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

2

FoodTech – We help tofeed the world by changing
the way we farm3Leading industry player with a solid growth over last years
Business Area overview

Selected customers

The only global supplier offering a full suite of climate control
solutions for poultry, greenhouse, dairy and swine industry

Global leader in markets that accounted for almost 2/3 of Net Sales
in FY2018

Financial performance (Net Sales, mSEK)CAGR +9%

Industry-leading solutions for connecting the supply chain andsoftware offering for food producers across the globe

CAGR +30%

2500
2000
1500

11%

13%

20%

16%
13%

12%

10%

1000

5%

500

Global reach through extensive network of distributors

4015%

2014

2015
2016
2017
Net sales, mSEK
Adjusted EBITA margin

2018

0

Supporting our customers with climate and data-based optimization

5

ACreate the perfectclimate

Offer equipment and solutions to create the optimal climate forlivestock and greenhouse production, including both hardware andknow-how/design

B

Guide customers
through data

Offer services and software to support food producers to optimize
their whole value chain, including both live operations andprocessingA

We create the perfect climate with the help of a broad product portfolio

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B

We guide our customers with the help of world leading software
Software for managing the supply chain of food producers• Software for integrators covering the whole supply chain includinge.g., production of feed, genetics, processing, and logistics• Software modules include e.g., functionality for• Managing inventory (e.g., eggs, feed)• Forecast input and output• Production planning• Cost calculations• Analyzing real-time farm data
• Projects often include software, implementation and maintenance andinclude the sharing of best practice from the industry• Ongoing shift from perpetual licenses and on-site installations
towards cloud-based solutions and Software as a Service7

Global trends supporting the growth in the FoodTech market
Key end Market Growth CAGR in 2018-2021

Key end market Outlook

6-7%• Underlying megatrends drive demand• A growing world population• Increasing GDP (richer people eat moremeat and vegetables)• Land scarcity – need for increased
efficiency with more advanced technology• Layer - Trend towards cage-free egg production• Within swine segment, low growth in consumer
demand, but production moves to production withadvanced ventilation20182021• Greenhouse segment is growing >10% with shift
to more advanced technology / climate control

Munters stand out among competitors by having leading, energy-efficient technologies
and superior application expertise
8Munters position#1Broiler#1Layer#1

Food Chain SW

#2

Swine

Business portfolio overview – FoodTech with several strong positions
BusinessPoultry(broiler and layer)
Create Your Swine
Perfect
ClimateSize inMunters

OurperformanceMarketattractiveness

Opportunities•Leverage strong position in layer segment
where there is an ongoing shift to cage-free egg
production requiring investments in new barns•

Shift to more advanced climate control including
use of positive pressure (where Munters ismarket leader)•

Grow share of wallet (develop more productsand/or acquisitions)•

Grow in new segment (small and medium sizecustomers) with the new generation cloud-based
software Amino

L

M

GreenhouseS
Guide
customers
throughdata9

SoftwareS

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

Negative impact from African Swine Fever – but it can create
opportunities for Munters long-term
New cases of ASF still being discovered• The outbreak of African Swine Fever (ASF) in China officiallystarted in August 2018 and new outbreaks are still
confirmed even though less cases than in Q4 last year
• The outbreak is likely to reduce the Chinese pig
production with 30%, which is the largest in the world• The outbreak have lead to a sharp decrease ininvestments in infrastructure for Swine production in ChinaThe impact is difficult to predict, but not only negative• Due to the reduced production in China, pig prices haveincreased rapidly since March• The impact from ASF could last for a long time andconsequences are difficult to predict – but changes in theindustry could be positive for Munters:– Industry consolidation - large modern farms replace small– Shift of trade with more export to China from other countries– Increase the demand for other protein in China, primarily
chicken

Negative outlook on short term, however medium to long term, the industry consolidation and shift tomore modern farms are likely to create opportunities for continued growth
10FoodTech growth enabled through enlargement of the portfolio,expansion into new geographies and by acquisitions
Key achievements over last five years•

Increased the share of sales from Asia from 14% to 25%, primarily in China••

Added new product lines, e.g., inlets, direct driven fans, heat exchangers etc.
Launched offering (next generation controllers, sensors and communication hubs) for
connecting the supply chain
Developed next generation software to be sold as Software as a Service

Geographicexpansion

Portfolio expansion••

Strategicacquisitions

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Acquired companies that strengthened our offering - Reventa (products for coldclimate), MTech Systems (software for integrators)

Strategic priorities for the future1

Create the perfect climate for our customers

2

3

12

Develop our distribution partner network

Guide our customers through data - Connect their whole supply chain

3

Guide our customers through data –Connect their whole supply chain

SonarEcho is fundamental for connecting (realtime) the whole supply chain for food producers effectively• Our existing software offering enables food producers to connect,control and manage their supply chain, e.g., manage inventory offeed, medicine, and finished products, but also plan and forecast theproduction• Adding our SonarEcho hardware (sensors and communication hubs) tofarms enable real-time data from the whole supply chain• Benefits for the food producers include• Reduced waste of feed
• Optimized logistics• More precise planning of production• Reduced need for farm visits• Benchmarking and better control of high and low performing farms13

We are confident about the future for FoodTech• Active in markets with solid growth driven by the need for increased productivity,
food safety, animal welfare and sustainable food production• Over the last years, we have successfully expanded geographically andexpanded our offering• We are now in a market leading position with a comprehensive offering to control
the climate in a farm as well as software for managing and optimizing the whole
supply chain of food producers• We will further develop our offering and offer the Perfect Climate, and we see
opportunities to grow in the greenhouse segment, advanced climate control andthrough new services based on collected data from the supply chain
14