Munters to position itself
for the new growth wave
Klas Forsström, CEO & President
Capital Markets Day 2024

In 2019, we embarked on a journey tostrengthen our platform and refine ourstrategic vision for the future
GrowthProfitability

Stability

The results of our efforts came to lightin 2023, the strongest year in Munters
history, with remarkable growth andmargin improvement in all business areas.

Munters today
World leader in energyefficient climate
solutions with sales ofover BSEK 14,292 in
more than 45 counties

Successfully integrated
sustainability in every
aspect of the businessstrategy

3 business areas, 22
productions plants and4,983 employees

All figures as of Q1 2024, LTM
1 As of May 17 2024

Enhanced profitability
reaching an adj. EBITAof MSEK 1,947 andimproved the margin to13.6%

Market cap ofMSEK 43 3481 withover 14 000
shareholders

Our Purpose…

For customer
success and ahealthier planet5

A global footprint with a decentralisedorganisation

Order Intake per region

17%
42%

41%

Americas

EMEA

APAC

Net sales per region
Munters Group

14%

Finance & Risk
management
HR &Sustainability

AirTechAll figures as of Q1 2024

21%
65%

Business
Excellence & IT

FoodTech

DCTAmericas

EMEAAPACWe assist our customers in securing critical operations,production quality and to become more sustainable
State-of-the-art coolingsolutions for data centers

Ultra dry air for battery
production

Climate & hygiene control forfood production industry

Dehumidification forwindmills & infrastructure

Indoor climate solutions for
agriculture & greenhouses

Leading supplier of rotors &other components

Clean Technology solutions
for a healthier planet

Service offering to a broad
range of customers

Constant humidity for thepharmaceutical industry

A leading software solution
provider for food producers

Well-positioned to capitalize on strong megatrends &be part off the solution for a more sustainable world
Urbanization and an
aging & growing
population

Demand forenergy & water
efficient products

Secure operationsof infrastructure

Full battery valuechain

Pharma production

Wind power
expansion &transmission
Service toprolong life

Clean air &decarbonising
Food safety &efficient foodvalue chains

Accelerating
digitization & use ofAIDigitalization

Electrification

Climate change &resource scarcity

Globalization
challenges & marketdynamics

Data Centercooling

Quality products

Semiconductors &electronics

Increased
regulation

AI, Automation &connected
solutionsGreater regional
focus on supply
chains &sustainability

We aim to be a market leader in prioritized markets andin prioritized segments

Uniqueapplication
knowledge

Proven energy
efficientproducts &solutions

Large installedbase

Leading position

Global presence& service
offering

Strengthen, develop and expand our core –dehumidification & evaporative cooling
Service &Components
UnitsSystems

Digital connectivity

DCT

AirTechRotors withdesiccant
drying wheel

ServiceCeldek

Packaged aireconomizers

Chilled Water
CRAH

SyCoolSplit

FoodTechServiceGlasdek

Climate solutions

Digital solutions

End Market

Components

Munters strategic journey
Profitability

GrowthStability

Began journey tostrengthen
platform
Refined strategic
vision & framework
Introduction of
two businessareas: AirTech &FoodTech

11

Reorganization to
decentralize theentire value chain
Discontinuation of
Data Center Europe& AirTech
Commercial
Review of productportfolio

Efficiency
improvements
across the entire
value chain
Focus on working
capital
Revised strategy
for AirTech &FoodTech

Enhanced pricingmodelsSustainability fully
integrated intobusiness strategy
Strategic review of
FoodTech productoffering initiated

Increased focus onprioritized customer
and market
segments
Investments indigitization,
automation &resource utilization
DCT established as
separate businessarea

New financial
targets set
Acquisitions acrossall business areas
Deeper focus onenergy efficientsolutions
Strengthening
position in Clean
Technologies

Munters strategic journey - Gearing up for the future

Positioning for the
new growth wave
CO2 reduction

Integrated operations

Fully digital

Talent & Leadership

For customer successanda healthier planer

Strengthening our CO2 reduction ambitions

CO2 reduction» Next step in future proofing the company – commitment to near-termemission reductions in line with SBTi
» Majority of our carbon footprint comes from the utilization of ourproducts and now we will set new targets for Scope 3» Further developing our unique and protected technology and innovation​
CO2 reduction targets for 2030:» Net zero Scope 1 and 2» Reduce Scope 3 - aligned with the Paris Agreement 1.5°C

Ambition – a digital organisation & customer offering
Digital Ambitions
Clustered around:

Customers

Differentiad business models in the business areas

AirTech

DCTOptimization

Organization

FoodTech”Spearhead in fully digital”

Security

Technology

Fully digital

Integrated operations - better decision-making
and improved overall efficiency
Integration of people &framework
Digital tools & data sharing

Agile
ways ofworking•

Increase Efficiency•

Reduce Costs•

Improve Safety•

Enhance Decision-Making

Strong focus on
improving theworking capital

Integrated
operations

Acquisitons andintegrations acrossall business areas

Optimized value chain

Began the journey
to strenghten
platform

Reorganization to
decentralize theentire value chain

Efficiency
improvements
across the entire
value chain

Review of productportfolio

Accelerating
Munters Production
Sysem (MPS) - built
on Lean & WCM
practicesEnhanced focus on
pricing models &sustainability

Deeper innovation
focus on energy
efficient solutions
Investments indigitization,automation &resource utilization

Focus growthWays of working
Operational excellenceTalent &LeadershipGood leadership –the foundation ofengaged & highperforming teams… to own

Our values… to work at

A great company…

Sustainable value creationPassion for results
There is always a better way
Team spirit… to work withTargets & ambitions

Service ambition updated toreflect strategic direction

Service & Software and Components
40%

Previous service ambition has been revised andextended to reflect Munters strategic focus
and business model:
Service: After market service, incl.
installations and Software (SaaS)
Components

30%

20%10%0%
2019

2020

2021

2022

Previous ambition

New ambition:

Service 30% of net sales

Service, Software & Components>1/3 of net sales

2023

Net sales target updated toreflect next growth wave
Net sales growthOld target:

organic net sales
target of 10%

Updated target:

average annual total
net sales growth of>14%

25%

15%
New Financial target 14%
Old Financial target 10%

5%

2019

2020

2021

-5%

How to reach it?
Organic growth fueled by new &upcoming growth areas
Supported by active M&A agenda

Net sales

2022

2023

Adjusted EBITA target unchanged
Adj. EBITA margin
An adj. Ebita margin of>14%

15%

Financial target >14%

10%

5%

How to reach it?

0%

Driving strategic initiatives to enhancemargins
Management of different businessmodelsContinuing to invest strategically tocreate long-term sustainable growth* Organic growth p.a. over a business cycleOWC/Net sales target unchanged
OWC/net sales

OWC/ net sales in the rangeof13-10%20%

15%
Financial target range 13-10%

10%

5%

0%

How to reach it?
Continued focus on strong
cash flow management
practices
Commercial and operational
excellence

2019

2020

2021

2022

2023

Average OWC (Operating Working Capital) last twelve months as %of net sales for the same period* Organic growth p.a. over a business cycle

Financial and Sustainability targets –aligning and setting a strategic goal agenda

DividendPolicy

OWC/NS*ProfitGrowth

Mid-term financial targets
Average annual total
net sales growth >14%
over a business cycle

Adjusted EBITA
margin > 14%

Average OWC of net
sales in the range of
13–10%

Sustainability targets 2030
Reduce CO2e

E

Scope 1 & 2: net zero,
Scope 3: aligned with
Paris Agreement 1.5°C

Gender equity

S

30% women in workforce& women leaders

Code of Conduct

G

Annual dividend corresponding to 30-50% ofnet income for the year

* Average OWC (operating working capital) last twelve months as % of net sales for the same period** 100% compliance for the Employee Code of Conduct (CoC), 100% compliance for the Supplier CoC (Direct material) and continuous increasing compliance for the Customer CoC

Continuous
improvements incompliance with
Code of Conducts**

Shifting into the second gear…

Innovation
Sustainability
GrowthProfit2019-2023

2024 ->

Aligned for profitable growth

Well positioned for
growth in markets
driven by megatrends

24

Continuing on thesuccesful path forsustainable growth

Delivering world-classenergy-efficeint
solutions improving
customer impact

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 in such forward-looking
statements are based on reasonable assumptions, no assurance can be given that suchexpectations prove to have been correct, as forward-looking statements are subject toboth known and unknown risks and uncertainties and a variety of factors that could cause
actual results or outcomes to differ materially from those expressed or implied by suchforward-looking 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 of them in light of new information arisingor future events.