Slide 1: Munters Q1 report 2024
Munters Q1 report 2024 Klas Forsström, President and CEO Katharina Fischer, GVP and CFO Ann-Sofi Jönsson & Line Dovärn, Investor Relations
Slide 2: High demand and profitable growth
High demand and profitable growth Continued high demand… … drives stable net sales and... … enhanced profitability Order intake Announced orders* Order backlog MSEK Adj. EBITA Adj. EBITA margin Net Sales MSEK MSEK 15 000 600 16% 11 812 14.1 6 000 6 000 14% 10 000 3,538 400 12% 4 000 4 000 3 368 10%
Slide 3: Americas and EMEA main growth drivers
Americas and EMEA main growth drivers Regional share Q1 Order intake Net sales Order intake Net sales Order intake Net sales 17% 14% 21% 42% 41% 65% Americas - order intake EMEA - order intake APAC- order intake • AirTech – Components & Service good • AirTech – good development especially in • AirTe
Slide 4: Solid order backlog – large orders supportive into 2025
Solid order backlog – large orders supportive into 2025 2022 2023 2024 2025 MUSD 115 US colocator SyCool Split solutions MUSD 65 US car manufacturer Climate control systems MUSD 63 US colocator Standard chilled water (CRAHs) MUSD 176 US colocator SyCool Split solutions MUSD 54 Multinational car manu
Slide 5: All segments - stable order intake trends
AirTech All segments - stable order intake trends Order Intake increased primarily EMEA >5% ~ 1-5 % ± 0 -1% neg but also Americas, whereas APAC lower; % order intake Market • Industrial- good growth especially in EMEA. Battery in EMEA very Customer segment Q1 2024 Outlook * strong, whereas cont. wea
Slide 6: Lower volumes & investments affecting margin
AirTech Lower volumes & investments affecting margin Net Sales decreased, growth in Americas Q1 Q1 Change (%) offset by weak APAC & EMEA; MSEK 2024 2023 Org. Struct* FX • Battery – strong growth Americas, weaker APAC & EMEA Order intake 2,255 1,686 29 7 -3 • CT– stable APAC, weaker Americas & EMEA O
Slide 7: Solid development in several segments
AirTech Solid development in several segments MSEK Order intake per segment 3 000 2 500 • Variations in large orders i.e., batteries 2 000 • Other industrial good 1 500 growth • CT steady development 1 000 • Commercial increase 500 through Zeco acquisition 0 • Service & Components Q1 2022 Q2 2022 Q3
Slide 8: Enhancing our Clean Technology portfolio
AirTech Enhancing our Clean Technology portfolio Acquisition of Airprotech • Italian manufacturer of Volatile Organic Compounds (VOC) abatement systems • Enhances air purification offering and addresses growing demand for abatement services in Europe • Positions us to offer complete systems and serv
Slide 9: Increased demand & strengthened order backlog
Increased demand & strengthened Data Center Technologies order backlog >5% ~ 1-5 % ± 0 -1% neg Customer Order Intake Market segment Q1 2024 Outlook * Order Intake increased; Hyperscaler 0% • mainly co-locator segment, Americas • underlying demand remains very strong Order Backlog increased; Co-locat
Slide 10: Significant profitability increase
Data Center Technologies Significant profitability increase Change (%) Q1 Q1 2023 Org. Struct* FX 2024 Net Sales strong increase; MSEK • good deliveries on large projects, proceeding Order intake 343 293 17 0 0 according to plan Order backlog 7,003 5,564 • EMEA good development Net sales 956 653 47
Slide 11: Expanding DCT facilities in Ireland to meet the demand
Data Center Technologies Expanding DCT facilities in Ireland to meet the demand DCT Europe – Expansion • Expansion in Cork, Ireland with the establishment of new facilities with ~11,000m2 production and office space • Initially, around 100 employees will be able to produce the full DCT product range
Slide 12: Strong demand and strengthened order backlog
Strong demand and FoodTech strengthened order backlog >5% ~ 1-5 % ± 0 -1% neg % order intake Market Customer segment Q1 2024 Outlook * Order Intake increased; • CS – primarily driven by Americas & EMEA, slightly Climate Solutions (incl. offset by APAC Controllers) 87% • DS – strong growth in America
Slide 13: Enhanced profitability and net sales
FoodTech Enhanced profitability and net sales Change (%) Q1 Q1 Net Sales increased; MSEK 2024 2023 Org. Struct* FX • contributions from mainly Americas Order intake 786 581 32 5 -2 • CS – Americas good growth, EMEA slightly Order backlog 1,122 878 negative & decline in APAC Net sales 596 512 10 8 -2
Slide 14: Climate solutions – EMEA good recovery in all segments
FoodTech Climate solutions – EMEA good recovery in all segments Greenhouse order in EMEA • EMEA contractor, serving UAE end-users and farms • Solution offered CELdek evaporative pads & Air circulation fans and air extraction fans • Munters selected for the strong track record of customer satisfactio
Slide 15: Digital solutions - Significant SaaS growth
FoodTech Digital solutions - Significant SaaS growth Key order in Americas strengthens cloud ARR* (mSEK) footprint in poultry +68% • Large US turkey company, subsidiary of a major food corporation • Customer experienced challenges with data security, local installation and user friendliness of previ
Slide 16: Advancement towards our sustainability goals
Advancement towards our sustainability goals End of March 2024 Goal Renewable electricity, factories 78% (79) Net zero Scope Energy efficiency, factories1 0.57 (0.51) emissions 1&2 by 2030 Recycling rate (LTM) 47% (49) Health & TRIR2 (LTM) 1.4 (2.0) Zero Safety accidents 30% % of women in workforce
Slide 17: Financial highlights
Financial highlights &
Slide 18: Enhanced profitability, good cash flow & improved leverage
Group Enhanced profitability, good cash flow & improved leverage Q1 Q1 Change (%) 2024 2023 Organic growth Structural growth* Currency effects MSEK • Net Sales increased; Order intake 3,368 2,544 29 6 -2 very strong growth in DCT Order backlog 11,812 10,783 strong growth in both segments in FT N
Slide 19: Strong margin improvement in FoodTech & DCT
Adjusted EBITA-margin Strong margin improvement in FoodTech & DCT Group adj. EBITA margin impact Main factors affecting adj. EBITA margin in Q1: Q1 2023 12.3 • Strong volume increase driven by DCT & FT adj. EBITA % Volume ++ • Net pricing increases contributed to margin improvement mainly in DCT & F
Slide 20: Profitable growth and cash flow generation
Cash flow Profitable growth and cash flow generation Group Cash Flow YTD, MSEK Cash flow from changes in WC Q1 2024 Q1 2023 Change in accounts receivable -167 -19 Change in inventory -88 -120 215 -232 Change in accrued income 115 -43 338 Change in accounts payable -1 -128 Change in advances from cus
Slide 21: Investing for the future
PPE & Intangibles Investing for the future 800 6% 5% 600 4% Investments in PPE and intangibles in 2024, %-net sales MSEK 400 3% to support growth: 2% • Investments aiming at strengthening 200 1% competence, upgrade, digitalize & automize 0 0% • AirTech: Amesbury, new major plant in Q1 Q2 Q3 Q4 Q1 Q2
Slide 22: Decreased leverage ratio 3 quarters in a row
Leverage & net debt Decreased leverage ratio 3 quarters in a row Development of leverage & net debt 3.0 2.9 2.9 3,0 2.6 2.7 2.7 • Leverage ratio decreased mainly 1 000 2,5 driven by increased adj. EBITA 2.2 • Net debt stable, affected by: -1 000 2.1 2,0 2.0 acquisitions financed partly by debt dur
Slide 23: Summary
Summary &
Slide 24: Progression towards our financial targets
Financial targets Progression towards our financial targets Net sales growth* Adj. EBITA margin OWC/net sales** 40% 15% 14.1% 13.6% 15% Financial target >14% Financial target range 13-10% 30% 10% 10% 20% 5% 7% 5% 10% Financial target 10% 0% 0% 0% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
Slide 25: Very strong start of the year
Very strong start of the year Byt bild High demand drives Enhanced profitability and Investing for a continued strong good cash flow resulting in sustainable future momentum improved leverge 25
Slide 26: Questions & Answers
Questions & Answers Questions & Answers Q1 report 2024
Slide 27: 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