Slide 1: Munters Q3 report 2024
Munters Q3 report 2024 Klas Forsström, President and CEO Katharina Fischer, GVP and CFO Ann-Sofi Jönsson & Line Dovärn, Investor Relations
Slide 2: Strong growth & profits, continued weak battery outlook
Strong growth & profits, continued weak battery outlook Mega-trends driving order intake Increased net sales Continued strong profitability Order intake Announced orders* Order backlog MSEK Adj. EBITA Adj. EBITA margin Net Sales MSEK MSEK 15 000 800 20% 6 000 6 000 16.2% 600 16% 10,685 3,761 611 4 0
Slide 3: DCT in Americas main driver of growth
DCT in Americas main driver of growth Regional share Q3 Order intake Net sales Order intake Net sales Order intake Net sales 14% 13% 26% 29% 60% 57% Americas - order intake EMEA - order intake APAC- order intake • AirTech – negative mainly due to battery & • AirTech – slight growth primarily the • A
Slide 4: AirTech: Order intake affected by weaker battery market
AirTech Order intake affected by weaker battery market >5% ~ 1-5 % ± 0 -1% neg Org. Order Intake declined due to weaker % order intake Market battery sub-segment in all regions; Customer segment Q3 2024 Outlook * • Industrial (excl. battery) – grew mainly EMEA & Americas • Battery - APAC weak, EMEA
Slide 5: AirTech: Investments and lower volumes affecting margin
AirTech Investments and lower volumes affecting margin Org. Net Sales negative development, Q3 Q3 Change (%) primarily weak battery sub-segment; MSEK 2024 2023 Org. Struct* FX • Industrial (excl. battery) – good growth EMEA & APAC, slightly Order intake 1,529 1,463 -4 13 -4 offset by Americas Order
Slide 6: AirTech: Solid development in several segments
AirTech Solid development in several segments Development Q3 2022 – Q3 2024 MSEK Order intake per segment 3 000 • Battery -customers placing orders closer to delivery, delays in greenfield 2 500 investments combined with competitive environment & price pressure more aggressive 2 000 • CT- stable dev
Slide 7: Battery market continued weak outlook
Battery market continued weak outlook Market development • Battery market & need for dry rooms - significant growth and profitability driver in the past years, driven by China but increasingly EMEA & Americas We anticipate • Overall fewer projects globally - particularly in China and US challenging
Slide 8: Optimizing supermarket refrigeration
AirTech Optimizing supermarket refrigeration AB Vassilopoulos, one of Greece's largest supermarket chains wanted to improve refrigeration efficiency Munters offering - EC Cool system: • evaporative cooling pads cool the air before reaching the condenser, improving heat dissipation • water evaporatio
Slide 9: Data Center Technologies: Underlying demand strong & increased order backlog
Data Center Technologies Underlying demand strong & increased order backlog >5% ~ 1-5 % ± 0 -1% neg Customer Order Intake Market segment Q3 2024 Outlook * Order Intake strong increase; Hyperscaler 2% • good level of small & mid-sized order, driven by colocation market Americas • underlying demand re
Slide 10: Data Center Technologies: Further significant profitability improvements
Data Center Technologies Further significant profitability improvements Change (%) Q3 Q3 2024 2023 Org. Struct* FX MSEK Net Sales increased; Order intake 898 404 134 0 -12 Order backlog 6,464 5,453 • successful execution on deliveries of large orders Net sales 1,012 953 10 0 -4 Adj. EBITA margin sig
Slide 11: Large & medium-sized orders supportive throughout 2025
Large & medium-sized orders supportive throughout 2025 2022 2023 2024 2025 MUSD 63 US colocator Standard chilled water (CRAHs) MUSD 176 US colocator SyCool Split solutions MUSD 88 US colocator Standard chilled water (CRAHs) MUSD 137 US colocator SyCool Split solutions MUSD 65 US colocator Standard c
Slide 12: Supporting data center customers
Supporting data center Data Center Technologies customers Retrofit projects for colocation customers in North America • evaporative pre-cooling for air cooled chillers Benefits include: • reduced water carryover and water usage – improving product lifecycle and reducing product maintenance • pre-coo
Slide 13: FoodTech: Order intake affected by seasonal & timing effects
FoodTech Order intake affected by seasonal & timing effects >5% ~ 1-5 % ± 0 -1% neg % order intake Market Customer segment Q3 2024 Outlook * Order Intake decreased; Climate Solutions (incl. • CS – weaker due to seasonal & timing effects Controllers) 86% • DS – declined, due to several large orders i
Slide 14: FoodTech: Continued strong margin increase from all regions
FoodTech Continued strong margin increase from all regions Change (%) Q3 Q3 2024 2023 Org. Struct* FX MSEK Order intake 590 651 -8 2 -4 Net Sales increased driven by both CS & Order backlog 894 999 DS; Net sales 758 650 19 2 -5 • CS – good growth Americas & EMEA, offset by - of which SaaS 74 48 weak
Slide 15: Acquisition of Hotraco – fully in line with our strategy
FoodTech Acquisition of Hotraco – fully in line with our strategy Dutch Hotraco • developer of control systems & sensors for the agricultural sector • +45 000 controllers installed globally within livestock (primarily poultry), crop storage & greenhouse • strong footprint in crop storage & strengthe
Slide 16: Conclusion reached in strategic review of FoodTech equipment
FoodTech Conclusion reached in strategic review of FoodTech equipment – increased focus on digital FoodTech Controllers, FoodTech equipment Software, IoT & Sensors In 2023, a strategic review of the Ambition: become the global leader in Equipment business within FoodTech connecting and optimizing th
Slide 17: Financial highlights
Financial highlights @
Slide 18: Strong growth and profits, but continued weak battery outlook
Group Strong growth and profits, but continued weak battery outlook • Net Sales increased; Change (%) Q3 Q3 • AT - declined org. due to continued weak battery sub- 2024 2023 Organic Structural Currency MSEK growth growth* effects segment in APAC & Americas • DCT – stable growth, successful deliverie
Slide 19: Strong profitability driven by product mix and operational excellence
Adjusted EBITA-margin Strong profitability driven by product mix and operational excellence Group adj. EBITA margin impact Main factors affecting adj. EBITA margin in Q3: Q3 2023 • Volume had a neutral impact - decline in adj. EBITA % 14.1 AirTech whereas DCT contributed with stable growth & FoodTec
Slide 20: Cash flow impacted by project completions
Cash flow Cash flow impacted by project completions Group Cash Flow YTD, MSEK Cash flow from changes in WC 1 800 Q3 2024 Q3 2023 1 600 Change in accounts receivable 160 -119 1 400 244 1,300 Change in inventory -132 161 1 200 Change in accrued income 20 60 -1,157 1 000 Change in accounts payable -34
Slide 21: Investments supporting next growth wave
Investments supporting CAPEX (quarterly) 400 10% next growth wave 7.9% MSEK %-net sales 200 5% Continued investments aiming at strengthening competences, upgrades, 0 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 0% digitalize & automize 2022 CAPEX 2023 CAPEX % of net sales 2024 • DCT (Q4 2024): new plant in Cork, Euro
Slide 22: Maintaining a stable leverage ratio
Leverage & net debt Maintaining a stable leverage ratio Development of leverage & net debt 3.0 2.9 3,0 Leverage ratio increased* 2.7 2.7 1 000 Net debt increased*: 2,5 • acq. of AEI 2.2 • included lease liabilities related to -1 000 2,0 2.1 a new facility in Ireland 2.0 1.9 1.8 1,5 MSEK -3 000 1,0 -
Slide 23: Advancement towards our strategic sustainability targets
Advancement towards our strategic sustainability targets Targets for 2030 End of September 2024 (2023) Reduce CO2e emissions Scope 1 & 2: Net zero Scope 3: reduction in line E Renewable electricity, factories 79%1 (80) with the Paris agreement 1.5°C. Gender Equity 30% women % of women in workforce 2
Slide 24: Service ambition in line with strategic direction
Service ambition in line with Service & Components Q3 2024* strategic direction % of net sales 7% 4% 1% 23% Munters ambition: 11% • AirTech • grow our large globally installed base AirTech DCT FoodTech Components Total • continous innovation service service service • DCT • develop remote service opt
Slide 25: Summary
Summary
Slide 26: Progression towards our financial targets
Financial targets Progression towards our financial targets Currency adj. growth* Adj. EBITA margin OWC/net sales** 20% 40% 16.2% 15% 11.3% 15% Financial target >14% 30% Financial target range 13-10% 10% 10% 20% 10% 5% Financial target >14% 5% 10% 0% 0% 0% Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q3 Q4 Q1 Q2 Q3 Q
Slide 27: Quarterly highlights
Quarterly highlights Strong demand in Battery market Strengthened market Solid growth & robust majority of end-user continued weak position through M&A profits driven by segments outlook and partnerships strong net sales
Slide 28: Q&A Q3 report 2024
@® Munters Q3 report 2024
Slide 29: Forward-looking statements disclaimer
This presentation contains forward-looking statements that reflect Munters’ current expectations on future events and Munters’ financial and operational development. Although Munters believes that the expectations reflected in such forward-looking statements are based on reasonable assumptions, no a