JanuarySeptember 2002

1
January-September 2002
2
Continued growth Q3 2002
IPO
SEKm
SEKm
500
450
400
Order intake
350
300
250
EBIT
200
Net sales
150
100
50
0
Q4
Q1
Q2
Q3
1995
1996
1997
1998
1999
2000
2001
2002
Excluding Alecta (SPP) surplus refund of SEK 15
million in Q3, 2000.
3
Market development

• Mixed demand in non-cyclical industries
• Europe
• Strong demand for MCS
• Good demand for Dehumidification
• Very weak Gas Turbine business
• Americas
• Low demand for Zeol-products continue
• Difficult comparison (Allison) for MCS
• Very weak Gas Turbine business
• Strong demand in other areas
• Asia
• Strong development in Thailand
• Recession in Japan

4
Dehumidification
38 of Munters 2001
5
Dehumidification

• Positive development in Europe excluding Zeol
• Zeol on very low level
• Test installations for HCU (DryCool)receive
  positive response

6
Moisture Control Services
34 of Munters 2001
7
MCS

• The solid growth in Europe continues
• The floods in Europe gave EUR 2.1 m in Q3
• Acquisition of Svt a leading Fire Damage
  Restoration provider in Germany
• Svt contributes very positively with capacity and
  know-how in connection with the floods
• The integration of Svt proceeds according to plan

8
HumiCool
Utilities
Poultry
28of Munters 2001
Comfort cooling
9
HumiCool

• The Poultry Industry had a rather weak quarter
• Precoolers for Gas turbines on a low level
• Acquisition of Aerotech, no 2 in fans in US
• Global leader in poultry cooling systems
• The integration of Aerotech proceeds according
  to plan

10
Q3 Highlights

• Order growth 25
• Acquisition of Aerotech (HC) and Svt (MCS)
• Currency effect -6 in Q3
• Very tough comparison with last year
• Hurricane Allison
• Semiconductor industry demand
• Strong acquisition effects

11
Q3 hard to beat last year!

• Net sales for MCS-US and Zeol declined SEK 87 m
  Q3 2002. EBIT declined SEK 25 m
• Net sales for ½ Allison and Zeol declined SEK 53
  m Q3 2002. EBIT declined SEK 13 m
• Both MCS-US and Zeol over 10 EBIT-margin in Q3
  2002

12
Currency effects

15
10
5
0
Oct
Jun
Aug
Dec
Feb
April
April
-5
Aug
June
-10
End rates
Average rates
13
July-September 2002

• Order increase 25
• Currency and acquisition adjusted 5
• Net Sales growth 16
• Currency and acquisition adjusted 0
• Adjusted for ½ Allison and Zeol 6
• Operating earnings increase 17
• Operating margin (incl. G-will depreciation)
  10.0
• Acquisition of Svt in MCS and Aerotech in
  HumiCool

14
Munters strategy for growth
Open new geographical markets
Grow the Service business
Global roll-out of existing applications
Direct sales to end users with extended offering
Focus on growing and non cyclical customers
15
Customer segments 2002 Pro forma including
acquisitions
Other 17
Electronic 4
Insurance/MCS 41
Utilities 8
Pharma 3
After sales 6
Food 21
16
Global organization
17
Net sales by Region 12 months rolling
2001
2002
SEK 3 762 m
SEK 4 443 m
Asia 10
Asia 10
Asia 9
Europe 50
Americas 40
Americas 40
Europe 50
Europe 55
Americas 36
17
18
Net sales by Product Area12 months rolling
2002
2001
SEK 3 762 m
SEK 4 443 m
DH 38
HumiCool 28
HumiCool 27
DH 38
MCS 34
MCS 39
18
19
Financial overview by Quarter
SEK m








2001
2002

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Growth

982

1 228

25

Order intake

960

974

1 029

1 144

1 159

Net sales

851

960

1 020

1 063

1 052

1 149

1 179

16

100

118

17

EBIT

72

92

137

86

114

Margin

8.5

9.6

9.8

12.8

8.2

9.9

10.0




59

67

14

Net earnings

41

55

8
5

49

65


72

108

50

Op. cash flow

47

105

245

93
121

(bef.capex tax)




20
Net sales by Region July-September
2001
2002
SEK 1 179 m
SEK 1 020 m
Asia 10
Asia 9
Asia 11
Europe 50
Americas 40
Europe 57
Americas 34
Americas 43
Europe 46
20
21
Net sales by Product AreaJuly-September
2002
2001
SEK 1 020 m
SEK 1 179 m
DH 36
HumiCool 26
HumiCool 27
DH 38
MCS 34
MCS 43
21
22
Regional analysis JulySep
Net sales Growth EBIT margin
Europe 682 43 9.7 Americas 407 -9 13.6 Asia
104 -5 13.1 Total Group 1 179 16 10.0
23
Q3 Negative currency and positive acquisitions
effect
Net sales, July - September 2001 1 020
Currency effect
-65 -6 Net sales acquisitions
224 22 Organic growth
0
0 Net sales, July - September 2002 1 179
16
24
Financial overview Jan-Sept
January-September
Growth
1998
1999
2000
2001
2002
02/01
02/98









SEK m

2 916

3 531

21



Order intake

1 763

1 916

2 459

20

Net sales

1 745

1 863

2 247

2 830

3 380

19

19



265

318

20



EBIT

132

154

192

26

1)
Margin

7.6

8.3

8.6

9.4

9.4






155

181

17



Net earnings

77

93

107

25

1)

225

322

43


Op. cash flow

107

181

160

27

1) Excluding Alecta (SPP) surplus refund in Q3
2000


24
25
Net Debt Development
Net Debt
300
300
200
200
100
100
Liquid Funds
0
0
-112
-100
-100
Short-term Loans
-196
-136
-200
-200
-225
-230
-300
-300
-345
-333
-382
-400
-400
Long-term Loans
-500
-500
-525
-600
-600
-700
-700
Q3-02
Q2-02
Q1-02
Q4-01
Q4-00
Q4-99
Q4-98
Q4-97
Q4-96
26
Regional analysis JanSep
Net sales Growth EBIT margin
Europe 1 917 38 8.5 Americas 1
190 1 13.0 Asia 325 7 11.3 Total Group 3
380 19 9.4
27
Key ratios JanSep

• Return on capital employed1) () 32.8 32.5
• Interest coverage ratio (times) 15.7 17.9
• Net debt (SEK m) 322 525
• Net debt/Equity ratio 0.36 0.51
• Earnings per share (SEK) 6.19 7.24

2001
2002
1) Rolling 12 months
28
Negative currency and positive acquisitions
effect
Net sales, Jan - September 2001 2 830
Currency effect
-50 -2 Net sales acquisitions
483 17 Organic growth
117
4 Net sales, Jan - September 2002 3 380
19
29
Financial overview Rolling 12 months
October - September
SEK m





Growth
99/00
00/01
01/02
98/99
21
Order intake

2 538

3 151

3 779

4 560

18
4 443

Net sales

2 519

2 978

3 762

20
454

EBIT

227

275

379

1)
Margin

9.0

9.3

10.1

10.2



20
266

Net earnings

141

154

221

1)





1) Excluding Alecta (SPP) surplus refund in Q3
2000


29
30
Order intake
SEK m
1,300
25
1994
19
1,200
19
1995
1996
1,100
1997
19
25
1998
1,000
1999
900
2000
2001
800
2002
700
600
500
400
300
200
100
0
Q1
Q2
Q3
Q4
30
31
Net sales
SEK m
16
1,200
20
1994
14
1,100
24
1995
28
1996
1,000
1997
900
1998
800
1999
2000
700
2001
600
2002
500
400
300
200
100
0
Q1
Q2
Q3
Q4
31
32
Backlog
SEK m
750
10
1994
700
5
-2
1995
650
1996
16
600
1997
1998
550
1999
500
2000
450
2001
400
2002
350
300
250
200
150
100
50
0
Q1
Q2
Q3
Q4
32
33
EBIT
SEK m
20
140
1994
130
1995
17
120
24
1996
110
1997
31
100
1998
1999
90
19
2000
80
2001
70
2002
60
50
40
30
20
10
0
Q1
Q2
Q3
Q4
33
34
Acquisitions
1)

• Company Munters Time Sales
• Robart MCS-EU 98 5
• Euroemme HC-EU 99 160
• Nichimen DH-AS 99 10
• Buildry MCS-EU 00 5
• Mullins MCS-AS 01 35
• Sundsvalls Totalsanering MCS-EU 01 13
• MRenov MCS-EU 01 13
• ABB/SCR HC-EU 01 10
• Glacier-Cor HC-AM 02-01 50
• Polygon MCS-EU 02-01 450
• Alfa Service Senter MCS-EU 02-05 30
• Svt MCS-EU 02-07 180
• Aerotech HC-US 02-07 180
• Polygon Kristiansand MCS-EU 02-09 5

1) In SEK millions
35
The Humidity Expert