Q2 2024
A strong second quarter with an
all-time high profitability
April-June– Order intake increased +3% (-2% organic) with good growth in FoodTech offset by AirTech and Data Center
Technologies (DCT). In AirTech order intake was flat, mainly due to the weaker battery sub-segment in
APAC. Order intake in DCT was flat, with a good level of smaller and mid-sized orders. Order intake in
FoodTech increased, primarily driven by good growth in Americas and EMEA. Digital solutions within
FoodTech continued to show strong growth.
– Net sales increased +7% (+2% organic). In AirTech net sales declined, primarily due to the weaker battery subsegment in APAC. In DCT successful execution on deliveries of large orders announced last year continued tocontribute to strong growth. FoodTech grew strongly, with contributions mainly from the EMEA andAmericas regions.
– The adj. EBITA margin improved driven by strong net sales growth in DCT and FoodTech, a positive effectfrom product mix in AirTech as deliveries on major orders were finalized, combined with positive effects fromlean practices and other efficiency improvements initiatives.
– Earnings per share, before and after dilution, was SEK 1.81 (1.40) in the second quarter.
– Cash flow from operating activities improved mainly because of an increase of operating earnings and apositive development of working capital. The positive impact on working capital in the quarter was primarily
driven by customer advances related to DCT in Americas. OWC/net sales amounted to 12.5%, within ourtarget range of 13-10%.
– Leverage decreased for the fourth consecutive quarter, from 2.0x at the end of March to 1.8x mainly because
of increased operating earnings and lower net debt.

Events after the close of the period– The strategic review initiated last year, of the Equipment business within FoodTech, has now been
completed. The conclusion of this review is our intention to divest this business.

Currency adjusted
growth+7%
Adj. EBITA margin

17.8%
Operating working
capital/net sales

12.5%– In July, Munters announced the acquisition of the majority share in Automated Environments (AEI), a USbased company specializing in automated control systems for the layer industry.
– In July, Munters announced an agreement has been signed to acquire Geoclima, an Italian manufacturer of
air- and water-cooled chillers. Geoclima’s product offering completes Munters DCT cooling portfolio
enhancing the company’s ability to offer full solutions to the total data center cooling market.

Q2

Financial summary

Jan-Jun

MSEK
Order intake
Net sales
Growthof which organic growthof which acquisitions and divestmentsof which currency effects
Operating profit (EBIT)

2024
3,536
3,791
7%
2%
4%
0%
578

2023
3,427
3,536
35%
27%
1%
7%
408

Operating margin, %

15.3

11.5

Adjusted EBITA

673

479

Adjusted EBITA margin, %

17.8

13.5

Net income
Earnings per share before dilution, SEK
Earnings per share after dilution, SEK
Cash flow from operating activities
OWC/Net Sales
Net debt
Net debt/Adjusted EBITDA, LTM

342
1.81
1.81
662
12.5%
4,447
1.8

257
1.40
1.40
10
13.2%
4,833
2.7

Interim report January-June 2024

∆%
3
7

42
41
33

2024
6,904
7,329
9%
5%
5%
-1%
990

2023
5,972
6,711
42%
32%
2%
8%
756

13.5

11.3

1,171

868

16.0

12.9

569
3.00
3.00
1,215
12.5%
4,447
1.8

470
2.58
2.58
-158
13.2%
4,833
2.7

LTM

Full-year

31

Jul-Jun
15,048
14,548
18%
1,820

2023
14,116
13,930
34%
27%
3%
5%
1,586

12.5

11.4

35

2,142

1,839

14.7

13.2

21

890
4.72
4.72
2,439
12.5%
4,447
1.8

792
4.30
4.30
1,066
14.2%
4,620
2.1

∆%
16
9

1

CEO comments
A strong second quarter with an all-time high profitability
Munters reports a strong second quarter performance with robust order intake and net sales. The adjusted
EBITA-margin was at an all-time high in the second quarter, reflecting all the work done in recent years to
improve efficiency. We are well positioned for future growth..
Strong underlying market trends, continued good growth
In AirTech, climate change as well as the industry's need for precise humidity control and advancements inenergy-efficient desiccant models continue to fuel growth in the market long-term. Some market segments
have seen a slower development in the short-term, which in this quarter was particularly noted by delayedinvestments in battery production across all regions. Order intake in AirTech developed flat in the quarter. As
digitalization continues and AI becomes more widely used across various sectors, demand for effective andadaptable cooling solutions remains high. This presents strong mid-to-long-term growth opportunities for
DCT as we offer a range of cooling technologies that enable customers to address heat generation challenges.
In the quarter order intake for DCT was flat, and as previously communicated, this market is uneven, meaningthat order intake can fluctuate significantly between quarters. In FoodTech, order intake increased as demandfor both indoor climate solutions and digital solutions was strong. We continue to see an increasing demandfor controllers, automation tools and optimization software platforms as food producers increasingly use realtime data to make accurate changes for improved animal welfare, maximize production and reduce waste andCO2 emissions.
Net sales increased, driven by a very strong growth in DCT and FoodTech. AirTech had a weaker development.
Munters has an ambition to increase service* and components revenues in the long term to reach more than
one third of net sales, and in the quarter this amounted to 25% of net sales.
A quarter with an all-time high profitability, improved cash-flow and strengthened financial position
All business areas improved their profitability in the second quarter. In AirTech this was driven by a favorable
product mix, good level of deliveries on earlier announced orders combined with a high capacity utilization.
DCT continued to improve its margin mainly driven by effects from diligent lean practices and good level ofdeliveries on orders previously announced. Both Digital and Climate solutions in FoodTech increased
profitability levels because of higher volumes and significant efficiency gains. At the same time, Munters
continued to invest in digitalizing, ways-of-working, our manufacturing footprint and innovation across all
business areas.
Operating cash flow increased in the quarter because of increased earnings and a very good improvement in
operating working capital (OWC), resulting in OWC/net sales of 12.5% within our target range of 13-10%. This
led to a lower leverage for the fourth consecutive quarter.

Klas Forsström
President and CEO“Munters reports a strong

quarter with an all-time highprofitability. We are well
positioned for future growth.“

Progress on strategic ambitions and conclusion reached in strategic review of FoodTech equipment
In May, we updated our mid-term growth target to include growth generated by M&A. In the second quarter,
AirTech closed the acquisition of Airprotech. It broadens our offering in Clean Technologies and emission
abatement to better help customers reduce their carbon footprint. After the close of the quarter, weannounced the acquisition of a majority share in Automated Environments (AEI), which accelerates our digitaljourney in FoodTech as we now add a control system for the layer industry to our offering. We also announced
the acquisition of Geoclima, an Italian manufacturer of air- and water-cooled chillers. It completes DCTs
cooling portfolio by enhancing our ability to offer full solutions to the total data center cooling market.
Last year, we initiated a strategic review of the Equipment business within FoodTech, which has now been
completed. The conclusion of this review is our intention to divest this business.
I am very pleased that we took a step to align Munters with the Paris agreement in the second quarter bycommitting to the Science Based Targets initiative (SBTi). By setting ambitious climate goals, we not only
strengthen our own commitment but also hope to inspire the rest of the industry to move towards a moresustainable future.
I want to express my sincere gratitude to all our dedicated employees for their hard work.
*Service is defined as after-market service and SaaS revenues.

Midterm financial targets

Sustainability targets for 2030

Net sales growth:

Annual currency adjusted
net sales growth above 14%.
Performance Q2 2024: 7% (28)

Environment

Target: Reduce CO2e emissions
Scope 1&2, Net zero; Scope 3, reduction in linewith the Paris agreement 1.5 °C:

Adjusted EBITA
margin:An adjusted EBITA margin above 14%.
Performance Q2 2024: 17.8% (13.5)

SocialTarget: Gender equity
Women in Workforce to reach 30%; and Women
leaders to reach 30%:

OWC/net sales:

Average (LTM) operating working capital in therange of 13-10 % of net sales.
Performance Q2 2024: 12.5% (13.2)

GovernanceTarget: Code of Conduct compliance
Employee CoC, to reach 100%; Supplier CoC, toreach 100%; Customer CoC, continuous
increase.

Dividend policy:

Aim to pay an annual dividend corresponding to
30-50% of net income for the year

Service &Components
ambition:

Revenues in the long term of> 1/3 of net sales
Performance Q2 2024: 25%

Dividend 2024: 30% (SEK 1.30 per share, totaling
MSEK 237) paid in two instalments.

See Munters Annual and Sustainability report (ASR) 2023, pages 61-94, for further information on goals and outcome or at www.munters.com.
For full description of the dividend policy, see the ASR 2023, page 10 or at www.munters.com.

Interim report January-June 2024

2

Financial performance
Q2
MSEK
Order intake
AirTechDCT
FoodTech
Corporate & elim.
Net sales
AirTechDCT
FoodTech
Corporate & elim.
Adjusted EBITA
AirTechDCT
FoodTech
Corporate & elim.
Adjusted EBITA margin, %AirTechDCT
FoodTech

2024
3,536
1,760
1,060
741
-26
3,791
1,938
1,109
763
-19
673
341
243
135
-45
17.8
17.6
21.9
17.7

Quarterly order intake(MSEK)

Jan-Jun
2023
3,427
1,726
1,067
646
-11
3,536
2,088
878
583
-13
479
346
133
58
-57
13.5
16.6
15.2
9.9

∆%
3
2
-1
15
7
-7
26
31
41
-1
82
135
-

2024
6,904
4,016
1,403
1,528
-42
7,329
3,933
2,065
1,359
-29
1,171
637
424
205
-95
16.0
16.2
20.5
15.1

2023
5,972
3,412
1,360
1,227
-26
6,711
4,111
1,530
1,095
-26
868
668
215
82
-97
12.9
16.3
14.1
7.5

LTM Full-year
∆%
16
18
3
25
9
-4
35
24
35
-5
97
150
-

Jul-Jun
15,048
7,400
4,991
2,734
-77
14,548
8,048
3,943
2,627
-70
2,142
1,247
728
345
-178
14.7
15.5
18.5
13.1

2023
14,116
6,796
4,948
2,433
-61
13,930
8,226
3,408
2,363
-67
1,839
1,278
519
222
-181
13.2
15.5
15.2
9.4

Order intake
April-June 2024

8,000

20,0006,000

15,0004,000

10,000

2,000

5,000

0

0
Q2
22

Q4

Q2
23
Quarter

Q4

Q2
24
LTM

Order intake per Business Area
Q2, 2024

0%
AirTech 49%

50%
DCT 30%100%
FoodTech 21%

Order intake per region
Q2, 2024

Order intake amounted to MSEK 3,536 (3.427), (organic development of -2%, structural +5%, currency effects0%), with good growth in FoodTech offset by AirTech and DCT.
In AirTech order intake developed flat, mainly due to the weaker battery sub-segment in APAC. The EMEA
region showed growth whereas Americas had a flat development. Order intake in DCT was flat, with a good levelof smaller and mid-sized orders. Order intake in FoodTech increased, primarily driven by good growth inAmericas and EMEA. Digital solutions within FoodTech continued to show strong growth.

January-June 2024
Order intake during the first half of the year amounted to MSEK 6,904 (5,972), (organic development of +11%,
structural +5%, currency effects -1%), with strong growth in all business areas, especially AirTech and FoodTech.

0%
Americas 60%

50%
EMEA 26%

100%
APAC 14%

Quarterly net sales,(MSEK)
4,000

16,000The order backlog at the end of the period amounted to MSEK 11,834 compared to MSEK 11,153 in the second
quarter 2023, corresponding to a 6% increase.

3,000

12,000

2,000

8,000

For more information on the order intake, see the business area comments on pages 6, 7 and 8.

1,000

4,000

Net sales
April-June 2024
Net sales grew to MSEK 3,791 (3,536) (organic growth +2%, structural +4%, currency effects 0%). In DCT
successful execution on deliveries of large orders announced last year continued to contribute to strong growth.
FoodTech grew strongly, with contributions mainly from the EMEA and Americas regions. In AirTech net sales
declined, primarily due to the weaker battery sub-segment in APAC. The Americas region showed growth,whereas EMEA developed flat.

00
Q2 Q3Q4 Q1 Q2 Q3Q4 Q1 Q2
22
23
24
QuarterLTM

Net sales per Business Area
Q2, 2024

Munters has an ambition to reach a service and components level of more than one third of net sales in thelong-term. Service is defined as after-market service plus Software-as-a-Service (Saas) revenues. Service andcomponents amounted to 25% of net sales. Service accounted for 17% of total net sales.

January-June 2024
Net sales grew to MSEK 7,329 (6,711) (organic growth +5%, structural +5%, currency effects -1%).
For more information on the net sales, see the business area comments on pages 6, 7 and 8.

0%
AirTech 51%

100%
FoodTech 20%

Net sales per region Q2, 2024

0%Americas 62%

Interim report January-June 2024

50%
DCT 29%50%
EMEA 26%

100%
APAC 12%3

Results
Adjusted EBITDA and EBITA excludes Items Affecting Comparability, IAC, see page 18 for disclosure of the IACs.

April-June 2024
The gross margin amounted to 37.2% (31.7).
Adjusted EBITDA amounted to MSEK 771 (561), corresponding to an adjusted EBITDA margin of 20.3% (15.9).
Depreciation of tangible assets amounted to MSEK -98 (-82), whereof depreciation of leased assets was MSEK
-49 (-48).
Adjusted EBITA amounted to MSEK 673 (479), corresponding to an adjusted EBITA margin of 17.8% (13.5). The
margin improved due to strong net sales growth in DCT and FoodTech, a positive effect from product mix in
AirTech as deliveries on major orders were finalized. All business areas had positive effects from lean practices
and other efficiency improvements initiatives.
Operating profit (EBIT) was MSEK 578 (408), corresponding to an operating margin of 15.3% (11.5). Amortizationof intangible assets were MSEK -54 (-37), where MSEK -14 (-13) related to amortization of intangible assets fromacquisitions.

Quarterly gross margin, %
40%
35%
30%
25%
20%
Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2
22
23
24

Quarterly adjusted EBITDA
margin, %
30%
20%
10%
0%
Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2
23
22
24

For more information on the results, see the business area comments on pages 6, 7 and 8.

January-June 2024
The gross margin amounted to 35.5% (31.1).
Adjusted EBITDA amounted to MSEK 1,353 (1,023), corresponding to an adjusted EBITDA-margin of 18.5% (15.2).
Depreciation of tangible assets amounted to MSEK -182 (-155), whereof depreciation of leased assets was MSEK
-93 (-88).
Adjusted EBITA amounted to MSEK 1,171 (868), corresponding to an adjusted EBITA margin of 16.0% (12.9). The
margin improved due to strong net sales growth in DCT and FoodTech and a positive effect from product mix in
AirTech as deliveries on major orders were finalized. Also, all business areas had positive effects from lean
practices and other efficiency improvements initiatives.

Quarterly adjusted EBITA
margin, %
20%
15%
10%
5%
0%
Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2
22
23
24

Operating profit (EBIT) was MSEK 990 (756), corresponding to an operating margin of 13.5% (11.3). Amortizationof intangible assets were MSEK -95 (-72), where MSEK -27 (-25) related to amortization of intangible assets
from acquisitions

Quarterly EBIT margin, %Items affecting comparability (IAC)

10%

Items affecting comparability totaled MSEK -41 (-34) in the second quarter, including costs for restructuring
activities of MSEK -13 (-8) and costs for M&A activities of MSEK -7 (-6). Other IACs totaled MSEK -20 (-20) andrelate mainly to costs for the strategic review of the equipment offering in FoodTech.

20%
15%
5%
0%
Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2
22
23
24

For the 6 months period, IACs totaled MSEK -85 (-40) including restructuring activities of MSEK -24 (-12) andcosts for M&A activities of MSEK -16 (-7). Other IACs, mainly related to the strategic review, amounted to
MSEK -45 (-20).
Tax rate per quarter, %Financial items
Financial income and expenses for the second quarter amounted to MSEK -91 (-66). Compared to the same
period last year interest expenses have increased mainly due to increased outstanding debt. Interest expense on
lease liabilities amounts to MSEK -10 (-11) in the second quarter.

90%
75%
60%
45%
30%
15%
0%
Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2
22
23
24

Financial income and expenses for the first six months amounted to MSEK -178 (-139).

Taxes
Income taxes for the second quarter were MSEK -146 (-85) with an effective tax rate of 30% (25). Income taxes
for the first six months were MSEK -244 (-147) with an effective tax rate of 30% (24).
The tax rate for the second quarter and the first six months are negatively impacted by tax losses not recognizedin Sweden and Germany.

Quarterly EPS, SEK
2.0
1.5
1.0
0.5
0.0

Earnings per share

Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2
24
22
23

Net income attributable to Parent Company’s shareholders amounted to MSEK 330 (256) in the second quarter.
Earnings per share, before and after dilution, was SEK 1.81 (1.40) in the second quarter and SEK 3.00 (2.58) for
the 6 months period.
The average number of outstanding ordinary shares in the second quarter, for the purpose of calculating
earnings per share, was 182,538,820 before dilution and after dilution.

Interim report January-June 2024

4

Financial position
Net debt as of June 30 amounted to MSEK 4,447 compared to MSEK 4,557 at the end of March 2024 and MSEK
4,833 at the end of June 2023. Net debt in relation to adjusted EBITDA was 1.8x compared to 2.0x at end of
March 2024 and 2.7x at the end of June 2023.

Net debt per quarter

Interest-bearing liabilities, including lease liabilities, increased by MSEK 617 compared to same period last year
and amounted to MSEK 5,936 (5,319). The increase is driven mainly from acquisitions financed through debt
executed during the recent year.

6,000

4.0

5,000

The Group’s interest-bearing liabilities have an average maturity of 2.4 years. The financing agreement of MEUR
100 Revolving Credit Facility designated for M&A purposes has been renegotiated with an extended maturity to
Q4 2025.

4,000

During the last 12 months Munters has closed acquisitions of the Indian air handling equipment company ZECO
and Airprotech, an Italian manufacturer of Volatile Organic Compounds (VOC) abatement systems. In addition,
Munters participated in capital increases in three minority investments and made two new minority investments.

1,000

3.0

3,000

2.0

2,000

0

Cash and cash equivalents amounted to MSEK 1,775 (710) as of June 30 which is an increase of MSEK 1,065.

1.0
Q2 Q3Q4 Q1 Q2 Q3Q4 Q1 Q2
22
23
24
Quarter
Leverage

Average capital employed for the last twelve months was MSEK 11,819 (10,145). Return on capital employed(ROCE) for the last twelve months increased to 15.8% (12.7) mainly due to an increase in operating earnings.
ROCE, %Cash flow
Cash flow from operating activities amounted to MSEK 662 (10) in the second quarter and MSEK 1 215 (-158) for
the first six months of 2024. The positive cash flow is related to an increase of operating earnings and a positive
development of working capital compared to last year.

20%
15%
10%

Cash flow from changes in working capital had a positive impact of MSEK 172 (-321) in the second quarter and
MSEK 388 (-834) for the first six months of 2024. The positive development in working capital in the first six
months is mainly driven by DCT in the US through increased customer advances and decreased accrued income.

5%0%
Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2
23
24
22

Total cash flow for the second quarter amounted to MSEK 205 (90) and MSEK 225 (-205) for the first six monthsof 2024. The total cash flow for the first six months was impacted mainly by investments in tangible andintangible assets of MSEK -353 acquisitions and investments in associated companies of MSEK -247 andpayment of the first of two installments of dividend in 2024 to external shareholders in March of MSEK -119.
Driven by the strong cash flow in the first six months, external debt has decreased by MSEK -226.

Parent company
The parent company for the Group is Munters Group AB. The parent company does not engage in sales of goods
and services to external customers. Cash and cash equivalents at the end of the period amounted to MSEK 0 (0).

Interim report January-June 2024

5

AirTech

Quarterly net sales - AirTech,(MSEK)

Business area AirTech is a global leader in energy-efficient air treatment for industrial and commercial
applications. We offer solutions for mission-critical processes that require exact control of moisture andtemperature, with a focus on energy-efficiency and sustainable climate systems. Our climate systems also
provide better indoor air quality and comfort, as well as increased production capacity.
Q2
MSEK
External order backlog
Order intake
GrowthNet sales
Growthof which organic growthof which acq. and div.
of which currency effects
Operating profit (EBIT)

Jan-JunFull-year

Jul-Jun
3,850
7,400
-13%
8,048
3%
1,142

2023
3,250
6,796
-19%
8,226
20%
13%
3%
4%
1,190

15.7

14.9

15.5

14.2

14.5

-11
-8
346

-22
-28
637

-21
-12
668

-41
-64
1,247

-39
-49
1,278

16.2

16.3

15.5

15.5

Operating margin, %16.2

Amortization of intang. asset
Items affecting comparability
Adjusted EBITA

-11
-16
341

Adjusted EBITA margin, %

17.6

16.6

∆%
-7
2
-7

-4

∆%
-7
18

LTM

2023
4,124
3,412
3%
4,111
31%
22%
2%
7%
636

2023
4,124
1,726
-0%
2,088
21%
13%
2%
6%
327

-4

-8

10,000
8,000

1,600

2024
3,850
4,016
18%
3,933
-4%
-10%
7%
-1%
587

2024
3,850
1,760
2%
1,938
-7%
-13%
6%
0%
313

2,400
2,000

6,000

1,200
4,000

800

2,000

400
0

0
Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2
22
23
24
Quarter
LTM

Quarterly adjusted EBITA
margin % - AirTech
20%

20%

15%

15%

10%

10%

April-June 2024

5%5%

Order intake

0%

-1

-5

Order intake was flat (-5% organically), mainly due to the weaker battery sub-segment in APAC. The EMEA
region showed growth whereas Americas had a flat development.
• The Industrial segment (excl. battery) showed good development in EMEA and Americas, slightly offset
by APAC. Within the battery sub-segment, Americas and the APAC region showed weak development.
We continue to see delays in greenfield investments as well as customers placing orders closer todelivery. At the same time the competitive environment is increasing as several new players haveentered the market in recent years.
• The Commercial segment in Americas showed strong development, slightly offset by APAC.
• Clean Technologies (CT) increased mainly because of the acquisition of Airprotech in EMEA whichclosed during the quarter.
• Components showed strong growth in Americas as well as good growth in EMEA. Development in
APAC was weaker, impacted by lower component replacements in the Chinese battery market.
• Service decreased primarily due to lower demand in Americas.

Net sales
Net sales decreased -13% organically, primarily due to the weaker battery sub-segment in APAC. The
Americas region showed growth, whereas EMEA developed flat. Service accounted for 21% of AirTechs net
sales.
• The Industrial segment (excl. battery) declined due to weaker development in Americas whereas thefood sub-segment in EMEA and APAC showed growth. The battery sub-segment showed growth inAmericas as deliveries on a major order were finalized, offset by weak development in EMEA and APAC.
• The Commercial segment showed good development in all regions.
• CT grew driven by the recent acquisition of Airprotech in EMEA, offset by weaker development in theother regions.
• The Components segment grew in Americas and EMEA, whereas APAC was weaker. The growth was
mainly driven by increased sales of evaporative pads to the data center market.
• The Service segment grew, driven by the EMEA region whereas the other regions were flat.

0%
Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2
22
23
24
LTM
Quarter

Order intake per region
Q2, 2024 - AirTech0%
Americas 42%

50%
EMEA 33%

100%
APAC 24%

Net sales per region
Q2, 2024 - AirTech0%
Americas 49%

50%
EMEA 31%100%
APAC 20%

Adjusted EBITA
The adjusted EBITA margin increased, mainly driven by efficiency improvements and a positive effect fromproduct mix in Americas as deliveries on major orders were finalized.
• Efficiency improvements continued to have a positive impact on the margin, slightly offset by a lower
production utilization rate in EMEA and APAC.
• Investments in operational efficiency and innovation increased in the quarter and are foreseen tocontinue to increase driven by for example capabilities to reach our net-zero target.

January-June 2024
• Order intake increased 12% organically, with growth in all segments except for CT. Especially, thebattery sub-segment in EMEA has shown good growth.
• Net sales decreased -10% organically, mainly due to the weaker battery sub-segment in APAC and
EMEA. In Americas the battery sub-segment has shown growth as well as Components and Service in
EMEA & Americas.
• The adjusted EBITA margin remained flat. Positively impacted by finalization of deliveries on major
orders, offset by lower volumes.

Interim report January-June 2024

6

Data Center Technologies
Business area Data Center Technologies (DCT) is a leading supplier of advanced climate cooling solutions usinga wide range of heat rejection technologies. Our solutions produce significant energy savings for data centerscompared with traditional cooling solutions. With a diversified product portfolio and extensive application
knowledge, we create sustainable climate solutions for data center operators worldwide. DCT has operations in
Virginia and Texas in the US, as well as in Ireland.

Q2
MSEK
External order backlog
Order intake
GrowthNet sales
Growthof which organic growthof which acq. and div.
of which currency effects
Operating profit (EBIT)

Jan-Jun

2024
6,903
1,060
-1%
1,109
26%
24%
2%
238

2023
6,037
1,067
14%
878
190%
168%
22%
127

Operating margin, %21.4

Amortization of intang. asset
Items affecting comparability
Adjusted EBITA

Adjusted EBITA margin, %

∆%
14
-1

LTM Full-year

2024
6,903
1,403
3%
2,065
35%
34%
1%
414

2023
6,037
1,360
-52%
1,530
193%
170%
23%
204

14.5

20.0

-5
0
243

-6
133

21.9

15.2

26

86

82

∆%
14
3

Jul-Jun
6,903
4,991
4%
3,943
64%
707

2023
7,206
4,948
-21%
3,408
143%
131%
12%
497

13.3

17.9

14.6

-10
0
424

-11
215

-21
0
728

-22
519

20.5

14.1

18.5

15.2

35

103

97

April-June 2024
Order intake
Order intake was flat (-2% organically), with a good level of smaller and mid-sized orders, primarily driven
by the colocation market in Americas as they are hosting hyperscalers that currently need massive
amounts of server space and rely on colocation providers to grow rapidly.
•

The underlying demand remains strong, in the short-term and long-term driven by factors such as
digitization and the growing demand for energy-efficient cooling solutions.

Net sales
Net sales increased +24% organically, driven by successful execution on deliveries of large orders
announced last year. Deliveries of these orders are proceeding according to plan. Service accounted for
8% of DCTs net sales.
•

Region EMEA continued to show stable growth compared to the previous year.

Quarterly net sales - DCT,(MSEK)
1,200

5,000

1,000

4,000

800

3,000

600
2,000

400

1,000

200
0
Q2
22

Q4

Q2
23
Quarter

Q4

0
Q2
24
LTM

Quarterly adjusted EBITA margin % DCT
25%

25%

20%

20%

15%

15%

10%

10%

5%

5%

0%

0%
Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2
22
23
24
Quarter

LTM

Order intake per region Q2,2024 – DCT

Adjusted EBITA
The adjusted EBITA margin continued to improve significantly as a result of a combination of positive
contributions in the quarter from strong volume growth, good effect from lean practices, positive productmix and a high capacity utilization.

0%50%
Americas 93%
EMEA 7%100%
APAC 0%• The build of the new production site in Cork, Ireland is expected to be completed during the year.

January-June 2024•••

Order intake increased +3% organically mainly driven by the colocator market in Americas. Which inturn is driven by increased market activity from hyperscalers, as they lease space from colocators.
Net sales increased +34% organically, driven by good deliveries on large orders announced during
previous years and a ramp-up of production.
The adjusted EBITA margin improved strongly as a result of volume increase, high capacity utilization,
positive product mix and positive effects from lean practices.

Interim report January-June 2024

Net sales per region Q2,2024 - DCT

0%50%
Americas 90%
EMEA 10%100%
APAC 0%7

FoodTech

Quarterly net sales - FoodTech,(MSEK)

Business area FoodTech is one of the world’s leading suppliers of innovative, energy-efficient climate systems
for livestock farming and greenhouses, as well as software for controlling and optimizing the entire foodproduction value chain. Our solutions increase productivity while contributing to sustainable food production,
where strict requirements are placed on quality, animal health and food safety. In July 2023 Munters announced
an initiation of a strategic review of FoodTech’s equipment business. The conclusion of this review is ourintention to divest this business.

Q2

Jan-JunMSEK
External order backlog
Order intake
GrowthNet salesof which SaaS
SaaS ARR
Growthof which organic growthof which acq. and div.
of which currency effects
Operating profit (EBIT)

2024
1,081
741
15%
763
71
284
31%
26%
6%
-1%
79

2023
992
646
17%
583
42
166
-3%
-8%
5%
19

Operating margin, %10.4

Amortization of intang. asset
Items affecting comparability
Adjusted EBITA

Adjusted EBITA margin, %

∆%
9
15

2023
992
1,227
-2%
1,095
78
166
-1%
-6%
6%
25

3.2

7.6

-21
-35
135

-18
-21
58

17.7

9.9

320

135

3,000
2,500

600

2,000

400

1,500
1,000

200

500

LTM Full-year

2024
1,081
1,528
25%
1,359
132
284
24%
18%
7%
-1%
104

31
71
71

800

∆%
9
25

Jul-Jun
1,081
2,734
23%
2,627
237
284
19%
186

2023
877
2,433
9%
2,363
183
226
7%
1%
3%
4%
107

2.3

7.1

4.5

-42
-59
205

-34
-23
82

-87
-72
345

-80
-35
222

15.1

7.5

13.1

9.4

24
70
71

317

150

0

0
Q2 Q3Q4 Q1 Q2 Q3Q4 Q1 Q2
22
23
24
KvartalR12

Quarterly adjusted EBITA margin %- FoodTech
20%

20%

15%

15%

10%

10%

5%

5%

0%

April-June 2024
Order intake
Order intake increased +9% organically, primarily driven by good growth in Americas and EMEA while the APAC
region showed weaker development.
•

Climate solutions in Americas showed good growth, primarily driven by the swine and dairy
segments. Digital solutions in Americas continued to show strong growth, mainly related to thebroiler segment.
The EMEA region showed very strong growth in the layer segment as well as good growth in theswine and broiler segments, driven by Climate solutions where order intake of both equipment andcontrollers saw a good development.
In the APAC region the layer segment showed good growth coming from Climate solutions, offset bya weaker market in other segments.

••

Net sales
Net sales increased +26% organically, with contributions mainly from the EMEA and Americas regions. Service
accounted for 18% of FoodTechs net sales.
•

In Americas, Climate solutions showed strong growth of equipment sales across all segments. Digitalsolutions in the US increased in both software implementation and software recurring revenues(SaaS), where the latter grew +71% to MSEK 71 (42). Growth in Digital solutions was mainly seen in the
broiler segment, as well as an increased growth in the swine segment.
Region EMEA showed good growth, primarily through sales of Climate solutions including both
Equipment and Controllers in the broiler, greenhouse and layer segments.
The APAC region declined slightly, with good growth of Climate solutions including both equipment
and controllers in the layer segment whereas the other segments showed weaker development.

••0%
Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2
22
23
24
Quarter

LTM

Order intake per region Q2, 2024 –FoodTech0%
Americas 54%

50%
EMEA 37%

100%
APAC 10%

Net sales per region Q2, 2024 FoodTech0%
Americas 55%

50%
EMEA 34%

100%
APAC 11%

Adjusted EBITA
The adjusted EBITA margin increased significantly with contributions from all regions, especially EMEA andAmericas.
•••

Strong sales growth in both Climate and Digital solutions positively affected margins.
Profitability levels in Digital solutions remain good, driven by an increasing level of software
implementations and accelerating ARR growth.
Excellent effects from operational improvements such as high focus on inventory management aswell as synergies from the integration of Brazilian InoBram acquired in 2023 combined with net priceincreases.

January-June 2024•••

Order intake increased +20% organically, mainly due to good growth in Americas and EMEA, partly
offset by continued weak development in APAC.
Net sales increased +18% organically, driven by a continued strong development in Americas, as well
as a recovery in EMEA whilst the APAC region showed softer development.
The adjusted EBITA margin improved significantly related to positive effects from increased volumes,
net price increases and operational improvement initiatives.

Interim report January-June 2024

8

Corporate
The Corporate function reported an adjusted EBITA of MSEK -45 (-57) in the second quarter and MSEK -95 (-97)
in the first half year. The reduction in costs is related to services that previously were sourced by Corporate
functions that as of the second quarter is sourced by the business areas.

Quarterly Corporate cost (MSEK)
2.0%
60

1.5%

40

1.0%

20

0.5%

0

0.0%
Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2
22
23
24
Quarter% of Net sales, LTM

Interim report January-June 2024

9

Other information
Employees
The number of permanent FTEs (Full Time Equivalents), at June 30, 2024 was 5,011 (4,294). The amount of FTEs
at June 30, 2024 in business area AirTech was 3,343 (2,690), in DCT 668 (562), in FoodTech 855 (917) and at
Group functions 145 (125).

Outstanding shares
As of June 30, 2024, Munters held 1,916,377 treasury shares of the total shares of 184,457,817. Thus, the numberof outstanding shares as of the balance sheet date was 182,541,440.

Dividend
The AGM in March resolved to pay a total dividend of 1.30 SEK (0.95), a total of MSEK 237 (173) to be paid in two
equal instalments. This represented 30% of net income in 2023. A first instalment of the dividend was paid out inMarch. The second part is to be paid in September. This represents 30 (30) per cent of the net income 2023.

Other events during the quarter

Ten largest shareholders
As of 30 Jun 2024%

FAM AB

28.0

Swedbank Robur Fund

6.3

First Swedish National
Pension Fund

5.0

Capital Group

5.0

Munters Capital Markets Day 2024 with updated financial & sustainability targets - In May, Muntersorganized a Capital Markets Day in Stockholm, offering a deep dive into the company's strategic direction andfuture goals. The event highlighted Munters positioning for the next growth wave, leading to the announcementof an increased financial mid-term target for net sales growth and updated strategic sustainability targets.
Attendees had the chance to engage with our product displays and consult with specialists both before andafter the presentations.

ODIN Funds

4.0

Fourth Swedish National
Pension Fund

3.9

Vanguard

2.7

Nordea Funds

1.9

Norges Bank

1.7

Munters expands its Group Executive Management Team with two new members – In June, Muntersannounced that Kaspar Kirchmann had been appointed Group Vice President Legal and Group Counsel and a
new member of the Group Executive Management Team as of July 1, 2024. Also, Susann Johnsson had been
appointed Group Vice President, Communications and Brand and a new member of the Group Executive
Management Team as of July 1, 2024.

Columbia Threadneedle

1.7

Source: Modular Finance AB

Events after the close of the period
Completed strategic review of the Equipment business in FoodTech – Last year, we initiated a strategic reviewof the Equipment business within FoodTech, which has now been completed. The conclusion of this review is ourintention to divest this business.
Munters acquires majority share in Automated Environments – In July, Munters announced the acquisition of
the majority share in Automated Environments (AEI), a US-based company specializing in automated control
systems for the layer industry. The acquisition is part of the FoodTech strategy to serve food producers with anextensive portfolio of digital solutions. AEI’s technology is engineered for commercial laying hen operations. Its
intelligent controllers and software monitors for example, the environment in the barn and manages feed andwater distribution, which improves both animal welfare and reduces egg production costs. AEI, based in
Minnesota, reported net sales of MSEK 102 (MUSD 9.8) in 2023. The deal is fully financed through existing credit
facilities.
Munters signs an agreement to acquire Geoclima - In July, Munters announced an agreement has been signed
to acquire Geoclima, an Italian manufacturer of air- and water-cooled chillers. Geoclima’s product offering
completes Munters DCT cooling portfolio enhancing the company’s ability to offer full solutions to the total data
center cooling market. Net sales for FY 2023 amounted to approximately MSEK 455 (MEUR 40.1). The company
employes 165 people, with its headquarters in northeastern Italy. Geoclima has sales offices in Italy, Spain, GreatBritain, Australia and US as well as production sites in Italy and Thailand.

Interim report January-June 2024

10About Munters
Munters is a global leader in energy-efficient and sustainableclimate solutions. The solutions guarantee temperature andhumidity control, which is mission-critical for customers.
Munters offers solutions to many different industries wherecontrolling temperature and humidity is mission critical. Our
solutions reduce customers’ climate and environmental impact
through lower resource consumption, and in the processcontribute to cleaner air, higher efficiency and reduced carbon
emissions. Sustainability is an important part of Munters’
business strategy and value creation.

Short facts

Purpose– ~ 5,000 employees (FTEs)

For customer success and ahealthier planet– >45 countries with sales andmanufacturing– 23 production units– 22% women leaders– Three business areas: AirTech, Data
Center Technologies and FoodTech
In Q2, AirTech generated 51%, Data Center
Technologies 29% and FoodTech 20% of thetotal net sales of Munters

Curiosity and the drive tocreate pioneering
technologies are part of ourDNA. Our climate solutions
are mission-critical to ourcustomers’ success andcontribute to a moresustainable planet.

The strategy of Munters
Munters has a strong position in most of our markets. We see great opportunities toimprove and strengthen our market position and to achieve our mid-term financial targets
and deliver on our strategy. The key to success is how we respond in working toward ourgoals. Our overarching strategic priorities show which areas we regard as important to our
success. For each strategic priority we have clear action plans and ambitions what we wantto achieve. Sustainability is a priority issue reflected in every strategic priority.
People:Employees are the hub of our business and their safety and health is a priority.
Diversity and inclusion are important to us, since we are convinced that diversity
leads to stronger innovation. Through collaboration and a passion for creatingenergy-efficient solutions for our customers and partners, we contribute to ourcustomers’ success and a better world.

Customers:

We help our customers succeed by supplying high-quality climate solutions that make them more sustainable. Our success is built on
close, long-term relationships and a deep understanding of the customer’s business and future needs. Our strategy is to continue tobuild customer insight and utilize our broadbased expertise on applications, technology and components to supply attractive solutions
and services.

Innovation:

Curiosity and an ambition to create pioneering technologies are part of our DNA. We will stay at the forefront of the industry’s
development and contribute to sustainable development through our energy- and resource-efficient climate solutions. We continue toinvest in our core technologies, solutions and digitization to optimize our product portfolio and our innovative production technology.

Markets:

Munters is active around the world and climate change, digitization and population growth are the key markets drivers. Our resources
are focused on strengthening our position in areas where we can be a market leader and growing the service business. With highquality, resource-efficient solutions and a conscious effort to re-duce our own climate impact, we contribute to sustainable
development.

Excellence ineverything we do:

Our aim is to increase efficiency and quality in everything we do and to reduce our climate impact. Munters’ operations all share
responsible business practices and high ethical standards with a respect for human rights, diversity, and health and safety in theworkplace

Interim report January-June 2024

11

Quarterly overview Group
Income Statement
2024
MSEK
Order backlog
Order intake
Net sales
Adjusted EBITDA
Depreciation tangible assets
Adjusted EBITA
Amortization intangible assets from acq.
Amortization other intangible assets
Items affecting comparability (IAC)
Operating profit (EBIT)
Financial income and expenses
Tax
Net income-attributable to Parent Comp. Shareholders

Q2
11,834
3,536
3,791
771
-98
673
-14
-40
-41
578
-91
-146
342
330

2022

2023
Q1
11,812
3,368
3,538
582
-84
498
-13
-28
-44
412
-87
-97
227
218

Q4
11,333
5,651
3,659
556
-88
467
-7
-36
-49
375
-99
-218
58
54

Q3
10,025
2,494
3,560
587
-84
503
-13
-29
-7
454
-93
-98
264
260

Q1
7%
13%
14.1
11.6
1.19
1.19
13.6
2.0

Q4
16%
20%
12.8
10.3
0.30
0.30
14.2
2.1

Q3
28%
31%
14.1
12.8
1.42
1.42
13.7
2.2

Q2
11,153
3,427
3,536
561
-82
479
-13
-25
-34
408
-66
-85
257
256

Q1
10,783
2,544
3,175
462
-73
389
-12
-22
-6
349
-73
-62
214
214

Q4
11,463
3,143
3,011
381
-78
304
-8
-30
-9
255
-64
-61
131
128

Q2
27%
28%
13.5
11.5
1.40
1.40
13.2
2.7

Q1
38%
40%
12.3
11.0
1.18
1.18
12.7
2.7

Q4
26%
30%
10.1
8.5
0.70
0.70
12.7
2.9

Q3
11,866
6,354
2,644
359
-66
293
-9
-19
6
271
-41
-53
178
176

Q2
7,515
3,200
2,610
332
-60
272
-9
-15
-28
220
-14
-39
166
169

Key performance indicators
2024
MSEK
Organic Growth, Net Sales
Currency adjusted Growth, Net Sales
Adjusted EBITA margin, %Operating margin, %Earnings per share before dilution, SEK
Earnings per share after dilution, SEKOWC/Net Sales, %Net Debt/Adjusted EBITDA, LTM

Q2
2%
7%
17.8
15.3
1.81
1.81
12.5
1.8

2023

2022
Q3
22%
25%
11.1
10.3
0.97
0.97
13.1
3.0

Q2
25%
29%
10.4
8.4
0.93
0.93
13.3
2.9

Net Debt
2024
MSEK
Cash and cash equivalents
Interest-bearing liabilities
Lease liabilities
Provisions for pensions
Accrued financial expenses
Net Debt

Q2-1,775
5,045
892
283
3
4,447

2023
Q1
-1,581
5,089
757
262
29
4,557

Q4
-1,532
5,131
719
280
22
4,620

Q3
-1,165
4,575
770
197
21
4,399

2022
Q2
-710
4,518
801
209
15
4,833

Q1
-618
3,772
781
217
24
4,175

Q4
-914
3,721
774
227
16
3,825

Q3
-698
3,424
731
187
10
3,654

Q2
-459
3,101
367
226
6
3,241

Operating Working Capital
2024
MSEK
Inventory
Accounts receivable
Accounts payable
Advances from customers
Accrued/deferred income, net
Operating Working CapitalInterim report January-June 2024

Q2
2,108
2,275
-1,362-2,160
555
1,417

2023
Q1
1,902
2,306
-1,349-1,879
583
1,563

Q4
1,726
2,038
-1,294-1,355
640
1,755

Q3
1,965
2,245
-1,156-1,725
741
2,071

2022
Q2
2,153
2,167
-1,277-1,592
782
2,233

Q1
2,071
2,035
-1,159-1,576
466
1,837

Q4
1,956
2,020
-1,288-1,715
418
1,390

Q3
1,765
1,570
-932
-1,428
484
1,460

Q2
1,521
1,407
-910
-1,105
493
1,407

12

Condensed statement of comprehensive
incomeQ2

Jan-JunLTM

Full-year

MSEK

2024

2023

2024

2023

Jul-Jun2023

Net sales
Cost of goods sold
Gross profit
Selling expenses
Administrative costs
Research and development costs
Other operating income and expenses
Share of earnings in associates
Operating profit

3,791-2,382
1,409
-354
-367
-110
5
-4
578

3,536
-2,414
1,122
-327
-284
-80
-21
-2
408

7,329
-4,726
2,602
-680
-716
-209
-0
-7
990

6,711
-4,622
2,088
-625
-527
-151
-26
-2
756

14,548-9,612
4,936-1,336-1,294
-418
-56
-12
1,820

13,930-9,508
4,422-1,281-1,106
-360
-82
-8
1,586

Financial income and expenses
Profit/Loss after financial items

-91
488

-66
342

-178
812

-139
617

-370
1,450

-331
1,255

Tax
Net income for the period

-146
342

-85
257

-244
569

-147
470

-560
890

-463
792

Attributable to Parent Company shareholders
Attributable to non-controlling interests

330
11

256
1

548
21

470
0

862
29

784
8

182,538,820
182,538,820
1.81
1.81

182,123,383
182,395,834
1.40
1.40

182,533,903
182,533,903
3.00
3.00

182,106,082
182,368,487
2.58
2.58

182,488,100
182,488,100
4.72
4.72

182,274,370
182,284,750
4.30
4.30

-82

238

260

238

-252

-274

Actuarial gains/losses on defined-benefit pension obligations
Income tax effect not to be reclassified to profit or loss
Other comprehensive income, net after tax
Total comprehensive income for the period

-10
2
-90
252

10
-2
246
503

5
-1
264
833

23
-5
256
727

-64
13
-303
588

-46
9
-311
481

Attributable to Parent Company shareholders
Attributable to non-controlling interests

244
8

504
-1

811
22

726
1

564
24

478
4

Average number of outstanding shares before dilution
Average number of outstanding shares after dilution
Earnings per share before dilution, SEK
Earnings per share after dilution, SEK
Other comprehensive income

Items that may be reclassified subsequently to profit or loss:
Exchange-rate differences on translation of foreign operations

Items that will not be reclassified to profit or loss:

Interim report January-June 202413

Condensed statement of financial position
MSEK

2024/06/30

2023/06/30

2023/12/31

NON-CURRENT ASSETS
Goodwill
Other intangible assets
Property, plant and equipment
Right-of-Use assets
Participations in associated companies
Other financial assets
Deferred tax assets
Total non-current assets

6,289
2,823
1,246
828
57
149
347
11,739

5,756
2,198
953
768
33
82
346
10,136

5,822
2,259
1,097
672
25
95
292
10,262CURRENT ASSETSInventory
Accounts receivable
Derivative instruments
Current tax assets
Other receivables
Prepaid expenses and accrued income
Cash and cash equivalents
Total current assets

2,108
2,275
11
79
166
838
1,775
7,251

2,153
2,167
8
87
131
1,166
710
6,422

1,726
2,038
0
84
135
954
1,532
6,469

18,99016,55816,731EQUITY
Shareholders' equity
Non-controlling interests
Total equity

5,581
3
5,584

5,820
1
5,821

5,257
1
5,258

NON-CURRENT LIABILITIESInterest-bearing liabilities
Lease liabilities
Provisions for pensions
Other provisions
Other non-current liabilities
Deferred tax liabilities
Total non-current liabilities

5,024
685
283
68
673
471
7,204

4,511
620
209
63
347
453
6,204

4,151
553
280
62
636
455
6,135

CURRENT LIABILITIESInterest-bearing liabilities
Lease liabilities
Other provisions
Accounts payable
Derivative instruments
Current tax liabilities
Advances from customers
Other current liabilities
Accrued expenses and deferred income
Total current liabilities

21
207
196
1,362
−
91
2,160
898
1,268
6,202

6
181
166
1,277
3
74
1,592
118
1,116
4,533

980
167
145
1,294
33
78
1,355
92
1,193
5,337

TOTAL EQUITY AND LIABILITIES

18,99016,55816,731ASSETSTOTAL ASSETSEQUITY AND LIABILITIESCondensed statement of changes in equity items
MSEK

2024/06/30

2023/06/30

2023/12/31

Opening balance
Total comprehensive income for the period
Exercised share options
Put/call option related to non controlling interests
Dividends
Share option plan incl. deferred tax
Closing balance

5,258
833
1
-271
-237
−
5,584

5,307
727
3
-41
-175
1
5,821

5,307
481
21
-377
-175
1
5,258

Total shareholders´ equity attributable to:
The parent company's shareholders
Non-controlling interests

5,581
3

5,820
1

5,257
1

Interim report January-June 202414

Condensed cash flow statement
Q2
MSEK

Jan-JunLTM

Full-year

2024

2023

2024

2023

Jul-Jun2023

OPERATING ACTIVITIESOperating profit

578

408

990

756

1,820

1,586

Adjustment for:
Depreciation, amortization and impairment losses
Other non-cash items
Changes in provisions
Cash flow before interest and tax

152
37
7
774

119
8
19
553

278
-10
32
1,290

227
-0
8
991

535
33
13
2,401

484
43
-11
2,102

Net financial items paid
Taxes paid
Cash flow before changes in working capital

-111
-173
490

-74
-148
331

-186
-276
827

-141
-173
676

-356
-493
1,552

-312
-390
1,400

Change in accounts receivable
Change in inventory
Change in accrued income
Change in accounts payable
Change in advances from customers
Cashflow from changes in operating working capital

52
-110
41
-5
124
102

-22
43
-295
60
-143
-357

-115
-199
157
-7
530
366

-41
-77
-338
-67
-281
-805

-85
150
228
0
512
805

-11
271
-267
-60
-299
-366

Change in other working capital
Cash flow from changes in working capital

70
172

37
-321

22
388

-29
-834

81
887

31
-335

Cash flow from operating activities

662

10

1,215

-158

2,439

1,066

INVESTING ACTIVITIESBusiness acquisitions
Investments in associated companies
Investments in participations and securities in other companies
Sale of intangible assets and property, plant and equipment
Investment in property, plant and equipment
Investment in intangible assets
Cash flow from investing activities

-152
0
-36
0
-104
-75
-366

-147
0
-1
-78
-91
-316

-152
-37
-58
0
-203
-150
-599

-149
-0
0
-1
-149
-176
-474

-747
-37
-63
1
-376
-322
-1,543

-744
-4
0
-323
-347
-1,418FINANCING ACTIVITIESExercised share options
Loan raised
Amortization of loans
Repayment of lease liabilities
Dividends paid
Other changes to financing activities
Cash flow from financing activities

0
174
-236
-44
16
-91

0
608
-0
-39
-175
3
396

1
609
-835
-81
-119
34
-391

3
1,079
-404
-76
-175
1
427

19
1,798
-1,319
-161
-118
-27
192

21
2,268
-887
-156
-175
-60
1,011

Cash flow for the period
Cash and cash equivalents at period start
Exchange-rate differences in cash and cash equivalents
Cash and cash equivalents at period end

205
1,581
-11
1,775

90
616
4
710

225
1,532
18
1,775

-205
911
4
710

1,088
710
-22
1,775

658
914
-40
1,532

Interim report January-June 202415

Parent company
Condensed income statement
Q2

Jan-JunLTM

Full-year

2024

2023

2024

2023

Jul-Jun2023

Net sales
Gross profit/loss
Administrative costs
Other operating income and expenses
Operating profit

−
−
-3
1
-2

−
0
-3
0
-3

−
−
-7
2
-4

−
0
-6
2
-4

−
−
-11
32
20

−
−
-11
32
21

Financial income and expenses
Profit/Loss after financial items

-7
-9

-4
-7

-13
-17

-6
-10

-24
-4

-18
3

Group contributions
Profit/Loss before tax

−
-9

−
-7

−
-17

−
-10

−
-4

−
3

Tax
Net income for the period

−
-9

−
-7

−
-17

−
-10

-0
-4

-0
3

-7
−
-7

-17
−
-17

-10
−
-10

-4
−
-4

3
−
3

MSEK

Condensed statement of comprehensive income
Profit/Loss for the period
Other comprehensive income, net after tax
Comprehensive income for the period

-9
−
-9

Condensed balance sheet
MSEK

2024/06/30

2023/06/30

2023/12/31

4,098
4
4,102

4,098
4
4,103

4,098
4
4,102

0
1
1
12
0
14

0
1
1
27
0
29

1
1
1
10
3
15

4,117

4,132

4,118

6
4,136
-627
-17
3,497

6
4,136
-412
-10
3,719

6
4,136
-394
3
3,750

5
5

3
3

1
1

CURRENT LIABILITIES
Accounts payable
Accrued expenses and deferred income
Liabilities to subsidiaries
Other liabilities
Total current liabilities

1
31
460
124
615

13
15
372
9
409

3
32
327
4
366

TOTAL EQUITY AND LIABILITIES

4,117

4,132

4,118

ASSETSNON-CURRENT ASSETS
Participations in subsidiaries
Other financial assets
Total non-current assets
CURRENT ASSETS
Other current receivables
Prepaid expenses and accrued income
Current tax assets
Receivables from subsidiaries
Cash and cash equivalents
Total current assets
TOTAL ASSETSEQUITY AND LIABILITIESEQUITY
Share capital
Share premium reserve
Profit brought forward
Income for the period
Total equity
NON-CURRENT LIABILITIESProvisions for pensions and similar commitments
Total non-current liabilities

Interim report January-June 2024

16

Other disclosures
Accounting policies

interruption, transportation, the liability of Board members and the CEOand employment practices liabilities.

This report has been prepared, with regards to the Group, in accordancewith IAS 34 Interim Financial Reporting, recommendation RFR 1 of theSwedish Financial Reporting Board and the Swedish Annual Accounts Act
and, with regards to the Parent Company, in accordance withrecommendation RFR 2 of the Swedish Financial Reporting Board and theSwedish Annual Accounts Act. The accounting principles appliedcorrespond to those presented in the Annual- and Sustainability report
2023 (Note 1).

In the beginning of October, 2023 Israel declared it was at war with Hamas.
Within the business area FoodTech, Munters has manufacturing ofcontrollers in Israel located south of Tel Aviv with about 140 employees.
Munters operations has so far not been impacted by the situation and wecontinue to monitor the situation closely in order to be able to quickly
respond to any disturbances.

No new and revised standards and interpretations effective from January 1,
2024, are considered to have any material impact on the financial
statements.

112.

Environmental impact andenvironmental policy
Munters’ operations affect the external environment through air and water
emissions, the handling of chemicals and waste, transport of input goods
and finished products to and from Munters factories. Munters is committed
to constant vigilance regarding the environmental impact of its operations.
Munters is committed to complying with all laws and to continuously
promoting improvements in all Environment, Health & Safety (EHS)
aspects, wherever Munters conducts business. Munters constantly seeks
opportunities to reduce risk and to create a safer, healthier, more diverseand more environmentally friendly workplace for our employees,
customers, communities, and the overall environment. Munters’
manufacturing facilities all over the world are committed to working
according to an EHS Management Program. The purpose of the EHS
Program is to ensure regulatory compliance, actively prevent injuries, andreduce the impact that our business has on the environment.

Risks and uncertainties
The Group’s significant risks and uncertainties can be divided into four
categories; strategic, operational, financial and regulatory risks. In thesecategories, there are both risks due to political and macroeconomic trends
and specific risks directly linked to the business carried out by the Group. A
risk assessment is carried out on an annual basis and the purpose is to
identify and address the most important risks.
Munters’ products are used in complex customer processes. Quality andcontract obligations are critical and could result in claims for damages. The
Group depends to some extent on key customers and key personnel.
Considering that Munters is a company with geographically widespread
operations and many small organizational units, there is a risk of failure tocomply with relevant regulations in the business ethics area, e.g. antibribery rules.
Financial risks mainly consist of currency, interest and financing risks.
Munters works actively with insurance solutions, and group-wide
insurances are governed by central guidelines. This includes for example
coverage for general liability and product liability, property, business

Interim report January-June 2024

A more detailed description of the Group’s risks and how they are managed
can be found in the Annual- and Sustainability report 2023 on pages 108-

Transactions with related parties
There have been no significant transactions with related parties during theperiod.

Fair value of financial instruments
Financial assets measured at fair value through profit/loss relate tofinancial investments and derivatives. Financial investments amounted to
MSEK 124 (62) and net derivatives to MSEK 11 (5) as of the balance sheet
date.
The Group’s put/call option, from the acquisition of MTech Systems, isrecognized at fair value in the statement of financial position. The option ismeasured according to IFRS 9 and is categorized in level 3 in the fair value
hierarchy. The exercise period begins on January 1, 2025, and ends on
December 31, 2025. The fair value of the option amounts to MSEK 848(MSEK 562 as of 31 Dec, 2023) as of the balance sheet date.
The put/call option from the acquisition of a majority share in InoBram isrecognized at fair value. Munters acquired 60 per cent of the company but
the agreement includes a put/call option for Munters to acquire theremaining 40 per cent of the company in 2027. The exercise period for thesellers put option begins in 2026. The fair value of the option amounts to
MSEK 52 (MSEK 37 as of 31 Dec, 2023) as of the balance sheet date.

MSEK
2024/06/30
632
Opening balance−
Valuation put/call options
23
Holdbacks
Remeasurements
265
Discounting
6
Exchange-rate differences
32
Closing balance958

2023/06/30
217
63
31
−
10
9

2023/12/31
217
37
37
352
25
-35

330

632

Munters deems that the interest rate on interest-bearing liabilities is in linewith market terms on June 30, 2024, and the fair value at the end of thereporting period therefore in all material aspects corresponds to thecarrying amount.

17

Net Sales by business area and region
Net Sales by business area and region in Q2
AirTechMSEK
Americas
EMEA
APAC
Sales between regions
TOTAL

2024
973
696
388
-119
1,938

DCT
2023
885
702
669
-168
2,088

Net sales by business area and region Jan-Jun
AirTech
MSEK
2024
2023
Americas
2,087
1,721
EMEA
1,241
1,351
APAC
836
1,363
Sales between regions
-230
-324
TOTAL
3,933
4,111

FoodTechGroup

Eliminations

2024
1,000
111
1
-2
1,109

2023
792
89
1
-4
878

2024
413
301
107
-57
763

2023
304
233
86
-41
583

DCT
2024
1,866
201
1
-3
2,065

2023
1,374
159
2
-4
1,530

FoodTech
2024
2023
760
544
535
466
162
154
-97
-69
1,359
1,095

2024
0
-10
-6
-3
-19

2023
0
-8
-3
-2
-13

Eliminations
2024
2023
0
-1
-15
-13
-9
-7
-5
-5
-29
-26

2024
2,386
1,097
490
-182
3,791

2023
1,981
1,017
753
-215
3,536

Group
2024
4,713
1,961
990
-335
7,329

2023
3,639
1,962
1,512
-402
6,711

Reconciliation of alternative performance measures and items
affecting comparabilityor transactions with significant financial effects, which are relevant for theunderstanding of the financial performance when comparing the current
period to previous periods. Items included are for example, restructuring
activities, capital gains and losses from business divestments and M&A
related costs.

The Group presents certain financial metrics in the Interim Report that are
not defined in accordance with IFRS. The Group is of the opinion that these
metrics provide valuable complementary information, in that they enable
an evaluation of the Group’s performance. The financial metrics arecalculated in accordance with the definitions presented in this interim
report. A reconciliation of Adjusted EBITDA and Adjusted EBITA is found in
the quarterly overview on page 12. Items affecting comparability are events

Below is a break-down of items affecting comparability by period.
Q2

MSEK
Restructuring activities
M&A activities
Other items
Total

2024
-13
-7
-20
-41

Jan-Jun
2023
-8
-6
-20
-34

2024
-24
-16
-45
-85

LTM
2023
-12
-7
-20
-40

Apr-Mar
-46
-38
-57
-141

Full-year
2023
-34
-29
-32
-96

Business combinations
Consolidated acquisitions in 2024

Company (Count

Businessarea

Airprotech (IT)

AirTechMonth Number ofacquired employees
May

52

Net sales

Share (%)

MSEK 330100

In May, Munters closed the acquisition of Airprotech, an Italian company
within VOC abatement systems. The acquisition enhances Munters Clean
Technology portfolio and supports cleaner production for European
industries.

Jan-Jun
2024

Jan-Jun2023

Purchase priceCash purchase consideration paid
Holdback & deferred considerations
Put/call option

232
23
-

171
8
63
242

MSEK

Total purchase consideration

255

Fair value of acquired net assets

-36

-74

Goodwill219

168

Cash flow
Cash purchase consideration paid
Cash and cash equivalents in acquired companies

232
-80

171
-22

Change in the Group's cash and cash equivalents

152

149

Interim report January-June 2024

18

The Board of Directors and the President and CEO certify that the Interim Report gives a true and fair overview of the Parent Company’s and Group’s
operations, their financial position and results of operations, and describes the significant risks and uncertainties facing the Parent Company and othercompanies in the Group.

Stockholm, July 17 2024

Magnus Nicolin
Chairman of the Board

Elizabeth Carey Nugent
Board Member

Sabine Simeon-Aissaoui
Board Member

Klas Forsström
President & CEO

Helen Fasth Gillstedt
Board Member

Anders Lindqvist
Board Member

Kristian Sildeby
Board Member

Robert Wahlgren
Board Member,
employee representative

Maria Håkansson
Board Member

Simon Henriksson
Board Member,
employee representative

This report has not been subject to review by the company’s auditors.

Interim report January-June 2024

19

Definition of key financial indicators
In this financial report, there are references to several performancemeasures. Some of the measures are defined in IFRS, others are alternative
performance measures and are not disclosed in accordance with applicablefinancial reporting frameworks or other legislations. The performancemeasures are used by the Group to assist both investors and management
in analyzing Munters’ business. Below the performance measures found in
this financial report are described and defined. The reason for the use of
the performance measure is also disclosed.

Earnings per share

Organic growth

Return on capital employed (ROCE)

Change in net sales compared to the previous period, excluding
acquisitions and divestments and currency translation effects. The measureis used by Munters to monitor net sales growth driven by changes involume and price between different periods.

Average operating profit (EBIT) plus financial income, divided by theaverage capital employed, where capital employed is total equity plus
interest-bearing liabilities. The average capital employed is calculated
based on the last 12 months.

Currency-adjusted growth

Operating working capital

Change in net sales compared to the previous period, adjusted for currencytranslation effects. The measure is used by Munters to monitor changes in
net sales from both organic and inorganic growth between different
periods.

Includes accounts receivable, inventory, accrued income, accounts payable
and advances from customers.

Order backlog
Received and confirmed sales orders not yet delivered and accounted foras net sales. Order Backlog is a useful measure to indicate the efficiency ofthe conversion of received and confirmed sales orders into net sales infuture periods. The measure is used by Munters to monitor businessperformance and customer demand and adjust operations if needed.

Order intake
Received and confirmed sales orders minus cancelled orders during thereporting period. The order intake is an indicator of future revenues and,
consequently, an important KPI for the management of Munters’ business.

SaaS recurring revenue
Total recurring revenue from SaaS contracts (Software-as-a-Service)recognized in the period. The KPI is also presented annualized and named
SaaS ARR, which is calculated by multiplying SaaS Recurring Revenue inthe last quarter by four.

Net income divided by the weighted average number of outstanding
shares.

Capital employed
Capital employed is calculated as the total equity plus interest bearing
liabilities.

Operating working capital/net sales
Average Operating Working Capital for the last twelve months as apercentage of Net sales for the same period.

Cash and cash equivalents
Cash and bank balances plus investments in securities and the like withmaturity periods not exceeding three months. This is a measure thathighlights the short-term liquidity.

Net debt
Net debt calculated as interest bearing liabilities, lease liabilities, provisions
for pension and accrued financial expenses, reduced by cash and cash
equivalents.

Equity/assets ratio
Equity (including non-controlling interests) divided by total assets.

LTM

Earnings before interest and tax. Munters believes that EBIT shows the
profit generated by the operating activities.

LTM (last twelve months) after any key indicator means that the KPI
corresponds to an accumulation of previous twelve month reported
numbers. The measure highlight trends in different KPIs, which is valuable
in order to gain a deeper understanding of the development of thebusiness.

Adjusted EBITA

Number of employees

Operating profit (EBIT)

Operating profit, adjusted for amortizations, write-downs of intangible
assets and items affecting comparability. Munters believes that using
adjusted EBITA is helpful in analyzing our performance as it removes theimpact of items considered not to be of recurring character and therefore
do not reflect our core operating performance.

Adjusted EBITA margin
Adjusted EBITA as a percentage of net sales. Munters believes that
Adjusted EBITA margin is a useful measure for showing the Company’s
profit generated by the operating activities.

Adjusted EBITDA
Operating profit adjusted for items affecting comparability anddepreciations, amortizations and write-downs of tangible and intangible
assets as well as Right-of-Use assets.

Number of employees is presented recalculated as full-time positions, if
not otherwise stated. Average number of employees for the year is
calculated as the sum of permanent employees at the end of each of thelast 13 months divided by 13.

Americas
Refers to North-, Central and South America.

Service
After-market service and software-as-a-service (SaaS) revenues.

After-market service
After-market service is defined as sales of spare parts, commissioning andinstallation, inspections and audits, repairs and other billable services.

Adjusted EBITDA margin
Adjusted EBITDA as a percentage of net sales.

Items affecting comparability (IAC)
Items affecting comparability are events or transactions with significant
financial effects, which are relevant for the understanding of the financial
performance when comparing the current period to previous periods. Items
included are for example, restructuring activities, capital gains and losses
from business divestments and M&A related costs.

Interim report January-June 2024

20

Information andreporting dates
Welcome to join a webcast or telephone conference on July 17, at
9:00 CEST, when President and CEO Klas Forsström together with
the Group Vice President and CFO, Katharina Fischer, will present
the report.

Webcasthttps://ir.financialhearings.com/munters-q2-report-2024

Conference call
If you wish to participate via teleconference, please register on thelink below. After registration you will be provided phone numbers
and a conference ID to access the conference. You can ask questions
verbally via the teleconference.
https://conference.financialhearings.com/teleconference/?id=5004
9060
This interim report, presentation material and a link to the webcast
will be available on https://www.munters.com/en/investorrelations/Contact information:
Ann-Sofi Jönsson
Vice President, Investor Relations & Group Risk Management
Phone: +46 (0)730 251 005
Email: ann-sofi.jonsson@munters.com
Line Dovärn
Director, Investor Relations
Phone: +46 (0)730 488 444
Email: line.dovarn@munters.com

Every care has been taken in the translation of this interim report. In
the event of discrepancies, the Swedish original will supersede theEnglish translation. The addition of the totals presented may resultin minor rounding differences.
This information is information that Munters Group AB is obliged tomake public pursuant to the EU Market Abuse Regulation and the
Securities Markets Act. The information was submitted for
publication, through the agency of the contact persons set out
above, at 07.30 CEST on July 17, 2024.
This report 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 reasonableassumptions, no assurance can be given that such expectations prove to have been correct, as
forward-looking statements are subject to both known and unknown risks and uncertainties anda variety of factors that could cause actual results or outcomes to differ materially from thoseexpressed or implied by such forward-looking statements. Such factors include, but are notlimited to, changes in economic, market, competitive and/or regulatory conditions. Forwardlooking statements speak only as of the date they were made and, other than as required byapplicable law, Munters undertakes no obligation to update any of them in light of new
information arising or future events.

Financial calendar:
Payment date for dividend

September 30, 2024

Third quarter report 2024

October 22, 2024

Fourth quarter & Full year report 2024

February 5, 2025

Munters Group AB, Corp. Reg. No. 556819-2321

Interim report January-June 202421