Slide 1: Q1 report 2023
’ iy od “s iv ° a ° \ » \SI ee 1 ee ' Munters Q] report 2023 Klas Forsstrém, President and CEO Annette Kumlien, GVP and CFO Ann-Sofi Jonsson & Line Dovarn, Investor Relations ¥ > 7 q e ; \ ’ ° i | . i j ® . i. a
Slide 2: A quarter with strong, profitable growth
A quarter with strong, profitable growth MSEK —— Order Intake 6000 4000 2000 Ql Q2 @3 @4 QI Q@2 @3 @4 Qi 2021 2022 2023 Order intake, Q1 FX-adj. -43% (org. -44%): * underlying solid market activity * no larger orders received in the quarter * excl. major orders received in Q1 2022!, order intake dec
Slide 3: Q1 — stable underlying demand in all regions
3 Q]1 — stable underlaying demand in all regions Regional share Order intake Net sales Americas - order intake * Airlech — Components, CT’ & Service showed good growth * DCT - continued solid market activity from the colocation market * FoodTech — good growth within DS and broiler & layer within CS
Slide 4: Climate change & digitalization are strong market drivers
Climate change & digitalization are strong market drivers Climate change Digitalization Population growth Higher production demands Current market situation * Geopolitical instability * Macroeconomic uncertainties + Inflationary pressure * Eased supply chain constraints Consequences and opportunitie
Slide 5: Climate change & digitalization are strong market drivers
Climate change & digitalization are strong market drivers MSEK 7 000 6000 5 000 4000 3.000 2.000 1.000 (0) mam Remaining business Order intake Q1 2021 =Q22021 Q32021 @42021 mmm Service Ql 2022 Battery i | Q22022 32022 DCT - large orders Q4 2022 Net Sales Ql 2023 Strong growth in prioritized areas Re
Slide 6: AirTech — Continued strong market outlook
Airlech — Continued strong market outlook % order intake = Market Customer segme: Q1 2023 Outlo Comments Industrial 50% A Overall strong outlook _.whereofbattery 23% A “ vo acne nulegee trend and investments in new battery ..whereof food processing 8% a Continued stable market outlook ... whereof ot
Slide 7: We support the world's first e-methanol factory
We support the worlds first e-methanol factory * 15 industrial scale hydrogen plant for manufacturing synthetic fuels in Chile * E-fuels are carbon-neutral & compatible with existing combustion engines * Munters play a part in building the facility * Our mist elimination technology captures the CO2
Slide 8: DCT — stable underlying market demand
8 DCT — stable underlying market demand Oo ha % order intake = Market Customer Segments QI 2023 Outlook“ _ Comments Increase in cloud traffic & connectivity services continues to drive growth. fvmerecalert 0% =» Hyperscalers are streamlining their operations, recalibrating their data center design t
Slide 9: Value chain perspective on our climate impact
Value chain perspective on our climate impact Munters is mapping and reporting 100% of Scope 1, 2 and part of Scope 3 aT Munters major emission impact is related to Scope 3 and use of our products * We are increasingly conducing LCAs* of our products to get an assessment of the product's carbon foot
Slide 10: FoodTech — US good demand
10 FoodTech — US good demand are ae % order intake Market Customer segment Q1 2023 Outlook * Climate Solutions 88% ... whereof Broiler 48% A ... whereof Swine 11% SY ...whereof Layer 17% ...whereof Greenhouse 5% aA whereof Dairy 5% Digital Solutions 12% A * Market outlook and comments are indicative
Slide 11: Our fans handle even the toughest conditions
Our fans handle even the toughest conditions * High temperatures can cause major problems for poultry farmers * Munters Saturn FIVE extraction fans, can mitigate extreme weather situation & stabilize production * Paolo Furegon, chicken farmer, Italy: — Capacity of 2 million chickens a year — Replace
Slide 12: Munters focus areas
12 Munters focus areas ILLUSTRATIVE Direction of positioning - 2023 and beyond Profitability FoodTech Digital Solutions Data Center Technologies Growth Growth Profitability Stability Focus areas 2023 and beyond AirTech * Continued progression on profitable growth * Service & energy efficent solution
Slide 13: AirTech segments
Airlech segments ILLUSTRATIVE Direction of positioning for Airlech — 2023 and beyond Profitability st Battery Growth Growth Profitability Stability Focus areas 2023 and beyond Service * Developing service offer in a three-pronged way * 1) Digitalization, 2) increased service share of installed base
Slide 14: Our purpose - For customer success and a healthier planet
Our purpose - For customer success and a healthier planet As of Q1 2023" As of FY 2022 79% 14% 52% Oe (62) (16) (2021: 55) (2021: 0.89) Percentage women Allbright 5 leaders’** Bement CDP rating 2023 distribution in mgmt B 22% team placed us on the Greenstock (22) Exchange List — (2022: c) Total Reco
Slide 15: Financial highlights
Financial highlights
Slide 16: Strong progress in the quarter
16 Strong progress in the quarter Mid-term Ql targets 2022 Net sales growth Org. growth p.a. over a 10% 16% business cycle Adjusted EBITA- . >14% 9.5% 12.3% margin OWC/net sales* 13-10% 13.4% 12.7% * Average OWC (Operating Working Capital) last twelve months as % of net sales for the same period @ M
Slide 17: Strong net sales and strong margins
Strong net sales and strong margins ° O| decreased -43% (FX-adj) as no larger 17 orders were received in the quarter; = Ol decreased -18% (FX-adj) excl. major orders received in Q1 2022! NS increased +40% (FX-adj); = Very strong growth in DCT & battery in AT * Services 13% of total net sales Adj. EB
Slide 18: Margin improvement in all business areas
Margin improvement in all business areas Group adj. EBITA margin impact 2022 adj. EBITA % Ql 9.5 Volume Net pricing Operational efficiency Supply chain Regional mix ++ ++ + Strategic investments 2023 adj. EBITA % 12.3 Main factors affecting adj. EBITA margin in Q1: Strong volume increase driven by D
Slide 19: Strong profit and net sales growth
Strong profit and net sales growth ° Ol +1% (FX-adj), stable development in all regions; = Components good growth all regions ™ Services growth in Americas & EMEA, slightly offset by APAC * NS +35% (FX-adj), strong growth in all regions; = Battery good growth in APAC & EMEA = Components good growth
Slide 20: Significant net sales & margin increase
Significant net sales & margin increase ° O| declined -86% (FX-adj) but underlying 20 long-term demand still strong; = Excl. large order of ~MUSD 115 received Q1 2022, decline of -67% (FX-adj) = Current market activity somewhat dampened due to orders placed in advance previous quarters NS increased
Slide 21: Actions taken to improve margin coming through
Actions taken to improve margin coming through * Ol declined -23% (FX-adj); = Excl. large SaaS order of MUSD 19 in Q1 2022, order intake increased +4% (FX-adj) = Americas, both DS* & CS** stable development. CS mainly in the US broiler & layer segments * China & EMEA continued weak markets * NS decr
Slide 22: Cash flow & net debt
Cash flow & vel Preparations for deliveries in large projeds led to increased OWC MSEK Cash flow for the period Net debt / adi. EBITDAx, LTM — Cash flow from operating “\s 1200 activities 4 800 4 400 2 0 5 1 -400 oa e a «© @ @ @ a ~$00 spaloruisun OctSep lonDec AprMariusun OetSeplon-Dee ApeMr © Tau
Slide 23: CFO focus - Create a resilient company
CFO focus - Create a resilient company Performance management * Strategy & strategy deployment focus ° Best practices 23 Growth Organic & inorganic (M&A initiatives) Profit * Investments to secure scalability and increased efficiency Profit sana Cash generati Increased focus o Cc Digital transformat
Slide 24: Summary
Summary
Slide 25: Major strategic progress in the first quarter
Major strategic progress in the first quarter A quarter with significant growth and strengthened margin Strong improvement of profitability Continued high strategic investments for growth ® Munters
Slide 26: Questions & Answers