Munters Group Ab · OMXSTO:MTRS
Munters Group Ab — Investor Day (May 2019)
14 slides from Munters Group Ab's investor day presentation, May 2019
Slide 1: Agenda – platform for today and the future
Agenda – platform for today and the future CEO – Munters Towards Full Potential • A strong company – but disappointing performance since IPO • Global player in niche markets • Full Potential Program to seize opportunities Global Operations – Building a customer-oriented and scalable platform AirTech
Slide 2: Attractive financial profile, but we have not met our financial targets
Attractive financial profile, but we have not met our financial targets Strong Net Sales growth Profitability negatively impacted by DC Consistent high cash generation 13% 8,000 800 600 CAGR = 13% 10% 10% 9% 9% 6,000 600 400 8% 200 4,000 400 0 2,000 200 -200 0 0 2014 2015 2016 2017 2018 Q1 2019 2014
Slide 3: Financial profile is better when excluding Data Centers
Financial profile is better when excluding Data Centers – moderate slower sales growth but firmer margin Net Sales growth 2 p.p. lower without DC Margins 3 p.p. higher without DC (2018, Q1 2019) Consistent high cash generation 14% CAGR = 11% 800 12% 12% 600 12% 11% 6,000 600 9% 400 4,000 400 200 2,0
Slide 4: Services is a high margin activity, with large potential to be captured
Services is a high margin activity, with large potential to be captured Service Net Sales 2014-2019 mSEK % 850 11,8 800 11,6 11,4 • High growth of 17% 750 700 11,2 CAGR between 2014- 650 11,0 2018: 10,8 600 10,6 • Consistent growth 550 10,4 500 10,2 • Resilient to Munters 450 10,0 lumpiness 400 9,8
Slide 5: Full potential program (FPP) - full impact expected in 2020
Full potential program (FPP) - full impact expected in 2020 Program 2019 adj. EBITA impact 2020 adj. EBITA impact One-time costs Cash pay-back time – equals ongoing annual run-rate mSEK -350 costs Approx. Total program impact mSEK +105 mSEK +210 (60% during H1 and 40% during H2 2019) 2 years Timing
Slide 6: Key costs / structure and early encouraging signs from FPP
Key costs / structure and early encouraging signs from FPP Full Potential Program brings OH down 39% 2,800 37% 37% 37% 36% 35% 35% 3% 2,400 3% 2,000 2% 13% 2% 12% • OH cost increases mainly driven 1,600 3% 12% by Services, China and R&D 13% 1,200 14% 8% 7% • FPP will generate Run-rate 8% savings of
Slide 7: Considerations to improve gross profit and EBITA
Considerations to improve gross profit and EBITA Gross margin flat since IPO Adjusted EBITA down since IPO • Low performance mainly driven by DC, 34% 35% 13% but improvement potential across the 2500 33% 32% 800 32% 32% Group 10% 10% 2000 9% 9% • Different initiatives under implementation 600 8% in
Slide 8: Currency exposure largely naturally hedged
Currency exposure largely naturally hedged Currency Transaction exposure (2018) Currency Sensitivity Table 3.0% 5,0% 1,0% 1,0% ` Estimated effect on EBIT 2.0% 1.0% 1,0% 1,0% 2.0% 1.0% 2.0% 1,0% SEK +10% compared with mSEK % • Good balance between sales and 2.0% 3.0% 2.0% 2.0% 3.0% 7,0% USD -54.0 -11
Slide 9: Very strong cash flow dynamics
Very strong cash flow dynamics High cash generation Increased focus on reducing NWC Munters is CapEx light, low CapEx levels in FPP 16.1% 15.7% 15.7% 15.3% 15.2% 600 1200 180 13.7% 160 1000 400 140 800 120 200 600 80 0 400 60 40 200 -200 20 0 0 2014 2015 2016 2017 2018 Q1 2019 2014 2015 2016 2017 20
Slide 10: Capital structure allocations priorities
Capital structure allocations priorities Current capital structure, mSEK 1 080 853 Goodwill 638 Other Intangible Assets 1 480 2 843 Tangile Assets Operating Working Capital 4 218 Equity Key priorities for Capital Allocation 3 720 Net Debt 1. Achieve strong balance sheet – Other Working Capital Items
Slide 11: Financial targets
Financial targets “Munters’ objective is to achieve an annual organic revenue growth of 5%, Growth 5% supplemented by selective acquisitions” EBITA margin 14% “Munters’ mid-term target is to have an adjusted EBITA margin of 14%” Capital “Munters’ target is to maintain a ratio of net debt to adjusted
Slide 12: Agenda – platform for today and the future
Agenda – platform for today and the future CEO – Munters Towards Full Potential • A strong company – but disappointing performance since IPO • Global player in niche markets • Full Potential Program to seize opportunities Global Operations – Building a customer-oriented and scalable platform AirTech
Slide 13: We are confident we can deliver on our financial targets
We are confident we can deliver on our financial targets • We operate in attractive markets driven by strong sustainability oriented global trends Net Sales growth of 5% Adjusted EBITA Margin of 14% mid-term • We pursue leading positions in selected market segments Net Debt/adjusted EBITDA ratio of
Slide 14: Questions & Answers
Questions & Answers ® Munters