Munters Group Ab · OMXSTO:MTRS
Munters Group Ab — Q3 2020 Earnings Presentation
23 slides from Munters Group Ab's earnings presentation, Oct 22, 2020
Slide 1: Munters Q3 report 2020
MUNTERS Q3 report 2020 Klas Forsström, President and CEO Annette Kumlien, GVP and CFO
Slide 2: Agenda
Agenda Highlights third quarter 2020 Implementation of strategy Third quarter 2020 results Summary
Slide 3: Strong profitable growth in third quarter
Strong profitable growth in third quarter Strong results Growth in prioritized markets Strategy execution Order intake Net sales MSEK MSEK +14% +1% 2000 2000 1500 1500 1000 1,680 1,919 1000 1,813 1,833 500 500 0 0 Q3 2019 Q3 2020 Q3 2019 Q3 2020 • Order intake increased organically by 21% • Growth a
Slide 4: Order for lithium battery production in the US
Order for lithium battery production in the US • Order to provide desiccant dehumidification solutions for a lithium battery production facility in the US • The total value of the order; including equipment and services is approximately MUSD 12* • Munters delivers proven, standard ultra dry climate
Slide 5: Strong order intake driven by Americas and Asia
Strong order intake driven by Americas and Asia Americas Regional split Americas EMEA APAC • AirTech - good development in the lithium batteries and pharma sub- segment as well as in Services. Data Centers US had weak order Share of total order intake 44% 29% 27% intake, still have strong order back
Slide 6: Agenda
Agenda Highlights third quarter 2020 Implementation of strategy Third quarter 2020 results Summary 6
Slide 7: 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 8: Strong profitable growth in third quarter
Markets Strong profitable growth in third quarter Focus Prioritized areas Ambition Q3 2020 • AirTech: Industrials - Organic net Lithium battery production, sales +8% Prioritized Food, Data Centers and • Market position 1-3 markets Mist Elimination in prioritized markets • FoodTech: Digital offering,
Slide 9: Product rationalizations on three levels
Innovation Product rationalizations on three levels Focus Ambition Status Target 40% reduction of Standard clean-up of product product assortment (SKUs*) Run-rate of > 25% reduction portfolio by 2022** Reduce by min. 25% by end Component simplification of On-going – firm target to be 2023, examples:
Slide 10: Innovative products in AirTech
Innovation Innovative products in AirTech SyCool SyCool • On-going product launch: Next chapter for Data Center Cooling • SyCool® ITC offers data center owners and operators an energy efficient indirect cooling solution without the need for water Munters FA6 units • Designed to offer the best evapor
Slide 11: FoodTech launch Saturn modular platform
Innovation FoodTech launch Saturn modular platform One platform for different solutions • Strong metal superstructure, 4 pieces venturi in composite • Corrosion resistant, High performance aerodynamic design Modularity • Flexibility • Reduce portfolio fragmentation, spare parts quantity and inventor
Slide 12: Agenda
Agenda Highlights third quarter 2020 Implementation of strategy Third quarter 2020 results Summary 12
Slide 13: Q3 2020 vs. Mid-term targets and PY
Q3 2020 vs. Mid-term targets and PY Mid-term Q3 Q3 YTD YTD 1 targets 2019 2020 2019 2020 Net sales growth Org. growth p.a. over a 5% 11% 8% 8% -2% business cycle 2 Adjusted EBITA- 14% 13.7% 14.8% 12.1% 12.8% margin 3 Capital structure (LTM*) 1.5x- n.a. n.a. 3.5x 2.5x (Leverage: Net debt / adj. 2.5x
Slide 14: Group: Strong growth in order intake
1 Net sales growth Group: Strong growth in order intake Order intake Order backlog Net sales Quarterly net sales growth MSEK MSEK MSEK +3% -3% 6% 6000 3000 +9% 6000 5000 4% 2500 5000 4000 4000 2% +14% 5,457 5,638 2000 2,440 2,664 3000 3000 5,311 5,173 0% 1500 +1% 2000 2000 -2% Q4 Q1 Q2 Q3 1,680 1,91
Slide 15: AirTech: Strong growth in industrial segment
1 Net sales growth AirTech: Strong growth in industrial segment Order intake Order backlog Net sales Quarterly net sales growth MSEK +1% MSEK MSEK 10% 4000 2500 -4% +7% 4000 8% 3500 2000 3500 6% 3000 3000 4% 2500 3,892 3,928 3,777 3,614 +15% 1500 2500 2% 2000 1,886 2,025 2000 -1% 0% 1500 1000 1500 1
Slide 16: FoodTech: Strong growth in China
1 Net sales growth FoodTech: Strong growth in China Order intake Order backlog Net sales Quarterly net sales growth MSEK MSEK MSEK 1800 +2% 2000 +9% 800 8% +16% 1600 1600 1400 6% 600 1200 1,563 1,595 4% 1200 1,596 1,746 1000 2% +12% 400 800 +7% 800 554 640 600 0% 400 400 -2% Q4 Q1 Q2 Q3 513 575 200
Slide 17: Improved adjusted EBITA Q3 2020
2 Adjusted EBITA-margin % Improved adjusted EBITA Q3 2020 Group AirTech FoodTech MSEK MSEK MSEK +3% 15.4% 0% +13% 800 18% 500 16% 250 15.9% 16.5% 18% 14.8% 16% 450 12.9% 12.6% 13.2% 14% 13.9% 15.3% 16% 700 13.7% 400 200 600 12.1% 12.8% 14% 350 12% 14% 10% 12% 12% 300 150 217 244 500 10% 10% 250 +19%
Slide 18: Delivering on customer offering and footprint optimization
2 Adjusted EBITA-margin Delivering on customer offering and footprint optimization Status third quarter: Sharpening measures • Implementation progressing according to plan • Exit non-core part of the commercial business in the US • Preparation for execution on-going within business area AirTech • Ai
Slide 19: Strong cash flow development
3 Capital structure Strong cash flow development Cash flow development, LTM* Cash flow for the period, Q3 2020 MSEK Cash flow from operating activities MSEK Cash flow for the period 1,000 400 350 800 300 117 -37 600 250 200 -75 -6 -43 400 150 242 242 200 100 -227 50 0 0 -28 -200 -50 Operating Revers
Slide 20: 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 100% Net debt / adj. EBITDAx 4,5 80% 4 60% 3,5 40% 3 20% 2,5 0% 2 Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020 Q3 202
Slide 21: Agenda
Agenda Highlights third quarter 2020 Implementation of strategy Third quarter 2020 results Summary 21
Slide 22: Strategy execution yields good results
Strategy execution yields good results • Strong order intake driven by the industrials segment in Americas for AirTech and the swine segment in China for FoodTech • Profitable growth, achieved through continued cost control and focus on efficiency improvement • Strengthened financial position, lever
Slide 23: Questions & Answers
Questions & Answers @ Munters