Munters Group Ab · OMXSTO:MTRS
Munters Group Ab — Q3 2023 Earnings Presentation
46 slides from Munters Group Ab's earnings presentation, Nov 1, 2023
Slide 1: Munters Presentation Q3 2023
@ Munters Munters Presentation = Q3 2023 Investor Relations
Slide 2: Agenda
Agenda > Introduction > Q3 highlights = AirTech — Data Center Technologies — FoodTech — Customer cases — Appendix
Slide 3: World leader in energy-efficient climate solutions
3 World leader in energy-efficient climate solutions Munters offers climate solutions where controlling indoor humidity, temperature and energy efficiency is Order Intake Net Sales Financial figures Q3 2023 “Last twelve months. mission-critical Regional share Q3 Order Intake Net Sales 17% Order Inta
Slide 4: Business critical solutions to a broad range of industries
Business critical solutions to a broad range of industries bk aS Dry air for battery Clean Technology solutions production for a healthier planet ii Constant humidity solutions Climate & hygiene control for the pharmautical for the food production industry industry Leading supplier of Rotors & Servi
Slide 5: Core technologies — dehumidification and evaporative cooling
Core technologies — dehumidification and evaporative cooling Core Technologies AirTech offering FoodTech offering Dehumidifiers Climate systems High-efficiency Air inlets =. fans Evaporative Rotors with desiccant cooling pads drying wheel Packaged air Service Controllers Sensors & software economize
Slide 6: Financial targets
Financial targets Progression towards our financial targets Net sales growth” 40% 15% 30% 28% 10% 20% 5% 10% a Financial target 10% 0% 0% a3 a4 al a @ a4 at @ @ 2021 2022 2023 * Organic.growth pa. over a business cycle a3 Adj. EBITA margin a4 a a2 a a @ 2021 2022 14.1% ford 2023 a3 OWC/net sales *”
Slide 7: Advancement towards our sustainability goals
Advancement towards our sustainability goals End of September 2023 Goal Renewable electricity, factories 80% (71) Net zero scope Energy efficiency, factories* 0.51 (0.71) emissions Recycling rate (LTM) 52% (54) by 2030 Health & TRIR** (LTM) 1.2 (1.6) Zero Safety accidents 30% % of women in workforce
Slide 8: Agenda
Agenda => Introduction —> Q3 highlights = AirTech — Data Center Technologies — FoodTech — Customer cases — Appendix
Slide 9: Strong net sales growth & profitability improvement
Strong net sales growth & profitability improvement mmm Order intake mmm Announced orders’ —e—= Order backlog MSEK 15.000 6000 10,025 10000 4000 2,494 2000 [ [ 5000 ° 0 Q3 Q4 Qi Q2 G3 Q4 Qi G2 G3 2021 2022 2023 Q3 Order intake, -61%: * no larger orders in the quarter compared to last year * underlyi
Slide 10: Solid order backlog - large orders supportive into 2025
Solid order backlog - large orders supportive into 2025 2022 2023 2024 2025 MUSD 115 US colocator x Cc 2 SyCool Split solutions MUSD 65 US car manufacturer x ° 2 Climate control systems MUSD 63 US colocator x e Ly Standard chilled water (CRAHs) MUSD 176 US colocator x ——_____¢ SyCool Split solutions
Slide 11: Munters focus areas
Munters focus areas ILLUSTRATIVE Direction of positioning - 2023 and beyond » ) , mn Y Data Center Profitability Digital Solutions FoodTech Climate Solutions ) B “Software as a Service Grey bubbles illustrate the direction communicated in Q4 2022 —1/- Growth Growth Profitability Stability Focus area
Slide 12: Strong net sales growth
Strong net sales growth . . . . . 4 Net Sales strong increase; = Strong development DCT & battery, AT = Services organic growth 7% to MSEK 479, representing 13% of total net sales Adj. EBITA margin improved in all business areas Improved cash flow; = Stronger earnings & positive effects from changes
Slide 13: Agenda
Agenda => Introduction > Q3 highlights => AirTech — Data Center Technologies — FoodTech — Customer cases — Appendix
Slide 14: Global leader in air treatment for industry
Global leader in air treatment for industry Order intake, MSEK* 7,517 MSEK 2500 2000 1463 1500 1000 501 @3 G4 QI Q2 Q3 G4 QI @2 G3 2021 2022 2023 38 ° Financial figures 03 2023 *LT™ 16 Net sales, MSEK* 8,103 MSEK 1,978 2000 1500 1000 500 Q3 G4 QI Q2 G3 G4 QI @2 G3 2021 2022 2023 8 ° % 20 15 10 Adjus
Slide 15: Q3 - Stable long-term growth trends
Q3 - Stable long-term growth trends P5% Oh ~15% MP 20-1% BH neg % order intake Market + Order Intake decreased -45% org.; SUS COME TSCOMERY GHAR) Ouitledt: » excl. large order of MUSD 65 received in Q3 d - 40% a 2022, decrease -17% org. » Battery - customers ordering closer to delivery AIRES SETS 1%
Slide 16: Q3 - Positive sales growth in all segments
Q3 - Positive sales growth in all segments 2023 2022 Change (%) : : | a] Order intake 1,463 2,453 -45 2 2 Order backlog 3,572 4,219 Net sales i978 | 1684 2 3 3 Adj. EBITA 305 242 ‘Adj. EBITA (%) 15.4 14.4 > Adj. EBITA margin improved; + increased net sales + cont. efficiency improvements + contribut
Slide 17: Selection of market players - mainly small local players
Selection of market players - mainly small local players . Small Medium Large Extra Large tee . 7 (<1 BSEK) (1-2 BSEK) (2-10 BSEK) (210 BSEK) Diironent EXGAN Gj coonase je) Fs Pet AM AS AS AM AM/AS/EU AS _ Novet Awe TEctnooces fisair SSRYSOLUTIONS * oy 8 yey Ai AM EU avd beep a 5g 4 AM/AS — Sm 2 ; _
Slide 18: Stable market activity in several segments
Stable market activity in several segments 20 MSEK 3000 2500 2000 1500 1000 500 ie) Order intake per segment Qi 2022 Q2 2022 Q3 2022 Q4 2022 Qi 2023 Q2 2023 Q3 2023 mmm Service mmm Components Food Processing sss Commercial mam Other Industrial mmCT mmm Battery Announced orders’ === Net Sales ‘Large
Slide 19: Agenda
Agenda => Introduction > Q3 highlights = AirTech — Data Center Technologies — FoodTech — Customer cases — Appendix
Slide 20: Sustainable cooling solutions that facilitate digitization
Sustainable cooling solutions that facilitate digitization Order intake, MSEK* 1,793 MSEK 3000 2000 1000 | 404 ee | _ollll Q3 a4 ai a2 a3 a4 al a2 as 21 21 22 22 22 22 23 23 23 24 Financial figures 3 2023 “LIM. Net sales, MSEK* 2,983 MSEK 1000 953 800 600 400 200 | | | at Q3 Q4 al a2 a3 a4 al a2 as
Slide 21: Data Center Technologies - Q3 positive development in Europe
Data Center Technologies Q3 - Positive development in Europe P58 Oh ~15% MD s0-1% BW neg > Order Intake decreased -89% org.; % order intake Market * excl. two large orders of MUSD 239 received Q3 Customer segment Q3 2023 Outlook * 2022, decrease -49% org. * due to changed ordering pattern among Hype
Slide 22: Data Center Technologies - Q3 good execution on large orders
Data Center Technologies Q3 - Good execution on large orders Q3 2023 Q3 2022 Change (%) Order intake 404 3,406 -89% 1% Order backlog 5,453 6,739 Net sales 515) 378 140% 13% Adj. EBITA 160 24 Adj. EBITA (%) 16.8 64 > Adj. EBITA margin significant increase; + strong volume growth + increased utilizati
Slide 23: Selection of market players - Munters well positioned for growth
Data Center Technologies Selection of market players - Munters well positioned for growth — An order in DCT generally consists of several equipment deliveries =¢ ) te ‘AM/EU EU/AS/AM EU/AS/AM —EU/AS/AM j © vertiv players wen Goose Aapet, ‘AM/EU EU Several smaller players Data Center Technologies (<2
Slide 24: Major order for SyCool Split in the US
Data Center Technologies Major order for SyCool Split in the US > Value of MUSD 137 (~ BSEK 1.5) > Leading data center colocation operator +> SyCool Split systems as well as field > Delivered throughout 2025 29 in the US service work SyCool™ Split “This order reaffirms our esteemed market position a
Slide 25: Munters first order to pair heat rejection with liquid cooled servers
Munters first order to pair our heat rejection technology with liquid cooled servers * R&D work in close collaboration with large colocation customer * Regular SyCool split has a Computer Room Air Handler (CRAH) in the data hall, where hot air from the servers make a circuit of refrigerant evaporate
Slide 26: Agenda
Agenda => Introduction > Q3 highlights = AirTech — Data Center Technologies — FoodTech — Customer cases — Appendix
Slide 27: A world leader in climate control systems for food production
A world leader in climate control systems for food production 33 Order intake, MSEK* 2,360 Net sales, MSEK* 2,259 651 MSEK 650 600 400 200 0 | 3 G4 Qi G2 G3 G4 a G2 QB G3 Q4 Qi G2 G3 G4 a G2 QB 21 21 22 22 22 22 23 23 23 21 21 22 22 22 22 23 23 23 Financial figures 03 2023 “LT™ 0 Adjusted EBITA-marg
Slide 28: FoodTech - a leading dual offering
35 FoodTech - a leading dual offering FoodTech a dual offering | Ep) Esl DIGITAL SOFTWARE & SOLUTIONS ONTROLUERS CLIMATE SOLUTIONS EQUIPMENT Products (examples) AMINO software TRIO controller SATURN fan Typical customers Integrators Farmers / Dealers Farmers / Dealers FoodTech stands on two pillars,
Slide 29: FoodTech - Q3 strong growth journey in Digital solutions
FoodTech Q3- Strong growth journey in Digital solutions PSS 15% MD 10-1% BW neg % order intake Market > Order Intake increased +22% org.; Customer segment Q3 2023 Outlook * * driven by the US & improvement in EMEA * CS - good development in the broiler & layer 85% =» segments in the US. Slight recov
Slide 30: Q3 - Commercial excellence initiatives drives margin improvement
Q3 - Commercial excellence initiatives drives margin improvement Ch % Order intake & backlog development Q3 2023 | Q3 2022 1000 Order intake 651 507 22% 5% 1% 750 Order backlog 999 908 % 500 Net sales 650 594 1% 5% 3% g - of which SaaS 48 32 &9 - SaaS ARR 194 127 ° ‘Adj. EBITA B0 53 Q321 GAZI @l22 2
Slide 31: Selection of market players within Climate solutions
FoodTech Selection of market players within Climate solutions @SKOV Tope FU/AS/AM EU/AS/AM KYA Pasco Big Herdsman EU/AS/AM AS HSi _—Multifan Gas" = pacshi — EU/AS/AM China EU/AS = AS Middle East AM c=iptasson’ Fanconi: EU/AS/AM babe Qexafan EU/AS/AM EU U AM (Q) Hotraco TALGIL i: GaICon| 2 . ane, max
Slide 32: Agenda
Agenda => Introduction > Q3 highlights = AirTech — Data Center Technologies — FoodTech — Customer cases & M&A — Appendix
Slide 33: Acquisition of ZECO - strengthens our market position in India
Acquisition of ZECO - strengthens our market position in India Indian manufacturer of air treatment solutions - adds complementary products to our core offer =, Z2EC Pre Fobricoled Ducts Combined offering positions us for growth Provides a strong platform for growth - 3 manufacturing facilities acro
Slide 34: Munters acquires Hygromedia and Rotor Source
Munters acquires Hygromedia and Rotor Source 42 Hygromedia LLC manufacturer of desiccant dehumidification medi specializes in components, supplying desiccant rotor Rotor Source Inc supplier of rotors and cassettes to original equipment manufacturers (OEM) located in Baton Rouge, La., US, ~30 employe
Slide 35: AirTech strengthened with two new acquisitions
AirTech strengthened with two new acquisitions 43 Swedish manufacturer of components, working with Munters since 2005 Deal closed in May 2023 Net sales 2022 ~MSEK 76, ~ 14 FTE Expand the humidification business & gives us full process control giving additional growth opportunities Service business w
Slide 36: https://www.munters.com/en/campaigns/airt-campaigns/clean-technologies
• • • • • • • • https://www.munters.com/en/campaigns/airt-campaigns/clean-technologies
Slide 37: MTech Systems secures important SaaS contract
MTech Systems secures important SaaS contract > January 2022 - MTech Systems, within FoodTech, deliver SaaS solution to a major US integrator * order value of ~MUSD 19 * contributing to improved animal & human health as well as reduced energy consumption Digital Solutions recurring revenues grew +53
Slide 38: Strengthening the FoodTech portfolio
Strengthening the FoodTech portfolio > Gaya farm project, South Korea * Swine farm of 2,725 m? * Sold products - Trio controllers & Lavamatic * Lavamatic - cleans the air (inside & out) * Trio controllers — cloud control management for air quality & animal welfare * Chosen for Munters innovative and
Slide 39: Appendix
Appendix 50
Slide 40: Munters on a journey
Munters on a journey AT & FT delivery on strategic review New business area: DCT Acquisition in all business areas Updated financial targets Efficiency improvement initiatives continue * Secure end-to-end information/value chain efficiency across all Munters » Working capital focus * Increased focus
Slide 41: Adjusted EBITA-margin
Adjusted EBITA-margin All business areas contributed to improved profitability Main factors affecting adj. EBITA margin in Q3: Q3 2022 1 * Strong volume increase driven mainly by DCT & el} BEMASS battery in AT Volume oep oe . q F * Net pricing increases in all business areas Net pricing ++ * Operati
Slide 42: Cash flow
Cash flow Cash flow from operating activities improved in the quarter Group Cash Flow YTD, MSEK billion Cash flow from changes in WC Q3 2023 Q3 2022 600 Change in accounts receivable 19 -94 500 a Change in inventory 161 -149 [38] Change in accrued income 60 62 400 444 458 - Change in accounts payabl
Slide 43: Leverage & net debt
. Leverage & net deb Decreased leverage ratio 2000 3,0 . * Leverage ratio decreased from 1000 os mainly driven by increased adj. EBITA. 2,0 -1000 : * Net debt increase due to: -2000 15 = acquisitions financed partly by debt during the last 4 quarters ~3 000 lo = increased lease liabilities related t
Slide 44: Strong service growth
Strong service growth Ambition: Share of service long-term to represent 30 percent of Group net sales * Group Q3 -amounted to MSEK 479, 13% of total net sales (org. growth 7%) ° AirTech Q3 - 19%, majority of the groups Service net sales * DCT - minor Service sales, as main part of business greenfiel
Slide 45: Inorganic strategies to boost overall growth
Inorganic strategies to boost overall growth 2, Edpac, Ir (DCT) 1999, Euroemme, It Hygromedia & Rotor (FT) ) Core / jource, US (AT) Consolidation 2007, Des Champs ; . InoBram, Br (FT) Technologies, US : c 8 (DCT) » Tobo Components, Se (AT) 3 ZECO , In (AT) & & Tecinnelegy 7 2011, Rotem, |s (FT) > 2
Slide 46: Investor Relations contacts
Ann-Sofi Jönsson Line Dovärn Vice President, Head of Investor Director Investor Relations Relations & ERM E-Mail: line.dovarn@munters.com E-mail: ann-sofi.jonsson@munters.com Phone: +46 73 048 84 44 Phone: +46 73 025 10 05