Munters Group Ab · OMXSTO:MTRS
Munters Group Ab — Q4 2024 Earnings Presentation
52 slides from Munters Group Ab's earnings presentation, Feb 5, 2025
Slide 1: Munters – Investor Presentation
Munters – Investor Presentation February 2025 Investor Relations
Slide 2: Agenda
Agenda Introduction Quarterly highlights AirTech Data Center Technologies FoodTech Appendix
Slide 3: World leader in energy-efficient climate solutions
Full-year 2024 World leader in energy-efficient Business area share Q4 Countries with sales climate solutions Order Intake & production >30 17% Sales MSEK 42% 15,453 41% Production plants Net Sales 27 18% Adj. EBITA margin 15.1% 52% Regional share Q4 30% Number of Order Order 62% Intake 28% Order 10
Slide 4: We assist our customers in securing critical operations
We assist our customers in securing critical operations, production quality and to become more sustainable Net sales per business area - FY 2024 AirTech 53% DCT 28% FoodTech 19% State-of-the-art cooling Ultra dry air for battery Climate & hygiene control for Dehumidification for Controllers for opti
Slide 5: Strengthen, develop and expand our core
Strengthen, develop and expand our core – dehumidification & evaporative cooling Components Service & End Market Components Rotors with Digital connectivity desiccant drying Units Systems wheel DCT AirTech Service SyCool Chilled Water LCE & Air handling Split Infrastructure CDU2 units CELdek (Chille
Slide 6: Financial and Sustainability targets
Group Financial and Sustainability targets Mid-term financial targets Growth Profitability OWC/net sales development* Average annual currency adj. growth Average OWC of net sales in the range of >14% over a business cycle Adjusted EBITA margin > 14% 13–10% MSEK MSEK 20% 2 500 15.1% 16% 16 000 45% 14
Slide 7: Advancement towards our strategic sustainability targets
Advancement towards our strategic sustainability targets Targets for 2030 End of December 2024 (2023) Reduce CO2e Scope 1, 2 net zero, Scope 3: reduction aligned with the E Renewable electricity, factories 79%1 (80) Paris agreement 1.5°C. Gender Equity 30% women % of women in workforce 22% 2 (22) S
Slide 8: Agenda
Agenda Introduction Quarterly highlights AirTech Data Center Technologies FoodTech Appendix
Slide 9: Record overall performance achieved for the full year
Group Record overall performance achieved for the full year Q4: Mixed picture for order intake Q4: Positive net sales Q4: Stable profitability MSEK AirTech DCT FoodTech AirTech DCT FoodTech % AirTech DCT FoodTech Group MSEK 7500 5000 25 19.8 4000 20 5000 14.6 3000 15 2000 10 12.6 2500 9.4 1000 5 0 0
Slide 10: FY - Record overall performance
Group FY - Record overall performance Q4 Q4 Change (%) • Net Sales increased; FY 24 FY 23 2024 2023 Organic growth Structural growth* Currency effects • AT - flat, impacted by weak battery sub-segment, good growth MSEK EMEA Order intake 4,348 5,651 -29 6 0 14,259 14,116 • DCT – strong growth, throug
Slide 11: Solid financial platform important growth enabler
Group Solid financial platform important growth enabler Service & Components Group funding Service & Components / NS Net debt / adj. EBITDAx 40% 3,2 Long-term ambition 1.5x-2.5x 11 2,8 2.9 30% 2,4 Ambition: >1/3 of net sales 24% 2.3 2,0 2.2 2.1 20% 1,6 1.8 1,2 10% 0,8 0,4 0% 0,0 2020 2021 2022 2023
Slide 12: Agenda
Agenda Introduction Quarterly 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 12% 24% 9% Order intake, MSEK* Net sales, MSEK* Adjusted EBITA margin* 15% 19% 7,365 8,204 13.6% 11% 10% MSEK MSEK % Battery Food processing 2,260 20 Other Industrial Commercial 2500 Clean Technologies Service 2000
Slide 14: Solid development in several customer segments
AirTech Solid development in several customer segments >5% ~ 1-5 % ± 0 -1% neg Order intake per customer MSEK segment % order intake Market 3 000 Customer segment Q4 2024 Outlook * 2 500 Industrial 46% …whereof battery 12% 2 000 …whereof food processing 9% 1 500 …whereof commercial 10% …whereof othe
Slide 15: Our offering to the market
AirTech Our offering to the market Components Products Systems Services • Product quality and Performance • Product quality and Performance • Product quality and Performance • Product quality and Performance • Rotor and media innovation • Energy efficiency • Energy efficiency • Energy efficiency • S
Slide 16: Overview of Clean Technologies
Overview of Clean Technologies Clean Technologies (CT) Power Process (Hard to abate) Electronics Segments Sustainable Transportation Mist Elimination Technologies VOC* abatement Mass Transfer Example end Waste to Steel & Pulp & Semi- Wind cement Chemical Paint E-fuel Battery customer Energy Paper co
Slide 17: Selection of market players
AirTech Selection of market players Humidity Control Technologies Clean Technologies Air Quality & Dehumidification & Humidification Pollution Control AM/AS/EU EU/AM AM EU/AS EU/AS/AM EU/AS/AM AS EU AM AM AM/AS EU/AS/AM 17
Slide 18: Agenda
Agenda Introduction Quarterly 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 0% 36% Adjusted EBITA margin* 64% Order intake, MSEK* Net sales, MSEK* 4,088 4,392 20.9% Hyperscalers Colo MSEK MSEK % 24 Telco & enterprises 1400 1,315 3000 1200 20 19.8%
Slide 20: Strong order backlog to be delivered throughout 2025 & 2026
Data Center Technologies Strong order backlog to be delivered throughout 2025 & 2026 2022 2023 2024 2025 MUSD 63 US colocator Standard chilled water (CRAHs) MUSD 176 US colocator SyCool Split solutions MUSD 88 US colocator Standard chilled water (CRAHs) MUSD 137 US colocator SyCool Split solutions M
Slide 21: Innovative solutions & our project model are key
Data Center Technologies Innovative solutions & our project model are key Based on a broad set of technology platforms, we tailor to optimize energy efficiency and reduce environmental impact for each unique project. Tailored, adaptable, sustainable. Components Products Complete Systems Services Sol
Slide 22: Total market growth & our addressable market
Data Center Technologies Total market growth & our addressable market Cooling ~10-15% of total DC CAPEX – liquid cooling higher due to complexity 0% MARKET CAGR SPREAD >25% Other Electrical Cooling Infrastructure Liquid Cooling Premium Niche Niche Construction IT Equipment Relative growth outlook Gr
Slide 23: The basic steps of cooling & heat rejection
The basic steps of cooling & heat rejection for the most commonly Data Center Technologies used split systems 1. DISSIPATION 2. CAPTURE 4. RELEASE (INSIDE THE SERVER – NOT DONE BY (INSIDE THE DC) 3. TRANSFER (OUTSIDE THE DC) MUNTERS) Illustrative CPUs and GPUs generate heat when That heat is capture
Slide 24: Selection of market players - Munters well positioned for growth
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 EU/AS/AM EU/AS/AM Several Several medium AM
Slide 25: Agenda
Agenda Introduction Quarterly highlights AirTech Data Center Technologies FoodTech Appendix
Slide 26: A world leader in climate control systems for food production
FoodTech A world leader in climate control systems for food production Customer segments, Order intake 2% 4% 4% 22% Order intake, MSEK* Net sales, MSEK* Adjusted EBITA-margin* 5% 2,874 2,918 15.9% 10% 53% 800 MSEK % 757 20 Broiler Swine 800 700 801 Layer Digital Solutions Greenhouse Dairy 600 % Othe
Slide 27: FoodTech - a focused digital offering
FoodTech FoodTech - a focused digital offering Divestment of the Equipment offering • In line with strategy -> increase long-term value creation focusing Equipment • on digital offering 12% of Munters Group net sales FY 2024 for ~ BSEK 1.1 (Fans/Air Inlets/Cooling/ Celdek production) • Includes prod
Slide 28: FoodTechs digital business - added value
FoodTech FoodTechs digital business - added value IoT & Sensors Controllers Software Sold direct to food producers and Sold direct to C-suite food via partners to farmers producers Traceability & Drive yield and Optimize planning/ transparency sustainability forecasting & supply chain Food producers
Slide 29: FoodTech on a journey of accelerated growth
FoodTech FoodTech on a journey of accelerated growth 2. Replicating into new segments, 1. Developing existing segments geographies and customers 3. Partnerships with technology leaders BEEF AQUA … Tech POULTRY SWINE Tech Company Company S UPPLY C HAIN O PTIMIZATION S OFTWARE POULTRY SWINE NUTRITION
Slide 30: Agenda
Agenda Update Introduction Quarterly highlights AirTech Data Center Technologies FoodTech Customer cases & M&A Appendix
Slide 31: Mission-critical spray drying in food production
AirTech Mission-critical spray drying in food production Italian food producer seeking innovative spray drying solutions to enhance production capabilities Munters offering: PureSystem 4000 dehumidification system: • specifically developed for spray drying applications • energy efficient design, foo
Slide 32: Semiconductor: Removes VOCs created in the etching process
Semiconductor: Removes AirTech VOCs created in the etching process Customer challenge: In 2022, sought to expand to meet increasing demand. Their semiconductor chip production process uses a variety of solvents Our Solution: They approached Munters for a new VOC abatement unit Received Benefits: • G
Slide 33: Order on cooling distribution units (CDUs)
Data Center Technologies Order on cooling distribution units (CDUs) Order of MSEK 375 for Munters LCX system • Water-to water cooling distribution unit (CDU) utilized for liquid cooled servers • Order from a new customer, a leading colocation provider in the U.S. • Deliveries anticipated to start du
Slide 34: Global expansion fueling synergies and growth
FoodTech Global expansion fueling synergies and growth Controllers manage equipment, collect data, and connect to software for analysis, driving sustainability, efficiency, and profitability. • Recent acquisitions of three companies – InoBram, AEI and Hotraco, spread across three continents and thre
Slide 35: Appendix Group
Appendix Group 35
Slide 36: Munters strategic journey – positioning us for the next growth wave
Munters strategic journey – positioning us for the next growth wave Growth Profitability Stability 2019 2020 2021 2022 2023/2024 • New CEO and part of • New strategic priorities • Efficiency improvement • AT & FT delivering on • Delivering on strategy, the management team launched initiatives contin
Slide 37: Investments supporting the next growth wave
Investments supporting CAPEX (quarterly) 600 10% the next growth wave 9.4% 400 MSEK %-net sales 5% 200 Continued investments aiming at strengthening competences, upgrades, 0 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 0% digitalize & automize 2022 CAPEX 2023 CAPEX % of net sales 2024 • DCT: new plant in Cork, Irelan
Slide 38: 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 Acq., Tobo Component, Sweden Net sales: MSEK 76 Acq., Geoclima, Italy Focus on value creating from day 1 Core / Employees: 14 Net sales: MEUR 40 Employees: 165 of integration: consolidat
Slide 39: Appendix AirTech
Appendix AirTech 39
Slide 40: AirTech: Adj. EBITA-margin
AirTech Investments and lower volumes affecting margin Order intake & backlog development Change (%) Q4 Q4 FY FY MSEK 4 000 2024 2023 Org. Struct* FX 24 23 MSEK 2,986 Order intake 1,821 1,922 -10 5 0 7,365 6,796 2 000 1,821 Order backlog 2,986 3,250 2,986 3,250 0 Net sales 2,260 2,136 -1 7 0 8,204 8
Slide 41: Preparing for the next growth wave – investing in our global footprint
AirTech Preparing for the next growth wave – investing in our global footprint Amesbury Tobo & Hodonin • New greenfield factory to consolidate • Factory in Hodonin, Czech Republic to multiple sites into one and to support manufacture large systems battery demand in North America • Opportunity to fur
Slide 42: CleanTech carbon capture projects worldwide
CleanTech carbon capture projects worldwide Norcem Brevik in Norway Ammonia plants in Nigeria World's first large scale CCS Supplied full internal system system in a cement plant in including solvent based CO2 Norway. Uses an amine based capture and ammonia scrubber solvent. CleanTech supplied criti
Slide 43: Appendix DCT
Appendix DCT 43
Slide 44: 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 Order Intake declined; segment Q4 2024 Outlook * • the underlying demand for our cooling solutions Hyperscaler 64% remains strong across key markets -> 60% organic increas
Slide 45: DCT: Continued strong profitability
Data Center Technologies Continued strong Order intake & backlog development profitability 8 000 7,604 Change (%) Q4 Q4 FY FY 6 000 2024 2023 Org. Struct FX 24 23 MSEK MSEK * 4 000 Order intake 1,787 3,184 -48 4 0 4,088 4,948 2 000 1,787 Order backlog 7,607 7,206 7,604 7,206 0 Net sales 1,315 925 33
Slide 46: SyCool Split - how to deal with increased power density
Data Center SyCool Split - how to deal with increased Technologies power density 4 1. Dissipation – taking heat from the chip to the air or the liquid 2. Capture – heat is captured by the 3 CRAH (air) or the CDU (liquid) 3. Transfer – heat energy is transported to the heat rejection 1 equipment 4. R
Slide 47: Our global footprint – investing for growth
Data Center Technologies Our global footprint – investing for growth Roanoke Cork • Our largest manufacturing facility of • All-new site of 11,148m2 to meet the growing 34,000 m2 for the North American demand for data center cooling in Europe market Selma • Shared site between DCT (~80%) and AirTech
Slide 48: Appendix FoodTech
Appendix FoodTech 48
Slide 49: Strong growth from both Digital solutions & Equipment
FoodTech Strong growth from both Digital solutions & Equipment >5% ~ 1-5 % ± 0 -1% neg % order intake Market Customer segment Q4 2024 Outlook * Order Intake increased; Equipment 47% • DS – strong growth driven by software in Americas …whereof Broiler 22% • Equipment – growth, fueled by broiler …wher
Slide 50: Strong margin increase from both DS & Equipment
FoodTech Strong margin increase from both DS & Equipment Change (%) Q4 Q4 FY FY 2024 2023 Org. Struct* FX 24 23 Order intake & backlog development MSEK Order intake 757 555 21 17 -1 2,874 2,433 1000 1,012 Order backlog 1,012 877 1,012 877 750 757 MSEK Net sales 801 617 13 18 -1 2,918 2,363 500 - of
Slide 51: Footprint & global investments for the future
FoodTech Footprint & global investments for the future Digital Solutions – investments for accelerated growth Climate Solutions – innovation and further efficiency improvements • New product development • Scale for growth • R&D and innovation • Continued expansion with both new and existing customer
Slide 52: Contact details Investor Relations
Contact details Investor Relations Line Dovärn Daniel Carleson Head of Investor Relations Investor Relations Specialist E-Mail: line.dovarn@munters.com E-Mail: daniel.carleson@munters.com Phone: +46 73 048 84 44 Phone: +46 70 305 54 52 Please visit Investor Relations website for more presentations &