Munters (MTRS) Status Update summary

Business Overview and Market Context

• FoodTech represents about 11% of group sales, focusing on digital solutions and controllers for the food industry, driven by megatrends like climate change, resource scarcity, digitalization, and increased regulation.

• The food industry is massive, with SEK 45,000 trillion in value, and digitalization potential estimated at SEK 650 billion by 2034.

• FoodTech's addressable market is SEK 30 billion, with current sales at SEK 1.7 billion and ARR above SEK 300 million, and net sales for FY 2024 at ~1.7 BSEK with ARR growth of 23%.

• The business has a global footprint, with sales in over 80 countries and a workforce of nearly 800 people, including 200 in innovation.

• The food supply chain is vast, with over 200 million chickens and 4 billion eggs consumed daily, yet remains under-digitized, presenting significant opportunities for transformation.

Digitalization, Product Offering, and Technology Leadership

• FoodTech offers advanced digital solutions across the supply chain: software, controllers, IoT, and sensors, targeting integrators and growers to optimize performance and animal welfare.

• Controllers are mission-critical, managing farm climate, energy, water, and animal welfare, with downtime directly impacting animal health and farm output.

• The company is the global leader in controllers, having expanded its portfolio and reach through strategic acquisitions.

• AI is embedded in both internal operations and customer offerings, supporting efficiency, scaling, product innovation, and customer education through initiatives like Munters Academy.

• R&D investment exceeds 10–11% of net sales, with over 200 people dedicated to innovation.

Strategic Development, Priorities, and Growth Initiatives

• Strategic portfolio development included shifting sales from non-core equipment to digital offerings, maintaining SEK 1.7–2 billion in digital sales.

• Organic growth achieved through geographic and product expansion, high innovation, operational efficiency, and AI integration.

• Net sales and ARR have grown at a 40% CAGR, with adjusted EBITDA also exceeding 40% CAGR in recent years.

• Growth strategy focuses on expanding existing segments, entering new markets, developing new products, building a data ecosystem, and maintaining first-mover advantage.

• M&A remains a key part of growth, targeting software, controllers, sensors, service, and new regions or segments, while also enabling industry consolidation and synergy capture.