Slide 1: Q4 and Full-year report 2021
Munters Q4 and Full-year report 2021 Klas Forsström, President and CEO Annette Kumlien, GVP and CFO 1
Slide 2: Agenda
Agenda Highlights Q4 2021 Implementation of strategy Q4 2021 financial highlights Summary Appendix 2
Slide 3: Significant strategic progress in 2021
Significant strategic progress in 2021 Delivery on growth strategy • Record high demand - driven by transition to battery-powered vehicles and increased data traffic • AirTech - growth in prioritized markets – Battery, Data Centers and Services • FoodTech - growth in Americas and EMEA, offset by a w
Slide 4: Record high order intake
Record high order intake Record high order intake Increased net sales and order backlog Adj. EBITA negatively impacted MSEK MSEK MSEK 10 000 10 000 Net Sales 1 000 9,013 Order backlog 16% 8 000 7,197 7,302 7,249 8 000 800 6,698 12.9% 12.2% 12.1% 6 000 6 000 7,153 7,015 7,348 600 11.6% 11.3% 6,604 6,
Slide 5: Order intake Q4 – strong growth in all regions
Order intake Q4 – strong growth in all regions Americas Regional split Americas EMEA APAC • AirTech – Strong growth across all segments, especially Battery and Data Centers. Services showed especially strong growth Share of total order intake 56% 25% 19% • FoodTech – Both Climate and Digital solutio
Slide 6: Supply chain constraints continue to impact our business
Supply chain constraints continue to impact our business Trend commodity price development (YoY) • Global logistics constraints Sourcing • Difficulties anticipating timing of deliveries of input goods and Steel +++ components Pig Iron ++ Coppar ++ Aluminium ++ • Increased raw material prices Polypro
Slide 7: AirTech – strong demand in Battery and Food sub-segment
AirTech – strong demand in Battery and Food sub-segment > 5% ± 0 -1% ~ 1-5% neg Customer segment % order intake Current Market Market comments Customer segment FY 2021 trend * Outlook Comments Industrial 45% Strong growth, especially in the Battery and Food sub-segment …whereof Battery 20% Continued
Slide 8: Munters helps US candy producer reach their sustainability goals
Munters helps US candy producer reach their sustainability goals • US producer of confectionery, pet food, and more for over a century • The customer has net zero emissions commitment of green house gases by 2050 • Munters developed Munters RightDry® technology, a dehumidification technology using n
Slide 9: FoodTech – a market in transformation
FoodTech – a market in transformation > 5% ± 0 -1% ~ 1-5% neg Customer segment % order intake Current Market Market comments Customer segment FY 2021 trend * Outlook Comments Climate solutions 94% Stable/increasing demand in most markets, China development remains weak …whereof Broiler ~46% Stable d
Slide 10: Agenda
Agenda Highlights Q4 2021 Implementation of strategy Q4 2021 financial highlights Summary Appendix 10
Slide 11: Major deliveries on strategic priorities
Major deliveries on strategic priorities Strategic priorities: Focus areas 2021 2022 • Example: Launch of Centre of excellence for Improve go-to-market models and pricing Customers strategies Battery, enabling closer cooperation with • Continued focus on targeted segments customers • Reduced product
Slide 12: MTech Systems secures important SaaS contract
Innovation MTech Systems secures important SaaS contract • MTech Systems, a company within FoodTech, secured an important contract to deliver it’s Software-as-a-Service (SaaS) solution • FoodTech’s strategy is to connect the entire food production value chain with innovative software and precision f
Slide 13: Acquisition of Edpac - strengthened European presence
Markets Acquisition of Edpac - strengthened European presence • An Ireland-based manufacturer of data center cooling equipment and air handling systems • A strategic step in our growth strategy - access to well-established production capacity and a prioritized customer base in the attractive, quickl
Slide 14: Sustainability progress in 2021
Sustainability progress in 2021 Munters purpose: For customer success and a healthier planet Environment Green electricity CDP rating • Target set for net zero 53% C emissions by 2030 from (2020: 50%) (2020: C) operations Social Code of conduct for Proportion of women in suppliers management positio
Slide 15: Agenda
Agenda Highlights Q4 2021 Implementation of strategy Q4 2021 financial highlights Summary Appendix 15
Slide 16: Focus on prioritized areas delivers strong growth…
Focus on prioritized areas delivers strong growth… Mid-term Q4 Q4 FY FY 1 targets 2020 2021 2020 2021 Net sales growth Org. growth p.a. over a 5% 8% 10% 1% 10% business cycle 2 Adjusted EBITA- 14% 13.3% 10.6% 12.9% 12.1% margin 3 Capital structure (LTM*) 1.5x- n.a. n.a. 1.9x 2.2x (Leverage: Net debt
Slide 17: …with record high order intake in the quarter and full-year
1 Net sales growth …with record high order intake in the quarter and full-year Group order intake AirTech order intake FoodTech order intake MSEK MSEK MSEK +24% 10000 10000 10000 +35% 8000 8000 8000 6000 6000 6000 4000 9,013 4000 4000 +62% 7,249 +80% +13% -1% 5,101 6,890 2000 2000 2000 1,611 2,605 2
Slide 18: Solid customer deliveries, despite constraints…
1 Net sales growth Solid customer deliveries, despite constraints… Group net sales AirTech net sales FoodTech net sales MSEK MSEK MSEK +5% 8000 8000 8000 7000 7000 7000 +9% 6000 6000 6000 5000 5000 5000 7,015 7,348 4000 4000 4000 -5% 3000 3000 +18% 4,937 5,362 3000 -4% +12% 2000 2000 2000 1000 1,841
Slide 19: …resulting in an order backlog at highest level ever
1 Net sales growth …resulting in an order backlog at highest level ever Group order backlog AirTech order backlog FoodTech order backlog MSEK MSEK MSEK +86% 4000 4000 +101% 4000 3000 3000 3000 4,198 2000 2000 3,498 2000 +36% 1000 2,253 1000 1,737 1000 516 700 0 0 0 FY 2020 FY 2021 FY 2020 FY 2021 YT
Slide 20: Adj. EBITA weaker due to lower volumes in China
2 Adjusted EBITA-margin Adj. EBITA weaker due to lower volumes in China Group adj. EBITA impact AirTech adj. EBITA FoodTech adj. EBITA Q4 FY MSEK MSEK -32% 2020 adj. EBITA % 13.3% 12.9% 1000 +12% 18% 300 18% 15.9% 14.4% 16% 250 14.6% 16% Volume + + 800 13.7% 14.0% 14% 200 12.3% 14% Business mix -- -
Slide 21: 2021 EBITA-margin impacted by supply chain constraints and lower volumes
2 Adjusted EBITA-margin 2021 EBITA-margin impacted by supply chain constraints and lower volumes Group AirTech Quarterly development Quarterly development 16% 16% 12% 14% 8% EBITA (adj) margin % EBITA (adj.) margin % (LTM) 12% 4% Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 18 18 19 19 19 19 20 20 20 2
Slide 22: Measures for strategy implementation on track
Measures for strategy implementation on track 2020 2021 Status end 2021 Focus 2022 • Measures for strategy implementation, mainly in • Approx. 70% of savings AirTech realized • Strategy implementation AirTech • Total costs and expenses activities to continue, • Delayed implementation due about MSEK
Slide 23: Cash flow strong considering growth and supply chain constraints
3 Capital structure Cash flow strong considering growth and supply chain constraints Cash flow development, LTM* Cash conversion LTM (OCF**/Adj. EBITA) MSEK Cash flow from operating activities 1200 120% Cash flow for the period 1000 100% 800 600 80% 400 60% 200 0 40% -200 20% -400 -600 0% Oct-Sep Ja
Slide 24: Leverage remains in line with mid-term financial target range
3 Capital structure Leverage remains in line with mid-term financial target range Development of leverage Sustainability Linked Loan Net debt / adj. EBITDAx, LTM 4 3,5 3 2,5 2 Mid-term financial target range 1.5x-2.5x 1,5 1 0,5 0 Jul-Jun Oct-Sep Jan-Dec Apr-Mar Jul-Jun Oct-Sep Jan-Dec Apr-Mar Jul-Ju
Slide 25: Agenda
Agenda Highlights Q4 2021 Implementation of strategy Q4 2021 financial highlights Summary Appendix 25
Slide 26: Summary: Record high order intake strengthens way forward
Summary: Record high order intake strengthens way forward Growth strategy on track • Continued focus on growing in prioritized market segments characterized by solid longer-term growth - driven by the strong sustainability and digitalization trends • Investment in selected competences, efficiency im
Slide 27: Munters
® Munters