Q4”Significant progress on our strategy
with record high order intake”

October-December 2021
■ Order intake was very strong and increased by +62%, a currency
adjusted increase of +59%, and net sales increased +12%, currency
adjusted +10%, mainly driven by strong growth in business area AirTech,in Battery and Data Centers as well as Services. Business area
FoodTech had good growth in Americas and EMEA.
■ The adjusted EBITA-margin was 10.6% (13.3), negatively impacted bysupply chain constraints, higher raw material prices and freight costs andthe time lag of our own price increases. Also, a changed business mix in
Airtech, production inefficiencies in a facility in the US as well as lower
FoodTech volumes in China had an impact.
■ Leverage (net debt/adjusted EBITDA, LTM*) was 2.2x, in line with thelevel at the end of September 2021. In the quarter sustainability targets
were linked to the primary financing facilities (SLL).
■ Net debt as of year-end amounted to MSEK 2,389 compared to
MSEK 2,536 at the end of September 2021.
Events after the period close:■ The Board of Directors propose a dividend of 0.85 (0.70) SEK per sharefor 2021 totaling a dividend of MSEK 157 (129).
■ Munters announced the acquisition of EDPAC, an Ireland-based
manufacturer of data center cooling equipment and air handling systems
for a purchase price of MEUR 29.
■ FoodTech, through MTech Systems, signed a contract to deliver it’s
Software-as-a-Service (SaaS) solution..
Financial summary

January-December 2021
■ Strong demand with impact of supply chain constraints from the second
quarter and forward.
■ Order intake increased by +24%, currency adjusted +30% and net
sales increased +5%, currency adjusted +10%, mainly driven by strong
growth in Battery, Data Centers and Services in business area AirTech.
FoodTech experienced growth in Americas and EMEA, offset by aweak swine market in China.
■ The adjusted EBITA-margin was 12.1% (12.9), negatively impacted bysupply chain constraints, higher raw material prices and freight costs aswell as the time lag of the impact of our own price increases andproduction inefficiencies in a facility in the US in the fourth quarter. The
AirTech margin was positively impacted by increased net sales, highutilization rates and efficiency improvements while the FoodTech
margin was negatively impacted by lower volumes in China.
■ Leverage (net debt/adjusted EBITDA, LTM*) was 2.2x, slightly higher
than 1.9x per end of December 2020.
■ Net debt as of December 31 amounted to MSEK 2,389 compared to
MSEK 2,116 at year-end 2020. In the second quarter a 5-year refinancing was secured enabling execution of the long-term strategy.

Q4

Jan-Dec

MSEK

2021

2020 ∆%

2021

2020 ∆%

Order intake

2,605

1,611

62

9,013

7,249

24

Net sales

2,057

1,841

12

7,348

7,015

5

Operating profit (EBIT)

190

250

-24

753

707

6

Adjusted EBITA

217

245

-11

889

906

-2

Adjusted EBITA margin, %

10.6

13.3

12.1

12.9

Net income

133

172

515

432

Earnings per share before dilution, SEK

0.73

0.93

2.81

2.35

Earnings per share after dilution, SEK

0.73

0.93

2.81

2.35

Average number of outstanding shares before dilution

182,266,053

181,423,919

182,207,520

181,545,456

Average number of outstanding shares after dilution
The KPI´s below includes discontinued operations **182,513,822

182,151,560

182,548,017

181,557,708

Net income

133

171

515

426

Earnings per share before dilution, SEK

0.73

0.92

2.81

2.32

Earnings per share after dilution, SEK

0.73

0.92

2.81

2.32

Cash flow from operating activities

416

408

519

959

Net debt

2,389

2,116

2,389

2,116

2.2

1.9

Net debt/Adjusted EBITDA, LTM-23* Last twelve months** Discontinued operations is defined as the business connected to the Data Centers operations in Dison, Belgium, where the production ceased during fall 2019 but minor installation services
reamained at customer sites during 2020. All income statement items in this report refers to Munters continuing operations, if not otherwise stated.

19

Fourth quarter, 2021»

CEO comments
Record high order intake driven by demand for battery-driven vehicles and increased data traffic
The strong order intake in the AirTech business area continued and was record high in the quarter and for the fullyear 2021. Demand for our energy-efficient climate solutions is especially high in the battery and data center segments. The robust order intake is driven by the transition to battery-powered vehicles and increased data traffic. To
further take advantage of the strong market trends, we recently acquired Edpac, an Irish data center equipment manufacturer. Through Edpac, we get access to well-established production capacity and a prioritized customer base in
the attractive, quickly growing European data center market. Last year decisions were also taken to expand capacity
in order to meet demand, for example within the battery segment by building a new facility in the Czech Republic.
These initiatives strengthen our solid base for continued growth in prioritized market segments. In the FoodTechbusiness area, development was good in Americas in the quarter and in 2021, while demand in the swine segment in
China was weak during the second half of the year. The swine segment in China was negatively impacted by overcapacity and the African Swine Fever. Through focus on value-based selling and product rationalization as well as investments in digital customer solutions, FoodTech strengthen its leading position and creates a stable foundation for
profitable growth. This year, MTech Systems, a Munters company within FoodTech, also signed an important contract to deliver its SaaS solution. It is a recognition of our strategy to grow Digital Solutions.
Supply chain challenges impacted profitability
As expected, we were affected in the quarter by continued challenges in the supply chain. In the quarter, we saw
positive effects from our price increases and continued to raise prices to mitigate higher raw material prices andfreight costs. As earlier communicated, most of the price increases will take effect during 2022 due to longer leadtimes. The difficulties with anticipating timing of deliveries of input goods and components, combined with effects ofthe pandemic, has especially affected a production unit in the industrial sub-segment in the US. This, along with achanged business mix in AirTech with more larger projects and lower volumes for FoodTech in China, affected profitability negatively. We continue to anticipate that the challenges in the supply chain will remain throughout the firsthalf of 2022.

“Significant
progress on
our strategy
with record
high order intake”

Klas Forsström, President and CEO

Investments create further growth opportunities
Munters’ has a clear growth strategy and targets markets characterized by solid longer-term growth. These markets
are to a large extent driven by the strong sustainability and digitalization trends. Our leading climate solutions areoften mission-critical for our customers’ success and meet their needs to improve efficiency and reduce energy consumption. By our investments in selected competences and digitalization of our ways of working, we create further
opportunities to grow and increase profitability.
Significant progress in 2021
In 2021, we strengthened our leading market position and exceeded our customers’ expectations in several areas. I
would like to highlight three areas where we have made particular progress. One is sustainability where we set thetarget to have zero net emissions from our operations by 2030. Secondly, the continued strong cash generation in
2021 and the third one our employees’ ability to manage the challenges in the supply chain. In conclusion, I would
like to thank all the employees who, with professionalism and perseverance, contributed to Munters’ success in 2021.
Klas Forsström, CEO and President

Mid-term financial targets

Sustainability

Net sales growth: Annual organic growth of net sales of 5%,
supplemented with selected add-on acquisitions. PerformanceQ4 2021: +10% (8)Adjusted EBITA-margin: An adjusted EBITA-margin of 14%.
Performance Q4 2021: 10.6% (13.3)
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 aresult of acquisitions). Performance Q4 2021: 2.2x (2.5x)
Dividend policy: Munters aim to pay an annual dividend
corresponding to 30-50% of its consolidated income after tax forthe period.
Dividend proposal 2021: 30% (SEK 0.85 per share, totaling
MSEK 157)

Progress during 2021:
Environment: Target set for Net zero emissions from operations, including Scope 1 and Scope 2 by 2030. All locations at
Munters included.
Social: Joined UN Global Compact, Gender Equality initiative.
Governance: Sustainability KPIs integrated in strategy framework and added sustainability targets to the loan facilities
Examples of key sustainability ratios FY 2021:• Total Recordable Incident Rate
1.7 (1.2)• Code of Conduct for suppliers
100% (100)• Electricity from renewable sources
53% (50)• Proportion of women in management positions
23% (22)

For full description of the dividend policy, see the Annual and Sustainability report
2020, page 8 or at www.munters.com.

2

Please see the Munters Annual and Sustainability report 2020, pages 38-49, forfurther information on goals and outcome or at www.munters.com.

Fourth quarter, 2021

Financial performance
Q4

Jan-Dec

MSEK

2021

2020

∆%

2021

2020

∆%

Order intake

2,605

1,611

62

9,013

7,249

24

AirTech

2,110
508
-13
2,057
1,562
509
-14
217
214
31
-28
10.6
13.7
6.0

1,172
450
-11
1,841
1,323
531
-12
245
211
66
-32
13.3
15.9
12.3

80
13
19
12
18
-4
15
-11
2
-53
-14

6,890
2,166
-43
7,348
5,362
2,028
-42
889
774
210
-95
12.1
14.4
10.4

5,101
2,196
-48
7,015
4,937
2,126
-48
906
689
310
-94
12.9
14.0
14.6

35
-1
-9
5
9
-5
-13
-2
12
-32
1

FoodTech
Other and eliminations

Net sales

AirTechFoodTech
Other and eliminations

Adjusted EBITA
AirTechFoodTech

Other and eliminations

Adjusted EBITA margin, %AirTechFoodTech

Order intake Q4,
currency adjusted change+59%
Net sales Q4,
currency adjusted change+10%Adj. EBITA-margin Q4

10.6%

ORDER INTAKE

October-December 2021

Order intake increased by +62%, a currency adjusted increase of 59%, mainly driven by strong growth in the Battery
sub-segment, Data Centers and Services in AirTech. FoodTech grew in Americas and EMEA. The order backlog increased +86% to MSEK 4,198 (2,253), currency adjusted +72%.
Order intake in AirTech increased by +80%, a currency adjusted increase of +77%. The strong growth was mainly
driven by the Industrial segment in Humidity Control Technologies (HCT) and especially the Battery sub-segmentwith good development in both Americas and APAC. We also saw good growth in the Food sub-segment. In Data
Centers order intake was strong. Clean Technologies (former Mist Elimination) grew slightly, driven by increased demand from the Process sub-segment. Services experienced growth in all regions, with especially strong growth inAmericas. The good development in Services is partly due to a growing installed base and increased demand for upgrades of installed climate systems to more energy efficient solutions.
FoodTech increased by +13%, a currency adjusted increase of +11%. Regions Americas and EMEA showed good
growth, offset by a decline in region APAC. Both Climate solutions and Digital solutions experienced growth in Americas. EMEA grew driven mainly by increased orders for Climate Solutions to the Greenhouses sub-segment and to
the Broiler sub-segment. Demand in APAC declined, negatively impacted by a weak market in China with a lower
level of new constructions due to increasing capex prices. In addition, overcapacity in the swine market and outbreaks of the African Swine Fever (ASF) had a negative impact on demand.

January-December 2021

Quarterly order intake, 2021
(MSEK)
3,000

10,000

2,500

8,000

2,000

6,000

1,500

4,000

1,000

2,000

500
0

Q4

Q1

Q2

Q3

QuarterFoodTech order intake decreased -1%, a currency adjusted increase of +3%. Region Americas experienced growthin all Climate Solutions sub-segments, mainly driven by the Broiler sub-segment in the US. EMEA grew driven mainly
by increased orders for controllers to the Broiler sub-segment in the US as well as good demand for Greenhouse solutions. In APAC order intake was weak, negatively impacted by the weak swine market in China due to overcapacity
3

0
LTM

Order intake per region Q4,2021 (MSEK)

19%

Order intake increased by +24%, a currency adjusted increase of +30%, mainly driven by strong growth in the Battery sub-segment and Data Centers in business area AirTech. FoodTech grew in Americas and EMEA.
AirTech increased +35%, a currency adjusted increase of +42%. Excluding the non-core commercial business US,
exited in 2020, the increase was appr. +44% currency adjusted. Growth was mainly driven by the Industrial segmentin HCT and especially the Battery sub-segment in APAC and the Food sub-segment. Also Data Centers had strong
growth. Components showed good growth driven by strong demand in the market segment Batteries and Data Centers. Clean Technologies experienced growth, especially in the Process sub-segment. Services grew driven by gooddevelopment in APAC and Americas.

Q4

56%

25%

Americas

EMEA

APAC

Fourth quarter, 2021

and outbreak of the ASF and also on the back of the strong growth in the Swine segment in China in the same period
last year.

NET SALES
October-December 2021

Net sales increased +12%, a currency adjusted increase of +10%, driven mainly by an increase in the Battery subsegment, Data Centers and Services in business area AirTech. FoodTech had good growth in Americas and EMEA.
Services net sales amounted to 18% of total net sales.
AirTech increased +18%, a currency adjusted increase of +17%, with growth in all areas HCT, Data Centers andClean Technologies. Excluding net sales to the non-core commercial business US, exited in 2020, currency adjusted
net sales increased appr. +18%. Growth was driven mainly by the Industrial segment in HCT and especially the Battery sub-segment, offset by a weaker development in the Pharma sub-segment. Services grew overall, especially in
Americas and APAC. Services amounted to 23% of total net sales.
FoodTech decreased -4%, a currency adjusted decrease of -6% with a decline in APAC negatively impacted by the
weak swine market in China due to overcapacity and outbreaks of the ASF and also on the back of the strong growthin the Swine sub-segment in China in the same period last year. Americas showed good development in all sub-segments, with very strong development in the US Broiler sub-segment. Region EMEA showed good growth because ofhigher net sales to the Broiler, Layer and Greenhouse sub-segment.

Quarterly net sales, 2021
(MSEK)
3,000

8,000
6,000

2,000

4,000
1,000

2,000

0

Q4

Q1

Q2

Q3

0

Q4

QuarterLTM

Net sales per region Q4,2021 (MSEK)

January-December 2021

Net sales increased +5%, a currency adjusted increase of +10%, driven by an increase in the Battery sub-segment
and Services in business area AirTech. Business area FoodTech had good growth in Americas. Services net sales
amounted to 15% of total net sales.
AirTech increased +9%, a currency adjusted increase of +14% with good growth in HCT and Battery subsegment. In
addition, the Pharma sub-segment grew in all regions, largely driven by Covid-19 relief efforts and production of test
equipment in the US. Excluding net sales to the non-core commercial business US, exited in 2020, currency adjusted
net sales increased app. +19%. Services grew in region Americas and APAC, whereas EMEA remained flat. Services amounted to 21% of net sales.
FoodTech decreased -5%, a currency adjusted decrease with -1%, with a decline in APAC offsetting a good growthin all sub-segments in Americas both in the Climate solutions and Digital solutions businesses. Region EMEA grewslightly as the Broiler, Layer and Greenhouse sub-segments experienced good demand mainly in the Middle Eastand Southern Europe.

4

26%
44%

30%
Americas

EMEA

APAC

Fourth quarter, 2021

RESULTS
Adjusted EBITA excludes Items Affecting Comparability, IAC, see pages 5-6 for disclosure of the IACs.

October-December 2021

The gross margin for the fourth quarter amounted to 30.3% (32.9). Supply chain constraints, higher raw material
prices and freight costs continued to weigh on the margin. We saw positive effects from our price increases and continued to raise prices to mitigate higher costs. The difficulties with anticipating timing of deliveries of input goods andcomponents, combined with effects of the pandemic, has especially affected a facility in the US in AirTech. Also, achanged business mix in AirTech with more larger projects and lower net sales in China for FoodTech had a negative
impact on the margin.
Adjusted EBITDA was MSEK 274 (300), corresponding to an adjusted EBITDA-margin of 13.3% (16.3). Depreciation
amounted to MSEK -56 (-55), whereof depreciation of leased assets was MSEK -28 (-29).
Adjusted EBITA was MSEK 217 (245), corresponding to an adjusted EBITA-margin of 10.6% (13.3).
Adjusted EBITA for business area AirTech amounted to MSEK 214 (211), corresponding to an EBITA-margin of
13.7% (15.9). The margin decreased due to constraints in the supply chain, increased raw material prices and freightcosts as well as a changed business mix with more large projects. The difficulties with anticipating timing of deliveries
of input goods and components, combined with effects of the pandemic, has especially affected a production unit in
the industrial sub-segment in the US.
Adjusted EBITA in business area FoodTech was MSEK 31 (66), corresponding to an adjusted EBITA-margin of 6.0%
(12.3). The margin decreased due to lower volumes in China. In addition, constraints in the supply chain, increased
raw material prices and freight costs had a negative impact on the margin.
Adjusted EBITA for Other amounted to MSEK -28 (-32). Other mainly includes costs for corporate staff functions.
Operating profit (EBIT) was MSEK 190 (250), corresponding to an operating margin of 9.2% (13.6). Amortization andwrite-downs on intangible assets in the fourth quarter was MSEK -18 (-17), where MSEK -8 (-8) related to amortization of intangible assets from acquisitions.

January-December 2021

The gross margin for the full year was 32.0% (33.5). Supply chain constraints, higher raw material prices and freightcosts as well as the time lag of the impact of our own price increases had a negative impact on the margin. In the
fourth quarter production inefficiencies due to the pandemic affected a facility in the US in AirTech that impacted themargin negatively. The margin was also negatively impacted by lower net sales to the swine market in China, on theback of very strong net sales in 2020.
Adjusted EBITDA was MSEK 1,105 (1,126), corresponding to an adjusted EBITDA-margin of 15.0% (16.1). Depreciation amounted to MSEK -228 (-221), whereof depreciation of leased assets was MSEK -106 (-113).
Adjusted EBITA amounted to MSEK 889 (906), corresponding to an adjusted EBITA-margin of 12.1% (12.9).
Adjusted EBITA for business area AirTech was MSEK 774 (689) corresponding to an adjusted EBITA-margin of
14.4% (14.0). The margin improved slightly because of increased net sales, high utilization rates and efficiency improvements, partly offset by a change in business mix with more large projects, constraints in the supply chain,higher raw material prices and freight costs. Also, the time lag of the effect from our own price increases together
with production inefficiencies due to the pandemic affected a facility in the US negatively.
Adjusted EBITA in business area FoodTech amounted to MSEK 210 (310), corresponding to an adjusted EBITAmargin of 10.4% (14.6). The margin was negatively impacted by lower volumes in China compared to 2020. Also,
constraints in the supply chain, increased raw material prices and freight costs and the time lag of the effect from ourown price increases had a negative impact. The margin in 2020 was strong mainly because of strong growth in theswine market in China.
Adjusted EBITA for Other was MSEK -95 (-94).
Operating profit (EBIT) was MSEK 753 (707), corresponding to an operating margin of 10.2% (10.1). Amortization
and write-downs on intangible assets for the full year was MSEK -74 (-87), where MSEK -30 (-39) was related toamortization of intangible assets from acquisitions.

ITEMS AFFECTING COMPARABILITY (IAC)
Items affecting comparability (IAC) in the fourth quarter were mainly related to activities connected with the strategy
implementation. Business area FoodTech incurred MSEK -16, and business area AirTech MSEK -3. In addition to
IACs related to the strategy implementation, Munters incurred other IACs of MSEK +12, which is a net of released
5

Quarterly gross margin, %
40%
35%
30%
25%
20%

Q4

Q1

Q2

Q3

Q4

Quarterly adjusted EBITDA
margin, %
20%
10%
0%

Q4

Q1

Q2

Q3

Q4

Quarterly adjusted EBITA
margin, %
20%
10%
0%

Q4

Q1

Q2

Q3

Q4

Quarterly EBIT margin, %
20%
10%
0%

Q4

Q1

Q2

Q3

Q4

Fourth quarter, 2021

provisions associated with the discontinued operation in Dison of MSEK +16 and MSEK -4 related to M&A activities.
Since operations has ceased in Dison and Munters is no longer reporting any discontinued operation, the released
provisions have been adjusted for comparability. Covid-19-related IACs affected the fourth quarter with MSEK -1.
IACs for the full year related to the strategy implementation within business area FoodTech was MSEK -95. The major part of the costs were recorded as provisions in the second quarter with the launch of the strategy implementation
for FoodTech with the aim to accelerate the digital journey and strengthen the equipment position. Provisions related
to severance, warranty claims, inventory, etc. For business area AirTech the work with the strategy implementation
launched in 2020 has continued and MSEK -25 has been recorded as IACs for the full year, mainly related to consultancy services for the strategy implementation. Other incurred IACs of MSEK -4 are related to strategy implementation.
In addition, Munters has had IACs of MSEK +63, mainly comprising a net of a final settlement in regard to a customer
claim (Hunters New England Health District), of MSEK -9, insurance compensation received linked to the previous
exchange of specific components at a customer site within the European Data Center business of MSEK +61 andrelease of provisions within the discontinued operation in Dison of MSEK +16. Covid-19-related IACs affected the fullyear with MSEK -2.
During last year, Munters foremost incurred IACs related to the implementation of the strategy, mainly within business area AirTech.
For further information, see the reconciliation of Munters alternative performance measures on page 23.

Q4
MSEK

2021

Jan-Dec
2020

2021

2020

Covid-19 related items

-1

1

-1

7

Implementation refined strategy
Other items affecting comparability

-3

13

-25

-109

15

13

76

7

AirTech

10

26

50

-95

Covid-19 related items

-0

1

-1

1

Implementation refined strategy
Other items affecting comparability

-16

-1

-95

-6

-

6

-1

6

FoodTech

-16

6

-97

1

Covid-19 related items

-

-

-

1

Implementation refined strategy
Other items affecting comparability

-

-2

-4

-10

-3

-8

-12

-8

Other

-3

-10

-16

-18

Covid-19 related items

-1

1

-2

8

Implementation refined strategy
Other items affecting comparability

-20

10

-124

-124

12

11

63

5

Total

-9

22

-62

-111

FINANCIAL ITEMS

Financial income and expenses for the fourth quarter amounted to MSEK -14 (-45). The financial expenses are positively impacted by a lower USD interest rate and lower interest bearing debt compared to same quarter last year. Interest expense on lease liabilities amounts to MSEK -4 (-4) in the fourth quarter. The average weighted interest rate
including fees per end of the quarter was 2.2% (3.0).
Financial income and expenses for the full year amounted to MSEK -84 (-156). The financial net was at a lower level
mainly as a consequence of lower interest rate paid.

6

Fourth quarter, 2021

TAXES
Income taxes for the fourth quarter was MSEK -43 (-33). The effective tax rate in the fourth quarter was 24% (16). In
Q4 2020 there were positive one-off effects related to a tax refund received in Brazil and increased tax credits in the
US due to the CARES Act. Income taxes for the full year was MSEK -153 (-120). The effective tax rate for the fullyear was 23% (22).

EARNINGS PER SHARE
Net income, including the discontinued operation, attributable to Parent Company’s ordinary shareholders amounted
to MSEK 133 (168) for the fourth quarter. Earnings per share, before and after dilution, in the fourth quarter 2021 was
SEK 0.73 (0.92). Net income, including the discontinued operation, attributable to Parent Company’s ordinary shareholders amounted to MSEK 513 (420) for the full year. Earnings per share before and after dilution for the full year
2021 was SEK 2.81 (2.32).
The average number of outstanding ordinary shares in the fourth quarter, for the purpose of calculating earnings per
share, was 182,266,053 before dilution and 182,513,822 after dilution.

FINANCIAL POSITION

Tax rate, 2021 %
40%
20%
0%

31%
16%

20%

19%

Q1

Q4

Q2

24%

Q3

Q4

0.75

0.73

Q3

Q4

EPS, 2021 SEK
1.5
1.0

0.92

0.87
0.45

0.5
0.0

Q4

Q1

Q2

Interest-bearing liabilities amounted to MSEK 2,750 (2,786). Cash and cash equivalents amounted to MSEK 674(970) as of December 31.
In the second quarter 2021 Munters refinanced primary financing facilities by establishing a new term loan of MUSD
165 and a Revolving Credit Facility (RCF) of MEUR 250 with final maturity date in June 2026. Previously the facilities
were an RCF of MEUR 185 and a term loan of MUSD 250. The new facilities are granted by a group of six banks andhave no mandatory amortization requirement. In November Munters added on sustainability targets to the loan facilities assisted by Nordea as Sustainability Coordinator. This will support Munters’ strive for an environmentally andsocially 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 andneither does the net pension liability.

Net Debt per quarter
3,000

1.9

1.9

1.9

Q1

Q2

2.2

2.2

2,000
1,000
0

Munters also has a backup facility of MSEK 750 maturing in 2023 which is secured by a guarantee from EKN (The
Swedish Export Credit Agency).

Q4

Q3

Quarter

Net debt as of December 31 amounted to MSEK 2,389 compared to MSEK 2,536 at the end of September 2021 andMSEK 2,116 at the end of December 2020. For more information about reconciliation of net debt and leverage see
page 24.

Q4
Leverage

Net debt in relation to Adjusted EBITDA was 2.2x which is same level as at end of September 2021. The leverage
ratio has been positively affected by good cash flow from working capital but offset by negative currency effect onoutstanding debt.
At quarter end the term loan of MUSD 165 was fully drawn. Of the RCF of MEUR 250 an amount of MEUR 87 (40)was utilized in EUR, SEK and USD. Unutilized of the RCF as of December 31 amounted to MEUR 163 (129). Alongwith the primary loan facilities, an amount of MSEK 13 (15) in local debt is outstanding in i.a. India. The backup facility with EKN was entirely unutilized.
Average capital employed for the last twelve months was MSEK 7,070 (7,433). Return on capital employed, including
the discontinued operation, (ROCE) for last twelve months was 10.7% (9.5). Return on capital employed, 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 27.6% (26.0).

CASH FLOW
Cash flow from operating activities was MSEK 416 (408) in the fourth quarter and for full year 2021 MSEK 519 (959).
Cash flow from changes in working capital had a positive impact on cash flow of MSEK 232 (161) in the fourth quarter but a negative impact of MSEK -175 (183 ) for the full year. The positive effect on cash flow from working capitalin the quarter mainly relates to increased accounts payables and an increased level of advances from customers,
partly offset by negative impact from accounts receivables and inventory. For the full year, the negative effect on
cash flow from working capital mainly relates to increased inventory levels but is also affected by increased accounts
7

ROCE %, 2021
15%
10%

9.5%

11.3% 12.2% 11.5% 10.7%

5%
0%

Q4

Q1

Q2

Q3

Q4

Fourth quarter, 2021

receivables outstanding. On the other hand, increased accounts payable and advances from customers partly offset
the negative effect.
Total cash flow for the fourth quarter amounted to MSEK 224 (201) and MSEK -324 (287) for the full year. The total
cash flow for the year is affected by a payment of dividend to external shareholders of MSEK -129 (whereof MSEK -2
to an external minority to one of the subsidiaries), a net amortization on external debt of MSEK -239, repurchasing ofshares of MSEK -69 and exercised employee share options of MSEK 40.

PARENT COMPANY AND OWNERSHIPThe parent company for the Group is Munters Group AB. Corporate staff functions within Munters are accounted forwithin Munters Group AB. The company holds shares in subsidiaries, internal receivables and liabilities, cash andaccounts payables. The Parent Company does not engage in sales of goods and services to external customers.
Cash and cash equivalents at the end of the period amounted to MSEK 0 (62).

EMPLOYEESThe number of permanent FTEs (Full Time Equivalents), at December 31, 2021 was 3,315 (3,214). The amount of
FTEs at December 31, 2021 in business area AirTech was 2,432 (2,286), in FoodTech 796 (861) and at Group functions 87 (68). The number of permanent FTEs in FoodTech has been impacted by a re-classification of 70 FTEs totemporary employees.

OUTSTANDING SHARES AND REPURCHASESIn December Munters announced it had pursuant to the authorization granted by the Annual General Meeting 2021
during the period 22 November until 10 December repurchased a total number of 1,071,550 shares. The purpose of
the repurchase was to secure the delivery of shares to the participants in the incentive programs that the 2018–2020
annual general meetings resolved to implement and to cover costs related to the programs. As of December 31,
2021, Munters held 2,883,300 treasury shares of the total outstanding shares of 184,457,817.
The average number of outstanding ordinary shares in the fourth quarter, for the purpose of calculating earnings per
share, was 182,266,053 before dilution and 182,513,822 after dilution.

DIVIDEND PROPOSAL
During 2021 Munters had strong growth as well as a solid profitability and capital structure. The leverage was at 2.2x
at year-end, which is within the mid-term target range for net debt to adjusted EBITDA of 1.5x-2.5x. The Board of Directors therefore proposes a dividend of SEK 0.85 (0.70) per share for 2021, in total MSEK 157 (129). This represents 30 per cent of the net income 2021.

8

Ten largest shareholders

As of 31 Dec
Wallenberg Investments
ODIN Funds
First Swedish National
Pension Fund
Swedbank Robur Funds
Fourth Swedish National
Pension Fund
Columbia Threadneedle
Handelsbanken Funds
C WorldWide AssetManagement
La Financière de l'Echiquier
Vanguard

Total (%)
27,8
9,0
8,4
7,4
6,4
3,7
3,3
2,6
2,3
1,5

Fourth quarter, 2021

OTHER EVENTSPeter Gisel-Ekdahl pursued opportunity outside Munters and Klas Forsström, CEO and President of Munters,interim President Business Area AirTech – In April Munters communicated that Peter Gisel-Ekdahl, President
Business Area AirTech, had decided to pursue pursue an opportunity outside Munters as CEO of a company basedin the Nordic region. Klas Forsström, CEO and President of Munters will, in addition to his current role, take on the
responsibility as interim President for AirTech to ensure the future growth plans and continuous focus on strategy
deployment.
Continued implementation of the strategy, taking the next steps in business area FoodTech – In May it wasannounced as part of the strategy implementation that business area FoodTech had completed a strategic review
outlining measures to strengthen its digital offering and climate solutions part of the business. Implementation started
in the second quarter 2021.
Launch of Munters DSS Pro: the next level of dehumidification – Munters announced in July the DSS Pro that is
an evolutionary leap forward from the market-leading DSS. Suitable for indoor or outdoor installation, the DSS Pro isequipped with our new AirPro casing. This new enclosure offers significantly improved durability, reduced air leakage, and lower energy consumption.
Munters signed strategic turnkey project to design and build Scandinavian lithium battery laboratory – In
September, Munters signed a strategic turnkey project to design and build a lithium battery laboratory in Scandinavia.
This is yet another confirmation of Munters’ position as a leading supplier to manufacturers of lithium batteries. The
agreement entails that Munters will design and build a full-scale laboratory for lithium batteries in Scandinavia. A key
requirement for the client was Munters’ capabilities to design the facilities along with competences to secure an efficient construction execution.
New Group Vice President HR and Sustainability – In October, it was announced that Grete Solvang Stoltz, at thetime Senior Vice President Human Resources and Sustainability at LKAB, will join the Munters’ management teamas Group Vice President HR and Sustainability as of February 1st 2022. Grete Solvang Stoltz has extensive experience in running global strategic programs with a focus on corporate culture as well as organizational and sustainable
development. She has previously held a number of highly qualified HR positions at LKAB and SCA.
Nomination Committee of Munters Group AB appointed – In October the Nomination Committee of Munters
Group AB was appointed. It comprises the following members: Magnus Fernström, FAM AB, Chairman of the Nomination Committee, Jan Dworsky, Swedbank Robur Funds, Mats Larsson, First Swedish National Pension Fund andJonathan Schönbäck, Odin Fund Management. The Nomination Committee shall prepare proposals for the 2022 Annual General Meeting regarding Chairman at the General Meeting, Board of Directors, Chairman of the Board, auditor, remuneration to the Board divided between the Chairman and the other Board members as well as remuneration
for committee work, remuneration to the company’s auditor and, if necessary, proposal for changes to the instruction
for the Nomination Committee. The date of the Munters Annual General Meeting 2022 is 18 May.
Munters part of Nasdaq Stockholm’s Large Cap segment – In December Munters announced it will be moved to
Nasdaq Stockholm’s Large Cap segment. The Large Cap segment includes companies with a market capitalizationof more than EUR 1 billion.

EVENTS AFTER THE CLOSE OF THE PERIOD

Acquisition of EDPAC – In January, Munters announced it has acquired EDPAC, an Ireland-based manufacturer ofdata center cooling equipment and air handling systems for a purchase price of MEUR 29. The acquisition is part of
Munters strategy to grow in the prioritized data center segment and strengthens its presence in Europe through theacquisition. EDPAC reported net sales of MEUR 17 and an adjusted EBITDA of MEUR 1.7 in the financial year ending April 2021.
FoodTech secures important SaaS contract – In February, Munters announced that MTech Systems, a Munterscompany within business area FoodTech, has signed an important contract to deliver it’s SaaS solution. The contract
is a recognition of FoodTech’s strategy with a clear direction to connect the entire food production value chain with
innovative software and precision farming equipment.

9

In January, Munters announced theacquisition of Edpac, an Ireland based
manufacturer of data center coolingequipment and air handling systems.

Fourth quarter, 2021

AirTechBusiness area AirTech is a global leader in energy-efficient air treatment for industrial and commercial applications. We offer solutions formission-critical processes that require exact control of moisture and temperature, 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.

■ Order intake in AirTech increased driven by the Battery sub-segment with good development in both Americas and APAC. Strong demand in Data
Centers and good growth in the Food and Components sub-segments. Clean Technologies grew slightly and Services experienced growth in all
regions.
■ Net sales increased driven by strong growth in the Battery sub-segment in APAC and Americas. The Pharma sub-segment showed good growth in the
US for the full year, with a weaker development in the fourth quarter. Both Data Centers and Clean Technologies grew in the fourth quarter. Services
grew overall, especially in Americas and APAC.
■ The adjusted EBITA-margin was lower in the fourth quarter due to a change in business mix, constraints in the supply chain, higher raw material prices
and freight costs. Also, the time lag of our price increases together with production inefficiencies at a facility in the US had a negative impact on themargin. For the full year it improved because of increased net sales, high utilization rates and efficiency improvements.

Q4

Jan-Dec

MSEK

2021

2020

∆%

2021

2020

∆%

Order intake

2,110
80%
1,562
18%
17%
1%
219
214
2%
13.7

1,172
-14%
1,323
-4%

80

6,890
35%
5,362
9%
14%
-5%
797
774
12%
14.4

5,101
-3%
4,937
-4%

35

565
689
4%
14.0

41
12

GrowthNet sales
Growthof which organic growthof which currency effects

Operating profit (EBIT)
Adjusted EBITA
GrowthAdjusted EBITA margin, %

234
211
14%
15.9

18

-6
2

9

FoodTechBusiness area FoodTech is one of the world’s leading suppliers of innovative, energy-efficient climate systems for livestock farming andgreenhouses, as well as software for controlling and optimizing 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.
■ Order intake in regions Americas and EMEA showed good growth both in the fourth quarter and for the full-year, offset by a decline in region APAC.
Both Climate solutions and Digital solutions experienced growth in Americas. EMEA grew driven mainly by increased orders for Climate Solutions to theGreenhouses sub-segment and to the Broiler sub-segment. Demand in APAC declined, negatively impacted by a weak market in China.
■ Net sales decreased both in the fourth quarter and for the full-year with a decline in APAC offsetting a good growth in all sub-segments in Americas
both in the Climate solutions and Digital solutions businesses. Region EMEA grew slightly as the Broiler, Layer and Greenhouse sub-segments
experienced good demand mainly in the Middle East and Southern Europe.
■ The adjusted EBITA-margin declined due to lower volumes in China both in the fourth quarter and for the full-year. In addition, constraints in the supply
chain, increased raw material prices and freight costs had a negative impact on the margin.
Q4
Jan-Dec

MSEK

2021

2020

∆%

2021

2020

∆%

Order intake

508
13%
509
-4%
-6%
2%
10
31
-53%
6.0

450
-8%
531
13%

13

2,196
5%
2,126
5%

-1

67
66
7%
12.3

-85
-53

2,166
-1%
2,028
-5%
-1%
-4%
81
210
-32%
10.4

291
310
12%
14.6

-72
-32

GrowthNet sales
Growthof which organic growthof which currency effects

Operating profit (EBIT)
Adjusted EBITA
GrowthAdjusted EBITA margin, %

10

-4

-5

Fourth quarter, 2021

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

■
■
■
■
■

3,300 employees (FTEs)
30 countries with sales and manufacturing
17 production units
23% women in management
Two business areas: AirTech and FoodTech

PurposeFor customer success and a healthier planet
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.

In 2021 AirTech generated 73% of the total net
sales of Munters and FoodTech 27%.

The strategy of Munters
Munters has a strong position in most of our markets. We see major opportunities to improve 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 whichareas 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 apriority issue reflected in every strategic priority.
People - The employees at Munters are the hub of our business. Through collaboration and a passion for creating sustainable solutions for our customers andpartners, we contribute to our customers’ success and a better world.
Customers - We closely cooperate our customers. We try not only to understand their needs today, but also in
the future. Our expertise is built through unique insight into our customers’ businesses and production
processes. Munters works every day to deliver value over and above our customers’ expectations.
Innovation - We at Munters work in a structured way to optimize innovation in the organization. We continuallymonitor technological developments in the market and work closely with our customers to understand theirneeds. We also work with other institutions that strengthen our competence and create value for customers. By
continuously questioning and improving how we work, we create sustainable solutions, technologies andbusiness models for the future.
Market - Munters is active around the world in a market driven by strong trends in sustainability and digitization. We focus resources on strengthening our position in areas where we can be a market leader. For
Munters, a market leader not only has a leading position but also higher profitable growth than others in the industry.
Excellence in everything we do - We strive for quality and efficiency in everything we do. We work with continuous improvements in every area. We prioritize
and focus on selected investments and areas of improvement. We follow up, learn, correct and improve.
Sustainability
Sustainability is one of the most important drivers for Munters’ strategy today and in the future. Everything we do has to be sustainable for all our stakeholders
and the environment. Our medium-term financial targets are important to create room for investments in the future. As we work toward these targets, we makevarious decisions and act in the best way to achieve our ambitions. These ambitions contain priorities on resource efficiency, responsible business practices andpeople & society. These three parts today constitute the framework for Munters’ sustainability agenda.

11

Fourth quarter, 2021¨

12

Fourth quarter, 2021

Quarterly overview Group and Segments
Group

2021

2020

2021

MSEK
Order backlog

Q4
4,198

Q3
3,525

Q2
3,018

Q1
2,769

Q4
2,253

Q3
2,664

Q2
2,660

Q1
2,808

Order intake
Net sales
Operating profit (EBIT)
Net income
Amortization and write-down

2,605
2,057
190
133
-18
-9
217
10.6

2,295
1,857
194
138
-18
-3
215
11.6

2,118
1,822
147
84
-21
-91
259
14.2

1,995
1,612
222
160
-17
41
198
12.3

1,611
1,841
250
172
-17
22
245
13.3

1,919
1,833
245
163
-30
4
271
14.8

1,870
1,773
103
39
-20
-138
260
14.7

1,849
1,566
110
57
-20
−
130
8.3

MSEK
External order backlog

Q4
3,498

Q3
2,837

Q2
2,318

Q1
2,129

Q4
1,737

Q3
2,025

Q2
2,003

Q1
2,186

Order intake
External net sales
Transactions between segments
Operating profit (EBIT)
Amortization and write-down

2,110
1,560
2
219
-5
10
-1
214
13.7

1,802
1,338
3
161
-4
1
-10
174
13.0

1,495
1,264
1
185
-4
-15
−
205
16.2

1,483
1,193
2
231
-4
54
−
181
15.1

1,172
1,321
2
234
-4
26
0
211
15.9

1,354
1,270
9
185
-16
3
−
198
15.4

1,231
1,205
2
51
-5
-125
−
181
15.0

1,343
1,127
0
94
-5
−
−
100
8.8

MSEK
External order backlog

Q4
700

Q3
687

Q2
700

Q1
640

Q4
516

Q3
640

Q2
656

Q1
622

Order intake
External net sales
Transactions between segments
Operating profit (EBIT)
Amortization and write-down

508
496
12
10
-6
-16
2
31
6.0

502
519
8
46
-6
-5
-4
61
11.6

636
558
9
-6
-10
-75
−
80
14.1

520
419
6
32
-6
-1
−
39
9.1

450
520
11
67
-5
6
0
66
12.3

575
563
9
90
-5
0
−
95
16.5

656
568
7
87
-5
-6
−
98
17.1

515
440
9
47
-5
−
−
52
11.5

Items affecting comparability (IAC)
Adjusted EBITA
Adjusted EBITA margin, %AirTechItems affecting comparability (IAC)
Re-allocation of internal services
Adjusted EBITA
Adjusted EBITA margin, %2021

FoodTech

Items affecting comparability (IAC)
Re-allocation of internal services
Adjusted EBITA
Adjusted EBITA margin, %

2020

2021

Other and eliminations

2020

2021

2020

MSEK
Order intake

Q4
-13

Q3
-9

Q2
-14

Q1
-8

Q4
-11

Q3
-10

Q2
-17

Q1
-10

Transactions between segments
Operating profit (EBIT)
Amortization and write-down

-14
-39
-7
-3
-1
-28

-11
-13
-7
0
14
-20

-10
-33
-7
0
−
-26

-8
-41
-7
-12
−
-21

-12
-50
-8
-10
-0
-32

-18
-31
-10
-0
−
-21

-8
-36
-10
-7
−
-19

-9
-32
-10
−
−
-22

Items affecting comparability (IAC)
Re-allocation of internal services
Adjusted EBITA

13

2020

Full year Full year
4,198
2,253
9,013
7,348
753
515
-74
-62
889
12.1

7,249
7,015
707
432
-87
-111
906
12.9

2021

2020

Full year Full year
3,498
1,737
6,890
5,355
7
797
-16
50
-11
774
14.4

5,101
4,924
13
565
-30
-95
0
689
14.0

2021

2020

Full year Full year
700
516
2,166
1,993
35
81
-29
-97
-2
210
10.4

2,196
2,091
35
291
-20
1
0
310
14.6

2021

2020

Full year Full year
-43
-48
-42
-126
-29
-16
13
-95

-48
-149
-37
-18
-0
-94

Fourth quarter, 2021

Discontinued operation
2021
MSEK

Q4

Q3

2021

2020
Q2

Q1

Q4

Q3

Q2

Q1

2020

Full year Full year

External order backlog

−

−

−

−

−

−

−

−

−

−

Order intake
External net sales
Operating profit (EBIT)
Amortization and write-down

−
−
−
−
−
−

−
−
−
−
−
−

−
−
−
−
−
−

−
−
−
−
−
−

−
-0
-2
−
−
-2

-1
13
-3
−
−
-3

1
3
-1
−
−
-1

−
-0
0
−
−
0

−
−
−
−
−
−

16
-6
-6

Items affecting comparability (IAC)
Adjusted EBITA

14

Fourth quarter, 2021

Condensed income statement
Q4

Jan-Dec

MSEK

2021

2020

2021

2020

Net sales
Cost of goods sold
Gross profit

2,057-1,434622

1,841-1,235606

7,348-4,9942,354

7,015-4,6652,350

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

-222
-150
-45
-14
190

-195
-144
-41
24
250

-844
-556
-162
-39
753

-818
-538
-186
-101
707

Financial income and expenses
Profit/Loss after financial items

-14
176

-45
205

-84
668

-156
552

Tax
Net income for the period from continuing operations

-43
133

-33
172

-153
515

-120
432

-

-2

-

-6

Net income for the period

133

171

515

426

Attributable to Parent Company shareholders
Attributable to non-controlling interests

133

168

513

420

1

3

3

6

182,266,053

181,423,919

182,207,520

181,545,456

182,513,822

182,151,560

182,548,017

181,557,708

Earnings per share for net income for the period from continuing operations
attributable to the ordinary equity holders of the company:
Earnings per share before dilution, SEK
Earnings per share after dilution, SEK

0.73
0.73

0.93
0.93

2.81
2.81

2.35
2.35

Earnings per share for net income for the period attributable to the ordinary equity
holders of the company:
Earnings per share before dilution, SEK
Earnings per share after dilution, SEK

0.73
0.73

0.92
0.92

2.81
2.81

2.32
2.32

Other comprehensive income that may be reclassified to profit or loss in subsequent
periods:
Exchange-rate differences on translation of foreign operations

86

-232

268

-325

Other comprehensive income not to be reclassified to profit or loss in subsequent periods:
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

-26
10
69

-2
-0
-234

-3
-0
264

-7
1
-331

Total comprehensive income for the period
Attributable to Parent Company shareholders
Attributable to non-controlling interests

203
203
-0

-64
-64
0

779
779
1

95
91
4

Net income from discontinued operations

Average number of outstanding shares before dilution*
Average number of outstanding shares after dilution*

Other comprehensive income*Excluding shares held in own custody.

15

Fourth quarter, 2021

Condensed balance sheet
MSEK

2021-12-31

2020-12-31

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

3,952
1,356
209
467
161
41
19
246
6,451

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

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

350
118
215
3
5
935
376
−
55
96
970
3,123

TOTAL ASSETS

10,742

9,574

ASSETSNON-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 ASSETS

16

Fourth quarter, 2021

Condensed balance sheet
2021-12-31

2020-12-31

Shareholders' equity

4,360

3,746

Non-controlling interests
Total equity

3
4,363

5
3,751

2,636
324
41
140
405
3,546

2,690
299
33
132
371
3,525

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

114
648
771
998
−
40
100
9
153
2,833

96
509
529
742
2
52
111
10
248
2,299

TOTAL EQUITY AND LIABILITIES

10,7429,574

2021-12-31

2020-12-31

Opening balance

3,751

3,627

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

779
40
−
-1
-4
-129
-69
-5
1
4,363

95
−
61
0
-4
−
-43
14
−
3,751

4,360
3

3,746
5

MSEK
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

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

17Fourth quarter, 2021

Condensed cash flow statement
Q4
MSEK

Jan-Dec

2021

2020

2021

2020

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

190

248

753

701

74
6

72
-13

303
16

308
20

-35
235

14
322

-97
974

-1
1,029

Paid financial items

-11

-37

-99

-151

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

-41
184

-37
248

-181
694

-102
776

Cash flow from changes in working capital

232

161

-175

183

Cash flow from operating activities

416

408

519

959

Business acquisitions
Sale of tangible fixed assets
Sale of intangible fixed assets
Investment in tangible assets
Investment in intangible assets
Cash flow from investing activities

-0
-45
-57
-101

0
14
2
-28
-43
-56

2
-138
-204
-341

-9
14
2
-114
-103
-209

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

-0
13
-6
-29
-69
0
-91

61
3
-188
-29
-0
-152

-0
40
2,311
-2,550
-105
-69
-129
-503

61
329
-698
-112
-43
-463

Cash flow for the period

224

201

-324

287

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

440
10
674

790
-21
970

970
28
674

722
-38
970

OPERATING ACTIVITIESINVESTING ACTIVITIESOperating profit in prior period includes the discontinued operation. Isolated cash flow from the discontinued operations is disclosed in a separate note, seepage 24.

18

Fourth quarter, 2021

Parent company
CONDENSED INCOME STATEMENT
Q4MSEK

Jan-Dec

2021

2020

2021

2020

Net sales

−

−

−

−

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

0
-3
-0
-3

−
-5
-3
-8

−
-12
11
0

−
-22
-5
-27

Financial income and expenses

-0

-0

-1

0

Profit/Loss after financial items

-4

-8

-1

-28

Group contributions

8

23

8

23

Profit/Loss before tax

5

15

7

-5

Tax

-2

2

1

2

Net income for the period

3

17

8

-3

CONDENSED STATEMENT OF COMPREHENSIVE INCOME
Q4
MSEK

Jan-Dec

2021

2020

Profit/Loss for the period

3

Other comprehensive income, net after tax
Comprehensive income for the period

−
3

19

2021

2020

17

8

-3

−
17

−
8

−
-3

Fourth quarter, 2021

Parent company
CONDENSED BALANCE SHEET
MSEK

2021-12-31

2020-12-31

4,094
5
4,100

4,099
4
4,104

1
1
13
0
15

0
1
27
62
90

4,115

4,194

2021-12-31

2020-12-31

6
4,136
-128
8
4,022

6
4,136
32
-3
4,171

2
2

1
1

3
18
65
4
91

1
21
−
−
22

4,115

4,194

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 LIABILITIES

20

Fourth quarter, 2021

Other disclosures
ACCOUNTING POLICIESThis 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 andthe Swedish Annual Accounts Act. The accounting principles appliedcorrespond to those presented in the Annual- and Sustainability report2020 (Note 1). As from the first quarter 2021, the cash flow statement
has been changed in regards to interest paid on leased liabilities (priorperiods restated). Previously the item "Repayment of leasing liabilities"
included paid interest. The correction has resulted in that “Cash flowfrom operating activities” has decreased and “Financing operations” areimproved compared with previous reporting, impacting fourth quarter lastyear with MSEK 4.

DEFINITION OF KEY FINANCIAL
INDICATORSThe 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, in thatthey enable an evaluation of the Group’s performance. The financial
metrics are calculated in accordance with the definitions presented on
page 125 in the Annual and Sustainability Report 2020.

TRANSACTIONSWITH RELATED PARTIESAt the annual general meeting in May 2021 it was resolved in accordance with the Board’s proposal on the implementation of a performancebased long-term incentive program (“LTIP 2021” or the “Program”). Previous years long-term incentive programs have been share based,(stock options), however the LTIP 2021 is a cash based program vestingover a three-year period. The participants are expected to invest the net
payout in Munters shares until reaching a defined level of investment.
The Board of Directors nominates the CEO and Munters Group Management, and a total of 62 additional participants has been nominatedby the respective management member. Each group will have max opportunity based on the participant’s percentage of the current (2021)
gross annual base salary.

ENVIRONMENTAL IMPACT
AND ENVIRONMENTAL POLICY
Munters’ operations affect the external environment through air and water emissions, the handling of chemicals and waste, transport of input
goods and finished products to and from Munters factories. Munters iscommitted to constant vigilance regarding the environmental impact of
its operations. Munters is committed to complying with all laws and tocontinuously promoting improvements in all Environment, Health &Safety (EHS) aspects, wherever Munters conducts business. Muntersconstantly seeks opportunities to reduce risk and to create a safer,
healthier, more diverse and more environmentally friendly workplace for21

our employees, customers, communities, and the overall environment.
Munters’ manufacturing facilities all over the world are committed toworking according to an EHS Management Program. The purpose of the
EHS Program is to ensure regulatory compliance, actively prevent injuries, and reduce the impact that our business has on the environment.

RISKS AND UNCERTAINTIESThe 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 theGroup. 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 offailure to comply with relevant regulations in the business ethics area,
e.g. anti-bribery rules.
Financial risks mainly consist of currency, interest and financing risks.
Munters works actively with insurance solutions, and group-wide insurances are governed by central guidelines. This includes for example
coverage for general liability and product liability, property, business interruption, transportation, the liability of Board members and the CEOand employment practices liabilities.
During 2021 the Covid-19 pandemic continued to have an impact on ourbusiness, albeit in a mixed way. In some areas it led to increased demand at the same time as constraints in the supply chain caused longer
lead times. Costs increased for raw material and freights as a consequence of increased demand and the pandemic. We implemented consecutive price increases in 2021 that will come into effect in 2022 due toextended lead times. We expect the supply chain challenges to remain
throughout the first half of 2022.
A more detailed description of the Group’s risks and how they are managed can be found in the Annual- and Sustainability report 2020 on
pages 50-55.

ALLOCATION OF NET SALES
The majority of customer contracts within Munters business segments
AirTech and FoodTech fulfill the requirements to recognize net sales ata point in time, however there are a number of customer contracts within
the segments that requires to recognize net sales over time, especiallyin AirTech segment Data Centers, which is reflected in the below matrix.
In addition to unit/equipment sales, Munters provides different kinds ofservices to customers such as installation, commissioning, startup andmaintenance. Net sales from services are recognized over time as these
services are performed. The services transferred over time in the matrix
below is not equivalent to the net sales from Services mentioned on thebusiness segment pages earlier in this interim report. This is due to thefact that part of the net sales within Services are recognized at a point in
time, such as spare parts. Net sales from the discontinued operation is
all recognized over time.

Fourth quarter, 2021

Q4 2021MSEK
Goods transferred at a point in time
Goods transferred over time
Services transferred over time

AirTech
1,103
328
130
1,560
−
1,560

Total
whereof related to the discontinued operation
Total net sales from continuing operations

FoodTech
92
366
38
496
−
496

Jan-Dec 2021
Total
1,195
693
168
2,057
−
2,057

AirTech
3,610
1,298
447
5,355
−
5,355

Q4 2020
SEKm
Goods transferred at a point in time
Goods transferred over time
Services transferred over time

AirTech
906
264
151
1,321
0
1,321

Total
whereof related to the discontinued operation
Total net sales from continuing operations

FoodTech
473
7
40
520
−
520

FoodTech
1,403
439
150
1,993
−
1,993

Total
5,013
1,737
598
7,348
−
7,348

Jan-Dec 2020
Total
1,379
271
191
1,841
0
1,841

AirTech
3,136
1,408
397
4,940
16
4,924

FoodTech
1,883
59
150
2,091
−
2,091

FoodTech
5,019
1,466
546
7,031
16
7,015

FAIR VALUE OF FINANCIAL
INSTRUMENTS
MSEK
Opening balance
Payments
Discounting
Exchange-rate differences for the period
Closing balance

2021-12-31 2020-12-31
121

142

−

-9

4
13
137

4
-16
121

The Group’s put/call acquisition option, recognized at fair value in thestatement of financial position, are measured according to IFRS 9 andare categorized in level 3 in the fair value hierarchy. The opening balance for the period relates to the put/call option from the acquisition of
MTech Systems in 2017, which is based on EBITDA for the 12 months
prior to execution and matures in January 2023. The change in the period relates to a discounting effect and currency translations on theput/call option.

The Group’s derivatives, recognized at fair value in the statement of financial position, are measured according to IFRS 9 and are categorized
as level 2 in the fair value hierarchy. The derivatives amounted to MSEK
1 (0) in financial assets and to MSEK 0 (2) in financial liabilities.

Munters deems that the interest rate on interest-bearing liabilities are inline with market terms at December 31, 2021, and the fair value at theend of the reporting period therefore in all material aspects corresponds
to the carrying amount.

DISCONTINUED OPERATIONS

tions with the unions. The production ceased in 2019 but minor installation services remained at customer sites during 2020. The table below
shows the income statement for the discontinued operation as well as
the cash flow from operating activities.

On September 9, 2019 Munters decided to close its European Data
Center factory in Dison, Belgium, following the finalization of negotia-

22Fourth quarter, 2021

Q4
MSEK

Jan-Dec

2021

2020

2021

2020

Net sales

−

-0

−

16

Cost of goods sold
Gross profit

−
−

-1
-1

−
−

-11
6

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

−
−
−
−
−

2
-1
0
-2
-2

−
−
−
−
−

-8
-2
0
-2
-6

Financial income and expenses

−

0

−

-0

Profit/Loss after financial items

−

-2

−

-6

Tax

−

0

−

0

Net income for the period from discontinued operations

−

-2

−

-6

Cash flow from operating activities

4

-40

39

-75

RECONCILIATION OF ALTERNATIVEPERFORMANCE MEASURES
Below is a reconciliation of Munters adjusted performance measuresfrom items affecting comparability. In the fourth quarter 2021, these
items mainly originated from the activities connected with the strategy
implementation within business area FoodTech, communicated througha press release in May 2021, as well as from implementation activities
related to the refined strategy within AirTech communicated during lastyear. In addition, Munters discontinued operation from previous years
related to the Data Center business in Dison has released provisions of
MSEK 16 confirmed no longer required. The operations in Dison has
ceased and Munters is no longer reporting any discontinued operation,
hence why these released provisions are adjusted for comparability.
Munters has also incurred M&A activities of MSEK -4. Corona-related
IACs affected the fourth quarter with MSEK -1.

For the full year, in addition to the above, Munters incurred costs related
to a legal case outside the ordinary business operation connected with aprevious customer claim that was finally settled in February 2021, andreceived an insurance compensation linked to an exchange of specificcomponents at a customer site within the European Data Center business (where costs for the exchange amounted to MSEK 116, reported
during the third quarter of 2019).
During the fourth quarter as well as the full year last year Munters mainly
incurred IACs related to the implementation of the refined strategy within
AirTech and Corona-related IACs.
The reconciliation below does not include the discontinued operation.

Q4
MSEK

Jan-Dec

2021-12-31

2020-12-31

2021-12-31

2020-12-31

Adjusted EBITDA

274

300

1,105

1,126

Amortizations and write-downs of tangible assets

-56

-55

-216

-221

Adjusted EBITA

217

245

889

906

Amortizations and write-downs of intangible assets

-18

-17

-70

-87

Adjusted operating profit (EBIT)

199

228

819

818

Restructuring activities
Gains/losses from sale of fixed assets
Acquisition-related costs in a business acquisition
Legal cases outside the ordinary business operation
Proceeds insurance reimbursements from legal cases

-20
0
-4
0
0

10
6
0
-8
0

-128
0
-6
-7
61

-124
6
0
-14
0

Received government grants/government assistanceCorona related expenses
Earned refund of sales tax in Brazil
Other
Operating profit (EBIT)

1
-2
0
16
190

6
-4
13
0
250

3
-5
0
16
753

20
-12
13
0
707

23

Fourth quarter, 2021

RECONCILIATION OF NET DEBT
AND LEVERAGE
The reconciliation of net debt and leverage below includes the discontinued operation.

2021-12-31

2020-12-31

-674

-970

2,362
274
303

2,440
250
285

Interest-bearing liabilities, excluding leases
Interest-bearing lease liabilities
Accrued expenses
Provisions for pensions

11
102
5
6

14
82
9
6

MSEK
CURRENT ASSETS
Cash and cash equivalents
NON-CURRENT LIABILITIESInterest-bearing liabilities, excluding leases
Interest-bearing lease liabilities
Provisions for pensions
CURRENT LIABILITIES

Total Net debt

2,389

2,116

Operating profit (EBIT)
Depreciations
Amortization and write-down
EBITDA
Items affecting comparability

753
-228
-74
1,056
-49

701
-221
-87
1,010
-111

Adjusted EBITDA, LTM

1,105

1,121

2.2

1.9

Net debt/Adjusted EBITDA, LTM

24

Fourth quarter, 2021

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

INFORMATION AND REPORTING DATESContact person:

Ann-Sofi Jönsson, Head of 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 February 4, at 9:00am CEST, when President and CEO Klas Forsström, together withGroup Vice President and CFO Annette Kumlien, will present the report.
Webcast:https://tv.streamfabriken.com/munters-q4-2021
Dial-in number for the telephone conference:
SE: +46 8 50558350
UK: +44 3333009262
US: +1 6319131422
This interim report, presentation material and a link to the webcast will be available on https://www.munters.com/en/investor-relations/____________________________________________________________________________________________________________________________
Financial calendar:
The week that begins 28 February 2022: Posting of Annual Report 2021
April 22, 2022: Interim report January-March 2022
May 18, 2022: Annual General Meeting 2022
July 15, 2022: Interim report January-June 2022
October 21, 2022: Interim report January-September 2022
February 9, 2023: Full year report January-December 2022____________________________________________________________________________________________________________________________
This information is information that Munters Group AB is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact person set out above, at 07.30am CEST on February 4, 2022.
Munters Group AB, Corp. Reg. No. 556819-2321
About Munters Group
Munters is a global leader in energy efficient air treatment and climate solutions. Using innovative technologies, Munters creates the perfect climate forcustomers in a wide range of industries. Munters has been defining the future of air treatment since 1955. Today, around 3,300 employees carry out manufacturing and sales in more than 30 countries. Munters Group AB reported annual net sales of more than SEK 7 billion in 2020 and is listed on Nasdaq
Stockholm. For more information, please visit www.munters.com.
Every care has been taken in the translation of this interim report. In the event of discrepancies, the Swedish original will supersede the English
translation. The addition of the totals presented may result in minor rounding differences.

25