Slide 1: Munters Q1 report 2021
Munters Q1 report 2021 Klas Forsström, President and CEO Annette Kumlien, GVP and CFO
Slide 2: Agenda
Agenda Highlights Q1 2021 Implementation of strategy Q1 2021 financial highlights Summary
Slide 3: Growth in first quarter driven by business area AirTech
Growth in first quarter driven by business area AirTech Strong growth • Order intake increased FX-adj. by +20% (-8) Order intake Net sales - Driven by continued strong development in the Industrial segment in AirTech MSEK 2500 +8% MSEK 2000 +3% • Order backlog increase FX-adj. by +11% 2000 1500 • Ne
Slide 4: Order intake Q1 – Growth in China and in the US
Order intake Q1 – Growth in China and in the US Americas Regional split Americas EMEA APAC • AirTech - growth driven by Industrial segment, primarily pharma and secondarily battery sub-segment, offsetting negative effect from exit of Share of total order intake 38% 33% 30% non-core Commercial segmen
Slide 5: Recent market trends 2021 - AirTech
Recent market trends 2021 - AirTech % of net sales Customer segment FY 2020 Recent trends Market comments Industrials 37% Battery and Pharma pulling ahead with major investments Lithium batteries 6% Battery strong demand primarily in Asia Food processing 8% Modest activity during Covid pandemic Othe
Slide 6: Recent market trends - FoodTech
Recent market trends - FoodTech % of net sales Customer segment FY 2020 Recent trends Market comments Broiler ~50% US market temporarily slow Swine ~30% High growth in China Layer ~15% Stable market with high interest in cage-free Greenhouse ~5% Growth driven by increased demand Dairy <5% Low growth
Slide 7: Agenda
Agenda Highlights Q1 2021 Implementation of strategy Q1 2021 financial highlights Summary 7
Slide 8: Strategic priorities – first quarter 2021
Strategic priorities – first quarter 2021 Strategic priorities: Focus areas Q1 achievement Further steps taken to ensure implementation of value Customers Improve go-to-market models and pricing strategies selling and pricing strategies. Focus investments in R&D and product portfolio Increased headc
Slide 9: Innovation – driving force for increased customer value
Innovation – driving force for increased customer value • Munters deliver smart energy efficient climate & Q1 2021: dehumidification solutions and products used in mission • Expanded AirTech R&D organization to ensure critical processes with the highest quality and implementation of strategic priori
Slide 10: Munters develop climate-friendly greenhouse solution
Munters develop climate-friendly greenhouse solution • Munters designed and realized the first climate-friendly solution dedicated semi-closed greenhouse in Italy • Ensure an optimal climate throughout the year and monitor the greenhouse climate in a uniform way and leveraging solar radiations and o
Slide 11: Increased focus on Sustainability
Increased focus on Sustainability • Sustainability is one of the most important drivers for Munters’ strategy Munters sustainability framework is divided today and in the future into three areas • Initiatives in 2020 in resulted in improvements in several key areas: Example of KPIs FY 2020 (2019): ‒
Slide 12: Agenda
Agenda Highlights Q1 2021 Implementation of strategy Q1 2021 financial highlights Summary 12
Slide 13: Q1 2021 vs. Mid-term targets and Q1 2020
Q1 2021 vs. Mid-term targets and Q1 2020 Mid-term Q1 Q1 1 targets 2020 2021 Net sales growth Org. growth p.a. over a 5% -7% 14% business cycle 2 Adjusted EBITA- 14% 8.3% 12.3% margin 3 Capital structure (LTM*) 1.5x- 3.1x 1.9x (Leverage: Net debt / adj. 2.5x EBITDA) *LTM = Last Twelve Months 13
Slide 14: Group: Strong growth driven by AirTech
1 Net sales growth Group: Strong growth driven by AirTech Order intake Order backlog Net sales Quarterly net sales MSEK +8% MSEK MSEK MSEK 2000 -1% 2000 4% 3000 2000 +3% 2500 2% 1500 1500 1500 0% 2000 1,849 1,995 2,808 2,769 1000 -2% 1000 1500 1000 1,566 1,612 -4% 1000 500 500 500 -6% 500 0 -8% 0 0
Slide 15: AirTech: Strong growth driven by batteries and pharma sub-segment
1 Net sales growth AirTech: Strong growth driven by batteries and pharma sub-segment Order intake Order backlog Net sales Quarterly net sales MSEK MSEK +10% -3% MSEK MSEK 1500 2500 1500 +6% 1500 10% 1250 2000 1250 1250 5% 1000 1000 1,343 1,483 1500 2,186 2,129 1000 750 1,127 1,195 750 0% 750 1000 50
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 MSEK MSEK MSEK MSEK 600 +1% 700 +3% 600 15% 600 -5% 500 600 500 500 10% 500 400 400 400 5% 515 520 400 449 425 300 300 622 640 300 0% 300 200 200 200 -5% 200 100 100 100 100 0 -10% 0 0 0 Q1 Q
Slide 17: Solid improvement adjusted EBITA Q1 2021
2 Adjusted EBITA-margin Solid improvement adjusted EBITA Q1 2021 Group AirTech FoodTech MSEK MSEK MSEK +81% 220 +53% 20% 220 20% 220 20% 200 18% 200 18% 200 18% 180 15.1% 180 180 16% 16% 16% 12.3% 160 160 160 14% 140 14% 140 11.5% 14% 140 12% 120 12% 120 8.8% 181 120 9.1% 12% 8.3% 10% 100 10% 100 10
Slide 18: Delivering on our strategic journey
2 Adjusted EBITA-margin Delivering on our strategic journey Sharpening measures - status first quarter: Sharpening measures • Program announced in June 2020 aiming at sharpening the customer • Exit non-core part of the commercial business in the US offering and footprint optimization. Program timeli
Slide 19: Strong cash flow development
3 Capital structure Strong cash flow development Cash flow development, LTM* Cash flow for the period, Q1 2021 MSEK Cash flow from operating activities MSEK 1200 Cash flow for the period 350 1000 300 -6 250 63 -53 800 200 150 -138 600 222 100 400 50 88 -58 0 200 -101 -50 -71 0 -100 Operating Reversa
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 (LTM OCF*/Adj. EBITA) Development of leverage 120% Net debt / adj. EBITDAx, LTM 100% 5 80% 4 60% 3 40% 2 20% 1 0% 0 Jul-Jun Oct-Sep Jan-Dec Apr-Mar Jul-Jun Oct-Sep Jan-Dec Apr-Mar Apr-Mar Jul-Jun Oct-Sep Jan-De
Slide 21: Agenda
Agenda Highlights Q1 2021 Implementation of strategy Q1 2021 financial highlights Summary 21
Slide 22: Solid first quarter with improved market conditions
Solid first quarter with improved market conditions • Mixed impact from Covid-19, with major impact from shortages in the supply chain. We expect that challenges in securing the supply chain will remain for the coming months • Strong growth in prioritized areas, improved profitability and good cash
Slide 23: Questions & Answers
Questions & Answers @® Munters