Annette Kumlien, Group Vice President and CFO

Agenda Capital Market Update 2021
Munters – a global leader in climate solutions
Strategy execution
Driving value
Business areas
Summary and Q&A2

Munters journey towards improved profitable cash-generating growth
Mid-term financial targets
5% organic growth in Net Sales
over a business cycle**

14% adjusted EBITA-margin**
14%

13.6%
11.6%

(YoY currency adjusted growth)

6%
2%

2016

3

12.3%

(Leverage: Net debt / adj. EBITDA)
3.2

3.5

3.7
2.9

11.3%

1.96%
2%

2017

12.2%

12.9%1.5x-2.5x Capital structure (LTM*)

2018

1.91%

2019

2020 2021 Q1

2016

2017

2018

2019

2020 2021 Q1*LTM = Last Twelve Months**Net sales and adjusted EBITA-margins are excluding discontinued operations (i.e. Data Centers operations in Dison, Belgium).

2016

2017

2018

2019

2020 2021 Q1

Priorities for driving value
Value chain optimization

Competence development

Cash conversion

4Digitalization

Growth – organic and inorganic

Excellence in everything we do

Efficiency improvements

Operational leverage

Key activities driving growth and profits
14%

Targeted CAPEX to realize the strategyContinuous performance reviews / evaluations
Munters Production System
Footprint optimization
Information connected throughout the value chain
Digitalization - Process automation, AI, Robotics

5 *CAPEX = Capital expenditure(margins)

Adj. EBITA-margin 2016-2020

Value based selling and active pricing strategies
Digitalized and connected offering

ProfitGrowth

13.6%

12%

11.6%

11.3%

12.2%

12.9%

10%
8%
6%

2016

2017

2018

2019

2020

Excellence in everything we doCash

Driving cash – our cash conversion focus
Pre-study performed to estimate
potential improvements andoutline local initiativesProgramlaunch

Execution of local OWC
initiatives

2019

Introduction of new KPIs andperformance management

The improvement journeycontinues

2020

Immediate actions including“quick-wins” implementation

2021

Av OWC % of Net Sales LTM*
20%
18%
16%
14%

Applying best practices on converting profit to cash,
focus on operating working capital*LTM=Last Twelve Months
618%

18%

18%

18%

17%

17%

16%

14%

13%

12%

12%
10%
8%
6%

Jan-Dec Apr-Mar Jul-Jun Oct-Sep Jan-Dec Apr-Mar Jul-Jun Oct-Sep Jan-Dec Apr-Mar
2018 2019 2019 2019 2019 2020 2020 2020 2020 2021

Excellence in everything we do

Driving cash – what’s next?
Examples of OWC* initiatives:• Continue driving best-practice ways of working andimplement through group wide programs• Improve project cash profile• Warehouse and inventory mgmt. improvements,e.g. minimizing slow-moving inventories• Lead time reductions (own production and suppliers)• Supply Chain Financing*OWC=Operating Working Capital
8Cash

Excellence in everything we do

Value chain optimization – key enabler for our strategy

Profit(margins)

CashGrowthCommon ways of working in E2E value chain
R&D, PM & MKT, SALES, SOURCING, OPERATIONS, SERVICE, FINANCE, HR

PROCESSESSYSTEMSINFO FLOWSMASTER DATAMGMTGOVERNANCE

Increased efficiency•••

Focus on customer value

9GLOBAL AND SCALABLE PROCESSES AND IT SYSTEMSREDUCTION OF COSTS AND LEAD TIMES, QUALITY IMPROVEMENTCREATE A PLATFORM FOR FUTURE GROWTH, ALSO ENABLING M&A INTEGRATIONSProfitable cash generating growthBetter Munters experience

Excellence in everything we do

Inorganic strategies to boost overall growth
Focused acceleration of M&AA ….

M&AA categories in focus

Core / Consolidation

Services –String of pearls

Business value driven• Strategic fit – is there a clear logic?
• Risks – are risks manageable?
Integration playbook• Integration team• Integration clarity/focus

New growth areas
10…with attention on M&AA execution excellence• Business case – is it financially sound?
Technology / DigitalGrowth• Synergy realization

Excellence in everything we doProfit

DIGITAL AMBITIONS

Digitalization at the forefront

Customers

Munters digital products Top 10 of Munters mostand services are growing ineffective processes
digitally remasteredgaining efficiency
savings
Customers

11

Optimization

Excellence(margins)

Organization
Strong digital DNA in allparts of Munters - drives
higher efficiency andinnovation

PeopleSecurity

Technology

Strong security function World class technology
to keep Muntersand data platform to formbusiness safe
the base for customer
development andoptimization
ExcellenceInnovation

CashGrowth

Excellence in everything we do

Delivering on our strategic journey
2020

2021

2nd step in strategy implementation
July: Sharpening measures, mainly AirTech• New strategy launch in 2020,
shortly after measuresannounced:• Exit non-core part of thecommercial business in the US• Expand Data Centers US
manufacturing in Texas• In the Netherlands, operations
to be consolidated• In addition, several othermeasures to be taken toensure execution of thestrategy

12

3rd step in strategy implementation
May: Accelerating the strategy implementation, FoodTech• New FoodTech strategy presented May 2021 aiming at creating a unique connected offering
throughout the food production value chain• Savings MSEK 70
once realized end
2021 annual run-rate

Measures for strategy implementation:•1•Accelerate the digital journey
E.g., Shift from 1st to 2nd generation IoToffering & scaling software operations• Total cost:est. MSEK 176• Status Q1:
Implementation
running as planned•
2•Strengthen footprint and offering
E.g. Set-up of distribution hub in Asia,
improve production excellence in Americas
and Europe as well as streamlined productoffering in Europe• Full-year positive
impact on EBITA ofest. MSEK 70 in 2023
• Total cost:est. MSEK 140• Implementation starts
in Q2 2021

Framework contribute to delivering on mid-term targets
Net sales growthOrg. growth p.a. over abusiness cycle

Adjusted EBITAmargin
Capital structure(LTM*)(Leverage: Net debt / adj.
EBITDA)*LTM = Last Twelve Months

13Mid-termtargets

Q1 2021

5%

14%

14%

12.3%

1.5x2.5x

1.9x