Interim Report Q1 2001

INTERIM REPORT January - March 2001 2001 2000 Jan - Mar Jan - Mar Change Order intake, SEK M 960 791 + 21 % Net sales, SEK M 851 707 + 20 % Operating earnings, SEK M 72 51 + 41 % - as a percentage of net sales 8,5 7,3 - Earnings before taxes, SEK M 67 48 + 39 % - as a percentage of net sales 7,9 6,8 - Earnings per share, SEK 1.62 1.17 +38 % · Strong start of the year in all regions · Start-ups and acquisitions render increased growth in Asia · Operating earnings increased by 41 per cent to SEK 72M · Earnings per share increased by 38 per cent to SEK 1.62 · MUNTERS' OPERATIONS Munters is the world leader in moisture control with products and services for dehumidification, humidification and air cooling. Munters' business objective is to be a global, applications and service- oriented niche company within the air treatment market, with its core business in dehumidification and humidification. Operations are divided into three geographic regions - Europe, the Americas and Asia. In each region, operations are subdivided into the product areas: Dehumidification, Moisture Control Services (MCS) and HumiCool. Manufacturing and sales are carried out via the Group's own companies in more than 25 countries. The Group had 2,419 employees at the end of the quarter. MARKET DEVELOPMENT The market in Europe continued to develop positively, especially within the HumiCool and MCS operations. Despite the overall negative economic environment in the US, the markets showed continued high growth within the product areas of Dehumidification, especially for industrial applications, and MCS. The market in Asia has improved and demand increased in Japan, Australia and South-East Asia. GROUP ORDER INTAKE, NET SALES, AND EARNINGS In the first three months, order intake increased by 21 per cent to SEK 960M (791) and the backlog rose by SEK 134M to SEK 644M. Net sales of the Munters Group rose by 20 per cent to SEK 851M (707). Adjusted for currency fluctuations the increase was 12 per cent. Distributed by region net sales increased by 11 per cent in Europe, 27 per cent in the Americas and 50 per cent in Asia. Consolidated operating earnings amounted to SEK 72M (51), an increase of 41 per cent. Operating earnings were affected positively by exchange rate fluctuations, by just under SEK 5M. Consolidated earnings before taxes increased by 39 per cent to SEK 67M (48). Net earnings for the period improved by 38 per cent to SEK 41M (29) after an effective tax rate of slightly more than 39 per cent (39). Earnings per share increased to SEK 1.62 (1.17). Sales increased due to the launch of new products and improved added value in completed deliveries. The earnings improvement is due to increased net sales, a favourable product mix and implemented rationalisation. FINANCIAL POSITION The equity ratio improved during the first quarter of the year and amounted to 42.6 per cent (39.5) on 31 March. Liquid funds were SEK 98M (127) and interest-bearing liabilities (including PRI pensions) were SEK 414M (385). During the year, the net debt reduced by SEK 17M and amounted to SEK 316M at the quarter end. The Group has unutilised loan facilities of approximately SEK 210M. INVESTMENTS The Group's capital expenditure amounted to SEK 31M (33). The majority refers to investment in MCS, production and IT equipment. PERSONNEL At the end of the reporting period, the number of staff was 2,419, an increase of 45 during the period. REGIONS EUROPE During the quarter, order intake in Europe increased by 16 per cent to SEK 485M (419). Net sales rose by 11 per cent to SEK 435M (392). Adjusted for currency fluctuations, the increase was 7 per cent. Operating earnings amounted to SEK 33M (28). Product area Dehumidification reported a weak start of the year relating to order intake and sales. Operating earnings increased compared with the same period in the previous year thanks to the effects of the action programme which was started during the third quarter of 2000. Product area MCS enjoyed strong growth. Both order intake and sales increased compared with the corresponding period in the previous year.Operating earnings improved significantly compared with the previous year as a result of implemented activities. Product area HumiCool reported a continued strong order intake whereas sales increased marginally. Growth in order intake relates mainly to orders for cooling of intake air to gas turbines, equipment for cooling poultry houses and greenhouses, and components for mist elimination. AMERICAS During the quarter, order intake in the Americas rose by 22 per cent to SEK 377M (309). Net sales increased by 27 per cent to SEK 331M (261) during the reporting period. Adjusted for currency fluctuations, the increase was 12 per cent. Operating earnings amounted to SEK 32M (25) during the period. Earnings for the quarter were positively affected by a favourable product mix and by the rationalisation which was implemented within the MCS operation during 2000. Product area Dehumidification reported increased order intake, sales and earnings. Order intake for dehumidification units for industrial applications and treatment of discharges of solvents into air, so-called Zeol applications, enjoyed continued strong growth. Product area MCS - through its investment within the industrial segment and high demand within the water damage restoration segment - reported continued strong growth and earnings significantly in excess of the previous year's level. Product area HumiCool reported a low growth rate, mainly due to a slow- down in the market relating to equipment for cooling poultry houses. Operating earnings are slightly lower than during the corresponding period in the previous year. ASIA Munters' operations in Asia showed a positive trend relating to order intake, net sales and earnings. During the quarter, order intake rose by 41 per cent to SEK 115M (82). Sales increased by 50 per cent to SEK 100M (67). Adjusted for currency fluctuations, this was an increase of 46 per cent. Operating earnings increased to SEK 13M (6). Earnings increased in all of the product areas. Through the acquisition of Mullins Restoration in Australia at 4 January 2001, the MCS operation in the region has been strengthened. China and Australia continued the positive trend of the previous year. During the quarter, the dehumidification operation in Japan expanded, with several industrial orders. The establishment of HumiCool production in Thailand and the start-up of the sales office in Korea during 2000 contributed to the sales growth. FUTURE INFORMATION DATES 10 August 2001 - Interim Report January-June 26 October 2001 - Interim Report January- September February 2002 - Year-end Report 2001 April 2002 - Annual General Meeting and Interim Report January-March 2002 Stockholm, 25 April 2001 Lennart Evrell President For further information, please contact: Lennart Evrell, CEO, Tel: +46 8-626 63 03 E-mail: Bernt Ingman, CFO Tel: +46 8-626 63 06 E-mail: Munters AB (publ) Box 430 SE-191 24 SOLLENTUNA Tel: +46 8-626 63 00 Fax: +46 8-754 68 96 Web site on the Internet: This Report has not been the subject of special examination by the company's auditors. ------------------------------------------------------------ This information was brought to you by BIT The following files are available for download: The full report The full report

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Munters sells products and services for controlling humidity of the air.