Slide 1: Q2 report 2023
= Q2 report 2023 Klas Forsstrém, President and CEO Ann-Sofi Jonsson-& Line Dovarn, Investor Relations
Slide 2: Strong results and progress on the strategic journey
Strong results and progress on the strategic journey Solid progress in order intake Strong net sales growth Continued margin improvement sms Order intake — Announced orders" —#= Order backlog MSEK 14000 11,153 6000 12000 7515 10000 4000 Sy 8000 6000 2000 3. i | 427 4.000 2000 0 0 Q2 Q3 Q4 Ql Bo 38 Q
Slide 3: Americas strong growth in the quarter
Americas strong growth in the quarter Regional share Order intake Net sales >) Americas - order intake * AirTech — good growth in Components & the sub-segment battery * DCT - good underlying market activity from the colocation market * FoodTech — good growth within DS! and dairy, broiler & layer wit
Slide 4: Stable demand and continued strong backlog
Stable demand and continued strong backlog P5% Oh ~15% mM s0-7% BW neg > Order Intake stable development; * Battery - good growth Americas, APAC & EMEA weaker % order intake Market * Food - good APAC & EMEA development, offset by US Customer segment Q2 2023 _Outlook * * Clean Technologies - declined
Slide 5: Strong net sales and margins
Strong net sales and margins Change (%) Q2 2022 + Net Sales strong growth all regions; * Battery - main growth driver in all regions * Food - flat development, Americas growth Order intake 4726 | 1,727 * Clean Technologies - all regions weaker, decision to Order backlog 4,124 | 3,204 leave the marin
Slide 6: AirTech strengthened with two new acquisitions
AirTech strengthened with two new acquisitions Swedish manufacturer of components, working with Munters since 2005 Deal closed in May 2023 Net sales 2022 ~MSEK 76, ~ 14 FTE Expand the humidification business & gives us full process control giving additional growth opportunities Service business with
Slide 7: Good underlying demand & strong order backlog
Good underlying demand & strong order backlog PS% OH -15% mM 20-71% BW neg > Order Intake increased 14%; rder intake Market * strong long-term outlook driven by digitization & SECMNEY SERINE Q22023 Outlook energy-efficient cooling solutions 9, + MUSD 88 (MSEK 955) order from US colocation InP LENS O
Slide 8: Data Center Technologies
Data Center Technologies Strong sales & margin growth > Net Sales +190%, strong increase; a2 » high activity in large projects & increased deliveries sex | 7°28 * enabled by production ramp-up in the US Order intake 1,067 | 939 10 - 4 * large orders deliveries proceeding according to plan Order back
Slide 9: Major order from colocation data center received
Data Center Technologies Major order from colocation data center received From an existing customer, US-based colocation data center company for chilled water air handlers (CRAH) Order of ~ MUSD 88 (~ MSEK 955) Deployed at >10 customers data center facilities, US Deliveries during Q4 2024 - Q4 2022
Slide 10: FoodTech
FoodTech Increasing demand, mainly in Americas PK 15% mM s0-7% BW neg > Order Intake increased +17% % order intake Market + mainly driven by CS & DS in the US Customer segment Q2 2023 Outlook * * CS- mixed development, most positive outlooks 5 in Broiler & Greenhouse 93% =» * DS- strong trend all re
Slide 11: FoodTech
FoodTech Q2 Q2 c 2023 2022 Positive margin contribution + Net Sales -3% declined; * CS- cont. weak Chinese swine market & overall weak market demand in EMEA Order intake 646 554 al 7 5 * CS- Americas growth primarily in broiler Orderbacklog 992 942 * DS~- SaaS ARR grew +48% Net sales 583 | 599 8 5 -
Slide 12: Strengthening FoodTech portfolio
FoodTech Strengthening FoodTech portfolio Gana ® momorom a Munters company Brazilian manufacturer of controllers for broiler & swine “ 5 June 2023, 60 % acquired, net sales 2022 ~MBRL 53, ~ 150 FTE Supports FT’s strategy to grow digital solutions for the food & agricultural industry and strengthens
Slide 13: Munters focus areas
Munters focus areas ILLUSTRATIVE Direction of positioning - 2023 and beyond Profitability Digital Solutions Climate — } —1/- Growth 13 *Software as a Service Growth Profitability Stability Focus areas 2023 and beyond AirTech * Continued progression on profitable growth & capturing orders * Service &
Slide 14: Aghort industry, US) (C
• • • Rotem Aghort (C industry, US)
Slide 15: Our purpose - For customer success and a healthier planet
Our purpose - For customer success and a healthier planet s Renewable Energy Recycling Net zero cope electricity, efficiency, rate issi 1 Ae factories factories* (LTM) Gunlissieins by 2030 81% (66) 0.50 (0.72) 52% (54) TRIR*™* (LTM) 9 Proportion of Proportion of 30% women in women in mgmt women work
Slide 16: Financial highlights
Financial highlights Kg
Slide 17: Strong net sales growth
Strong net sales growth, Net Sales strong increase; = Strong development DCT & battery in AT g eae = Services 11.5% of total net sales Order intake 3,427 3,200 1 1 5 + Adj. EBITA margin improved in all erceubackics) TES) HS business areas Net sales 3,536 2,610 27 1 7 Cash fl tl { l Operating profit
Slide 18: Adjusted EBITA-margin
Adjusted EBITA-margin Significant margin improvement in all business areas Main factors affecting adj. EBITA margin in Q2: Q22022 12023 * Strong volume increase driven by DCT & battery Adj. EBITA % 10.4 12.3 ; in AT Volume ++ * on 9 P * Net price increases in all business areas Net pricing ++ + - *
Slide 19: Cash flow
Cash flow Large projects driving build-up in working capital Group Cash Flow YTD, MSEK billion > Higher level of cash-flow from operating activities before changes in working 400 - 331 capital 300 * mainly driven by improved EBIT 200 100 90 > Build-up of working capital 0 = * mainly large projects i
Slide 20: Summary
Summary
Slide 21: Financial targets
Financial targets Progression towards our financial targets Net sales growth” Adj. EBITA margin OWC/net sales’ ” 40% 15% 15% 13.2% Financial target>14% - 30% er ~ 10% 10% 20% seven se 5% 5% 10% Financial target»10% 0% 0% 0% a2 Qs @4 ai a2 @3 @4 ai a2 a2 @ @4 al a2 @ @ al @2 a2 Q3 a4 ai a2 Q3 a4 ai Q
Slide 22: A quarter with strong results and progress on the strategic journey
A quarter with strong results and progress on the strategic journey Operational excellence initiatives delivering results Strong improvement of profitability Journey continues with acquisitions & strategic review 22 &
Slide 23: Questions & Answers