Munters' : 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 mainte-nance 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 HruskyLansingAmesbury

Chiusavecchia, Pieve di TecoSelma

Buena Vista Atlanta

Beijing Jiang YinTokyo

Tel AvivMonterreyFort Myers

ChashanQuerétaro

Mumbai (Ambernath)

PuneBlumenau

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 produc-tion 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 manufac-tured in environments with Munters climate solutions.

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.

4

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 infrastruc-ture 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.

Business area AirTech

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.

Business area FoodTech

| MUNTERS | ANNUAL AND SUSTAINABILITY REPORT 2021 |

Defense and aviation industry

In the defense and avia-tion 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.

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.

Power & marine industry

Barns with digital solutionsPharmaceuticals

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

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.

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.

Agriculture

Munters develops and manufactures energy-ef-ficient 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 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.

Quchao,

Group Controller at Munters.

| MUNTERS | ANNUAL AND SUSTAINABILITY REPORT 2021 |

5