Slide 1: Munters Q2 report 2024
Munters Q2 report 2024 Klas Forsström, President and CEO Katharina Fischer, GVP and CFO Ann-Sofi Jönsson & Line Dovärn, Investor Relations
Slide 2: Strong second quarter – well positioned for future growth
Strong second quarter – well positioned for future growth Robust order intake Increased net sales All–time high profitability Order intake Announced orders* Order backlog MSEK Adj. EBITA Adj. EBITA margin Net Sales MSEK MSEK 15 000 800 20% 17.8 6 000 11,834 6 000 18% 600 16% 10 000 3,791 673 14% 4 0
Slide 3: Americas & EMEA main drivers of growth
Americas & EMEA main drivers of growth Regional share Q2 Order intake Net sales Order intake Net sales Order intake Net sales 14% 12% 26% 26% 60% 62% Americas - order intake EMEA - order intake APAC- order intake • AirTech – flat development, growth in • AirTech – growth especially in the • AirTech
Slide 4: Solid order backlog – large orders supportive into 2025
Solid order backlog – large orders supportive into 2025 2022 2023 2024 2025 2026 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 manufacturer 2 climate control system orders
Slide 5: AirTech: Strong underlying long-term demand
AirTech Strong underlying long-term demand >5% ~ 1-5 % ± 0 -1% neg Order Intake flat mainly due to weak % order intake Market battery market in APAC; Customer segment Q2 2024 Outlook * • Industrial (excl. battery) good development in EMEA & Americas, Industrial 53% slightly offset by APAC • Battery
Slide 6: AirTech: Strengthened margin development
AirTech Strengthened margin development Change (%) Q2 Q2 Net Sales decreased, primarily weaker MSEK 2024 2023 Org. Struct* FX battery sub-segment in APAC; Order intake 1,760 1,726 -5 7 0 • Industrial (excl. battery) – declined, weak Americas whereas Order backlog 3,850 4,124 growth in food in EMEA &
Slide 7: AirTech: Solid development in several segments
AirTech Solid development in several segments Development Q2 2022 - Q2 2024 MSEK Order intake per segment 3 000 • Battery - increased 2 500 competition and cont. delays in greenfield investments, slow down in all regions 2 000 • CT- stable development • Other industrial – steady 1 500 development •
Slide 8: Components – the foundation we build our business on
Components – the foundation we build our business on Desiccant wheel (rotor) removes Evaporative pads add moisture moisture, as much as 99.9% • historically used in many industrial & agricultural processes ~40% of Component order intake • increasingly popular in server halls & data How we stay ahead
Slide 9: Dehumidification crucial to maximize operational lifespan of a wind park
Dehumidification crucial to maximize operational lifespan of a wind park Vestasoverview2018 Dehumidification in–Vestas is not wind farms just Vestas important as high humidity can significantly impact efficiency: • combats condensation and mold growth • prevents corrosion • reduces electrical malfun
Slide 10: Data Center Technologies: Underlying demand strong & increased order backlog
Data Center Technologies Underlying demand strong & increased order backlog >5% ~ 1-5 % ± 0 -1% neg Customer Order Intake Market segment Q2 2024 Outlook * Order Intake flat; Hyperscaler 2% • good level of smaller and mid-sized order, driven by the colocation market in Americas • underlying demand re
Slide 11: Data Center Technologies: Continued significant profitability improvement
Data Center Technologies Continued significant profitability improvement Change (%) Q2 Q2 2024 2023 Org. Struct* FX MSEK Net Sales strong growth; Order intake 1,060 1,067 -2 0 1 Order backlog 6,903 6,037 • successful execution on deliveries of large orders Net sales 1,109 878 24 0 2 • EMEA continues
Slide 12: Broadening our offering for data center cooling solutions
Data Center Technologies Broadening our offering for data center cooling solutions Acquisition of Italian Geoclima • Manufacturer of air- and water–cooled chillers - which plays a critical role in the data center cooling market today • Broadening cooling portfolio - enhancing our ability to offer fu
Slide 13: Launch of Munters Coolant Distribution Unit (CDU)
Data Center Technologies Launch of Munters Coolant Distribution Unit (CDU) 1st order for “single phase direct to chip cooling” • developed through close collaboration with a customer and partners • equipment sold to facilitate heat rejection with either single or two phase direct to chip liquid cool
Slide 14: Conclusion reached in strategic review of FoodTech equipment
FoodTech Conclusion reached in strategic review of FoodTech equipment – increased focus on digital FoodTech Controllers, FoodTech equipment Software, IoT & Sensors In 2023, a strategic review of the Ambition: become the global leader in Equipment business within FoodTech connecting and optimizing th
Slide 15: Continued expansion of our digital portfolio
FoodTech Continued expansion of our digital portfolio Acquisition of majority share in Automated Environments • US-based company specializing in automated control systems for the layer industry • Expands FoodTech’s digital solutions portfolio, enhancing offerings for food producers • Positions us to
Slide 16: FoodTech: Increasing demand & order backlog
FoodTech Increasing demand & order backlog >5% ~ 1-5 % ± 0 -1% neg % order intake Market Customer segment Q2 2024 Outlook * Order Intake increased; • CS – primarily driven by Americas & EMEA, offset Climate Solutions (incl. by weaker APAC Controllers) 90% • DS – continued strong growth in Americas,
Slide 17: FoodTech: Strong margin increase & continued sales momentum
FoodTech Strong margin increase & continued sales momentum Change (%) Q2 Q2 2024 2023 Org. Struct* FX MSEK Order intake 741 646 9 6 0 Net Sales grew strongly; Order backlog 1,081 992 • CS – good growth in Americas & EMEA, offset by Net sales 763 583 26 6 -1 weaker APAC - of which SaaS 71 42 • DS – c
Slide 18: Launch of our most energy efficient E-line fans
FoodTech Launch of our most energy efficient E-line fans E-line fans, engineered to deliver transformative cost reductions & environmental benefits • The motor runs on EC* technology • Energy saving - up to 50% compared to similar fan with an AC motor* • Precision ventilation - optimal efficiency by
Slide 19: Service ambition in line with strategic direction
Service ambition in line with Service & Components Q2 2024* strategic direction % of net sales 8% 4% 2% 25% 11% Service includes: • After-market service* in all business areas AirTech DCT FoodTech Components Total service • SaaS revenues in FoodTech service service Components sales in AirTech Servic
Slide 20: Advancement towards our strategic sustainability targets
Advancement towards our strategic sustainability targets Targets for 2030 End June 2024 (2023) Reduce CO2e emissions Scope 1 & 2: Net zero Renewable electricity, factories 78%2 (81) Scope 3: reduction in line E with the Paris agreement Electricity efficiency, factories 1 0.52 (0.50) 1.5°C. Gender Eq
Slide 21: Financial highlights
Financial highlights &
Slide 22: Increased profitability, strong cash flow & lower leverage
Group Increased profitability, strong cash flow & lower leverage Q2 Q2 Change (%) • Net Sales increased; 2024 2023 Organic Structural Currency MSEK growth growth* effects very strong growth in DCT & FT Order intake 3,536 3,427 -2 5 0 • Adj. EBITA margin improved; Order backlog 11,834 11,153 incr
Slide 23: All-time high profitability – investments to capture growth continue
Adjusted EBITA-margin All-time high profitability – investments to capture growth continue Group adj. EBITA margin impact Main factors affecting adj. EBITA margin in Q2: Q2 2023 • Strong volume increase driven by DCT & FT adj. EBITA % 13.5 • Product mix had a positive impact in AT & DCT Volume + and
Slide 24: Improved cash-flow and strengthened financial position
Cash flow Improved cash-flow and strengthened financial position Group Cash Flow YTD, MSEK Cash flow from changes in WC Q2 2024 Q2 2023 Change in accounts receivable 52 -22 388 Change in inventory -110 43 -599 Change in accrued income 41 -295 827 Change in accounts payable -5 60 Change in advances f
Slide 25: Investments supporting next growth wave
Investments supporting CAPEX (quarterly) next growth wave 400 7% 6% 5% MSEK 4% %-net sales 200 3% 2% PPE and intangibles investments in 2024: 1% 0 0% • investments aiming at strengthening competences, Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 upgrades, digitalize & automize 2022 2023 2024 CAPEX CAPEX % of net sale
Slide 26: M&A categories in focus
Delivery on M&A agenda to fuel growth Structured process for M&A and integration with aligned workflows 2023 2024 Acquisition, Tobo Component, Sweden Acquisition, Geoclima, Italy Focus on value creating from day 1 Core / Net sales: MSEK 76 Net sales: MEUR 40.1 Employees: 165 of integration: Employee
Slide 27: Decreased leverage ratio 4 quarters in a row
Leverage & net debt Decreased leverage ratio 4 quarters in a row Development of leverage & net debt 2.9 3.0 2.9 3,0 Leverage ratio decreased 2.7 2.7 • mainly driven by increased 1 000 operating earnings & lower net 2,5 debt -1 000 2.2 2,0 Net debt decreased: 2.1 2.0 • increased cash flow from operat
Slide 28: Summary
Summary
Slide 29: Progression towards our financial targets
Financial targets Progression towards our financial targets Currency adj. growth* Adj. EBITA margin OWC/net sales** 20% 17.8% 40% 15% 12.5% 15% Financial target range 13-10% 30% Financial target >14% 10% 10% 20% 5% Financial target >14% 5% 10% 7% 0% 0% 0% Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q2 Q3 Q4 Q1 Q2 Q3
Slide 30: Quarterly highlights
Quarterly highlights All-time high Solid underlying Portfolio advancements; Updated strategic profitability & strong market demand Conclusion FoodTech sustainability targets foundation for future equipment strategic and SBTi commitment growth review Growth through M&A 30 30
Slide 31: Questions & Answers
Questions & Answers Questions & Answers Q2 report 2024 31
Slide 32: Forward-looking statements disclaimer
This presentation contains forward-looking statements that reflect Munters’ current expectations on future events and Munters’ financial and operational development. Although Munters believes that the expectations reflected in such forward-looking statements are based on reasonable assumptions, no a