Agenda – platform for today and the future
CEO – Munters Towards Full Potential•

A strong company – but disappointing performance since IPO•

Global player in niche markets•

Full Potential Program to seize opportunities

Global Operations – Building a customer-oriented and scalable platform
AirTech – Sustainable solutions for demanding industrial applications
FoodTech – Sustainable solutions for demanding agricultural applications
CFO – Delivering the numbers
CEO wrap-up – Confident in our targets
1Full Potential Program in three phases – focus on the first2

PHASE 1: STABILITYPHASE 2: PROFITABILITY

PHASE 3: GROWTH

Secure stable and profitable
platform

Improve performance

Accelerate growth inattractive segments andgeographies

Phase 1: Secure a stable and profitable platform Strengthen leadership team
STABILITY
Secure stableand profitable
platform

 Simplify Munters structure into two decentralized Business Areas Drive leaner structures and cash efficiency
 Drive Data Center performance uplift through focus towards US market

3

STABILITY – Secure stable and profitable platform

New organization and leadership team in place• Klas Forsström appointed new President and CEO effective nolater than mid-October 2019–20 years of senior management positions at Sandvik (including President ofSandvik Hard Materials and Sandvik Coromant.)–M.Sc. in Materials Physics and an MBA from Uppsala University Advanced
management studies at INSEAD• New organization and management team in place

4–

Two strong business areas–

New group management (6 members vs. previously 13)

STABILITY – Secure stable and profitable platform

2 Business Areas – under 1 vision – with a shared operations platform
CEO“Sustainable climatesolutions for demanding
industrial andagricultural applications”

AirTechGlobal Operations
HR, Communications
and CSR

5FoodTechFinance, IT, IRand Strategy

STABILITY – Secure stable and profitable platform

Governance and accountability strengthened in Business Areas
Strengthened regional management teams
Clarified strategic priorities and strengthened
accountability
Launched quarterly follow-up on Business Unit level(i.e. country organization) with senior management
Strengthened team in key positions, e.g. new Sales VPs
AirTech Americas and EMEA

6

More result-oriented and effective
Business Area organizations

STABILITY – Secure stable and profitable platform

Full program target EBITA improvement of 210 mSEK run-rate 2019E
Full Potential Program EBITA run-rate impact (mSEK)
AirTechFoodTechGroup Overhead
Total savings
Data Center (AirTech)performance uplift
Total program

79540

125160250210STABILITY – Secure stable and profitable platform

Full impact expected in 2020
Program

Total program impact

2019 adj. EBITA impact 2020 adj. EBITA impact– equals ongoing
annual run-rate

mSEK +105mSEK +210

One-time costs

Cash pay-back timemSEK -350 costs

Approx.
2 years(60% during H1 and 40%during H2 2019)

Timing and ultimate cost of program may vary from current estimates based on final timetable and subject to information and consultation with therelevant employee representative bodies.

81

STABILITY – Secure stable and profitable platform

Savings progressing according to plan
Full Potential Program Savings

2019 end-of-yeartarget = 160 mSEK

• FTE reductions and other costsavings according to planRun-rate savings(mSEK)• One-time costs of 61 mSEK
according to plan

Actuals
PlannedFeb9EndMarDec

2

STABILITY – Secure stable and profitable platform

Data Center profit uplift progressing according to planEuropeAmericas• Union consultations ongoing according to the socalled “Renault process” regarding intended closure ofDison plant• Order backlog in Americas is 139% higher than at theend of Q1 last year

• Production in the Dison factory following schedule withminor and manageable delays• Orders come for a wider range of customers and from awider range of solutions – which caters for morestability in the business• Production in the first quarter following schedule

10

STABILITY – Secure stable and profitable platform

Strategic alternatives for ME and DC being evaluated
Data Center
Underlying marketgrowth?
Competitiveness ofMunters business?
Munters being the“best” owner for thebusiness?

?

10-15% expected CAGR in years tocome
Leading technological solution and oneof the leading players in economizer
solutions
A range of operational issues over thelast years

Mist EliminationUp to 10% expected CAGR in years tocome

Leading technological solutions and theleader in FGD and Marine markets?

Business of limited scale and relatively
non-adjacent from rest of Munters

We will only invest in businesses where we optimise our deployment ofcapital – to be determined if DC and ME fulfil that criteria
11Full Potential Program – starting to look into future phases

12PHASE 1: STABILITY

PHASE 2: PROFITABILITY

PHASE 3: GROWTH

Secure stable and profitable
platform

Improve performance

Accelerate growth inattractive segments andgeographies

Our aspiration for 2021
• World leading position in selected growing markets where the Perfectindustrial and agricultural Climate is mission-critical• Customer see us as the most innovative partner of energy-efficient solutions– built around deep application expertise, leading technologies, a combined
service and equipment offering and new generations of digital solutions• Effective organization with clear governance and focus on the customer– securing stability in performance over time
• Employees with a passion for creating the Perfect Climate for our customers– and for being part of solving some of the worlds biggest challenges

13

We are confident we can deliver on our financial targets•

We operate in attractive markets driven by strong
sustainability oriented global trends•

We pursue leading positions in selected market segments•14We have a plan to turn around the company short-term with
the Full Potential Program – and a strategy for longterm profitable growth

Net Sales growth of 5%
Adjusted EBITA Margin of 14% mid-term
Net Debt/adjusted EBITDA ratio of 1.5-2.5
Dividends of 30-50% of Net Income