Munters Group Ab · OMXSTO:MTRS
Munters Group Ab — Q4 2018 Earnings Presentation
23 slides from Munters Group Ab's earnings presentation, February 2019
Slide 1: Munters Fourth Quarter 2018
MUNTERS FOURTH QUARTER 2018 Munters towards full potential
Slide 2: Agenda
Agenda Munters Full Potential Program Q4 and Full Year 2018 results 2
Slide 3: Starting point
Starting point • Munters has attractive fundamentals, strong technology base, great people, deep application knowledge and leading market positions • Strong underlying long-term demand and profitable growth opportunities in key segments However… • Munters has not delivered according to plan since IP
Slide 4: Guiding principles for taking Munters to full potential
Focus on attractive Focus on attractive markets product applications Business mindedness in Focus on customer value everything we do Guiding principles for taking Munters to full potential Simpler and leaner Decentralization structures Stronger Business Areas Performance culture 4
Slide 5: Munters Full Potential Program launched
Munters Full Potential Program launched 1 2 3 STABILITY PROFITABILITY GROWTH Secure stable and profitable Improve performance Accelerate growth in platform attractive segments and geographies 5
Slide 6: Secure a stable and profitable platform
1 Secure a stable and profitable platform A. A Strengthen leadership team STABILITY B. B Simplify Munters structure into two decentralized Business Areas Secure stable and profitable platform C Drive leaner structures and cash efficiency A. D Drive Data Center performance uplift through focus toward
Slide 7: Strengthen leadership team
1A STABILITY – Secure stable and profitable platform Strengthen leadership team • New Chairman of the Board, Magnus Lindquist • New Interim CEO, Johan Ek. Recruitment of permanent CEO initiated • Peter Lindquist appointed interim President Air Treatment, replacing Scott Haynes from February 13th 201
Slide 8: Simplified organization with strengthened Business Areas
1B STABILITY – Secure stable and profitable platform Simplified organization with strengthened Business Areas CEO • Two strong Business Areas (Mist Elimination and Data Center merged into AirT) Air Treatment AgHort • Transparency and accountability • Decentralized decision-making • Business Areas to
Slide 9: Drive leaner structures and cash efficiency
1C STABILITY – Secure stable and profitable platform Drive leaner structures and cash efficiency – resulting in SEKm 160 cost savings, excluding Data Centers savings Run-rate Overhead cost savings end of Q4 2019 (SEKm) • Implement Leaner structures in Business Areas Air 90 • Drive FTE efficiency acr
Slide 10: Data Center performance uplift through shifting focus towards US operations
1D STABILITY – Secure stable and profitable platform Data Center performance uplift through shifting business focus towards US operations – resulting in SEKm 50 profit improvement Weak Data Center earnings development Focus on more profitable US market • High Net Sales growth over the last years – b
Slide 11: Combined initiatives expected to deliver SEKm 210 annualized profit improvement
1E STABILITY – Secure stable and profitable platform Combined initiatives expected to deliver SEKm 210 annualized profit improvement Program 2019 adj. EBITA impact 2020 adj. EBITA impact One-time costs Cash pay-back time – equals ongoing annual run-rate SEKm -350 costs Approx. Total program impact S
Slide 12: Improve performance
2 PROFITABILITY – Improve performance Improve performance A. Actively drive business mix towards most attractive applications B. Focused Product Development to create higher value for customers PROFITABILITY Improve C. Drive continuous improvements to fine tune Business Area organizations and perfor
Slide 13: Accelerate growth in attractive segments and geographies
3 GROWTH – Accelerate growth in attractive segments and geographies Accelerate growth in attractive segments and geographies A. Focus on fast growing segments and geographies with leading Munters positions GROWTH ‒ Continued roll-out of service offering Accelerate ‒ Lithium Battery, Food and Pharma
Slide 14: Full Potential Program provides clear path to updated mid-term financial targets
Munters Full Potential Program provides clear path to reaching updated mid-term financial targets 1 2 3 STABILITY PROFITABILITY GROWTH Secure stable and profitable Improve performance Accelerate growth in attractive platform segments and geographies • Revised Organic Net Sales growth of 5% (previous
Slide 15: Agenda
Agenda Munters Full Potential Program Q4 and Full Year 2018 results 15
Slide 16: Full year 2018 – summary
Full year 2018 – summary • Order intake decreased 4%. Excluding Data Centers, order intake increased by 5% Q4 Jan-Dec SEKm 2018 2017 D 2018 2017 D • Net sales increased 8%. Excluding Data Centers, net sales increased by 6% Order backlog 2,317 2,365 -2% 2,317 2,365 -2% Order intake 1,753 1,821 -4% 6,
Slide 17: Q4 financial key points
Q4 financial key points Order intake decreased by 4% due to lower order intake -4% -2% in Data Centers. Q4 2017 included SEKm 450 DC order Order intake Backlog SEKm SEKm Net sales increased by 1% with growth in all Business Areas except in Data Centers 1,753 2,317 Adjusted EBITA was lower than last
Slide 18: Q4 2018 in Air Treatment – strong finish of the year
Q4 2018 in Air Treatment – strong finish of the year • Order intake increased by 14%. Large orders won in the Lithium segment in China (SEKm 120). Solid order intake Q4 Jan-Dec also in Food (US) and Services SEKm 2018 2017 D% 2018 2017 D% • Net sales increased by 8%. Organically, net sales increased
Slide 19: Q4 2018 in AgHort – continued growth but slightly lower margin
Q4 2018 in AgHort – continued growth but slightly lower margin • Order intake increased by 15%, with growth in both Americas and Asia Q4 Jan-Dec • Net sales grew by 11% in the quarter, with majority of the SEKm 2018 2017 D% 2018 2017 D% growth in Americas and Asia Order intake 452 394 15 2,107 1,866
Slide 20: Q4 2018 in Data Centers – negative trend deepened in the quarter
Q4 2018 in Data Centers – negative trend deepened in the quarter • Order intake decreased in the quarter due to a decline in orders in Europe (SEKm 495 order intake in Europe in 2017 Q4 Jan-Dec vs. SEKm 3 in 2018) SEKm 2018 2017 D% 2018 2017 D% • Lower net sales due to low order intake and phasing o
Slide 21: Q4 2018 in Mist Elimination – strong growth in sales and margins
Q4 2018 in Mist Elimination – strong growth in sales and margins • Order intake increased by 41% in the quarter. The growth was driven by Marine EGC (Emission Gas Cleaning), with flat Q4 Jan-Dec development in Process and a minor decrease in the Power sub-segments SEKm 2018 2017 D% 2018 2017 D% Orde
Slide 22: Conclusions and outlook
Conclusions and outlook • Strong Q4 order intake in all business areas except Data Centers. Group earnings (adj. EBITA) impacted by significant loss in Data Centers. • Lower Group adj. EBITA expected in Q1 2019 year on year due to loss in Data Centers Munters Full Potential Program launched 1.1 Secu
Slide 23: Questions & Answers
23 Questions & Answers @ Munters