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

AirTech – Energy-efficient,safe and reliable climate
solutions in which control ofmoisture content andtemperature is mission-critical
2

AirTech is a global leader with a blue-chip customer baseBusiness Area overview

Selected customers

Global leader in dehumidification and cooling solutions fordemanding industrial applications#1 position in markets representing majority of AirTech
FY2018 net sales

Financial performance (Net Sales, mSEK)CAGR +8%
CAGR +18%

Multi-year relationships with diverse blue-chip customer base

6000

11%

14%

15%

12%
10%

4000

9%

2000

Strong Net Sales growth

05%

2014

2015

2016

Net sales, mSEK

310%

2017
Adjusted EBITA margin20180Getting the perfect, sustainable climate is mission-critical across arange of industries
Poor humidity and climate control cause…

With perfect climate…

Lithium
Battery mfg.

-

Low battery performance
Production safety issues-High quality batteries
Low energy consumption and safe production

Pharmamfg.

-

Clogging of powder
Non-compliant production (scrap batches)-

Consistently high product quality
Efficient and sustainable production

Processing(food etc.)-

Mould and bacteria growth
Low product quality and scrap-

Food safety assurance
Efficient and sustainable production

Munters stand out among competitors by having leading, energyefficient technologies and superior application expertise4

We provide a broad offering of sustainable solutions

VOC elimination rotors

Portable / Small

Dedicated Outdoor Air
Systems

Spare parts

Dehumidification rotors

Stand-Alone

Dehumidification
Systems

PrimaCaire
maintenance contracts

GlasDek humidification
pads and sub-systems

Mobile (rental)

Dehumidification
systems with controls
and piping

Retrofits / Upgrades

Systems for humidity &temperature control

Services

Components
Sold to OEMs

5Dehumidifiers andother units

Typically sold to end customers

Strong underlying demand growth – in niches where we are leaders
Key end Market Growth CAGR in 2018-2021

Key end market Outlook

Munters position

5%• Industrial: Lithium-ion Batteries – Investment in R&D
and production facilities to support Electric Vehicles,
Energy Storage and consumer goods#1• Industrial: Processing of e.g. food – Stable growth tied
to population increase, urbanisation and affluence acrossAsian countries#1• Industrial: Pharma – Stable growth from increased life
expectancy and developing countries trending towards
Western medicine#2• Industrial: Other – Continued stable growth with acontinued demand for production efficiency#1• Commercial: Supermarkets – Main growth driver will
come from retrofit and replacement business with supportof DOAS technology and trends

#1

2018
62021

Note: Graph does not cover areas under strategic evaluation (i.e. former Mist Elimination and Data Center Business Areas)

Business portfolio overview – AirTech with several strong positions
Business
Industrial
Commercial/Supermarkets
Components to OEMs
Services

7

Size inMunters
XLMMLOur
Marketperformance attractiveness

Opportunities-Drive growth globally, with a focus on niches and geographieswith a special potential-

Business is almost a “US-only” business
Secure profitability as top-most priority-

Supported by strong underlying growth (e.g. LiBat for rotors
and Data Center for pads) – continue to drive growth-Continue to drive growth globally

Note: “Size in Munters” (XL: >1500 mSEK, L: >750 mSEK, M: >500 mSEK, S: <500 mSEK), “Our Performance” reflects margin realization and market position,“Market attractiveness” reflect overall growth and other attractiveness factors

Strategic priorities/opportunities for the future1Continue pursue Service growth

238Prioritize resources to attractive and growing markets and segments– e.g. LiBat and China

Improve offering with a priority to Munters core technologies, service and know-how

We have successfully grown the Servicebusiness – and we see more growth opportunities
We have proven success

We are confident we cando much more…
• Installed base penetration is still
relatively modest

Service Net Sales (mSEK)+14%• Customers increasingly see benefit of“peace-of-mind” and reliability20152016

20172018

Installed base penetration (%)
22%918%19%

20162017

2018

Note: Growth number in circle refers to annual CAGR

• Opportunities for new services withconnected products

1Continue pursue Service growth…and we have actions in place to pursue
profitable growth
1. Grow the core
• Continue Service technicians hiring• Roll out Service sales training
2. Transform the core
• Implement new Field Service Management(FSM) system• Product Management to improve customer
centric positioning• Implement separate Spare Parts inventory
3. Scale the New• Develop new Service products including
connected/IoT offerings and upgrades of nonMunters equipment• Capture the rental and Climate as a Service(CaaS) market

Prioritize resources to attractive and growing
markets and segments

2Identify and pursue growth in markets with attractive opportunities
Market (example)

Current performance

Why we find it attractive

Net Sales (mSEK)• Market growth at double-digit
pace driven by battery boom
• Strict humidity requirements –and need for reliable andsustainable solutions• Munters already a leading player
with strong customer base•••

Dedicated expert supporting all countries
Development of new products
R&D development of new technology• Above market-average growth• Increasing understanding ofimportance of humidity control• Scattered market where Muntersholds a leading position••Local management team focused on China
Development of new products for specificregion
Product Management and Marketing focus
for specific region+34%

Lithium battery
manufacturing
2015

2016

2017

2018

Net Sales (mSEK)
+19%

China

2015

2016

2017

Key activities to drive growth

•

2018

We continuously monitor markets to identify upcoming
opportunities in our end markets
10Note: Growth number in circle refers to annual CAGRImprove offering with a priority to Munters coretechnologies, service and know-how

3

We are continuously investing in R&D to stay ahead of competition
Prioritizing key R&D areas
1.

Launch next generation of core components
within pads and rotors

2.

Launch connected offerings

3.

Launch smarter products through new hardware
platform and future-proof software

A range of important product launches

DSS – Desiccant System Solution
DryCool ® Focus
A combination of desiccantdehumidification and totalenergy recovery leading toreduced cool and re-heat.

GreenDry ®
Newly designed air-handler
with double wall construction
providing hygienic interior.

11A new and improved desiccantsystem with a range of pre andpost treatment options.

FreeDry ™
A new and improved unit
specifically designed for icerinks.

MCC – Munters Connected Climate ®
This is Munters newest addition in thedigital world. It enables our units to beconnected to the cloud and to control
our units remotelyWe are confident about the future for AirTech• Active in markets with solid growth driven by pursuit for sustainability andproductivity• Market leading position in most of our customer industries with a strong brandand blue-chip customer base
• Strengthened organization and improved governance with clearer
responsibility for the regions to drive the business• Prioritizing resources to identified markets and sub-segments where we see
the highest growth – including continued focus on our service business12