Munters Group Ab · OMXSTO:MTRS
Munters Group Ab — Q1 2020 Earnings Presentation
23 slides from Munters Group Ab's earnings presentation, Apr 23, 2020
Slide 1: January-March report 2020
MUNTERS January-March report 2020 Klas Forsström, President and CEO Annette Kumlien, GVP and CFO
Slide 2: Agenda
Agenda Highlights Q1 2020 Q1 2020 results Strategy and Sustainability reporting Summary 2
Slide 3: Highlights Q1 2020
Highlights Q1 2020 Munters impacted by Covid-19 outbreak Focus on continuous improvements Management changes Order intake Net sales MSEK -5% MSEK -3% 2500 2000 1,938 1,849 1,620 1,566 2000 1500 1500 1000 1000 500 500 0 0 Q1 2019 Q1 2020 Q1 2019 Q1 2020 • Order intake and net sales impacted by • Orde
Slide 4: Demand impacted by Covid-19
Demand impacted by Covid-19 Americas: Regional split Americas EMEA APAC • AirTech strong development in the subsegment supermarkets in Share of total order intake 44% 35% 21% commercials in the US Y/Y change in %* 6% -17% -4% • Also, strong development of components sales to OEMs and Services for Ai
Slide 5: Data Centers order in Q1
Data Centers order in Q1 • Order for Digital Crossroad Data Center project near Lake Michigan • Order value MSEK 17 from Digital Crossroad, a new co- location data center client for Munters • Solution: ‒ Energy efficient, indirect airside economizer (IASE) plate heat exchanger technology ‒ Water coi
Slide 6: Agenda
Agenda Highlights Q1 2020 Q1 2020 results Strategy and Sustainability reporting Summary 6
Slide 7: Q1 2020 vs. Mid-term targets and PY
Q1 2020 vs. Mid-term targets and PY Mid-term Q1 Q1 1 targets 2020 2019 Net sales growth Annual growth in organic net sales 5% -7% +7% starting in 2019, supplemented with add- on acquisitions. 2 Adjusted EBITA-margin An adjusted EBITA-margin in the medium 14% 8.3% 8.1% term. 3 Capital structure (LTM*
Slide 8: Group: Demand impacted by Covid-19 outbreak
1 Net sales growth Group: Demand impacted by Covid-19 outbreak Order intake Order intake Order backlog MSEK MSEK +10% • Declined -5%, adj. for currency effects -8% 2500 3000 2,808 -5% 1,938 2,554 • AirTech: Decline in order intake driven by weak industrial segment, 2000 1,849 2500 mainly in EMEA and
Slide 9: AirTech: Weak industrial segment in all regions
1 Net sales growth AirTech: Weak industrial segment in all regions Order intake Order intake Order backlog • Declined -7%, adj. for currency effects -11%, on the back of a strong MSEK -7% MSEK +10% 1600 1,449 2500 2,186 first quarter 2019 1400 1,343 1,993 2000 • Decline in order intake driven by wea
Slide 10: FoodTech: Good demand despite Covid-19 outbreak
1 Net sales growth FoodTech: Good demand despite Covid-19 outbreak Order intake Order intake Order backlog MSEK +3% MSEK +11% • Increased by +3%, with a flat organic development 600 500 515 700 622 600 561 • Strong development in Americas, mainly driven by Mexico and 500 500 demand for software solu
Slide 11: Adjusted EBITA Q1 2020
2 Adjusted EBITA-margin Adjusted EBITA Q1 2020 Adj. EBITA Adj. EBITA-margin • Slightly improved adj. EBITA-margin because of: MSEK 180 131 130 % • Effects from cost reduction program in 2019 as well as 160 140 9 8.1% 8.3% continued streamlining of indirect costs 120 8 7 100 6 • Active mitigation of
Slide 12: Cash flow development incl. discontinued operations
3 Capital structure Cash flow development incl. discontinued operations Cash flow development, LTM* MSEK • Continued focus on cash and management of 1000 Cash flow from operating activities working capital 800 Cash flow for the period • Cash flow from operating activities MSEK 33, 600 400 impacted b
Slide 13: Leverage slightly increased in Q1
3 Capital structure Leverage slightly increased in Q1 Development of leverage Leverage development 4,5 Leverage increased, from 2.9x at end of December 2019 to 3.1x at end of March 2020 mainly because of exchange rate 4 effects 3,5 • Net debt increased from MSEK 3,062 at YE 2019 to MSEK 3,338 due to
Slide 14: Agenda
Agenda Highlights Q1 2020 Q1 2020 results Strategy and Sustainability reporting Summary 14
Slide 15: Implementation of refined strategic direction
Implementation of refined strategic direction • Munters is well positioned in a long-term growing market driven by climate change, energy efficiency and digitalization • Despite great attention on managing in the current business environment we are diligently working on implementing our refined stra
Slide 16: Focus in 2020 and beyond
Focus in 2020 and beyond Purpose: For customer success and a healthier planet Focus areas Organizational re-design, leadership and competence People development in line with strategic priorities Customers Improve go-to-market models and pricing strategies Innovation Focus investments in R&D and prod
Slide 17: Launch of new controller, FoodTech
Innovation Launch of new controller, FoodTech • Launch of Trio controller for the swine sub segment ‒ Clear and simple dashboard ‒ Dynamic and user friendly experience ‒ Energy saving eco mode ‒ Automatic air quality control ‒ Durable and reliable • The controller will improve functionality, usabili
Slide 18: Remote assistance in AirTech to ensure safety and efficiency
Markets Remote assistance in AirTech to ensure safety and efficiency Customers • Munters uses IFS Remote Assistance™ in Service operations to ensure safety of field staff while delivering increased efficiency • Merged Reality (MR) solution that enables field technicians, engineers or customers to sh
Slide 19: Increased focus on Sustainability
Increased focus on Sustainability Example of KPIs FY 2019 (2018): • Sustainability is one of the most important drivers for Munters’ strategy today and in the future Green electricity: 40% (31) • Munters sustainability framework is divided into three parts: ‒ Resource efficiency Total Recordable Inc
Slide 20: Successful improvements in Monterrey plant
Excellence in everything we do Successful improvements in Monterrey plant Employee turnover (percentage) • Munters manufacturing plant in Monterrey, Mexico produces 18% 15.5% 16% mainly evaporative cooling pads 14% 12% • Previously struggled with deliveries and quality issues 10% 8% 7.3% • A new man
Slide 21: Agenda
Agenda Highlights Q1 2020 Q1 2020 results Strategy and Sustainability reporting Summary and Q&A 21
Slide 22: Continued challenging business environment
Continued challenging business environment • For the coming quarters we expect a challenging business environment with a larger impact from the Covid-19 outbreak than seen in the first quarter • At this time, the visibility of the effect of the outbreak is limited • Current healthy order backlog but
Slide 23: Questions & Answers
Questions & Answers @® Munters