Q1 2024
Profitable growth and strong cash flow
January-March– Order intake increased +32 per cent (+29 organic) with strong growth in all three business areas. AirTech saw
good demand, especially in the battery sub-segment in EMEA. Data Center Technologies (DCT) had a solid
order intake in North America. FoodTech had a positive development, primarily in Americas and EMEA,
slightly offset by APAC.
– Net sales increased +11 per cent (+7 organic), mainly driven by good deliveries on large orders in DCT.
FoodTech had strong growth in Climate solutions in Americas and very strong growth in Digital solutions in
the US. AirTech declined, but with growth in Americas, mainly in the battery sub-segment, offset by weaker
development in APAC and EMEA.
– The adj. EBITA margin improved mainly driven by net sales and price increases in DCT and FoodTech as wellas efficiency improvement efforts in all business areas.
– Earnings per share, before and after dilution, was SEK 1.19 (1.18) in the first quarter.

Net salesorganic growth+7%
Adj. EBITA margin– Cash flow from operating activities improved mainly because of improved earnings and a reduction in
operating working capital. The positive impact on working capital in the quarter was primarily driven bycustomer advances related to DCT in Americas.
– Leverage decreased for the third quarter in a row, from 2.1x at the end of December to 2.0x mainly because ofincreased operating earnings.

14.1%– 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 per cent of net income in 2023. A first instalment of the dividend
was paid out in March.

Operating working
capital/net sales
Q1

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

LTM

2024
3,368
3,538
11%
7%
6%
-2%
412

2023
2,544
3,175
50%
38%
2%
9%
349

Operating margin, %

11.6

11.0

Adjusted EBITA

498

389

Adjusted EBITA margin, %

14.1

12.3

227
1.19
1.19
553
13.6%
4,557
2.0

214
1.18
1.18
-168
12.7%
4,175
2.7

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

Interim report January-March 2024∆% Apr-Mar
32
14,940
11
14,292
25%
18
1,649
28
6

Full-year2023
14,116
13,930
34%
27%
3%
5%
1,586

11.5

11.4

1,947

1,839

13.6

13.2

806
4.32
4.32
1,787
13.6%
4,557
2.0

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

13.6%

1

CEO comments
High demand drives continued strong momentum
I'm pleased to report a very strong first quarter of 2024 for Munters. Demand for our innovative climate
control solutions remains high, driven by powerful trends like digitalization and electrification. This
momentum resulted in another quarter where we achieved significant order intake growth of 32 per cent,driven by robust demand in all business areas.
Within AirTech all segments showed stable order intake in the quarter, with positive development especiallyin the battery sub-segment in EMEA. In DCT order intake increased with very strong underlying demand forenergy-efficient cooling solutions. Americas and EMEA were the main contributors to growth in Climate
solutions within FoodTech, as well as Digital solutions growing the SaaS revenue (ARR) by 68 per cent in thequarter.
As a result of continued good underlying demand and a high pace in customer deliveries, net sales
increased by 11 per cent. This was driven mainly by very strong growth in DCT and FoodTech.
Enhanced profitability and good cash flow resulting in improved leverage
Growth was accompanied by substantial improvement in adjusted EBITA margin, reaching our mid-termtarget of 14 per cent for the second time in a 12-month period, demonstrating the effectiveness of ourstrategic initiatives. This achievement stems from a powerful combination of initiatives to drive profitability
at the same time as we are investing strategically to create a platform for long-term sustainable growth inall business areas.
DCT contributed with a significant margin improvement driven mainly by good customer deliveries onorders announced in previous years. Profitability levels in Digital solutions in FoodTech continued topositively affect the margin. I'm particularly pleased to see the continued recovery and strong developmentof Climate solutions in EMEA this quarter. After a period of challenges, it's encouraging to witness thestrong profitability improvement. This positive momentum is a testament to the hard work and dedication of
our team in FoodTech. The strategic review of FoodTech equipment is moving along according to plan. In
AirTech the margin declined mainly due to lower volumes and increased investments in sustainability,
operational efficiency and innovation.
Cash flow from operating activities was good in the quarter mainly related to an increase of operating
earnings and a positive development of working capital. Leverage improved for the third quarter in a row.
Investing for a sustainable future

Klas Forsström
President and CEO“Strong start to the year. Solidnet sales growth, improved
profitability and very good
cash generation.”

During the quarter we announced the acquisition of Airprotech within AirTech. Airprotech, an Italianmanufacturer of Volatile Organic Compounds (VOC) abatement systems, adds a complementary set oftechnologies and expertise to our portfolio. This strategic move strengthens our position in the Clean
Technologies market and opens up exciting new innovation opportunities. We're confident that the
combined talent and resources positions us to meet the growing demand for abatement services, ie captureand destruction of hazardous compounds.
The strong growth in Data Center Technologies has led us to expand our production capacity in Ireland for
the European offering. The new factory being built in Cork, Ireland expands our footprint, increases
production capacity and positions us well to meet the growing need for innovative and sustainable coolingsolutions.
We remain committed to investing in digitization and automation and as a result we recently launched AirC
Connect, AirTechs new digital platform for remote climate control with features like real-time monitoring forboth desktop and mobile devices. In addition, we are actively investing to accelerate our journey towards
achieving net-zero emissions from our own operations. This commitment to sustainability aligns with ourcore values and the growing expectations of our stakeholders.
I want to express my sincere gratitude to all our dedicated employees. Your hard work and commitment were
instrumental in achieving these impressive results.

Midterm financial targets

Sustainability targets*

Net sales growth:

Annual organic growth of net sales of 10%
Performance Q1 2024: 7% (38)

Renewable
electricity1:

80% by 2026, eventually 100%,
Performance Q1 2024: 78% (79)

Adjusted EBITA
margin:An adjusted EBITA margin above 14%.
Performance Q1 2024: 14.1% (12.3)

TRIR2:

Zero accidents in production
Performance Q1 2024: 1.4 (2.0)

OWC/net sales:

Average (LTM) operating working capital in therange of 13-10 % of net sales.
Performance Q1 2024: 13.6% (12.7)

Women in
workforce:

30% by 2025
Performance Q1 2024: 22% (23)Dividend policy:

Munters aim to pay an annual dividend
corresponding to 30-50% of its consolidated
income after tax for the period.

Womenleaders:

30% by 2025
Performance Q1 2024: 22% (22)Dividend 2024: 30% (SEK 1.30 per share, totaling
MSEK 237) paid in two instalments.

Service share:

Service share 30% of net sales in the long term
Performance Q1 2024: 14% (14)See Munters Annual and Sustainability report (ASR) 2023, pages 61-94, forfurther information on goals and outcome or at www.munters.com. For fulldescription of the dividend policy, see the ASR 2023, page 10 or at
www.munters.com.

Interim report January-March 2024

* Last 12 months
1

In production plants

Total Recordable Incident Rate (number of accidents where theemployee had to seek medical assistance multiplied by
200,000/number of hours worked)
22

Financial performance

Quarterly order intake(MSEK)Q1
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
3,368
2,255
343
786
-16
3,538
1,996
956
596
-10
498
296
181
70
-49
14.1
14.9
19.0
11.7

LTM Full-year
2023
2,544
1,686
293
581
-15
3,175
2,023
653
512
-13
389
323
82
24
-40
12.3
16.0
12.6
4.7

∆% Apr-Mar
32
14,940
34
7,366
17
4,998
35
2,638
-62
11
14,292
-1
8,199
46
3,712
16
2,447
-65
28
1,947
-8
1,252
121
619
186
267
-190
13.6
15.3
16.7
10.9

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
January-March 2024

8,000

20,0006,000

15,0004,000

10,000

2,000

5,000

0

0
Q1
22

Q3

Q1
23
Quarter

Q3

Q1
24
LTM

Order intake per Business Area
Q1, 2024

0%
AirTech 67%

50%
DCT 10%100%
FoodTech 23%

Order intake per region
Q1, 2024

Order intake amounted to MSEK 3,368 (2.544), (organic development of +29%, structural +6%, currency effects-2%), with strong growth in all business areas.
In AirTech order intake was very strong, driven primarily by the battery sub-segment in EMEA. Americas also
showed growth whereas APAC saw a lower level of development. Order intake in DCT was good in the quarter,
mainly in North America. Order intake in FoodTech was strong, primarily driven by Climate solutions in Americas
and EMEA as well as Digital solutions in Americas.
For more information on the order intake, see the business area comments on pages 6, 7 and 8.

Net sales
January-March 2024
Net sales grew to MSEK 3,538 (3,175) (organic growth +7%, structural +6%, currency effects -2%). Good deliveries
on large orders in DCT continued to contribute to strong growth. AirTech had growth in Americas offset byweaker development in APAC and EMEA. Climate solution in Americas grew strongly, offset by a decline in
APAC and a slight decline in EMEA. Service net sales amounted to MSEK 529 (400) representing 15% (13) of total
net sales with an organic growth of +25%.
For more information on the net sales, see the business area comments on pages 6, 7 and 8.

0%
Americas 42%

50%
EMEA 41%100%
APAC 17%

Quarterly net sales,(MSEK)
4,000

16,0003,000

12,000

2,000

8,000

1,000

4,000

0

0
Q1 Q2Q3Q4 Q1 Q2Q3Q4 Q1
2223
24
QuarterLTM

Net sales per Business Area
Q1, 2024

0%
AirTech 56%

50%
DCT 27%

100%
FoodTech 17%

Net sales per region Q1, 2024

0%Americas 65%

Interim report January-March 2024

50%
EMEA 21%100%
APAC 14%3

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

Quarterly gross margin, %35%

January-March 2024

30%

The gross margin amounted to 33.7% (30.4). The margin improved due to strong net sales growth in DCT, net
price increases and positive effects from efficiency improvements.

25%

Adjusted EBITDA amounted to MSEK 582 (462), corresponding to an adjusted EBITDA margin of 16.5% (14.6).
Depreciation of tangible assets amounted to MSEK -84 (-73), whereof depreciation of leased assets was MSEK
-44 (-41).
Adjusted EBITA amounted to MSEK 498 (389), corresponding to an adjusted EBITA margin of 14.1% (12.3). The
margin improved because of net sales and price increases in DCT and FoodTech as well as efficiency
improvement efforts in all business areas.
Adjusted EBITA for Corporate amounted to MSEK -49 (-40).
Operating profit (EBIT) was MSEK 412 (349), corresponding to an operating margin of 11.6% (11.0). Amortizationof intangible assets were MSEK -41 (-34), where MSEK -13 (-12) related to amortization of intangible assets fromacquisitions.

20%
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
22
23
24

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

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

Items affecting comparability (IAC)

Quarterly adjusted EBITA
margin, %Items affecting comparability totaled MSEK -44 (-6) in the first quarter, including costs for restructuring
activities of MSEK -11 (-4) and costs for M&A activities of MSEK -9 (-2). Other IACs totaled MSEK -25 (-) andrelate to costs for the ongoing strategic review of the equipment offering in FoodTech.

20%

Financial items

15%
10%
5%
0%
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
22
23
24

Financial income and expenses for the first quarter amounted to MSEK -87 (-73). Compared to the same period
last year interest expenses have increased due to higher interest rates in combination with increased
outstanding debt. Interest expense on lease liabilities amounts to MSEK -10 (-10) in the first quarter.

Taxes
Income taxes for the first quarter amounted to MSEK -97 (-62). The effective tax rate was 30% (22%) and is in linewith the effective tax rate for the full year 2023 of 30.5%, adjusted for the impairment of deferred tax assets onloss carry-forwards of MSEK 80 recognized in Q4 2023.

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

The effective tax rate is negatively impacted by tax losses not recognized in Sweden and Germany.

Earnings per share
Net income attributable to Parent Company’s shareholders amounted to MSEK 218 (214) in the first quarter. Net
income in the first quarter was mainly negatively impacted by higher interest rate expenses and tax expenses.
Earnings per share, before and after dilution, was SEK 1.19 (1.18) in the first quarter.
The average number of outstanding ordinary shares in the first quarter, for the purpose of calculating earnings
per share, was 182,529,041 before dilution and 182,535,150 after dilution.

Tax rate per quarter, %
90%
75%
60%
45%
30%
15%
0%
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
22
23
24

Quarterly EPS, SEK
1.5
1.0
0.5
0.0
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
22
23
24

Interim report January-March 2024

4

Financial position
Net debt as of March 31 amounted to MSEK 4,557 compared to 4,620 at the end of December 2023 and 4,175 at
the end of March 2023. Net debt in relation to adjusted EBITDA as of March 31 was 2.0x compared to 2.1x at endof December 2023 and 2.7x at the end of March 2023.

Net debt per quarter

Interest-bearing liabilities, including lease liabilities, increased by MSEK 1,294 compared to the same period lastyear and amounted to MSEK 5,846 (4,552). The increase is driven mainly by acquisitions financed through debt
executed during the recent year.

6,000

3.5

5,000

3.0

The Group’s interest-bearing liabilities have an average maturity of 2.5 years. The financing consists primarily of
Revolving Credit Facilities and a term loan. In April 2023, Munters signed a MEUR 100 Revolving Credit facility
designated for M&A purposes. The facility was an 18-month facility with a 6-month extension option. In Q1 2024
the extension option was utilized, extending the facility to Q2 2025.
During the last 12 months Munters has closed acquisitions of the Swedish manufacturer of components, Tobo
components, the French service business SIFT, the acquisition of a majority share in InoBram the Brazilian
manufacturer of controllers and complimentary accessories for the broiler and swine segments and the Indian
air handling equipment company ZECO. In addition, Munters participated in capital increases in three minority
investments and made one new minority investment.

2.5

4,000

2.0

3,000

1.5

2,000

1.0

1,000

0.5

0

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

Quarter

Leverage

Cash and cash equivalents amounted to MSEK 1,581 (618) as of March 31 which is an increase of MSEK 963.
Average capital employed for the last twelve months was MSEK 11,757 (9,715). Return on capital employed(ROCE) for the last twelve months increased to 14.6% (11.6) because of improved operating earnings.

ROCE, %Cash flow

20%

Cash flow from operating activities amounted to MSEK 553 (-168) in the first quarter. The positive cash flow isrelated to an increase of operating earnings and a positive development of working capital compared to lastyear.
Cash flow from changes in working capital had a positive impact of MSEK 215 (-513) in the first quarter. The
positive impact on working capital in the quarter was primarily driven by customer advances related to DCT in
Americas.

15%
10%
5%
0%
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
22
23
24

Total cash flow for the first quarter amounted to MSEK 20 (-295). The total cash flow was impacted byinvestments in tangible and intangible assets of MSEK -173, investments in associated and other companies of
MSEK -59 and payment of dividend to shareholders in March of MSEK -119. Due to a strong cash flow in thequarter, external borrowing decreased with MSEK -164.

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 3 (0).

Interim report January-March 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.

Q1
MSEK
External order backlog
Order intake
GrowthNet sales
Growthof which organic growthof which acq. and div.
of which currency effects
Operating profit (EBIT)LTM Full-year

2024
3,688
2,255
34%
1,996
-1%
-7%
7%
-2%
274

2023
4,341
1,686
7%
2,023
43%
32%
3%
9%
309

∆% Apr-Mar
-15
3,688
34
7,366
-13%
-1
8,199
10%
-11
1,155

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

Operating margin, %

13.7

15.3

14.1

14.5

Amortization of intang. asset
Items affecting comparability
Adjusted EBITA

-11
-12
296

-10
-4
323

-40
-56
1,252

-39
-49
1,278

Adjusted EBITA margin, %

14.9

16.0

15.3

15.5

2,400

10,000

2,000

8,000

1,600

6,000

1,200
4,000

800

2,000

400
0

0
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
2223
24
Quarter
LTM

Quarterly adjusted EBITA
margin % - AirTech
20%

20%

15%

15%

10%

10%

January-March 2024

5%5%

Order intake

0%-8Order intake increased 29% organically, driven primarily by the battery sub-segment in EMEA. Americas
grew, offset by a weaker development in APAC.
• The Industrial segment (excl. battery) showed good development, especially EMEA. Within the battery
sub-segment, EMEA showed very strong growth. In APAC the battery sub-segment was continued
weak, mainly related to consolidation of the battery market in China. The battery market in Americas
continued to be weak mainly as customers are placing orders closer to delivery.
• Through the acquisition of Zeco in 2023, order intake in the Commercial segment in APAC had apositive development. Also, Americas saw good growth.
• Clean Technologies (CT) declined mainly as the first quarter last year included large orders in Americas.
• Components showed good growth in Americas and EMEA, whereas development in APAC was weakerdue to lower component replacements in the Chinese battery market.
• Service increased mainly in Americas. Also EMEA showed growth, offset by a slight decline in APAC.

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

Order intake per region
Q1, 2024 - AirTech0%
Americas 30%

50%
EMEA 48%

100%
APAC 22%Net sales
Net sales decreased -7% organically, with growth in Americas offset by weaker development in APAC and
EMEA. Service accounted for 24% (24) of net sales with an organic increase of +22%.
• The Industrial segment (excl. battery) showed weaker development primarily in Americas whereas thefood sub-segment in EMEA showed growth. The battery sub-segment showed strong growth inAmericas, offset by weak development in EMEA and APAC.
• The Commercial segment showed growth in Americas and APAC offset by a weaker development in
EMEA.
• CT had stable development in APAC, offset by Americas and EMEA were weaker.
• The Components segment developed positively in Americas and EMEA, whereas APAC was weaker.
• The Service segment showed good growth, primarily in Americas.

Net sales per region
Q1, 2024 - AirTech0%
Americas 54%

50%
EMEA 23%100%
APAC 22%

Adjusted EBITA
The adjusted EBITA margin decreased mainly due to lower volumes and increased investments inoperational efficiency and innovation such as R&D competences and capabilities to reach our net-zerotarget.
• Efficiency improvements continued to have a positive impact on the margin, slightly offset by a lower
production utilization rate in EMEA and APAC.

Interim report January-March 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.

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

Q1

LTM Full-year

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

2024
7,003
343
17%
956
46%
47%
-1%
176

2023
5,564
293
-84%
653
197%
173%
24%
77

∆% Apr-Mar
26
7,003
17
4,998
7%
46
3,712
102%
130
597

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

Operating margin, %

18.4

11.7

16.1

14.6

Amortization of intang. asset
Items affecting comparability
Adjusted EBITA

-5
181

-5
82

-22
619

-22
519

19.0

12.6

16.7

15.2

Adjusted EBITA margin, %121January-March 2024
Order intake
Order intake increased +17% organically, with growth mainly in the co-locator segment in Americas.
••

The underlying demand remains very strong, both short-term and long-term driven by factors suchas digitization and the growing demand for energy-efficient cooling solutions.
Hyperscalers driving increased market activity by both significant investments in new facilities as wellas leasing space from co-locators.

Net sales
Net sales strong increase +47% organically, driven by good deliveries on large orders announced during
previous years. Executions on these orders are proceeding according to plan and deliveries on the firstannounced order in 2022 was finalized in the quarter.
•

4,000

1,000

3,000

800
600

2,000

400

1,000

200
0
Q1
22

Q3

Q1
23
Quarter

Q3

0
Q1
24
LTM

Quarterly adjusted EBITA margin % DCT
20%

20%

15%

15%

10%

10%

5%

5%

0%

0%
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
2223
24
Quarter

LTM

Order intake per region Q1,
2024 – DCT

Also, region EMEA showed good development compared to the previous year.

Adjusted EBITA
The adjusted EBITA margin improved significantly related to several positive contributions in the quarter
i.e. strong volume growth, net price increases, positive product mix and high utilization rate in production
combined with operational efficiency improvements.
• Indirect costs in relation to net sales are expected to increase as investments in resources andcompetence are planned to accelerate over the coming quarters in order to capture growth
opportunities.
• Production ramp-up in Europe is progressing and during the quarter the build of a new production sitein Cork, Ireland was announced, expected to be completed during the year.

0%
Americas 91%

100%
APAC 0%Net sales per region Q1,
2024 - DCT

0%
Americas 91%

Interim report January-March 2024

50%
EMEA 9%50%
EMEA 9%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.

Q1
MSEK
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
1,122
786
35%
596
61
244
16%
10%
8%
-2%
24

LTM Full-year
2023
878
581
-17%
512
36
145
1%
-5%
7%
6

∆% Apr-Mar
28
1,122
35
2,638
24%
16
2,447
68
207
68
244
10%
309
125

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

Operating margin, %

4.1

1.2

5.1

4.5

Amortization of intang. asset
Items affecting comparability
Re-allocation of int. services
Adjusted EBITA

-20
-25
0
70

-17
-1
24

-83
-59
267

-80
-35
222

Adjusted EBITA margin, %

11.7

4.7

10.9

9.4

186

700

3,000

600

2,500

500

2,000

400

1,500

300

1,000

200

500

100
0

0
Q1 Q2 Q3Q4 Q1 Q2 Q3Q4 Q1
2223
24
Quarter
LTM

Quarterly adjusted EBITA margin %- FoodTech
14%

12%

12%

10%

10%

8%

8%

6%

6%

4%

4%

2%

2%
0%

January-March 2024
Order intake

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

LTM

Order intake increased +32% organically, primarily driven by Americas and EMEA, slightly offset by APAC.
•

Climate solutions in Americas showed good growth, primarily in the broiler and layer segments.
Digital solutions in Americas showed strong growth.
The EMEA region showed recovery in all segments, especially within the broiler and greenhousesegments.

•

Net sales
Net sales increased +10% organically, with contributions mainly from Americas.
•

Climate solutions in Americas showed good growth, primarily in the layer and broiler segments.
Digital solutions in the US grew with increased software recurring revenues (SaaS) +68% to MSEK 61,
with an ARR (Annualized Recurring software Revenue) of MSEK 244 as well as a high level of software
implementations.
Region EMEA was slightly negative, showing decline in most segments.
APAC declined, with a continued weak swine market in China whereas the layer segment showedslight growth.

••

Adjusted EBITA

Order intake per region Q1, 2024 –FoodTech0%
Americas 56%

50%
EMEA 36%

100%
APAC 8%Net sales per region Q1, 2024 FoodTech0%
Americas 59%

50%
EMEA 33%

100%
APAC 8%The adjusted EBITA margin increased significantly with contributions from all regions, especially EMEA
and Americas.
•••

Increased net sales in both Climate and Digital solutions had a positive effect on margin.
Digital solutions continue to show good profitability, driven by strong level of software
implementations and ARR growth.
Positive effects from operational excellence improvements combined with net price increases.

Interim report January-March 2024

8

Corporate
The Corporate function reported an adjusted EBITA of MSEK -49 (-40) in the first quarter. Corporate staff
functions as well as minority investments are accounted for within Corporate.
To further enhance Munters strategic journey Munters has started to make financial investments in start-ups
with the aim to support innovation for the group within digitalization, technology, and sustainability. In 2022,
five minority investments were made. In 2023 Munters participated in three capital increases, whereas no newminority investments were made in the year. In the first quarter this year Munters participated in two capitalincreases of minority investments and one new minority investment was done.

Quarterly Corporate cost (MSEK)
2.0%
60

1.5%

40

1.0%

20

0.5%

0

0.0%
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
2223
24
Quarter% of Net sales, LTM

Interim report January-March 2024

9

Other information
Employees
The number of permanent FTEs (Full Time Equivalents), at March 31, 2024 was 4,983 (4,017). The amount of
FTEs at March 31, 2024 in business area AirTech was 3,243 (2,745), in DCT 707 (376), in FoodTech 859 (776) andat Group functions 173 (119).

Outstanding shares
As of March 31, 2024, Munters held 1,924,705 treasury shares of the total shares of 184,457,817. Thus, thenumber of outstanding shares as of the balance sheet date was 182,533,112.

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
Munters Annual and Sustainability report 2023 – On February 23, Munters published the Annual andSustainability report for 2023 on www.munters.com, available in both Swedish and English.
Munters to acquire Airprotech – In March, Munters announced it has agreed to acquire Airprotech, an Italiancompany within VOC abatement systems. This acquisition enhances Munters Clean Technology portfolio andexpands the presence in Europe. The deal is expected to complete in the second quarter of 2024.
Annual general meeting 2024 - The annual general meeting was held at Munters headquarters in Kista,
Stockholm, Sweden on Thursday, March 21. More information around the main resolutions made at the Annual
General Meeting can be found on www.munters.com.

Ten largest shareholders
As of 31 Mar 2024%

FAM AB

28.0

Swedbank Robur Fund

6.4

First Swedish National
Pension Fund

5.1

ODIN Funds

5.0

Fourth Swedish National
Pension Fund

4.9

Capital Group

2.9

Vanguard

2.6

Norges Bank

1.7

Columbia Threadneedle

1.6

Handelsbanken Fonder

1.5

Source: Modular Finance AB

Webinar focused on Data Center Technologies – In March, a webinar focusing on DCT was held. The webinar
provide an overview ofthe market as well as Munters strategy and operations within the area.
.

Interim report January-March 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– ~4,983 employees (FTEs)

For customer success and ahealthier planet– >45 countries with sales andmanufacturing– 22 production units– 22% women leaders– Three business areas: AirTech, Data
Center Technologies and FoodTech
In Q1, AirTech generated 56%, Data Center
Technologies 27% and FoodTech 17% of thetotal net sales of Munters

Curiosity and a 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-March 2024

11

Quarterly overview Group
Income Statement
2023

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

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

Q4
16%
12.8
10.3
0.30
0.30
14.2
2.1

Q3
28%
14.1
12.8
1.42
1.42
13.7
2.2

2022
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

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

Q2
27%
13.5
11.5
1.40
1.40
13.2
2.7

Q1
38%
12.3
11.0
1.18
1.18
12.7
2.7

Q4
26%
10.1
8.5
0.70
0.70
12.7
2.9

Q3
22%
11.1
10.3
0.97
0.97
13.1
3.0

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

Q1
6,367
4,133
2,121
260
-59
201
-9
-14
-44
134
-23
-10
102
104

Q2
25%
10.4
8.4
0.93
0.93
13.3
2.9

Q1
16%
9.5
6.3
0.57
0.57
13.4
2.6

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

Q1
-565
2,830
370
298
5
2,938

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

Q1
1,316
1,263
-802
-804
231
1,204

Key performance indicators
2023

2024
MSEK
Organic 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

Q1
7%
14.1
11.6
1.19
1.19
13.6
2.0

2022

Net Debt
2023

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

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

Operating Working Capital
2023

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

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

12

Condensed statement of comprehensive
incomeQ1

LTM

Full-year

MSEK

2024

2023

Apr-Mar2023

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

3,538-2,344
1,193
-326
-348
-99
-5
-3
412

3,175
-2,208
967
-298
-243
-72
-5
-0
349

14,292-9,644
4,649-1,309-1,211
-387
-82
-10
1,649

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

Financial income and expenses
Profit/Loss after financial items

-87
325

-73
276

-345
1,304

-331
1,255

Tax
Net income for the period

-97
227

-62
214

-498
806

-463
792

Attributable to Parent Company shareholders
Attributable to non-controlling interests

218
10

214
-1

787
19

784
8

182,529,041 182,088,972
182,535,150 182,335,596
1.19
1.18
1.19
1.18

182,384,387
182,389,980
4.32
4.32

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

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

342

1

67

-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

15
-3
354
581

12
-3
10
224

-43
9
33
839

-46
9
-311
481

Attributable to Parent Company shareholders
Attributable to non-controlling interests

567
14

222
2

823
16

478
4

Items that will not be reclassified to profit or loss:

Interim report January-March 202413

Condensed statement of financial position
MSEK

2024-03-31

2023-03-31

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

6,125
2,384
1,196
695
61
135
324
10,921

5,351
2,071
863
758
33
83
292
9,451

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

1,902
2,306
14
60
140
900
1,581
6,902

2,071
2,035
11
51
114
776
618
5,675

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

TOTAL ASSETS

17,823

15,126

16,731EQUITY
Shareholders' equity
Non-controlling interests
Total equity

5,460
1
5,462

5,526
4
5,529

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

5,063
578
262
62
815
480
7,261

3,772
639
217
64
224
436
5,352

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

26
178
179
1,349
−
73
1,879
195
1,221
5,100

−
141
140
1,159
1
53
1,576
225
950
4,245

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

TOTAL EQUITY AND LIABILITIES

17,823

15,126

16,731ASSETSEQUITY AND LIABILITIESCondensed statement of changes in equity
MSEK

2024-03-31

2023-03-31

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
Other
Closing balance

5,258
581
1
-141
-237
−
−
5,462

5,307
224
2
-5
−
0
0
5,529

5,307
481
21
-377
-175
1
−
5,258

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

5,460
1

5,526
4

5,257
1

Interim report January-March 202414

Condensed cash flow statement
Q1
MSEK

LTM

Full-year

2024

2023

Apr-Mar

2023

Operating profit

412

349

1,649

1,586

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

126
-46
25
516

108
-8
-11
437

502
5
25
2,181

484
43
-11
2,102

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

-75
-104
338

-67
-25
345

-319
-469
1,393

-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

-167
-88
115
-1
406
264

-19
-120
-43
-128
-138
-448

-159
303
-109
66
246
346

-11
271
-267
-60
-299
-366

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

-49
215

-65
-513

48
394

31
-335

OPERATING ACTIVITIESCash flow from operating activities

553

-168

1,787

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

-36
-23
0
-98
-75
-232

-2
0
0
-71
-85
-158

-743
-36
-27
0
-350
-337
-1,493

-744
0
-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

1
435
-599
-37
-119
18
-301

2
471
-404
-37
-2
31

19
2,232
-1,083
-156
-293
-40
679

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

20
1,532
29
1,581

-295
914
-1
618

973
618
-10
1,581

658
914
-40
1,532

Interim report January-March 202415

Parent company
Condensed income statement
Q1
MSEK

LTM

Full-year

2024

2023

Apr-Mar2023

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

−
−
-4
1
-3

−
0
-4
2
0

−
−
-3
30
19

−
−
-11
32
22

Financial income and expenses
Profit/Loss after financial items

-6
-8

-2
-2

-21
-2

-18
4

Group contributions
Profit/Loss before tax

−
-8

−
-2

−
-2

−
3

Tax
Net income for the period

−
-8

−
-2

-0
-2

-0
3

-8
−
-8

-2
−
-2

-2
−
-2

3
−
3

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

Condensed balance sheet
MSEK

2024-03-31

2023-03-31

2023-12-31

4,098
4
4,102

4,098
4
4,103

4,098
4
4,102

−
2
1
9
3
15

−
1
1
15
0
18

1
1
1
10
3
15

4,117

4,121

4,118

6
4,136
-627
-8
3,506

6
4,136
-239
-3
3,899

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

2
34
448
123
607

2
18
191
8
219

3
32
327
4
366

TOTAL EQUITY AND LIABILITIES

4,117

4,121

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-March 2024

16

Other disclosures
Accounting policies
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).

business area FoodTech, Munters has manufacturing of controllers in Israel
located south of Tel Aviv with about 140 employees. Munters operations
has so far not been impacted by the situation and we continue to monitor
the situation closely in order to be able to quickly respond to any
disturbances.
On 22 January, 2024, Munters announced preliminary results for 2023 as aresult of a ransomware attack at its hosting provider Tietoevry. Muntersfinancial consolidation system and a limited part of our business systems
were affected by the attack. Munters estimates that the event will not havean impact in 2024.

Environmental impact andenvironmental policy

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-

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.

Transactions with related parties

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, businessinterruption, transportation, the liability of Board members and the CEOand employment practices liabilities.
In the beginning of October, 2023 Israel declared it was at war with Hamas.
On April 14, 2024 Iran launched an aerial attack on Israel. Within theInterim report January-March 2024

112.

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 89 (62) and net derivatives to MSEK 14 (9) as of the balance sheet
date.
The Group’s put/call option, from the acquisition of MTech Systems in 2017,is recognized at fair value in the statement of financial position. The option
is measured according to IFRS 9 and is categorized in level 3 in the fairvalue hierarchy. The exercise period begins on January 1, 2025, and ends on
December 31, 2025. The fair value of the option amounts to MSEK 740(220) 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 on 1 January, 2026. The fair value of the option
amounts to MSEK 40 as of the balance sheet date.
MSEK
Opening balance
Valuation put/call options
Holdbacks
Remeasurements
Discounting
Exchange-rate differences
Closing balance

2024-03-31
632
−
−
138
3
42

2023-03-31
217
−
−
−
5
-2

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

815

220

632

Munters deems that the interest rate on interest-bearing liabilities is in linewith market terms on March 31, 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 Q1
AirTechMSEK
Americas
EMEA
APAC
Sales between regions
TOTAL

2024
1,114
545
448
-111
1,996

DCT
2023
836
649
695
-157
2,023

2024
866
90
1
-1
956

FoodTech
2023
582
69
1
0
653

2024
346
234
55
-40
596

Group

Eliminations
2023
240
233
67
-28
512

2024
0
-5
-3
-2
-10

2023
0
-5
-4
-3
-13

2024
2,327
864
500
-154
3,538

2023
1,658
946
759
-188
3,175

Reconciliation of alternative performance measures and items
affecting comparability
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 eventsor 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 as well as costs for other events, such as the Covid-19
pandemic and war in Ukraine, having a significant impact on thecomparability.
Below is a break-down of items affecting comparability by period.

Q1
MSEK
Restructuring activities
M&A activities
Other items affecting comparability
Total

2024
-11
-9
-25
-44

LTM
2023
-4
-2
−
-6

Apr-Mar
-41
-37
-57
-135

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

Business combinations
No acquisitions have been closed in Q1 2024 or were closed in same
period last year.
In March, Munters announced the agreement to acquire Airprotech, an
Italian company within VOC abatement systems. The transaction is
expected to close in Q2 2024.

Interim report January-March 2024

18

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.

Organic growth
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.

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.

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

Adjusted EBITA
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.

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

Return on capital employed (ROCE)
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.

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.

LTM
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.

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

Number of employees
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.

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

Adjusted EBITA margin

Operating working capital/net sales

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.

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

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.

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-March 2024

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

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.

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

Americas
Refers to North-, Central and South America.

19

Information andreporting dates
Welcome to join a webcast or telephone conference on
April 23 at 9:00 AM 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-q1-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
9059
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. The
information was submitted for publication, through the agency ofthe contact persons set out above, at 07.30 AM CEST on April 23,
2024.

Financial calendar:

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.

Capital Markets Day, Stockholm

May 21, 2024

Second quarter report 2024

July 17, 2024

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-March 202420