Munters Group Ab · OMXSTO:MTRS
Munters Group Ab — Q4 2023 Earnings Presentation
29 slides from Munters Group Ab's earnings presentation, 2024
Slide 1: Munters Q4 report 2023
Munters Q4 report 2023 Klas Forsström, President and CEO Katharina Fischer, GVP and CFO Ann-Sofi Jönsson & Line Dovärn, Investor Relations
Slide 2: Strengthened market position and strong results
Strengthened market position and strong results Stable long-term growth trends Strong net sales growth Robust improvement in profitability Order intake Announced orders* Order backlog MSEK Adj. EBITA Adj. EBITA margin MSEK Net sales MSEK 15 000 600 16% 6 000 6 000 5,651 467 14% 11,333 10 000 3,659 4
Slide 3: Americas main driver of growth
Americas main driver of growth Regional share Q4 Order intake Net sales Order intake Net sales Order intake Net sales 18% 7% 17% 25% 74% 59% Americas - order intake EMEA - order intake APAC- order intake (FY – OI:61%, NS: 57%) (FY – OI: 23%, NS: 24%) (FY – OI: 15%, NS: 19%) • AirTech – weaker develo
Slide 4: Solid order backlog – large orders supportive into 2025
Solid order backlog – large orders supportive into 2025 2022 2023 2024 2025 MUSD 115 US colocator SyCool Split solutions 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 manu
Slide 5: AirTech: Stable long-term growth trends
AirTech Stable long-term growth trends Order Intake decreased -31% org.; >5% ~ 1-5 % ± 0 -1% neg • excl. large order of MSEK 560 received in Q4 2022, decrease -8% org. % order intake Market • Battery – weaker in all regions. APAC - cont. consolidation of Customer segment Q4 2023 Outlook * battery ma
Slide 6: AirTech: Changed business mix affecting margin
AirTech Changed business mix affecting margin Net Sales flat org. with growth mainly in Americas; Q4 Q4 Change (%) FY FY 2023 2022 Org. Struct* FX 2023 2023 • Battery – strong growth Americas, weaker APAC & EMEA MSEK • CT– stable APAC & EMEA, weaker Americas Order intake 1,922 2,642 -31 4 0 6,796 8,
Slide 7: AirTech: Stable market activity in several segments
AirTech Stable market activity in several segments MSEK Order intake per segment 3 000 2 500 • Variations in large orders i.e., batteries 2 000 • Other industrial & CT 1 500 steady development 1 000 • Service & components stable and growing 500 • Secure future orders & ramp up production 0 Q1 2022 Q
Slide 8: New innovative dehumidification system in North America
AirTech New innovative dehumidification system in North America Specially developed for low dew point (LPD) applications such as battery producers • Ability to maintain dry rooms at continuous low dew points • 40% smaller footprint vs. industry standard • Available for indoor and outdoor installatio
Slide 9: Data Center Technologies: Significantly increased demand
Data Center Technologies Significantly increased demand >5% ~ 1-5 % ± 0 -1% neg Customer order intake Market Order Intake increased significantly; segment Q4 2023 Outlook * • two large orders of appr. BSEK 2.2 received in the quarter Hyperscaler 22% • several orders received from colocator & hypersc
Slide 10: Good deliveries on large orders
Data Center Technologies Good deliveries on large orders Change (%) Q4 Q4 FY FY 2023 2022 Org. Struct* FX 2023 2022 Net Sales strong increase 81% org; MSEK • Good execution on large projects & increased Order intake 3,184 30 n.m. n.m. n.m. 4,948 6,245 deliveries, proceeding according to plan Order b
Slide 11: First order won to pair heat rejection with liquid cooled servers
Data Center Technologies First order won to pair our heat rejection technology with liquid cooled servers • Joint R&D development with large colocation customer • An air cooled computer room air handler (CRAH) can be exchanged with the LCE (liquid cooling evaporator) and paired with a SyCool condens
Slide 12: Hyperscaler order for MCW received
Data Center Technologies Hyperscaler order for MCW received Munters Modular Chilled Wall (MCW) • DCT secured several orders for multiple American hyperscale deployments of a chilled water fan arrays • This product consists of fans and chilled water coils arranged into modular sections and connected
Slide 13: FoodTech: Recovery in EMEA driving growth
FoodTech Recovery in EMEA driving growth >5% ~ 1-5 % ± 0 -1% neg Order Intake increased +12% org.; % order intake Market • CS – driven by recovery in EMEA. Americas slight Customer segment Q4 2023 Outlook * increase, slight recovery in APAC Climate Solutions (incl. • DS – stable excl. large order re
Slide 14: All regions contribute to significant margin improvement
FoodTech All regions contribute to significant margin improvement Change (%) Q4 Q4 FY FY Net Sales increased +16% org.; MSEK 2023 2022 Org. Struct* FX 2023 2022 • contributions from all regions Order intake 555 483 12 4 -1 2,433 2,242 • CS – Americas strong, improvement in EMEA & Order backlog 877 8
Slide 15: Strengthening the FoodTech portfolio
FoodTech FoodTech Strengthening the FoodTech portfolio HPAI (highly pathogen avian influenza) • Airborne virus which severely impacts the poultry industry, which can be transported > 20 km • A seasonal threat to individual poultry farms years ago, but today widespread in all regions of the world Mun
Slide 16: Successful SaaS growth
FoodTech Successful SaaS growth Our ARR continues to grow significantly with a mix of new customers and conversions to our ARR* (mSEK) new software solution Amino In Q1 2022 Munters (through MTech) +69% announced an important SaaS contract with one of the world’s largest food producers. Value of the
Slide 17: Advancement towards our sustainability goals
Advancement towards our sustainability goals End of December 2023 Goal Renewable electricity, factories 80% (72) Net zero Scope Energy efficiency, factories* 0.52 (0.62) emissions 1&2 by 2030 Recycling rate (LTM) 55% (52) Health & TRIR** (LTM) 1.2 (1.8) Zero Safety accidents 30% % of women in workfo
Slide 18: Financial highlights
Financial highlights &
Slide 19: Closing the year with strong results
Group Closing the year with strong results • Net Sales increased; Q4 Q4 Change (%) FY FY Very strong growth in DCT 2023 2022 Organic growth Structural growth* Currency effects 2023 2022 MSEK Order intake 5,651 3,143 82 4 -7 14,116 16,830 • Adj. EBITA margin improved; Order backlog 11,333 11,463 11
Slide 20: Strong margin improvement in FoodTech & DCT
Adjusted EBITA-margin Strong margin improvement in FoodTech & DCT Group adj. EBITA margin impact Main factors affecting adj. EBITA margin in Q4: Q4 2022 10.1 • Strong volume increase driven mainly by DCT adj. EBITA % Volume ++ • Net pricing increases contributed to margin improvement Net pricing ++
Slide 21: Cash flow from operating activities improved in the quarter
Cash flow Cash flow from operating activities improved in the quarter Group Cash Flow YTD, MSEK billion Cash flow from changes in WC Q4 2023 Q4 2022 Change in accounts receivable 149 -484 Change in inventory 188 -252 Change in accrued income 11 -3 444 405 Change in accounts payable 111 364 281 Chang
Slide 22: Investments for growth
PPE & Intangibles Investments for growth 800 6% 5% 600 %-net sales 4% Investments in PPE and Intangibles to MSEK 400 3% support growth 2% • 2023: 200 1% • Smaller investments aiming at upgrade, 0 0% digitalize and automize Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 • 2024, main investments: 2021 2022 2023 PPE, R12M
Slide 23: Integration critical to create value
Integration critical to create value Integration - critical aspect of mergers, with three focus areas: • Value creation - delivering on acquisition business case • People and culture - creating a common culture and sense of belonging • Operational processes - establishing common processes and tools
Slide 24: Decreased leverage ratio
Leverage & net debt Decreased leverage ratio Development of leverage & net debt 2 000 3,0 • Leverage ratio decreased mainly 1 000 2,5 driven by increased adj. EBITA. 0 2.1 • Net debt increase due to: 2,0 -1 000 acquisitions financed partly by debt during the last 4 quarters -2 000 1,5 increased
Slide 25: Summary
Summary &
Slide 26: Progression towards our financial targets
Financial targets Progression towards our financial targets Net sales growth* Adj. EBITA margin OWC/net sales** 40% 15% 15% 14,2% Financial target >14% 12,8% Financial target range 13-10% 30% 10% 10% 20% 16% 5% 5% 10% Financial target 10% 0% 0% 0% Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q
Slide 27: Achievements in 2023 positions us for continued successful journey
Achievements in 2023 positions us for continued successful journey In recent years - Continue to invest for Invested and achieved Identified the right future growth profitable growth growth areas opportunities 27
Slide 28: Questions & Answers
Questions & Answers Q4 report 2023
Slide 29: Forward-looking statements
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