Munters Group Ab · OMXSTO:MTRS
Munters Group Ab — Technical Presentation (September 2023)
62 slides from Munters Group Ab's technical presentation, September 2023
Slide 1: Munters, Hodonin, September 2023
@ Munters Hodenin, September 2023 ye pectiens =a eS ae
Slide 2: EMEA Operations
EMEA Operations
Slide 3: • • • •
• • • •
Slide 4: The current operational footprint in EMEA comprises four manufacturing sites and one warehouse
The current operational footprint in EMEA comprise four manufacturing sites and one warehouse Current state configuration Future state configuration * Two main factories: Tobo and + Continue to develop Tobo and Hodonin Hodonin to sustain the growth, . improving flows, increasin: * Tobo component acq
Slide 5: Hodonin and Hrusky Factories
Hodonin and Hrusky Factories — Hodonin plant, 10,000 m2 “Centre of excellence for production of DSS Pro & customized systems" + Employees: 220 (temps included) * Potential for capacity growth * Possibility to expand another 5,000 m2 * "Green Factory" - solar panel for full energy autonomy > Hrusky p
Slide 6: Tobo Factory
Tobo Factory “Centre of excellence for production of media & rotors, components and standard units" > Tobo plant, 13,000 m2 * Employees: 280 (temps included) * Potential for capacity growth * Possibility to expand another 10,000 m2 — Products and Customized Systems * MX2 & MX2 Plus * MDC * ML1, ML2,
Slide 7: Tobo and Tobo Component (acquisition completed at beginning of Q2/23)
Tobo and Tobo Com ponent (acquisition completed at beginning of Q2/23) Tobo Component - Synergies > Move of Tobo components "under one roof" > Space availability for growth > Metal production insourcing — External warehouses elimination + Free Tobo Component building to create new R&D laboratory
Slide 8: Hamburg Assembly Center
Hamburg Assembly Center — Hamburg shopfloor & warehouse, 1350 m? Employees: 10 Additional 155 m? for Service and 250 m? for utilities — Products and Customized Systems DH unit customization (specific for German market) — Capabilities Project Management & Engineering for Customized units Assembly
Slide 9: On Program
On Program March 2023 Management STOP training in Kista May 2023 Full roll out plan for Hodonin, Tobo, Hamburg April 2023 STOP “Train the Trainer” training in Hodonin for AT, FT EMEA, Japan, China Sep 2023 EMEA leadership training in Hodonin (2024: BUs & Service)
Slide 10: The start of Munters Czech Republic
Munters | The start of Munters Czech Republic
Slide 11: History of Munters Czech
History of Munters Czech 1999 + Merged with Dutch company HB Group (drying and cooling products and equipment) 2017 + Acquired by Munters Group 2021 + First Launch of DSS Pro units => Innovation of the DSS product 2006 + Second production hall in Hrusky 2020 + Business name changed to Munters Czech
Slide 12: Krako founded in 1994 - originally wood dryers
Krako founded in 1994 - originally wood dryers
Slide 13: DSS & DSS Pro - the Next Level of Dehumidification
DSS & DSS Pro - the Next Level of Dehumidification i i | ll Ls ] —| | ie Es es Lae va
Slide 14: Spray Dry Food (Pure system) - Pure system 4500 - the biggest unit ever
Spray Dry Food (Pure systém) — Pure system 4500 - the biggest unit ever
Slide 15: Slide 15
Slide 16: Hodonin: Before and after reconstruction
Hodonin: Before and after reconstruction Before - November 2021 In production After - September 2022
Slide 17: Converting to a modern company for the future
Converting to a modern company for the future Management team reorganization Full integration in Munters organization Lean and MPS (Munters Production System) Implementation process approach Product standardization Line concept Increase of capacity Floor space - new facility construction Indirect he
Slide 18: Global AirTech introduction
Global AirTech introduction Kg
Slide 19: Global leader in air treatment for industry
Global leader in air treatment for industry eet seta Order intake, MSEK* Net sales, MSEK* Adjusted EBITA margin” 8,506 7,808 15.9% 9 9 . (o) MSEK MSEK % mAmericas = EMEA = mAPAC 2500 2088 20 2000 16.6 . 7 Order intake per region 2000 15 \ 1726 1500 1500 10 1000 1000 5 500 500 0 0 0 Q2 @3 Q4 QI @2 G3
Slide 20: Selection of market players - mainly small local players
Selection of market players - mainly small local players Small Medium Large Extra Large (<1 BSEK) (1-2 BSEK) (2-10 SSEK) (10 BSEK) a ‘SemuGnen BEY aga ss 4 AM/AS/EU IT! _ Nova Ane-Fonovoces fisair SSRYSOLUTIONS * ; “7 toccs cua . £9 3 am EU pevapee | 69 g < aM Og 3 COTES, Drver ° 2: = S as < NICHIAS
Slide 21: AirTech segments
AirTech segments ILLUSTRATIVE Direction of positioning for AirTech - 2023 and beyond Focus areas 2023 and beyond Service * Developing service offer in a three-pronged way 1. Digitalization 2. increased service share of installed base 3. M&A Battery * Growth opportunities along the value-chain for ba
Slide 22: Continuing to optimize footprint
Continuing to opti Re NH Oo, Buena Vista. US Hygromedia & Rotorsource ~ { Amesbury, US Greenfield establishment to support battery demand in North America Completed greenfield establishment to support battery demand in Europe Tobo, SE Block production increase & process optimization iang Yin, CH Gre
Slide 23: AirTech strengthened with two new acquisitions
AirTech strengthened with two new acquisitions Swedish manufacturer of components, working with Munters since 2005 Deal closed in May 2023 B Net sales 2022 ~MSEK 76, ~ 14 FTE ‘ Expand the humidification business & gives us full process control giving additional growth opportunities Service business
Slide 24: Agreement signed to acquire ZECO - strengthens our market position in India
Agreement signed to acquire ZECO - strengthens our market position in India > ZECO * An Indian manufacturer of air treatment solutions - adds complementary products to our core offer * Positions us for growth with the combined offering of Munters and ZECO products * Provides a strong platform for gr
Slide 25: AirTech Core Innovation Areas
AirTech Core Innovation Areas Further enhancing our technology leadership * Novel materials * Chemistry + Assemblies/combinations * Core processes a ; AD’ * Thermodynamics, heat transfer, physics, fluid dynamics * Calculation & systems simulation + Value Analysis, Value Engineering, Cost Down . * Op
Slide 26: AirTech EMEA Introduction
AirTech EMEA Introduction Kg
Slide 27: HCT EMEA is managed as two separate regions
HCT EMEA is managed as two separate regions, including sales offices and distributors in export markets Northeast Region + 13 BU's each with sales office and service depot * Satellite office in Dubai * 14 distributors in the Export markets, reporting to the Northeast Region. Southwest Region 27 &
Slide 28: Center of Excellences support local Business Units
Utilizing expertise and competencies across the region, Center of Excellences support local Business Units Battery CoE Food CoE: Media/Humidification CoE: Energy Solutions CoE: Sustaining momentum ina Develop market position Intensify efforts in all areas Promote Energy Solutions for fast-paced mark
Slide 29: Static Electricity, Sticky Products
Static Sticky Electricity Products
Slide 30: What is Absolute and Relative Humidity (RH)?
What is Absolute and Relative Humidity (RH)? Abs = 7g/kg Abs = 7g/kg Abs = 7g/kg RH = 100% RH = 50% RH = 28% Yb - 7g/kg & 5 7g/kg 6 > 79/kg BD Jp tonlvetab ali wilonbinaliglalialiabilinlvalin retest eee iil JE 9.3°C 20°C 30°C RH is a comparison between how much moisture is in the air, and how much m
Slide 31: Effects of humidity
Effects of humidity Steel Non-Ferrous Metals Gold Plated Contacts I Good Gok IB Bad Wire Insulation Mould, Mildew & Fungus Rubber and Elastomers Car Spay Paint Powders Lithium lon (} 10 20 30 40 50 60 70 80 90 100 &
Slide 32: Annual mean relative humidity
Annual mean relative humidity und the world the average relative humidit 90% 82% 80% 80% 76% 81% 7% 7% . Be eB 9% 70% , 72% 71% 32 & Changing climate affecting values
Slide 33: AirTech - why, how, what?
AirTech — why, how, what? Climate affects the output & ie» quality of many industries and commercial environments. Most materials are unaffected by temperature — it’s the humidity & moisture that matters. Munters can create the best possible sustainable climate conditions for different applications
Slide 34: Applications: food, pharmaceuticals, humidification, batteries, wind power, service
Food)Production Pharmaceuticals Humidification — We ape VON Wik Dealimier We supply solutions for the « We supply components to ee more gras pharmaceutical industry OEM's who serve multitude production environments of industries Infrastructure & Wind Power Battery Production We produce alarge share
Slide 35: Making a difference
Making a difference 35 Battery Dry Rooms: Low dewpoint conditions for lithium R&D and production Product Drying: Increase production and quality in food processing Air Force: Dry air for Aerospace preservation Wind Turbines: Prevent condensation & moisture from causing control errors & corrosion. Ch
Slide 36: Munters Unique Selling Points
Munters Unique Selling Points a ay mI): Product quality and Product quality and Product quality and Product quality and | Performance Performance Performance Performance EJ} * Rotor and media innovation + Energy efficiency + Energy efficiency + Energy efficiency 5 + Small to Large, the right size fo
Slide 37: Battery application
Battery application Lithium reacts intensely a” a HOW BATTERY CHEMISTRIES DIFFER, with water, forming FOR A GOKWH LITHIUM-ION BATTERY lithium hydroxide and jee The cams.ohin baer herssty telcaly nccates highly flammable t ‘ wucet! up 51% hydrogen. The colourless | : ( Nickel (80%) |Lithium iron solu
Slide 38: Battery market growth
38 '90s first labs and pioneering research 2000 Battery market growth early 2000 case Giga studies and scale university factory collaboration 2019 Multiple Giga projects globally Battery Production TWh/year @Benchrnark Minerals 2010 2015 2019 2022 2025 2030
Slide 39: Capturing full value chain opportunity
Capturing full value chain opportunity Additional opportunities er Service and After- & Sales Electrode Cathode and Anode manufacturing Additional Opportunities Additional opportunities te Battery recyclin * Raw material mining & y 9g handling Environmental RH/T control Even lower dewpoint Munters D
Slide 40: The Product: DSS Pro
The Product: DSS Pro
Slide 41: European battery gigafactory projects
EERE uesMeeT Pusicnedie SVOLT 2030, Europe 10 +X GWh TnoBai 202X, Europe X GWh Powerco 2030, Europe 120 GWh ‘vara worors 20XX, Europe X GWh TnoBat exten 2OXX, Europe 40 GWh BATTERY- NEWS.DE MORHOW 2024, Agder 32 GWh SEYONDER 2024, Rogaland 10 GWh E = 2,014 GWh ¢ X | +4% (as of February) GFREYR 2028,
Slide 42: The journey continues...
The journey continues... Today Few years ~10+ years Few decades SB =o Zo pe as e Lithium-lon (LFP & NMC) Solid-State Lithium Sulfur Sodium-lon H2 Fuel Cell / battery = | Lithium highly reactive to water ie Sodium & Solid-State highly reactive to water UN3481 | -30 to -40°C DP -30 to -50°C DP a -30 t
Slide 43: Committed to our people, our culture, and core values
Commited to our people, our culture, and core values 0 2) O7rO YW SWE *2- Xo Sustainable value Passion There is always Team creation for results a better way spirit &
Slide 44: Deep dive - Food
Deep dive - Food
Slide 45: Global Food Report 2023 - Big Trends
Global Food Report 2023 - - Big Trends — Energy saving — Low / No sugar — Clean label — Plant based protein
Slide 46: Munters position on energy saving
Munters position on energy saving All food producers are trying to reduce energy consumption Cost Carbon footprint reduction Sustainability claims ™ Our Path to Net Zero The above is a recent example of a food producers sustainability act Source: https://www.mars.com/sustainability-plan/healthy-plan
Slide 47: Munters position on energy saving
Munters position on energy saving ‘Munters HoneyCombe® Rotor Technology with PowerPurge™ Energy Centre of Excellence Replecincralchinerncentarans Retrofit energy recovery Rotor replacements for old offer expert advice how to Pp g : purges on old Munters units to Munters units to improve Gf with mode
Slide 48: Munters position on Low / No sugar trend
Munters position on Low / No sugar trend > 42% of consumers want to reduce the amount of sugar consumed.” — No sugar products require other sweeteners. + Munters dehumidifiers and high performance rotors are ideal for this > Growth in gum / gummy type products will also drive dehumidifier usage. 48
Slide 49: Munters position on clean label trend
Munters position on clean label trend an icroorganism ay RH% Activity (ay) * A measure of how much water is available for Most bacteria 0.85-0.97 85-97 microbes like mould and bacteria. * High Water Activity (above 0.7) can be bad (depends on the product). Most yeasts 0.75-0.88 75-80 * Low Water Act
Slide 50: Munters position on plant based protein
Munters position on plant based protein = Big growth predicted in 2021/22 but market has stalled: ° Cost of living - consumers switch back to meat * Taste and texture are still not comparable to meat products > Market is still very small, >1% of traditional meat market ° Until price, variety and sen
Slide 51: Food safety and food preservation
Beep clive: Foaelelring, oer ee safety & food preservation
Slide 52: Climate control in every part of food production process
Climate control in every part of food production process = Prevent mold & bacteria —~ Prevent condensation-related te . con - aw, =F contamination & } ~ z 5% wey ve vl <zB — Prevent sticking, caking, softening, hardening of products — Prevent packaging damage & collapse — Prevent trips-and-slips —>
Slide 53: Munters Food Drying: Mastering the Climate
Munters Food Drying : Mastering the Climate ° Increase production ° Increase efficiency ° More uptime ¢ More product safety
Slide 54: Spray Drying Food
Spray Drying Food POWDER FINAL DRYING & COOLING IN THE VIBRO-FLUIDIZERS CONCENTRATED FORMULA DRYING CHAMBER AGGLOMERATION — &
Slide 55: Spray Drying market outlook
Spray Drying market outlook +> EMEA * 170 spray dryer projects in EMEA last 20 years * »300 locations with 21 food dryers * »10 OEM's multiple offices in different countries ° Approx 1.000 installed spray dryers within food ° Potential in Pharmaceutical and Chemical — Globally 3.600 listed spray dry
Slide 56: Food drying focus 2023-2026
Food drying focus 2023-2026 1. UK, France, Germany 2. Poland, Italy, Benelux From reactive to proactive *CoE = Center of Excellence &
Slide 57: High-capacity, energy efficient Spray Drying
High-capacity, energy efficient Spray Drying A new and more efficient spray drying process Your benefits Munters PureSystem Dehumidifier Munters Vagatax heatel spray dryer Increase production capacity —_ 26.9% MAIN AIR FLOW Increase product per year sect aatc 85151 7 g/kg ‘i 100 000 kg/h Yearly savi
Slide 58: Munters products for Spray Drying
Munters products for Spray Drying
Slide 59: We respond to the energy transition within food drying
We respond to the energy transition within food drying Chiller Cold water Steam Boiler Heat Pump suet New technologies requested by customers Munters new patented futureproof technology: Energy transition 30-60% energy reduction Proven technology Munters intelligence &
Slide 60: Sensus, The Netherlands - climate is key
Sensus, The Netherlands -— climate is key note and increased capacity with Munters PureSy Why Munters? * Climate fluctuations * PureSystem 3500 * Expertise * Increase production . 40% * Ensure stable * Understanding product and full * Reliability * No production stops capacity * Capacity to deliver
Slide 61: Munters Service - Big rotor replacements
Munters Service - Big rotor replacements * Whey protein producers, Italy & UK * Service agreement * Maintenance & rotor replacement Rotor Replacement (3546 x 400) (4000 x 400) Why Munters? Proprietary technology Reliable results & efficiency Long standing service agreement <4)
Slide 62: Q&A
Q&A
Munters Group — Technical Presentation (September 2023) on 6ix