deposit system to be Romania: deposit system in 2024 implemented in 2024 Deposit system to be implemented 2023 Singapore: Austria: Deposit
Slide 19: High collection rates achieved in two years' time
High collection rates achieved in two years’ time Return rate Deposit value in EUR Return rates in Lithuania 98% 95% 92% 92% 92% 92% Prior to container 34% deposit 66% scheme 43% ~40% End of 74% year 1 0.25 0.25 0.21- 0.31 No deposit No deposit 0.1-0.4 0.09 0.1 0.05 End of year 2 92% *Deposit values
Slide 20: A meaningful deposit value is the strongest driver of results
Return rates compared to purchasing power parity-adjusted deposit values - € (2018) 100% Germany Finland Germany Lithuania Netherlands Michigan Lithuania Iceland A meaningful 90% Finland Sweden Iceland Estonia Iceland Croatia Estonia Denmark Lithuania Denmark deposit value is 80% South Australia Isr
Slide 21: Driving market momentum through global advocacy work
We are driving the market momentum through global advocacy work aiming to achieve best practice deposit systems and generate demand through innovations Collection targets for Targets for recycled content plastic beverage bottles in plastic beverage bottles EUROPE 77% 90% 25% 30% 2025 2029 2025 2030
Slide 22: The four principles of high-performing deposit return systems
The four principles of high-performing deposit return systems PERFORMANCE CONVENIENCE PRODUCER RESPONSIBILITY SYSTEM INTEGRITY A collection target for a The redemption system is Producers manage, finance Trust is built into the broad scope of beverage easy, accessible and fair and invest in the syst
Slide 23: Reinvestment of unredeemed deposits and material revenue
Reinvestment of Profit and loss overview of Norway’s unredeemed deposits Central System Administrator (2019) and material revenue within the system In Norway over 80% of the system’s costs are covered by unredeemed deposits and material revenue 23
Slide 24: Legislative outlook supports new and expanded Deposit Return Scheme markets
Canada provinces Legislative outlook supports new and expanded Deposit US states Expansion and Singapore as modernization Return Scheme Single Use launchpad in South-East Asia (DRS) markets Plastic Directive towards 2030 Australia - States Potentially first one-way DRS in First full DRS Latin Americ
Slide 25: Europe and the Single Use Plastic Directive
All EU member states to collect 90% of plastic beverage bottles by 2029 Europe and the Single Use Plastic Directive (SUPD) will be the main driver of new deposit markets towards 2030 Existing DRS markets* EU countries 25 * In addition, some markets have refillable deposit systems such as: Austria, B
Slide 26: Strong local presence in existing and upcoming European deposit markets
Establishing local TOMRA entities and building local presence and partnerships early is key in our go to market strategy Strong local presence in existing and upcoming European deposit markets Existing DRS markets* EU countries 26 * In addition, some markets have refillable deposit systems such as:
Slide 27: Our offering
Our offering Reverse vending Reverse vending Reverse vending Digital products Equipment for machines centres machine kiosks and APIs automated depots 27
Slide 28: Customer centricity is at the core of our innovation strategy
Customer centricity A smart Efficient A great recycling investment is at the core of our experience operations for for long-term peace of mind innovation strategy benefits Strategic aspiration: Innovate the most attractive solutions and the best customer experience 28
Slide 29: Preferred partner in reverse vending solutions
Preferred partner in reverse vending solutions >80 000 10 000- 80 000 # of installed RVMs TRUSTED PARTNER SERVICE NETWORK 5 000- 10 000 500- 5 000 INNOVATION SOLUTIONS CHAMPION PORTFOLIO <500 1-10 11-20 21-30 31-40 >40 29 Number of RVM markets Source: TOMRA estimates and analysis
Slide 30: Our reverse vending portfolio
PRICE Our reverse vending portfolio Redemption Center Hypermarket Discounter & Supermarket Convenience & Small Store 0.1-0.3 M UBC/year 0.3-1 M UBC/year 1-3 M UBC/year 3-5 M UBC/year 5-15 M UBC/year 15-50 M UBC/year CONTAINER VOLUME Click here for more info
Slide 31: AUKI
AUKI
Slide 32: Business model expertise across deposit systems
Business model expertise across deposit systems Financing Retail Sales & Service model Throughput model Upfront equipment High recurring revenue Revenue Recurring service Location revenues Swift roll-out Proven track record Aligned interests Retailer purchases and takes the TOMRA owns and operates t
Slide 33: Cash flow profiles of the two business models
Cash flow profiles of the two business models Illustrative cash flow profiles per machine Cash flow Higher initial sales Higher recurring revenue Year 0 Time Sales & Service Throughput Upfront CAPEX 33
Slide 34: Advanced digital platform leveraged across stakeholder groups
Advanced digital platform leveraged across stakeholder groups TOMRA Productivity Gain Consumer Engagement API/Data System Integration DIGITAL PLATFORM Retail Productivity Gain 34
Slide 35: Global Supply Chain
Current supply chain with country origin on purchased material China Norway Taiwan Sweden Global Supply Poland Chain Germany Optimize global sourcing and production set-up The goal Support the market demands both on capacity and flexibility Dual sourcing strategy in focus to reduce risk and exposure
Slide 36: Our Big Hairy Audacious Goal
Our Big Hairy Audacious Goal 500 BILLION empty beverage containers handled by TOMRA equipment and collected for clean loop recycling 36 36
Slide 37: TOMRA Recycling
TOMRA Recycling 37
Slide 38: TOMRA Recycling
TOMRA Recycling Transforming resource recovery through advanced waste and metals sorting that turns waste into value. The world generates At least 33% 2.01 billion TOMRA’s smart sorting machines of waste is not managed in an environmentally tons of municipal solid maximize resource safe manner waste
Slide 39: Legislative push and market pull towards a circular economy
There is a legislative push and market pull towards a circular economy Ellen MacArthur Foundation Global Commitment Extended Producer Responsibility policy is a key element, complemented Several strong commitments have been made; however, by quotas, taxes, bans, and mandatory recycled content target
Slide 40: Packaging waste including EPS
Example: Norway Target 2025=50% recycling Target 2030=55% recycling Packaging waste including EPS [Ton] EU member states need to meet PPWD1 targets for plastic recycling Total waste generated Material recycled EU target Material recycled, new measurement point 1 Packaging and Packaging Waste Directi
Slide 41: Strong commitment from the industry to use recycled polymers
Strong commitment from the industry to use recycled polymers Selected global commitments (non-exhaustive) “Our ambition is to use 1 million tons of plastic 1 waste a year in our global chemical plants by 2025” million tons “Produce and market 2 million tons of recycled 2 and renewable based polymers
Slide 42: Sorting is essential for a circular economy
Sorting is essential for a circular economy Waste sorting segment Recycling segment Ore sorting segment Recover materials for recycling from both Upgrade material to pure fractions Recovery and ore sorting source separated and mixed household for high quality recycling to reduce environmental waste
Slide 43: How does sensor-based separation work?
How does sensor-based separation work? Feeding of High-tech sensors to identify objects unsorted material Precise ejection by ultra fast air jets Product specific equipment design often including multiple technologies to maximize sorting efficiency High-speed processing of information (material, sha
Slide 44: A broad sensor-based technology portfolio
A broad sensor-based technology portfolio RECYCLING FOOD ELECTROMAGNETIC SENSOR (EM) Electro-magnetic properties like conductivity and permeability X X LED SPECTOMETRY (LED) Color and spectral properties based on multiple LED light X X EM sources in very high optical resolution LED NEAR-INFRARED SPE
Slide 45: Automation with TOMRA units
Automation with TOMRA units 45
Slide 46: Solutions enable recovery of recyclables from different waste streams
Our solutions enable recovery of recyclables from different waste streams AVL Leipzig, Germany Mixed Waste Sorting Plant IVAR, Norway A modern packaging sorting plant can contain up to 60 NIR sorters Our solutions can also recover valuables from residual waste streams 46 46
Slide 47: Mining needs to make a leap towards a more sustainable future
The essential nature of mining means that the industry needs to make a leap towards a more sustainable future Run of Mine (ROM) Crushing Sensor Based Sorting Waste Product • 15% to 50% of the ROM can be rejected in an early stage of the process (application dependent) • low grade waste rocks don’t n
Slide 48: Our ore sorting solutions enable mining to reduce footprint
Our ore sorting solutions enable the mining industry to reduce their footprint Ore sorting is used to: • Reduce operational footprint by splitting the “good” and the “bad” materials early in the process • Extend the lifetime of a mine • Reclaim valuables for stockpiles 48
Slide 49: Technology and innovations push the boundaries of recycling sorting
Our technology and innovations continue to push the boundaries of the recycling sorting market New segments for automated sorting Increase of automation and performance Capacity growth Recycling sensor-based 7% sorting equipment market Out of scope for TOMRA addressable market: other non-sensor-base
Slide 50: Our solutions close the loop by enabling high quality recycling
Our solutions close the loop by enabling high quality recycling Plastics Wood sorting Textile sorting Alloy sorting We are actively pushing the We are investing into the development of solutions for new segments boundaries of plastics recycling by: • Demonstrating advanced mechanical recycling • Sup
Slide 51: We have two strategic priority areas
We have two strategic priority areas Accelerate growth Provide leading solutions and innovations Increase the recovery Enable high quality closed Utilize cutting edge Deep market expertise of recyclables loop recycling sensor technology and partnership Exploit the power Develop digital of deep learn
Slide 52: Enabling closed loop recycling solutions
Our commitment towards plastic packaging by 2030 We are here to 30% of post-consumer plastic packaging is recycled in a closed-loop enable closed loop recycling solutions - material stream by material stream 52 52
Slide 53: TOMRA Food
TOMRA Food 53
Slide 54: TOMRA Food
TOMRA Food Transforming global food production to maximize food safety and minimize food loss by making sure Every Resource Counts™. By 2050, a global We have ambitions to population of 9.8 billion Currently, 33% of all food produced is will need 70% enable a post-harvest food loss reduction of eith
Slide 55: Robust drivers supporting the market
Robust drivers supporting the market Population growth and rise of the middle class Continued loss and waste of food Shift to automation and digital tools North America, Europe Latin America Asia and Oceania and South Africa Cyclical investments in different categories, regions and seasons 55 Automa
Slide 56: TOMRA Food with a strong value proposition
TOMRA Food with a strong value proposition Why Automate Why TOMRA Know-how Technology Partnerships Food safety Quality Yield increase Expertise to Best-in-class With local improvement transform the sorting and understanding, global food industry grading solutions, know-how and long- and digital insi
Slide 57: We are addressing approximately 60% of the sorting and grading market
Market position and addressable market Global food processing and machinery industry We are addressing Sorting and grading market approximately 60% Out of scope for TOMRA: of the total food • Low-cost and low-tech color sorting • Limited automation markets sorting and grading Addressable market mark
Slide 58: Our Technology
Our Camera Laser Technology… Digital Pulsed LED Spectroscopy X-ray 58
Slide 59: Detecting a wide range of parameters
Foreign Blemishes Toxins Structure Material …are detecting Removal of foreign material in a material Objects with spots or other (small) blemishes Removal of produce contaminated with Removal of soft, molded or rotten food a wide range stream, e.g. insects, glass, metal, wood & are removed aflatoxin
Slide 60: Working principles in Food sorting
Air inspection Belt inspection 1 Working 3 2 2 3 4 1 principles in 5 Food sorting 4 1 Infeed Belt (unsorted) 4 Precise air guns 1 Infeed belt (unsorted) 3 Intelligent finger ejectors 2 Cameras 5 Accept / reject 2 Full width NIR and Color 4 Accept/reject 3 Lasers Vision sensors Chute or Channel sorte
Slide 61: Food technology platforms
Food technology platforms Solutions for fresh and processed produce TOMRA A Product Line TOMRA B Product Line TOMRA C Product Line TOMRA X Product Line Peeling Lines TOMRA 3A Series TOMRA 5A Series TOMRA 5B TOMRA 3C TOMRA 5C TOMRA 5X Peeling Integrated sorting solutions for fresh produce TOMRA S Pro
Slide 62: Leading position globally
Leading position globally Total Food Sorting and Grading Market >3k # of installed machines Addressable Food market Chute 1-3k TOMRA 2022: ˜0.4 EUR billion Lane 0-1k Belt 10-25 25-50 >50 markets markets markets Geographic presence 62 Size of bubble = Estimated revenue from sensor-based sorting and r
Slide 63: Food Categories
Food Categories Potatoes Nuts & Dried Fruit Vegetables Apples Citrus Berries Cherries Fresh Cut Avocados Kiwifruit Grains & Seeds 63
Slide 64: Leading technology
Leading technology Sorting & Artificial Grading Intelligence Data & Service & Analytics Support 64
Slide 65: Some of our customers
Some of our customers Processed Food Fresh Food 65
Slide 66: Corporate strategy and sustainable growth
Corporate strategy and sustainable growth 66
Slide 67: Group financials development
Group financials development Revenues Gross contribution and margin 14,000 5,500 50% 5,000 45% 12,000 4,500 40% 10,000 4,000 35% 3,500 8,000 30% MNOK MNOK 3,000 25% 6,000 2,500 20% 2,000 4,000 1,500 15% 1,000 10% 2,000 500 5% 0 0 0% 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2012 2013 20
Slide 68: Recycling and Food: connected sorters
Recycling and Food Connected Sorters TOMRA Insight Users 01/2018 01/2019 01/2020 01/2021 01/2022 01/2023 68
Slide 69: Accelerate growth in core business and develop adjacent opportunities
Our strategy is to accelerate growth in core business and develop adjacent opportunities 69 69
Slide 70: Ideally positioned to develop adjacent opportunities
Ideally positioned to develop adjacent opportunities TOMRA’s competitive edge, Strong macro trends and market position and technology emerging business models can be applied in areas beyond within circular economy and our current operations resource efficiency 70 70
Slide 71: Positioned to develop adjacent opportunities
Closing the gap in Close the loop on plastic recycling textiles Positioned to develop adjacent opportunities Systems for 71 reusable packaging
Slide 72: 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 73: The gap in plastics recycling
The gap in plastics recycling Majority of plastics are lost today Demand for recycled plastics • In Europe alone, 24 million tons of plastics are GAP • Already a strong demand for recycled plastics will lost to incineration and 14 million tons to landfill increase significantly in the next few years
Slide 74: 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) 74
Slide 75: TOMRA Feedstock Plants: Germany and 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 76: 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 76 Picking up empty packaging and transport to sanitation hub
Slide 77: Collaboration with Aarhus Municipality on takeaway packaging deposit system
Collaboration with Aarhus Municipality in Denmark on a deposit system for takeaway packaging 77 Aarhus Docklands. Credits: Roar Paaske, VisitDenmark.
Slide 78: TOMRA is uniquely positioned along global megatrends
We have set bold ambitions TOMRA is uniquely to double our business in the positioned along next five years global megatrends ➢ Accelerate growth in core ➢ Develop adjacent business 78 78
Slide 79: Our ambitions 2022 – 2027
Our ambitions 2022 – 2027 Revenue EBITA Dividend Capital Net Zero growth margin payout structure Holistic 15% at 40 – 60% Investment sustainability CAGR 18% of EPS grade strategy Click to enter name Place dd.mm.yy 79
Slide 80: Our ambition is to keep an investment grade status
Our ambition is to keep an investment grade status Green Bond Framework Financial Risk Profile A- A Scope Ratings June 2022 Business Risk Profile Investment BBB+ grade 80
Slide 81: TOMRA Green Bond Framework
TOMRA Green Bond Framework Use of proceeds Highlights form Cicero Second Party Opinion ICMA category: Pollution prevention and control “TOMRA’s RVMs and waste sorting machines are well-aligned with circular economy Expenditures related to: Examples of eligible assets: solutions and a low-carbon futu
Slide 82: Our sustainability commitment
Our sustainability commitment Leading the Resource Revolution while becoming a fully circular business and being safe, fair and inclusive
Slide 83: Our 2030 Sustainability Targets
Double the avoided emissions enabled by TOMRA products in use Commitment to Net Zero emissions and setting Science Based Targets (to be externally verified by 2024) 100% renewable electricity >80% reduction in operational transport emissions >90% sustainable materials and components in all new produ
Slide 84: For a sustainable planet for generations to come
For a sustainable planet for generations to come 84 84
Slide 85: We have an obligation to grow
we have an obligation to grow 85 85
Slide 86: 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 87: www.tomra.com
www.tomra.com