TOMRA SYSTEMS ASA: TOMRA Q2:ANOTHER SOLID QUARTER WITH CONTINUED GOOD MOMENTUM

07:30

The second quarter 2018 was a robust quarter, reflecting high business
activities for TOMRA Collection Solutions and strong growth in order
intake for TOMRA Sorting Solutions.

Revenues in the second quarter 2018 amounted to 2,128 MNOK up from
1,972 MNOK in second quarter last year, representing a growth of 8%.
Organic, currency adjusted revenues were up 7% for the group, 10% for
TOMRA Collection Solutions and 4% for TOMRA Sorting Solutions.

Gross margin was 43% in the quarter, a slight increase from 42% in
second quarter 2017, resulting from stable margins in TOMRA
Collection Solutions and improved margins in TOMRA Sorting Solutions.

Operating expenses ended at 609 MNOK in second quarter, up from 528
MNOK in second quarter last year. The increase was related to higher
general business activity, ramp-up costs in New South Wales
(Australia) and acquisition of BBC (BBC consolidated into group
financials from March 2018).

EBITA was 307 MNOK in second quarter 2018 versus 306 MNOK in second
quarter 2017.

Cash flow from operations in second quarter 2018 equaled 127 MNOK,
compared to 170 MNOK in second quarter 2017.

The discussion around marine litter and plastic pollution in general
has made its way onto the political agenda. This stimulates a search
for local waste solutions. The global discussions are getting more
concrete and we see that processes are accelerating. The political
consensus to promote the transition towards a greener economy often
considers preventive solutions like Container Deposit Schemes.
Chinas ban on imported waste also creates new business opportunities
within recycling. We are therefore investing to cater for the growth
and expects to see continued good momentum in both business
segments, says Stefan Ranstrand, TOMRA President and CEO.

Collection Solutions: Positive signals from Europe promoting deposit
schemes

Revenues in the business area equaled 1,055 MNOK in the second
quarter, up from 975 MNOK in second quarter last year. After
adjustment for currency changes, revenues were up 10%.

Gross margin was 42%, unchanged from last year. Operating expenses
amounted to 259 MNOK, up from 220 MNOK last year, mainly due to
ramp-up in New South Wales and higher activity. EBITA was 182 MNOK,
down from 191 MNOK second quarter last year.

On 28 May 2018, the EU Commission released a draft for a directive on
single use plastic products, which included a 90% recycling target on
plastic bottles by 2025. This sends positive indications while the
outcomes of the legislative processes are yet to be determined.

Sorting Solutions: Strong growth in order intake across all business
streams

Order intake amounted to 1,144 MNOK, up 20% from the same period last
year. This led to all time high order backlog of 1,585 MNOK, up from
1,093 MNOK at the end of second quarter 2017.

Revenues equaled 1,073 MNOK in second quarter 2018, up 4% in local
currencies, adjusted for acquisitions (BBC). Gross margin was 44%, up
from 42% same period last year due to improved margins in all
business streams. Organic, currency adjusted operating expenses were
up 8%.

EBITA increased from 131 MNOK in second quarter 2017 to 145 MNOK in
second quarter 2018, influenced by higher volumes and positive
contribution from BBC.

All business streams report improved performance compared to same
period last year. Revenues in the Food business stream were stable
while the order intake was up. Recycling enjoyed solid improvement in
both revenues and order intake. Mining also had improved results,
coming from a lower level.

Asker, 19 July 2018

TOMRA Systems ASA


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