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.

• The business operates in over 80 countries, with a diverse workforce and a strong focus on innovation and digital transformation.

• 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.

Strategic development and growth

• Strategic portfolio development and acquisitions have shifted the business from equipment to digital solutions, maintaining SEK 1.7–2 billion in sales.

• Organic expansion includes broadening market exposure and product innovation, with high new sales ratios and operational efficiency gains.

• 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, and establishing a data ecosystem.

• M&A remains a key part of growth, targeting software, controllers, sensors, service, and new regions or segments.

Product offering and technology

• Digital solutions span software, controllers, IoT, and sensors, optimizing the entire food supply chain and enabling real-time data collection from farms.

• Controllers are mission critical, managing climate, energy, water, and access in farms, with downtime directly impacting animal welfare and productivity.

• The controller portfolio is the largest globally, strengthened by recent acquisitions and deep application knowledge.

• AI is integrated into both internal operations and customer offerings, enhancing efficiency, scaling, and product capabilities.

• FoodTech has achieved ~1.7 BSEK in net sales for FY 2024, with ARR growth of 23% and a global footprint in over 80 countries.