MUNTERS : ANNUAL AND SUSTAINABILITY REPORT 2021

ANNUAL AND SUSTAINABILITY REPORT

2021

CONTENTS
INTRODUCTION
Munters in brief	2
Munters' customers	4
Events 2021	6
Comments from the CEO	8
Sustainable value creation targets	10
Megatrends	12
STRATEGY
Munters' offering	14
Strategic priorities	16
■	Markets	18
■	Customers	20
■	Innovation	22
■ Excellence in everything we do	24
■	People	26
OPERATIONS
Business area AirTech	30
Business area FoodTech	36
SUSTAINABILITY REPORT
Munters and the Sustainable Development Goals	40
Sustainability Report	44
EU taxonomy report	50
CORPORATE GOVERNANCE
Risks and risk management	54
Comments from the Chairman of the Board	60
Corporate Governance Report	62
Board of Directors	70
Group Management	72
FINANCIAL STATEMENTS
Board of Directors' Report	74
Financial statements	80
Notes	89
Auditor's report	124
Definitions	129
OTHER
Auditor's report on the statutory sustainability statement	130
Auditor's report on the corporate governance statement	131
The share	132
Financial calendar & Annual General Meeting 2022	134
Munters' journey	135
Munters employees around the world	136

The audited annual report for Munters Group AB (publ), corp. reg. no. 556819-2321, refers to pages 74-124.

Munters has prepared the sustainability report in accordance with disclosure requirements set out in the Swedish Annual Accounts Act chapter 6 paragraph 11. This report is also Munters Communication on Progress (CoP) report in accordance with the Global Compact. The report is presented on pages 10, 11, 18-27 and 40-58.

Every care has been taken in the translation of this annual and sustainability report. In the event of discrepancies, the Swedish original will supersede the English translation.

Cover: Munters' products are installed in critical infrastructure such as bridges and water treatment plants. Inside the Öresund Bridge, and for sensitive parts and equipment, Munters dehumidifiers prevent condensation and corrosion, by keeping the humidity between 45-50% RH. It significantly extends the life of the bridge and reduces ongoing maintenance needs.

Sales in number

of countries

>30

Sales,

MSEK

7,348

Number of

production plants

17

Number of employees

3,350

Proportion of women in

management, %

23

INTRODUCTION | MUNTERS IN BRIEF

World leader

in energy-efficient climate solutions

Munters has played a role in shaping the industry for climate solutions since the company was founded in 1955. Curiosity and an ambition to create pioneering technologies are a part of our DNA. Our climate solutions are mission-critical to our customers' success and contribute to a more sustainable planet.

				Tobo
				Kista
			Horstmar
			Hamburg	Hrusky
	Lansing	Amesbury	Chiusavecchia, Pieve di Teco	Beijing
				Tokyo
	Selma Buena Vista				Jiang Yin
			Tel Aviv
Monterrey	Atlanta				Chashan
Fort Myers
Querétaro				Mumbai (Ambernath)
				Pune

Blumenau

Araucaria

Johannesburg

For more information about our production and assembly units, see page 136.

INTRODUCTION | MUNTERS' CUSTOMERS

We make our customers

more sustainable

Munters offers innovative, efficient and sustainable solutions for customers in many

different industries where controlling indoor humidity, temperature and energy efficiency is mission-critical. Our solutions reduce customers' climate and environmental impact through efficient resource consumption. In this way our solutions contribute to better climate, higher efficiency and reduced carbon emissions.

Battery production

Lithium battery production requires a highly controlled environment with stable temperature and ultra dry air in order to guarantee the final product's safety and quality. A large share of the world's lithium batteries for the auto industry is manufactured in environments with Munters climate solutions.

Retail

Retail and grocery stores can achieve lower operating costs with Munters' efficient, high-performance climate systems. Our climate systems ensure that a store's heating and ventilation system and its refrigerators and freezers are working efficiently.

Infrastructure

Facilities and infrastructure such as bridges, water treatment plants and wind turbines need proper dehumidification. Munters' climate systems ensure low humidity

in the designs of these structures which extends their service life.

Electronics

Our solutions create an optimal environment for customers in the electronics industry. Manufacturers of monitors, components and LEDs get a better air environment for their sensitive processes, reduce energy costs and lower carbon emissions.

Defense and aviation industry

In the defense and aviation industry dehumidifi- cation is critical to protect sensitive equipment, electronic systems and components. Climate control in hangars and storage areas increases service life of vehicles and material as well

as reduces building maintenance.

Power & marine industry

Munters' mist eliminators remove up to 95 percent of the harmful sulfur from flue gases emitted by the power industry and ships. Engines and ventilation systems on ships also have to be protected, so we offer modern air intake systems that stop rain, snow, sea salt and harmful particles.

Data centers

Digitization and global data traffic are growing and more data centers are being built around the world. Advanced climate cooling solutions are critical to low energy consumption as well as reliability and help to reduce carbon emissions.

Business area AirTech

Business area FoodTech

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Pharmaceuticals

Munters offers customized dehumidification solutions for the pharmaceutical industry. Careful control and monitoring keep humidity constant, so medicines in the form of tablets, capsules, granules and powders maintain their quality and shelf life.

Barns with digital solutions

For large restaurant chains, for example, a controlled production chain is important. Through our AI solutions, large parts of the production process can be controlled, which helps improve animal health as well as reduce waste and thereby increase profitability.

Agriculture

Munters develops and manufactures energy-efficient climate control systems for sustainable farming. We optimize the indoor climate for poultry farming, egg production, pork farming and milk farms, thereby helping to improve animal health and meet strict quality and food safety

Greenhouses

By offering them the perfect indoor climate for cultivating plants, growers can produce under optimal conditions. Our innovative product range includes control equipment, ventilation, evaporative cooling and heating.

Quchao,

Group Controller at Munters.

requirements.

Food & Beverages

Our solutions control climate conditions the whole way from farm to table, ensuring hygiene and optimal product quality at the same time that they conserve energy and increase productivity.

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