Q2 2022
Strong growth in a quarter marked bycontinued challenges
April-June

January-June– Strong order intake driven by business area Data Center
Technologies (DCT) in Americas and in Battery andService in business area AirTech.

– Order intake increased mainly driven by DCT and inBattery and Service in AirTech. DCT signed Munterslargest order ever received in January. FoodTech had
good growth in Americas and signed a large SaaS deal
in the subsidiary MTech in the first quarter.

– Net sales increased driven mainly by DCT in Americas
and by good growth in Battery and Service in AirTech,
offset by a continued weak market in China for businessarea FoodTech.
– In adj. EBITA our price increases compensated for
inflationary pressure, however offset mainly by costs due
to component shortages, business mix change in DCT,
lower volumes for FoodTech in EMEA and APAC andoperational challenges.
– Leverage increased mainly as a result of the increased
working capital resulting from strong volume growth,
dividend payout and exchange-rate effects as the SEK
weakened against several currencies.
– Strong order intake led to an increase of working capitaland lower cash flow from operating activities. This isdriven mainly by preparations for project deliveries overthe coming 18 months in the Battery sub-segment in
AirTech and DCT.

Financial summary
MSEK
Order intake
Net sales
Growthof which organic growthof which acquisitions and divestmentsof which currency effects
Operating profit (EBIT)
Adjusted EBITA
Adjusted EBITA margin, %Net income
Earnings per share before dilution, SEK
Earnings per share after dilution, SEK
Cash flow from operating activities
Net debt
Net debt/Adjusted EBITDA, LTM– In the first quarter Munters suspended all businessactivities with Russia due to the war in Ukraine.
– Net sales increased in all business areas with strong
growth in AirTech and DCT. FoodTech experienced
weakened markets in EMEA and China, slightly offset by
growth in the US.
– In adj. EBITA our price increases compensated for
inflationary pressure, however offset mainly by costs due
to component shortages, business mix change in DCT,
lower volumes for FoodTech in EMEA and APAC andoperational challenges.
– Leverage increased mainly due to the acquisition of
Edpac at the beginning of the year, working capitalbuild-up as a consequence of the strong volume growthand exchange-rate effects.
– Strong order intake led to an increase of working capitaland lower cash flow from operating activities.

Q2
2022
3,200
2,610
43%
25%
4%
14%
220
272
10.4
166
0.93
0.93
105
3,241

Jan-Jun2021 ∆%
2,118 51
1,822 43
3%
13%
-10%
147 50
259
5
14.2
84 98
0.46
0.45
159
2,209

2022
7,333
4,731
38%
21%
4%
12%
354
473
10.0
268
1.51
1.51
79
3,241
2.9

LTM*

Full-year

2021 ∆% Jul-Jun
4,113 78 12,233
3,434 38
8,645
3%
22%
13%
14%
2%
-11%
6%
369 -4
738
457
4
906
13.3
10.5
244 10
540
1.33
2.99
1.33
2.98
247
352
2,209
3,241
1.9
2.9

2021
9,013
7,348
5%
10%
-5%
753
889
12.1
515
2.81
2.81
519
2,389
2.2

Order intake
reported growth+51%
Net salesorganic growth+25%
Adj. EBITA-margin

10.4%
Leverage

2.9* Last twelve months

Interim report April-June 2022

1

CEO comments
Strong growth in a quarter marked by continued challenges
The second quarter showed solid growth as we continue to benefit from the strong megatrendsof digitization, electrification and increased demand for sustainable solutions.
Growth was mainly driven by DCT and Battery and Service in AirTech. Lockdowns related to
Covid-19 outbreaks in China impacted both AirTech and FoodTech. A continued weak
Chinese swine market also had a negative impact on FoodTech.
Price increases implemented in previous quarters compensated for inflationary pressure. We
continue to adjust prices in all regions to secure coverage for increasing costs. Simultaneously
efforts to secure components have intensified during the year and more work goes in to
manage lead times. This is particularly noticeable in DCT where we also had a negative
business mix in the quarter. Lower volumes for FoodTech in EMEA and APAC had a negative
impact on the margin in the quarter. The operational challenges in a production unit in AirTech,that started in the fourth quarter last year, continued to have a negative impact on the margin.
Operating working capital increased as the order backlog includes some larger orders
received in the first half of the year with deliveries scheduled to start in the fourth quarter thisyear.

Increased investments to capture market opportunities
To lay the foundation for an effective execution of our growth strategy and become more
efficient and scalable, we are continuing to increase our strategic investments into digitization
and automation. Focused investments are made to reduce costs, decrease lead times, improve
quality and become more scalable. These investments will enable Munters to improve andalign processes, systems, information flows and master data management.
To meet growing demand, we are also expanding our capacity with two new manufacturing
plants this year, which will be inaugurated in the third quarter. One is dedicated to the battery
segment, located in the Czech Republic, and one in the US for business area DCT.

Execution on long-term strategy for value-creating growth
DCT has experienced strong growth in recent years and entered Europe at the beginning of
this year through the acquisition of Ireland-based Edpac. Continued investments in scalable
production and innovation builds for profitable growth in this area and as of June 30, it isreported as a separate business area.

Klas Forsström
President and CEO” We are growing strongly. To lay

the foundation for an effective
execution of our growth strategy
going forward, we are investing for
scalability.”It’s encouraging to see the increased demand in especially the battery and data center areas
and the dedicated work of our employees to balance global market challenges while
enhancing our operational efficiency. I’m confident in Munters’ ability to deliver on our growthstrategy and proud of all employees’ constant ambition to exceed customer expectations.

Midterm financial targets

Sustainability

Net sales growth:

Annual organic growth of net sales of 5%
Performance Q2 2022: +25% (13)To maintain a sustainable and profitable business, Munters has integrated
sustainability in every aspect of the business strategy.

Adjusted EBITA-margin:

An adjusted EBITA-margin of 14%.
Performance Q2 2022: 10.4% (14.2)

Highlights second quarter 2022:

Capital structure:

A ratio of net debt to adjusted EBITDA of 1.5x to
2.5x and may temporarily exceed this level (e. g.
as a result of acquisitions).
Performance Q2 2022: 2.9x (1.9x)
Munters aim to pay an annual dividend
corresponding to 30-50% of its consolidated
income after tax for the period.
For 2021 a dividend of SEK 0.85 (30% ofincome after tax) was paid in the second quarter,
totaling MSEK 154.

Dividend policy:

For full description of the dividend policy, see the Annual and Sustainability report 2021,
page 10 or at www.munters.com.

Interim report April-June 2022

– Mandatory training for all non-production employees of our Code of
Conduct policy which provides transparency and understanding of
behaviors expected at Munters. It also illustrates when to escalate issues andwho to turn to for support to create an environment where people feel safe tocome forward with concerns and questions.
– Updated sustainability scorecard for new products which helps determine theimpact categories: raw materials, production, use phase and end-of-life.
– Opening of Munters Academy, a place for colleagues to gather and learn
about the latest air treatment systems and technologies in both theory andpractice.
See the Munters Annual and Sustainability report 2021, pages 40-49, for further
information on goals and outcome or at www.munters.com.

2

Financial performance
As of June 30 2022 Munters Group AB report its operations in three business areas: AirTech, Data Center
Technologies (DCT) and FoodTech. Historical financial information is presented on Munters Group ABs
homepage, munters.com/investors.
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

2022
3,200
1,727
939
554
-20
2,610
1,723
303
599
-15
272
242
18
50
-39
10.4
14.1
5.9
8.4

Jan-Jun
2021
2,118
1,315
180
636
-14
1,822
1,088
177
567
-10
259
177
28
80
-26
14.2
16.2
15.9
14.1

∆%
51
31
421
-13
43
58
72
6
5
37
-36
-37
-

2022
7,333
3,305
2,809
1,252
-33
4,731
3,133
523
1,104
-28
473
442
24
72
-65
10.0
14.1
4.6
6.5

2021
4,113
2,589
389
1,156
-22
3,434
2,102
357
992
-17
457
336
49
119
-47
13.3
16.0
13.8
12.0

LTM Full-year∆% Jul-Jun
78 12,233
28
6,557
621
3,471
8
2,262
-57
38
8,645
49
5,694
46
868
11
2,139
-56
4
906
32
788
-51
67
-40
163
-112
10.5
13.8
7.7
7.6

2021
9,013
5,842
1,051
2,166
-46
7,348
4,664
702
2,028
-46
889
682
92
210
-95
12.1
14.6
13.2
10.4

Order intake
April-June 2022
Order intake increased by +51% (an organic growth of +33%, acquisitions and divestments+2% and currency effects +17%) mainly driven by strong growth in DCT in Americas andBattery and Service in business area AirTech. The order backlog increased +149% to MSEK
7,515 (3,018) (an organic increase of +114% and currency effects +32%). Price increases
in in the quarter contributed to approximately +9% of the organic growth.
Order intake in AirTech increased by +31% (an organic increase of +19% and currency
effects +12%) with growth in all regions. In APAC, lockdowns related to Covid-19 impacted
negatively however offset by good growth in Battery. Battery also grew in EMEA, and in
Americas Food and Components had good growth. Clean Technologies (CT) showed good
growth in all regions, primarily driven by the process industries. Services also experienced
good growth mainly in Americas. Price increases in the quarter contributed to approximately+9% of the organic growth.
Order intake in DCT increased by +421% (an organic growth of +318%, acquisitions anddivestments +18% and currency effects +85%) mainly driven by colocation customers in
Americas and specifically orders for the newly launched SyCool product range. Priceincreases in the quarter contributed to approximately +8% of the organic growth.
Order intake in FoodTech decreased by -13% (an organic decrease of -22% and currency
effects +9%). In region APAC, China continued to have a weak development with lower
levels of new constructions in the swine market marked by overcapacity. Also, lockdowns
related to Covid-19 impacted negatively in China. In EMEA, the underlying market situation
weakened, mainly as a consequence of the war in Ukraine, supply chain constraints andincreasing input costs for the farming industry. In Americas, Digital Solutions grew. Priceincreases in the quarter contributed to approximately +13% of the organic growth.

January-June 2022
The order intake in the first six months increased by +78% (an organic growth of +59%,
acquisitions and divestments +3% and currency effects +16%), mainly driven by DCT. At the
beginning of the year, DCT received the largest order ever for Munters from a colocation
operator in the US valued at approximately MUSD 115. In AirTech Battery and Service
experienced strong growth. In FoodTech Digital solutions grew in the US, mainly because alarge SaaS deal in MTech was signed in March with an order value of about MUSD 19.

Interim report April-June 2022

Quarterly order intake(MSEK)
5,000

14,00012,0004,000

10,000

3,000

8,000

2,000

6,000
4,000

1,000

2,000

0

0
Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2
20
21
22

Quarter

LTM

Order intake per region Q2, 2022
(MSEK)
18%

58%

24%

Americas

EMEA

APAC

3

Net sales
April-June 2022
Net sales increased +43% (an organic growth of +25%, acquisitions and divestments +4%
and currency effects +14%) driven mainly by DCT in Americas and by good growth inBattery and Services in AirTech. Services net sales amounted to14% of total net sales. Priceincreases in in the quarter contributed to approximately +9% of the organic growth.
AirTech increased +58% (an organic growth of +43% and currency effects +15%) with good
growth in all regions. Battery had strong growth in APAC and Americas. CT grew strongly,
especially in Americas. Service showed growth in all regions, with good growth in Americas.
Service net sales amounted to 20% of net sales in AirTech. Price increases contributed toapproximately +6% of the organic growth in the quarter.
DCT increased by +72% (an organic growth +10%, acquisitions and divestments +39% andcurrency effects +23%) with strong growth driven by colocation customers in both EMEA andAmericas. Component shortages led to extended lead times, and the business mix alsochanged. Price increases contributed to approximately +2% of the organic growth in thequarter.

Quarterly net sales,(MSEK)
3,000

10,000

2,500

8,000

2,000

4,000

1,000

2,000

500
0

0
Q2 Q3Q4Q1Q2 Q3Q4Q1Q2
20
21
22

QuarterLTM

Net sales per region Q2, 2022
(MSEK)

26%

FoodTech increased +6% (an organic decrease of -5% and currency effects +10%).
Americas grew slightly driven by the Broiler and Layer segments. APAC declined due to acontinued weak Swine segment and Covid-19 lock-downs in China. Supply chain
constraints impacted both EMEA and APAC negatively. Region EMEA had flat development.
Price increases contributed to approximately +10% of the organic growth in the quarter.

45%

29%
AmericasJanuary-June 2022
Net sales in the first six months increased by +38% (an organic growth of +21%, acquisitions
and divestments +4% and currency effects +12%), mainly driven by the Industrial segment in
Americas and EMEA, the Battery sub-segment in APAC as well as Service in Americas in
AirTech. DCT had good growth in EMEA, offset by a decline in Americas. FoodTech grew in
Americas with a flat development in EMEA. Net sales in APAC declined due to Covid-19
related lockdowns and a continued weak swine market in China. Service net sales amounted
to 14% of total net sales.

6,000

1,500

EMEA

APAC

Quarterly gross margin, %
40%

35%

Results

30%

Adjusted EBITA excludes Items Affecting Comparability, IAC, see page 19 for disclosure of
the IACs.

20%

April-June 2022

Quarterly adjusted EBITDA
margin, %The gross margin amounted to 28.5% (34.7). The net price increase was offset by increasing
work to secure components and to manage lead times in all business areas, a changed
business mix in DCT, lower volumes in EMEA and APAC for FoodTech and operational
challenges.
Adjusted EBITDA amounted to MSEK 332 (311), corresponding to an adjusted EBITDAmargin of 12.7% (17.1). Depreciation of tangible assets amounted to MSEK -60 (-53),
whereof depreciation of leased assets was MSEK -30 (-26).
Adjusted EBITA amounted to MSEK 272 (259), corresponding to an adjusted EBITA-marginof 10.4% (14.2).

25%
Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2
20
21
22

20%
15%
10%
5%
0%

Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2
20
21
22

Quarterly adjusted EBITA
margin, %20%
15%

Adjusted EBITA for business area AirTech amounted to MSEK 242 (177), corresponding toan adjusted EBITA-margin of 14.1% (16.2). Our price increases compensated for inflationarypressure. Amplified component shortages in the quarter led to more work to manage leadtimes. The operational challenges in a production unit, that started in the fourth quarter lastyear, continued to have a negative impact on the margin.
Adjusted EBITA for business area DCT amounted to MSEK 18 (28), corresponding to an
adjusted EBITA-margin of 5.9% (15.9). Increasing work related to component shortages in
the quarter led to increased lead times and increased costs. Also, the business mix changedin the quarter.
Adjusted EBITA in business area FoodTech was MSEK 50 (80), corresponding to an
adjusted EBITA-margin of 8.4% (14.1). The margin declined partly due to lower volumes in
China as well as continued investments in Digital Solutions. Also, the war in Ukraine has led
to uncertainties on the market and resulted in lower volumes in EMEA. This has led tooperational challenges in a production unit that had a negative impact on the margin.

Interim report April-June 2022

10%
5%
0%
Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2
20
21
22

Quarterly EBIT margin , %
20%
15%
10%
5%
0%
Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2
20
21
22

4

Adjusted EBITA for Corporate amounted to MSEK -39 (-26). Enhanced investments into
digitization and automation to create a scalable business to capture growth led to higher
costs. Investments will continue to increase and in the second half of this year, theimplementation of a Human Capital Management system will intensify.
Operating profit (EBIT) was MSEK 220 (147), corresponding to an operating margin of
8.4% (8.0). Amortization and write-downs of intangible assets in the second quarter were
MSEK -24 (-21), where MSEK -9 (-7) related to amortization of intangible assets fromacquisitions.

January-June 2022
The gross margin for the first six months was 28.8% (34.1). Net price increases were offset byincreasing work to manage lead times, a changed business mix in DCT and lower net salesin APAC and EMEA for FoodTech. Also, a production unit in AirTech continued to experience
operational challenges which had a negative impact on the margin.
Adjusted EBITDA at MSEK 592 (561), corresponding to an adjusted EBITDA-margin of
12.5% (16.3). Depreciation of tangible assets amounted to MSEK -119 (-105), whereof
depreciation of leased assets was MSEK -58 (-52).
Adjusted EBITA at MSEK 473 (457), corresponding to an adjusted EBITA-margin of 10.0%(13.3).
Operating profit (EBIT) was MSEK 354 (369), corresponding to an operating margin of
7.5% (10.7). Amortization and write-downs of intangible assets for the first six months was
MSEK -47 (-38), where MSEK -18 (-14) related to amortization of intangible assets fromacquisitions.

Items affecting comparability (IAC)
Items affecting comparability totaled MSEK -28 (-91) in the second quarter of which costs
related to the on-going strategy implementations in mainly AirTech and FoodTech amounted
to MSEK -16 (-89). In addition, IACs of MSEK -9 were recorded in the quarter as aconsequence of Munters having stopped all business activities in Russia.
For the first six months IACs totaled MSEK -72 (-50) including strategy implementation costsof MSEK -44 (-101). IACs related to close-down of business activities in Russia amounted to
MSEK -27 and include mainly costs for write-down of inventory and right-sizing severance
provisions. No additional IACs related to Russia are expected. In addition, other IAC of
MSEK -1 (51) were recorded in the first six months.

Financial items
Financial income and expenses for the second quarter amounted to MSEK -14 (-25).
Foreign exchange rate effects have had a positive impact as the SEK has weakened against
several currencies, offset by increasing interest expenses compared to last year. Interest
expenses grew due to increasing loans and interest rates. Interest expense on lease liabilities
amounts to MSEK -4 (-4) in the second quarter.
Financial income and expenses for the first six months amounted to MSEK -37 (-50). Interest
expense on lease liabilities amounts to MSEK -7 (-8) in the first six months. The average
weighted interest rate including fees per end of June was 3.6% (2.1).

Taxes

Tax rate LTM, %Income taxes for the second quarter was MSEK -39 (-37). The effective tax rate in thesecond quarter was 19% (31). Income taxes for the first six months was MSEK -49 (-75). The
effective tax rate for the first six months was 15% (24).

20%

30%

10%
0%
Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2
20
21
22

The lower effective tax rate is mainly driven by tax related to previous years and a revaluation
effect on deferred taxes in Sweden.

Earnings per share
Net income attributable to Parent Company’s ordinary shareholders amounted to
MSEK 169 (83) for the second quarter. Earnings per share, before dilution, in the second
quarter 2022 was SEK 0.93 (0.46). Earnings per share, after dilution, in the second quarter
2022 was SEK 0.93 (0.45).

Interim report April-June 2022

Quarterly EPS, SEK
1.5
1.0
0.5
0.0
Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2
20
21
22

5

The average number of outstanding ordinary shares in the second quarter, for the purpose of
calculating earnings per share, was 181,616,912 before dilution and 181,760,257 after
dilution.

Financial position
Interest-bearing liabilities, including lease liabilities, increased by MSEK 268 in the quarterand amounted to MSEK 3,468 (2,629). Cash and cash equivalents decreased by MSEK
106 in the quarter and amounted to MSEK 459 (680) as of June 30.
Munters primary financing facilities consists of a term loan of MUSD 165 and a Revolving
Credit Facility (RCF) of MEUR 250 with final maturity date in June 2026. The facilities are
granted by a group of six banks and have no mandatory amortization requirement. Since
November 2021 Munters has linked sustainability targets to the loan facilities to support theambition for an environmentally and socially sustainable growth. The primary financing
facilities have one financial covenant, consolidated net debt in relation to adjusted EBITDA,
with some adjustments made in accordance with the loan agreement. The accounting
standard for leases, IFRS 16, does not affect the covenant calculation according to the loan
agreement definition and neither does the net pension liability.

Net debt per quarter
4,000

Net debt in relation to Adjusted EBITDA was 2.9x compared to 2.6x at end of March 2022
and 2.2x at the end of December 2021. The leverage ratio increased as a consequence ofbuild-up of working capital because of the strong growth in order intake, the acquisition of
Edpac funded by debt, dividend pay-out and a negative impact from exchange rates, mainly
in SEK to USD.

2.5

3,000

2.0

2,000

1.5
1.0

1,000

0.5

0

Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2
21
20
22

Munters also has a backup facility of MSEK 750 maturing in 2023 which is secured by aguarantee from EKN (The Swedish Export Credit Agency).
Net debt as of June 30 amounted to MSEK 3,241 compared to 2,938 at the end of March2022 and MSEK 2,389 at the end of December 2021.

3.0

Quarter

Leverage

ROCE, %
15%
10%
5%
0%
Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2
20
21
22

At quarter end the term loan facility of MUSD 165 was fully drawn. Of the RCF of MEUR
250 an amount of MEUR 132 (86) was utilized in EUR and SEK. Unutilized of the RCF as ofJune 30 amounted to MEUR 118 (164). Along with the primary loan facilities, an amount of
MSEK 26 (5) in local debt is outstanding in i.e. Ireland, Brazil, and India. The backup facility
with EKN was unutilized.
Average capital employed for the last twelve months was MSEK 7,699 (7,042). Return on
capital employed (ROCE) for last twelve months was 9.6% (12.2). Adjusted ROCE where
EBIT plus financial income is adjusted for items affecting comparability (IAC) and average
capital employed adjusted for goodwill, for the last twelve months was 25.1% (30.0). ROCE
decreased mainly because of a slightly higher capital employed and a reduced operating
margin.

Cash flow
Cash flow from operating activities amounted to MSEK 105 (159) in the second quarter and
MSEK 79 (247) for the first six months of 2022. The lower cash flow is due to a lower levelof operating earnings compared to 2021, as well as a negative impact from working capital.
Cash flow from changes in working capital had a negative impact of MSEK -101 (39) in thesecond quarter and a negative impact of MSEK -303 (-99) for the first six months of 2022.
The negative effect both in the quarter and in the first six months of 2022 is mainly driven by
the strong order intake growth leading to increased inventory levels and accrued income,partly offset by increased advances from customers.
Total cash flow for the second quarter amounted to MSEK -115 (-233) and MSEK -235(-304) for the first six months of 2022. The total cash flow for the first six months were
impacted by acquisitions of MSEK -302, dividend payment in May 2022 of MSEK -156,
whereof MSEK 2 to and external minority in one of the subsidiaries and increased externalborrowing of MSEK 436.

Parent company
The parent company for the Group is Munters Group AB. The parent company does notengage in sales of goods and services to external customers. Cash and cash equivalents at
the end of the period amounted to MSEK 0 (2).

Interim report April-June 2022

6

AirTechBusiness area AirTech is a global leader in energy-efficient air treatment for industrial andcommercial applications. We offer solutions for mission-critical processes that require exact
control of moisture and temperature, with a focus on energy-efficiency and sustainableclimate systems. Our climate systems also provide better indoor air quality and comfort, as
well as increased production capacity.

Quarterly net sales - AirTech,(MSEK)
2,000

6,000

1,600

5,000
4,000

1,200

Q2

LTM Full-year

Jan-Jun

MSEK

2022

2021

∆%

2022

2021

∆%

Jul-Jun2021

External order backlog

3,204

1,998

60

3,204

1,998

60

3,204

2,796

Order intake
GrowthNet sales
Growthof which organic growthof which acq. and div.
of which currency effects
Operating profit (EBIT)*
Amortization of intang. asset
Items affecting comparability
Re-allocation of int. services
Adjusted EBITA
Adjusted EBITA margin, %

1,727
31%
1,723
58%
43%
15%
228
-6
-9
242
14.1

1,315
31%
1,088
8%

31

2,589
22%
2,102
5%

28

6,557
34%
5,694
35%

5,842
31%
4,664
13%

158
-5
-14
177
16.2

45

3,305
28%
3,133
49%
36%
13%
409
-11
-22
-1
442
14.1

306
-11
-20
336
16.0

34

739
-22
-13
-13
788
13.8

635
-22
-11
-12
682
14.6

58

37

49

32

*A reclassification in regards to amortization has been made between the business areas in periods prior to Q1-22 impacting
EBIT.

3,000
800

2,000

400

1,000

0

0
Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2
20
21
22

Quarter

LTM

Quarterly adjusted EBITA
margin % - AirTech,
20%

20%

15%

15%

10%

10%

5%

5%

0%

0%
Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2
21
22
20

Quarter

LTM

Data Center Technologies
Data Center Technologies (DCT) is a leading supplier of advanced climate cooling solutions
using a wide range of heat rejection technologies. Our solutions produce significant energy
savings for data centers compared with traditional cooling solutions. With a diversified
product portfolio and extensive application knowledge, we create sustainable climate
solutions for data center operators worldwide. In the first quarter of 2022 Edpac was
acquired, an Ireland-based manufacturer of data center cooling equipment and air handlingsystems. The acquisition strengthens the presence in Europe.

Quarterly net sales - DCT,(MSEK)
400

1,000

350

800

300
250

600

200
400

150
100

200

50

Q2

Jan-JunLTM Full-year

MSEK

2022

2021

∆%

2022

2021

∆%

Jul-Jun2021

External order backlog

3,369

319

955

3,369

319

955

3,369

703

Order intake
GrowthNet sales
Growthof which organic growthof which acq. and div.
of which currency effects
Operating profit (EBIT)*
Amortization of intang. asset
Items affecting comparability
Re-allocation of int. services
Adjusted EBITA
Adjusted EBITA margin, %

939
421%
303
72%
10%
39%
23%
13
-5
-0
18
5.9

180
-21%
177
-10%

421

2,809
621%
523
46%
-13%
41%
18%
22
-10
8
24
4.6

389 621
-13%
357
46
7%

3,471
481%
868
3%

1,051
60%
702
-15%

Interim report April-June 2022

24
-2
-2
28
15.9

72

-46

-36

0

0
Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2
20
21
22

Quarter

LTM

Quarterly adjusted EBITA
margin % - DCT
20%

16%
14%

15%

12%
10%

10%

104
-4
59
49
13.8

-79

-51

66
-14
11
1
67
7.7

148
-8
62
1
92
13.2

8%
6%

5%

4%

0%

0%

2%

Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2
2021
22QuarterLTM

7FoodTechBusiness 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 andoptimizing the entire food production value chain. Our solutions increase productivity while
contributing to sustainable food production, where strict requirements are placed on quality,
animal health and food safety.

Quarterly net sales - FoodTech,(MSEK)
700

2,500

600

2,000

500

Q2
MSEK
External order backlog
Order intake
GrowthNet sales
Growthof which organic growthof which currency effects
Operating profit (EBIT)*
Amortization of intang. asset
Items affecting comparability
Re-allocation of int. services
Adjusted EBITA
Adjusted EBITA margin, %LTM Full-year

Jan-Jun

400

1,500

300

1,000

2022

2021

∆%

2022

2021

∆%

Jul-Jun

2021

942

700

35

942

700

35

942

700

100

2,262
4%
2,139
2%

2,166
-1%
2,028
-5%

0

47
-42
-71
-2
163
7.6

71
-40
-97
-2
210
10.4

554
-13%
599
6%
-5%
10%
22
-12
-16
50
8.4

636
-3%
567
-1%

-13
6

-8 -364-13-75
80 -37
14.1

1,252
8%
1,104
11%
2%
10%
-3
-24
-50
72
6.5

1,156
-1%
992
-3%

8
11

21 -114-22-76
119 -40
12.0*A reclassification in regards to amortization has been made between the business areas in periods prior to Q1-22 impacting
EBIT.

200

500
0
Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2
20
21
22

Quarter

LTM

Quarterly adjusted EBITA
margin % - FoodTech
20%

20%

15%

15%

10%

10%

5%

5%
0%

0%
Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2
20
21
22

Quarter

LTM

Corporate
The Corporate function reported an EBITA of MSEK -39 (-26) in the second quarter.
Corporate staff functions as well as minority investments are accounted for within Corporate.
The increase was mainly due to expansion of corporate staff functions focusing on work withstreamlining and digitalization ways of working. To further enhance Munters strategic journey
we have started to make financial investments in start-ups with the aim to support innovation
for the group within digitalization, technology, and sustainability. In the first six months 2022,
one minority investments was made in the digital space.

Interim report April-June 2022

8

Employees
The number of permanent FTEs (Full Time Equivalents), at June 30, 2022 was 3,654 (3,274).
The amount of FTEs at June 30, 2022 in business area AirTech was 2,403 (2,184), in DCT
340 (193), in FoodTech 826 (813) and at Group functions 85 (84). The increase in DCT ismainly explained by the acquisition of Edpac which contributed with about 150 employees.

Outstanding shares
As of June 30, 2022, Munters held 2,804,611 treasury shares of the total outstanding
shares of 184,457,817.

Ten largest shareholders

Dividend

As of 30 Jun
Total (%)
FAM AB
28.0
ODIN Funds
9.0
Forth Swedish National
7.9
Pension FundFirst Swedish National
7.2
Pension Fund
Swedbank Robur Fund
3.9
Columbia Threadneedle
3.2
La Financière de l'Echiquier
2.7
C WorldWide Asset
2.6
Management
Vanguard
2.0
Capital Group
1.5
Source: Monitor

A dividend of SEK 0.85 (0.70) per share was paid in May 2022, in total MSEK 154 (127).
This represented 30 per cent of the net income 2021.

Other events during the quarter
Webinar focused on Data Centers – On May 16 Investor Relations hosted a webinar
focused on the Data Center cooling market, a prioritized growth market for Munters. The
webinar provided an overview of the market as well as Munters strategy and operations. The
event is available for viewing on-demand on Munters Investor Relations website.
Henrik Teiwik appointed President Business Area AirTech – On May 11 it wasannounced that Henrik Teiwik has been appointed Group Vice President and President forbusiness area AirTech and will join Munters’ management team. Henrik has extensive
leadership experience as CEO of Handicare Group and before that as Vice President at
Alimak Group. Those roles included an IPO process, M&A processes, board assignments aswell as other areas. He has previously held anumber of highly qualified positions such as
Associate Principal at McKinsey & Company, mainly
focused on the industrial sector, with broadinternational experience. Henrik has lived in the US,
Germany and Australia and has worked globally.
He has a Master of Science in Business
Administration from the Stockholm School of
Economics. Henrik will assume his position on 15
August 2022.
Annual general meeting 2022 - The annual general meeting was held on Wednesday,
May 18. The Annual General Meeting was held without the physical presence ofshareholders, representatives or third parties. More information around main resolutions
made at the Annual General Meeting can be found on www.munters.com.
New business area Data Center Technologies – On May 25 an organizational change
was announced, Data Center Technologies becomes a new business area. Data centers isa prioritized and growing market segment for Munters, which has achieved high traction andstrong growth. Our data center solutions, technologies and customer projects are specialized
for the segment and will benefit from increased focus in the organization. The change also
aims to decentralize business responsibility and simplify the way we work. Stefan Aspman,currently Group Vice President and Head of Commercial Excellence and Strategic
Marketing at Munters, has been appointed President of business area Data Center
Technologies. Initially, Stefan will combine this new role with his current assignment. With theorganizational changes, Munters will have three business areas: AirTech, FoodTech andData Center Technologies. Like the other business areas, Data Center Technologies will be
responsible for its own profit and loss and the full value chain to enable profitable growth.

Events after the close of the period
No major events occurred after the close of the period.

Interim report April-June 2022

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

Purpose– >30 countries with sales and manufacturing

Curiosity and a drive to create pioneering
technologies are part of our DNA. Our climate
solutions are mission-critical to our customers’
success and contribute to a more sustainable
planet.

– ~3,700 employees (FTEs)– 18 production units– 23% women in management– Three business areas: AirTech, Data Center
Technologies and FoodTech

For customer success and a healthier planet

In 2021, AirTech generated 63%, Data
Center Technologies 10% and FoodTech 27%of the total net sales of Munters

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 our goals. 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 want to achieve. Sustainability is a priority issue reflected inevery strategic priority.
People:Employees are the hub of our business and their safety and health isa priority. Diversity and inclusion are important to us, since we areconvinced that diversity leads to stronger innovation. Throughcollaboration and a passion for creating energy-efficient solutions
for our customers and partners, we contribute to our customers’
success and a better world

Customers:

We help our customers succeed by supplying high-quality climate solutions that make themmore sustainable. Our success is built on close, long-term relationships and a deep understanding of thecustomer’s business and future needs. Our strategy is to continue to build customer insight and utilize ourbroadbased 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 stayat the forefront of the industry’s development and contribute to sustainable development through our energyand resource-efficient climate solutions. We continue to invest in our core technologies, solutions anddigitization 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 high-quality, resource-efficient solutions and a conscious effort
to re-duce our own climate impact, we contribute to sustainable development.

Excellence ineverything wedo:

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 the workplace

Interim report April-June 2022

10

Quarterly overview Group
Income Statement
2022
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

2020

2021

Q2

Q1

Q4

Q3

Q2

Q1

Q4

Q3

Q2

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

6,367
4,133
2,121
260
-59
201
-9
-14
-44
134
-23
-10
102
104

4,198
2,605
2,057
274
-56
217
-8
-10
-9
190
-14
-43
133
133

3,525
2,295
1,857
270
-55
215
-8
-10
-3
194
-20
-35
138
138

3,018
2,118
1,822
311
-53
259
-7
-14
-91
147
-25
-37
84
83

2,769
1,995
1,612
250
-52
198
-7
-10
41
222
-25
-38
160
160

2,253
1,611
1,841
300
-55
245
-8
-8
22
250
-45
-33
172
169

2,664
1,919
1,833
326
-55
271
-10
-20
4
245
-30
-51
163
161

2,660
1,870
1,773
313
-53
260
-10
-10
-138
103
-50
-13
39
39

Key performance indicators
2022
MSEK
Organic Growth, Net Sales
Adjusted EBITA margin, %Operating margin, %Earnings per share before dilution, SEK
Earnings per share before after, SEK
Net Debt/Adjusted EBITDA, LTM

Q2
25%
10.4
8.4
0.93
0.93
2.9

2021
Q1
16%
9.5
6.3
0.57
0.57
2.6

Q4
10%
10.6
9.2
0.73
0.73
2.2

Q3
3%
11.6
10.5
0.75
0.75
2.2

2020
Q2
13%
14.2
8.0
0.46
0.45
1.9

Q1
14%
12.3
13.8
0.88
0.87
1.9

Q4
8%
13.3
13.6
0.93
0.93
1.9

Q3
8%
14.8
13.3
0.89
0.89
2.5

Q2
-6%
14.7
5.8
0.21
0.21
2.7

Net Debt
2022
MSEK
Cash and cash equivalents
Interest-bearing liabilities
Lease liabilities
Provisions for pensions
Accrued financial expenses
Net Debt

Interim report April-June 2022

2021

2020

Q2

Q1

Q4

Q3

Q2

Q1

Q4

Q3

Q2

-459
3 101
367
226
6
3 241

-565
2 830
370
298
5
2 938

-674
2 374
376
308
5
2 389

-440
2 324
369
279
4
2 536

-680
2 263
366
255
4
2 209

-916
2 491
362
261
10
2 208

-970
2 455
332
291
9
2 116

-790
2 822
366
288
9
2 694

-827
3 063
378
270
12
2 895

11

Condensed statement of comprehensive income
Q2

Jan-JunLTM

Full-year

MSEK

2022

2021

2022

2021

Jul-Jun2021

Net sales
Cost of goods sold
Gross profit

2,610-1,865745

1,822-1,190632

4,731-3,3671,364

3,434-2,265
1,170

8,645-6,096
2,548

7,348-4,994
2,354

Selling expenses

-263

-217

-501

-408

-938

-844

Administrative costs
Research and development costs
Other operating income and expenses
Operating profit

-198
-52
-12
220

-141
-40
-88
147

-361
-110
-37
354

-276
-77
-40
369

-641
-195
-36
738

-556
-162
-39
753

Financial income and expenses

-14

-25

-37

-50

-71

-84

Profit/Loss after financial items

205

121

317

319

667

668

Tax
Net income for the period

-39
166

-37
84

-49
268

-75
244

-127
540

-153
515

Attributable to Parent Company shareholders

169

83

274

243

544

513

Attributable to non-controlling interests

-3

1

-5

1

-4

3

181,616,912

182,016,452

181,613,506

181,968,367

182,023,757

182,207,520

181,760,257

182,798,778

181,781,139

182,701,021

182,266,620

182,548,017

0.93
0.93

0.46
0.45

1.51
1.51

1.33
1.33

2.99
2.98

2.81
2.81

292

-62

354

99

522

268

Actuarial gains and losses on defined-benefit pension obligations,incl. payroll tax
Income tax effect not to be reclassified to profit or loss
Other comprehensive income, net after tax

74
-15
350

8
-1
-55

87
-18
423

44
-9
134

40
-9
553

-3
-0
264

Total comprehensive income for the period

517

29

691

378

1,093

779

Attributable to Parent Company shareholders
Attributable to non-controlling interests

519
-3

28
1

697
-6

377
0

1,098
-6

779
1

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 April-June 202212

Condensed statement of financial position
MSEK

2022-06-30

2021-06-30

2021-12-31

4,855
1,889
282
478
196
130
21
292
8,143

4,063
1,457
238
469
164
60
19
263
6,733

4,248
1,586
239
469
185
78
20
278
7,103

Raw materials and consumables
Products in process
Finished products and goods for resale
Projects in progress
Advances to suppliers
Accounts receivable
Prepaid expenses and accrued income
Derivative instruments
Current tax assets
Other receivables
Cash and cash equivalents
Total current assets

707
292
456
27
39
1,526
817
3
74
98
459
4,499

435
165
284
13
9
1,028
473
0
39
64
680
3,189

532
170
347
11
12
1,394
368
1
52
78
674
3,639

TOTAL ASSETS

12,641

9,922

10,742ASSETSNON-CURRENT ASSETS
Goodwill
Patents, licenses, brands, and similar rights
Buildings and land
Plant and machinery
Equipment, tools, fixtures and fittings
Construction in progress
Financial assets
Deferred tax assets
Total non-current assets
CURRENT ASSETSInterim report April-June 202213

Condensed statement of financial position
MSEK

2022-06-30

2021-06-30

2021-12-31

Shareholders' equity

4,898

4,029

4,360

Non-controlling interests
Total equity

2
4,901

4
4,034

3
4,363

3,340
248
46
157
438
4,230

2,532
266
47
139
381
3,365

2,636
324
41
140
405
3,546

Interest-bearing liabilities
Advances from customers
Accounts payable
Accrued expenses and deferred income
Derivative instruments
Current tax liabilities
Other liabilities
Provisions for pensions and similar commitments
Other provisions
Total current liabilities

128
1,105
910
1,039
1
36
119
4
168
3,511

97
623
662
767
−
40
93
9
232
2,523

114
648
771
998
−
40
100
9
153
2,833

TOTAL EQUITY AND LIABILITIES

12,641

9,922

10,7422022-06-30

2021-06-30

2021-12-31

Opening balance
Total comprehensive income for the period
Exercised share options
Change in non-controlling interest
Put/call option related to non controlling interests
Dividends paid
Repurchase of shares
Share option plan incl. deferred tax
Other
Closing balance

4,363
691
4
−
−
-156
−
-1
−
4,901

3,751
378
32
−
-2
-129
−
4
−
4,034

3,751
779
40
-1
-4
-129
-69
-5
1
4,363

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

4,898
2

4,029
4

4,360
3

EQUITY AND LIABILITIESEQUITYNON-CURRENT LIABILITIESInterest-bearing liabilities
Provisions for pensions and similar commitments
Other provisions
Other liabilities
Deferred tax liabilities
Total non-current liabilities
CURRENT LIABILITIESCondensed statement of changes in equity
MSEK

Interim report April-June 2022

14

Condensed cash flow statement
Q2

Jan-JunLTM

Full-year

2022

2021

2022

2021

Jul-Jun

2021

Operating profit
Reversal of non-cash items
Depreciation, amortization and impairments
Other profit/loss items not affecting liquidity
Change in provisions
Provisions
Cash flow before interest and tax

220

147

354

369

738

753

85
-2

74
8

166
-8

143
2

326
5

303
16

-4
298

-2
227

6
519

-8
506

-83
987

-97
974

Paid financial items

-11

-50

-30

-70

-59

-99

Taxes paid
Cash flow from operating activites before changes in working
capital

-82

-58

-107

-91

-196

-181

206

119

382

345

731

694

Cash flow from changes in working capital

-101

39

-303

-99

-379

-175

Cash flow from operating activities

105

159

79

247

352

519

-2
0
-0
-49
-74
-125

0
-36
-67
-102

-302
-3
1
-89
-149
-542

1
-58
-103
-160

-302
-3
1
-169
-250
-722

2
-138
-204
-341

Exercised share options
Loan raised
Amortization of loans
Repayment of lease liabilities
Repurchase of shares
Dividends paid
Cash flow from financing activities

2
205
-117
-29
-156
-95

32
574
-742
-24
-129
-289

4
785
-349
-56
-156
228

32
598
-841
-50
-129
-391

12
2,498
-2,058
-111
-69
-156
116

40
2,311
-2,550
-105
-69
-129
-503

Cash flow for the period

-115

-233

-235

-304

-255

-324

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

565
9
459

916
-3
680

674
20
459

970
14
680

680
34
459

970
28
674

MSEK
OPERATING ACTIVITIESINVESTING ACTIVITIESBusiness acquisitions
Investments in participations and securities in other companies
Sale of tangible fixed assets
Investment in tangible assets
Investment in intangible assets
Cash flow from investing activities
FINANCING ACTIVITIESInterim report April-June 2022

15

Parent company
Condensed income statement
Q2
MSEK

Jan-JunLTM

Full-year

2022

2021

2022

2021

Jul-Jun

2021

−
0
-2
-0
-2

−
−
-4
0
-4

−
0
-4
1
-3

−
−
-4
-1
-6

−
0
-11
13
2

−
−
-12
11
0

Financial income and expenses

-1

-0

-1

0

-2

-1

Profit/Loss after financial items

-2

-4

-4

-6

0

-1

Net sales
Gross profit/loss
Administrative costs
Other operating expenses
Profit/Loss before interest and tax (EBIT)Group contributions

−

−

−

−

8

8

Profit/Loss before tax

-2

-4

-4

-6

9

7

Tax

−

-0

0

−

1

1

Net income for the period

-2

-4

-4

-6

10

8

Condensed statement of comprehensive income
Q2
MSEK
Profit/Loss for the period
Other comprehensive income, net after tax
Comprehensive income for the period

Interim report April-June 2022

Jan-JunLTM

Full-year

2022

2021

2022

2021

Jul-Jun

2021

-2
−
-2

-4
−
-4

-4
−
-4

-6
−
-6

10
−
10

8
−
8

16

Parent company
Condensed balance sheet
MSEK

2022-06-30

2021-06-30

2021-12-31

4,096
3
4,099

4,103
4
4,108

4,094
5
4,100

1
1
18
−
20

1
1
33
2
37

1
1
13
0
15

4,119

4,144

4,115

2022-06-30

2021-06-30

2021-12-31

6
4,136
-270
-4
3,867

6
4,135
-61
-6
4,074

6
4,136
-128
8
4,022

2
2

2
2

2
2

7
13
224
5
250

7
16
43
3
68

3
18
65
4
91

4,119

4,144

4,115

ASSETSNON-CURRENT ASSETS
Participations in subsidiaries
Other financial assets
Total non-current assets
CURRENT ASSETS
Prepaid expenses and accrued income
Current tax assets
Receivables from subsidiaries
Cash and cash equivalents
Total current assets
TOTAL ASSETSMSEKEQUITY 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
CURRENT LIABILITIES
Accounts payable
Accrued expenses and deferred income
Liabilities to subsidiaries
Other liabilities
Total current liabilities
TOTAL EQUITY AND LIABILITIESInterim report April-June 2022

17

Other disclosures
Accounting policies
This report has been prepared, with regards to the Group, in
accordance with IAS 34 Interim Financial Reporting,recommendation RFR 1 of the Swedish Financial Reporting Boardand the Swedish Annual Accounts Act and, with regards to the
Parent Company, in accordance with recommendation RFR 2 of theSwedish Financial Reporting Board and the Swedish Annual
Accounts Act. The accounting principles applied correspond to thosepresented in the Annual- and Sustainability report 2021 (Note 1).

Environmental impact and environmental
policyMunters’ operations affect the external environment through air andwater 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 theenvironmental impact of its operations. Munters is committed tocomplying with all laws and to continuously promoting improvements
in all Environment, Health & Safety (EHS) aspects, wherever Muntersconducts business. Munters constantly seeks opportunities to reducerisk and to create a safer, healthier, more diverse and moreenvironmentally 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 toensure regulatory compliance, actively prevent injuries, and reducethe 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 these categories, there are both risks due to political andmacroeconomic trends and specific risks directly linked to thebusiness carried out by the Group. A risk assessment is carried out onan annual basis and the purpose is to identify and address the mostimportant risks.
Munters’ products are used in complex customer processes. Quality
and contract obligations are critical and could result in claims fordamages. The Group depends to some extent on key customers andkey personnel. Considering that Munters is a company withgeographically widespread operations and many smallorganizational units, there is a risk of failure to comply with relevant
regulations in the business ethics area, e.g. anti-bribery rules.

The direct financial impacts of leaving the Russian market totals
MSEK -27 and has been recorded as items affecting comparability
in the first half of 2022.
The indirect effects seen from the war are mainly related to material
prices and logistics. For example, in general material prices haveincreased and some logistical routes have been cut off in Asia andEurope.
A more detailed description of the Group’s risks and how they are
managed can be found in the Annual- and Sustainability report 2021 on
pages 54-58.

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

Fair value of financial instruments
MSEK
Opening balance
Discounting
Exchange-rate differences
Closing balance2022-06-30

2021-06-30

2021-12-31

137
−
18
155

121
2
5
127

121
4
13
137

The Group’s derivatives, recognized at fair value in the statement offinancial position, are measured according to IFRS 9 and are
categorized as level 2 in the fair value hierarchy. The derivatives
amounted to MSEK 3 (0) in financial assets and to MSEK 1 (0) in
financial liabilities. The Group’s put/call acquisition option,
recognized at fair value in the statement of financial position, ismeasured according to IFRS 9 and is categorized in level 3 in thefair value hierarchy. The opening balance for the period relates tothe put/call option from the acquisition of MTech Systems in 2017,
which is based on EBITDA for the 12 months prior to execution andmatures in January 2023. The change in the period relates to a
currency translations on the put/call option.
Munters deems that the interest rate on interest-bearing liabilities arein line with market terms at June 30, 2022, and the fair value at theend of the reporting period therefore in all material aspects
corresponds to the carrying amount.

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 forexample coverage for general liability and product liability,
property, business interruption, transportation, the liability of Board
members and the CEO and employment practices liabilities.
During 2022 the lingering Covid-19 pandemic led to continued
supply chain challenges especially in region APAC and China.
As a consequence of the war in Ukraine, Munters have stopped allbusiness activities in Russia. Annualized net sales in Russia accounted
for approx. 1.5 per cent of total Group net sales and Munters had
no employees in the area.

Interim report April-June 2022

18

Allocation of net sales

customers such as installation, commissioning, startup andmaintenance. Net sales from services are recognized over time asthese services are performed. The services transferred over time in thematrix below is not equivalent to the net sales from Services
mentioned on the business segment pages earlier in this interim
report. This is due to the fact that part of the net sales within Services
are recognized at a point in time, such as spare parts.

The majority of customer contracts within business areas AirTech andFoodTech fulfill the requirements to recognize net sales at a point intime while within DCT net sales from most customer contracts is
recognized over time, as reflected in the below matrix. In addition tounit/equipment sales, Munters provides different kinds of services to

Q2 2022
MSEK
Goods transferred at a point in time
Goods transferred over time
Services transferred over time
Total net sales

AirTech
1,248
320
153
1,722

DCT
60
234
9
303

Jan-Jun 2022

FoodTech
515
27
43
585

Total
1,823
581
206
2,610

AirTech
2,348
517
264
3,128

Q2 2021MSEK
Goods transferred at a point in time
Goods transferred over time
Services transferred over time
Total net sales

AirTech
818
163
107
1,087

DCT
4
166
6
177

FoodTech
933
63
84
1,080

Total
3,419
949
364
4,731

Jan-Jun 2021

FoodTech
487
32
39
558

Reconciliation of alternative performancemeasures and items affecting comparability

DCT
138
369
16
523

Total
1,309
361
153
1,822

AirTech
1,596
313
191
2,100

DCT
5
341
11
357

FoodTech
859
46
72
977

Total
2,461
699
274
3,434

A reconciliation of Adjusted EBITDA and Adjusted EBITA is found in
the quarterly overview on page 11 in this interim report.
Items affecting comparability are events or transactions withsignificant financial effects, which are relevant for the understandingof the financial performance when comparing the current period toprevious periods. Items included are for example, restructuring
activities, capital gains and losses from divestments and M&A
related costs as well as costs for other events, such as the Covid-19
pandemic and war in Ukraine, having a significant impact on thecomparability.

The Group presents certain financial metrics in the Interim Report thatare not defined in accordance with IFRS. The Group is of the opinion
that these metrics provide valuable complementary information, inthat they enable an evaluation of the Group’s performance. The
financial metrics are calculated in accordance with the definitions
presented on page 129 in the Annual and Sustainability Report
2021.

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

Q2
MSEK
Restructuring activities
Close down of business activities in Russia
Other items affecting comparability
Summa

Interim report April-June 2022

Jan-JunFull-year

2022

2021

2022

2021

LTM

Jan-Dec

-16
-9
-3
-28

-89
-2
-91

-44
-27
-1
-72

-101
51
-50

-67
-27
10
-84

-124
62
-62

19

Business acquisitions
In January 2022, Munters announced the acquisition of EDPAC, an Irish
manufacturer of cooling equipment for data centers and air treatment
systems, with a purchase price of MEUR 31, approximately MSEK 303.
EDPAC manufactures precision cooling equipment and various air
handling systems and is also a manufacturing partner for Munters Oasis
systems. Sales of Munters products account for approximately seven percent of EDPAC's total revenue. The acquisition adds complementary
products to Munters' existing data center offering and is part of Munters'
strategy to grow in the prioritized data center segment. EDPAC reported
MSEK

net sales amounting to MEUR 17 and an adjusted EBITDA of MEUR 1.7
for the financial year ended April 2021. The company is headquarteredin Carrigaline, Ireland, with two manufacturing facilities in the country
and the number of full-time employees is approximately 150. EDPAC
has a strong customer base with sales mainly in Europe and with asmaller part in the Middle East, South America and Asia. The purchaseprice allocation resulted in surplus values related to customer
relationships of MSEK 55, trademarks of MSEK 11 and a residual
goodwill of MSEK 200. Acquisition related costs including stamp duty
amounted to MSEK 8. Below is a list of paid purchase price andacquired net assets.

2022-06-30

Information about acquired net assets and goodwill
Cash purchase consideration paid
Total purchase consideration
Fair value of acquired net assets
Goodwill

303
303
-103
200

Acquired net assets at time of acquisition
Property, plant and equipment
Customer relationships
Trademarks
Inventory
Accounts receivable
Prepaid expenses and accrued income
Other current assets
Cash and cash equivalents
Total assets
Non-current interest-bearing liabilities
Current interest-bearing liabilities
Other provisions
Accounts payable
Accrued expenses and deferred income
Deferred tax liabilities
Current income tax
Total liabilities

46
55
11
35
71
1
11
1
232
2
50
2
29
35
9
1
129

Net identifiable assets and liabilities

103

Cash purchase consideration paid
Cash and cash equivalents in acquired company
Change in the Group's cash and cash equivalents on acquisition

303
1
-302

Interim report April-June 2022

20

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 andGroup’s operations, their financial position and results of operations, and describes the significant risks and uncertainties facing the Parent
Company and other companies in the Group.

Stockholm, July 15 2022

Magnus Nicolin
Chairman of the Board

Helen Fasth Gillstedt
Board Member

Anna Westerberg
Board Member

Klas Forsström
President & CEO

Maria Håkansson
Board Member

Anders Lindqvist
Board Member

Simon Henriksson
Board Member,
employee representativeHåkan Buskhe
Board Member

Kristian Sildeby
Board Member

Robert Wahlgren
Board Member,
employee representative

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

Interim report April-June 2022

21

Information and reporting
dates
Contact persons:
Ann-Sofi Jönsson
Vice President, Investor Relations and Enterprise Risk Management
Phone: +46 (0)730 251 005
Email: ann-sofi.jonsson@munters.com

You are welcome to join a webcast or telephone conference on
July 15 at 9:00 AM CEST, when President and CEO Klas Forsström,
together with Group Vice President and CFO Annette Kumlien, will
present the report.

Webcasthttps://tv.streamfabriken.com/munters-q2-2022

Conference call

Please, dial-in using one of the numbers below and the pin code:
SE: +46 8 505 163 86
UK: +44 20 319 848884
US: +1 412 317 6300
Pin code: 2556601#

This interim report, presentation material and a link to the webcast will
be available on https://www.munters.com/en/investor-relations/

Financial calendar:
Interim report January-September 2022

October 21, 2022

Investor webinar – focus on Service

September, 2022

Full year report January-December 2022

February 9, 2023

Every care has been taken in the translation of this interim report. In theevent of discrepancies, the Swedish original will supersede the English
translation. The addition of the totals presented may result in minor
rounding differences.

This information is information that Munters Group AB is obliged tomake public pursuant to the EU Market Abuse Regulation and theSwedish Securities Market Act. The information was submitted for
publication, through the agency of the contact person set out above,at 07.30 AM CEST on July 15, 2022.
Munters Group AB, Corp. Reg. No. 556819-2321

Interim report April-June 2022

22