Munters Group Ab · OMXSTO:MTRS
Munters Group Ab — Q4 2020 Earnings Presentation
24 slides from Munters Group Ab's earnings presentation, Feb 4, 2021
Slide 1: Q4 report 2020
MUNTERS Q4 report 2020 Klas Forsström, President and CEO Annette Kumlien, GVP and CFO
Slide 2: Agenda
Agenda Highlights Full Year 2020 Implementation of strategy Fourth quarter and Full Year 2020 results Summary
Slide 3: A stronger base for the future growth journey
A stronger base for the future growth journey Stable net sales and improved profitability Challenging market conditions Entering next phase on our journey Order intake Net sales MSEK MSEK -1% -2% 8000 8000 7000 7000 6000 6000 5000 5000 4000 7,302 7,249 4000 7,153 7,015 3000 3000 2000 2000 1000 1000
Slide 4: Order intake Q4 - decline in Americas and growth in EMEA
Order intake Q4 - decline in Americas and growth in EMEA Americas Regional split Americas EMEA APAC • AirTech - Data Centers US had weak order intake, on the back of a strong 2019 partly offset by good development in driven by pharma, Share of total order intake 45% 34% 22% lithium battery and super
Slide 5: Agenda
Agenda Highlights Full Year 2020 Implementation of strategy Fourth quarter and Full Year 2020 results Summary 5
Slide 6: Focus in 2020 and beyond
Focus in 2020 and beyond Purpose: For customer success and a healthier planet Strategic priorities: Focus areas Customers Improve go-to-market models and pricing strategies Focus investments in R&D and product portfolio alignment Innovation and adjustment Markets Growing in prioritized markets and s
Slide 7: Summary – strategy execution in 2020
Summary – strategy execution in 2020 Strategic priorities: Achievement 2020 Long-term ambitions Delivering minimum additional annual Customers Way forward set for both AirTech and FoodTech +0.5-1.0 % net price change Product portfolio reduction of >30% Reduce product assortment by 40% in 2022 Innova
Slide 8: JBS partners with MTech for improved food traceability
Customers JBS partners with MTech for improved food traceability JBS/Pilgrims, which is the largest animal protein producing JBS/Pilgrims Pride USA company in the world, partners with MTech Systems at Munters • MTech Systems to provide an Artificial Intelligence (AI) supply chain platform for improv
Slide 9: Expanding our Service offering during the pandemic
Markets Expanding our Service offering during the pandemic • Large potential for Munters in increasing the share of Services • In 2020, Services increased to 14% of net sales and reached 17% of net sales in the fourth quarter; despite challenges due to the pandemic and difficulties accessing custome
Slide 10: Focus on excellence and efficiency in 2020
Excellence in everything we do Focus on excellence and efficiency in 2020 • Working Capital Program launched to improve Working Capital on all levels of the company resulting in more efficient capital management and lower leverage. Operating Working Capital has gone down to 10% of Net Sales in Decem
Slide 11: New organizational structure complete
People New organizational structure complete The organizational structure has been adapted to be more business oriented and customer focused with: New organizational structure in 2020 Clearer business ownership, aligning value chain within CEO, Klas Forsström Business Areas, capturing logical synerg
Slide 12: Sustainability 2020
Sustainability 2020 In 2020 Munters has: • Created conditions for setting more ambitious sustainability goals during 2021 and Resource integrated sustainability throughout the strategy Efficiency • Focused on analyzing and following up the company's carbon dioxide emissions and on strengthening safe
Slide 13: Agenda
Agenda Highlights Full Year 2020 Implementation of strategy Fourth quarter and Full Year 2020 results Summary 13
Slide 14: Q4 and FY 2020 vs. Mid-term targets and FY 2019
Q4 and FY 2020 vs. Mid-term targets and FY 2019 Mid-term Q4 Q4 FY FY 1 targets 2019 2020 2019 2020 Net sales growth Org. growth p.a. over a 5% -1% 8% 6% 1% business cycle 2 Adjusted EBITA- 14% 12.5% 13.3% 12.2% 12.9% margin 3 Capital structure (LTM*) 1.5x- n.a. n.a. 2.9x 1.9x (Leverage: Net debt / a
Slide 15: Group: Growth in organic Net Sales
1 Net sales growth Group: Growth in organic Net Sales Order intake Order backlog Net sales Quarterly net sales growth MSEK MSEK MSEK -1% 2% 8000 -2% -2% 2500 8000 7000 1% 7000 6000 2000 6000 0% 5000 5000 Q1 Q2 Q3 Q4 7,302 7,249 2,307 2,253 -1% 4000 1500 4000 7,153 7,015 -2% 2020 2020 2020 2020 3000
Slide 16: AirTech: Growth in pharma offset by decline in Mist Elimination
1 Net sales growth AirTech: Growth in pharma offset by decline in Mist Elimination Order intake Order backlog Net sales Quarterly net sales growth MSEK MSEK MSEK -3% -2% 0% 6000 2000 6000 -4% -1% Q1 Q2 Q3 Q4 5000 5000 -2% 2020 2020 2020 2020 4000 1500 -3% 5,253 5,101 4000 5,159 4,937 3000 -4% 1000 1
Slide 17: FoodTech: Good growth in China
1 Net sales growth FoodTech: Good growth in China Order intake Order backlog Net sales Quarterly net sales growth MSEK MSEK MSEK -2% 2500 +5% 2500 +5% 600 8% 2000 500 2000 6% 2,032 2,126 1500 2,087 2,196 400 1500 4% 300 1000 2% 1000 -8% 526 516 +13% 200 0% 500 500 491 450 470 531 -2% Q1 Q2 Q3 Q4 100
Slide 18: Improved adjusted EBITA Q4 and FY 2020
2 Adjusted EBITA-margin % Improved adjusted EBITA Q4 and FY 2020 Group AirTech FoodTech MSEK +4% MSEK 15.9% MSEK +12% +4% 800 16% 1000 18% 350 14.6% 16% 900 16% 700 13.4% 12.8% 14.0% 14% 300 13.0% 12.3% 13.7% 14% 800 13.3% 12.9% 12.5% 12.2% 14% 600 12% 250 12% 700 12% 500 10% 10% 200 278 310 600 10%
Slide 19: Delivering on customer offering and footprint optimization
2 Adjusted EBITA-margin Delivering on customer offering and footprint optimization Status fourth quarter: Sharpening measures • Implemented according to plan • Exit non-core part of the commercial business in the US within business area AirTech • All measures expected to be implemented throughout 20
Slide 20: Strong cash flow development
3 Capital structure Strong cash flow development Cash flow development, LTM* Cash flow for the period, Q4 2020 MSEK Cash flow from operating activities MSEK Cash flow for the period 1,000 450 400 -56 800 14 350 600 300 63 -74 161 -156 250 400 200 248 413 200 150 100 201 0 50 -200 0 Operating Reversa
Slide 21: Leverage in line with mid-term financial target range
3 Capital structure Leverage in line with mid-term financial target range Cash conversion (OCF*/Adj. EBITA) Development of leverage 120% Net debt / adj. EBITDAx 5 100% 80% 4 60% 3 40% 2 20% 1 0% 0 Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020
Slide 22: Agenda
Agenda Highlights Full Year 2020 Implementation of strategy Fourth quarter and Full Year 2020 results Summary 22
Slide 23: Strong performance despite a challenging market
Strong performance despite a challenging market • Focus on strategy execution to strengthening the base and turning Munters to a more customer-centric company striving for zero impact on the planet • Continuous efficiency improvements and cost control resulted in increased profitability for the year
Slide 24: Questions & Answers
Questions & Answers @ Munters