Munters Group AB · OMXSTO:MTRS
Munters Group AB — Q1 2018 Earnings Presentation
21 slides from Munters Group AB's earnings presentation, 2018
Slide 1: Munters first quarter 2018
Munters first quarter 2018 Solid organic net sales growth
Slide 2: Solid organic net sales growth
Solid organic net sales growth • Order intake decreased by 1% and increased by 2% organically. Low activity level in the Order intake -1% Backlog +26% Data Center market during the quarter with SEKm SEKm no large orders signed • Net sales increased by 5% and organic 1,635 2,516 growth was 7% • Adjus
Slide 3: Q1 2018 – Order intake and net sales bridge
Q1 2018 – Order intake and net sales bridge • Organic order intake growth of 2% • Organic net sales growth of 7% • Negative FX impact on order intake and net sales Order intake, SEKm Q1 D% Net sales, SEKm Q1 D% 2018 1,635 2018 1,601 2017 1,654 2017 1,519 Change -19 -1 Change 82 +5 Organic growth 28
Slide 4: Orders received – local currency
Orders received – local currency • APAC growing 40%, mainly Americas EMEA APAC driven by China Share of orders received R12, % 36% 43% 21% YTD vs. last year, % -12% +5% +40% • Order intake in Americas down 12% mainly related to the Commercial sub-segment in Air Treatment • In EMEA, the Air Treatment
Slide 5: Business Area Overview (LTM)
Business Area Overview (LTM) Air Treatment Data Centers AgHort Mist Elimination • 53% of net sales • 13% of net sales • 28% of net sales • 6% of net sales • 12.5% adj. EBITA margin • -3.8% adj. EBITA margin • 13.4% adj. EBITA margin • 8.7% adj. EBITA margin Global leader in energy Global leader in c
Slide 6: Q1 2018 business highlights and market comments
Q1 2018 business highlights and market comments Significant orders • Two large lithium-ion battery orders in Europe and China • Several large orders in AgHort Swine segment in China Product launches • New energy efficient indirect Data Center cooling solution, SyCool, without the need for water Stro
Slide 7: Q1 2018 – Bridge order intake, SEKm
Q1 2018 – Bridge order intake, SEKm -1% • Order intake declined by 1% (+2% organic) - Good growth in Air Treatment (+5% organic) and AgHort (+13% organic) - Slow overall Data Center market in the quarter with no large orders signed (SEKm 82 order in Q1 2017) 7
Slide 8: Q1 2018 – Bridge net sales, SEKm
Q1 2018 – Bridge net sales, SEKm • Net sales increased by 5% (7% organic) 5% - Organic growth was reported for all Business Areas except Mist Elimination - Services net sales increased by 9% driven by strong growth in rotors and project start-ups 8
Slide 9: Q1 2018 – Bridge Adj. EBITA, SEKm
Q1 2018 – Bridge Adj. EBITA, SEKm • Adjusted EBITA decreased by 22% -22% - Lower adjusted EBITA in the Air Treatment segment due to slightly lower net sales and negative product mix effects - Increased earnings in AgHort due to higher volumes and supported by acquisitions - Data Centers impacted by
Slide 10: Q1 2018 – Air Treatment
Q1 2018 – Air Treatment • Order intake increased 1% (5% organic) with good growth in the Industrial sub-segment, Components Q1 and Services, offset by weak demand in the SEKm 2018 2017 D% Supermarket end-market • Net sales declined by 2% (2% organic increase) External order backlog 1,300 1,097 18 du
Slide 11: Quarterly trading patterns – Air Treatment
Quarterly trading patterns – Air Treatment Q3 2017 – Data Centers Source: Company Information 1 Calculated as 3 / (Net Sales in the quarter / External Order Backlog in the previous quarter) 11
Slide 12: Q1 2018 – Data Centers
Q1 2018 – Data Centers • Order intake decreased by 51% (48% organic decrease) with no large orders signed. The Q1 corresponding period last year included a SEKm 82 SEKm 2018 2017 D% order from a major digital customer in Americas • Net sales increased by 22% (24% organic increase) External order bac
Slide 13: Launch of new cooling technology SyCool ITC
Launch of new cooling technology SyCool ITC • Launch of new product, SyCool ITC (Indirect Thermosyphon Cooling), for use where access to a suitable water supply is limited, expensive or unreliable • SyCool uses the waste heat from the data center and a combination of gravity and a syphon effect, to
Slide 14: Data Centre Business Roadmap
Data Centre Business Roadmap Past Present Future • Custom Air Handling Unit manufacturer • Higher operating temperatures in DC’s • New technology for indirect cooling • Polymer based heat exchanger created opportunity for more efficient cooling developed technology • Asia growth with local manufactu
Slide 15: Quarterly trading patterns – Data Centers
Quarterly trading patterns – Data Centers Source: Company Information 1 Calculated as 3 / (Net Sales in the quarter / External Order Backlog in the previous quarter ) 15
Slide 16: Q1 2018 – AgHort
Q1 2018 – AgHort • Order intake grew by 11% (13% organic) driven by large orders received in the Swine sub-segment in Q1 China. Continued low activity level in the US layer D% SEKm 2018 2017 market during the quarter • Net sales grew by 11% (11% organic), mainly External order backlog 498 454 10 dri
Slide 17: Quarterly trading patterns – AgHort
Quarterly trading patterns – AgHort Source: Company Information 1 Calculated as 3 / (Net Sales in the quarter / External Order Backlog in the previous quarter) 17
Slide 18: Q1 2018 – Mist Elimination
Q1 2018 – Mist Elimination • Order intake decreased by 3% (9% organic decrease), mainly due to lower order intake for Flue Q1 Gas Desulphurization (FGD) for coal power plants SEKm 2018 2017 D% in China and US • Net sales decreased by 3% (7% organic decrease) External order backlog 137 126 9 due to f
Slide 19: Quarterly trading patterns – Mist Elimination
Quarterly trading patterns – Mist Elimination Source: Company Information 1 Calculated as 3 / (Net Sales in the quarter / External Order Backlog in the previous quarter) 19
Slide 20: Summary
Summary • Net sales growth but softer order intake with variations across business areas • Major operational issues handled and improvements underway • Lower earnings (Adj. EBITA), in line with our expectations • For the remainder of the year, we expect favorable market conditions in most of our mar
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