Q1”Another quarter ofrecord high order intake
driven by growing megatrends ”

January-March 2022
■ Order intake and net sales increased mainly driven by megatrends in digitalization and electrification in business area AirTech.
■ The adjusted EBITA-margin was positively impacted by increased customer prices, offset by heightened supply chain constraints
due to the war in Ukraine with increased energy, raw material prices and freight costs. Also, a weak Chinese swine market in
FoodTech had a dampening effect.
■ Leverage (net debt/adjusted EBITDA, LTM*) increased as net debt at end of March increased compared to December 2021. The
increase was attributable to increased lending to finance the acquisition of EDPAC in January and inventory build-up as aconsequence of volume growth.
■ The war in Ukraine has led Munters to suspend all business activities with Russia. Total items affecting comparability (IACs) of
MSEK -29 were identified in the first quarter related to the war. IACs of MSEK -18 were recorded as a provision in the quarter and
MSEK -11 will be taken as incurred. The majority of the IACs are related to FoodTech and comprises inventory write-downs, a rightsizing severance provision and costs associated with the adaption of the strategy.
Financial summary

Q1

LTM*

Full year

MSEK

2022

2021

∆%

Apr-Mar

2021

Order intake

4,133

1,995

107

11,151

9,013

32

7,857

7,348

Net sales

2,121

1,612

Growth

32%

3%

11%

5%

of which organic growth

16%

14%

10%

10%

of which acquisitions and divestments

5%

-

1%

-

of which currency effects

10%

-11%

0%

-5%

Operating profit (EBIT)

134

222

-40

665

753

Adjusted EBITA

201

198

2

892

889

Adjusted EBITA margin, %

9.5

12.3

11.4

12.1

Net income

102

160

Earnings per share before dilution, SEK

0.57

0.88

Earnings per share after dilution, SEK

-36

457

515

2.51

2.81

0.57

0.87

2.51

2.81

Average number of outstanding shares before dilution

181,592,723

181,920,817

182,125,497

182,207,520

Average number of outstanding shares after dilution

181,826,956

182,762,723

182,509,384

182,548,017

-26

88

405

519

2,938

2,208

2,938

2,389

2.6

2.2

Cash flow from operating activities
Net debt
Net debt/Adjusted EBITDA, LTM* Last twelve months

First quarter, 2022»

CEO comments
Continued strong order intake driven by growing megatrends
Demand for our energy-efficient climate solutions remains high driven by the strong megatrends of digitalization andelectrification. As a result, business area AirTech reported another quarter with record high order intake, including thelargest order ever won for Munters. This order, comprising our customized climate control solutions to a leading data
center colocation operator in the US, has a value of approximately MUSD 115. The Irish data center equipment manufacturer, EDPAC, which we acquired in January, contributed positively in the quarter. Services continued to show
strong growth in line with our growth strategy for this area. Business area FoodTech also had strong growth, driven
by good development in Americas, partly offset by continued weak demand in the swine segment in China. MTech
Systems, a company within FoodTech, signed two larger contracts comprising its SaaS solution in the quarter, which
will further strengthen our leading position in the digitalizing of the food production value chain.

“Another quarterwith record highorder intake,including thelargest orderever won for
Munters”

No material effects from the war in Ukraine
The current tragic situation with the war in Ukraine and imposed sanctions on Russia has led Munters to suspend allbusiness activities in Russia for the foreseeable future. Munters has had approximately 1.5% of net sales p.a. in Russia and no employees.
Price increases made in 2021 coming through and adjustment continues
As anticipated, parts of the price increases in 2021 had a positive effect in the quarter. As earlier communicated,most of the price increases done in 2021 will take effect during 2022 due to longer lead times. As a result of the war
in Ukraine supply chain constraints were intensified. To reflect this, we continued to adjust our prices in the quarter
intending to fully cover increased costs as well as balancing in- and outflow of goods to manage lead times. We expect supply chain challenges to remain as a consequence of the war in Ukraine and lingering effects from the pandemic.

Klas Forsström, President and CEO

Investments for growth
In the quarter we continued to invest in expanded and optimized production capacity, further enhancement of ourleading, innovate offering as well as in increased digitalization of our ways of working. For example, we expanded
our research and development competences to ensure a more energy efficient offering.
Focused investments will continue throughout the year, aiming at creating a stable platform needed in order to capture market opportunities and achieve profitable growth.
Finally, I would like to thank all employees for your dedicated and focused work in the challenging times the world isgoing through right now.
Klas Forsström, CEO and President

Mid-term financial targets

Sustainability

Net sales growth: Annual organic growth of net sales of 5%.
Performance Q1 2022: +16% (14)Adjusted EBITA-margin: An adjusted EBITA-margin of 14%.
Performance Q1 2022: 9.5% (12.3)
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 Q1 2022: 2.6x (1.9)
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)

To maintain a sustainable and profitable business, Munters has
integrated sustainability in every aspect of the business strategy.
Highlights first quarter 2022:

For full description of the dividend policy, see the Annual and Sustainability report
2021, page 10 or at www.munters.com.

2

•
•
•
•
•
•

2021 reporting of measurable Scope 1, 2 and 3 emissions in accordance with
the Greenhouse Gas Protocol*
2021 EU Taxonomy Regulation reporting - 35% of net sales eligible
New energy and water strategy aiming at decreasing our environmental impact
Sustainability e-learning for the Board of Directors launched
Training of key employees on how to incorporate environmental impact incapital expenditure evaluations
Strengthening sustainability focus within our product development, i.e. recruitment of a Global Eco Design Manager*See the Munters Annual and Sustainability report 2021, pages 40-49, for further
information on goals and outcome or at www.munters.com.

First quarter, 2022

Order intake Q1,
currency adjusted change

Financial performance
Q1

+91%
LTM

Full year

Net sales Q1,

MSEK

2022

2021

∆%

Apr-Mar2021

currency adjusted change

Order intake

4,133
3,446
698
-11
2,121
1,628
505
-11
201
206
21
-26
9.5
12.6
4.3

1,995
1,483
520
-8
1,612
1,195
425
-8
198
181
39
-21
12.3
15.1
9.1

107
132
34
39
32
36
19
40
2
14
-45
21

11,151
8,853
2,344
-47
7,857
5,795
2,107
-45
892
799
193
-99
11.4
13.8
9.2

9,013
6,890
2,166
-43
7,348
5,362
2,028
-42
889
774
210
-95
12.1
14.4
10.4

+21%

AirTechFoodTech
Other and eliminations

Net sales

AirTechFoodTech
Other and eliminations

Adjusted EBITA

AirTechFoodTech
Other and eliminations

Adjusted EBITA margin, %AirTechFoodTech

Adj. EBITA-margin Q1

9.5 %Quarterly order intake, (MSEK)
5,000

12,0004,000

10,000
8,000

3,000

ORDER INTAKE

January-March 2022

Order intake in FoodTech increased by +34%, a currency adjusted increase of +25%, with strong growth in Americas
and good growth in EMEA. In region APAC, China had a weak development with lower level of new constructions as
the swine market continued to be weak due to overcapacity and outbreaks of the African Swine Fever (ASF). In
Americas both Climate Solutions and Digital Solutions had strong growth. The broiler segment in Climate Solutions in
the US had strong growth. In EMEA, order intake increased because of increased customer prices while the underlying market weakened as a consequence of the war in Ukraine. Digital solutions grew in the US, mainly because alarge SaaS deal in MTech was signed in the beginning of the year with an order value of about MUSD 19.

NET SALES
January-March 2022

Net sales increased +32%, a currency adjusted increase of +21% and an organic growth of +16%, driven mainly byan increase in the Battery sub-segment and Services in business area AirTech. Services net sales amounted to 14%
of total net sales.
AirTech increased +36%, a currency adjusted increase of +26% and an organic growth of +19%, with growth in all
regions. Growth was driven mainly by the Industrial segment in HCT and especially the Battery sub-segment as wellas Services. Both the Battery sub-segment and Services grew in all regions. Clean Technologies had good growth in
the quarter driven by both the power market and the process market, especially in the US and India. Data Center had
good growth mainly because of growth in Europe through EDPAC that was acquired in January. Services amounted
to 19% of total net sales.
FoodTech increased +19%, a currency adjusted increase of +10%, mainly driven by good growth in Climate Solut
3

4,000

1,000
0

Order intake increased by +107%, a currency adjusted increase of +91% and an organic growth of +87%, mainly
driven by strong growth in Data Centers and the Battery sub-segment in AirTech. The order backlog increased+129% to MSEK 6,350 (2,769), currency adjusted +118%.
Order intake in AirTech increased by +132%, a currency adjusted increase of +113% and an organic growth of+108%, with increased order intake in all regions. The strong growth was mainly driven by Data Centers that received a large order to a leading Data Center colocation operator in the US valued at approximately MUSD 115. Excluding this order, order intake increased 60% in the quarter. The Industrial segment in Humidity Control Technologies (HCT) and especially the Battery sub-segment had good development in EMEA. The Food sub-segment also
continued to see good growth. Clean Technologies had a flat order intake, on the back of a strong first quarter 2021.
Services experienced growth in all regions, with especially strong growth in APAC.

6,000

2,000

2,000
Q1

Q2

Q3

Q4

Q1

Quarter0
LTM

Order intake per region Q1,
2022 (MSEK)

16%
65%

19%

Americas

EMEA

APAC

Quarterly net sales, (MSEK)
2,500

10,000

2,000

8,000

1,500

6,000

1,000

4,000

500

2,000

0

Q1

Q2

Q3

Quarter

Q4

Q1

0
LTM

First quarter, 2022

ions in the US and in EMEA. The war in Ukraine had a negative impact on operations as supply chain challenges
were elevated and Munters suspended sales to Russia and Belarus. In 2021 Russia represented about 4% of net
sales in FoodTech. Net sales declined in APAC mainly as China had a weak development on the back of a strong
first quarter 2021. In China the swine market was negatively impacted by overcapacity and continued outbreaks of
ASF.

Net sales per region Q1, 2022
(MSEK)
40%

27%

RESULTS
Adjusted EBITA excludes Items Affecting Comparability, IAC, see pages 4-5 for disclosure of the IACs.

January-March 2022

The gross margin amounted to 29.2% (33.3). During the quarter we saw some positive effects from our price increases and we continued to adjust customer prices to mitigate higher costs. This was offset by intensified supply
chain constraints, higher raw material prices and freight costs following the war in Ukraine. Also, a changed businessmix in AirTech with more larger projects and lower net sales in China for FoodTech had a negative impact on themargin.

33%
Americas40%

Adjusted EBITA for business area AirTech amounted to MSEK 206 (181), corresponding to an EBITA-margin of
12.6% (15.1). Effects from customer price increases have had a positive effect, offset by increased energy, raw material and transport prices. The operational challenges a production unit in the industrial sub-segment experienced asa consequence of supply chain constraints in the fourth quarter 2021 continued to weigh on the margin in the firstquarter.

25%

Adjusted EBITA for Other amounted to MSEK -26 (-21). Other mainly includes costs for corporate staff functions.
Operating profit (EBIT) was MSEK 134 (222), corresponding to an operating margin of 6.3% (13.8). Amortization andwrite-downs on intangible assets in the first quarter was MSEK -23 (-17), where MSEK -9 (-7) related to amortizationof intangible assets from acquisitions.

ITEMS AFFECTING COMPARABILITY (IAC)

Items affecting comparability (IAC) in the first quarter were mainly related to activities connected with the on-goingstrategy implementation and with the effect from the war in Ukraine. Business area FoodTech incurred MSEK -17
related to the strategy implementation launched in May 2021. Costs were mainly linked to consultancy work andproduct pruning aiming at strengthening the equipment position. Business area AirTech incurred MSEK -12 related tothe strategy implementation launched in 2020. The mid-term positive impacts from the strategy implementation
measures on going in FoodTech was revised in the quarter as an effect of the war in the Ukraine. It was revised frompreviously MSEK 70 in 2023 to MSEK 50.
IACs related to the war in Ukraine amounted to MSEK -18 in the quarter, with MSEK -17 in FoodTech and MSEK -1
in AirTech. The IACs were mainly linked to inventory write-downs and a right-sizing severance provision.
In addition, Munters incurred other IACs of MSEK +4, which is a net of released provisions associated with the discontinued operation in Dison of MSEK +8 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 forcomparability. Covid-19-related IACs affected the fourth quarter with MSEK -1.
Items affecting comparability in the first quarter last year mainly related to strategy implementation within businessarea AirTech and legal cases outside the ordinary business operation related to a previous customer claim that was
settled and an insurance compensation received linked to a previous exchange of specific components at a customer
site within the European Data Center business.
For further information, see the reconciliation of Munters alternative performance measures on page 19.

4

APAC

Quarterly gross margin, %Adjusted EBITDA was MSEK 260 (250), corresponding to an adjusted EBITDA-margin of 12.3% (15.5). Adjusted
EBITA was MSEK 201 (198), corresponding to an adjusted EBITA-margin of 9.5% (12.3). Depreciation amounted to
MSEK -59 (-52), whereof depreciation of leased assets was MSEK -29 (-26).

Adjusted EBITA in business area FoodTech was MSEK 21 (39), corresponding to an adjusted EBITA-margin of 4.3%
(9.1). The margin declined mainly due to lower volumes in China and continued investment in Digital Solutions, partly
offset by an increased margin in Climate Solutions in the US. Also, intensified supply chain constraints with increased
energy and raw material prices and freight costs had a negative impact on the margin, mainly in region EMEA.

EMEA

35%
30%
20%

Q1

Q2

Q3

Q4

Q1

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

Q1

Q2

Q3

Q4

Q1

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

Q1

Q2

Q3

Q4

Q1

Quarterly EBIT margin, %
20%
10%
0%

Q1

Q2

Q3

Q4

Q1

First quarter, 2022

Q1
MSEK
Covid-19 related items
Implementation refined strategy
Russia impact related items
Other items affecting comparability
AirTechCovid-19 related items
Implementation refined strategy
Russia impact related items
Other items affecting comparability
FoodTech
Covid-19 related items
Implementation refined strategy
Russia impact related items
Other items affecting comparability
Other
Covid-19 related items
Implementation refined strategy
Russia impact related items
Other items affecting comparability
Total

2022
-1
-12
-1
8
-5
-0
-17
-17
0
-35
-4
-4
-1
-28
-18
4
-44

LTM
2021
-0
-7
62
54
-0
-0
-1
-4
-9
-12
-1
-12
54
41

Apr-Mar
-1
-29
-1
22
-9
-1
-111
-17
-1
-131
-7
-7
-3
-140
-18
14
-147

2021
Full year
-1
-25
76
50
-1
-95
-1
-97
-4
-12
-16
-2
-124
63
-62

FINANCIAL ITEMS

Financial income and expenses for the first quarter amounted to MSEK -23 (-25). The financial expenses are positively impacted by lower interest rates paid compared to same quarter last year. This was partly offset by a negative
effect from exchange rate effects as the USD has strengthened against the SEK. Interest expense on lease liabilities
amounts to MSEK -4 (-4) in the first quarter. The average weighted interest rate including fees per end of the quarterwas 2.6% (3.0).

TAXES
Income taxes for the first quarter was MSEK -10 (-38). The effective tax rate in the first quarter was 9% (19).
The lower effective tax rate is mainly driven by revaluation effects on deferred taxes in Sweden and Mexico. In addition, a mix effect related to difference in foreign tax rates compared to the Swedish tax rate impacted the effective tax
rate positively.

Quarterly tax rate, %
40%
20%
0%

31%
20%

19%

24%
9%

Q1

Q2

Q3

Q4

Q1

EARNINGS PER SHARE
Net income attributable to Parent Company’s ordinary shareholders amounted to MSEK 104 (160) for the first quarter. Earnings per share, before dilution, in the first quarter 2022 was SEK 0.57 (0.88). Earnings per share, after dilution, in the first quarter 2022 was SEK 0.57 (0.87).
The average number of outstanding ordinary shares in the first quarter, for the purpose of calculating earnings per
share, was 181,592,723 before dilution and 181,826,956 after dilution.

Quarterly EPS, SEK
1.5
1.0

0.75

0.73

Q3

Q4

0.45

0.5
0.0

5

0.87

Q1

Q2

0.57

Q1

First quarter, 2022

FINANCIAL POSITION
Interest-bearing liabilities amounted to MSEK 3,200 (2,853). Cash and cash equivalents amounted to MSEK 565(916) as of March 31.
Munters primary financing facilities consists of a term loan of MUSD 165 and a Revolving Credit Facility (RCF) of
MEUR 250 with final maturity date in June 2026. The facilities are granted by a group of six banks and have no mandatory amortization requirement. Since November 2021 Munters has linked sustainability targets to the loan facilities
to support the ambition for an environmentally and socially 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 and neither does the net pension liability.

Net Debt per quarter
3,000

1.9

1.9

Q1

Q2

2.2

2.2

Q3

Q4

2.6

2,000
1,000

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).

0

Quarter

Net debt as of March 31 amounted to MSEK 2,938 compared to MSEK 2,208 at the end of March 2021 and MSEK
2,389 at the end of December 2021. The increase in net debt is related to increase of debt to fund the acquisition of
EDPAC. For more information about reconciliation of net debt and leverage see page 21.

Q1
Leverage

Net debt in relation to Adjusted EBITDA was 2.6x compared to 2.2x at end of December 2021. The leverage ratio
increased as a consequence of an acquisition funded by debt as well as a build-up of working capital where mainly
inventory has increased as an effect of strong growth in order intake.
At quarter end the term loan facility of MUSD 165 was fully drawn. Of the RCF of MEUR 250 (formerly MEUR 185)
an amount of MEUR 124 (46) was utilized in EUR, SEK and USD. Unutilized of the RCF as of March 31 amounted to
MEUR 126 (139). Along with the primary loan facilities, an amount of MSEK 34 (8) in local debt is outstanding in i.e.
Ireland, Brazil, and India. The backup facility with EKN was entirely unutilized.
Average capital employed for the last twelve months was MSEK 7,345 (7,229). Return on capital employed (ROCE)
for last twelve months was 9.1% (11.3). ROCE 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 26.3% (29.1).
ROCE decreased mainly because of a slightly higher capital employed and a reduced operating margin.

ROCE, %
15%

11.3% 12.2% 11.5% 10.7%

10%

9.1%

5%
0%

Q1

Q2

Q3

Q4

Q1

CASH FLOW
Cash flow from operating activities was MSEK -26 (88) in the first quarter. The negative cash flow is due to a lower
level of operating earnings compared to 2021, as well as a negative impact from working capital.
Cash flow from changes in working capital had a negative impact of MSEK -202 (-138) in the first quarter. The negative effect is mainly due to increased inventory and account receivables, partly offset by increased advances from
customers and accounts payables.
Total cash flow for the first quarter amounted to MSEK -119 (-71). Total cash flow was negatively impacted by an
acquisition of MSEK -300. External borrowings increased by MSEK 349.

PARENT COMPANY
The parent company for the Group is Munters Group AB. 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 (59).

CORPORATEOther reported an EBITA of MSEK -26 (-21). The increase was due to expansion of Corporate staff functions focusing on work with streamlining and digitalization ways of working. Corporate staff functions as well as investments in
Munters Frontier are accounted for within Other. Munters Frontier was established in 2021 with the objective of continuously improving Munters’ footprint through investments in start-ups with promising technologies.

EMPLOYEESThe number of permanent FTEs (Full Time Equivalents), at March 31, 2022 was 3,545 (3,201). The amount of FTEs
at March 31, 2022 in business area AirTech was 2,651 (2,327), in FoodTech 808 (803) and at Group functions 86(72).
6

Ten largest shareholders

As of 31 Mar
FAM ABODIN Funds
Forth Swedish National
Pension FundFirst Swedish National
Pension Fund
Swedbank Robur Fund
Columbia Threadneedle
C WorldWide AssetManagement
La Financière de l'Echiquier
Vanguard
Capital Group
Source: Monitor

Total (%)
28.0
9.0
7.8
7.2
6.5
3.7
2.6
2.4
2.0
1.5

First quarter, 2022

OUTSTANDING SHARES AND REPURCHASESAs of March 31, 2022, Munters held 2,847,680 treasury shares of the total outstanding shares of 184,457,817.
The average number of outstanding ordinary shares in the first quarter, for the purpose of calculating earnings per
share, was 181,592,723 before dilution and 181,826,956 after dilution.

DIVIDEND PROPOSAL
The Board of Directors 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.

OTHER EVENTS

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.
The nomination committee’s proposals for AGM 2022 – Presented in February, the nomination committee’s proposals regarding Chairman of the meeting, the number of members of the Board of Directors and alternate members,
fees for the members of the Board of Directors and fees for the auditor, as well as election of members of the Boardof Directors and the Chairman of the Board of Directors of Munters Group AB. The nomination committee proposesthat the board members Håkan Buskhe, Helen Fasth Gillstedt, Kristian Sildeby and Anna Westerberg should be reelected as board members, and that Magnus Nicolin, Maria Håkansson and Anders Lindqvist should be elected as
new board members in Munters. Magnus Lindquist, Per Hallius, Lena Olving and Juan Vargues have declined reelection. The nomination committee also proposes that Magnus Nicolin should be elected as chairman of the boardof directors.
Munters Annual and Sustainability report 2021 – On March 3, Munters published the Annual and Sustainability
Report 2021 on www.munters.com in English and Swedish.

EVENTS AFTER THE CLOSE OF THE PERIOD

Annual General Meeting 2022 – The annual general meeting will be held on Wednesday, May 18. Due to the coronavirus and in order to reduce the risk of spreading the virus, the board of directors has decided that the general
meeting should be conducted by way of postal vote pursuant to temporary legislation being in effect in 2021. Thismeans that the general meeting will be held without the physical presence of shareholders, representatives or third
parties. The shareholders will therefore only be able to exercise their voting rights by postal voting. Information on the
resolutions passed at the meeting will be made available on May 19 as soon as the result of the postal voting has
been finally confirmed. An interview with the president and CEO Klas Forsström and the chairman of the board of
directors Magnus Lindquist will be made available on Munters website, www.munters.com, on May 13. More information about the Annual General Meeting can be found on www.munters.com.

7

First quarter, 2022

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 with increased order intake in all regions. The strong growth was mainly driven by Data Centers in the US. The
Industrial segment in Humidity Control Technologies (HCT) and especially the Battery sub-segment had good development in EMEA. Services
experienced growth in all regions, with especially strong growth in APAC.
■ Net sales increased with growth in all regions. Growth was driven mainly by the Industrial segment in HCT and especially the Battery sub-segment aswell as Services. Clean Technologies had good growth and Data Center grew because of the acquisition of EDPAC in the quarter.
■ Effects from price increases had a positive impact on the adjusted EBITA-margin, offset by increased energy, raw material and transport prices. The
operational challenges in the industrial sub-segment continued to weigh on the margin in the first quarter.
Q1
LTM
Full year

MSEK
Order intake
GrowthNet sales
Growthof which organic growthof which acquisitions and divestmentsof which currency effects

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

2022
3,446
132%
1,628
36%
19%
7%
11%
190
206
14%
12.6

2021
1,483
10%
1,195
6%

∆%
132

228
181
81%
15.1

-17
14

36

Apr-Mar
8,853
69%
5,795
16%

2021
6,890
35%
5,362
9%

745
799
4%
13.8

783
774
12%
14.4

*A reclassification in regards to amortization has been made between the business areas in periods prior to Q1-22 impacting EBIT.

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 increased in regions Americas and EMEA. In region APAC, China had a weak development. In Americas both Climate Solutions andDigital Solutions had good growth. In EMEA, order intake increased driven by higher customer prices while the underlying market weakened as aconsequence of the war in Ukraine.
■ Net sales increased mainly driven by good growth in Climate Solutions in the US and EMEA. The war in Ukraine had a negative impact as supply chain
challenges were elevated and Munters suspended sales to Russia and Belarus. Net sales declined in APAC on the back of a strong first quarter 2021.
■ The adjusted EBITA-margin declined mainly due to lower volumes in China and continued investment in Digital Solutions, partly offset by an increased
margin in Climate Solutions in the US. Also, intensified supply chain constraints with increased energy and raw material prices and freight costs had anegative impact on the margin, mainly in region EMEA.
Q1
LTM
Full year
MSEK

2022

2021

∆%

Apr-Mar

2021

Order intake

698
34%
505
19%
10%
9%
-25
21
-45%
4.3

520
1%
425
-5%

34

2,344
7%
2,107
0%

2,166
-1%
2,028
-5%

17
193
-35%
9.2

71
210
-32%
10.4

GrowthNet sales
Growthof which organic growthof which currency effects

Operating profit (EBIT)*
Adjusted EBITA
GrowthAdjusted EBITA margin, %19

29 -185
39 -45-25%
9.1*A reclassification in regards to amortization has been made between the business areas in periods prior to Q1-22 impacting EBIT.

8

First quarter, 2022

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

■
■
■
■
■

Purpose~3,500 employees (FTEs)
30 countries with sales and manufacturing
17 production units
23% women in management
Two business areas: AirTech and FoodTech

For 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 great 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 - Employees are the hub of our business and their safety and health is a priority. Diversity and inclusion
are important to us, since we are convinced that diversity leads to stronger innovation. Through collaboration
and a passion for creating energy-efficient solutions for our customers and partners, we contribute to ourcustomers’ success and a better world.
Customers - We help our customers succeed by supplying high-quality climate solutions that make themmore sustainable. Our success is built on close, long-term relationships and a deep understanding of thecustomer’s business and future needs. Our strategy is to continue to build customer insight and utilize ourbroadbased expertise on applications, technology and components to supply attractive solutions and services.
Innovation - Curiosity and an ambition to create pioneering technologies are part of our DNA. We will stayat the forefront of the industry’s development and contribute to sustainable development through our energyand resource-efficient climate solutions. We continue to invest in our core technologies, solutions anddigitization to optimize our product portfolio and our innovative production technology.
Market - Munters is active around the world and climate change, digitization and population growth are the key
markets drivers. Our resources are focused on strengthening our position in areas where we can be a market
leader and growing the service business. With high-quality, resource-efficient solutions and a conscious effort
to reduce our own climate impact, we contribute to sustainable development.
Excellence in everything we do - Our aim is to increase efficiency and quality in everything we do and to reduce our climate impact. Munters’ operations all
share responsible business practices and high ethical standards with a respect for human rights, diversity, and health and safety in the workplace.

9

First quarter, 2022¨

10

First quarter, 2022

Quarterly overview Group and Segments
Group
MSEK

2022

2021

2021

2020**

Q1

Q4

Q3

Q2

Q1

Q4

Q3

Q2

Q1

Order backlog
Order intake
Net sales
Operating profit (EBIT)
Net income
Amortization and write-down
Items affecting comparability (IAC)
Adjusted EBITA
Adjusted EBITA margin, %

6,367
4,133
2,121
134
102
-23
-44
201
9.5

4,198
2,605
2,057
190
133
-18
-9
217
10.6

3,525
2,295
1,857
194
138
-18
-3
215
11.6

3,018
2,118
1,822
147
84
-21
-91
259
14.2

2,769
1,995
1,612
222
160
-17
41
198
12.3

2,253
1,611
1,841
250
172
-17
22
245
13.3

2,664
1,919
1,833
245
163
-30
4
271
14.8

2,660
1,870
1,773
103
39
-20
-138
260
14.7

2,808
1,849
1,566
110
57
-20
−
130
8.3

AirTech

2022

MSEK

Q1

Q4

Q3

Q2

Q1

Q4

Q3

Q2

Q1

External order backlog
Order intake
External net sales
Transactions between segments
Operating profit (EBIT)*
Amortization and write-down*
Items affecting comparability (IAC)
Re-allocation of internal services
Adjusted EBITA
Adjusted EBITA margin, %

5,466
3,446
1,626
1
190
-10
-5
-1
206
12.6

3,498
2,110
1,560
2
216
-8
10
-1
214
13.7

2,837
1,802
1,338
3
158
-8
1
-10
174
13.0

2,318
1,495
1,264
1
182
-7
-15
−
205
16.2

2,129
1,483
1,193
2
228
-7
54
−
181
15.1

1,737
1,172
1,321
2
230
-7
26
0
211
15.9

2,025
1,354
1,270
9
180
-21
3
−
198
15.4

2,003
1,231
1,205
2
46
-10
-125
−
181
15.0

2,186
1,343
1,127
0
89
-11
−
−
100
8.8

FoodTech

2022

MSEK

Q1

Q4

Q3

Q2

Q1

Q4

Q3

Q2

Q1

External order backlog
Order intake
External net sales
Transactions between segments
Operating profit (EBIT)*
Amortization and write-down*
Items affecting comparability (IAC)
Re-allocation of internal services
Adjusted EBITA
Adjusted EBITA margin, %

901
698
495
10
-25
-12
-35
−
21
4.3

700
508
496
12
7
-9
-16
2
31
6.0

687
502
519
8
43
-9
-5
-4
61
11.6

700
636
558
9
-8
-13
-75
−
80
14.1

640
520
419
6
29
-9
-1
−
39
9.1

516
450
520
11
64
-8
6
0
66
12.3

640
575
563
9
87
-8
0
−
95
16.5

656
656
568
7
83
-9
-6
−
98
17.1

622
515
440
9
43
-8
−
−
52
11.5

Other and eliminations

2022

MSEK

Q1

Q4

Q3

Q2

Q1

Q4

Q3

Q2

Q1

Order intake
Transactions between segments
Operating profit (EBIT)*
Amortization and write-down*
Items affecting comparability (IAC)
Re-allocation of internal services
Adjusted EBITA

-11
-11
-31
-1
-4
1
-26

-13
-14
-33
-1
-3
-1
-28

-9
-11
-7
-1
0
14
-20

-14
-10
-27
-1
0
−
-26

-8
-8
-35
-1
-12
−
-21

-11
-12
-44
-1
-10
-0
-32

-10
-18
-22
-1
-0
−
-21

-17
-8
-27
-1
-7
−
-19

-10
-9
-23
-1
−
−
-22

2021

2020**

2021

2020**

2021

2020***A reclassification in regards to amortization has been made between the segments in periods prior to Q1-22 impacting EBIT.
**Relates to Munters continuing operation during this period.

11

2020**

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

2,253
7,249
7,015
707
432
-87
-111
906
12.9

2021

2020**

Full year Full year
3,498
6,890
5,355
7
783
-31
50
-11
774
14.4

1,737
5,101
4,924
13
545
-49
-95
0
689
14.0

2021

2020**

Full year Full year
700
2,166
1,993
35
71
-40
-97
-2
210
10.4

516
2,196
2,091
35
277
-34
1
0
310
14.6

2021

2020**

Full year Full year
-43
-42
-101
-4
-16
13
-95

-48
-48
-115
-4
-18
-0
-94

First quarter, 2022

Condensed income statement
Q1

LTM

Full year

MSEK

2022

2021

Apr-Mar2021

Net sales
Cost of goods sold
Gross profit

2,121-1,502
619

1,612-1,075537

7,857-5,421
2,436

7,348-4,994
2,354

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

-238
-164
-58
-25
134

-191
-135
-37
48
222

-892
-584
-183
-112
665

-844
-556
-162
-39
753

Financial income and expenses
Profit/Loss after financial items

-23
112

-25
197

-82
583

-84
668

Tax
Net income for the period

-10
102

-38
160

-125
457

-153
515

Attributable to Parent Company shareholders
Attributable to non-controlling interests

104

160

457

513

-3

0

-0

3

181,592,723

181,920,817

182,125,497

182,207,520

181,826,956
0.57
0.57

182,762,723
0.88
0.87

182,509,384
2.51
2.51

182,548,017
2.81
2.81

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

62

161

169

268

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

13
-3
73

35
-7
189

-26
4
148

-3
-0
264

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

174
177
-3

349
349
-0

605
607
-2

779
779
1

Average number of outstanding shares before dilution*
Average number of outstanding shares after dilution*
Earnings per share before dilution, SEK
Earnings per share after dilution, SEK
Other comprehensive income*Excluding shares held in own custody.

12

First quarter, 2022

Condensed balance sheet
MSEK

2022-03-31

2021-03-31

2021-12-31

4,511
1,728
276
464
191
102
21
296
7,590

4,144
1,435
236
474
163
52
19
255
6,778

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

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

649
251
391
12
12
1,505
462
3
48
80
565
3,979

387
119
259
7
7
982
428
8
51
89
916
3,253

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

TOTAL ASSETS

11,56910,031

10,742ASSETSNON-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

13

First quarter, 2022

Condensed balance sheet
MSEK

2022-03-31

2021-03-31

2021-12-31

Shareholders' equity

4,536

4,093

4,360

Non-controlling interests
Total equity

4
4,539

5
4,099

3
4,363

3,067
313
43
143
408
3,974

2,760
271
40
140
388
3,599

2,636
324
41
140
405
3,546

134
804
802
975
−
56
113
9
163
3,056
11,569

93
549
522
745
0
65
104
9
246
2,333
10,031

114
648
771
998
−
40
100
9
153
2,833
10,7422022-03-31

2021-03-31

2021-12-31

Opening balance
Total comprehensive income for the period
Exercised share options
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

4,363
174
2
−
−
−
−
0
−
4,539

3,751
349
−
−
-1
−
−
-0
−
4,099

3,751
779
40
-1
-4
-129
-69
-5
1
4,363

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

4,536
4

4,093
5

4,360
3

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 LIABILITIESInterest-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
TOTAL EQUITY AND LIABILITIESCONDENSED STATEMENT OF CHANGES IN EQUITY
MSEK

14

First quarter, 2022

Condensed cash flow statement
Q1
MSEK

LTM

Full year

2022

2021

Apr-Mar

2021

134

222

665

753

82
-6

69
-6

316
16

303
16

10
220

-6
279

-81
915

-97
974

OPERATING ACTIVITIESOperating 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
Paid financial items

-19

-20

-98

-99

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

-25
176

-33
226

-173
644

-181
694

Cash flow from changes in working capital

-202

-138

-239

-175

Cash flow from operating activities

-26

88

405

519

Business acquisitions
Investments in participations and securities in other companies
Sale of tangible fixed assets
Investment in tangible assets
Investment in intangible assets
Cash flow from investing activities

-300
-3
1
-39
-75
-417

1
-22
-36
-58

-300
-3
2
-155
-243
-699

2
-138
-204
-341

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

2
580
-232
-27
323

24
-99
-26
-101

42
2,868
-2,683
-106
-69
-129
-78

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

Cash flow for the period

-119

-71

-372

-324

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

674
11
565

970
17
916

916
21
565

970
28
674

INVESTING ACTIVITIES

15

First quarter, 2022

Parent company
CONDENSED INCOME STATEMENT
Q1
MSEK

LTM

Full year

2022

2021

Apr-Mar2021

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

−
−
-2
1
-1

−
−
0
-1
-2

−
−
-13
13
0

−
−
-12
11
0

Financial income and expenses
Profit/Loss after financial items

-0

0

-1

-1

-2

-2

-1

-1

Group contributions

−

−

8

8

Profit/Loss before tax

-2

-2

7

7

Tax

0

0

1

1

Net income for the period

-2

-1

8

8

CONDENSED STATEMENT OF COMPREHENSIVE INCOME
Q1
MSEK
Profit/Loss for the period
Other comprehensive income, net after tax
Comprehensive income for the period

16

LTM

Full year

2022

2021

Apr-Mar

2021

-2
−
-2

-1
−
-1

8
−
8

8
−
8

First quarter, 2022

Parent company
CONDENSED BALANCE SHEET
MSEK

2022-03-31

2021-03-31

2021-12-31

4,097
3
4,100

4,102
4
4,106

4,094
5
4,100

1
1
15
−
17

1
0
28
59
89

1
1
13
0
15

4,118

4,195

4,115

2022-03-31

2021-03-31

2021-12-31

6
4,136
-116
-2
4,023

6
4,135
32
-1
4,171

6
4,136
-128
8
4,022

2
2

1
1

2
2

3
15
68
7
92

1
19
−
2
22

3
18
65
4
91

4,118

4,195

4,115

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

17

First quarter, 2022

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 report
2021 (Note 1).

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 129 in the Annual and Sustainability Report 2021.

TRANSACTIONSWITH RELATED PARTIES
There have been no transactions with related parties during the period.

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 forour 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 the18Group. 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 2022 the lingering Covid-19 pandemic led to continued supply
chain challenges especially in region APAC and China.
The war in Ukraine has not resulted in a material effect for Munters in
the first quarter 2022. Munters has app. 1.5 per cent of annualized net
sales in Russia, and no employees in the area.
The war has led to items affecting comparability (IACs) of MSEK 29, of
which MSEK -18 is recorded in the quarter as a provision and MSEK -11
will be taken as incurred. The IACs are related to inventory write-downs,
a right-sizing severance provision and costs associated with the adaption of the strategy as business in Russia have been suspended.
The indirect effects seen from the war are mainly related to material
prices and logistics. For example, in general material prices have increased and some logistical routes have been cut off in Asia and Europe.
A more detailed description of the Group’s risks and how they are managed can be found in the Annual- and Sustainability report 2021 on
pages 54-58.

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.

First quarter, 2022

Q1 2022
MSEK
Goods transferred at a point in time
Goods transferred over time
Services transferred over time
Total net sales

AirTech FoodTech
1,178
418
332
37
117
41
1,626
495

Total
1,595
368
158
2,121

Q1 2021MSEK
Goods transferred at a point in time
Goods transferred over time
Services transferred over time
Total net sales

AirTech FoodTech
780
372
325
14
89
33
1,193
419

Total
1,152
339
122
1,612

FAIR VALUE OF FINANCIAL
INSTRUMENTS
MSEK
Opening balance
Payments
Discounting
Exchange-rate differences
for the period
Closing balance2022-03-31 2021-03-31 2021-12-31
137
121
121
−
6
−
−
3
4
3
141

−
129

13
137

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 MSEKRECONCILIATION OF ALTERNATIVEPERFORMANCE MEASURES
Below is a reconciliation of Munters adjusted performance measuresfrom items affecting comparability. In the first quarter 2022, these items
mainly originated from the activities connected with the strategy implementation within business area FoodTech, communicated through apress release in May 2021, as well as from implementation activities related to the refined strategy within AirTech communicated during 2020 a
total of MSEK -28. In addition, Munters incurred MSEK -18 in

19

3 (8) in financial assets and to MSEK 0 (0) in financial liabilities. The
Group’s put/call acquisition option, recognized at fair value in the statement of financial position, are measured according to IFRS 9 and are
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 currency translations on the put/call option.
Munters deems that the interest rate on interest-bearing liabilities are inline with market terms at March 31, 2022, and the fair value at the end of
the reporting period therefore in all material aspects corresponds to thecarrying amount.

items affecting comparability related to the Russian invasion of Ukraine,mostly connected with inventory write-downs and a rightsizing severance provision. Munters has also incurred M&A related IACs of MSEK 4, Covid-19-related IACs of MSEK –1 and MSEK 8 in Other IACs from arelease of a provision in the discontinued operation from previous years
related to the Data Center business in Dison confirmed no longer required. During the first quarter last year Munters mainly incurred IACs
related to the implementation of the refined strategy within FoodTech
and AirTech, IACs related to legal cases outside the ordinary business,a received insurance reimbursement and Covid-19-related IACs.

First quarter, 2022

Q1
MSEK
Adjusted EBITDA
Amortizations and write-downs of tangible assets
Adjusted EBITA
Amortizations and write-downs of intangible assets
Adjusted operating profit (EBIT)
Restructuring activities
Russia impact related one-time items
Acquisition-related costs in a business acquisition
Legal cases outside the ordinary business operation
Proceeds insurance reimbursements from legal cases
Received government grants/government assistanceCorona related expenses
Other
Operating profit (EBIT)

Full year2022-03-31

2021-03-31

LTM

Jan-Dec

260
-59
201
-23
178
-28
-18
-4
0
0
0
-1
8
134

250
-52
198
-17
181
-12
0
0
-7
61
1
-1
0
222

1,115
-223
892
-75
817
-145
-18
-11
0
0
3
-5
24
665

1,105
-216
889
-70
819
-128
0
-6
-7
61
3
-5
16
753

BUSINESS ACQUISITIONSIn January 2022, Munters announced the acquisition of EDPAC, an Irish
manufacturer of cooling equipment for data centers and air treatment
systems, with a preliminary purchase price of MEUR 29, approximately
MSEK 300. EDPAC manufactures precision cooling equipment and various air handling systems and is also a manufacturing partner for
Munters Oasis systems. Sales of Munters products account for approximately seven per cent of EDPAC's total revenue. The acquisition adds
complementary products to Munters' existing data center offering and ispart of Munters' strategy to grow in the prioritized data center segment.
EDPAC reported net sales amounting to MEUR 17 and an adjusted
MSEK
Information about acquired net assets and goodwill
Cash purchase consideration paid
Total purchase consideration
Fair value of acquired net assets
Goodwill

EBITDA of MEUR 1.7 for the financial year ended April 2021. The company is headquartered in Carrigaline, Ireland, with two manufacturing facilities in the country and the number of full-time employees is approximately 150. EDPAC has a strong customer base with sales mainly inEurope and with a smaller part in the Middle East, South America andAsia. The allocation of the purchase price resulted in surplus values related to customer relationships of MSEK 55, trademarks of MSEK 11
and a residual goodwill of MSEK 198. Acquisition related costs including
stamp duty amounted to MSEK 8. Below is a list of paid purchase priceand acquired net assets.
2022-03-31
301
301
-104
198

Acquired net assets at time of acquisition
Property, plant and equipment
Customer relationships
Trademarks
Inventory
Accounts receivable
Prepaid expenses and accrued income
Other current assets
Cash and cash equivalents
Total assets
Non-current interest-bearing liabilities
Current interest-bearing liabilities
Accounts payable
Accrued expenses and deferred income
Deferred tax liabilities
Current income tax
Total liabilities

46
55
11
35
71
1
11
1
232
2
50
29
36
8
2
128

Net identifiable assets and liabilities

104

Cash purchase consideration paid
Cash and cash equivalents in acquired company
Change in the Group's cash and cash equivalents on acquisition

-301
1
-300

20

First quarter, 2022

RECONCILIATION OF NET DEBT AND LEVERAGE
MSEK

2022-03-31

2021-03-31

2021-12-31

CURRENT ASSETS
Cash and cash equivalents

-565

-916

-674

NON-CURRENT LIABILITIESInterest-bearing liabilities, excluding leases
Interest-bearing lease liabilities
Provisions for pensions

2,798
268
292

2,484
276
255

2,362
274
303

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

32
102
5
6

7
86
10
6

11
102
5
6

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

2,938
665
-236
-80
981
-134

2,208
814
-216
-84
1,114
-70

2,389
753
-228
-74
1,056
-49

Adjusted EBITDA, LTM

1,115

1,184

1,105

2.6

1.9

2.2

Net debt/Adjusted EBITDA, LTM

21

First quarter, 2022

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

INFORMATION AND REPORTING DATESContact persons:

Ann-Sofi Jönsson, Head of Investor Relations and Enterprise Risk Management
Phone: +46 (0)730 251 005
Email: ann-sofi.jonsson@munters.com
Line Dovärn, Director Investor Relations and Enterprise Risk Management
Phone: +46 (0)730 488 444
Email: line.dovarn@munters.com
You are welcome to join a webcast or telephone conference on April 22 at 9:00am CEST, when President and CEO Klas Forsström, together with Group
Vice President and CFO Annette Kumlien, will present the report.
Webcast:https://tv.streamfabriken.com/munters-q1-2022
Dial-in number for the telephone conference:
SE: +46856642707
UK: +443333009032
US: +16467224903
This interim report, presentation material and a link to the webcast will be available on https://www.munters.com/en/investor-relations/____________________________________________________________________________________________________________________________
Financial calendar:
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 April 22, 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 3,500 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 2021 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 theEnglish translation. The addition of the totals presented may result in minor rounding differences.

22