Slide 1: 3rd Quarter 2016 Results Announcement
RD 3 QUARTER 2016 RESULTS ANNOUNCEMENT TOMRA SYSTEMS ASA 3rd Quarter Results 21.10.2016
Slide 2: Highlights from the Quarter
HIGHLIGHTS FROM THE QUARTER • Revenues of 1,715 MNOK (1,748 MNOK in third quarter 2015) Currency adjusted revenues were: Revenues - Down 4% for TOMRA Group - Down 5% in TOMRA Collection Solutions - Down 2% in TOMRA Sorting Solutions • Gross margin 43%, up from 41% in third quarter 2015 (currency adj
Slide 3: Currency
CURRENCY +1.6%* Limited impact from currencies in 3Q16 vs 3Q15 +1.2%* -4.2%* 3Q15 4Q15 1Q16 2Q16 3Q16 * Average rate 2Q16 vs average rate 2Q15 Revenues and expenses per currency; NOTE: Rounded figures EUR** USD NOK SEK OTHER TOTAL Revenues 45 % 30 % 5% 10 % 10 % 100 % Expenses 45 % 25 % 10 % 10 % 10
Slide 4: Financial Highlights: P&L Statement
FINANCIAL HIGHLIGHTS P&L STATEMENT 3rd Quarter YTD Amounts in NOK million 2016 2015 15 Adj* 2016 2015 15 Adj* Revenues 1,715 1,748 1,779 4,844 4,327 4,575 • Collection Solutions 1,079 1,110 1,129 3,037 2,664 2,811 • Sorting Solutions 636 638 650 1,807 1,663 1,764 Gross contribution 739 717 731 2,071
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 2016 2015 2015 ASSETS 7,206 7,318 7,317 • Intangible non-current assets 2,745 2,816 2,891 • Tangible non-current assets 755 721 837 • Financial non-current assets 322 309 316 • Inventory
Slide 6: TOMRA Collection Solutions
TOMRA COLLECTION SOLUTIONS 6
Slide 7: Highlights Collection Solutions
HIGHLIGHTS COLLECTION SOLUTIONS • Revenues of 1,079 MNOK, down from 1,110 MNOK in third quarter 2015 - Revenues down 5% in local currencies • Gross margin was 42% in the period - Up from 39% last year, due to product mix and one-offs Overall • Operating expenses of 194 MNOK - Up 4% currency adjusted
Slide 8: Collection Solutions Financials
COLLECTION SOLUTIONS FINANCIALS 3rd Quarter YTD Amounts in NOK million 2016 2015 15 Adj* 2016 2015 15 Adj* Revenues 1,079 1,110 1,129 3,037 2,664 2,811 • Nordic 164 128 508 374 • Europe (ex Nordic) 493 563 1,355 1,193 • North America 408 385 1,120 1,040 • Rest of the world 14 34 54 57 Gross contribu
Slide 9: TOMRA Machines Installed in the German Market
TOMRA MACHINES INSTALLED IN THE GERMAN MARKET GERMANY REPLACEMENT UPDATE 9 months 2016 PER YEAR 2700 – 3700 MACHINES 9
Slide 10: TOMRA Sorting Solutions
TOMRA SORTING SOLUTIONS 10
Slide 11: Highlights Sorting Solutions
HIGHLIGHTS SORTING SOLUTIONS • Revenues equaled 636 MNOK in third quarter 2016, Revenues down from 638 MNOK in third quarter 2015 — Revenues down 2% in local currencies Gross margin • Gross margin stable at 45% EBITA • EBITA of 86 MNOK (88 MNOK in third quarter 2015) • Order intake of 613 MNOK, comp
Slide 12: The New TOMRA 5B: Next Generation Food Sorting Machine
THE NEW TOMRA 5B: NEXT GENERATION FOOD SORTING MACHINE TOMRA 5B • The TOMRA 5B optical belt sorting machine was built on the legacy of the TOMRA Genius sorter which holds a leadership position in the vegetable, potato and fruit processing industries worldwide • User-friendly design, excellent perfor
Slide 13: Business Stream Update
BUSINESS STREAM UPDATE FOOD • Overall good momentum • Revenues in 3Q16 in line with 3Q15 • Order intake up quarter over quarter RECYCLING • Continuing low commodity prices have a somewhat negative effect on performance • Revenues in 3Q16 in line with 3Q15, • Order intake stable quarter over quarter
Slide 14: Sorting Solutions Financials
SORTING SOLUTIONS FINANCIALS 3rd Quarter YTD Amounts in NOK million 2016 2015 15 Adj* 2016 2015 15 Adj* Revenues 636 638 650 1,807 1,663 1,764 • Europe 302 296 810 784 • North America 207 176 611 506 • South America 16 35 33 57 • Asia 89 94 246 234 • Oceania 12 11 67 39 • Africa 10 26 40 43 Gross co
Slide 15: Backlog Development and Momentum
BACKLOG DEVELOPMENT AND MOMENTUM • Order intake of 613 MNOK in the quarter (up from 572 MNOK same quarter last year) • Revenues were 636 MNOK (compared to 638 MNOK in 3Q16 • Order backlog of 793 MNOK, down from 816 MNOK at the end of second quarter 2016 • Estimated backlog conversion ratio in 4Q16:
Slide 16: Expanding Further in Food Sorting
EXPANDING FURTHER IN FOOD SORTING The way forward together • Compac CEO Mike Riley and TOMRA CEO Stefan Ranstrand at the PMA Fresh summit convention in Orlando Florida 14th of October (2 days after announcement) • Positive initial feedback from the client universe and our combined workforce * For mo
Slide 17: TOMRA: The Broadest Footprint in Food Sorting
TOMRA: THE BROADEST FOOTPRINT IN FOOD SORTING Free fall Belt Lane SK NDF PFV Fresh Rice, Seeds & Nuts & Processed Fruit, Vegetables and Potatoes Kernels Dried Fruit Fruits & Veg Circa 40%* of annual global Circa 30%* of annual global Circa 25%* of annual sorter sales revenue sorter sales revenue glo
Slide 18: Outlook and Shareholder Structure
OUTLOOK AND SHAREHOLDER STRUCTURE 18
Slide 19: Outlook
OUTLOOK • The replacement demand in Germany is assumed to Collection continue into 2017, but the replacement in Sweden is Solutions expected to come to an end during fourth quarter 2016 Sorting • Currently good momentum in Food, but low commodity Solutions prices are negatively influencing Recycling
Slide 20: Q&A
Q&A 20
Slide 21: TOMRA Shareholder Structure
TOMRA SHAREHOLDER STRUCTURE Top 10 shareholders as of 30th of September 2016 Shareholders by country 1 Investment AB Latour 38 130 000 25.8% 3% 2 Skandinaviska Enskilda A/C Clients account 10 344 242 7.0% (NOM) 4% 6% 3 Folketrygdfondet 9 529 819 6.4% 5% 36% 4 The Bank of New York BNYM, Stitching Dep
Slide 22: Disclaimer
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