Slide 1: Munters Q3 report 2022
Munters Q3 report 2022 Klas Forsstrém, President and CEO Annette Kumlien, GVP and CFO Ann-Sofi Jonsson & Line Dovarn, Investor Relations
Slide 2: Record order intake confirms strong offer and position
Record order intake confirms strong offer and D ae =a Record order intake in the quarter Strong growth and book-to-bill over 2x MSEK — Order Intake MSEK Rider backlog 8.000 12000 let soles 10.000 a 4 6000 8.000 4.000 6000 4000 2.000 2.000 - 0 0 @3 Q4 QI @2 G3 G4 Ql @2 @3 @3 Q4 QI @2 G3 @4 Ql @2 @3 ™
Slide 3: Q3 - Americas strong for all business areas
Q3 - Americas strong for all business areas Regional share Order intake @3_—_—Net sales @3 > Americas, order intake +362%* * Airlech - good growth in mainly battery and Service * DCT - continued high demand from the co-location (co-lo) market * FoodTech — growth within both Digital & Climate Solutio
Slide 4: PS/PP Paper Al
• • PS/PP • Al Paper • Steel Coating • Cu • Other • •
Slide 5: Excellence in everything we do
‘ Excellence in everything we do Operational excellence CE] R&D Sustainability Operating working Commercial excellence Bringing R&D and Focus on Life Cycle capital Pricing strategy, value innovation closer to the Analysis, Scope 1, 2 & 3 continuous work to selling and business model market emissions
Slide 6: AirTech - Very strong demand within Battery
Airlech — Very strong demand within Battery Ot Se % order intake = Market Customer segment Q3 2022 Outlook * — Comments Industrial 68% A Demand expected to remain strong ... whereof Battery 48% y Continued strong growth expected, driven by Americas and EMEA ... whereof Food processing 5% @ Solid dem
Slide 7: Growing in prioritized areas
Growing in prioritized areas Customer: large car manufacturer in US Order value: ~ MUSD 65 Deliveries: Q2 2023 - Q3 2024 Value creation: Simplicity & scalability Combining modularized products and customer specific solutions Customer: * Morrows 1st battery factory in Arendal, Norway, and; * Equans,
Slide 8: Data Center Technologies - hyperscalers driving growth
Data Center Technologies — hyperscalers driving , growth Oe eh % order intake = Market Customer Segments Q3 2022 Outlook * Comments Ryeercclers 14% y a in cloud traffic and connectivity services continues to drive hyperscale Co-lo growth largely driven by increased leasing from hyperscale customers,
Slide 9: Record orders confirm our strong position and offer
Record orders confirm our strong position and offer DCT very strong backlog of BSEK 6.7*. In Q3 additional large orders received: Order Backlog 7 F Sept 2022 DCT * Multiple orders in the US sal Est. backlog distr. — to a US-based colocation data center company — including standard chilled water comp
Slide 10: FoodTech - a market in transformation
, 5 I> 5% £0-1% FoodTech — a market in transformation Ors Bes % order intake Market Customer segment Q3 2022 Outlook * Comments Climate solutions 90% Mixed market development = growth in Americas, slow down in EMEA and weak demand in APAC, especially China __whereof Broiler 50% Continued strong dema
Slide 11: Strategic investments for growth in Digital Solutions
Strategic investments for growth in Digital Solutions N 7 -()- Munters invests in technology companies and start-ups with the aim to =» | accelerate innovation within digitalization, technology and sustainability 4 BARNTOOLS” O © Munters *loT= Internet of Things 11 **Al-Arificial Intelligence
Slide 12: Climate change is our most important megatrend
12 Climate change is our most important megatrend Factory emissions Scope 1&2 and For customer nters purpos Renewable electricity Scope 3*: 66% Factory Scope 1&2 emissions decreased 24% in H] compared to same period prior year- mainly due to increased renewable electricity and reduced natural gas co
Slide 13: Financial highlights
Financial highlights
Slide 14: Strong growth and stable margin
14 Strong growth and stable margin Net sales growth Org. growth p.a. over a business cycle Adjusted EBITA- margin Capital structure (LTM*) (Leverage: Net debt / adj. EBITDA) *LTM = Last Twelve Months Mid-term targets 5% 14% 1.5x-2.5x Q3 2021 3% 11.6% n.a. Q3 2022 22% 11.1% YTD 2021 10% 12.7% 2.2x @
Slide 15: Record order intake in the quarter
Record order intake in the quarter * Order intake increased, strong growth in DCT Americas & battery AT. FT Americas grew, offset by weak EMEA & China * Order backlog cont. strong increase * Net sales increased, DCT Americas and battery & Components in AT. FT flat, weak market in China offset by EME
Slide 16: Stable margin despite increased investments for growth
Stable margin despite increased investments for growth Group adj. EBITA margin impact 2021 adj. EBITA % Q3 11.6 Volume Net pricing Supply chain Investments Operational challenges Business & regional mix ++ + 2022 adj. EBITA % Main factors affecting adj. EBITA margin in Q3: * Positive impact from vol
Slide 17: Strong growth in transformative segments
Strong growth in transformative segments * Order intake increased in all regions, especially battery in Americas & Service * Net sales increased - growth in all regions, especially battery, Service & Components " Services 23% of AT net sales " price increases ~ 5% of AT net sales in Q3 * Adj. EBITA
Slide 18: Record high order intake in Americas
Record high order intake in Americas * Record order intake driven by large orders in Americas of MUSD 239 * Net sales increased — strong growth by co-los in both Americas & EMEA " price increases ~3% of DCT net sales in Q3 * Adj. EBITA margin impacted by; + volume growth in both regions — impacted b
Slide 19: Challenging market environment
Challenging market environment, Order intake organic decline - Americas grew Digital & Climate solutions. Weak markets in EMEA & China Net sales flat development — price increases compensated increased material & freight costs in all regions. Americas & EMEA grew, APAC declined (cont. weak Chinese s
Slide 20: Operating working capital positive impact in Q3
Operating working capital positive impact in Q3 — Cash flow from operating activities, Net debt / adj. EBITDAx, LTM 1200 Cash flow for the period Cash flow developme 4 800 3 400 2 0 Midterm financial torgetrange 1.5x-2.5x -400 1 -800 10) JulJun Oct-Sep Jan-Dec Apr-Mar JulJun Oct-Sep Jan-Dec Apr-Mar
Slide 21: Create a scalable business to capture growth
Create a scalable business to capture growth and become more efficient and profitable 21
Slide 22: Inorganic strategies to boost overall growth
Inorganic strategies to boost overall growth oy Minority investments 2021-2022 3 minority investments Si 8% BARNTOOLS ©) )FarmSee nn 3 rs) fe) 2 & n 2 = ie} loz) g o is) < < Cs) = @ Munters *IP-ights- Intellectual property rights 22
Slide 23: Summary
Summary
Slide 24: Record orders in quarter confirms our strong position and offer
Record orders in quarter confirms our strong position and offer Continued stable margin despite increased investments for growth Increased capacity to meet growing demand Clear strategy for value-creating growth Munters
Slide 25: Questions & Answers
Questions & Answers