Annual and Sustainability Report 2025 (munters annual and sustainability report 20252)

Annual & Sustainability Report 2025

For customer success and a healthier planet

01

Introduction

Contents

reports

Other

• Business conduct 125

• ESRS-index 130

Contents

corporate governance statement

Five-year summary 170

Definitions 171

During 2025, the divestment of the FoodTech Equipment offering was completed. Unless otherwise stated, comments and figures in this report refer to continuing operations.

The audited annual report for Munters Group AB (publ), corporate registration number 556819-2321, refers to pages 62-66 and 133-164.

The statutory sustainability report and the sustainability statement are presented on pages 67-132.

This report is also Munters Communication on Progress (CoP) report in accordance with the UN Global Compact

Munters Remuneration Report is available online at https://www.munters.com.

Every care has been taken in the translation of this annual and sustainability report. In the event of discrepancies, the Swedish original will supersede the English translation.

The addition of the total amounts reported can lead to rounding differences

Munters | Annual and Sustainability Report 2025 Contents

01

Introduction

Our purpose - for customer success and a healthier planet -guides us in developing innovations that increase customer value and reduce environmental impact

Introduction

This is Munters

How Munters creates value Our value-chain

Year in brief

CEO & Chairman in conversation Targets for long-term growth Munters as an investment

Strategy Operations

Corporate Governance

Board of Directors' report incl. Sustainability Financial reports

Other information

Munters | Annual and Sustainability Report 2025 Introduktion 1

Contents

01 Introduction

01

Introduction

A global leader in technologies that optimize climate -

improving customers' productivity, quality and resource efficiency

Introduction

This is Munters

How Munters creates value Our value-chain

We offer solutions that control humidity, air- and liquid-based cooling systems, as well as intelligent controllers and software - products

that provide precise control over mission-critical processes and help our

customers do more with less.

Regions, percent of net sales 2025

%

0 20 40 60 80 100

Year in brief

CEO & Chairman in conversation Targets for long-term growth Munters as an investment

Strategy Operations

Corporate Governance

Board of Directors' report incl. Sustainability Financial reports

Other information

Americas, 60%

EMEA, 26%

APAC, 14%

14,712

net sales 2025, MSEK

>25

production sites

Contents

Headquarter Production sites

>50%

Munters vitality index*

Share of sales generated from products or solutions launched in the last five year's

~5,000

employees

01

Introduction

Introduction

This is Munters

How Munters creates value Our value-chain

Year in brief

CEO & Chairman in conversation Targets for long-term growth Munters as an investment

How Munters creates value in society

Munters collaborates with customers across a broad range of segments, from digital infrastructure and industrial manufacturing to the global food system. Through its solutions, Munters contributes to reliable operations, high resource efficiency and long-term value creation, thereby enabling businesses, people and societies to develop sustainably.

Strategy Operations

Corporate Governance

Board of Directors' report incl. Sustainability Financial reports

Other information

Innovative and energy-efficient cooling solutions for data centers

Stable and ultra-dry air for battery production

Climate and hygiene control for the food industry

Dehumidification for wind turbines and infrastructure

Controllers and sensors for optimizing livestock, cultivation, and crop storage

Leading supplier of rotors and other components

Solutions in Clean Technologies for cleaner air

Service offering for a wide range of customers

Humidity control for

the pharmaceutical industry

Leaders in data-driven optimization of the global food supply chain

Contents

AirTech Data Center Technologies FoodTech

01

Introduction

Introduction

This is Munters

How Munters creates value

Our value-chain

Year in brief

CEO & Chairman in conversation Targets for long-term growth Munters as an investment

Strategy Operations

Corporate Governance

Board of Directors' report incl. Sustainability Financial reports

Other information

Our value-chain

Munters offers smart, energy-efficient climate solutions and a digital, connected offering. We have integrated sustainability into every aspect of our business strategy and illustrate our impact across the value chain from both an internal and external perspective.

Innovation, R&D

Contents

Through innovation and continuous product development, we address market demand for increasingly resource-efficient products with lower environmental impact.

Sales & Application Engineering

Our products and expertise enable us to offer customized solutions that reduce costs and environmental impact.

Sourcing

We use materials and suppliers that meet our standards, promoting respect for human rights and reduced environmental impact.

Production

Health and safety are our highest priority. We reduce emissions and improve efficiency. We also strive to increase diversity and inclusion.

Distribution

We reduce transportation and environmental impact through optimization and regionaliza-tion, strengthening the supply chain and increasing resilience within each region.

Use & service

Our services optimize performance and extend product lifetime, ensuring resource efficiency throughout the entire life cycle.

End-of-Life

Our products and services extend product lifetime.

We strengthen our focus on circularity and work to enable responsible recycling.

Read more about how we work with our value chain on pages 75-81.

01

Introduction

Introduction

This is Munters

How Munters creates value Our value-chain

Year in brief

CEO & Chairman in conversation Targets for long-term growth

The year in brief

In 2025, we strengthened our market position through record-high order intake and a significantly increased order backlog. Strong demand, particularly within Data Center Technologies and FoodTech, resulted in a book-to-bill ratio of 1.6x and laid the foundation for continued net sales growth. Cash flow from operating activities was strong, supported by efficient capital and working capital management. At the same time, measures were implemented to enhance flexibility and cost efficiency, contributing to financial stability despite temporary external headwinds.

Munters as an investment

Strategy Operations

Corporate Governance

Board of Directors' report incl. Sustainability Financial reports

Other information

Order intake

Organic order intake increased by +83%, while structural growth contributed +13%. Data Center Technologies (DCT) reported strong growth, and FoodTech also reported growth, while AirTech's performance in line with the previous year for AirTech.

Net sales

Net sales increased by +8%, of which organic growth amounted to +6%. Growth was driven by FoodTech and DCT, while AirTech declined. Service and Components accounted for 25% of total net sales.

Adjusted EBITA

The adjusted EBITA margin, 12.7%, decreased compared with the previous year, primarily impacted by lower volumes, costs related to dual US production facilities and underutiliza-tion within AirTech, as well as temporary tariff effects within DCT. Within DCT, product mix

had a slightly negative impact, which was more than offset by high volumes, strong capacity utilization, price increases and continued efficiency improvements. In FoodTech, the margin remained at a strong level despite continued investments to support future growth.

Contents

10,000

2021* 2022 2023 2024 2025 2021* 2022 2023 2024 2025 2021* 2022 2023 2024 2025

0

0

0

0

500

3,000

5,000

5

1,000

6,000

Order intake

MSEK

25,000

1,500

9,000

15,000

10

2,000

12,000

20,000

%

15

Adjusted EBITA/ EBITA margin

MSEK 2,500

Net sales

MSEK

15,000

* Figures refer to total operations. No restatement has been made with regard to discontinued operations.

01

Introduction

Introduction

This is Munters

How Munters creates value Our value-chain

Year in brief

CEO & Chairman in conversation Targets for long-term growth Munters as an investment

Strategy Operations

Corporate Governance

Board of Directors' report incl. Sustainability

CEO & Chairman conversation

Events during the year Record year for Data Center Technologies (DCT)

In 2025, Munters business area DCT delivered a record year, driven by strong demand and focused work in close partnership with customers. Through co-development of solutions and an expanded offering, DCT has evolved from a niche player into a globally competitive provider. The success is also built on increased scalability in delivery capabilities. With a focus on quality, standardized ways of working and efficiency, DCT has strengthened its capacity to deliver higher volumes with greater flexibility. In parallel, innovation efforts have advanced energy-efficient products and solutions tailored to different types of data centers.

FoodTech in focus through portfolio optimization and a strengthened digital position

The divestment of FoodTech's Equipment product offering represents an important step in FoodTech's strategic focus on its core business in control systems, sensors and software. The transaction releases resources for targeted investments in innovation and high-margin segments with a strong sustainability profile. At the same time, it contributes to a more focused and efficient portfolio and improves the conditions for a structured integration and increased value creation from completed acquisitions, which altogether supports continued growth.

2025 was marked by macroeconomic turbulence, heightened geopolitical tensions and rapid technological advancement, particularly in AI, while significant investments created new growth opportunities in several of Munters' end markets. In this environment, Munters strengthened its adaptability through targeted capacity investments, strong customer focus and continued innovation. Looking ahead to 2026, President and CEO Klas Forsström and Chairman Magnus Nicolin emphasize adaptability, operational discipline and ongoing business development as key drivers of long-term value creation.

Financial reports Other information

Contents

How would you describe the current external business climate?

Magnus: We are entering 2026 in a turbulent and, in some respects, dramatic business climate, with uncertainty around economic development, trade policy and geopolitics affecting investment decisions. At the same time, such conditions can create opportunities for agile companies with strong flexibility and a clear strategic direction.

In the US, we see substantial investments by industrial and technology players, driving market growth and demand. With our established and expanding position in DCT - combining application expertise, a leading portfolio and scalable capacity - we have a strong platform for continued profitable growth.

Structural market trends and our well-adapt-ed offering position Munters to capture these opportunities.

Klas: To complement that perspective, I would say that perhaps the most important success factor in today's business climate is the ability to adapt. Companies that stay close to their

customers and respond quickly to changing conditions are the ones that will succeed.

With this as our starting point, we have for some time pursued a structured effort to build an organization with high adaptability, clear determination and strong execution. In 2025, this has delivered tangible results, with strong growth in both DCT and FoodTech, confirming that our strategic direction and operational discipline work in practice.

While the global macroeconomic environment remains uncertain, it also creates significant business opportunities. Our employees have been central to this progress, and their engagement and expertise enable us to both manage challenges and deliver on our longterm growth ambitions.

How does Munters ensure development and value creation in an uncertain environment? Magnus: The macroeconomic landscape has become increasingly complex. Following the US presidential election, the pace of change

in the global economy accelerated, further confirming our expectation that this period

would be turbulent. As these trends continue to evolve, we see a clear impact on industry at large.

The positive aspect is that we have been strategically well prepared. During the year, we continued to strengthen the business, invest in new technology and ensure that we remain at the forefront of meeting market needs. In parallel, we intensified our work to implement AI, both internally to streamline processes and strengthen decision-making, and externally by integrating new digital solutions into our offering. This development enhances our competitiveness and enables us to translate innovation into tangible customer value and improved business performance more quickly.

Klas: Despite the uncertainty, we have continued to develop our business. During the year, we broadened our product portfolio, further developed our service offering and continued to drive innovation. A clear example of this is our Vitality Index. One year ago, it was around 40 percent. For 2025, it exceeds 50 percent,

01

Introduction

Introduction

This is Munters

How Munters creates value Our value-chain

Year in brief

CEO & Chairman in conversation Targets for long-term growth Munters as an investment

Strategy Operations

Corporate Governance

Board of Directors' report incl. Sustainability Financial reports

Other information

meaning that more than half of our revenue comes from products and solutions developed in the past five years. This is strong evidence of our long-term and consistent focus on innovation, research and development, as well as our ability to convert these investments into concrete and commercially successful solutions.

My view of what drives industrial success is fundamentally pragmatic. It is about sustained and continuous innovation, close and solution-

oriented collaboration with our customers, and an efficient and scalable industrial footprint. The investments we have made in our global production and delivery structure

provide robustness, flexibility and high delivery precision. At the same time, it is the speed

of innovation - our ability to rapidly develop, industrialize and commercialize new solutions - that increasingly differentiates Munters and strengthens our competitiveness.

What have been the most important growth areas and strategic expansion steps during the year? Capacity expansion in Virginia

In 2025, Munters took the next step in expanding the facility in Virginia, US, to meet growing demand in the data center segment. The expansion includes a significant increase in production space and investments in modern testing and manufacturing capacity, further strengthening Munters industrial presence in the US. The expansion aims to increase overall capacity, enable regionalized production of chillers to enhance delivery flexibility, and establish a test laboratory to strengthen validation, quality assurance and faster development of new and customized solutions. Production of chillers is planned to scale up during the second quarter of 2026.

State-of-the-art factory inaugurated in Amesbury

In 2025, Munters inaugurated a new state-

of-the-art production facility in Amesbury, Massachusetts. The facility strengthens AirTech operations in North America and increases production capacity to meet demand for advanced climate solutions across all subsegments. The factory is energy-efficient and built in line with high sustainability standards, enabling net-zero emissions, while creating enhanced opportunities for innovation, customization and technology development.

Klas: With the support of the Board, we have in recent years carried out significant capacity and upgrade investments across our global footprint. During the year, we inaugurated the new AirTech facility in Amesbury, and the new DCT facility in Virginia continues to deliver strongly to the data center market. In 2026, we

look forward to additional capacity upgrades in Virginia to produce chillers for the US market. In addition to factory investments, we continuously invest in building strong Business areas, with reinforced service, R&D and sales functions. Altogether, this means we are entering 2026 well prepared for continued growth.

Our portfolio optimization work is a very important part of our strategy. It includes both the ongoing development of the product portfolio and larger strategic decisions over time. Our increased focus on data centers was one such decision. Another is our transformation within FoodTech toward digital and software-based solutions. During the year, we also implemented structural measures within AirTech, reducing costs and strengthening the

cost base in order to create a more competitive and robust Business area going forward. We will continue to make these types of decisions - prioritizing growth areas while ensuring an efficient and scalable cost structure.

How well did developments in 2025 meet your expectations?

Klas: I am very pleased with how our focused

"It is the speed of innovation - our ability to

Contents

rapidly develop and commercialize new solutions - that increasingly differentiates Munters and strengthens our competitiveness."

Klas Forsström

investments within DCT, combined with a gradually expanded offering, aligned well with the strong and structural growth in the global data center market. This positioning enabled us to effectively meet customers' increasing demands for energy-efficient and reliable solutions, resulting in a record year.

01

Introduction

"The combination of structural market trends, our market presence and a well-adapted offering means that Munters is well positioned to capitalize on this development."

Green bonds under the MTN program

During the year, Munters issued its first green bonds under the newly established MTN program and the company's Green Finance Framework.

The MTN program contributes to increased diversification of funding sources, while the framework ensures that capital is allocated to projects that support reduced climate impact and energy efficiency in line with ICMA's* Green Bond Principles. The issuance strengthens the company's financial flexibility and sustainability profile.

*International Capital Market Association

Climate targets validated by SBTi

In 2025, Munters climate targets were validated by the Science Based Targets initiative (SBTi).

The targets are aligned with the 1.5°C pathway and represent a clear commitment to reducing emissions both in our own operations and across the entire value chain. The validation confirms that Munters strategy and offering of energy- and resource-efficient technologies contribute in a measurable way to the global transition toward net-zero emissions.

Magnus Nicolin

Introduction

This is Munters

How Munters creates value Our value-chain

Year in brief

CEO & Chairman in conversation Targets for long-term growth Munters as an investment

Strategy Operations

Corporate Governance

Board of Directors' report incl. Sustainability Financial reports

Other information

Contents

Klas: We have, in practice, carried out a comprehensive transformation of FoodTech, with a clear focus on a more competitive and differentiated offering. Particularly positive is that FoodTech is now positioned within a niche but strategically very important market with strong underlying growth drivers, not least related to sustainable food production, energy efficiency and increasing quality requirements. Feedback from our customers confirms that this is an area with clear long-term growth potential, where Munters has good opportunities to gradually strengthen its market position and create value going forward.

Ahead of 2025, we expected a more cau-

tious development within the battery market in AirTech. In addition, industrial development in the US at the beginning of 2025 was more subdued than normal following a presidential election. This contributed to our decision to adjust the cost base within AirTech to ensure stability, maintained competitiveness and continued development. The transformation has been implemented according to plan, and we are satisfied with the measures taken,

providing us with a stronger and more resilient platform to build on as the market recovers.

Which sustainability-related strategic initiatives are you most proud of?

Klas: With the Board's support, we have fully integrated sustainability into our business strategy, covering both our own operations and the solutions we offer. The Amesbury facil-

ity exemplifies our net zero ambition and how we translate targets into concrete investments. Our climate targets are validated by the Science Based Targets initiative and aligned with the Paris Agreement, providing a clear framework to systematically reduce emissions across the value chain through energy efficiency, electrification and renewable energy.

We have also established a green bond framework and issued bonds with strong market demand, strengthening financial flexibility while linking financing to climate-related investments. Sustainability further encompasses our employees, with a clear priority on occupational health and safety, supported by structured processes, continuous follow-up and strong local leadership to ensure a safe working environment.

Magnus: Our sustainability work creates tangible customer value. Through energy-efficient solutions, we help customers reduce their electricity consumption. In practice, we contribute to addressing their Scope 3 challenges. When business strategy and sustainability strategy align in this way, it creates a clear win-win situation.

At the same time, we continuously strengthen our sustainability efforts from a governance and reporting perspective. During the year, we continued our work to ensure full compliance with CSRD and further developed our processes to meet increased requirements for transparency, data quality and follow-up. In

parallel, we are preparing for upcoming regulations, including CSDDD, by further developing our work on due diligence, risk management and responsible supply chains.

Finally - what message would you like to send to shareholders and employees?

Magnus: 2025 has been a challenging but also highly developmental year for Munters. During the year, we took necessary measures to adapt and strengthen AirTech for the future, while continuing to invest purposefully in growth areas. These priorities reflect our long-term strategy of combining financial discipline with a clear focus on structural growth markets. The development we have achieved would simply not have been possible without the commitment, expertise and perseverance of our employees.

Klas: Munters should be an outstanding company to work for, to partner with and ultimately to own. This means creating value for our customers, offering an attractive and safe workplace for our employees and delivering long-term value creation to our shareholders. Last year, we described Munters as a good company. Today, we can confidently say that Munters is a very strong company, with a clear strategy and a solid platform for continued development. The best days for Munters still lie ahead.

01

Introduction

Introduction

This is Munters

How Munters creates value Our value-chain

Year in brief

Targets for long-term growth

A responsible business with stable finances and efficient resource utilization is the foundation for successfully executing Munters strategy. Through clear targets, we steer the organization and make priorities that support our 2023 to 2030 ambition: to double in size while halving our carbon footprint.

CEO & Chairman in conversation

Targets for long-term growth

Munters as an investment

Strategy Operations

Corporate Governance

Board of Directors' report incl. Sustainability Financial reports

Other information

Financial targets

Sustainability targets

Dividend payout ratio

53%

Dividend 2025

The Board of Directors proposes a dividend for 2025 of SEK 1.60 per share, representing 53% of net income from continuing operations in 2025.

Inclusion & diversity 30% women in workforce by 2030

Outcome 2025

23% (22)

30% women in leadership positions* by 2030

Outcome 2025

21% (21)

* salary-setting

CO₂ emissions* Scope 1 & 2: 42.0% absolute reduction from 2023 to 2030.

Outcome 2025

+3% (3)

* Compared to base year set at 2023.

Scope 3: 51.6% reduction in emissions from the use of our products per unit of sold products, from 2023 to 2030.

Outcome 2025

+19% (37)

Code of Conduct 100% of employees must complete Code of Conduct training every two years

Outcome 2025

90% (83)

100% of key suppliers must sign the Supplier Code of Conduct

Outcome 2025

92% (99)

Dividend policy

Contents

The ambition is to distribute an annual dividend of 30-50% of net income after tax. The decision on dividends takes into account the company's financial position, investment needs, acquisitions and liquidity. There can be no guarantee that a dividend will be proposed or paid in any given year. For historical information, see page 173.

01

Introduction

Introduction

This is Munters

How Munters creates value Our value-chain

Year in brief

CEO & Chairman in conversation Targets for long-term growth

Munters as an investment

Strategy Operations

Corporate Governance

Board of Directors' report incl. Sustainability Financial reports

Other information

Munters as an investment

We are a global company with strong market positions in our niches, customer-driven innovation and a clear sustainability agenda. We operate in industries with strong demand and are well positioned for continued expansion. With a proven strategy and a commitment to value-creating growth, we unlock opportunities that deliver long-term value.

#2

A global leader in energy-efficient climate solutions

We are a global leader within our specific niches, supported by a strong local presence.

Pioneering and innovative technology Dividend

SEK

2.0

1.5

1.0

0.5

0.0

2021 2022 2023 2024 2025*

* The Board of Directors proposes a dividend for 2025 of SEK 1.60 per share, representing 53% of net income from continuing operations in 2025.

#1

We remain at the forefront with solutions that help customers control, digitalize and improve the efficiency of their operations.

#3

#4

Sustainable solutions for the industry of the future

Contents

We support our customers by offering products and solutions that help reduce the use of energy, water and other resources.

Well-proven and diversified portfolio

Our solutions give customers greater control over critical processes, from food production and supply to industrial manufacturing and data centers.

02

Strategy

Introduction Strategy

Megatrends

Focus areas for sustainability Our sustainability framework Strategy for long-term growth

• Market

• Customers

• Innovation

• Excellence

• People

  Operations

  Corporate Governance

  Board of Directors' report incl. Sustainability Financial reports

  Other information

  Munters creates long-term value through customer-driven innovation and a clear focus on markets supported by strong structural growth drivers

  Munters | Annual and Sustainability Report 2025 Strategier 11

  Contents

  02 Strategy

  
  
  

  02

  Strategy

  Introduction Strategy

  Megatrends

  Focus areas for sustainability Our sustainability framework Strategy for long-term growth

• Market

• Customers

• Innovation

• Excellence

• People

  Operations

  Corporate Governance

  Board of Directors' report incl. Sustainability Financial reports

  Other information

  Megatrends

  
  
  Global market transformation

  Geopolitical volatility, climate-related risks and shifting global value chains reinforce the importance of resilience and adaptability across industry and society.

  Demographic changes

  Demographic changes are increasing demand for food, infrastructure and healthcare, driving the need for controlled and efficient production environments.

  Accelerating digitalization and the use of AI

  Accelerating digitalization and the implementation of AI are transforming operations and business models, making data-driven, connected and secure solutions essential for competitiveness.

  Megatrends: Our strategic priorities address key megatrends that shape market development, drive demand for our solutions and create new challenges and growth opportunities. Climate change and resource scarcity

  Increased awareness of climate change and resource scarcity is

  raising demands for energy efficiency and circularity, while also creating opportunities for innovation and sustainable growth.

  Munters positioning: Munters is positioned to address these trends with relevant offerings that drive profitable growth and support a more resilient and sustainable world.

  Contents

  Enabling the transition to a clean and resource-efficient industry

  Support customers in improving their energy efficiency and reducing their environmental impact, while leveraging the opportunities of electrification.

  • Deliver energy- and resource-efficient solutions through advanced technology and deep application expertise.

  • Invest in AI and software to increase efficiency and transparency in resource use and emissions.

  • Strengthen clean technology offerings, including solutions for the reduction of volatile organic compounds (VOC) and carbon capture.

  • Maintain leading expertise in dehumidification systems for battery manufacturing, positioned for a recovery in demand.

02

Strategy

Introduction Strategy

Megatrends

Focus areas for sustainability Our sustainability framework Strategy for long-term growth

• Market

• Customers

• Innovation

• Excellence

• People

  Operations

  Corporate Governance

  Board of Directors' report incl. Sustainability Financial reports

  Other information

  Contents

  Focus areas for sustainability

  Sustainability is at the core of everything we do and an integrated part of our strategy and governance. Acting ethically and taking social and environmental responsibility throughout our value chain is essential. We work purposefully to develop and offer the most energy-efficient solutions on the market, while setting ambitious targets to reduce emissions, promote diversity and uphold ethical business practices. Our purpose, For Customer Success and a Healthier Planet, guides both our long-term direction and our daily work.

  We embed sustainability into our business strategy through structured follow-up of defined key focus areas

  • Climate actions & circularity

  • Sustainability across the value-chain

  • People & Society

  • Engagement & Knowledge

  • Transparency & Compliance

These areas provide a structured framework for activating our sustainability agenda. They are shaped by our shared business ambitions,

our core values and the insights derived from our double materiality assessment. By actively and systematically monitoring how we advance sustainability within these prioritized areas, we create direction, clarity and momentum. This enables us to set ambitious targets, mobilize the right resources and translate strategy into tangible actions and measurable results - across each Business Area and at Group level.

Through this approach, we build not only structure, but also momentum to create and drive business value through our sustainability focus.

02

Strategy

Introduction Strategy

Megatrends

Focus areas for sustainability

Our sustainability framework

Strategy for long-term growth

• Market

• Customers

• Innovation

• Excellence

• People

  Operations

  Corporate Governance

  Board of Directors' report incl. Sustainability Financial reports

  Other information

  Our sustainability framework

  Environment and resource efficiency People and society

  We develop and deliver sustainable products, solutions and services that help our customers improve their resource and energy efficiency. We reduce emissions from our own operations and strive to lower our climate footprint across the entire value chain by integrating circular principles and optimizing efficiency.

  Overall sustainability ambitions

  We are working to increase diversity and inclusion at all levels and have set a target of 30% women representation among employees and managers with salary-setting responsibility by 2030. We have an ambition to eliminate all workplace accidents, and in the communities where we operate around the world, we aim to contribute to a better society.

  Read more about our targets on pages 118 and 124.

Read more from page 96

The health and well-being of our employees are fundamental prerequisites. We strive for high employee engagement and innovation through fairness, diversity, and an inclusive culture. We contribute to improving our local communities through

close collaboration with stakeholders in the locations where we operate.

Read more from page 113

Contents

Key events and progress during the year

Carbon reduction

• SBTi validation of our carbon reduction targets for 2030 in line with the 1.5°C scenario of the Paris Agreement

• Aligned our transition plans for Scope 1, 2 and 3 emissions with the updated target. Read more on pages 101 and 103.

• Inaugurated the new large-scale factory in Amesbury, US, designed for net-zero emissions

• Intensified the dialogue with customers regarding the use of renewable energy to operate our products

• Implemented geothermal heating at our factory in Tobo, Sweden to eliminate fossil fuel

Circularity

• Established new and updated existing governing documents related to circularity

• Participated in the circularity project with Combient Pure and conducted a pilot project in APAC with a rental business model for standalone dehumidifiers

• Set a target to halve the amount of landfill waste from production between 2024 and 2030

• Initiated a collaboration with NOAH for

the reuse of salt waste from the production unit in Tobo, Sweden, reducing the site's landfill waste by approximately 75%

Key events and progress during the year

• Established new and updated existing governing documents related to human rights

• Continued the development of the Munters in Society framework, which guides and governs how we engage with and drive initiatives to improve the local communities where we operate

• Introduced new sustainability KPIs in the long-term incentive program (LTIP), in line with Munters overall sustainability ambitions. Read more on page 72

• Participated in Climate Week, events hosted by the International Energy Agency (IEA), and COP 30

• Drove key issues within the industry organization Eurovent and the Energy Efficiency Movement

• Delivered lectures at universities, participated in career days, and engaged in direct collaboration with students and other companies through various projects focused on climate and circularity

• Continued the rollout of the Munters Job Framework in 2025, a framework that enables role-level benchmarking linked to equal pay for equal work and clarifies career paths

• Reduced TRIR (Total Recordable Incident Rate) across our production sites, achieving a level below the industry average

02

Strategy

Introduction Strategy

Megatrends

Focus areas for sustainability

Our sustainability framework

Strategy for long-term growth

• Market

• Customers

• Innovation

• Excellence

• People

  Operations

  Corporate Governance

  Board of Directors' report incl. Sustainability Financial reports

  Other information

  Governance and ethical business practices

  Responsible business conduct is one of our core values and essential to earning the trust of our investors, customers, suppliers and employees. We uphold high ethical standards and expect

  the same from our business partners. Through our Code of Conduct and policies, we create clarity. We strive to ensure transparency through clear targets and the reporting of results and progress.

  Read more from page 125

  Overall sustainability ambitions

  We ensure that 100% of our employees and business partners comply with our Code of Conduct through clear requirements, training and follow-up across the value chain. We are progressing towards triple ISO certification of our production sites to establish a common standard for quality, environment and occupational health and safety.

  We continue to strengthen our governance model and internal control to enhance transparency, ensure compliance and build stakeholder trust.

  Read more about our targets on page 129.

91% (81)

% renewable electricity in our production sites

0 (0)

environmental fines (SEK)

52% (64)

% renewable electricity in

non-production sites

28% (50)

% waste to landfill

54% (31)

Triple ISO certification of sites existing in 2020

49% (43)

% renewable energy

0 (0)

number of workplace fatalities

58% (43)

% waste reused or recycled

0.8

(1.2)

25%

(27)

Workplace accidents, measured as TRIR, at production sites

Service and components as a share of total net sales

Contents

02

Strategy

Introduction Strategy

Megatrends

Focus areas for sustainability Our sustainability framework

Strategy for long-term growth

• Market

• Customers

• Innovation

• Excellence

• People

  Operations

  Corporate Governance

  Board of Directors' report incl. Sustainability Financial reports

  Contents

  Other information

  Strategy for long-term and sustainable growth

  People

  n

  r

  
  
  

  We create sustainable value growth through a strategy built on close customer relationships and a clear understanding of their needs and drivers. These insights guide our innovation process, enabling us to launch relevant products in the right markets and segments. To optimize our processes, we work systematically with continuous improvements, with employee development at the core of value creation.

  
  
  Customers
  
  

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  We work closely with our customers to ensure optimal climate and resource utilization in their mission-critical applications.

  
  
  

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  Our expertise is built on unique insight into our customers' operations and a clear understanding of their current and future needs. We strive to be a committed and proactive partner in climate solutions.

  
  
  

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  Market
  
  

  We focus on strengthening our position in prioritized areas where we can be a market leader and further develop our service offering. Through high-quality, resource-efficient solutions, we contribute to more sustainable development.

  Innovation

  Curiosity and the ambition to create pioneering technologies are part of our DNA. To remain

  at the forefront, we continuously evaluate and enhance our offering.

  Employees

  Our employees are central to our success.

  Their health and safety are therefore our highest priority, while leadership development remains a key focus area. We continuously strive to be the most attractive employer.

  Excellence in everything we do

  We follow up, learn, adapt and improve to increase efficiency and quality in everything we do. We work purposefully to reduce our climate impact across the entire value chain.

  02

  Strategy

  Introduction Strategy

  Megatrends

  Focus areas for sustainability Our sustainability framework Strategy for long-term growth

  
  
  

• Market

• Customers

• Innovation

• Excellence

• People

  Operations

  Corporate Governance

  Board of Directors' report incl. Sustainability Financial reports

  Other information

  Strategy

  
  
  

  Market

  Munters is a global leader in industrial technologies that optimize climate control and contribute to productivity, quality and resource efficiency. Significant global trends, such as climate change and digitalization, create favorable growth conditions in our prioritized markets and customer segments.

  Market

  Strategy

  We aim to be a market leader in prioritized markets and prioritized segments

  For us, being a market leader means being one of the top three suppliers in the market.

  Prioritized growth areas

  • Data center cooling

  • The global food supply chain

  • Industrial dehumidification

  • Service and components

  • Clean Technologies

    How we work

  • We continuously develop and refine our offering with the ambition to remain at the forefront of technological and market development

  • Our products and solutions are designed to meet specific demand in local markets

  • Acquisitions and strategic partnerships are an integral part of our long-term growth strategy

  • We focus on increasing the share of

    data-driven products and digital solutions

    Sustainability focus

    Munters offers energy-efficient climate control systems that reduce customers' use of electricity and water. We optimize design and operating conditions for each specific market and application. Through our global service network, we maintain our products and solutions to ensure optimal performance and lifetime.

    We operate a business that is profitable over the long term and creates jobs in multiple locations around the world. It is essential that we provide an inclusive workplace with appropriate working conditions for everyone in the markets where we operate.

    UN global goals

    Contents

    Market

    02

    Strategy

    Introduction Strategy

    Megatrends

    Focus areas for sustainability Our sustainability framework Strategy for long-term growth

    
    
    

• Market

• Customers

• Innovation

• Excellence

• People

Operations

Corporate Governance

Board of Directors' report incl. Sustainability Financial reports

Other information

Driving growth through close market alignment

Leading market position through innovation and customer collaboration

With long industrial experience and a strong culture of innovation, we have established a central position within our prioritized areas. Through advanced technology, deep application expertise and close customer collaboration, we develop solutions tailored to specific needs.

Contents

We face competition from local and regional niche players as well as global competitors. The competitive landscape varies across industries and applications. Our advanced systems, extensive experience and ability to deliver integrated solutions create high barriers to entry and strengthen our long-term competitiveness.

Full ownership and synergies drive development

Highlights in 2025

• We have strengthened our position in selected areas through our long experience, innovation capability and strong market presence.

• Our system solutions, deep application expertise and close customer collaborations continue to create high barriers to entry in our key markets.

• Organic growth combined with the successful integration of completed acquisitions has further strengthened our market position.

• Investments in innovative companies contribute to accelerating our innovation capabilities and open up new business opportunities.

• By broadening our markets, segments and regions - supported by strategic acquisitions and the ability to deliver customized solutions - we have continued to develop our global presence and customer base.

Through a combination of organic growth and several strategic acquisitions in recent years, we have expanded our operations and strengthened our market position.

Four strategic focus areas in acquisitions

• Core business/consolidation - larger acquisitions to increase market presence and/or broaden the product offering.

• Technology/digital - companies with technology that strengthens our offering.

• Service/"string of pearls" - local companies that enhance market presence.

• New growth areas.

During the year, Munters acquired the remaining shares in MTech and Inobram, enabling a clearer strategic direction and strengthened development of digital solutions to increase productivity and sustainability. We also continued the integration of the 2024 acquisitions - Airprotech, Geoclima, Hotraco and AEI - where synergies, more efficient processes and joint product development were prioritized during the year. This has broadened our offering and strengthened the foundation for continued profitable growth.

Continued collaboration and expanded minority investments

During the year, we strengthened our focus on innovation by increasing our investment in Capsol, a company with leading technology

for carbon capture. Together with our acquisitions and partnerships, we continue to drive development in digitalization, technology and sustainability. Our partnerships help identify new business opportunities and strengthen our long-term innovation capabilities.

Previously established partnerships have progressed according to plan, with different areas of attention during the year, thereby complementing the Group's strategic development.

Divestment creates focus on digital growth The divestment of FoodTech's Equipment product offering marks a strategic shift toward a more focused and digital offering. FoodTech now concentrates on controllers and software solutions that enhance efficiency, sustainability and digitalization in global food systems.