Slide 1: Munters – Investor Presentation
Munters – Investor Presentation Investor Relations
Slide 2: Agenda
Agenda Introduction Q4 highlights AirTech Data Center Technologies FoodTech Appendix
Slide 3: World leader in energy-efficient climate solutions
World leader in energy-efficient climate Sales in number of countries solutions Order Intake per >45 business area Munters offers climate solutions where controlling Sales MSEK* indoor humidity, temperature and energy efficiency is mission-critical 17% 13,930 48% Regional share FY 35% Number of prod
Slide 4: Business critical solutions to a broad range of industries
Business critical solutions to a broad range of industries Distribution net sales FY 2023 FoodTech Indoor climate solutions for 17% agriculture and greenhouses Dry air for battery Clean Technology solutions production for a healthier planet AirTech DCT 59% 24% Sensors & Controllers for farmers Const
Slide 5: Core technologies – dehumidification and evaporative cooling
Core technologies – dehumidification and evaporative cooling Core Technologies AirTech offering FoodTech offering Evaporative Rotors with desiccant Dehumidifiers Climate systems High-efficiency Air inlets cooling pads drying wheel fans DataCenter Technologies offering Packaged air Chilled Water SyCo
Slide 6: Progression towards our financial targets
Financial targets Progression towards our financial targets Net sales growth* Adj. EBITA margin OWC/net sales** 40% 15% 15% 14,2% Financial target >14% 12,8% Financial target range 13-10% 30% 10% 10% 20% 16% 5% 5% 10% Financial target 10% 0% 0% 0% Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q
Slide 7: Advancement towards our sustainability goals
Advancement towards our sustainability goals End of December 2023 Goal Net zero Renewable electricity, factories 80% (72) emissions Scope Energy efficiency, factories* 0.52 (0.62) from own 1&2 operations by Recycling rate 55% (52) 2030 Health & Zero Total Recordable Incident rate 1.2 (1.8) Safety ac
Slide 8: Agenda
Agenda Introduction Q4 highlights AirTech Data Center Technologies FoodTech Appendix
Slide 9: Strengthened market position and strong results
Q4 Strengthened market position and strong results Stable long-term growth trends Strong net sales growth Robust improvement in profitability Order intake Announced orders* Order backlog MSEK Adj. EBITA Adj. EBITA margin MSEK Net sales MSEK 15 000 600 16% 6 000 6 000 5,651 467 14% 11,333 10 000 3,65
Slide 10: Solid order backlog – large orders supportive into 2025
Q4 Solid order backlog – large orders supportive into 2025 2022 2023 2024 2025 MUSD 115 US colocator SyCool Split solutions MUSD 65 US car manufacturer Climate control systems MUSD 63 US colocator Standard chilled water (CRAHs) MUSD 176 US colocator SyCool Split solutions MUSD 54 Multinational car m
Slide 11: Closing the year with strong results
Group Closing the year with strong results • Net Sales increased; Q4 Q4 Change (%) FY FY Very strong growth in DCT 2023 2022 Organic growth Structural growth* Currency effects 2023 2022 MSEK Order intake 5,651 3,143 82 4 -7 14,116 16,830 • Adj. EBITA margin improved; Order backlog 11,333 11,463 11
Slide 12: Agenda
Agenda Introduction Q4 highlights AirTech Data Center Technologies FoodTech Appendix
Slide 13: AirTech: Global leader in air treatment for industry
AirTech Global leader in air treatment for industry Customer segments of order intake 15% 10% 7% Order intake, MSEK* Net sales, MSEK* Adjusted EBITA margin* 25% 19% 6,796 8,226 15.5% 5% 19% MSEK MSEK % Battery Food processing 2136 20 Other Industrial Commercial 2500 Clean Technologies Service 2000 C
Slide 14: AirTech: Stable long-term growth trends
AirTech Stable long-term growth trends >5% ~ 1-5 % ± 0 -1% neg % order intake Market Customer segment Q4 2023 Outlook * Order Intake decreased -31% org.; Industrial 55% • excl. large order of MSEK 560 received in Q4 2022, decrease -8% org. …whereof battery 10% • Battery – weaker in all regions. APAC
Slide 15: AirTech: Q4 - Changed business mix affecting margin
AirTech Q4 - Changed business mix affecting margin Change (%) Order intake & backlog development Q4 Q4 FY FY 2023 2022 Org. Struct* FX 2023 2023 MSEK 4 000 Order intake 1,922 2,642 -31 4 0 6,796 8,399 MSEK 2 000 Order backlog 3,250 4,698 3,250 4,698 Net sales 2,136 2,013 0 5 1 8,226 6,830 0 Q421 Q12
Slide 16: Dehumidification Technologies market players
AirTech Selection of market players - mainly small local players Small Medium Large Extra Large (<1 BSEK) (1-2 BSEK) (2-10 BSEK) (>10 BSEK) AM AS AS AM AM/AS/EU AS Humidity Control Dehumidification AM/AS AM EU AM Technologies AM EU AS AS AM AS AS AS AS EU Humidi- fication AS AM AS EU/AS EU/AS/AM Tec
Slide 17: Stable market activity in several segments
AirTech Stable market activity in several segments MSEK Order intake per segment 3 000 2 500 • Variations in large orders i.e., batteries 2 000 • Other industrial & CT 1 500 steady development 1 000 • Service & components stable and growing 500 • Secure future orders & ramp up production 0 Q1 2022 Q
Slide 18: Agenda
Agenda Introduction Q4 highlights AirTech Data Center Technologies FoodTech Appendix
Slide 19: Sustainable cooling solutions that facilitate digitization
Data Center Airech Technologies Sustainable cooling solutions that facilitate Customer distribution of order intake digitization 1% 22% Order intake, MSEK* Net sales, MSEK* Adjusted EBITA margin* 77% 4,948 3,408 15.2% Hyperscalers Colo MSEK MSEK % Telco & enterprises 3184 1000 925 15,6 16 3000 800 O
Slide 20: Data Center Technologies: Q4 - Significantly increased demand
Data Center Technologies Q4 - Significantly increased demand >5% ~ 1-5 % ± 0 -1% neg Customer order intake Market segment Q4 2023 Outlook * Order Intake increased significantly; • two large orders of appr. BSEK 2.2 received in the Hyperscaler 22% quarter • several orders received from colocator & hy
Slide 21: Q4 - Good deliveries on large orders
Data Center Technologies Q4 - Good deliveries on large orders Order intake & backlog development Change (%) 8 000 Q4 Q4 FY FY 2023 2022 Org. Struct* FX 2023 2022 6 000 MSEK MSEK Order intake 3,184 30 n.m. n.m. n.m. 4,948 6,245 4 000 Order backlog 7,206 5,937 7,206 5,937 2 000 Net sales 925 500 81 -
Slide 22: Data Center Technologies market players
Data Center Technologies Selection of market players - Munters well positioned for growth An order in DCT generally consists of several equipment deliveries Small Medium Large Extra Large (<1 BSEK) (1-2 BSEK) (2-10 BSEK) (>10 BSEK) Technologies Data Center Several Several EU/AS/AM EU/AS/AM AM/EU EU/
Slide 23: Agenda
Agenda Introduction Q4 highlights AirTech Data Center Technologies FoodTech Appendix
Slide 24: A world leader in climate control systems for food production
FoodTech A world leader in climate control systems for food production Customer segments, net sales 2% 4% 6% 10% Order intake, MSEK* Net sales, MSEK* 49% Adjusted EBITA-margin* 12% 2,433 2,363 9.4% 17% 700 MSEK % 617 20 Broiler Swine 600 555 600 Layer Digital Solutions Greenhouse Dairy 500 % Other 1
Slide 25: FoodTech - a leading dual offering
FoodTech FoodTech - a leading dual offering Products (examples) Typical customers AMINO Integrators software a dual TRIO Farmers / Dealers offering controller SATURN Farmers / Dealers fan FoodTech stands on two pillars, climate solutions and digital solutions 25
Slide 26: Q4 - Recovery in EMEA driving growth
FoodTech Q4 - Recovery in EMEA driving growth >5% ~ 1-5 % ± 0 -1% neg % order intake Market Customer segment Q4 2023 Outlook * Order Intake increased +12% org.; Climate Solutions (incl. Controllers) 80% • Climate Solutions – driven by recovery in EMEA. Americas slight increase, slight recovery in …w
Slide 27: Q4 - All regions contribute to significant margin improvement
FoodTech Q4 - All regions contribute to significant margin improvement Order intake & backlog development Change (%) Q4 Q4 FY FY Org. Struct* FX 1000 2023 2022 2023 2022 MSEK 750 Order intake 555 483 12 4 -1 2,433 2,242 MSEK 500 Order backlog 877 828 877 828 Net sales 617 514 16 6 -1 2,363 2,211 250
Slide 28: Selection of market players within Climate solutions
FoodTech Selection of market players within Climate solutions Fans Fans EU/AS/AM EU/AS/AM EU EU/AS/AM China EU/AS EU Cooling Cooling EU EU/AS/AM AS AM Middle East AS AM Inlets Inlets EU/AS/AM EU EU EU AM EU/AS/AM Other Controllers Other Controllers EU EU/AS/AM EU/AS/AM EU/AS/AM AM/AS EU/AS/AM EU/AS/
Slide 29: Successful SaaS growth
FoodTech Successful SaaS growth Our ARR continues to grow significantly with a mix of new customers and conversions to our ARR* (mSEK) new software solution Amino In Q1 2022 Munters (through MTech) +69% announced an important SaaS contract with one of the world’s largest food producers. Value of the
Slide 30: Agenda Update
Agenda Update Introduction Q4 highlights AirTech Data Center Technologies FoodTech Customer cases & M&A Appendix
Slide 31: New innovative dehumidification system in North America
AirTech New innovative dehumidification system in North America Specially developed for low dew point (LPD) applications such as battery producers • Ability to maintain dry rooms at continuous low dew points • 40% smaller footprint vs. industry standard • Available for indoor and outdoor installatio
Slide 32: First order won to pair heat rejection with liquid cooled servers
Data Center Technologies First order won to pair our heat rejection technology with liquid cooled servers • Joint R&D development with large colocation customer • An air cooled computer room air handler (CRAH) can be exchanged with the LCE (liquid cooling evaporator) and paired with a SyCool condens
Slide 33: Hyperscaler order for MCW received
Data Center Technologies Hyperscaler order for MCW received Munters Modular Chilled Wall (MCW) • DCT secured several orders for multiple American hyperscale deployments of a chilled water fan arrays • This product consists of fans and chilled water coils arranged into modular sections and connected
Slide 34: Strengthening the FoodTech portfolio
FoodTech FoodTech Strengthening the FoodTech portfolio HPAI (highly pathogen avian influenza) • Airborne virus which severely impacts the poultry industry, which can be transported > 20 km • A seasonal threat to individual poultry farms years ago, but today widespread in all regions of the world Mun
Slide 35: Appendix
Appendix 44
Slide 36: Munters strategic journey continues
Munters strategic journey continues 2019 2020 2021 2022 2023 • Two business • New strategic • Cont. efficiency • AT & FT delivery • Increased focus on areas: AT & FT priorities launched improvement on strategic prioritized growth • CEO & partly new • Organizational re- initiatives review areas manag
Slide 37: Strong service growth
Strong service growth • Group 2023 – amounted to MSEK 1,821, 13% of total net sales (org. growth 4%) • AirTech 2023 – 19%, majority of the groups service net sales (org. growth 3%) • DCT 2023 – ~5 %, minor service sales as main part of business greenfield installations • FT 2023 - minor service sale
Slide 38: Strong margin improvement in FoodTech & DCT
Adjusted EBITA-margin Strong margin improvement in FoodTech & DCT Group adj. EBITA margin impact Main factors affecting adj. EBITA margin in Q4: Q4 2022 10.1 • Strong volume increase driven mainly by DCT adj. EBITA % Volume ++ • Net pricing increases contributed to margin improvement Net pricing ++
Slide 39: Cash flow from operating activities improved in the quarter
Cash flow Cash flow from operating activities improved in the quarter Group Cash Flow YTD, MSEK billion Cash flow from changes in WC Q4 2023 Q4 2022 Change in accounts receivable 149 -484 Change in inventory 188 -252 Change in accrued income 11 -3 444 405 Change in accounts payable 111 364 281 Chang
Slide 40: Investments for growth
PPE & Intangibles Investments for growth 800 6% 5% 600 %-net sales 4% Investments in PPE and Intangibles to MSEK 400 3% support growth 2% • 2023: 200 1% • Smaller investments aiming at upgrade, 0 0% digitalize and automize Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 • 2024, main investments: 2021 2022 2023 PPE, R12M
Slide 41: Integration critical to create value
Integration critical to create value Integration - critical aspect of mergers, with three focus areas: • Value creation - delivering on acquisition business case • People and culture - creating a common culture and sense of belonging • Operational processes - establishing common processes and tools
Slide 42: Decreased leverage ratio
Leverage & net debt Decreased leverage ratio Development of leverage & net debt 2 000 3,0 • Leverage ratio decreased mainly 1 000 2,5 driven by increased adj. EBITA. 0 2.1 • Net debt increase due to: 2,0 -1 000 acquisitions financed partly by debt during the last 4 quarters -2 000 1,5 increased
Slide 43: Contact details Investor Relations
Contact details Investor Relations 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 Please visit Investor Relations website fo