Munters Group Ab · OMXSTO:MTRS
Munters Group Ab — Q3 2019 Earnings Presentation
24 slides from Munters Group Ab's earnings presentation, 2019
Slide 1: Munters Third Quarter
MUNTERS THIRD QUARTER Stable demand, strong organic net sales growth and improved profitability Klas Forsström, President and CEO Annette Kumlien, GVP and CFO
Slide 2: Agenda
Agenda Highlights January – September 2019 Q3 and January – September 2019 results Update on Munters Full Potential Program Summary and outlook 2
Slide 3: Highlights during Q3 2019
Highlights during Q3 2019 Stable demand at high level Strong net sales growth Adj. EBIT-margin improved Management changes Net sales Adj. EBITA-margin SEKm 16% 2 000 11% organic increase in Q3 14% 12% 1 500 10% 1 000 8% 6% 500 4% 2% 0 0% Q3 Q4 Q1 Q2 Q3 Q3 Q4 Q1 Q2 Q3 2018 2018 2019 2019 2019 2018 20
Slide 4: European Data Centers operation incurs additional costs
European Data Centers operation incurs additional costs • Data Centers operation in Dison, reported as discontinued operations in interim report Jan-Sep 2019 • A provision taken for estimated additional non-recurring costs of estimated SEKm 116 in Q3 2019 related to the closure of the Data Centers f
Slide 5: Overall stable demand
Overall stable demand Order intake development, currency adjusted • Americas: Americas EMEA APAC Share of orders received R12, % 41% 36% 23% • Strong order intake in Data Centers, US YTD vs. last year, % +3% +11% -5% • Order intake in Supermarket sub-segment, US, remained Last 3 months vs. last year
Slide 6: Munters Full Potential Program – Q3 2019
Munters Full Potential Program – Q3 2019 Munters Full Potential Program (FPP) launched in Feb. 2019: • FPP program in line with plan, with total run-rate overhead savings on an annual basis in line with the targeted level • Moving into Phase 2 of FPP program during fall 2019 6
Slide 7: Third quarter 2019 financial highlights, SEKm
Third quarter 2019 financial highlights, SEKm * +6% +10% • Order intake increased by 6% Order intake Backlog • Net sales for continuing business increased by 16% 1,680 2,440 • Adjusted EBITA increased to SEKm 248 (186) • Net income was SEKm 104 (59) incl. non-recurring items +16% +33% Net sales Adj.
Slide 8: AirTech Q3 2019 – strong net sales growth
AirTech Q3 2019 – strong net sales growth • Stable order intake, organic growth 5% • Strong net sales with organic growth 18%, driven by: ‒ Growth in parts of sub-segment Industrials, ‒ Data Centers US, ‒ Mist Elimination; and ‒ Services • Adjusted EBITA margin increased to 12.9% driven by savings f
Slide 9: Innovation: Launch of AirC
Innovation: Launch of AirC • Munters has launched a new AirC control platform • AirC – help customers optimize energy consumption and allow service and system updates through remote access • Digital display gives operators access to everything from system status to the humidity controls • AirC – ena
Slide 10: FoodTech Q3 2019 – impacted by low demand in Americas
FoodTech Q3 2019 – impacted by low demand in Americas • Order intake decreased, organically -7% ‒ Order intake in the layer and broiler markets increased ‒ Offset by weak demand from swine market in the US and China caused by ASF, effects from trade tariffs and overcapacity in the US market • Net sa
Slide 11: Improved efficiency with MTech integrated system
Improved efficiency with MTech integrated system • Order received for an SaaS*, End-to-End solution from Claxton Poultry in the third quarter 2019 • Claxton sell around 300 million pounds of chicken annually to 750 customers from mom-and-pop restaurants to national US chains like Chick-fil-A • The o
Slide 12: Agenda
Agenda Highlights January – September 2019 Q3 and January – September 2019 results Update on Munters Full Potential Program Summary and outlook 12
Slide 13: Stable demand
Stable demand Q3 2019 • Order intake grew by 6% (1% organic) +6% SEKm Airtech: • Growth driven by a few large orders received from the lithium battery industry • Very strong growth in Services (8% organic) • Continued weak demand for Supermarkets Foodtech: • Order intake remained weak in the America
Slide 14: Strong organic net sales growth
Strong organic net sales growth Q3 2019 • Net sales increased by 16% (11% organic) +16% Airtech: SEKm • Growth with 18% organically with an organic growth Services of 16% • Growth in Data Centers solutions in the US and Mist Elimination. Offset by decreased deliveries to the commercial sector as wel
Slide 15: Improved profitability
Improved profitability Q3 2019 • Adjusted EBITA increased by 33% +33% SEKm • Adjusted EBITA margin was 13.7% (12.0) AirTech: • Improvement driven by: ‒ Savings from the initiatives run within the FPP program ‒ Net sales growth; and ‒ Improved utilization rates in the Data Centers operations in the U
Slide 16: First nine months 2019 – summary
First nine months 2019 – summary • Order intake increased 10% of which 4% was organic • Net sales increased 14% of which 8% was organic Q3 Jan-Sep SEKm 2019 2018 ∆ 2019 2018 ∆ • Adjusted EBITA improved by 28% to SEKm 641 (500), Order backlog and adjusted EBITA margin improved to 12.1% (10.7) 2,448 2
Slide 17: Agenda
Agenda Highlights January – September 2019 Q3 and January – September 2019 results Update on Munters Full Potential Program Summary and outlook 17
Slide 18: Run-rate savings
STABILITY – Secure stable and profitable platform Savings progressing according to plan Full Potential Program savings 2019 end-of-year run-rate target = SEKm 160 • FTE reductions and other cost savings in line with plan, end of Sep. 155 MSEK • 2019 end-of-year run-rate target of Run-rate savings SE
Slide 19: EBITA-bridge for Q3 2019 and Jan-Sep 2019
EBITA-bridge for Q3 2019 and Jan-Sep 2019 Total adj. EBITA SEKm 230 Total Adj. EBITA SEKm 582 Total IACs SEKm - 367 Total IACs SEKm - 468 19
Slide 20: Agenda
Agenda Highlights January – September 2019 Q3 and January – September 2019 results Update on Munters Full Potential Program Summary and outlook 20
Slide 21: Summary
Summary • Good underlying order intake and net sales growth, with softer order intake expected second half vs first half of 2019, impacted by weaker economic climate in Europe and trade restrictions • Munters Full Potential Program well on track • Significantly improved Group adj. EBITA expected for
Slide 22: Moving into Phase 2 of FPP program during fall 2019
Moving into Phase 2 of FPP program during fall 2019 PHASE 3: GROWTH Co-operation Growth in attractive seg. geographies PHASE 2: PROFITABILITY Customer focus and Improve performance Innovation PHASE 1: STABILITY Operational excellence Secure stable and profitable platform Feb. 2019 Dec. 2019 • Focus
Slide 23: Sustainable operations
Sustainable operations • The core of Munters is to help customers become more efficient in a sustainable way ‒ Growth areas driven by need for more sustainable and efficient operations ‒ Example of market drivers: litium batteries for electrification, animal welfare, human health, increasing data tr
Slide 24: Questions & Answers
Questions & Answers @® Munters