Munters : Q1 presentation 2024_1

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*	Order backlog
MSEK								15 000
6 000								11 812
								10 000
4 000								3 368
2 000								5 000
0								0
Q1	Q2	Q3	Q4	Q1	Q2	Q3	Q4	Q1
2022				2023				2024

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

• strong in all business areas
• AT good demand, esp. battery EMEA
• DCT solid development in Americas
• FT positive, mainly Americas & EMEA

Q1: Order backlog, +10%

• mainly large orders in DCT & AT, to be delivered throughout 2025

… drives stable net sales and...

MSEK			Net Sales
6 000
4 000		3,538

2 000

0

Q1	Q2	Q3	Q4	Q1	Q2	Q3	Q4	Q1
2022				2023				2024

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

• DCT - good delivieries
• FT - Climate solutions Americas strong, and very strong Digital solutions US
• AT - decreased. Growth mainly in Americas, offset by weaker APAC & EMEA

Book-to-bill Q1: 0.95

… enhanced profitability

MSEK		Adj. EBITA		Adj. EBITA margin
600									16%
								14.1
									14%
400									12%
								498	10%
200									8%
									6%
0									4%
Q1	Q2	Q3	Q4	Q1	Q2	Q3	Q4	Q1
2022				2023				2024

Adj. EBITA-margin, Q1 14.1%

• solid growth, net price increases and strong operational delivery

• accelerated investments to create a platform for long-term sustainable growth in all business areas

• resulting in margin improvements and good cashflow

2 AT = business area AirTech, DCT = Data Center Technologies, FT = FoodTech, BA = business areas *Large orders announced through press releases

Americas and EMEA main growth drivers

Regional share Q1

Order intake	Net sales	Order intake	Net sales	Order intake	Net sales
			21%	17%	14%
42%		41%
	65%

Americas - order intake

• AirTech- Components & Service good growth. Battery weaker, shift in order pattern as orders placed closer to delivery
• DCT- very strong underlying demand both from co-locators & hyperscalers
• FoodTech- good growth in CS in Americas primarily broiler and layer. DS strong growth

EMEA - order intake

• AirTech- good development especially in the battery, also Service and Components showed good growth
• DCT- good activity with steady growth
• FoodTech- good recovery in all segments, especially broiler & greenhouse

APAC- order intake

• AirTech- weaker development, mainly due to the weaker battery market in China
• FoodTech- continued slight recovery

All figures as reported, not currency adjusted.

3 OI: Order intake, NS: Net sales

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

Solid order backlog - large orders supportive into 2025

2022		2023		2024		2025

MUSD 115

US colocator

SyCool Split solutions

MUSD 65

US car manufacturer

Climate control systems

MUSD 63

US colocator

Standard chilled water (CRAHs)

MUSD 176

US colocator

SyCool Split solutions

MUSD 54

Multinational car manufacturer 2 climate control system orders

MUSD 88

US colocator

Standard chilled water (CRAHs)

MUSD 137

US colocator

SyCool Split solutions

MUSD 65

US colocator

Standard chilled water (CRAHs)

4		Order received
		Expected delivery period

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 very strong, whereas cont. weak in APAC & Americas
• Commercial - good growth in Americas & APAC (acq. Zeco)
• CT1- declined, due to strong comparable Q1 2023
• Components - Americas & EMEA good growth, APAC weaker due to lower component replacements in the Chinese battery market
• Service - growth mainly Americas but also EMEA, offset by APAC

Order Backlog slight decrease

MSEK

4 000

3,688

2 000

2,255

0

Q122

Q222

Q322

Q422

Q123

Q223

Q323

Q423

Q124

Order Intake

Order Backlog

5

1 Clean Technologies

> 5 % ~ 1-5 % ± 0 -1% neg

	% order intake	Market
Customer segment	Q1 2024	Outlook *
Industrial	60%
…whereof battery	27%
…whereof food processing	7%
…whereof commercial	9%
…whereof other	18%
Clean Technologies	5%
Service & components	35%
…whereof service	19%
…whereof components**	16%

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

AirTech

Lower volumes & investments affecting margin

Net Sales decreased, growth in Americas				Q1		Q1		Change (%)
offset by weak APAC & EMEA;				2024	2023		Org.	Struct*	FX
				MSEK
•	Battery - strong growth Americas, weaker APAC & EMEA		Order intake		2,255	1,686		29	7	-3
• CT- stable APAC, weaker Americas & EMEA		Order backlog	3,688	4,341
• Components - stable Americas & EMEA, weaker APAC
	Net sales		1,996	2,023		-7	7	-2
• Service - good growth, primarily Americas
	Adj. EBITA		296		323
						-12	6	-2
Adj. EBITA margin decreased;		Adj. EBITA (%)	14.9	16.0
-	lower volumes		2 500
- increased investments in sustainability, operational efficiency &		2 000								16%
	innovation	MSEK	1 500								12%	marginEBITA
+ cont. efficiency improvements, slightly offset by lower
									8%
	production utilization rate in EMEA & APAC		1 000
.			500								4%	Adj.
			0								0%
			Q122	Q222	Q322	Q422	Q123	Q223	Q323	Q423	Q124

Net sales		LTM Adj. EBITA-margin	Adj. EBITA-margin

* Acquisitions & divestments

6

Solid development in several segments

MSEK	Order intake per segment

1. 000
   2 500

1. 000
   1 500

1. 000
   500
   0

Q1 2022

Q2

2022

Q3 2022

Q4 2022

Q1 2023

Q2 2023

Q3 2023

Q4 2023

Q1 2024

Service

Components

Commercial

Other Industrial

CT

Battery

Announced orders*

Net Sales

7	*Large orders announced through press releases

AirTech

• Variations in large orders i.e., batteries
• Other industrial good growth
• CT steady development
• Commercial increase through Zeco acquisition
• Service & Components stable and growing

Enhancing our Clean Technology portfolio

AirTech

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 our customers, 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

8

Increased demand & strengthened order backlog

Data Center Technologies

Order Intake increased;

• mainly co-locator segment, Americas
• underlying demand remains very strong

Order Backlog increased;

• majority attributable to large orders to be delivered throughout 2025

8 000

7,003

MSEK

6 000

4 000

2 000

0

343

Q122

Q222

Q322

Q422

Q123

Q223

Q323

Q423

Q124

Order Intake

Order Backlog

9

	> 5 %	~ 1-5 %	± 0 -1%	neg
Customer	Order Intake		Market
segment	Q1 2024	Outlook *

Hyperscaler0%

Co-locator99%

Telco &	1%
enterprise

• Hyperscalers - increased activity both for own facilities & colocation leasing. AI driving significant growth, increased need for server space & higher density cooling requirements
• Colocation - continued strong demand due to increased build outs and investments, driven by increased leasing demand from hyperscalers
• Telco & enterprises - moving away from own facilities, market growth but lower pace

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

Data Center Technologies

Significant profitability increase

Net Sales strong increase;

• good deliveries on large projects, proceeding according to plan
• EMEA good development

Adj. EBITA margin significant increase;

MSEK

Order intake

Order backlog

Net sales

Adj. EBITA

Adj. EBITA (%)

Q1	Q1 2023
2024

343 293

7,003 5,564

956 653

181 82

19.0 12.6

Change (%)

Org.	Struct*	FX
17	0	0
47	0	-1
122	0	-1

• strong volume growth
• net price increases
• high utilization rate in production
• operational efficiency improvements

• investments in competence and resources expected to increase to capture growth

	1000								20%
	750								16%	margin
									12%
MSEK									Adj. EBITA
500
								8%
	250								4%
	0								0%
	Q122	Q222	Q322	Q422	Q123	Q223	Q323	Q423	Q124

Net sales		LTM Adj. EBITA-margin	Adj. EBITA-margin

* Acquisitions & divestments

10