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

A strong company – but disappointing performance since IPO•Global player in niche markets•Full Potential Program to seize opportunities

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

Operations - Global scale and regional agility
Tobo, SE• 18 plants and spare part
distribution centers

Horstmar, DEDison, BE• 7 assembly and logistic hubs

LansingSelma• ~1800 Employees• Global leverage and regionallyoptimized supplier baseAmesbury
Hrusky, CZ
Buena Vista Chiusavecchia/Pieve, IT

Ft MyersMonterrey, MX

Beijing
Jiang Yin
Tel Aviv, IS

ChashanMumbai, IN

Araucaria,
BR

Manufacturing Site

2

Our improvement journey continues
1955-2011
Distributed Manufacturing
and Sourcing
 Local optimization and localprocesses

2011-2018
Global Operations
Reduce Cost2019  future
Enable Business
OPERATIONAL PERFORMANCE Growth through acquisitionsA.
A Customer needs comes first!

 Scattered Supplier-base Global sourcing - Category waveexecution

 Common IT platforms initiated Capacity investments

B.
B Scalability to support Profitable Growththrough Stability in Performance, Solid
processes supported with IS/IT, Sourcing andManufacturing leverage

 Lean Journey started (MPS) Main focus on Ad Hoc Cost reduction,sometimes increasing Loss andWaste.

3C.
C Towards World Class performance withMunters Production SystemD.
D Working Capital ExcellenceACustomer needs come first• Quality ZERO defect mindset to protect Customers• Customization excellence - supporting full product lifecycle‒ Product project readiness and early involvement in projects – Right from start!
‒ Optimized workflow for Standard, Configured and Customer Engineered products• Optimized Supply-chain based on well defined customer and market needs(e.g. lead-time) supported by S&Op process• Determined to deliver according to customers expectations• Clear, honest, immediate and fact based communication
4

B

Create operational scalability to support profitable growth
PHASE 1: STABILITY•••••

5Define and implement known
best practice with rigorSecure quality improvements
and production stability
Define clear roles andresponsibilities
Ensure Master Data Quality
Synchronized demand and supply(S&Op)PHASE 2: PROFITABILITY•••

Leverage volume of scale inSourcing and Manufacturing
Extensive supplier and partnumber reduction
Digitalized End to End Supply
Chain - One Information Chain

PHASE 3: GROWTH••

Leverage improvements acrosslarger volumes
Implement prioritized Expansion
and Localization projects

CTowards World Class: Focused improvements targeting cost savings
to counter inflation and more every year
Munters product cost structure
Direct material

Variable costs

Fixed costs

Warranty

Total product costs

6~4B SEK

Negotiations and category wave execution• Supplier days with focus on the most important suppliers andcomponent categories (First wave)• Volume leverage – reduced parts• Reduced number of suppliers• Technical improvements
Continuous Improvements• Improvements in Logistics and in Plants supported byMunters Production System (MPS)
Quality improvements• Protect the customer• Internal loss-cost improvements

C

We are aiming towards world-class level of manufacturing
Manufacturingperformance(from low to high)Wide spread
between lowand highperforming
factories
today

Primarily raise
performance of
low-performing
factories

Munters20187

Munters2021

Improve acrossfactories – withthe best ones
reaching“world-class”
level

Munters2025

World-classmanufacturers