Slide 1: Munters Q2 report 2022
Munters Q2 report 2022 Klas Forsström, President and CEO Annette Kumlien, GVP and CFO Ann-Sofi Jönsson & Line Dovärn, Investor Relations
Slide 2: Strong growth in a quarter marked by continued challenges
Strong growth in a quarter marked by continued challenges Strong order intake Increased focus to manage lead times Price increases compensated for inflation MSEK Net Sales MSEK Order Intake 8 000 MSEK Adj. EBITA Adj. EBITA margin Order Intake 300 18% 4 000 6 000 16% 3 000 14% 200 4 000 12% 2 000 260
Slide 3: Q2 - Americas main driver of growth
Q2 - Americas main driver of growth +104% +17% +5% Growth Growth Growth (YoY) (YoY) (YoY) Americas, 58% of total order intake EMEA, 24% of total order intake APAC, 18% of total order intake • AirTech – All segments showed • AirTech – Good growth in Battery and • AirTech – strong growth in Battery &
Slide 4: Intensified global challenges
Intensified global challenges Market situation Consequences of market situation Supply chain impact Agriculture input prices Munters main raw materials Trend commodity price development directly/indirectly impact* QoQ YoY PS/PP Steel - - Illustrative allocation Al Raw material directly/indirectly -
Slide 5: AirTech – Very strong demand within Battery
AirTech – Very strong demand within Battery >5% ± 0 -1% ~ 1-5 % neg % order intake Market Customer segment Q2 2022 Outlook * Comments Industrial 50% Demand expected to remain strong …whereof Battery 25% *** Continued strong growth expected, driven by Americas and EMEA …whereof Food processing 8% Dem
Slide 6: Belgian air hub chooses Munters for fan optimization
Belgian air hub chooses Munters for fan optimization • Liège Airport in Belgium is the 7th biggest cargo airport in Europe and the 22nd biggest in the world • Massive amount of energy is used for creating a comfortable indoor climate for passengers, shopkeepers and employees • Two extraction units w
Slide 7: Data Center Technologies – hyperscalers driving growth
Data Center Technologies – hyperscalers driving growth > 5% ± 0 -1% ~ 1-5% neg % order intake Market Customer Segments Q2 2022 Outlook * Comments Increase in cloud traffic and connectivity services continues to drive hyperscale Hyperscalers 5% growth Colo growth largely driven by increased leasing f
Slide 8: US Footprint Expansion
US Footprint Expansion • Brand new state of the art facility opening in Roanoke region, Virginia ‒ 365,000 square feet (34,000 m2) of manufacturing, office and R&D testing facility ‒ represents over a 50% manufacturing increase over current Virginia facility ‒ access to larger labor pool ‒ completed
Slide 9: FoodTech – a market in transformation
> 5% ± 0 -1% FoodTech – a market in transformation ~ 1-5% neg % order intake Market Customer segment Q2 2022 Outlook * Comments Mixed market development with growth in Americas, slow down in EMEA and Climate solutions 87% weak demand in APAC Continued strong demand in Americas, EMEA slower due to Av
Slide 10: New product launch of Saturn FIVE
New product launch of Saturn FIVE … … following Saturn ONE introduced two years ago • Saturn series - lasts longer, use less components and reduce running costs while ensuring a healthy environment for animals. • Modular - fully flexible configuration to meet the needs of any farm • Sustainable - incr
Slide 11: Climate change is our most important megatrend
Climate change is our most important megatrend For customer success and a healthier planet Selection of achievements during the quarter: Mandatory training for all non-production Updated sustainability scorecard for new employees of our Code of Conduct policy products – helps determine the impact ca
Slide 12: Financial highlights
Financial highlights
Slide 13: Strong growth in a quarter marked by continued challenges
Strong growth in a quarter marked by continued challenges Mid-term Q2 Q2 YTD YTD targets 2021 2022 2021 2022 Net sales growth Org. growth p.a. over a 5% 13% 25% 13% 21% business cycle Adjusted EBITA- 14% 14.2% 10.4% 13.3% 10.0% margin Capital structure (LTM*) 1.5x-2.5x n.a. n.a. 1.9x 2.9x (Leverage:
Slide 14: Growth and investments to capture market opportunities
Group Growth and investments to capture market opportunities • Order intake increased, driven by strong Change (%) Q2 2022 Q2 2021 growth in DCT Americas and Battery and MSEK Organic growth Acquisitions & divestments Currency effects Service in AirTech Order intake 3,200 2,118 33 2 17 • Order backlo
Slide 15: Growth and net price increases offset by increased costs
Adjusted EBITA-margin Growth and net price increases offset by increased costs Group adj. EBITA margin impact Main factors affecting adj. EBITA margin in Q2: • Positive impact from volume increase with good growth in AirTech Q2 2021 adj. EBITA % 14.2 and Data Center Technologies Volume ++ • Net pric
Slide 16: AirTech: Strong growth in transformative segments
AirTech Strong growth in transformative segments Change (%) • Order intake increased in all regions. Good Q2 2022 Q2 2021 Organic Acquisitions & Currency growth in Battery but also Food, Components, MSEK growth divestments effects CT and Services Order intake 1,727 1,315 19 - 12 • Net sales increase
Slide 17: Data Center Technologies: Strong growth in both Americas and EMEA
Data Center Technologies Strong growth in both Americas and EMEA Change (%) • Order intake increased strongly driven by co- Q2 2022 Q2 2021 Organic Acquisitions & Currency location customers in Americas MSEK growth divestments effects • Net sales increased driven by both EMEA and Order intake 939 18
Slide 18: FoodTech: Increased sales, challenging market environment
FoodTech Increased sales, challenging market environment Change (%) • Order intake decreased due to weak markets Q2 2022 Q2 2021 Organic Acquisitions & Currency in APAC and EMEA. Digital Solutions in MSEK growth divestments effects Americas grew Order intake 554 636 -22 - 9 • Net sales increased sli
Slide 19: Strong growth – increased operating working capital
Cash flow & Leverage Strong growth – increased operating working capital Cash flow development, LTM* Development of leverage MSEK Cash flow from operating activities Net debt / adj. EBITDAx, LTM 1200 Cash flow for the period 4 800 3 400 2 0 Mid-term financial target range 1.5x-2.5x -400 1 -800 0 Apr
Slide 20: Increasing investments to capture market opportunities
Increasing investments to capture market opportunities Commercial excellence Digitalization Create a scalable business to capture Innovation growth and become more efficient and profitable Manufacturing excellence Investing in people 20
Slide 21: Measures for strategy implementation on track
Measures for strategy implementation on track 2020 2021 Status Q2 2022 Focus 2022 • Strategy implementation measures • Realized costs and expenses of • Strategy implementation AirTech • Total costs and expenses about about MSEK 180 activities to continue, MSEK 200 • Approx. 75% of savings realized •
Slide 22: M&AA categories in focus
Inorganic strategies to boost overall growth Executed in 2022 Core / Consolidation • Edpac DCT acquisition M&AA categories in focus • Two minor financial investments Technology / Digital • One acquisition of intellectual property rights Services – String of pearls New growth areas
Slide 23: Summary
Summary
Slide 24: Climate change is our most important value driver
Climate change is our most important value driver Well positioned and continue to take advantage of the strong megatrends of digitalization, electrification and increased demand for sustainable solutions Price increases compensated for inflationary pressure, and we continue to adjust prices Increasi
Slide 25: Questions & Answers
Questions & Answers | ll