Munters
Q1 report 2024
Klas Forsström, President and CEO
Katharina Fischer, GVP and CFO
Ann-Sofi Jönsson & Line Dovärn, Investor Relations

High demand and profitable growth
Continued high demand…
Order intake

Announced orders*… drives stable net sales and...
Order backlog

MSEK

15 00011 8126 000… enhanced profitability
Net Sales

MSEK

Adj. EBITA margin
16%
14.1

6 000

14%
3,538

4 000

3 368

400

12%
498

5 000

2 000

Adj. EBITA

600

10 000
4 000

MSEK

8%

200

2 000

10%

6%
00Q1 Q22022

Q3Q4Q1 Q22023Q3Q4Q12024

Q1 Q22022

Q3Q4

Q1 Q22023

Q3Q4Q12024

Q1 Q22022

Q3Q4

Q1 Q22023

Q3Q4Q12024

Q1 Order intake, +32% (+29% org)

Q1: Net sales, +11% (+7% org)

Adj. EBITA-margin, Q1 14.1%• strong in all business areas• DCT - good delivieries• AT good demand, esp. battery EMEA

• FT - Climate solutions Americas strong,and very strong Digital solutions US+ solid growth, net price increases andstrong operational delivery• DCT solid development in Americas• FT positive, mainly Americas & EMEA
Q1: Order backlog, +10%
• mainly large orders in DCT & AT, to bedelivered throughout 2025

24%00

• AT – decreased. Growth mainly inAmericas, offset by weaker APAC & EMEA
Book-to-bill Q1: 0.95

AT = business area AirTech, DCT = Data Center Technologies, FT = FoodTech, BA = business areas*Large orders announced through press releases- accelerated investments to create aplatform for long-term sustainablegrowth in all business areas= resulting in margin improvements andgood cashflow

Americas and EMEA main growth drivers
Regional share Q1
Order intake

Net sales

Order intake

Net sales
21%

Order intake

Net sales

17%

14%

41%

42%
65%

Americas - order intake

APAC- order intake• AirTech – Components & Service goodgrowth. Battery weaker, shift in orderpattern as orders placed closer to delivery• AirTech – good development especially inthe battery, also Service and Components
showed good growth• AirTech – weaker development, mainly
due to the weaker battery market inChina• DCT – very strong underlying demandboth from co-locators & hyperscalers• DCT – good activity with steady growth• FoodTech – continued slight recovery• FoodTech – good growth in CS inAmericas primarily broiler and layer. DSstrong growth

3EMEA - order intake

All figures as reported, not currency adjusted.
OI: Order intake, NS: Net sales
CS - Climate solutions (equipment incl. controllers), DS – Digital solutions• FoodTech – good recovery in all segments,
especially broiler & greenhouse

Solid order backlog – large orders supportive into 2025
2022
MUSD 115
US colocator
SyCool Split solutions
MUSD 65
US car manufacturer
Climate control systems
MUSD 63
US colocatorStandard chilled water (CRAHs)
MUSD 176
US colocator
SyCool Split solutions
MUSD 54
Multinational car manufacturer
2 climate control system orders
MUSD 88
US colocatorStandard chilled water (CRAHs)
MUSD 137
US colocator
SyCool Split solutions
MUSD 65
US colocatorStandard chilled water (CRAHs)
4

Order received
Expected delivery period

2023

2024

2025

AirTech

All segments - stable order intake trends
Order Intake increased primarily EMEA
but also Americas, whereas APAC lower;• Industrial- good growth especially in EMEA. Battery in EMEA verystrong, whereas cont. weak in APAC & Americas• Commercial – good growth in Americas & APAC (acq. Zeco)

Customer segment
Industrial~ 1-5 %

60%

…whereof battery

27%• Components – Americas & EMEA good growth, APAC weaker due
to lower component replacements in the Chinese battery market…whereof food processing

7%…whereof commercial

9%…whereof other

18%

Order Backlog slight decrease
4 000

3,688
2,255

2 000

± 0 -1%

Clean Technologies

5%Service & components

35%…whereof service

19%…whereof components**

16%0Q122

5Q222

1 Clean Technologies

Q322

Q422Order Intake

Q123
Q223
Order Backlog

Q323

Q423

neg

% order intake Market
Q1 2024
Outlook *• CT1- declined, due to strong comparable Q1 2023

• Service – growth mainly Americas but also EMEA, offset by APAC

MSEK

>5%

Q124
* Market outlook and comments are indicative and refer to the coming six months** Dehumidification rotors and humidification pads sold through OEM channels

AirTechLower volumes & investments affecting margin
Net Sales decreased, growth in Americas
offset by weak APAC & EMEA;

Change (%)

Q12024

Q12023

Org.

Struct*FX

297-3MSEK• Battery – strong growth Americas, weaker APAC & EMEA

Order intake

2,255

1,686

• CT– stable APAC, weaker Americas & EMEA

Order backlog

3,688

4,341

Net sales

1,996

2,023

-7

7-2

Adj. EBITA

296

323-126-2

Adj. EBITA (%)

14.916.0• Service – good growth, primarily Americas

Adj. EBITA margin decreased;-lower volumes

2 500-increased investments in sustainability, operational efficiency &innovation

2 000cont. efficiency improvements, slightly offset by lower
production utilization rate in EMEA & APAC

12%

1 500
MSEK+16%8%

1 000

4%500.

00%
Q122

Q222

Net sales* Acquisitions & divestments

6Q322

Q422

Q123

Q223

LTM Adj. EBITA-margin

Q323

Q423

Q124

Adj. EBITA-margin

Adj. EBITA margin• Components – stable Americas & EMEA, weaker APAC

AirTech

Solid development in several segments
Order intake per segment

MSEK
3 0002 500•

Variations in large ordersi.e., batteries•

Other industrial goodgrowth•

CT steady development•Commercial increase
through Zeco acquisition•Service & Components
stable and growing

2 0001 500

1 000

5000
Q1 20227

Q2 2022

Q3 2022

Q4 2022

Q1 2023

Q2 2023

Q3 2023

Q4 2023

ServiceComponents

Commercial

Other Industrial

CTBattery

Announced orders*Net Sales*Large orders announced through press releases

Q1 2024

Enhancing our Clean Technology
portfolio
Acquisition of Airprotech•

Italian manufacturer of Volatile Organic Compounds (VOC)
abatement systems•

Enhances air purification offering and addresses growing
demand for abatement services in Europe•

Positions us to offer complete systems and service to ourcustomers, contributing to cleaner air•Reported net sales of MSEK 330 for FY 2023

•Founded 1995, based near Milan, Italy, 52 employees•

Finalization expected in Q2 2024

8AirTechIncreased demand & strengthenedorder backlog

Data Center Technologies>5%

Customersegment

Order Intake increased;•

mainly co-locator segment, Americas•

underlying demand remains very strong

Hyperscaler

Order Backlog increased;•majority attributable to large orders to be delivered
throughout 2025

MSEK

8 000

7,003

~ 1-5 %

Order IntakeQ1 2024

± 0 -1%neg

MarketOutlook *0%

Co-locator99%

Telco &enterprise

1%6 000• Hyperscalers – increased activity both for own facilities &colocation leasing. AI driving significant growth, increased needfor server space & higher density cooling requirements

4 000
2 000343

0Q122

Q222

Q322

Q422

Order Intake

Q123

Q223

Order Backlog

Q323

Q423

Q124

• Colocation – continued strong demand due to increased buildouts and investments, driven by increased leasing demand fromhyperscalers• Telco & enterprises - moving away from own facilities, market
growth but lower pace

9* Market outlook and comments are indicative and refer to the coming six months

Data Center Technologies

Significant profitability increase
Net Sales strong increase;

MSEK

Change (%)

Q12024

Q1 2023

Org.

Struct*FX

1700•

good deliveries on large projects, proceedingaccording to plan

Order intake

343

293

Order backlog

7,003

5,564

•

EMEA good development

Net sales

956

653

470-1

Adj. EBITA

181

82

1220-1

Adj. EBITA (%)

19.0

12.6

Adj. EBITA margin significant increase;+ strong volume growth1000+ high utilization rate in production+ operational efficiency improvementsinvestments in competence and resources expected
to increase to capture growth

16%750MSEK‒

20%

12%
5008%
250

4%

00%
Q122

Q222

Q322

Net sales* Acquisitions & divestments

10Q422

Q123

Q223

LTM Adj. EBITA-margin

Q323

Q423

Q124

Adj. EBITA-margin

Adj. EBITA margin+ net price increases

Data Center Technologies

Expanding DCT facilities inIreland to meet the demand
DCT Europe – Expansion

11•Expansion in Cork, Ireland with the establishment of newfacilities with ~11,000m2 production and office space•

Initially, around 100 employees will be able to produce the full
DCT product range at the site•

Located in the stunning location of Little Island, close to Cork
city centre and our current facilities•

Construction underway, scheduled for completion during 2024•

Built for LEED1 Silver sustainability certification•

More sustainable construction and operations•

Enhanced energy and water efficiency•

Eliminating fossil fuel dependency

1 Leadership in Energy and Environmental Design - the world's most widely used green building rating system.

Strong demand andstrengthened order backlog

FoodTech>5%Order Intake increased;

Customer segment•CS – primarily driven by Americas & EMEA, slightly
offset by APAC

Climate Solutions (incl.
Controllers)•DS – strong growth in Americas

Order Backlog increased~ 1-5 %neg

± 0 -1%% order intake Market
Q1 2024 Outlook *87%

…whereof Broiler

50%…whereof Swine8%…whereof Layer

15%…whereof Greenhouse7%…whereof Dairy

3%…whereof Other

4%

Digital Solutions

13%MSEK
1122
1000
786

750
500
250
0Q122

Q222

Q322

Q422

Order Intake12Q123

Q223

Order Backlog

CS - Climate solutions (equipment incl. controllers), DS – Digital solutions

Q323

Q423

Q124
* Market outlook and comments are indicative and refer to the coming six months

n/aFoodTech

Enhanced profitability and net sales
Net Sales increased;

MSEK

Q12023

Org.

Struct*FX

325-2

108-2

173

14-1

•

contributions from mainly Americas•

Order intake

786

581

CS – Americas good growth, EMEA slightly
negative & decline in APAC

Order backlog

1,122

878

Net sales

596

512

- of which SaaS61

36- SaaS ARR

244

145

Adj. EBITA margin increased significantly;

Adj. EBITA

7024+ increased net sales in both CS & DS

Adj. EBITA (%)

11.7

4.7

DS - SaaS ARR grew +68%

+ good profitability from DS through strong ARR

16%600+ net price increases

4008%

2004%

MSEK+ effects from operational excellence improvements

12%

00%
Q122

Q222
Net sales* Acquisitions & divestments

13Q322

Q422

Q123

Q223

LTM Adj. EBITA-margin

Q323

Q423

Q124

Adj. EBITA-margin

Adj. EBITA margin•

Change (%)

Q1
2024

Climate solutions – EMEA good
recovery in all segments
Greenhouse order in EMEA•

EMEA contractor, serving UAE end-users and farms•Solution offered CELdek evaporative pads & Air circulation fans
and air extraction fans•Munters selected for the strong track record of customer
satisfaction during lasting relationships with both contractor andend-user. High satisfaction with installed base of Munters
equipment.

Munters CELdek®
Evaporative cooling pad

Ideal for greenhouses that require highefficiency cooling

14

Munters EDC
Air circulation fans

Improving air quality and combating
stratification in any greenhouse and poultry
application

FoodTechFoodTech

Digital solutions - Significant SaaS growth
Key order in Americas strengthens cloud
footprint in poultry

ARR* (mSEK)+68%• Large US turkey company, subsidiary of a major foodcorporation• Customer experienced challenges with data security,
local installation and user friendliness of previoussystem• Upgraded to Amino software to move more towards
IoT and connected farms

145
Q1 2023

166

Q2 2023

194

Q3 2023226244Q4 2023

Q1 2024*ARR = Recurring Revenue in the quarter multiplied by four

ARR continued growth - new customers &conversions to our new software solution
Amino
Also, high level of software implementations
15Advancement towards oursustainability goals
End of March 2024
Scope
1&2

Renewable electricity, factories

78% (79)

Energy efficiency, factories10.57 (0.51)

Recycling rate (LTM)

47% (49)

Health &Safety

TRIR2 (LTM)% of women in workforce

Diversity16

1.4 (2.0)

22% (23)% of women in salary-setting positions 22% (22)

1 Electricity in relation to production output,
2Total Recordable Incident rate

Goal
Net zeroemissions
by 2030

Zeroaccidents

30%womenleaders by2025

Financial highlights

GroupEnhanced profitability, good cash flow &improved leverage

Change (%)

Q1
2024

Q12023

Organicgrowth

Structuralgrowth*Currencyeffects

Order intake

3,368

2,544

296-2

 very strong growth in DCT

Order backlog

11,812

10,783

 strong growth in both segments in FTNet sales

3,538

3,175

76-2

Operating profit(EBIT)

412

349

Adj. EBITA

498

389

256-2

Adj. EBITA-margin

14.1

12.3

Net income

227

214

Cash flow fromoperating activities

553-168

OWC/net sales (%)1

13.6

12.7

Net debt

4,557

4,175

Net debt/Adj.
EBITDA2

2.0

2.7• Net Sales increased;• Adj. EBITA margin improved; mainly increased sales and price increases in DCT &FT, efficiency improvement efforts in all businessareas• Improved cash flow;
 improved earnings & reduction in working capital,
mainly driven by customer advances in DCT Americas• Net debt increased: mainly as a result of acquisitions financed throughdebt during the recent year

MSEK

1 Average OWC (Operating Working Capital) last twelve months as % of net sales for the same period
2 Last twelve months* Acquisitions & divestments

18Adjusted EBITA-margin

Strong margin improvement in FoodTech & DCTGroup adj. EBITA margin impact
Q1 2023
adj. EBITA %12.3

Volume++Net pricing+Operational excellence+

Strategic initiatives=

Q1 2024 adj. EBITA %

14.1

19

Main factors affecting adj. EBITA margin in Q1:• Strong volume increase driven by DCT & FT
• Net pricing increases contributed to margin
improvement mainly in DCT & FT
• Operational excellence improvement in all
business areas• Strategic initiatives for scalability in digitization
and automation continued

Cash flow

Profitable growth and cash flow generation
Group Cash Flow YTD, MSEK

215

Cash flow from changes in WC

-232

338

-301

2020

Q1 2024

Q1 2023

Change in accounts receivable

-167

-19

Change in inventory

-88

-120

Change in accrued income

115

-43

Change in accounts payable

-1

-128

Change in advances from customers

406

-138

Change in other working capital

-49

-65

CF from changes in working capital

215

-513

PPE & Intangibles

Investing for the future

6%

800

5%

• Investments aiming at strengthening
competence, upgrade, digitalize & automize• AirTech: Amesbury, new major plant inAmericas• DCT: Cork, new plant in Europe

4%
3%

4002%

200

1%0%

0Q1

Q2

Q3

Q4

Q1

Q22022

Q3Q42023

Intangibles, R12M

PPE, R12M2

Q1
2024

%-net sales, R12M

Operating working capital

Decreased operating working capital
2500

15%

2000

14%

1500

13%

1000

12%

500

11%
10%

0Q1

Q2

Q32022Q4

Q1

Operating working capital

Q2

Q32023

Q4

Q1
2024

OWC/net sales, R12M

% of net sales

MSEK• High level of customer advances in DCT maindriver

21%-net sales

Investments in PPE and intangibles in 2024,
to support growth:

MSEK

600

Decreased leverage ratio 3 quarters in a row

Leverage & net debt

Development of leverage & net debt
3.0

2.9
1 000

2.9

3,0
2.7

2.6

2.7
2,5

2.2

MSEK-1 000• Net debt stable, affected by:
2.1

2.0

2,0

1,5-3 000
1,0-5 000
0,5-7 000

0,0Q1 2022

Q2 2022

Q3 2022

Q4 2022 Q1 2023

Q3 2023

Q4 2023

Q1 2024

Cash & equivalents

OtherLease liabilites

Interest bearing liabilities

Net debt / adj. EBITDAx, LTM

22Q2 2023• Leverage ratio decreased mainly
driven by increased adj. EBITA acquisitions financed partly by debt
during the last 4 quarters
 increased cash flow from operatingearnings

Summary

Financial targets

Progression towards our financial targets
Net sales growth*

Adj. EBITA margin
14.1%

15%

40%

OWC/net sales**
13.6%

15%

Financial target >14%
Financial target range 13-10%

30%

10%

10%
20%

7%

10%

Financial target 10%

0%

0%

0%
Q1
2022

Q2

Q3

Q4

Q1

Q22023* Organic growth p.a. over a business cycle

245%

5%

Q3

Q4

Q12024

Q1202220232024

2022

Q2

Q3

Q4

Q12023Q2Q3Q4Q12024**Average OWC (Operating Working Capital) last twelve months as% of net sales for the same periodVery strong start of the year

Byt bild

High demand drives
continued strong
momentum
25

Enhanced profitability andgood cash flow resulting in
improved leverge

Investing for asustainable futureQuestions & Answers
Questions & Answers
Q1 report 2024

This presentation contains forward-looking statements that reflect Munters’current expectations on future events and Munters’ financial and operational
development. Although Munters believes that the expectations reflected insuch forward-looking statements are based on reasonable assumptions, noassurance can be given that such expectations prove to have been correct, as
forward-looking statements are subject to both known and unknown risks anduncertainties and a variety of factors that could cause actual results or
outcomes to differ materially from those expressed or implied by such forwardlooking statements. Such factors include, but are not limited to, changes in
economic, market, competitive and/or regulatory conditions. Forward-looking
statements speak only as of the date they were made and, other than as
required by applicable law, Munters undertakes no obligation to update any ofthem in light of new information arising or future events.