Tomra Systems Asa · OSL:TOM

Tomra Systems Asa — Q2 2017 Earnings Presentation

20 slides from Tomra Systems Asa's earnings presentation, Jul 19, 2017

1. Slide 1: 2nd Quarter 2017 Results Announcement

   ND 2 QUARTER 2017 RESULTS ANNOUNCEMENT TOMRA SYSTEMS ASA 2nd Quarter Results 19.07.2017

2. Slide 2: Highlights from the Quarter

   HIGHLIGHTS FROM THE QUARTER • Revenues of 1,972 MNOK (1,769 MNOK in second quarter 2016) – up 11% Adjusted for currency and acquisitions, revenues were: Revenues - Down 4% for TOMRA Group - Down 12% in TOMRA Collection Solutions - Up 8% in TOMRA Sorting Solutions • Gross margin 42%, down from 43% in

3. Slide 3: Currency

   CURRENCY +3.2%* +0.5%* Limited impact from currencies in 2Q17 vs 2Q16 2Q16 3Q16 4Q16 1Q17 2Q17 *Average rate 2Q17 vs 2Q16 Revenues and expenses per currency; NOTE: Rounded figures EUR* USD NOK NZD OTHER TOTAL Revenues 45 % 40 % 0% 0% 15 % 100 % Expenses 45 % 30 % 5% 5% 15 % 100 % EBITA 45 % 90 % - 2

4. Slide 4: Financial Highlights: P&L Statement

   FINANCIAL HIGHLIGHTS P&L STATEMENT 2nd Quarter 1st Half Amounts in NOK million 2017 2016 16 Adj* 2017 2016 16 Adj* Revenues 1,972 1,769 1,799 3,536 3,129 3,112 • Collection Solutions 975 1,089 1,105 1,852 1,958 1,943 • Sorting Solutions 997 680 694 1,684 1,171 1,169 Gross contribution 834 758 769 1,

5. Slide 5: Financial Highlights: Balance Sheet, Cash Flow and Capital Structure

   FINANCIAL HIGHLIGHTS BALANCE SHEET, CASH FLOW AND CAPITAL STRUCTURE 30 June 30 June 31 Dec Amounts in NOK million 2017 2016 2016 ASSETS 8,260 7,355 7,115 • Intangible non-current assets 3,364 2,810 2,750 • Tangible non-current assets 839 793 801 • Financial non-current assets 362 318 342 • Inventory

6. Slide 6: TOMRA Collection Solutions

   TOMRA COLLECTION SOLUTIONS 6

7. Slide 7: Highlights Collection Solutions

   HIGHLIGHTS COLLECTION SOLUTIONS • Revenues of 975 MNOK, down from 1,089 MNOK in second quarter 2016 - Revenues down 12% in local currencies • Gross margin was 42% in the period - Unchanged from second quarter 2016 Overall • Operating expenses of 220 MNOK - Down 2% currency adjusted • EBITA decreased

8. Slide 8: New South Wales CDS: An Update

   NEW SOUTH WALES CDS: AN UPDATE NSW Scheme Commencement date is set to December 1st • Scheme goal: Reduce littering by 40% by 2020 • Beverage suppliers (incl. own labels) will finance the scheme • The State of New South Wales is divided into 7 zones • Given the short mobilization phase prior to Schem

9. Slide 9: Collection Solutions Financials

   COLLECTION SOLUTIONS FINANCIALS 2nd Quarter 1st Half Amounts in NOK million 2017 2016 16 Adj* 2017 2016 16 Adj* Revenues 975 1,089 1,105 1,852 1,958 1,943 • Nordic 149 186 288 344 • Europe (ex Nordic) 411 488 794 862 • North America 404 390 746 712 • Rest of the world 11 25 24 40 Gross contribution

10. Slide 10: Germany Replacement Update: TOMRA Machines Installed in the German Market

    GERMANY REPLACEMENT UPDATE TOMRA MACHINES INSTALLED IN THE GERMAN MARKET 2700 – 3700 MACHINES PER YEAR 1h2017 10

11. Slide 11: TOMRA Sorting Solutions

    FT 1 a ; ( ‘ salaee f TOMRA SORTING SOLUTIONS > it / ; ) } i

12. Slide 12: Highlights Sorting Solutions

    HIGHLIGHTS SORTING SOLUTIONS • Revenues equaled 997 MNOK in second quarter 2017, up from 680 MNOK in second quarter 2016 Revenues — Revenues up 8% in local currencies (organic) • Gross margin 42% Gross margin — Down due to consolidation of Compac EBITA • EBITA of 131 MNOK (92 MNOK in second quarter

13. Slide 13: Business Stream Update

    BUSINESS STREAM UPDATE FOOD • Overall good momentum • Revenues in 2Q17 up from 2Q16 • Order intake up quarter over quarter RECYCLING • Momentum increasing, after a period of lower activity • Revenues in 2Q17 up from 2Q16 • Order intake up quarter over quarter MINING • Marked still depressed in most

14. Slide 14: Compac Transaction

    COMPAC TRANSACTION • TOMRA purchased Compac for an initial purchase price of NZD 70 million, free of cash and interest bearing debt and with normalized working capital • In addition, the vendors were entitled to an Earn-Out based upon the financial performance for the period 1 July 2016 to 30 June 2

15. Slide 15: Sorting Solutions Financials

    SORTING SOLUTIONS FINANCIALS 2nd Quarter 1st Half Amounts in NOK million 2017 2016 16 Adj* 2017 2016 16 Adj* Revenues 997 680 694 1,684 1,171 1,169 • Europe 329 303 536 508 • North America 434 247 686 404 • South America 33 13 58 17 • Asia 92 67 200 157 • Oceania 82 34 139 55 • Africa 27 16 65 30 Gr

16. Slide 16: Backlog Development and Momentum

    BACKLOG DEVELOPMENT AND MOMENTUM TOMRA Sorting Solutions (TSS) without Compac: • Delivered all time high order intake of 752 MNOK in the quarter, compared to 667 MNOK same quarter last year • Revenues came in at 753 MNOK (up from 680 MNOK in 2Q16) • Order backlog of 873 MNOK, up from 816 MNOK at the

17. Slide 17: Outlook

    WEE SSE " OUTLOOK

18. Slide 18: Outlook

    OUTLOOK • The replacement demand in Germany is assumed Collection to continue during 2017 Solutions • Replacement in Sweden has now finished Sorting • Currently good momentum in Food Solutions • Improved momentum in Recycling • Reporting in NOK and with some NOK cost base, Currency TOMRA will in gen

19. Slide 19: Q&A

    Q&A 19

20. Slide 20: 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

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