Munters Group Ab · OMXSTO:MTRS
Munters Group Ab — Q1 2022 Earnings Presentation
22 slides from Munters Group Ab's earnings presentation, Apr 22, 2022
Slide 1: Q1 report 2022
BEA) BSS) Bsa) wes eee exenea/ excrer/ rere, Munters Md Peas x i Die i Q1 report 2022 : i pe ay Klas Forsstrém, President and CEO | Annette Kumlien, GVP and CFO Ann-Sofi Jonsson & Line Dovarn, Investor Relations iN @ Munters
Slide 2: Growing megatrends drive record high order intake
Growing megatrends drive record high order intake Continued strong order intake... MSEK 4000 3.000 2000 1.000 ° Q220 Q320 Q420 Q121 Q221 Q321 Q421 Q122 Order intake, Q1 increased by 107% * Of which fx-adj. 91% and organic 87% * Execution on strategic priorities : * Acquisition of Edpac * MTech SaaS
Slide 3: Effects from the war in Ukraine
Effects from the war in Ukraine Munters has ~1.5% of net sales p.a. and no employees in Russia IACs* of MSEK -29 were identified in Q1 related to the war; * MSEK -18 recorded as a provision * MSEK -11 will be taken as incurred IACs mainly related to FoodTech; inventory write-downs, rightsizing and a
Slide 4: Strong growth in Americas for both business areas
Strong growth in Americas for both business areas Americas, 49% of total order intake EMEA, 28% of total order intake APAC, 23% of total order intake * Airlech - mainly growth within Data * Airlech - growth within most areas, * Airlech - growth, primarily within Centers mainly Battery sub-segment &
Slide 5: Adaptions of operations to facilitate growth
Adaptions of operations to facilitate growth Meera curieanncat . Trend commodity price | Macro environment | Operations development (YoY) “ff: . sos . soe . . Steel aaa . Dificulies anticipating fing of deliveries of Pig lron 1“ input goods and components * War in Ukraine has P 3 P . Zinc aa led to
Slide 6: AirTech — strong demand within Data Centers
Airlech — strong demand within Data Centers 15% BH neg Customer segment Industrial ...whereof Battery ... whereof Food processing .. whereof Other Data Centers Components * * Clean Technologies Commercial Services order intake Market Q1 2022 Outlook * 25% a 12% ” 4% @ 9% @ 52% a 6% y 3% @ 2% 12% a *
Slide 7: Our largest order ever for the delivery of SyCool Split
Our largest order ever for the delivery of SyCool Split * Order received from leading data center colocation operator in US. Total value approx. MUSD 115 (including SyCool Split and field service work) * Deliveries starting in Q4 2022 through Q1 2024 * Data center segment is a prioritized growth are
Slide 8: https://www.munters.com/en/campaigns/airt-campaigns/clean-technologies
• • • • • • • • https://www.munters.com/en/campaigns/airt-campaigns/clean-technologies
Slide 9: FoodTech — a market in transformation
FoodTech — a market in transformation A -15% Bree Market Customer segment Climate solutions ...whereof Broiler ... whereof Swine ...whereof Layer ..whereof Greenhouse ...whereof Dairy Digital Solutions % order intake Q]1 2022 73% Pee £0-1% Outlook * Comments 40% 15% s 8% 5% 4 5% 27% 4 * Market outlo
Slide 10: US Integrator upgrades to Amino solution
10 US Integrator upgrades to Amino solution Amino- software platform for the future: * Poultry farm management platform that connects the integrators supply chain * An easy-to-use cloud-based SaaS solution * Allows us to move away from on premises services First upgrade from Protein v7 to Amino done
Slide 11: Sustainability integrated in every aspect of the business strategy
Sustainability integrated in every aspect of the business strategy For customer success and a healthier planet Achievements during the quarter: 2021 reporting of measurable Scope 1, 2 ) and 3 emissions in accordance with the Greenhouse Gas Protocol* 2021 reporting according to the EU Taxonomy Direct
Slide 12: Financial highlights
Financial highlights
Slide 13: Strong growth and investing for the future
Strong growth and investing for the future Net sales growth Org. growth p.a. over a business cycle 13 Adjusted EBITA- margin Capital structure (LTM*) (Leverage: Net debt / adj. EBITDA) *LTM = Last Twelve Months Mid-term targets 5% 14% 1.5x-2.5x Ql 2021 14% 12.3% 1.9x Ql 2022 16% @ Munters
Slide 14: Another quarter with record high order intake
Another quarter with record high order intake * Order intake at record levels — strong demand in markets driven by digitalization and electrification in business area AirTech * Net sales increase mainly driven by business area Airlech * Adj. EBITA margin seasonally strong but lower on the back of ex
Slide 15: Strong growth driven by transformative markets
Strong growth driven by transformative markets Record order intake driven by very strong growth in sub-segment Battery, Data Centers and Services Net sales increased driven mainly by sub- segment Battery and Services — Services grew in all regions and amounted to 19% of total net sales Adj. EBITA ma
Slide 16: Order intake growth driven by Americas
Order intake growth driven by Americas * Increase in order intake driven by good growth in Digital Solutions (SaaS orders) and Climate Solutions in Americas * Net sales increased driven by good development in Climate Solutions in the US and EMEA, offset by a weak swine market in China, effects from
Slide 17: Price increases coming through, intensified supply chain challenges
Price increases coming through, intensified supply chain challenges Main factors affecting adj. EBITA margin in Q1: Group adj. EBITA margin impact * Positive impact from volume increase with good growth in Ql Airlech and Digital solutions in FoodTech 2021 adj. EBITA % 12.3 . . wee * Increased custom
Slide 18: Growth journey Q1- acquisition and increasing volumes
Growth journey Q1- acquisition and increasing volumes flow developme — Cash flow from operating acivities 1200 Cash flow for the period Jon-Dec Apr-Mar JulJun Oct-Sep Jan-Dec Apr-Mar Jul-Jun OctSep Jan-Dec Apr-Mar 2019 2020 2020 2020 2020 2021 2021 2021 2021 2022 * Operating cash flow lower as: * lo
Slide 19: Measures for strategy implementation on track
Measures for strategy implementation on track <7 * Strategy implementation measures Realized costs and expenses of about MSEK 145 ‘Approx. 70% of savings realized Implementation according to plan, finalization in 2023 * Strategy implementation activities to continue, preparation for finalization in
Slide 20: Summary
Summary
Slide 21: Summary
21 Summary: Foy Record high order intake strengthens way forward Continued strong order intake driven by growing megatrends Price increases 2021 partly coming through and adjustments continue, partly offset by intensified supply chain challenges following war in Ukraine. Supply chain challenges expe
Slide 22: Questions & Answers
oe go pee gee @ Munters Wyecae eee wea Questions & Answers