Munters
Capital Markets Update, 11 May, 2021
Global leader of energy-efficient and sustainable climate solutions

Klas Forsström, President and CEOAgenda - Capital Market Update 2021
Munters – a global leader in climate solutions
Strategy execution
Driving value
Business areas
Summary and Q&A

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FOR CUSTOMERSUCCESS AND A
HEALTHIER PLANET
Curiosity and an ambition to create pioneering technologies are a part of ourDNA. Our climate solutions are mission-critical for our customers’ success andcontribute to a more sustainable planet.

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We make a difference in the world

Munters is a market leader insecuring a dry environment for theglobal lithium battery production
5Munters systems reduce 99%of sulphur oxides from coal-fired
power plants

1 in 7 meals worldwide has been
made from food produced in farms
where Munters controls the climate

Global leader in climate solutions- Around 3,500 employees- Two business areas AirTech and FoodTech- 17 plants, 4 assembly hubs
Tobo

- Sales offices in approx. 30 countries
around the world

HQ Kista

Selma

MSEK

8000

Net Sales 5 years
6% CAGR

6000

633%
2016 2017 2018 2019 2020

AmericasMonterreyAmesbury
Buena Vista

HorstmarHruskyChiusaveccia & Pieve de Treco

Atlanta

Tel Aviv

Fort Myers

Mumbai (Ambernath)

Querétaro

Beijing
Jlang YinTokyo

ChashanPune
Blumenau

43%

20000

Net Sales per region 2020
23%

4000

Hamburg

Lansing

Araucaria
Johannesburg

Software dev. center

EMEA

APAC

Manufacturing site
Assembly site

AirTechFoodTechMunters on a journey• Efficiency improvement initiatives continues

2021• Major project to secure end-to-end information/value chain
efficiency across all Munters• Working capital focus• Increased focus on R&D• AirTech delivery on strategic review 2020
• FoodTech strategy review• New strategic priorities launched2019• Former business area structure into twobusiness areas: AirTech and FoodTech• CEO and CFO recruited• Strategic review of Data Centers andMist Elimination• Data Centers Europe closed

72020• Organizational re-design: business areas to own full value chain• Efficiency improvement initiatives• Working capital focus• Management team expanded• Reduction of product portfolio initiated• AirTech strategic review

Munters two business areasAirTech
Share of Sales

Energy-efficient, safe and reliable climate solutions forindustrial applications where control of moisture content
and temperature in production are mission critical.
AirTech organization:
Regions: Americas, EMEA and APAC;
in addition (outside of the regional matrix):
Data Centers and Mist Elimination

70%

FoodTech
Share of Sales
30%

We provide innovative, energy-efficient climate
solutions for livestock farming and greenhouses aroundthe world, as well as software for controlling andoptimizing the entire food production value chain.
FoodTech organization:
Regions: Americas, EMEA and APAC;
in addition (outside of the regional matrix): MTech Systems

8Core technologies – dehumidification and evaporative coolingCore Technologies

AirTech offering

Evaporative cooling pads

Indirect evaporative Dedicated outdoor air systems
coolers (Oasis)

High-efficiency
fansCooling Systems

Controller concept

Dehumidifiers

Air inlets

Sensors and software

The above products are examples of products in the Munters offering.
9FoodTech offering

Retrofit / Upgrades

Agenda Capital Market Update 2021
Munters – a global leader in climate solutions
Strategy execution
Driving value
Business areas
Summary and Q&A10Munters – unique application knowledge
MUNTERS OFFERINGCUSTOMER NEEDS•

Unique application knowledge•Proven energy efficient products
and solutions

Increased energy
efficiency and higheryields•

Strong global market position,with local presence

MEGA MARKET TRENDS

Climate change
Increased regulations
Digitalization11•

Large installed base•Global Services offering•

Leading position in digitalizationof the food production chain

Less waste

Improved animal andhuman healthFocus in 2020 and beyond
Purpose:For customer success and a healthier planet
Strategic priorities:

12Focus areas

Customers

Improve go-to-market models and pricing strategies

Innovation

Focus investments in R&D and product portfolio alignment
and adjustment

Markets

Growing in prioritized markets and strengthen Services

Excellence ineverything we doContinuous improvements, lean activities in complete value
chain, manufacturing footprint and working capital

PeopleLeadership and competence development in line withstrategic priorities

Customers
Munters ambition: Be the customers trusted adviser for energy efficient production
processes related to climate control
Focus areas
Customer value

Pricing strategies

Go-to-market models

132020-2021• Commercial excellence roleappointed in 2020
• Value based selling incl.
pricing strategies being
introduced and on-goinganalysis of go-to-market
models• Alignment of above strategies
across the company• Way forward set for both
AirTech and FoodTech

Beyond• Improved resource
efficiency gains andmaximizing yield from
Munters solutions• Commercial excellence
throughout the valuechain• Value selling integrated
part of Munters culture –delivering minimum
additional annual +0.51.0% net price change

Sustainability focus:

Collaborating with customers is critical for us
on helping them achieve their sustainability
targets, including in water and energy
consumption as well as animal health in foodproduction.

Customers

Sustainable lithium battery production saves energy• Global leader in dehumidification solutions for lithium battery
production• Dehumidification with stable climate control critical toproduction processes, which require dry air to increase battery
quality and performance• Advanced services to maximize the customers production
times and product quality• All top 5 Chinese manufacturers placed orders for more thanMSEK 200 in Q1• Munters collaborates with University of Birmingham on
research for next generation battery production
Stable, mission-critical climate control
for battery production ensuring high energy efficiency

Munters dehumidification solution lifted up toUniversity of Birmingham's battery research lab

Innovation
Munters ambition: Create the solutions of tomorrow, today

Focus areas
Focused R&D
investments
Product portfolioalignment andadjustment
Innovation
process andmanufacturing
technologyalignment*SKU – Stock keeping units
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2020-2021• Focus on core technologies andsustainability• Digitalization journey on-going• Continued focus on modularization• Product portfolio (SKU) reduction of>35%• Reduction of components of appr. 5%• Increased headcount in R&D, researchlab inauguration in Sweden

Beyond• Target to reduce
product assortment
by 40% in 2022*• Ambition set toreduce components
by 25% end 2023
• Core product offering
modularized• Offering connectedvalue chains forcustomers

Sustainability focus:

Reduce the climate solutions resource
consumption, which contributes to customers
being able to achieve their environmental goals

Markets
Munters ambition: Market leader in our prioritized markets and segments.

Focus areas

Prioritized markets

Services

2020-2021• Prioritized markets set for
AirTech and FoodTech• Footprint optimization in order toserve prioritized markets better• Market position 1-3 inprioritized markets• Exit non-core Commercials inthe US• Higher degree of data
driven products andsolutions• Increased focus on connectivity- data driven products andsolutions• Services represent
more than 30% of netsales• Services growth16

BeyondSustainability focus:

Reduce the climate solutions resource
consumption, which contributes to customers
being able to achieve their environmental goals

Excellence in everything we do
Munters ambition: Never settle for good, constantly improve and strive forexcellence in every step of the value chain.
Sustainability focus:
Focus areas
Best practices
processes
Lean and Quality focus
throughout the wholevalue chain
Optimize manufacturing
footprint

172020-2021• Action plan set for reaching leading
ways-of-working processes• Focus on working capital, quality andmanufacturing footprint efficiency• Actions taken to further optimize
footprint efficiency, i.e. expansion of
Data Centers US production in 2020and decision about new production
location Data Centers US in 2021

Beyond• Alignedprocesses
throughout thewhole value chain• Optimized
working capitaland;• Footprint

We emphasize responsible business practices,increased diversity, health and safety, lower
carbon emissions and positive contributions tothe communities where we live.

Excellence in everything we do

Delivering on our strategic journey2020
1st step in strat. implementation
Feb: Strategy launch, org. change• Launch new purpose“For customer success and a healthierplanet”• Set strategic priorities incl. stronger
focus on Sustainability• Organizational change: aligning value
chain in business areas with clear
business ownership

182021
2nd step in strategy implementation
July: Sharpening measures, mainly AirTech• Exit non-core part of thecommercial business in the USwithin business area AirTech• AirTech to expand Data Centers
US manufacturing in Texas• In the Netherlands, operations
consolidated• In addition, several othermeasures taken to ensure
execution of the strategy

3rd step in strategy implementation
May: Accelerate strategy impl., FoodTech
Create a unique connected offering• Implementationaccording to plan,
expected closure
by year end• Strong growth andprofit Q1 forAirTech•1

Accelerate thedigital journey•2Strengthen footprint
and offering

PeopleMunters ambition: Be the employer of choice

Our values

2020-2021

Sustainable valuecreation• New organizational structure andleadership team in place

Passion for results
There is always abetter way
Team spirit• Further improvements to Munters
Academy, several training courses
launched for example Munters
Compass* and a mentor
programme• Code of Conduct training• Employer survey• Education in unconscious bias,diversity, inclusion and antiracism

BeyondSustainability focus:• Evolving the Muntersculture from good to great• A high level of employee
engagement andcollaboration• An inclusive & equal work
environment with focus ondiversity• A safe place to work

*In order to drive transformation Munters introduced change management learnings called Munters Compass to all employees which comprises of training
modules (Munters Compass Toolkit) and a change champion network (the Navigator Network). ** TRIR = Total Recordable Incident Rate
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An inclusive & equal work environment withfocus on diversity.

2020 (2019)
Percentage of women:

21% (21)

Percentage of women in mgt:

22% (21)

TRIR**

1.2 (2.7)

Aiming towards zero impact on the planet
Sustainability is one of the most important drivers for Munters’ strategy today and inthe future.
Focus areas

2020-2021

Increased focus on
innovation• Increased use of electricity fromrenewable sources to 50%

Intelligent operations• Expanded scope of suppliers
required to sign our Code of
Conduct to also include indirectmaterial suppliers, achieved 100%
• Lower rate of accidents in 2020

Create impact acrossour value chain20• Integrating Sustainability intooverarching strategy andstrengthen governanceBeyond• Aim towards circularity by
reducing waste, improverecycling and reusability• Net zero emissions from ouroperations by 2030
• Partner with our suppliers andcustomers

We are part of the solution to a better world
And contribute through:• Our offerings• Our operations• Our employees and culture• Our commitment and society involvement

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