Q2 2025 Tomra Systems ASA Earnings Call

As always, CEO Tove Andersen will start today's presentation by giving you the highlights of the quarter, and afterwards, CFO Eva Sagemo will dive deeper into the numbers.

And at the end of the presentation, we will open up for Q&A for participants in the Teams webinar.

Welcome to Tom brass second quarter results. Presentation for 2025, as always CEO. To Anderson will start today's presentation by giving you the highlights of the quarter and afterwards. CFO Eva Sagamore will dive deeper into the numbers.

The Teams webinar link can be found in this morning's Stock Exchange release.

We will conclude today's presentation at around 8.45, but without further ado, I give the word to CEO Tove Andersen. Good morning from me as well, and welcome to our Q2 results presentation. In this quarter, we have seen large variation in the market dynamics between our three divisions. In collection, there has been high activity related to preparation for Poland and Portugal's upcoming deposit-to-return systems, while the quarterly revenue is down compared to the same quarter last year, reflecting the phasing of new deposits. Recycling delivers revenues in line with same quarter last year, but the order intake is weak due to struggling plastic segment and macroeconomic and tariff uncertainty, which is postponing customers investment decision.

And at the end of the presentation, we will open up for Q&A for participants in the team's webinar, the team's webinar link can be found in this morning's Stock Exchange release.

We will conclude today's presentation at around 8:45.

Speaker Change: But without further Ado, I give the word to CEO to V.

Speaker Change: Good morning from me as well. And Welcome to our Q2 results presentation

in this quarter, we have seen large variation in the market, and a mix between our tree divisions.

Speaker Change: In collection, there's been high activity related to preparation for Poland and Portugal's upcoming deposit return systems. While the quarterly revenue is down compared to the same quarter last year, reflecting the facing on new deposit markets.

Truth is a highlight in the quarter, delivering a record quarterly EBITDA, a record order intake and an all-time high order back.

Recycling delivers revenues in line with same quarter last year, but the order intake is weak due to struggling plastic segments and macroeconomic and tariffs on certainty which is possible in any customers investment decisions.

Speaker Change: Third is a highlight in the quarter delivering a record, quarterly aita a record or intake.

We do see encouraging signs of an improved market sentiment and the benefits of the restructuring is visible in our Let me then take you through the different divisions. In collection, the second quarter reflects the facing of new markets. But let me say a few words about the existing markets first. In existing markets, revenues continue to grow at a steady pace. We have been growing 5% in the first half year compared to the first half year last year, which is in line with our strategic ambition. if you then go to Newmarket. We had an intense rollout period in Austria last year, which meant that the market was well prepared at the go live date, which was 1st of January this year.

Speaker Change: And an all-time high or the backlog.

Speaker Change: We do see encouraging signs of an improved Market sentiment and the benefits of the restructuring is visible. In our P9.

Let me then take you through the different divisions.

In collection, the second quarter reflects the facing of new markets.

But let me say a few words about the existing markets first in existing markets revenues, continue to grow at a steady pace.

We have been growing 5% in the first half year compared to the first half year last year, which is in line with our strategic ambitions.

Speaker Change: If you then go to New Markets,

Therefore, activity in Austria has significantly come down, leading to lower revenues in Q2 this year compared to the same quarter last year. In Romania, as also commented in the last quarterly presentation, Installations continue due to high collection rates and sales to independent retailers, but at a slower pace this quarter than in Q1.

Speaker Change: we had an intense roll up period in Austria last year. Which meant that the market was, well, prepared at the go live date, which was first of January this year.

Speaker Change: Therefore activity in Austria. Have significantly can come down leading to lower revenues in Q2 this year compared to the same quarter last year.

in Romania, as also commented that in the last quarterly presentations, uh, installations continue due to high collection rates and sales to Independent retailers,

Speaker Change: but at the slower Pace this quarter than in Cuban,

For second half this year, Poland and Portugal are the key markets. There is high commercial activity in both countries. Some contracts are signed, others are under negotiation. and we expect installations to pick up in the coming half year.

Speaker Change: For second half this year. Poland and Portugal are the key markets.

There is high commercial activity in both countries. Some countries are signed. Others are on the negotiations.

And we expect installations to pick up in the coming half year.

If you then turn to the upcoming deposit market that we have listed here as normal, I will only comment on the changes in this list versus what we presented in the last quarter. First of all, it's good to see that UK is progressing well, and Scotland have then passed its amended deposit return regulation in June to make sure that that is aligned with UK, who is planning to go live in October 2027. Also good to see progress in Spain and May 22nd was the deadline to apply to be the system operator of Spain. We have removed Uruguay from the list as we are still waiting for communication regarding updated goal updates for that country.

Speaker Change: If you then turn to the upcoming deposit Market that we have listed here as normal, uh, I will only comment on the changes in this list versus what we presented in the last quarter.

First of all it's good to see that. UK is progressing. Well, and Scotland have them passed. Its amended deposit return leg regulation in June to make sure that that is aligned with UK, who is planning to go live in October 2027

Speaker Change: Also good to see you progress in Spain. Uh and May 22nd was the deadline to apply to be the system. Operator of Spain.

But we have added Moldova. They announced in June that the government had adopted an implementation framework for a deposit return system and that the system is to be implemented within one year from the approval of the system operator, but no later than January 2020.

We have removed a guy from the list as we are still waiting for communication regarding update, the go live data for that country.

And overall, there is a very good pipeline of growth opportunities for our collection business in the years to come.

Uh, but we have added Moldova, uh, they announced in June that the government had adopted and implementation framework for uh, deposit return system and that the system is to be implemented within 1 year from the approval of the system. Operator, but no later than January 2027 and overall, there is a very good pipeline of growth opportunities for our collection business in,

The years to come.

Then over to recycling. In recycling, we continue to see setbacks within the plastic recycling segment and in North America, which is the reason for the weak order intake in the quarter. We have, and I have talked a lot about the weak European plastic market for many quarters now and we are not seeing an improvement. What has happened in the plastic segment is that we have seen depressed version prices for over two years, as you will see from the graph here. And one reason has been the overcapacity of supply in Asia, leading then to imports of cheap version plastics in Europe.

Then, uh, over to recycling.

In recycling, we continue to see setbacks within the plastic recycling segment and in North America, which is the reasons for the weak order intake in the quarter.

Speaker Change: We have a and I have talked a lot about the weak European plastic market for many quarters now. And we are not seeing an improvement.

And recycled plastic prices have followed suit, which has then put economic pressure on plastics recyclers, and this has again been reinforced by high, high energy. Which means that the business case for plastic recycling in Europe is challenging currently. And there is still yet very few legal requirements to use recycled plastic. However, this year, we have the introduction of the 25% recycled content requirement for plastic bottles in the EU. And as you can also see from the graph, it looks to be supporting them a higher increase in the ARPET price. At the same time, the increased difference in price between recycled and virgin plastic makes it economically rational option for producers to then buy version plastics if they and when they need to optimize margins and they don't have legal targets.

What has happened in the plastic segment, is that we have seen the Pressed version prices for over 2 years, as you will see from the graph here, and 1 reason has been the over capacity of Supply in Asia, leading them to Imports of cheap version Plastics in Europe.

We shall then put economic pressure on Plastics recyclers.

Speaker Change: And this has again, been reinforced by high high energy cost, which means that the business case for plastic recycling in Europe is challenging currently.

Speaker Change: And there is still yet very few legal requirements to use recycled Plastics.

However, this year, uh, we have the introduction of the 25%, recycle content requirement for plastic bottles in the year.

Speaker Change: And as you can also see from the graph, um it this looks to be supporting them a higher and an increase in the eret prices.

Speaker Change: At the same time, the increased difference in price between recycled and virgin plastic.

But this will change.

Speaker Change: Makes it economically rational option for producers to then buy version Plastics if they and when they need to optimize margins and they don't have legal targets yet.

The mid to long term outlook for this segment is strong and positive. In 2030, the EU packaging and packaging waste regulation will require up to 35 percent minimum recycled content in plastic packaging. And this means somewhere between a doubling or tripling of the recycled content versus today. So we are very positive about the medium to long-term outcomes.

Speaker Change: But this will change.

Speaker Change: The mid to long-term outlook for the segment is strong and positive.

Speaker Change: In 2030 the EU packaging and packaging waste regulation. Will require up to 35% minimum recycled. Content in plastic packaging.

And this means somewhere between a doubling or tripling of the Recycled content versus a day.

Speaker Change: So, we have a very positive about the medium to long-term Outlook.

Adding them to a challenging classic market is how the global macroeconomic uncertainty and trade war is impacting our U.S. economy. which we also talked about in the last course. U.S. has been a good market for us the last years, especially in the waste segment, due to a strong drive to modernize and automate. So far this year, there has been very low activity in the U.S. due to customers delaying their investment decisions, as there is a high uncertainty regarding their capital. They need to make an investment decision and put an order today that will be delivered three, six or nine months ahead.

I think then third challenging plastic Market is how the global macroeconomic uncertainty and trade war is impacting our us business which we also talked about in the last quarter.

Speaker Change: us has been a good market for us, the last years, especially in the way segments, due, to a strong drive to modernize and automate,

And to do that when you don't know if the tariff will be 10 percent, 20 percent, 30 or higher, of course delays that decision. However, the fundamental drivers, as modernization and automation, remain intact, but certainty on tariff is needed to get this done.

So far this year, there's been very low activity in the US due to customers delaying their investment decisions. As there is a high uncertainty regarding their capex. They need to make an investment decision. Uh and put an order today that will be delivered 3, 6 or 9 months ahead and to do that. When you don't know, is a tariff will be 10%, 20%, 30 or higher, of course, delays, that decision

However, the fundamental drivers as modernization and automation remains intact, but certainly on tariffs is needed to get this Market back.

On a more positive note, the metals recycling segment has performed well in the court. I have talked a lot about the aluminum and our new capabilities of sorting alloys with our AutoSort Pulse in previous quarters, which has contributed positively in this area.

On a more positive note, the metal is recycling segment has performed well in the quarter.

Speaker Change: I have taught a lot about the aluminum and our new capabilities of sorting others with our outdoor pulse in previous quarters which has contributed positively in this segment.

On this slide, we have added a bridge below to show the market development from first half last year to first half. As you will see, overall the development is flat, but the metals recycling market, excluding North America, has increased, while both the global plastic market and North America has decreased. As a result, the metal segment currently makes up a significantly larger share of what we are delivering to the market these days, which is impacting our market.

Speaker Change: On this slide we have added a bridge uh below to show the market development from first half last year to the first half this year.

As you will see, overall the development is flat. But the Metals Recycling Market excluding North America has increased while both the global plastic market and North America has decreased

As a result, the metal segment currently makes up a significantly larger share of what we are delivering to the market these days which is impacting our margins.

Then over to food. After a record strong first quarter, who delivers another record quarter with the highest EBITDA, the highest order intake and the highest order backlog we have had so far? This is due to both our own efforts to restructure the organisation to improve profitability and an improving market set. as we mentioned at our Q1 presentation.

Speaker Change: Then over to food.

After a record strong, first quarter food, deliveries. And not the record quarter with the highest aita, the highest or intake and the highest, or the backlog we have had so far.

Speaker Change: This is due to both our own efforts to restructure the organization to improve profitability and and improving Market sentiment.

When plantation areas are ready to bear fruit, the urgency to invest in food sorting can be It's very good to see larger scale projects coming back in the fresh food categories, because this was the pain point and one of our challenges a few years. We have had good order intake in the quarter in all three regions. We have received large orders in all three regions, the APEC, EMEA and Americas. And also it's nice to see that that comes in different categories, including potatoes, avocados and. Tetris is one of the categories we have kept a close eye on and regard as a core category in our refocus portfolio.

as you mentioned at our q1 presentation,

when plantations area are ready to bear fruit, the urgency to invest in, few sorting can be strong.

Speaker Change: It's very good to see a larger scale project coming back in the fresh food categories because this was the pain point. The 1 hour challenge is a few years back.

We have had good order intake uh in the quarter in all 3 regions. We have received large orders in all, 3 regions ape and Maya and the Americas. And also it's nice to see that that comes in different categories, including potatoes, avocados, and citrus.

is a category where our technology provides high value-add for the customers and where we are the technology leader with our Look High. and it's a crop where we see potential for customer investment. Citrus represents 17-18% of the overall share of food consumption, and the industry has last year been heavily impacted by climate change and disease. And as it is a tree crop, time to full production is between 6 to 10 years, so it's time from planting until you have done a full production, depending on the variety. But when it's ready, you will need to have the infrastructure in place for sorting, grading and packaging.

Citrus is 1 of the categories. We have kept a close eye on and regard as a core category in our refocus portfolio.

Is a category where our technology provide high value. Add for the customers and where we are the technology leader with our louai solution.

Speaker Change: And this is a crop where we see potential for customer Investments.

Speaker Change: S is 3% 17 to 18% of the overall share of fruit consumption, and the industry has last year. It's been heavily impacted by climate, change and diseases.

And what we're currently seeing in Citrus is that America is rebounding and there is an increased interest for automation due to labor challenges. We also see increased capacity requirements in APEC, particularly in Australia, because of better climate conditions lately. So you get a higher volume that needs to be processed, more plantations and increased need for automation. So it will be interesting to follow the investment cycle of Citrus Index.

And as it is a 3, crop time to full production is between 6 to 10 years. So that's time from planting till you have done a full production depending on the variety uh but when it's ready you will need to have the infrastructure in place for sorting grading and packaging.

Speaker Change: Bounding and there is an increase in interest for automation due to labor challenges.

We also see increased capacity requirements in APC particularly in Australia because of better climate conditions lately. So you get a higher volume that needs to be processed, more, plantations and increase need for automation,

Speaker Change: So, it will be interesting to follow the investment cycle of citrus, the next years.

Despite a great start to the year, our food business is not immune to the tariff uncertainty. We do see some postponements and delayed investment decisions in the US, also for food, but to a lesser extent than in recycling. As in some cases, there is an urgent need for the investment. cannot be delayed. In addition, we see growth in other regions compensating for the delays in the U.S. But there is, of course, also risk in our food business linked to the macroeconomic situation and tariffs.

Speaker Change: Despite a great start to the year or a few business is not immune to the Tariff uncertainty.

We do see some possible elements and delayed investment decisions in the US also for food. But to a lesser extent than in recycling, I think some cases there is an urgent need for the investment.

It cannot be delayed.

Speaker Change: In addition we see growth in other regions, compensating for the delays in the US.

But there is, of course, also risk in our food business linked to the macroeconomic situation and tariffs.

Then over to Horizon, our adjacent business building. And I will give an update on our feedstock and our reuse venture. Tomra Feedstock is where we are focusing on solving the issue on plastic by investing in advanced sorting facilities.

Then over to Horizon our adjacent business building. Uh, and I will give an update on our feed stock and our reuse venture.

And we are entering a very exciting phase for our innovation plant, OMRO, as we have started a commission. Last month, in June, we produced or we had processed 1,880 tons in the facility and the commissioning is going very well. We see very good yields and we also see very good high periods. So commissioning will continue during the autumn, and we will take over the plant during the second half.

To is where we are focusing on solving the issue on plastic by investing in advanced sorting facility, uh, and facilities. And we are entering a very exciting phase for our Innovation plant Umbra. As we have started the commissioning

Then on Tomra ReUse, Tomra ReUse is where we are focusing on solving the issues linked to takeaway packaging, both littering and CO2 emissions, by then introducing ReUse. The exciting development in the quarter is the preparations for Lisboa, where we are planning then to install 17 return points across the downtown area by October. And you will see on this picture that we have the first Tomra Reuse installation in Lisboa happening now in June. Also, what we have done in the quarter in Reuse is that we have launched or shown our new collection point, because our objective in Reuse is not only to have solutions for beverage cups, Reuse cups, but also for other types of food packaging.

Last month in June, uh, we produced or we had the processed 1,880 ton in the facility and the commissioning is going very well. We see very good yields and we also see very good high priorities. So commissioning will continue during the Autumn and we will take over the plant uh during uh second half of this year.

Speaker Change: Then on tomorrow, we use tumar we use is where we are focusing on, solving the issues linked to takeaway packaging, both littering and CO2 missions by then introducing, we use options, exciting development in the quarter. Is the preparations for lispa, where we are planning then to install 17 return points uh, across the downtown area by October. Uh, and you will see on this picture that we had the first tumor, we use insulation in lisp, what happening and now uh uh in June.

So you can see bottom right here, this is our new Reuse collection point, where you can then also use it for boxes, bowls, trays and so forth. This is now piloting and we have live testing on it ongoing in Australia.

Overall, the different ventures in our Horizon portfolio is progressing in line with plans and With that, I will hand over to our CFO, Eva Sagemo. Thank you, Tove. And we start with the Group P&L for the second quarter. The top line came in at 325 million euro down 2% compared to a strong Q2 last year. As we expected, the revenues in collection were down 12% due to the timing of new markets. Recycling down 1% due to tariffs and macroeconomic uncertainty and food up 15% delivering on the estimated conversion ratio from a strong order backlog in the first quarter.

Also, what we have done uh, in the quarter in re reuse is that we have launched um, or shown our new collection point. Because our objective in reuse is not only have solutions for beverage cups. We use cups, but also for other types of food packaging, so you can see bottom right here. This is our new reuse collection points, where you can then also use it for boxes balls. Tracer and so forth. This day is now piloting. Uh, in we have live testing on its ongoing in orders.

Overall uh the uh different wrenches in our Horizon. Portfolio is progressing in line with uh plans and expectations.

Speaker Change: With that, I will hand over to our CFO.

Speaker Change: Thank you Tova and we start with the group pnl. Um, for the second quarter.

Speaker Change: The Top Line came in at 325 million, euro down 2% compared to a strong Q2 last year.

Speaker Change: As we expected the revenue is in collection, we're down 12%, due to the timing of new markets.

Gross margins were in line with Q2 last year ending at 44%. We maintain strong and good cost control across our divisions with OPEX of 100 million euros in the quarter, slightly down compared to Q2 last year. That results in an improved profitability, up two percentage points, giving an EBITDA of 15%, including special items. Looking at the collection, revenues came in at €169 million, down 12% compared to a strong second quarter last year. Sales were up in all regions except for Europe, mainly explained by the lower new market activity in this region. In Q2 last year, we had strong sales from both Austria and Romania, but as expected, these are down with Austria going live 1st of January this and Romania, as indicated before, continues to roll out RVMs in the market, but at a lower pace.

Recycling, down 1%, due to tariffs and macroeconomic uncertainty and food up. 15%, delivering on the estimated conversion ratio from a strong order, backlog in the first quarter,

Gross margins were in line with Q2 last year and yet 44%.

Speaker Change: We maintain strong cost, uh, strong and good cost control across, uh, our divisions. With all effects of 100 million euros in the quarter slightly down compared to Q2 last year,

That results in in an improved profitability of 2 percentage points, giving it an Abita of 15 uh percent including special items.

Looking at the collection revenues came in at 169 million euros, down 12% compared to a strong second quarter last year.

Speaker Change: Sales were up in all regions, except for Europe, mainly explained by the lower New Market activity in this region.

We continue to see an improvement in our gross margin, ending at 42% in the quarter compared to 40% last year. And that is explained by the business mix in this quarter. Good cost control in connection with OPEX, down compared to last year, ending at €43 million, resulting in an EBITDA of 16%, same as last year on lower top lines. Recycling came in at 57 million euros, a stable compared to Q2 last year. And as we said in Q1, we estimated a conversion ratio of around 50%. However, with a downside risk due to the uncertainty linked to macroeconomic and tariffs.

In Q2 last year, we had strong sales from both Austria and Romania, but as expected, these are down with Austria going live. First of January this year and Romania as indicated before continues to roll out, rvms in the market, but at a lower Pace, currently,

Speaker Change: In this quarter.

Good cost control in a connection with Wolfpack, uh, down compared to last year, ending at 43 million euros, resulting, in an Abita of 16% same as last year on Lower Top Line.

And as you can see from the overview, we were down in our main market, Europe, and also down year to date in North America. Gross margins ending at 46%, a weak margin compared to a strong Q2 last year, where we had a favorable product and business. This quarter, the gross margin is weak due to the product mix being more flakes and metal projects in the P&L. Important to note is that the underlying product margin in recycling are in... We have a good cost control in recycling as well, OPEX of 20 million euro in line with Q2 last year, resulting then in an EBITDA margin of 11% in Q2.

Speaker Change: Recycling came in at 57 million euros, stable compared to Q2 last year. And, as we said in q1, we asked them at a conversion ratio of around 50%. However, with a downside risk due to the uncertainty linking to macroeconomic and tariffs,

Speaker Change: Um, as you can see, from the overview we were down in our Mark main Market Europe and also down year to date in North America.

Gross margins ending at 46%, a week margin compared to a strong Q2 last year where we had a favorable product and business. Mix.

Speaker Change: This quarter, the gross margin is weak due to the product, mix being more Flakes and metal projects in the p&l.

Speaker Change: Important to notice is that the underlying product margin in recycling are intact?

Looking at the order intake, as Tove said, we had a weak order intake in the quarter due to the continued challenging market in Europe and in the U.S. The order intake was down 37% compared to Q2 last year, ending then at 41 million euros. That results in a decline in the order backlog of 20%, ending then at 107 million euros. Looking at the trailing 12 months for order intake and recycling, we are down 9%. Food came in strong on top line, delivering 94 million euro of revenue, up 15% compared to Q2 last year. In the quarter, sales were up in all main regions, except for then the rest of the world.

We have a good control in recycling as well. Effects of 20 million euro in line with Q2 last year. Resulting, then in an EPA margin of 11% in Q2

Speaker Change: Looking at the order intake as to how is that we had a weak water intake in the quarter, due to the continued challenging Market in Europe, and in the US.

uh, the order intake was down 37% compared to Q2 last year and he then at 41 million euros

Speaker Change: That results in a decline in the order backlog, uh, of, uh, 20% and they then at 107 million euros.

Speaker Change: Looking at the trailing 12 months for auto intake and recycling. We are down 9%.

Food came in strong on Top Line. Uh, delivering. Um,

94 million euro of Revenue up to 15% compared to Q2 last year.

Gross margin ending at 46%, up compared to Q2 last year, explained by high volumes, higher installation revenues and cost savings realized in the quarter. We had tariff impact in the quarter, as we talked about in Q1, that we expected a bit more than €4 million of tariff impact in the margin in Q2. We landed at €1.2 million in the quarter, and that is explained by the intermediate tariff reduction between China and the US. OPEX in the quarter ended at 27 million euros, down from Q2 last year, driven mainly by cost savings, resulting in a record EBITDA margin of 18%.

In the quarter, uh, sales were up in all main regions, except for then the rest of the world.

Cross margin ending at 46% up compared to Q2 last year explained by high volumes higher installation, revenues and cost savings realized in the quarter.

Speaker Change: We had tariff impact in the quarter as we talked about in q1 that we expected a bit more than 4 million euros of tariff impact in the in the margin in Q2, we landed at 1.2 million euros in the quarter. And that is explained by the intermediate, tariff reduction between China and us.

We also had a special item this quarter for food. It was a positive item of 3.7 million euro, related to the restructuring costs, coming from them lease agreements in New Zealand, now being the lease that has been subleased or either terminated. And including the special items, the beta margin ended at 22% in the quarter. As Tove said, we have had the strongest order intake record in food of €106 million in the quarter, up 28% compared to Q2 last year. It has been strong in all regions and includes large orders, mentioned being potatoes, citrus and avocados, accounting for more than €25 million together.

Speaker Change: In the quarter and the 27 million euros down from Q2 last year, the remaining by cost savings. Resulting in a record Abita margin of 18%.

Speaker Change: Uh we also had a special item this quarter for food. It was a positive item of 3.7 million euro related to the restructuring costs. The coming from them lease agreements in New Zealand. Now being so least that there has been sublease or either terminated and including the special items um debit or margin and then at 22% in the quarter.

The strong order intake results in also the strongest order backlog recorded ending at €137 million, up 15% compared to Q2 last year. And looking at the trailing 12-month order intake in food, we are up 11%. Cash flow from operations ended at 17 million euro for the quarter, down from 34 million in the second quarter last year. Year-to-date we have 83 million euro, compared to 54 million euro last year, year-to-date. And this is really related to timing of inflows. 35% equity ratio, gearing of 1.8 times, and a return on capital employed trailing now above our long-term target of 18%.

Speaker Change: As far as that we have had the strongest order intake, uh, recorded in food, uh, of 106 million euros in the quarter up. 28%, compared to 2 to last year, it has been strong in all regions and includes large orders, uh, mentioned being potatoes, Citrus in avocados accounting for more than 25 million euros together.

The strong order intake results in also the strongest, the order backlog recorded ending at the 137 million euros up to 15% compared to Q2 last year. And looking at the trailing 12 months for order intake in food, we are up 11%

cash flow from operations, ended at 17 million euro for the quarter. Um, down from 34 million in, uh, the second quarter last year year to date. We have 83 million euro compared to 54 million euros, um, last year year to date, and this is really related to timing of uh, inflows.

35% equity ratio, uh, gearing of 1.8 times and a return on Capital employed trailing. Now above our longtime tour, a long-term Target of 18%,

Happy to announce that Scope Ratings affirmed our ratings for Tomra in June at A minus stable, being business risk profile of triple B plus and the financial risk profile at A. Our rated average debt maturity is now at 4.2 years and we end the quarter with a 92 million euro undrawn liquidity buffer for Tomra.

Speaker Change: thanks for talking in June uh at a minus stable being business risk profile of Triple B plus and a Financial Risk profile at a

Speaker Change: Our weighted average death majority is now at 4.2 years and we have, we end the quarter with the um, 92 million euro undrawn, liquidity buffer. Um, for tommo.

And then over to the outlook, there is a high, and we start with collection as normal, there is a high activity related to deposit return systems in new markets and growth in existing markets.

And then over to the Outlook. Um,

Short and mid-term performance will depend upon the timing of new markets, in addition to replacement sales, introduction of new innovation, and variations in product and business mix. The growth prospects in 2025 are dependent on developments in upcoming deposit markets such as Poland and Portugal. However, we estimate the existing markets to grow approximately 5% year over year.

There is a high and we start with collection as normal. There is a high activity related to deposit return systems in new markets and growth in existing markets.

Speaker Change: Short and mid-term performance will depend upon the timing of new markets in addition to replacement sales introduction of new innovation and variations in product and business mix.

Gross margins should continue to stay above 40%, and we also expect good cost control to continue in recycling, I mean in collection, however, with quarterly OPEX variations dependent on investments into new markets, where we have an annual ramp-up OPEX run rate of approximately €20 million.

Speaker Change: The growth prospects in 2025 are dependent on developments in upcoming deposit, markets such as Poland and Portugal. However, we estimate the existing markets to grow approximately 5% year-over-year,

Speaker Change: Growth margins, should continue to stay above 40% and we also expect a good cost content to continue in recycling.

Speaker Change: I mean in collection. However, with quarterly Opex, variations depended on investments into new markets, where we have an annual ramp up Opex run rate of approximately 20 million euros.

Outlook for Recycling, the regulation and demand for recycled materials is expected to create growth opportunities. Short and mid-term performance will largely depend upon installation volumes and variations in product and business mix. The market sentiment is currently affected by a soft European plastic recycling market, trade tensions, and a high degree of macroeconomic uncertainty. And this leads to increased uncertainty in the timing of orders. Revenues in 2025 are dependent on developments in this market environment and how customers will react to these challenges. Based on the order backlog at the end of the second quarter, a 40% conversion ratio is estimated to be recognized as revenue in the coming quarter.

Speaker Change: Outlook for recycling, the regulation, and demand for recycled materials is expected to create growth opportunities.

Speaker Change: Short, a midterm performance, will largely depend upon installation volumes and variations in product and business mix.

Speaker Change: The market sentiment is currently affected by, um, a soft European plastic, recycling, Market trade tensions and a high degree of macroeconomic uncertainty and this leads to increased uncertainty in the timing of orders.

Speaker Change: Revenues in 2025 are dependent on developments in this market. Um, in this market environment and how customers will react to these challenges

However, given the market uncertainty, orders may be postponed over quarters. And for gross margins, volumes and product mix have an impact, which can also be seen historically. There is a currently higher share of metal recycling installations in our backlog, which generally then have lower gross margins than other product segments. Gross margins may also be negatively impacted by tariffs, all dependent on sales into the U.S.

Speaker Change: Based on the order, backlog at the end of the second quarter of 40% conversion, ratio is estimated to be recognized as Revenue in the coming quarter. However, given the market uncertainty orders may be postponed over quarters.

Speaker Change: And for gross margins volumes and product mix have an impact, which can also be seen historically. There's a currently higher share of metal recycling, installations in our backlog, which generally then have a lower gross margins than other product segments.

And we expect the business division to maintain good cost control also going forward.

Speaker Change: Gross. Margins. May also be negatively impacted by tariffs all dependent on sales into the US.

Speaker Change: And we expect a business division to maintain good cost control. Also going forward.

Outlook for food, the need for optimization and increased quality and safety requirements create opportunities. And we are experiencing an improved market sentiment.

Outlook for food, the need for optimization and increase quality and safety requirements. Create opportunities.

However, the current macroeconomic uncertainty may impact customers' investment willingness, also here. Revenue growth in 2025 has potential to reach mid-single-digit levels. And based on the order backlog at the end of the second quarter, a 55% conversion ratio is estimated to be recognized as revenue in the third quarter.

Uh, and we are experienced and improved Market sentiment. However, the current Marco economic uncertainty, may impact customers investment. Willingness also here

Revenue growth in 2025 has potential to reach mid single digit levels.

However, also here, given the market uncertainty, orders may be postponed over quarters. The cost reduction programme has improved our gross margins in food. However, we will continue to see quarterly variations in the gross margin, depending on volume and product.

And based on the order backlog, at the end of the second quarter, a 55% conversion ratio is estimated to be recognized as Revenue in the third quarter. However, also here given the Market's uncertainty orders may be postponed over quarters.

As we said, tariffs have impacted the margins in Q2 and it may continue to impact gross margins also going forward. Following last year's cost reduction program, the target is to achieve an EBITDA margin of 10-11% in 2025.

Speaker Change: The cost Reduction Program has improved our gross margins in food. However, we will continue to see quarterly variations in the gross margin depend on volume and product mates.

As we said, tariffs have impacted the margins in Q2, and we may continue to and it may continue to impact gross margins. Also going forward,

and then the Outlook for Horizon. Horizon consists of our venture activities in feedstock and reuse in addition to the newly acquired smart waste company C-Trace. While the underlying operating expenses for feedstock and reuse are expected to remain in line with 2024 levels, there will be an increase in costs related to the feedstock plant Områ, which goes into operations end of this year. So the total OPEX run rate for feedstock and reuse is estimated south of 20 million euros for full year 2025.

Following last year's uh, cost Reduction Program. The target is to achieve an eita margin of 10 to 11% in 2025.

Speaker Change: And then, um, the outlook for Horizon.

Speaker Change: Horizon consists of our Venture activities uh in feed stock. And we use in addition to the newly acquired smart Waste Company, sea Trace,

And then when we talk about the investment, so the cutbacks of Horizon, it's approximately 40 million for this year, so 40 million for 2025, and that is mainly related to our two feedstock plants, where we have currently spent around 10 million euros.

25.

And I think I end here, Daniel, and hand it over to you. And thank you, Eva.

Speaker Change: And then when we talk about the Investments or the capex, uh, um, authorization, it's approximately 40 million for, uh, this year. Uh, so 40 million for 2025 and that is mainly related to our 2 FIFA plants, uh, where we have currently spent around 10 million euros,

Speaker Change: and I think I am here Daniel and handed over to uh you

Before moving over to the Q&A, I would like to mention that Områ, our Norwegian feedstock plant, will officially open on the 5th of November. And we're happy to invite everyone who's interested to join this ceremonial event to contact Investor Relay. And we're also, of course, happy to organize other investor site visits to view the plant in live operations, so stay tuned for that.

Thank you. It's all over and thank you. Eva.

Before moving over to the Q&A, I would like to mention that our Norwegian feed stock plant will officially open on the 5th of November. And we're happy to invite everyone who's interested to join this ceremonial event to contact investor relations.

But with that, we will open up for Q&A. And I see that we have a few questions coming in already.

Speaker Change: Um, so and we're also, of course, uh, happy to organize other investor site visits to to view the plants in live operations. So stay tuned for that as well.

And the first question is coming from Adela Dashian in Jeffries. Please go ahead, Adela.

But with that, we will open up for Q&A and I see that we have a few questions coming in already and the first question is coming from adila dashian. In Jeffrey's, please go ahead adila.

I think you are muted. Now we hear you. and the data point that we have indicated for the coming quarter is the 40% conversion ratio of the order backlog. That's the data point that we have given and then we have also said it's an uncertainty in the market related to the macroeconomic situation and the tariffs and revenues for 2025 will depend on how customers will react to these challenges.

Speaker Change: You. I think you are muted, if you

Speaker Change: There we go.

Speaker Change: Now, we hear you.

Speaker Change: Are you able to just clarify your expectations for for that? Is this year? I mean, given the the decline in order backlog and also the indicated conversion ratio, it seems like you would have to take a pretty strong pick up.

Image to 34 year growth. So what's your visibility on that and what you have to have in the pipeline and what's the confidence in the potential rebound already?

Speaker Change: Yeah, uh so so far yesterday, so I have revenues in reflecting off a bit more than 100 million euros. And the data point that we have indicated for the coming, quarter is 40% conversion ratio of the order backlog. That's the data points that we have given. And then we have also said it's um, uh, it's an uncertainty in the market related to the macroeconomic situation, and the tariffs and uh, and uh, revenues for 2025 will depend on how customers will react to these, uh, these challenges

So would it be fair to say that with that conversion ratio, you're currently not expecting growth in 2025? I can just repeat myself, Adela, that it's a very uncertain market, and these are the data points that we can give at this point in time. Got it.

So would it be fair to say that with that conversion ratio? You're currently not expecting growth in 2025.

Uh, I can just repeat myself for the data that it's a very uncertain market. And the, these are the data points that uh, that we can give at this point in time.

Then on the, if we move to food, very strong margin development here in Q2. Do you feel like the current full-year target might be a bit too conservative? Because as it stands now, it looks like you're not expecting double-digit margins in H2, despite the restructuring benefits and strong order momentum. So what would then be driving a more cautious outlook? Yeah, so the profitability in food, it's very high, it's very strong and good now in Q2. It's a mix of many things. Of course, as I said, volume plays a part, the product mix plays a part, and the business mix plays a part.

Speaker Change: Got it. Uh, then on the I believe moved to food, uh, very strong margin development here in in Q2. Do you feel like the current full year Target, might be a bit too conservative, because as it stands, now, it, it looks like you're not expecting double digit. Margins in H2, despite the restructuring benefits and strong order momentum. So what would then be driving a more cautious Outlook

So that's what, when we say, when we talk about gross margins, that we indicate that it will be quarterly variations. But of course, with the cost reduction program that we had over the last year, we have seen improvements in the margins in food. But with the current or the backlog, is there a mixed variation, a more negative mix in H2 that makes you feel like you will not achieve double digit margins? So we don't necessarily go into the details of the order backlog, but what I can say is that we have the target still of reaching the EBITDA of 10-11% for the full year in future.

Speaker Change: Yeah, so the, uh, the profitability in the food. Uh, it's, uh, it's very high. It's very strong and good. Now in Q2, it's, uh, it's a mix of many things, of course, uh, as I said, the volume plays A Part. The product makes plays a part and the business makes it plays a part. So that's uh, what when we say when we talk about gross margins, so we indicate that it will be quarterly variations. But of course, with the cost Reduction Program that we had over the last year, we have seen improvements in the margins in food.

But do with the current or the backlog do you, is there a mixed variation? A more negative mix in H2 that that makes you feel. Like you will not achieve double digit, margins,

Speaker Change: So, uh, we don't necessarily go into the details of the order backlog. But what I can say is that, uh, we uh, we, uh, have the Target still of reaching the Abita of 10 to 11% for the full year in food.

Okay, lastly on collection, are you able to provide us with an update on how things are progressing in Poland? Maybe specifically what go-to-market model that's been adopted or is being planned to be adopted? And then maybe also an update on how you would characterize your competitive positioning versus both local and regional players? have a good and strong team in place in Poland with more than 50 people already. We have signed some contracts and we are in negotiations related to other contracts. Online we have talked about in the past that we have had discussions both on throughput models in Poland and sales and service and what we are seeing currently is that it's tilting more towards sales and service so we think currently that the majority of the business models will be a traditional contract linked to then selling the equipment and do the service afterwards.

Okay. Uh lastly on uh collection are you able to provide us with an update on how things are progressing in Poland? Maybe specifically what go to market model? That's been adopted or it's being planned to be adopted. Uh and then maybe also an update on how you would characterize your competitive positioning versus both local and Regional players.

Speaker Change: Activities going on. We have a good and strong team in place in Poland with more than 50 people. Uh, already. Uh, we have a signed, some contracts, and we are in negotiations, uh, related to other contracts online. We have talked about the past that we have had discussions both on throughput models in Poland, and sales and service. And where, what we are seeing currently is that it's tilting more towards sales and service. So we think them currently that the majority of the business models will be traditional contract linked to them selling the equipment and do the service afterwards.

And I guess how competitive that's right now is it's the same as you've already. Established in previous quarters or are you seeing a... in terms of buying more. Yeah. I think it's always, you know, very competitive in this new market that's being launched. And I think when we looked at the competitive situation in Poland a year back, you had the mix of, you know, the more national, the local players, new local players, and the more international ones. What we have seen now is that the small local players, it's very difficult to compete into a market.

Speaker Change: Um, and and the, I guess how competitive Ms right now, is it the same as you've already?

Speaker Change: Established in previous quarters. Or are you seeing a?

Speaker Change: Intensifying or yeah.

So the ones that we're seeing active now is the traditional competitors that we see in all markets. We are very confident in the service that we are offering to the customers. We have 50 years of history. We have the largest experience background from different markets. We have the broadest portfolio. We have the best software solution. We have the most reliable product. We also have developed some specific products for Poland because many stores in Poland will not be able to have the RVMs inside, so they want to have it outside. So we have launched a new product now specifically for Poland.

Speaker Change: I think it's always, you know, very competitive, in this new markets are being launched. And I think when we looked at the competitive situation in Poland, uh, a year back, you had a mix of, you know, the more M, the local players, new local players. And uh, the more International ones, what we have seen now is that, uh, this small local players is very difficult to compete into a market. So the ones that we're seeing active now is the traditional competitors that we see in all markets. Uh we are very confident in the service that we are offering to the customers. We have 50 years of History, we have the largest experience background from different.

So we believe that we are very well positioned to take a significant share of the Polish Great, thank you.

Speaker Change: Marcus, we have the broadest portfolio, we have the best software solution, we have the most reliable product. We also have developed some specific products for Poland because many stores in Poland will not be able to have the rvms inside, so they won't have it outside. So we have launched a new product. Now, specifically for Poland so we believe that we are very well positioned to take a significant share of the Polish market.

I'll jump back in the queue.

Speaker Change: Great. Thank you. I'll jump back in the queue.

Next question will come from Morayo Adesina in Barclays. Please go ahead.

Speaker Change: Thank you.

Speaker Change: Next question will come from.

Hi Mornay and Yap here on behalf of Gaurav, Jane. Just one question from me on food. So obviously last quarter you were expecting around 4 million tariff impacts. Is there any colour you can give us here on what you're expecting for Q3? And I don't know if there's any more you know sort of colour you can give us in terms of The improvement in food, how much of that can be attributed to the restructuring program versus improved market sentiment? I don't know if there's anything you can share on that.

Speaker Change: Harmony Gap here on behalf of gaurav Jain. Just 1 question from me on Foods, obviously. Last quarter. Um you were expecting around 4 million. Um, tariff impacts. Is there any color you can give us here on what you're expecting for? Um Q3 and I don't know if there's any more, um,

Speaker Change: you know, sort of color you can give us in terms of

The Improvement in food. How much is that how? How much does that can be attributed to the restructuring program versus improved Market sentiment? I don't know if there's anything you can share um on that.

So if we start with the restructuring program, we had a target to save 30 million euros and what we said was that one third of that should go into the gross margins. And then of course, as we have said today, we have quarterly variations in the gross margin depending on volume, product mix and business mix. And also this quarter we had the tariffs of 1.2 million euros impacting the margin negatively with more than one percentage. Going forward, of course, that depends on, first of all, that the tariffs are being fully landed. So you can have predictability into what that means for the shipments into the U.S.

uh, so if we start with the, uh,

But also, incoterms plays a role in how you also negotiate with your customers. But what I would like to say is that tariffs might impact the margins going forward. All depends on what we have in the order backlog and what we would sign on orders in the U.S. going forward at which term.

Speaker Change: Restructuring program, we had a Target to save 30 million euros. And what we said, uh, was that 1/3 of that should go into the gross margins. Uh, and then, of course, as we have said, today, we have quarterly variations in the gross margin dependent on volume product, mix and business mix. And also this quarter, we had the tariffs in of 1.2 million euros, impacting the margin negatively with 1 more than 1 percentage points, going forward. Uh, of course, uh, that depends on, uh, first of all, that the tariffs are being fully, uh, landed. Um, so you can have predictability into what that means for the shipments into the US. Uh, but also, um,

So it's a bit difficult to estimate precise what will be the tariff impact in Q3 and Q4. And we just need to come back to that.

If I can just add one comment, what we have done in food, because in food we have been exposed both to Chinese and European tariffs into the U.S. because we had some products also being produced in China. During now Q3, we will also have that capability in Europe to produce what we are currently producing in China, so that we are able to flex between those two production locations based on the tariff situation. Great, thanks so much.

Speaker Change: uh, inco terms, stays the roles and how you also negotiate with your customers. But, uh, so what what I would like to say, is that, um, terrorists might impact the margins, going forward, all depends on what we have in the order backlog, and what we would find on orders in the US going forward at which terms. So it's a bit difficult to estimate precise. What will be the Tariff impact in Q3 and Q4 and we just need to come back to that.

Speaker Change: I can just add 1 comment what we have done in food because in food, we have been exposed both to Chinese and European Paris into the us because we had some products also being produced in China during now Q3, uh, we will also have that capability in Europe to produce what we are currently producing in China. So that we are able to flex between those 2 production location based on the Tariff situation,

Speaker Change: Great. Thanks so much.

Next question will come from Elliott Jones in Danske Bank. Please go ahead, Elliott. Hey, good morning, guys. Thanks for taking my questions. Just starting on collection, you noted, I think, gross margins of 42%, two percentage point increase year on year. Is there a reason to kind of... I think that these margin levels will be kind of lower from this level as we move through the year. I know you have the kind of baseline target of above 40% but just want to get a kind of idea of I don't know, maybe the mix or how we can expect to see this gross margin develop through the year.

Elliot Jones: Thank you, Mario. Next question, will come from Elliot Jones in danske bank. Please go ahead Elliot

Elliot Jones: Hey, good morning guys. Um, thanks for taking my questions. Just stay on collection. Um, you noted I think gross margins at 42%. Uh, 2 percentage Point increase year on year, is there a reason to kind of

The air. I know you have the kind of Baseline Target of of above 40%, but just trying to get a kind of idea of

So as we said, the gross margin should stay above 40% and we will have quarterly variations depending on what we sell in the quarter. So we had the positive business mix now in Q2 related to throughput volumes, less new sales of machines. Of course, that impacts the gross margins. Going into the second half, we expect the new markets to pick up with Poland and with Portugal. And when you sell more machines into a quarter, that also impacts the gross margins in collection. So think about the more than 40% gross margin for collection for the full year.

I don't know, maybe the the mix or, or how we can expect to see this gross margin, uh, develop through there. Yeah, so as we said, uh, gross margin should stay above 40% then we will have quarterly variations. So depending on what we sell in the quarter, so the we had the positive business mix. Now, in Q2, uh, related to, uh, 350 volumes, less lesser new, uh, less new sales of machines. Uh, of course, that impacts the gross margins going into the second half. We expect the new markets to pick up with Poland and with the Portugal and when you sell, um, more machines into a quarter, uh, that is also impacts the gross margins in collection. So uh, think about the more than 40% gross margin for collection for the full year

Got it. And then just on Poland, yeah, good to hear that you guys are signing contracts. are developing. Just digging a bit deeper there, are you expecting kind of a meaningful set of installations in Q3 and Q4 or is this just based on the contracts you've seen and signed, is this kind of a market whereby it's, you know, nothing in Q3 and a big rush in Q4 just to get a bit of color there? And then in Portugal, just quickly, how are things looking there with regards to how, a similar question, but how ready the market is prior to go live?

Speaker Change: Got it, and then just just on Poland. Um, yeah, good to hear that, you guys are signing signing contracts and things of developing. I just just digging a bit deeper. There, are you expecting kind of a, a meaningful set of installations in Q3 and Q4? Or is this just based on the contracts you've seen? And signed is, is this kind of a market where by its, you know, nothing in Q3 and a big rush in Q4 um just to get a bit of color there. And then in Portugal, just quickly, how how how are things looking there with regards to how?

Are you expecting decent installation rate before the go live date in Portugal or is that one where, you know, it's going to be a big rush in Q1, for example, and then a longer tail? Yeah, so if you start with Poland, so the official go live date is October 1st. We have always said that we think there will be a three month grace period, which means that this will go live first of January next year. And also what we have said is that we believe that the rollout there will be more similar to Romania where you will have a longer rollout.

Speaker Change: A similar question, but how how already the market is prior to go live. Are you expecting decent installation rate before the go live date in Portugal? Or is that 1, where

Speaker Change: You know, it's going to be a big rush in q1, for example and then a longer tail.

However, at the same time, we do believe that installations will pick up significantly during second half. We have ramped up production to be ready to do that. And also, you know, as commercial negotiations are progressing, our expectation is that installations will pick up during second half. In Portugal, you can say Portugal has a later go live date than Poland, but are a bit more advanced in the commercial discussions. It's also different than Poland because in Poland you have the additional complexity of many system operators. Well, the system operator in Portugal has been known for quite some time.

Speaker Change: Yeah, so uh, if you start on the Poland, so the official go live date is October 1st. We have always said that, you think it will be a 3 months grace period, which means that this will go live. Uh, first of January and next year and also what we have said is that, we believe that the roll out there will be more similar to Romania, where you will have a longer roll out. However, at the same time, we do believe that installations will pick up significantly during second half. Uh, we have ramped up production to be ready to do that. Um, uh, and and also, you know, as commercial negotiations are progressing, our expectations is that installations will pick up during second half

So there we see that it's more mature than Poland. We have signed contracts with three of the large players in Poland, as the majority, no in Portugal, as the majority supplier. And we would also then expect the installations in Portugal to happen during second half year and then continuing next year.

Speaker Change: In Portugal, uh, you can say, Portugal has a a later go live date than Poland but are a bit more advanced, uh, in the commercial discussions. It's also different than Poland because in Poland, you have the additional complexity of many system operators for the system operator in Portugal, has been known for quite some time. So there we see that. Uh, it's more mature, uh, than Poland. Uh, we have signed the, uh, contrast with 3, uh, of the large players in Poland as the majority is no in Portugal, uh, as the majority of supplier. And we would also then expect the installations in Portugal to happen during

Speaker Change: In the half year and then continuing and next year as well.

Great. And I'm sorry, two further questions. On Spain, I think there's been some kind of progress there and you mentioned that as well. I think the consensus is that Spain was definitely going to be delayed quite significantly. Would you agree with that or are you seeing progress there that actually makes you think that we could be hitting the ground on time in Spain and and things actually looking good for kind of a Q4 launch there? And then the final question is on food again. Just in terms of orders, you spoke about a more positive environment.

Speaker Change: Great and I'm sorry 2 further questions just on on Spain. Um, I think that's been some kind of progress there. And you mentioned that as well is is

Is there any reason to suggest this is a massive one-off or if things don't change, could you expect similar order intake levels in Q3 and Q4? Yeah, so in Spain, I guess also our expectations was that when this kicked in and they were going to go live within two years that there would be some delays because we often see that in markets. However, when you see how Spain is progressing now, there is no reason why they shouldn't be able to go live as planned in Q4 2026. But this we just need to monitor. I think the key thing now is that we see that they're taking the steps that you need to take to get ready for the launch of a deposit return system.

Speaker Change: I think the the consensus is that Spain is was definitely going to be delayed quite significantly. Um, would you agree with that? Or are you seeing progress there? That actually makes you think that there could be, you know, we we could be hitting the ground on time in Spain. And uh, uh, and things are actually looking looking good for kind of a q Q4 launch there. And then the final question is on food again. Um, just in terms of orders, you spoke out more positive environment. Is it is there any reason to suggest this is a massive 1-off

Speaker Change: Or if things don't change, could you expect similar order intake levels? Thank you, thank you. Thank you for

They now have had this tender out for then applying to be a system operator. They will evaluate that. So I think we'll learn more as we go. But the positive thing is that we see that they are progressing. And then on the order intake question for food, so we had a very strong order intake now in Q2 and important to mention that we had large orders into that order intake of more than 25 million euros. So that's important to note when you model going forward and what we have said is that we see an improvement in the market, we see orders coming in, in the regions, in the different categories.

Speaker Change: Yeah, so in Spain, um, I guess also, our expectations was that uh, when uh, this kicked in and they were going to go live within 2 years that it would be some delays. Because uh, we often see that in markets, however, when you see how Spain is progressing, now there is no reason why they shouldn't be able to go live as planned then, uh, Q4 2026. But this, we just need to monitor. I think, the key thing now is that we see that there are, you know, they're taking the steps that you need to take to get, uh, ready for the launch of a deposit return system. They now have a, you know, had this tender uh, out for then applying to be a system, operator, they will evaluate that.

So, I think we'll learn more as we go. But uh, the positive thing is that we see that there are progressing

Speaker Change: To take the ordinance and on the, on the order intake question for food. Uh, so we had a very strong order intake now in Q2, and the important to mention that we had, uh, uh, large orders into that order intake of more than 25 million euros.

But it is also still a risk within the food market because we have also seen a postponement there on the investment willingness due to the uncertainty generally in the world. And we always say, you know, that there will be quarterly variations, we always recommend you to look at the trailing 12 months. And we also say that when the order intake has been good. But if you look at them trailing 12 months for a few, I think it's up 11%. That's great.

Speaker Change: Going forward. Uh, and what we have said is that we see an improvement in the, in the market, we see orders coming in in the regions in the different categories, uh, but uh, it is also still a risk within the food, uh, Food Market, uh, because they have, we also seen post postponement there on the investment willingness due to the uncertainty uh generally in the world.

Speaker Change: And we always say, you know, is that there will be Court Liberation. We always recommend you to look at the trailing 12 months and we also say that when the order intake has been good, but if you look at Aunt, 12 months for food, I think it's up 11%. 11% yeah.

Thank you very much, guys. Thank you, Elliott.

Speaker Change: That's great. Thank you very much, guys.

As there are no further questions in line, we have reached the end of this presentation. The next time we will be here is in exactly three months on the 17th of October.

Thank you, Elliot.

In the meantime, we wish you a wonderful summer. Have a nice day. Goodbye.

Speaker Change: As uh, there are no further questions. Uh, in line, we have reached the end of this presentation. The next time we will be here is in exactly 3 months on the 17th of October. In the meantime, we wish you a wonderful summer have a nice day. Goodbye.