Q4 2023
Strengthened market position andstrong results
October-December

January-December– Order intake increased +82% organically, with strong
growth in Data Center Technologies (DCT) andFoodTech while AirTech experienced lower growththan last year. DCT continued to see strong demand,in North America two large orders of appr. BSEK 2.2
were received in the quarter and several smallerorders were placed in both Americas and Europe.

– Order intake declined -21% organically, mainly as
customers in 2022 ordered solutions longer inadvance because of previous supply chain
challenges, ie lead times has shortened in 2023.

– Net sales increased +16% organically, primarily
through very strong growth in DCT. In FoodTech all
regions contributed to increased net sales, especially
Americas. AirTech had a flat development of net
sales.
– The adj. EBITA margin improved mainly driven by thenet sales increase in DCT, efficiency improvement
efforts in all business areas as well as contributions
from net price adjustments.
– Earnings per share, before and after dilution, was SEK
0.3 (0.7) in the fourth quarter.
– Cash flow from operating activities improved mainly
because of improved earnings and a reduction in
operating working capital.

– Net sales grew +27% organically with strong
growth especially in DCT, driven by high activity
in project deliveries. AirTech also showed good
growth whereas FoodTech had flat development.
– The strong improvement in adj. EBITA margin ismainly related to net sales increases in AirTech
and DCT, net price increase as well as efficiency
improvement efforts in all business areas.
– Earnings per share for the full year, before
dilution, was 4.30 (3.18) and after dilution, wasSEK 4.30 (3.17).
– Net debt in relation to adjusted EBITDA was 2.1x
compared to 2.2x at end of September 2023 and2.9x at the end of December 2022.
– In July a strategic review of the equipment
business in FoodTech was initiated. The review isongoing and expected to be finalized in the firsthalf-year of 2024.

Events after the close of the period

Net salesorganic growth+16%
Adj. EBITA margin

12.8%
Operating working
capital/net sales

14.2%– On January 22, Munters released preliminary fourth quarter and full year results 2023 in advance due to aransomware attack at a hosting provider, Tietoevry as it could not be ensured, that the information had
remained confidential. Munters estimates that the event will have no impact in 2024.
– The Board of Directors proposes a dividend of 1.30 SEK (0.95) per share totaling a dividend of MSEK 237 (173)
to be paid in two equal installments. This represents 30% (30%) of net income in 2023.

Financial summary

Q4

Jan-Dec

MSEK
Order intake
Net sales
Growthof which organic growthof which acquisitions and divestmentsof which currency effects
Operating profit (EBIT)

2023
5,651
3,659
22%
16%
4%
1%
375

2022
3,143
3,011
46%
26%
4%
16%
255

Operating margin

10.3

8.5

Adjusted EBITA

467

304

Adjusted EBITA margin, %

12.8

10.1

58
0.30
0.30
670
14.2%
4,620
2.1

131
0.70
0.70
427
12.7%
3,825
2.9

Net income
Earnings per share before dilution, SEK
Earnings per share after dilution, SEK
Cash flow from operating activities
OWC/Net Sales
Net debt
Net debt/Adjusted EBITDA, LTM

Interim report October-December 2023

∆%
80
22

47
54
-56

2023
14,116
13,930
34%
27%
3%
5%
1,586

2022
16,83010,386
41%
23%
4%
15%
881

11.4

8.5

1,839

1,070

13.2

10.3

792
4.30
4.30
1,066
14.2%
4,620
2.1

577
3.18
3.17
772
12.7%
3,825
2.9

∆%
-16
34

80
72
37

1

CEO comments
Achievements in 2023 positions us for a continued successful journey in the years ahead
The strategic actions we have taken in recent years, focusing on growth in prioritized areas, footprint
optimization and improving efficiency, materialized in very strong achievements in 2023. In summary, weachieved very strong net sales growth, improved profitability and strengthened our market position
significantly in all business areas.
Strong net sales and robust improvement in profitability
In the fourth quarter order intake improved, driven by major orders in the US for DCT, reaffirming ourstrengthened market position in this market. FoodTech developed positively mainly driven by a recovery in
the European market for Climate solutions. AirTech had a lower level of order intake, mainly as no large
orders were received in the quarter. We also noted a continued shift in customer demand towards smallerorders with shorter lead times, mainly in Americas. Net sales increased strongly, with a positive
development in DCT and FoodTech, whereas AirTech had a flat development. Digital solutions in FoodTech
continued to see strong growth in the SaaS revenue (ARR) growing +69 percent in the quarter. The
adjusted-EBITA improved because of a net sales increase in DCT, efficiency improvement efforts in all
business areas as well as contributions from net price adjustments. In AirTech the margin declined mainly
due to a changed business mix, with a smaller share of components and service sales. Cash flow fromoperating activities improved mainly driven by higher profits, which led to lower leverage. We remaincommitted to strengthening our resilience by improving cash flow and reducing working capital.
Navigation amidst geopolitical volatility and complexity important for continued success
The continued digital transformation as well as electrification led to an underlying strong growth in our
main markets throughout the year. Simultaneously, the business landscape has been marked by growing
geopolitical instability and heightened complexity. I am very proud of our employees that have managed tonavigate in this landscape and deliver on our long-term strategic ambitions at the same time as managing
daily challenges and delivering strong results. In the fourth quarter we strengthened our position in Asia by
the acquisition of ZECO, an Indian manufacturer of air treatment solutions. This provides us with a second
strong hub in the region next to China. In response to growing market demand for the solutions we provide
in AirTech we also broke ground on an all-new site for the North American market in the fourth quarter. The
facility will be our largest facility and is being designed to support Munters’ goal of being Net Zero from ouroperations by 2030. It includes electrification of processes and equipment, implementing considerable
energy efficiency measures, and obtaining electricity from renewable energy sources. This investment is an
important cornerstone of Munters transformative journey to become more efficient and agile. The strategic
review of the equipment business in FoodTech is ongoing and I expect this to be finalized in the first halfyear of 2024.

Klas Forsström
President and CEO“Achievements in 2023

positions us for a continued
successful journey in the years
ahead.”In 2024 we will continue to invest for growth
I am greatly confident that we are well positioned towards future growth areas for Munters. In the current
market environment, it is imperative for us to constantly be ahead of the curve and invest for future growth.
Therefore, going into 2024 we remain committed to continuously exploring acquisition possibilities that
contribute to the expansion and reinforcement of our technology and market presence. We will also
continue to invest in our global footprint and innovation to ensure we continue to exceed our customers’
expectations and strengthen our market position.
I want to thank all employees for their unwavering commitment and contribution to our strong results.

Midterm financial targets

Sustainability targets*

Net sales growth:

Annual organic growth of net sales of 10%
Performance Q4 2023: 16% (26)

Renewable
electricity1:

80% by 2026, eventually 100%,
Performance Q4 2023: 80% (72)

Adjusted EBITA
margin:An adjusted EBITA margin above 14%.
Performance Q4 2023: 12.8% (10.1)

TRIR2:

Zero accidents in production
Performance Q4 2023: 1.2 (1.8)

OWC/net sales:

Average (LTM) operating working capital in therange of 13-10 % of net sales.
Performance Q4 2023: 14.2% (12.7)

Women in
workforce:

30% by 2025
Performance Q4 2023: 22% (21)Dividend policy:

Munters aim to pay an annual dividend
corresponding to 30-50% of its consolidated
income after tax for the period.

Womenleaders:

30% by 2025
Performance Q4 2023: 21% (22)Dividend proposal 2023: 30% (SEK 1.30 per share,
totaling MSEK 237)

Service share:

Service share 30% of net sales in the long term
Performance Q4 2023, LTM: 13.1% (14.9)

See Munters Annual and Sustainability report (ASR) 2022, pages 48-80, forfurther information on goals and outcome or at www.munters.com. For fulldescription of the dividend policy, see the ASR 2022, page 9 or at
www.munters.com.

Interim report October-December 2023

* Last 12 months
1

In production plants

Total Recordable Incident Rate (number of accidents where theemployee had to seek medical assistance multiplied by
200,000/number of hours worked)
22

Financial performance
Q4
MSEK
Order intake
AirTechDCT
FoodTech
Corporate & elim.
Net sales
AirTechDCT
FoodTech
Corporate & elim.
Adjusted EBITA
AirTechDCT
FoodTech
Corporate & elim.
Adjusted EBITA margin, %AirTechDCT
FoodTech

2023
5,651
1,922
3,184
555
-10
3,659
2,136
925
617
-20
467
305
144
60
-41
12.8
14.3
15.6
9.7

Quarterly order intake(MSEK)

Jan-Dec
2022
3,143
2,642
30
483
-12
3,011
2,013
500
514
-16
304
329
36
4
-65
10.1
16.3
7.1
0.7

∆%
80
-27
n.m.
15
22
6
85
20
54
-7
305
n.m
-

2023
14,116
6,796
4,948
2,433
-61
13,930
8,226
3,408
2,363
-67
1,839
1,278
519
222
-181
13.2
15.5
15.2
9.4

2022
16,830
8,399
6,245
2,242
-56
10,386
6,830
1,401
2,211
-56
1,070
1,014
84
128
-156
10.3
14.8
6.0
5.8

∆%
-16
-19
-21
9
34
20
143
7
72
26
520
73
-

Order intake
October-December 2023

8,000

20,0006,000

15,0004,000

10,000

2,000

5,000

0

0
Q4
21

Q2

Q4
22
Quarter

Q2

Q4
23
LTM

Order intake per Business Area
Q4, 2023 (MSEK)

0%
AirTech 34%

50%
DCT 56%

100%
FoodTech 10%

Order intake per region
Q4, 2023 (MSEK)

Order intake amounted to MSEK 5,651 (3,143), (organic development of +82%, structural +4%, currency effects-7%), with strong growth in DCT and FoodTech while AirTech experienced lower growth than last year.
In AirTech no larger orders were received in the quarter compared to last year when two large orders with a
combined value of appr. MSEK 560 was received in the battery sub-segment in North America. In the short-term
customers are placing orders closer to delivery, partly driven by the more unstable macroenvironment. In thelong-term underlying growth drivers for our main markets in AirTech remain strong. Order intake in DCT
continued to see strong demand, in North America two large orders of appr. BSEK 2.2 were received in thequarter as well as several smaller orders placed in Americas and Europe. Order intake in FoodTech was positive,
primarily driven by EMEA where a recovery in the market was seen. The slight recovery in APAC continued in thequarter, whereas Americas showed stable development.
For more information on the order intake, see the business area comments on pages 6, 7 and 8.

January- December 2023
Order intake during the year amounted to MSEK 14,116 (16,830), (organic development of -21%, structural +2%,
currency effects +3%), mainly as customers in 2022 ordered solutions in advance because of previous supply
chain challenges.
The order backlog remained flat and amounted to MSEK 11,333 at the end of the year compared to MSEK 11,463
in the fourth quarter 2022. The majority of the backlog is attributable to large orders received in DCT and
AirTech to be delivered throughout 2025.

Net sales

0%Americas 74%

50%
EMEA 18%

100%
APAC 7%

Quarterly net sales,(MSEK)
4,000

16,0003,000

12,000

2,000

8,000

1,000

4,000

0

0
Q4 Q1 Q2Q3Q4 Q1 Q2Q3Q421
22
23
QuarterLTM

Net sales per Business Area
Q4, 2023 (MSEK)October-December 2023
Net sales grew to MSEK 3,659 (3,011) (organic growth +16%, structural +4%, currency effects +1%). DCT continued
to contribute to strong growth through good deliveries on large orders. AirTech had a flat development, withgrowth mainly in Americas offset by weaker development in APAC and stable development in EMEA. Within
FoodTech all regions contributed to increased net sales, especially Americas. Service net sales amounted to
MSEK 539 (493) representing 15% (16) of total net sales with an organic growth of -9%.
For more information on the net sales, see the business area comments on pages 6, 7 and 8.

January-December 2023
Net sales grew to MSEK 13,930 (10,386) (organic growth +27%, structural +3%, currency effects +5%). Strong net
sales growth was reported in especially DCT driven by high activity in project deliveries. AirTech also showed
good growth whereas FoodTech showed flat development. Service net sales for the year amounted to MSEK
1,821 (1,548) representing 13% (15) of total net sales with an organic growth of 4%.

0%
AirTech 58%

100%
FoodTech 17%

Net sales per region Q4, 2023 (MSEK)

0%
Americas 59%

Interim report October-December 2023

50%
DCT 25%50%
EMEA 25%

100%
APAC 17%3

Results
Adjusted EBITDA and EBITA excludes Items Affecting Comparability, IAC, see page 18 for disclosure of the IACs.

Quarterly gross margin, %35%

October-December 2023

30%

The gross margin amounted to 32.6% (29.2). The margin improved mainly as a result of strong net sales growthin DCT, net price increases and positive effects from efficiency improvements.

25%

Adjusted EBITDA amounted to MSEK 556 (381), corresponding to an adjusted EBITDA-margin of 15.2% (12.7).
Depreciation of tangible assets amounted to MSEK -88 (-78), whereof depreciation of leased assets was MSEK
-47 (-44).

20%
Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
22
21
23

Adjusted EBITA amounted to MSEK 467 (304), corresponding to an adjusted EBITA-margin of 12.8% (10.1). The
margin improved mainly because of a net sales increase in DCT, efficiency improvement efforts in all businessareas as well as contributions from net price adjustments. This was offset by a weaker margin in AirTech,
resulting mainly from a changed business mix, with a lower share of components and service sales.

Quarterly adjusted EBITDA
margin, %Adjusted EBITA for Corporate amounted to MSEK -41 (-65).

10%

20%
15%

5%

Operating profit (EBIT) was MSEK 375 (255), corresponding to an operating margin of 10.3% (8.5). Amortization
and write-downs of intangible assets were MSEK -44 (-39), where MSEK -7 (-8) related to amortization of
intangible assets from acquisitions.

0%
Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
22
21
23

For more information on the results, see the business area comments on pages 6, 7 and 8.

January-December 2023

Quarterly adjusted EBITA
margin, %The gross margin amounted to 31.7% (29.1).

20%

Adjusted EBITDA amounted to MSEK 2,166 (1,333), corresponding to an adjusted EBITDA-margin of 15.5% (12.8).
Depreciation of tangible assets amounted to MSEK -327 (-263), whereof depreciation of leased assets was MSEK
-183 (-136).
Adjusted EBITA amounted to MSEK 1,839 (1,070), corresponding to an adjusted EBITA-margin of 13.2% (10.3).
The strong improvement is mainly related to net sales increases in AirTech and DCT, net price increase as well as
efficiency improvement efforts in all business areas.

15%
10%
5%
0%
Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
22
23
21

Operating profit (EBIT) was MSEK 1,586 (881), corresponding to an operating margin of 11.4% (8.5). Amortization
and write-downs of intangible assets for the year were MSEK -156 (-114), where MSEK -45 (-36) related toamortization of intangible assets from acquisitions.

Quarterly EBIT margin, %Items affecting comparability (IAC)

10%

Items affecting comparability totaled MSEK -49 (-9) in the fourth quarter, including costs for restructuring
activities of MSEK -22 (1) and costs for M&A activities of MSEK -15 (-10). Other IACs totaled MSEK -12 (0) andrelate to costs for the ongoing strategic review of the equipment offering in FoodTech.

0%

For the full year IACs totaled MSEK -96 (-75) including restructuring activities of MSEK -34 (-35) and costs for
M&A activities of -29 (-19). Other IACs of MSEK -32 (-21) were recorded in the year and comprise costs related tothe strategic review of the equipment offering in FoodTech. In 2022, Munters incurred IACs related to thedecision to close down business activities in Russia of MSEK -27 included in Other IACs.

20%
15%

5%
Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
21
22
23

Tax rate LTM, %40%
30%

Financial items

20%

Financial income and expenses for the fourth quarter amounted to MSEK -99 (-64). Compared to the same
period last year interest expenses have increased due to higher interest rates in combination with increased
outstanding debt. Interest expense on lease liabilities amounts to MSEK -11 (-10) in the fourth quarter.

0%

Financial income and expenses for the full year amounted to MSEK -331 (-142) mainly due to increased interest
expenses.

Taxes
Income taxes for the fourth quarter was MSEK -218 (-61). The effective tax rate in the fourth quarter was 79%(32). Income taxes for the full year was MSEK -463 (-162). The effective tax rate for the full year was 37% (22).
In the fourth quarter a deferred tax expense of MSEK 80 attributable to impairment of deferred tax assets onloss carry-forwards was recognized, explaining the high effective tax rate in the quarter and for the full year. The
impairment loss has no cash flow impact.

10%
Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
21
22
23

Quarterly EPS, SEK
1.5
1.0
0.5
0.0
Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
21
22
23

Earnings per share
Net income attributable to Parent Company’s ordinary shareholders amounted to MSEK 58 (131) in the fourth
quarter and for the full year 2023 net income amounted to MSEK 792 (577). Net income in the fourth quarterdecreased to MSEK 58 (131) mainly due to an increase in financial and tax expenses as well as additional IACs
from restructuring and M&A activities. A deferred tax expense of MSEK 80 was recognized in the quarter
attributable to impairment of deferred tax assets on loss carry-forwards. The impairment loss has no cash flow
impact.

Interim report October-December 2023

4

Earnings per share, before and after dilution, was SEK 0.3 (0.7) in the fourth quarter. Earnings per share for thefull year, before dilution, was 4.30 (3.18) and after dilution, was SEK 4.30 (3.17).
The average number of outstanding ordinary shares in the fourth quarter, for the purpose of calculating
earnings per share, was 182,512,107 before dilution and 182,523,285 after dilution. The average number ofoutstanding ordinary shares for the full year, for the purpose of calculating earnings per share, was 182,274,370
before dilution and 182,284,750 after dilution.

Financial position
Net debt as of December 31 amounted to MSEK 4,620 compared to 4,399 at the end of September 2023 and3,825 at the end of December 2022. In the fourth quarter net debt increased mainly due to the acquisition of the
Indian air handling equipment company ZECO financed by debt. Net debt in relation to adjusted EBITDA was
2.1x compared to 2.2x at end of September 2023 and 2.9x at the end of December 2022.

Net debt per quarter

6,000

3.5

5,000

3.0

Interest-bearing liabilities, including lease liabilities, increased by MSEK 1,355 compared to end of December
2022 and amounted to MSEK 5,850 (4,495). The increase is driven mainly by acquisitions financed through debt
executed during the recent years as well as increased operating working capital in the recent twelve months. The
Group’s interest-bearing liabilities have an average maturity of 2.7 years.

4,000

In 2023 Munters closed the acquisition of the Swedish manufacturer of components, Tobo components, theFrench service business SIFT, the acquisition of a majority share in InoBram the Brazilian manufacturer ofcontrollers and complimentary accessories for the broiler and swine segments, as well as the Indian air handlingequipment company ZECO.

0

2.5
2.0

3,000

1.5

2,000

1.0

1,000

0.5
Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
21
22
23

Quarter

Leverage

Cash and cash equivalents amounted to MSEK 1 532 (914) as of December 31 which is an increase of MSEK 618.
Average capital employed for the last twelve months was MSEK 11,230 (8,969). Return on capital employed(ROCE) for the last twelve months increased to 14.4% (9.9) because of improved operating earnings.

ROCE, %Cash flow

20%

Cash flow from operating activities amounted to MSEK 670 (427) in the fourth quarter and MSEK 1,066 (772) for
the full year 2023. Cash flow from changes in working capital had a positive impact of MSEK 389 (189) in the
fourth quarter and a negative impact of MSEK -335 (-84) for the full year 2023.

10%

Total cash flow for the fourth quarter amounted to MSEK 405 (192) and MSEK 658 (184) for the full year 2023.
The total cash flow for the year was impacted by acquisitions of MSEK -744, investments in tangible andintangible assets of MSEK -670, payment of dividend to external shareholders in May 2023 of MSEK -173 and net
increased external borrowing of MSEK 1,382.

15%

5%
0%
Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
21
22
23

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 3 (0).

Interim report October-December 2023

5

AirTech

Quarterly net sales - AirTech,(MSEK)

Business area AirTech is a global leader in energy-efficient air treatment for industrial and commercial
applications. We offer solutions for mission-critical processes that require exact control of moisture andtemperature, 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.

Q4
2023
3,250
1,922
-27%
2,136
6%
0%
5%
1%
264

2022
4,698
2,642
51%
2,013
46%
29%
2%
15%
319

Operating margin, %12.4

Amortization of intang. asset
Items affecting comparability
Re-allocation of int. services
Adjusted EBITA

-4
-36
305

Adjusted EBITA margin, %

14.3

16.3

∆%
-31
-27

2022
4,698
8,399
44%
6,830
46%
31%
0%
15%
976

15.9

14.5

14.3

-11
-1
3
329

-39
-49
1,278

-29
-9
1,014

15.5

14.8

-17

-7

8,000
6,000

1,200

2023
3,250
6,796
-19%
8,226
20%
13%
3%
4%
1,190

6

10,0001,600

Jan-Dec

MSEK
External order backlog
Order intake
GrowthNet sales
Growthof which organic growthof which acq. and div.
of which currency effects
Operating profit (EBIT)

2,400
2,000

∆%
-31
-19

26

October-December 2023
Order intake
Order intake decreased -31% organically, with a lower level of development in APAC and Americas whereas
EMEA saw a slight increase. Last year in the fourth quarter two large orders were received in the battery
sub-segment in Americas from a multinational automotive manufacturer with a combined value of appr.
MSEK 560. Excluding these orders Airtech’s reported order intake declined -8%. No large orders werereceived in the fourth quarter.
• The Industrial segment (excl. battery) showed a slight increase in demand, primarily in Americas and
EMEA. The battery sub-segment had a weaker development in all regions. In APAC the weaker
development was mainly related to China where the consolidation of the battery market continues. The
market in EMEA and Americas was weaker mainly as customers are placing orders closer to delivery, ielead times are shortening, partly driven by the more unstable macroenvironment.
• Order intake in the commercial sub-segment increased as a consequence of the Zeco integration.
• Clean Technologies (CT) declined in all regions mainly due to delays in customer decisions related tomajor investments.
• Components developed flat, mainly as the weaker development in the Chinese battery market also
affected component replacements. Growth was good in Americas, where the acquisition of Hygromedia
and Rotorsource in 2022 continued to contribute positively. Service declined due to weaker markets in
APAC and Americas, slightly offset by EMEA.

2,000

400
0

20

22

4,000

800

0
Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q421
22
23
Quarter
LTM

Quarterly adjusted EBITA
margin % - AirTech
20%

20%

15%

15%

10%

10%

5%

5%

0%

0%
Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q423
21
22
Quarter
LTM

Order intake per region
Q4, 2023 - AirTech (MSEK)

0%
Americas 51%

50%
EMEA 31%100%
APAC 18%

Net sales per region
Q4, 2023 - AirTech (MSEK)

Net sales
Organic net sales had flat development, with growth mainly in Americas offset by weaker development in
APAC and stable development in EMEA. Service accounted for 20% (24) of net sales with an organic
decrease of -13%, mainly driven by lower sales of spare parts in Americas.

0%
Americas 48%

50%
EMEA 28%100%
APAC 24%• The Industrial segment (excl. battery) showed growth in all regions, driven by the food and pharma
sub-segments in Americas and APAC. The battery sub-segment showed strong growth in Americas,
whereas EMEA and APAC developed weaker.
• Clean Technologies had stable development in APAC and EMEA, with a weaker development in
Americas.
• The Components segment showed good growth in Americas and EMEA, whereas APAC had a negative
development. The Service segment had weaker development, with growth mainly in APAC and EMEA.

Adjusted EBITA
The adjusted EBITA margin decreased mainly due to a changed business mix, with a smaller share ofcomponents and service sales.
• Efficiency improvements continued to have a positive impact on the margin, slightly offset by a lower
production utilization rate in EMEA and APAC.

January-December 2023
• Order intake declined -24% organically. The components segment had good growth, offset by a weaker
development in the Industrial segment. The Service segment showed stable development.
• Net sales increased +13% organically, primarily through strong development in the Industrial segment in
all regions especially the battery sub-segment. Components showed good growth in all regions andService grew in EMEA and APAC with a flat development in Americas. Service accounted for 19% (21) of
net sales with an organic growth of +3%.
• The adjusted EBITA margin improved because of volume increase combined with positive contributions
from efficiency improvements and net price increases.

Interim report October-December 2023

6

Data Center Technologies

Quarterly net sales - DCT,(MSEK)
1,200

Business area Data Center Technologies (DCT) is a leading supplier of advanced climate cooling solutions usinga wide range of heat rejection technologies. Our solutions produce significant energy savings for data centerscompared with traditional cooling solutions. With a diversified product portfolio and extensive application
knowledge, we create sustainable climate solutions for data center operators worldwide. DCT has operations in
Virginia and Texas in the US, as well as in Ireland.

Q4
MSEK
External order backlog
Order intake
GrowthNet sales
Growthof which organic growthof which acq. and div.
of which currency effects
Operating profit (EBIT)

2023
7,206
3,184
n.m.
925
85%
81%
4%
139

2022
5,937
30
-92%
500
173%
106%
26%
41%
30

Operating margin, %

15.0

6.0

14.6

5.1

Amortization of intang. asset
Items affecting comparability
Adjusted EBITA

-5
144

-5
0
36

-22
519

-20
8
84

Adjusted EBITA margin, %

15.6

7.1

15.2

6.0

85

360

2023
7,206
4,948
-21%
3,408
143%
131%
12%
497

305

3,000

800
600

2,000

400

1,000

200
0

Jan-Dec
∆%
21
n.m.

4,000

1,000

2022
5,937
6,245
494%
1,401
100%
35%
35%
30%
71

Q4
21

∆%
21
-21

Q2

Q4
22
Quarter

Q2

0
Q4
23
LTM

143
Quarterly adjusted EBITA margin % DCT

597

520

October -December 2023
Order intake
Order intake increased significantly, with two large orders of appr. BSEK 2.2 received in the quarter. Also,
several orders were received from colocator and hyperscaler customers in Americas as well as colocators
in EMEA. Excluding the cancellations of MSEK 465 received in the fourth quarter last year, order intake
increased organically +713%.
• During the quarter two large orders were received from leading data center colocation operators in the
US. The first order with a value of appr. MSEK 655 and the other order with a value of appr. BSEK 1.5.
Deliveries of these orders will take place throughout 2025.
• Underlying demand continued to be good, driven by strong long-term trends such as continued
digitization and an increased focus on energy-efficient cooling solutions for data centers. Hyperscalers
are driving increased market activity by leasing space from colocators.
• Order intake in EMEA was good in the quarter, primarily for direct evaporative air handlers.

Net sales
Net sales increased +81% organically, driven by good deliveries on large projects.
• Executions on large orders announced during last year are proceeding according to plan.
• The production ramp-up in Europe of Munters products is progressing i.e. sales for Munters packaged
evaporative economizers began in 2023 and SyCool Split is planned to be available for sale in Europe
during 2024.

20%

20%

15%

15%

10%

10%

5%

5%
0%

0%
Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q421
22
23
Quarter

LTM

Order intake per region Q4,2023 – DCT (MSEK)

0%50%
Americas 92%
EMEA 8%100%
APAC 0%Net sales per region Q4,2023 - DCT (MSEK)

0%50%
Americas 88%
EMEA 11%100%
APAC 1%

Adjusted EBITA
The adjusted EBITA margin improved significantly primarily related to strong volume growth, combinedwith a high utilization rate in production.
• Indirect costs in relation to net sales are expected to increase as investments in resources andcompetence are planned to accelerate over the coming quarters in order to capture growth
opportunities.

January- December 2023
• Order intake decreased -24% organically mainly as customers ordered solutions in advance last year
because of previous supply chain challenges.
• Net sales increased +131% organically, driven by high activity in large projects and a ramp-up of
production.
• A strong improvement in adjusted EBITA was realized due to significant volume growth, net priceincreases and efficiency improvements.

Interim report October-December 2023

7

FoodTech

Quarterly net sales - FoodTech,(MSEK)

Business area FoodTech is one of the world’s leading suppliers of innovative, energy-efficient climate systems
for livestock farming and greenhouses, as well as software for controlling and optimizing the entire foodproduction value chain. Our solutions increase productivity while contributing to sustainable food production,
where strict requirements are placed on quality, animal health and food safety. In July 2023 Munters announced
an initiation of a strategic review of FoodTech’s equipment business.

Q4
MSEK
External order backlog
Order intake
GrowthNet salesof which SaaS
SaaS ARR
Growthof which organic growthof which acq. and div.
of which currency effects
Operating profit (EBIT)

2022
828
483
-5%
514
33
133
1%
-11%
12%
-23

Operating margin, %3.5

Amortization of intang. asset
Items affecting comparability
Re-allocation of int. services
Adjusted EBITA

-26
-12
60

Adjusted EBITA margin, %

9.7

0.7

∆%
6
15

n.m

2023
877
2,433
9%
2,363
183
226
7%
1%
3%
4%
107

-4.4

4.5

0.2

-20
-7
1
4

n.m

-80
-35
222

-59
-64
128

9.4

5.8

20
69
69

2022
828
2,242
4%
2,211
119
133
9%
-2%
11%
5

∆%
6
9

n.m

500

100
0

0
Q4 Q1 Q2 Q3Q4 Q1 Q2 Q3Q421
22
23
Quarter
LTM

14%

12%

12%

10%
8%
6%

6%

73

Net sales
Net sales increased +16% organically, with contributions from all regions.
Climate solutions in Americas showed strong growth, primarily in the broiler and layer segments.
Digital solutions in the US grew with increased software recurring revenues (SaaS) +69% to MSEK 56,
with an ARR (Annualized Recurring software Revenue) of MSEK 226.
Region EMEA improved, showing good development in all segments except swine.
APAC showed stable development, with a continued weak swine market in China whereas the layer
segment showed good growth.

•
•

1,000

8%

Climate solutions in the Americas showed a slight increase, with strong growth in the swine and layer
segments, offset by weaker development in the broiler segment. Digital solutions in Americas
decreased, as last year included a large Software-as-a-Service (SaaS) contract with one of North
America’s largest poultry producers with a value of app. MSEK 46. Excluding the large order thedevelopment was stable.
The EMEA region showed recovery in all segments, especially within the broiler segment. Controllers
also contributed to the good development.
Region APAC showed a slight recovery, with increased demand in both the swine and layer segments.

•

1,500

300

10%

Order intake increased +12% organically, primarily driven by EMEA where the market saw a recovery. The slightrecovery in APAC continued in the quarter, whereas Americas showed a stable development.

•

400

Quarterly adjusted EBITA margin %- FoodTech

Order intake

•

2,000

500

7
53
69

October -December 2023

•

2,500

200

Jan-Dec

2023
877
555
15%
617
56
226
20%
16%
6%
-1%
21

700
600

4%

4%
2%

2%

0%

0%
Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q421
22
23
Quarter

LTM

Order intake per region Q3, 2023 –FoodTech (MSEK)

0%
Americas 53%

50%
EMEA 35%

100%
APAC 12%Net sales per region Q3, 2023 FoodTech (MSEK)

0%
Americas 52%

50%
EMEA 34%

100%
APAC 15%

Adjusted EBITA
The adjusted EBITA margin increased significantly with contributions from all regions, especially EMEA.
•••

Increased net sales combined with net price increases had a positive effect.
Positive effects from operational excellence improvements led to an improved margin, with recent
years’ actions to mitigate negative effects from lower net sales in both EMEA and APAC providing amajor positive contribution.
Continued good profitability improvements in Digital solutions mainly as ARR had a good growth, atthe same time as investments remained at a high level.

January-December 2023•••

Order intake increased slightly, with positive development in all regions, primarily in Americas.
Net sales showed flat development organically, mainly due to good development in Americas offset
by weak markets in APAC and EMEA during the first part of the year.
The adjusted EBITA margin improved significantly because of positive effects from net price increases
and efficiency improvement initiatives.

Interim report October-December 2023

8

Corporate

Quarterly Corporate cost (MSEK)
2.0%

The Corporate function reported an adjusted EBITA of MSEK -41 (-65) in the fourth quarter. In 2023 an adjusted
EBITA of MSEK -181 (-156) was reported. Corporate staff functions as well as minority investments areaccounted for within Corporate.

60

To further enhance Munters strategic journey Munters has started to make financial investments in start-ups
with the aim to support innovation for the group within digitalization, technology, and sustainability. In 2022,
five minority investments were made. While no new minority investments were made in 2023, Munters
participated in capital increases in three investments during the year. Two of these capital increases were madein the fourth quarter.

20

1.5%

40

1.0%
0.5%

0

0.0%
Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q421
22
23
Quarter% of Net sales, LTM

Interim report October-December 2023

9

Other information
Employees
The number of permanent FTEs (Full Time Equivalents), at December 31, 2023 was 4,981 (3,940). The amount of
FTEs at December 31, 2023 in business area AirTech was 3,345 (2,693), in DCT 615 (355), in FoodTech 870 (791)
and at Group functions 150 (99).

Outstanding shares
As of December 31, 2023, Munters held 1,933,033 treasury shares of the total shares of 184,457,817. Thus, thenumber of outstanding shares as of the balance sheet date was 182,524,784.

Dividend
The Board of Directors proposes a dividend of SEK 1.30 (0.95) per share totaling MSEK 237 (173) based on the
total number of outstanding shares to be paid in two equal installments. This represented 30 (30) per cent of
the net income 2023.

Other events during the quarter
Flagship facility being built in Amesbury, Massachusetts – In October, it wasannounced that Munters breaks ground on state-of-the-art facility in the US. The
new 40,000 m2 site will house desiccant dehumidification products and services
for the North American market and will be home to the local Munters workforce.
The aim is to be fully operational at the new site in early 2025.
Munters wins large Data Center order for SyCool Split – In October, Munters announced an order with a valueof MUSD 137 (appr. BSEK 1.5) from a leading data center colocation operator in the US. The order includes
Munters SyCool Split systems as well as field service work and will be delivered during 2025.

Ten largest shareholders
As of 31 Dec 2023
FAM AB%
28.0

Swedbank Robur Fund

6.1

First Swedish National
Pension Fund

5.7

ODIN Funds

5.6

Fourth Swedish National
Pension Fund

5.1

Capital Group

3.3

Vanguard

2.1

Columbia Threadneedle

1.7

Janus Henderson Investors

1.6

Norges Bank

1.5

Source: Modular Finance AB

Munters Data Center Technologies wins order for Computer Room Air Handlers – In December, Munters
received an order with a value of MUSD 65 (appr. MSEK 655), from a leading data center colocation operator in
the US. The order will be delivered during the first half of 2025.

Events after the close of the period
Preliminary fourth quarter and full year results 2023 released in advance – On January 22, Munters released
preliminary fourth quarter and full year results 2023 in advance due to a ransomware attack at a hosting
provider, Tietoevry, as it could not be ensured, that the information had remained confidential.

Interim report October-December 2023

10

About Munters
Munters is a global leader in energy-efficient and sustainableclimate solutions. The solutions guarantee temperature andhumidity control, which is mission-critical for customers.
Munters offers solutions to many different industries wherecontrolling temperature and humidity is mission critical. Our
solutions reduce customers’ climate and environmental impact
through lower resource consumption, and in the processcontribute to cleaner air, higher efficiency and reduced carbon
emissions. Sustainability is an important part of Munters’
business strategy and value creation.

Short facts

Purpose– ~4,981 employees (FTEs)

For customer success and ahealthier planet– >30 countries with sales andmanufacturing– 22 production units– 21% women leaders– Three business areas: AirTech, Data
Center Technologies and FoodTech
In Q4, AirTech generated 58%, Data Center
Technologies 25% and FoodTech 17% of thetotal net sales of Munters

Curiosity and a drive tocreate pioneering
technologies are part of ourDNA. Our climate solutions
are mission-critical to ourcustomers’ success andcontribute to a moresustainable planet.

The strategy of Munters
Munters has a strong position in most of our markets. We see great opportunities toimprove 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 ourgoals. Our overarching strategic priorities show which areas we regard as important to our
success. For each strategic priority we have clear action plans and ambitions what we wantto achieve. Sustainability is a priority 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 creatingenergy-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 the customer’s business andfuture needs. Our strategy is to continue to build customer insight and utilize our broadbased expertise on applications, technology andcomponents 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 energy- and resource-efficient
climate solutions. We continue to invest in our core technologies, solutions and digitization to optimize our product portfolio and ourinnovative production technology.

Markets:

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 highquality, resource-efficient solutions and a conscious effort to re-duce our own climate impact, we contribute to sustainable
development.

Excellence ineverything 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 theworkplace

Interim report October-December 2023

11

Quarterly overview Group
Income Statement
2023
MSEK
Order backlog
Order intake
Net sales
Adjusted EBITDA
Depreciation tangible assets
Adjusted EBITA
Amortization intangible assets from acq.
Amortization other intangible assets
Items affecting comparability (IAC)
Operating profit (EBIT)
Financial income and expenses
Tax
Net income-attributable to Parent Comp. Shareholders

Q4
11,333
5,651
3,659
556
-88
467
-7
-36
-49
375
-99
-218
58
55

Q3
10,025
2,494
3,560
587
-84
503
-13
-29
-7
454
-93
-98
264
260

Q4
16%
12.8
10.3
0.30
0.30
14.2
2.1

Q3
28%
14.1
12.8
1.42
1.42
13.7
2.2

2022
Q2
11,153
3,427
3,536
561
-82
479
-13
-25
-34
408
-66
-85
257
256

Q1
10,783
2,544
3,175
462
-73
389
-12
-22
-6
349
-73
-62
214
214

Q4
11,463
3,143
3,011
381
-78
304
-8
-30
-9
255
-64
-61
131
128

Q3
11,866
6,354
2,644
359
-66
293
-9
-19
6
271
-41
-53
178
176

Q2
27%
13.5
11.5
1.40
1.40
13.2
2.7

Q1
38%
12.3
11.0
1.18
1.18
12.7
2.7

Q4
26%
10.1
8.5
0.70
0.70
12.7
2.9

Q3
22%
11.1
10.3
0.97
0.97
13.1
3.0

2021
Q2
7,515
3,200
2,610
332
-60
272
-9
-15
-28
220
-14
-39
166
169

Q1
6,367
4,133
2,121
260
-59
201
-9
-14
-44
134
-23
-10
102
104

Q2
25%
10.4
8.4
0.93
0.93
13.3
2.9

Q1
16%
9.5
6.3
0.57
0.57
13.4
2.6

Q4
4,198
2,605
2,057
274
-56
217
-8
-10
-9
190
-14
-43
133
133

Key performance indicators
2022

2023
MSEK
Organic Growth, Net Sales
Adjusted EBITA margin, %Operating margin, %Earnings per share before dilution, SEK
Earnings per share before after, SEKOWC/Net Sales, %Net Debt/Adjusted EBITDA, LTM

2021
Q4
10%
10.6
9.2
0.73
0.73
13.1
2.2

Net Debt
2022

2023
MSEK
Cash and cash equivalents
Interest-bearing liabilities
Lease liabilities
Provisions for pensions
Accrued financial expenses
Net Debt

Q4-1,532
5,131
719
280
22
4,620

Q3
-1,165
4,575
770
197
21
4,399

Q4
1,726
2,038
-1,294-1,355
640
1,755

Q3
1,965
2,245
-1,156-1,725
741
2,071

Q2
-710
4,518
801
209
15
4,833

Q1
-618
3,772
781
217
24
4,175

Q4
-914
3,721
774
227
16
3,825

Q3
-698
3,424
731
187
10
3,654

Q2
2,153
2,167
-1,277-1,592
782
2,233

Q1
2,071
2,035
-1,159-1,576
466
1,837

Q4
1,956
2,020
-1,288-1,715
418
1,390

Q3
1,765
1,570
-932
-1,428
484
1,460

2021
Q2
-459
3,101
367
226
6
3,241

Q1
-565
2,830
370
298
5
2,938

Q2
1,521
1,407
-910
-1,105
493
1,407

Q1
1,316
1,263
-802
-804
231
1,204

Q4
-674
2,374
376
308
5
2,389

Operating Working Capital
2023
MSEK
Inventory
Accounts receivable
Accounts payable
Advances from customers
Accrued/deferred income, net
Operating Working CapitalInterim report October-December 2023

2022

2021
Q4
1,073
1,182
-771
-648
169
1,005

12

Condensed statement of comprehensive
incomeQ4

Jan-Dec

MSEK

2023

2022

2023

2022

Net sales
Cost of goods sold
Gross profit
Selling expenses
Administrative costs
Research and development costs
Other operating income and expenses
Share of earnings in associates
Operating profit

3,659-2,467
1,191
-342
-300
-115
-56
-3
375

3,011
-2,131
879
-307
-234
-68
-12
-2
255

13,930-9,508
4,422-1,281-1,106
-360
-82
-8
1,586

10,386-7,3683,017-1,079
-800
-236
-19
-2
881

Financial income and expenses
Profit/Loss after financial items

-99
276

-64
192

-331
1,255

-142
739

Tax
Net income for the period

-218
58

-61
131

-463
792

-162
577

55
3

128
3

784
8

577
-0

182,512,107
182,523,285
0.30
0.30

182,180,695
182,437,327
0.70
0.70

182,274,370
182,284,750
4.30
4.30

181,752,465
181,932,090
3.18
3.17

-424

-160

-274

483

Actuarial gains/losses on defined-benefit pension obligations
Income tax effect not to be reclassified to profit or loss
Other comprehensive income, net after tax
Total comprehensive income for the period

-11
2
-433
-375

-40
8
-192
-61

-46
9
-311
481

91
-18
555
1,132

Attributable to Parent Company shareholders
Attributable to non-controlling interests

-376
1

-63
2

478
4

1,133
-1

Attributable to Parent Company shareholders
Attributable to non-controlling interests
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

Items that may be reclassified subsequently to profit or loss:
Exchange-rate differences on translation of foreign operations

Items that will not be reclassified to profit or loss:

Interim report October-December 2023

13

Condensed statement of financial position
MSEK

2023-12-31

2022-12-31

NON-CURRENT ASSETS
Goodwill
Other intangible assets
Property, plant and equipment
Right-of-Use assets
Participations in associated companies
Other financial assets
Deferred tax assets
Total non-current assets

5,822
2,259
1,097
672
25
95
292
10,262

5,359
2,027
825
751
34
83
298
9,376

CURRENT ASSETSInventory
Accounts receivable
Derivative instruments
Current tax assets
Other receivables
Prepaid expenses and accrued income
Cash and cash equivalents
Total current assets

1,726
2,038
0
84
135
954
1,532
6,469

1,956
2,020
2
93
159
684
914
5,828

TOTAL ASSETS

16,731

15,204

EQUITY
Shareholders' equity
Non-controlling interests
Total equity

5,257
1
5,258

5,303
3
5,307

NON-CURRENT LIABILITIESInterest-bearing liabilities
Lease liabilities
Provisions for pensions
Other provisions
Other non-current liabilities
Deferred tax liabilities
Total non-current liabilities

4,151
553
280
62
636
455
6,135

3,721
640
227
65
223
442
5,318

CURRENT LIABILITIESInterest-bearing liabilities
Lease liabilities
Other provisions
Accounts payable
Derivative instruments
Current tax liabilities
Advances from customers
Other current liabilities
Accrued expenses and deferred income
Total current liabilities

980
167
145
1,294
33
78
1,355
92
1,193
5,337

−
135
150
1,288
−
55
1,715
257
980
4,580

TOTAL EQUITY AND LIABILITIES

16,731

15,204ASSETSEQUITY AND LIABILITIESCondensed statement of changes in equity
MSEK

2023-12-31

2022-12-31

Opening balance
Total comprehensive income for the period
Exercised share options
Put/call option related to non controlling interests
Dividends paid
Share option plan incl. deferred tax
Other
Closing balance

5,307
481
21
-377
-175
1
−
5,258

4,363
1,132
25
-58
-156
0
0
5,307

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

5,257
1

5,303
3

Interim report October-December 2023

14

Condensed cash flow statement
Q4
MSEK

Jan-Dec

2023

2022

2023

2022

Operating profit

375

255

1,586

881

Adjustment for:
Depreciation, amortization and impairment losses
Other non-cash items
Changes in provisions
Cash flow before interest and tax

132
28
-22
514

116
-12
-2
358

484
43
-11
2,102

377
-24
-24
1,210

Net financial items paid
Taxes paid
Cash flow before changes in working capital

-97
-136
281

-57
-62
238

-312
-390
1,400

-121
-233
856

Change in accounts receivable
Change in inventory
Change in accrued income
Change in accounts payable
Change in advances from customers
Cashflow from changes in operating working capital

149
188
11
111
-126
333

-484
-252
-3
364
403
29

-11
271
-267
-60
-299
-366

-635
-706
-236
397
977
-203

Change in other working capital
Cash flow from changes in working capital

56
389

159
189

31
-335

119
-84

Cash flow from operating activities

670

427

1,066

772

INVESTING ACTIVITIESBusiness acquisitions
Investments in associated companies
Investments in participations and securities in other companies
Sale of intangible assets and property, plant and equipment
Investment in property, plant and equipment
Investment in intangible assets
Cash flow from investing activities

-596
-1
1
-109
-105
-811

-420
-1
-23
8
-89
-95
-620

-744
-4
0
-323
-347
-1,418

-721
-34
-62
27
-222
-317
-1,330FINANCING ACTIVITIESExercised share options
Loan raised
Amortization of loans
Repayment of lease liabilities
Dividends paid
Other changes to financing activities
Cash flow from financing activities

7
814
-175
-39
-60
546

11
450
-36
-33
-5
386

21
2,268
-887
-156
-175
-60
1,011

25
1,503
-504
-122
-156
-5
743

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

405
1,165
-38
1,532

192
698
22
914

658
914
-40
1,532

184
674
56
914

OPERATING ACTIVITIESInterim report October-December 2023

15

Parent company
Condensed income statement
Q4
MSEK

Jan-Dec

2023

2022

2023

2022

Net sales
Gross profit/loss
Administrative costs
Other operating income and expenses
Operating profit

−
−
-0
3
3

−
−
-5
3
-1

−
−
-11
32
21

−
−
-8
8
1

Financial income and expenses
Profit/Loss after financial items

-6
-3

-2
-3

-18
3

-5
-4

Group contributions
Profit/Loss before tax

−
-3

7
4

−
3

7
3

Tax
Net income for the period

-0
-3

1
5

-0
3

1
4

-3
−
-3

5
−
5

3
−
3

4
−
4

Condensed statement of comprehensive income
Profit/Loss for the period
Other comprehensive income, net after tax
Comprehensive income for the period

Condensed balance sheet
MSEK

2023-12-31

2022-12-31

4,098
4
4,102

4,098
4
4,103

1
1
1
10
3
15

−
1
1
14
0
15

4,118

4,118

6
4,136
-394
3
3,750

6
4,136
-246
4
3,899

1
1

3
3

CURRENT LIABILITIES
Accounts payable
Accrued expenses and deferred income
Liabilities to subsidiaries
Other liabilities
Total current liabilities

3
32
327
4
366

1
16
192
6
215

TOTAL EQUITY AND LIABILITIES

4,118

4,118

ASSETSNON-CURRENT ASSETS
Participations in subsidiaries
Other financial assets
Total non-current assets
CURRENT ASSETS
Other current receivables
Prepaid expenses and accrued income
Current tax assets
Receivables from subsidiaries
Cash and cash equivalents
Total current assets
TOTAL ASSETSEQUITY 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

Interim report October-December 2023

16

Other disclosures
Accounting policies
This 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 and theSwedish Annual Accounts Act.
The accounting principles applied correspond to those presented in the
Annual- and Sustainability report 2022 (Note 1) with the exception of
accounting of invoiced but not yet received advances from customer. In thestatement of financial position these balances have historically been grossreported as assets under Accounts receivable and as liabilities underAccrued expenses and deferred income. As from Q4 2023 the balances are
net reported in the statement of financial position with the impact that
total Accounts receivable and total Accrued expenses and deferred income
decreases. This change in accounting policies have been applied
retrospectively to all periods presented in the interim report.

Environmental impact andenvironmental 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 is committed
to constant vigilance regarding the environmental impact of its operations.
Munters is committed to complying with all laws and to continuously
promoting improvements in all Environment, Health & Safety (EHS)
aspects, wherever Munters conducts business. Munters constantly seeks
opportunities to reduce risk and to create a safer, healthier, more diverseand more environmentally friendly workplace for our employees,
customers, communities, and the overall environment. Munters’
manufacturing facilities all over the world are committed to working
according to an EHS Management Program. The purpose of the EHS
Program is to ensure regulatory compliance, actively prevent injuries, andreduce the impact that our business has on the environment.

Risks and uncertainties
The 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 the Group. 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 of failure tocomply with relevant regulations in the business ethics area, e.g. antibribery 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, businessinterruption, transportation, the liability of Board members and the CEOand employment practices liabilities.

Interim report October-December 2023

In the beginning of October, 2023 Israel declared it was at war with Hamas.
Within the business area FoodTech, Munters has manufacturing ofcontrollers in Israel located south of Tel Aviv with about 140 employees.
Munters operations has so far not been impacted by the situation and wecontinue to monitor the situation closely in order to be able to quickly
respond to any disturbances.
On 22 January, 2024, Munters announced preliminary results for 2023 as aresult of a ransomware attack at its hosting provider Tietoevry. Muntersfinancial consolidation system and a limited part of our business systems
were affected by the attack. Munters estimates that the event will not havean impact in 2024.
A more detailed description of the Group’s risks and how they are managed
can be found in the Annual- and Sustainability report 2022 on pages 9196.

Transactions with related parties
There have been no significant transactions with related parties during theperiod.

Fair value of financial instruments
Financial assets measured at fair value through profit/loss relate tofinancial investments and derivatives. Financial investments amounted to
MSEK 65 (62) and net derivatives to MSEK -33 (2) as of the balance sheet
date.
The Group’s put/call option, from the acquisition of MTech Systems in 2017,is recognized at fair value in the statement of financial position. The option
is measured according to IFRS 9 and is categorized in level 3 in the fairvalue hierarchy. The exercise period begins on January 1, 2025, and ends on
December 31, 2025. The fair value of the option amounts to MSEK 562 (217)
as of the balance sheet date.
In June, Munters closed the acquisition of a majority share in InoBram.
Munters has acquired 60% of the company but the agreement includes aput/call option for Munters to acquire the remaining 40% of the company
in 2027. The exercise period for the sellers put option begins on 1 January,2026.
The option was recognized at fair value as of the transaction date. The fairvalue of the option amounts to MSEK 37 as of the balance sheet date.
MSEK
Opening balance
Valuation put/call options
Holdbacks
Remeasurements
Discounting
Exchange-rate differences
Closing balance2023-12-31
217
37
37
352
25
-35

2022-12-31
137
−
−
57
−
23

632

217

Munters deems that the interest rate on interest-bearing liabilities is in linewith market terms on December 31, 2023, and the fair value at the end of
the reporting period therefore in all material aspects corresponds to thecarrying amount.

17

Net Sales by business area and region
Net Sales by business area and region in Q4
AirTechMSEK
Americas
EMEA
APAC
Sales between regions
TOTAL

2023
1,059
660
522
-104
2,136

DCT
2022
874
725
584
-170
2,013

FoodTechGroup

Eliminations

2023
816
102
6
0
925

2022
441
57
1
0
500

2023
312
249
101
-46
617

2022
229
226
96
-38
514

DCT
2023
3,104
349
9
-54
3,408

2022
1,110
285
8
-2
1,401

FoodTech
2023
2022
1,209
953
954
1,024
350
399
-151
-165
2,363
2,211

2023
0
-12
-5
-2
-20

2022
-4
-8
-4
0
-16

2023
2,188
999
624
-152
3,659

2022
1,540
1,001
678
-208
3,011

Net Sales by business area and region Jan-Dec

AirTech
2023
2022
3,759
2,859
2,630
2,287
2,357
2,241
-520
-557
8,226
6,830

MSEK
Americas
EMEA
APAC
Sales between regions
TOTAL

Group
2023
2022
8,072
4,914
3,894
3,575
2,699
2,626
-734
-729
13,93010,386

Eliminations
2023
2022
-1
-7
-38
-21
-18
-22
-10
-6
-67
-56

Reconciliation of alternative performance measures and items
affecting comparability
The Group presents certain financial metrics in the Interim Report that are
not defined in accordance with IFRS. The Group is of the opinion that these
metrics provide valuable complementary information, in that they enable
an evaluation of the Group’s performance. The financial metrics arecalculated in accordance with the definitions presented in this interim
report. A reconciliation of Adjusted EBITDA and Adjusted EBITA is found in
the quarterly overview on page 12. Items affecting comparability are eventsor transactions with significant financial effects, which are relevant for theunderstanding of the financial performance when comparing the current

period to previous periods. Items included are for example, restructuring
activities, capital gains and losses from business divestments and M&A
related costs as well as costs for other events, such as the Covid-19
pandemic and war in Ukraine, having a significant impact on thecomparability. In 2022, Munters incurred IACs related to the decision toclose down business activities in Russia of MSEK -27 included in Other
IACs.
Below is a break-down of items affecting comparability by period.

Q4
MSEK
Restructuring activities
M&A activities
Other items affecting comparability
Total

2023
-22
-15
-12
-49

Jan-Dec
2022
1
-10
0
-9

2023
-34
-29
-32
-96

2022
-35
-19
-21
-75

Business combinations
Munters’ strategy to grow its digital solutions for the food and agricultural industry and connects the entire food production value chain.

Consolidated acquisitions in 2023

Company (Country)

Business
area

Month
acquired

Number of
employees

Net sales

Share
(%)

Tobo Component (SE)SIFT (FR)InoBram (BR)ZECO (IN)

AirTechAirTechFoodTech
AirTech

May
Jun
Jun
Oct

14
17
~150
~600

MSEK 76
MEUR 3
MBRL 53
MSEK 510

100
100
60
100

The table shows number of full-time equivalent permanent employees at
the acquisition date. Revenue refers to estimated net sales during thefinancial year prior to the acquisition date.
In May, Munters acquired 100% of Tobo Component, a Swedish
manufacturer of humidification components. The company isheadquartered in Tobo and has been a contract manufacturer of pads,
cassettes, and modules for Munters for several years.
In June, 100% of SIFT, a French service company within climate control
and cold storage, active primarily in the northern France was acquired.
The acquisition strengthens the market share for Munters within Service
and builds a local service presence in strategic areas.
In June, the acquisition of a majority share in InoBram was finalized.
InoBram is a Brazilian manufacturer of controllers and complimentaryaccessories for the broiler and swine segments. With the help of
innovative software, sensors and connected solutions, farmers and foodproducers get the tools they need to improve animal health and increaseenergy efficiency in their operations.

On October 16th, Munters closed the acquisition of ZECO, an Indian
manufacturer of air handling solutions. ZECO will provide Munters with astrong platform to expand its dehumidification offering in the Indian
market.
The table below presents an overview of paid purchase considerations
and the fair value of acquired net assets for the business combinations in
2023. At the balance sheet date the purchase considerations and the fairvalue of acquired net assets are based on preliminary purchase priceallocations.

MSEK

Jan-Dec
2023

Purchase priceCash purchase consideration paid
Holdback & deferred considerations
Put/call option
Total purchase consideration
Fair value of acquired net assets

901
37
37
974
-295

Goodwill

679

Cash flow
Cash purchase consideration paid
Cash and cash equivalents in acquired companies
Change in the Group's cash and cash equivalents

901
156
744

Munters has acquired 60% of InoBram and has an option to acquire theremaining 40% of the company in 2027. The acquisition supports

Interim report October-December 2023

18

Definition of key financial indicators
In this financial report, there are references to several performancemeasures. Some of the measures are defined in IFRS, others are alternative
performance measures and are not disclosed in accordance with applicablefinancial reporting frameworks or other legislations. The performancemeasures are used by the Group to assist both investors and management
in analyzing Munters’ business. Below the performance measures found in
this financial report are described and defined. The reason for the use of
the performance measure is also disclosed.

Organic growth
Change in net sales compared to the previous period, excluding
acquisitions and divestments and currency translation effects. The measureis used by Munters to monitor net sales growth driven by changes involume and price between different periods.

Order backlog
Received and confirmed sales orders not yet delivered and accounted foras net sales. Order Backlog is a useful measure to indicate the efficiency ofthe conversion of received and confirmed sales orders into net sales infuture periods. The measure is used by Munters to monitor businessperformance and customer demand and adjust operations if needed.

Order intake
Received and confirmed sales orders minus cancelled orders during thereporting period. The order intake is an indicator of future revenues and,
consequently, an important KPI for the management of Munters’ business.

Operating profit (EBIT)
Earnings before interest and tax. Munters believes that EBIT shows the
profit generated by the operating activities.

Adjusted EBITA
Operating profit, adjusted for amortizations, write-downs of intangible
assets and items affecting comparability. Munters believes that using
adjusted EBITA is helpful in analyzing our performance as it removes theimpact of items considered not to be of recurring character and therefore
do not reflect our core operating performance.

Capital employed
Capital employed is calculated as the total equity plus interest bearing
liabilities.

Return on capital employed (ROCE)
Average operating profit (EBIT) plus financial income, divided by theaverage capital employed, where capital employed is total equity plus
interest-bearing liabilities. The average capital employed is calculated
based on the last 12 months.

Cash and cash equivalents
Cash and bank balances plus investments in securities and the like withmaturity periods not exceeding three months. This is a measure thathighlights the short-term liquidity.

LTM
LTM (last twelve months) after any key indicator means that the KPI
corresponds to an accumulation of previous twelve month reported
numbers. The measure highlight trends in different KPIs, which is valuable
in order to gain a deeper understanding of the development of thebusiness.

Net debt
Net debt calculated as interest bearing liabilities, lease liabilities, provisions
for pension and accrued financial expenses, reduced by cash and cash
equivalents.

Number of employees
Number of employees is presented recalculated as full-time positions, if
not otherwise stated. Average number of employees for the year is
calculated as the sum of permanent employees at the end of each of thelast 13 months divided by 13.

Operating working capital
Includes accounts receivable, inventory, accrued income, accounts payable
and advances from customers.

Adjusted EBITA margin

Operating working capital/net sales

Adjusted EBITA as a percentage of net sales. Munters believes that
Adjusted EBITA margin is a useful measure for showing the Company’s
profit generated by the operating activities.

Average Operating Working Capital for the last twelve months as apercentage of Net sales for the same period.

Adjusted EBITDA
Operating profit adjusted for items affecting comparability anddepreciations, amortizations and write-downs of tangible and intangible
assets as well as Right-of-Use assets.

Adjusted EBITDA margin
Adjusted EBITDA as a percentage of net sales.

Items affecting comparability (IAC)
Items affecting comparability are events or transactions with significant
financial effects, which are relevant for the understanding of the financial
performance when comparing the current period to previous periods. Items
included are for example, restructuring activities, capital gains and losses
from business divestments and M&A related costs.

Interim report October-December 2023

Earnings per share
Net income divided by the weighted average number of outstanding
shares.

SaaS recurring revenue
Total recurring revenue from SaaS contracts (Software-as-a-Service)recognized in the period. The KPI is also presented annualized and named
SaaS ARR, which is calculated by multiplying SaaS Recurring Revenue inthe last quarter by four.

Equity/assets ratio
Equity (including non-controlling interests) divided by total assets.

Americas
Refers to North-, Central and South America.

19

Information andreporting dates
Welcome to join a webcast or telephone conference on
February 1 at 9:00 AM CET, when President and CEO Klas Forsström
together with the Group Vice President and CFO, Katharina Fischer,will present the report.

Webcasthttps://ir.financialhearings.com/munters-q4-report-2023

Conference call
If you wish to participate via teleconference, please register on thelink below. After registration you will be provided phone numbers
and a conference ID to access the conference. You can ask questions
verbally via the teleconference.
https://conference.financialhearings.com/teleconference/?id=5002
920
This interim report, presentation material and a link to the webcast
will be available on https://www.munters.com/en/investorrelations/Contact information:
Ann-Sofi Jönsson
Vice President, Investor Relations & Enterprise Risk Management
Phone: +46 (0)730 251 005
Email: ann-sofi.jonsson@munters.com
Line Dovärn
Director, Investor Relations
Phone: +46 (0)730 488 444
Email: line.dovarn@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 resultin minor rounding differences.
This information is information that Munters Group AB is obliged tomake public pursuant to the EU Market Abuse Regulation. The
information was submitted for publication, through the agency ofthe contact persons set out above, at 07.30 AM CET on February 1,
2024.
This report 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 reasonableassumptions, no assurance can be given that such expectations prove to have been correct, as
forward-looking statements are subject to both known and unknown risks and uncertainties anda variety of factors that could cause actual results or outcomes to differ materially from thoseexpressed or implied by such forward-looking statements. Such factors include, but are notlimited to, changes in economic, market, competitive and/or regulatory conditions. Forwardlooking statements speak only as of the date they were made and, other than as required byapplicable law, Munters undertakes no obligation to update any of them in light of new
information arising or future events.

Financial calendar:
Release of Annual & Sustainability report2023

Week starting
February 19, 2024

Annual General Meeting, Stockholm

March 21, 2024

First quarter report 2024

April 24, 2024

Capital Markets Day, Stockholm

May 21, 2024

Second quarter report 2024

July 17, 2024

Third quarter report 2024

October 22, 2024

Munters Group AB, Corp. Reg. No. 556819-2321

Interim report October-December 2023

20