Annual report 2008 - Munters

APpROVED
INDoOR CLIMATE
bY MUNTeRS INDoOR
CLImATE b
MUNTe
MUNTERS ANNUAL REPORT
2008

Contents
Group overview 1
CEO’s statement 2
Strategic focus 4
Business focus 7
Personnel 12
Dehumidification division 14
HumiCool division 20
Moisture Control Services (MCS) division 26
Y
rS
Risks and risk management 32
The share and shareholders 34
Corporate governance report 36
Board of Directors and Auditors 40
Board of Directors’ report 42
10-year review 46
12-quarter review 48
Income statement 50
Cash-flow statement 51
Balance sheet 52
Statement of the Group’s recognized
income and expenses
54
Parent Company accounts 55
Accounting principles and notes 57
Proposed distribution of earnings 82
Auditor’s report 83
Management 84
Definitions of financial key figures
and glossary
85
The Board of Directors’ report compises pages 42–45 and
page 82.
Financial information
Annual General Meeting April 15
Interim report January – March April 23
Interim report January – June July 22
Interim report January – September October 28
Year-end report 2009 February 9, 2010
Annual Report 2009 March 2010
Interim report January – March April 22, 2010
Interim report January – June July 22, 2010
Munters’ annual report in Swedish and English is only
sent to shareholders and other stakeholders who specifically
request it.
Cover photo: Even in extreme climates, people must
provide for their families. Buildings for schools, hospitals,
markets and recreation are also needed in these locations.
Munters is a leading supplier of energy-efficient air
treatment solutions that creates an optimal indoor climate
in buildings and for industrial processes, regardless of the
outdoor climate.

Munters 2008
The year in brief
• Order intake amounted to SEK 6,515 M (6,407), an
increase of 2 percent.
• Net sales amounted to SEK 6,570 M, an increase
of 5 percent.
• Net earnings declined to SEK 165 M (336).
• Earnings per share amounted to SEK 2.21 (4.49).
• The Board of Directors’ propose that no dividend
be paid for 2008.
Earnings trend (rolling four-quarter figures)
SEK M
8,000
SEK M
800
7,000
700
6,000
600
5,000
500
4,000
400
3,000
300
2,000
200
1,000
100
0
Q4
98
Q4
99
Q4
00
Q4
01
Q4
02
Q4
03
Q4
04
Q4
05
Q4
06
Q4
07
Q4
08
0
Order intake Net sales Operating earnings
Key data
Adjusted
2008 2007 Change, % change, % 1
Order intake, SEK M 6,515 6,407 2 0
Net sales, SEK M 6,570 6,262 5 3
EBIT, SEK M 362 566 –36
EBIT margin, % 5.5 9.0
Earnings after financial items, SEK M 285 526 –46
Net earnings, SEK M 165 336 –51
Net margin, % 2.5 5.4
Earnings per share, SEK 2.21 4.49
Operating cash flow, SEK M 177 189 –6
Return on equity, % 13.8 25.7
Return on capital employed, % 13.6 24.8
Return on operating capital, % 18.5 31.8
Capital turnover rate, multiple 2.4 2.7
Net debt, SEK M 1,390 1,068
Equity ratio, % 28 31
Number of permanent employees
at year-end 4,132 4,043 2
1
Adjusted for exchange-rate changes, acquisitions and divestments.

Munters in brief
Two product divisions focused on industrial-process air
treatment, comfort-oriented climate control and climate
control for the AgHort industry. A global service division with
world-leading positions in damage restorations and temporary
climate control.
Manufacturing, sales and service are conducted with
slightly more than 4,100 employees in more than 30 countries.
The Munters’ share has been listed on the NASDAQ OMX
Stockholm Exchange in the Mid-Cap segment since 1997.
Only major units. Service depots and smaller
sales offices not shown.
Dehumidification
Products and complete solutions for controlling humidity. Customer
manufacturing processes and warehousing are made more efficient. Product
quality, shelf life and hygiene are improved. Dehumidification in combination
with cooling creates an ideal indoor climate.
Dehumidification division’s share of:
31% 50%
Net sales
Operating earnings
HumiCool
Products and systems for evaporative cooling and humidification. Cooling
systems for the poultry and horticulture industries. Technique and products
for mist elimination, e.g. for treatment of flue gases.
HumiCool division’s share of:
26% 38%
Net sales
Operating earnings
Moisture Control Services (MCS)
Services for water and fire damage restoration and temporary climate control.
A complete service offering for the insurance industry that lowers costs
through drying and renovating rather than rebuilding.
MCS division’s share of:
43% 12%
Net sales
Operating earnings

Group overview
1
Rubrik
Energy-efficient technologies
and customized solutions
Ingress Em velendit Munters’ doloreet, vision suscilla is feuguer to be a leading cidunt autem global zzriure supplier conulpute of energyefficient
ex solutions eu feu feum for air do treatment od diam veliquat and damage auguera restoration estrud endrerat, conum zzrit
consectet, quis ad
moluptatuer susciduismod
utpatummy niat accum based diam on quis its expertise am il dolessent in technologies nullandipit for alit humidity luptat, quisit and aci tio odolendrem iurero
do del dion vel ut at. climate Ut autetum control. sandigna facilis do core faccum zzrilisl dolobore vero consendre
conumsan ex exerat. Ut el illutat alit wisi.
Strategic focus
From a strong base in humidity control, the business concept is gradually
expanded to adjacent areas. In this process, Munters continues to focus on
customer application-driven, energy-efficient, high-quality product solutions
and services that are closely related to Munters’ traditional area of expertise.
By broadening the product and service portfolio and through forward integration,
Munters is taking a larger part of the value chain in selected niches while
increasing its market potential.
An important part of strategy work is to further strengthen the company’s
position to leverage the following global trends:
• Increased demand for energy-efficient and environmentally friendly solutions
• Increased demands on indoor climate
• Consolidations and quality requirements within food production and distribution
• Consolidation within the insurance industry
• Economic expansion in Asia.
Munters’ strategic initiatives to achieve its overall goals can be summarized
in the following illustration.
Focus on gross margin
Leveraging global
market trends
Strengthened presence
in Asia
Complimentary acquisitions
Visste du att
Profitable
growth
More efficient product development – global platforms
Uptat, con vel ulputat
Pute min velenismodo eraessi enit dolesto etum ilisisi
eum verit loreet praessit wissi blam, vulput augait
lorem Expansion ipis do from esequamet, selected quatum zzril elenim velesting
erostisim nosto niches odignis exero corer sustisl utat.
Dolesequam, velessisit erostisl ut vulputat. Dui eu
faciliquat, quat. Uptatum zzril eui eu feugue facing enim
diamet wisim acidunt lutate dit lortisl ullum etuer atet,
si tis exer sendigna facidunt vel ut lorerciduisi bla am,
consenim iniation ullam, consequisi.
Nos euipit loreet adionsent prat aci tie et iurem ilit
wis dolor susto dolore dolore consed tat. Tum iustismolor
augiamet in vel irit autpat accummy nis dolor
sit eugait alit, vullum zzriuscidunt num nim in ulla alit
velismodolut in henismo diation smodolut.
Munters Annual Report 2008

2
CEO’s statement
Positive effects from strategic initiatives
when markets recover
Munters’ development during 2008 was characterized by a relatively strong first half of the year, which
was followed by a significantly tougher business climate as a result of the general economic recession
and the current financial crisis. The MEP 2 action program to increase efficiency in all divisions had
already been announced at the beginning of the year. During the second half of the year, we took
additional actions to adapt the organization to the prevailing market conditions. These measures are
expected to improve our structure and competitiveness and to have positive effects on profitability
when market conditions become more favorable.
Our three divisions were affected to varying degrees by the
recession and difficulties within several customer segments
in obtaining financing. Historically, Munters’ business has
not been strongly linked to general economic cycles. However,
the financial crisis has resulted in several businesses that
are not normally sensitive to economic cycles experiencing
weaker sales due to difficulties among customers in obtaining
financing. The products that we sell through distributors were
particularly affected by cautiousness on the part of distributors
in investing in inventories.
MCS, our service division, experienced favorable growth during
the year. Assignments related to the hurricanes Ike and Gustav
contributed to a strong year for the division in the US. The
trend for insurance companies to sign more framework agreements
with the major restoration companies continued. This
has proven very favorable for MCS, and the division won several
new contracts during the year. In addition to investments
linked to the MEP 2 efficiency program, MCS incurred substantial
non-recurring costs related to structural changes. These
costs included preparations for phasing out certain operations.
Development in the divisions
The Dehumidification division experienced stable growth during
the preceding year and only noted some weakening in the
European market for industrial systems toward the end of the
year. In the US, sales in the Commercial segment developed
very favorably as a result of the new, more energy-efficient
products deriving from the 2007 acquisition of Des Champs
Technologies. Within the Industrial segment, demand was
favorable during most of the year, with strong sales to the two
most important customer groups, the pharmaceuticals and
the food industries. A contract was signed during the year
with a large, global pharmaceutical company, which gave us
the assignment to review all installations of dehumidification
systems in the company’s global production structure and to
upgrade them with the latest technology to save energy.
The HumiCool division was most severely affected by the
business climate. The largest business area, AgHort, which
sells climate systems to breeding houses and greenhouses,
experienced an unexpectedly sharp decline during the fourth
quarter as a result of insufficient financing options among
end-customers. Also within HVAC, where a large proportion
of sales comprise mobile heaters, the decline as a result of the
financial crisis was substantial. Demand from many small
customers collapsed, and distributors became very cautious
in inventory management. Not least within mist elimination,
order bookings from coal-fired power plants were weak
throughout the year. In the important US market, this was
primarily a result of opportunities for trading in sulfur emission
rights across state lines being eliminated. The investment
calculations for coal-fired power plants wanting to invest in
better cleaning technology were thus weakened.
Strategic initiatives during the year
MEP 2 strengthens our efficiency and profitability
At the beginning of 2008, an efficiency improvement program
designated MEP 2 was launched. The program was
intended to increase the efficiency of the production structure
in our manufacturing divisions through more rational production.
Part of the program consisted of transferring a larger
share of refinement processes to low-cost countries. During
the year, HumiCool transferred production of smaller mobile
heaters from Italy to China and corrugation machines from
Sweden to Mexico. The substantial volume decline within
HumiCool resulted in the division reducing personnel by
slightly more than 220 persons during the last three quarters
of the year. This corresponded to about 19 percent of the total
number of employees in the division.
Within MCS, there was a strong focus on the launch of
our mobile IT system Field.Link in our five most important
markets. Field.Link demonstrated its improvement potential
in the UK and is now being rolled out globally. This
will result in a significant improvement in field work, while
allowing administration to be centralized, thus increasing
quality and lowering costs. This prepares MCS to increase
return on capital employed through increased efficiency, a
more favorable cost structure and more efficient processes for
handling accounts receivable. The system also allows work
to be documented in a better manner while making relevant
information more accessible for the insurance companies.
Considerable work was also devoted to processes for
handling accounts receivable, which have been a recurrent
problem for MCS is some markets. Costs associated with
this work were to considerable sums. However, we have now

CEO’s statement
3
“Although the coming period is characterized by considerable
uncertainty, I am convinced that the organization will
emerge strengthened from the prevailing recession. From
this perspective, I view Munters’ future with optimism.”
implemented sharply improved global routines that will
prevent a reoccurrence of the corresponding costs. The MEP 2
program was concluded according to plan at the end of 2008.
Munters leads development in energy-efficient air treatment
Des Champs Technologies, which was acquired in 2007, is
now fully integrated in the Munters organization. We have
also strengthened and enhanced our expertise in research and
development. As a result of this combination, we introduced a
new generation of products at the beginning of 2008 under the
name DryCool. These products, which combine Des Champs’
expertise in heat-exchange technology with Munters’ expertise
in energy-efficient cooling and dehumidification, significantly
strengthened Munters’ position as the leading player in energyefficient
air treatment. The patented DryCool products were
very well received in the US market and resulted in rapid sales
growth in the commercial sector, primarily to completely new
customers. As the next step in our strategy, we acquired Toussaint
Nyssenne in Belgium during the fourth quarter. Toussaint
Nyssenne, now called Munters Belgium, will be our base
for manufacturing and introducing DryCool, as well as our
successful DesiCool products, in Europe.
Priorities for 2009
The prevailing market conditions mean that our divisions
are continuing to adapt their respective resources to current
business volumes through efficiency-enhancing measures
and personnel reductions. During the first quarter, we took
measures to improve the production structure, to increase
administrative efficiency and to reduce costs at all levels.
Furthermore, we will phase out certain operations within
MCS in which our new business model will not result in the
improvements required to achieve sustainable and favorable
profitability. These measures include personnel reductions
of about 250 persons for the Group and are estimated to cost
between SEK 30 and 45 million. After full implementation,
the result will be cost reductions of about SEK 75 million per
year, excluding discontinued operations.
Within MCS, Field.Link was launched in the first five
markets during the fourth quarter of 2008. Field.Link will
be introduced in an additional five markets during the current
year. The system will result in more efficient operations
with growing benefits as implementation continues. Work to
utilize capital employed within MCS in an optimal manner
will continue to receive high priority.
Within the Dehumidification division, the launch of
commercial products in Europe will be given focus through
the newly acquired Toussaint Nyssenne. In the US, our goal
is to capture additional market shares, primarily within the
commercial segment. We expect to achieve this by continuing
to develop new products with low energy consumption.
Continued growth in Asia is also high on the agenda.
Within the HumiCool division, we will continue to adapt
the workforce to lower demand levels and work to improve
the production structure. This work will result in a concentration
of manufacturing to fewer plants and an increased
share in low-cost countries.
Strategy retained
Munters has a unique ability to link technical expertise with
application knowledge. Our products and services are well-positioned
in relation to the long-term trends driving our market.
There is an increasingly greater awareness regarding energy savings
and environmental conservation. At the same time, knowledge
of the importance of the indoor climate for both health and
production processes is increasing. These trends favor Munters,
and on the whole, I expect Munters to show continued high
organic growth over the long term. Our strategy to broaden our
product portfolio by being able to offer the customer an even
more comprehensive product and service program is retained.
This strategy includes complimentary acquisitions.
In recent years, we have focused strongly on profit-enhancing
measures. This should become evident, especially in our
gross margin, when the financial crisis is over and the economy
recovers again. Although the coming period is characterized by
considerable uncertainty, I am convinced that the organization
will emerge strengthened from the prevailing recession. From
this perspective, I view Munters’ future with optimism.
Kista, March 2009
Lars Engström
President and CEO
Munters Annual Report 2008

4
Strategic focus
Focus on segments with favorable growth potential
StrateGY
Goals
Vision
Munters’ vision is to be a globally leading supplier of energyefficient
solutions for air treatment and damage restoration
based on its expertise in technologies for humidity and
climate control.
World-leading position
Munters’ world-leading position in energy-efficient regulation
of indoor climates was achieved through specialist
competence in thermodynamics, application expertise and
customer-driven product development. Munters focuses on
market segments with favorable growth potential in which
the Group can create strong global positions and favorable
profitability. By successively broadening the product and
service portfolio and through forward integration, Munters
takes a larger part of the value chain within selected niches,
while at the same time increasing the market potential. The
annual value of the potential market is estimated by Munters
to amount to nearly SEK 70 billion, of which Munters has
a market share of about 10 percent.
Strategic focus
An important part of strategy work is to further strengthen the
company’s position to leverage the following global trends:
• Increased demand for energy-efficient and environmentally
friendly solutions
• Increased demands on indoor climate
• Consolidations and quality requirements in food production
and distribution
• Consolidation within the insurance industry
• Economic expansion in Asia.
Financial targets
Shareholder value must be created through high growth combined
with favorable margins and a high capital turnover rate.
The Board of Directors has established the following financial
targets:
• Sales growth of 10 percent per year over a period of several
years
• EBIT margin of 10 percent
• Capital turnover rate a multiple of 3.
Each division and business unit has individual target for these
key figures that are adapted to their particular prerequisites.
Operative goals
• Global leadership in selected segments
• Leading in energy efficiency
• High quality and productivity combined with efficient
resource utilization through continuous improvement work
• Customer-focused performance culture with a high degree
of personal satisfaction and good career opportunities
• High efficiency and short lead times via integrated IT systems.
Sales growth
%
20
15
10
5
0
–5
–10
2003 2004 2005 2006 2007 2008
Target Sales growth Organic growth with current structure
Munters’ strategic initiatives to achieve its overall goals can
be summarized in the following illustration:
EBIT margin
%
12
Focus on gross margin
10
8
6
Leveraging global
market trends
Complimentary acquisitions
Profitable
growth
More efficient product development – global platforms
Strengthened presence
in Asia
Expansion from selected
niches
4
2
0
2003 2004 2005
Target EBIT margin
Capital turnover rate
multiple
3.2
3.0
2.8
2.6
2.4
2.2
2006
2007
2008
25
20
15
10
5
0
-5
-10
2.0
2003
Target
2004 2005
Capital turnover rate
2006
2007
2008
14
12
10
8
6
4

Strategic focus
5
Prioritized activities
implemented in 2008
Munters’ strategic plan is defined for each business unit and
has a planning horizon of three years. The plan is revised
each year. A number of strategic initiatives are formulated
at the division level and specify the business orientation and
focus. For the coming three-year period, the three divisions
are focusing on the following areas:
During 2008, long-term work to achieve the overall goals and
further strengthen the Group’s competitiveness continued
with undiminished force. A number of strategic initiatives
were taken, while others were completed during the year.
Completed activities in each of the divisions during the year
are summarized below.
Dehumidification division
Dehumidification is focusing on continued profitable growth
through geographic expansion in energy-efficient comfort air
treatment from the North American platform. The division also
prioritizes accelerated product development through cross-fertilization
of acquired technology and existing product families.
This work will be characterized by modular and global thinking
and energy efficiency. In addition, profitability will be improved
through more efficient production and administration.
Dehumidification division
• Acquisition of Toussaint Nyssenne complements and
strengthens offering in Europe
• Strengthening of production capacity and engineering
resources in China
• Patenting and launch of DryCool ERV in the US market
• Increased production efficiency and review of administration
in the US
• Organizational changes to utilize the sales force and
other functions more efficiently for the broadened product
portfolio.
HumiCool division
HumiCool is focusing on long-term profitable growth by
increasing the efficiency of the production structure and
increasing the share of production in low-cost countries.
The division will refine products and systems for the global
market based on its core technologies and components. In
addition, its position in the value chain will be strengthened
through supplementing the product portfolio, application
expertise and logistics within selected market segments.
HumiCool division
• Supplementing of product offering within AgHort to further
strengthen the position as a system supplier
• Transfer of production from high-cost countries to China
and Mexico
• Strong development in the system application GTEC,
a small but rapidly growing business
• Review of the product range within Mist Elimination with
respect to marine and industrial applications.
Moisture Control Services (MCS) division
MCS is focusing on strengthening its position as a leading
supplier to international players in the insurance industry
and property management by offering a total undertaking.
Profitability will be increased in core business through the
implementation of a new business model based on a mobile
IT platform and centralized customer centers. Investment in
growth in markets where the market share and the new business
model will provide the greatest competitive advantage
will be prioritized.
Moisture Control Services (MCS) division
• Mobile IT system Field.Link for increased efficiency and
customer benefit implemented in the first five countries
• Development of routines for pursuing major accounts which
resulted in several new major framework agreements with
customers during the year
• New organizational structure for more efficient management
and reduced costs for local infrastructure
• Rationalizations during the fourth quarter resulted in a
reduction of the number of depots, a merger of operations
in France and Belgium and reductions in Australia.
Munters Annual Report 2008

Business focus
7
Global trends increase demand
By successively broadening its product offering, Munters has increasingly developed into a globally
leading supplier of energy-efficient and environmentally friendly solutions for air treatment
and damage restoration within selected market segments. The offering, based on expertise
in technologies for humidity and climate control, is adapted to customer requirements, follows
development and leverages global trends. Several of Munters’ products support sustainable
development. The Group’s values should provide guidance in how business is conducted and
permeate work within Munters and relations with the company’s stakeholders.
Global trends increase demand
Over the past decade, Munters has developed from a component
supplier with its base in dehumidification and humidification
to a globally leading supplier of environmentally
friendly and energy-efficient solutions for air treatment and
damage restoration based on its expertise in technologies for
humidity and climate control. By continuously developing
new, energy-efficient and environmentally friendly solutions
while adapting the product and service offering to customer
requirements, the Group is now well-positioned to take
advantage of a number of global trends.
Increased demand for energy-efficient
and environmentally friendly solutions
The long-term trend of increasing energy prices, together
with a greater global environmental awareness and increasingly
stricter regulations on emissions increase demand for
energy-efficient and environmentally friendly products and
production processes. Compared with alternative solutions,
Munters’ technology often results in lower energy consumption
and less resource waste. Several of the Group’s products
are used to reduce emissions of hazardous substances, such
as sulfur dioxide and nitrogen oxide that contribute to the
greenhouse effect. Munters’ damage restoration services
contribute to avoiding demolition and new construction by
instead renovating and reusing damaged materials.
Increased demands on indoor climate
Increasingly high demands are being placed on indoor climates
in both commercial and industrial premises. Munters’ lowenergy
solutions for climate control allow customers to reduce
resource consumption and environmental impact. Energy is
often saved by making insulation denser and reducing ventilation.
This often results in problems with mold, moisture and
allergies. Munters can reduce these problems in two ways – by
installing fixed aggregates that prevent problems from arising
and enabling more energy-efficient ventilation or via the MCS
service division, which can take care of environments that
are already affected.
Economic expansion in Asia
The extensive economic expansion in Asia, primarily in China
and India, has created a large population that to an increasing
degree is able to adopt Western consumer patterns. This in
turn leads to increased demands to improve indoor climates,
which benefits products that employ Munters’ technology in
the manufacturing process. The Munters strategy includes
investment in growth in Asia, where China has become a
production center for Asia.
Consolidations and quality requirements
within food production and distribution
Consumption of meat in developing countries is increasing in
pace with improvement in regional economies. This in turn
leads to higher prices and a need for more rational production
processes. As a result, a global consolidation and regulation
of the farming and food industries is now in progress. This
trend has resulted in increasing investment in equipment to
increase productivity and improve hygiene. By regulating the
humidity level in premises for food production and distribution,
mold and bacteria growth are prevented, while shelf life
and quality are improved. To ensure high production quality,
production environments must be identical, regardless
of the climate zone. This trend favors Munters, which has a
strong brand and an organization that supports a strategy of
being global, customer-focused and specialized. Munters has
solutions for all levels in the food industry, from production
and manufacturing via transports to warehousing and sales in
stores. Munters climate control systems for animal breeding
increase productivity and reduce the risk of disease.
Consolidation within the insurance industry
An extensive consolidation has been in progress in the
insurance industry for a long time. Many insurance companies
want to reduce their costs for claims adjustment and restoration
by working with fewer national or international suppliers
and partners that can take increasingly greater responsibility
for administration relating to claims settlement. Munters’
service division MCS is positioned to take advantage of this
trend through its geographic coverage, long-term national or
regional partnership agreements at fixed price levels and its
ability to take increasingly greater responsibility for claims
settlement and IT-based documentation.
Munters Annual Report 2008

8 Business focus
Munters’ product offering and services
contribute to sustainable development
Munters is a technology company with products and services that contribute to sustainable development.
Munters’ ambition is to develop its business to achieve sustainable solutions that provide both environmental
and financial benefits for its customers and society as a whole. The Group’s product divisions,
Dehumidification and HumiCool, manufacture and market product solutions that combine low energyconsumption
with the lowest possible environmental impact. The MCS division’s methods for limiting
damage and drying instead of demolition and new construction result in less wasted resources.
Market segments and core technologies
Within the product divisions, the most important
segments are:
• Industrial-process air treatment
• Comfort-oriented climate control
• Climate control for the AgHort industry
• Flue-gas cleaning for coal-fired power plants.
Within the MCS division, Munters is building on its position
as a world leader in damage restoration and temporary
climate control.
Munters has a number of core technologies that are
applied to these market segments:
• Dehumidification
• Humidification
• Air cooling (direct and indirect evaporative cooling
and heating)
• Heat-exchange technology
• Mist elimination.
Dehumidification and ventilation products
Dehumidification division
Standard products for dehumidification
of air and ventilation of
premises. Handles air flows up to
1,400 m 3 per hour.
Customer value (example) Products
protect against condensation,
corrosion and rust in the
power industry. Prevents taste and
odor contamination in the production
of food.
Manufacturing primarily in
Sweden and China.
Products
ML-series
MX-series
M120/M300
HC-series
Other
Customer segments
A r c h i v e s /
warehouses
Transport
Power industry
Food industry
Other
Sales channels
Directly to endcustomer
Building contractors
External sales
representatives
Distributors
End markets
C
Europe
Americas
Asia
Share of sales
Dehumidification
and ventilation
products
Rest of division
Comfort systems
Energy-efficient systems that control
both humidity and temperature
in both commercial and public
premises. Handles air flows up to
100,000 m 3 per hour.
Customer value (example) The
systems create a comfortable
indoor climate. They prevent mold
formation and thus minimize the
risk of allergies. The systems are
energy-efficient and have low
operating costs in that they use patented
heat-exchange technology.
Manufacturing primarily in the
US and Belgium.
Products
DryCool/
DryCool ERV
Wringer
NA-series
Oasis/EPX
DesiCool
Customer segments
Department stores
Schools
Offices and public
buildings
Pharmaceuticals
industry
Other
Sales channels
Directly to endcustomer
Building contractors
External sales
representatives
End markets
Europe
Americas
Asia
Share of sales
Comfort systems
Rest of division
Process systems
Customized solutions for air
treatment and humidity control
for industrial processes with high
requirements on air quality and flow
precision. Handles flows of more
than 10,000 to 150,000 m 3 per hour.
Customer value (example) The
systems deliver absolutely dry air,
thus ensuring the highest efficiency
in the manufacture of pharmaceuticals,
food and chemical products.
They remove solvents from emissions
from production processes.
Manufacturing primarily in the
US and Germany.
Products
ICA/DDS
HCD Plus
Thermo/Z-duct
MDU
Zeol
Other
Customer segments
Food industry
Chemical industry
Pharmaceutical
industry
Electronics and semiconductor
industry
Other
Sales channels
Directly to endcustomer
External sales
representatives
End markets
Europe
Americas
Asia
Share of sales
Process systems
Rest of division

Business focus
9
HumiCool division
AgHort products
The product range makes it
possible to create total solutions
for controlling the climate in
facilities for breeding livestock
and greenhouse cultivation.
Customer value (example)
Through the use of evaporative
cooling methods and specially
designed heaters, very energyand
cost-efficient climate solutions
are created.
Manufacturing primarily in Italy
and the US.
Products
Fans
Cooling pads
Suction pumps
Heaters
Other
Customer segments
Poultry industry
Greenhouses
Pig farms
Dairies
Sales channels
OEM
Distributors
Directly to endcustomer
End markets
Europe
Americas
Asia
Share of sales
AgHort products
Rest of division
HVAC & GTEC products and systems
Products intended for climate
control limited in space or time
for what is called spot climate
control (HVAC). Systems for
cooling air to gas turbines
(GTEC).
Customer value (example)
These solutions are very
cost-efficient and optimized for
heating or cooling of small areas
where there is a need only during
shorter periods of the year.
Manufacturing primarily in Italy,
the US, Mexico and China.
Products
Cooling systems
Products for climate
control
Cooling pads
Customer segments
Industry
Construction
Other
Sales channels
OEM
Resellers
Distributors
Building contractors
Installers
End markets
Europe
Americas
Asia
Share of sales
HVAC and GTEC
products and
systems
Rest of division
Mist Elimination systems
Products based on mechanical
separation of liquid and gas
called mist elimination.
Customer value (example)
These systems reduce environmentally
hazardous sulfur
emissions from coal-fired power
plants by as much as 90 percent.
Manufacturing primarily in
Germany and the US.
Products
DF/DCF
DH5000/DV270/
DS8200
DV210/DV880
Customer segments
Power industry
Industry
Maritime
Other
Sales channels
OEM
Engineering and
technical consultants
External sales
representatives
Directly to endcustomer
End markets
Europe
Americas
Asia
Share of sales
Mist Elimination
systems
Rest of division
Moisture Control Services (MCS) division
Damage restoration
Services in damage restoration
for every conceivable environment
from restoration of private
property to large-scale commercial
damage and cleaning after
major individual events.
Customer value (example) High
availability, fast response times
and modern technology and
work processes enable costeffective
and environmentally
friendly restoration.
Services
Water damage
restoration
Fire damage
restoration
Reconstruction
Leakage control
Other
Customer segments
Insurance companies
Public buildings
Property managers
Industry
Other
Sales channels
Framework agreements
with insurance
companies
Keya accounts
Local sales
End markets
Europe
Americas
Asia
Share of sales
Damage restoration
Rest of division
Temporary climate control
Services for providing a temporary
environment to eliminate
corrosion in surface finishing in
places with high humidity and
to limit or prevent disturbances
in production processes in
conjunction with construction
and maintenance work.
Customer value (example) With
a temporary installation and the
use of energy-efficient products,
a cost-effective solution is
achieved.
Services
Industrial applications
Surface processing
Construction climate
Other
Customer segments
Insurance companies
Public buildings
Property managers
Industry
Sales channels
Key accounts
Local sales
End markets
Europe
Americas
Asia
Share of sales
Temporary climate
control
Rest of division
Munters Annual Report 2008

10 Business focus
Core values – responsible business conduct
Satisfactory profitability and a strong financial position must
create the conditions for Munters to engage in long-term
sustainable development for business partners, employees,
owners and society. Munters’ core values are based on a
sustainability perspective and expressed in part in the Group’s
global Corporate Social Responsibility policy, which includes
such subjects as company culture, the environment, quality,
work environment, safety, code of conduct, business ethics
and corruption and is based on the UN’s general declaration
of human rights and the International Worker’s Organization’s
basic principles regarding rights in working life. The
entire policy is available at www.munters.com. Munters’ business
is based on these values, which define the Group’s basic
views. At the same time, the Group’s operations are regulated
by laws, ordinances, norms and permits in each country in
which Munters operates. For Munters, responsible business
conduct thus includes economic, ethical, environmental and
social responsibility. Munters has three global divisions that
operate independently, and decision-making is delegated.
Each manager has considerable freedom to exercise his or her
responsibility within the framework of the above policies.
Did you know
Humidity in the air is
adsorbed in the rotor
Humid air
removed
The rotor
rotates slowly
Drive motor
Dehumidified air
Heater
Heated air
dries the rotor
The adsorption dehumidifier’s rotor contains small air
channels with a very large contact surface. The rotor is
treated with substances that attract humidity or other
substances in the airstream passing through the rotor.
When the dehumidifier is in operation, two airstreams
pass simultaneously through two sections. One airstream
will be dehumidified. The other is warm and is
used to dry the rotor so that it can continue to take up
humidity. The humidity is carried away in the warm and
very moist airstream.
CSR work within the Group began in 2006, and in 2007,
Munters’ CSR work was made more concrete through
focused work in the two product divisions where two tools
are used to ensure and verify that business partners work
in accordance with Munters’ CSR policy:
• Supplier Self-assessment Form – a supplier evaluation tool
that is also used in the service division
• General Purchase Agreement – a standard supplier agreement
with penalty clauses for deviations. Penalties are
donated without deduction to charities in the area for the
breach of contract.
Work in 2008
In recent years, the most important suppliers within the product
divisions confirmed that they live up to these requirements.
This work with Munters’ suppliers is ongoing, and the
goal is to constantly increase the number of suppliers that live
up to Munters’ new requirements.
Within the Dehumidification product division, the plant
in Tobo, Sweden signed a contract in 2008 for environmentally
labeled electricity with electricity supplies with low
carbon-dioxide emissions and a complete specification of the
exact environmental impact from start to finish.
Within the MCS division, there were locally adapted
activities within the framework of the overall CSR policy.
During 2008, a vehicle policy was adopted according to
which all service vehicles must be either diesel or hybrid
vehicles. In the UK, for example, Munters in 2008 for the
third time obtained IiP status (Invest in People), which is a
standard for improving a company’s earnings through investing
in employees. An increasing number of customers, such as
the large international insurance companies AXA, Vesta and
If, are requiring compliance, follow-ups and reporting of the
division’s CSR work.
During the 2008 fiscal year, the following Group-wide
projects and initiatives were started:
• Travel policy intended to achieve better control, follow-ups
and cost savings, as well as increase safety and environmental
awareness. The policy was implemented in Sweden, the
UK and the US during the year
• Introduction of a videoconferencing system in 28 locations
around the world in order to reduce travel and environmental
impact
• Training activities on CISG (United Nations Convention
on Contracts for the International Sale of Goods) for global
purchasers within Munters.

Business focus
11
Quality and the environment
The division’s quality and environmental manager is responsible
for ensuring that production, product and service
improvements take place based on the Group’s environmental
and quality policy.
The environmental policy contains the following general
guidelines:
• Prevailing legislation in the environmental area must be
complied with and preferably exceeded
• Environmental benefits of Munters’ products and services
should be marketed
• Employees must be involved and trained in environmental
issues
• Increased control of waste volumes
• Increased recovery of material during damage restoration
• Environmentally oriented work processes.
The quality policy contains the following principles:
• Employees must be aware of and understand the importance
of quality
• Organization and delegation of responsibility and authority
relating to quality work must be documented
• Customer focus, cost efficiency and the requirements of
ISO 9001/2000 or the equivalent must be the starting point
for production
• Research and development of products, systems and service
must be based on customer requirements and demand
• Routines, processes and methods that ensure the desired
quality must be documented and followed
• Only suppliers that are able to satisfy Munters’ quality
requirements may be employed
• Marketing and sales activities may only create customer
expectations that we can satisfy
• Development of quality work must be followed up continuously
through information, feedback and quality reviews
• Quality-related work must be managed to achieve annual
goals for quality improvements.
Munters has 20 production plants around the world and conducts
operations subject to permit and reporting obligations at
13 plants. Within production, efforts have been made in certain
local production plants to reduce production waste, as well
as to use resources more efficiently. In producing new products,
Munters’ goal is to reduce the impact on the environment.
Munters’ product development, primarily of consumer products,
is adapted to the EU’s RoHS (Restricted or Hazardous
Substances) directive, which today is also self-evident within
Munters in product development for the industrial market.
Did you know
When traditional air conditioning is used to cool
an area, the humidity increases. This often results
in growth of mold that is hazardous to health and
moisture problems. In warm climates, there is therefore
a demand for air conditioning in combination with dehumidification.
However, traditional air conditioning is
very energy-demanding. Several of Munters’ products
for climate control are based on evaporative cooling.
Evaporative cooling means cooling through evaporation.
Water added to warm air becomes vapor and thus
lowers the air temperature. This is the same principle
that the human body uses when it produces sweat.
Four grams of water added to one cubic meter of air
lowers the air temperature by 10° C. This is a natural
cooling method that does not require energy. It sounds
simple, but it requires great expertise to achieve commercial
solutions.
Munters’ operations in Sweden
Munters conducts operations subject to permit and reporting
obligations that include emissions to air and water according to
permit type B in the Environmental Code at its plant in Tobo.
The permit covers all production operations in the plant and
is valid until further notice. There are also noise restrictions.
There are no injunctions within these areas. The production
operations are environmentally certified according to ISO
14000. The products are continuously adapted to the EU’s
various environmental directives. Chemicals and other hazardous
waste are collected and turned in for destruction. There are
no environmental debts and no current disputes.
Operations outside Sweden
Of the Group’s operations outside Sweden, 12 plants conduct
some form of operations subject to permit and reporting obligations.
Detailed information about these plants is available
at www.munters.com/sustainability. There are no environmental
debts and no current disputes.
Munters Annual Report 2008

12
Personnel
Entrepreneurial spirit
with customer focus
Munters is a global company with a strong local presence. Its culture is characterized by
customer focus, professional expertise and dynamism. Delegated leadership results in a
strong entrepreneurial spirit and an innovative work environment that creates prerequisites
for continuously enhancing Munters’ competitiveness and creating profitable growth.
Long-term organic growth supplemented by strategic acquisitions
have created a global company with a strong company
culture and local presence. This presence means that Munters
can always offer local solutions based on the customer’s own
requirements, which provides a strong competitive advantage.
Personnel development
Munters’ open company culture gives every employee clear
responsibility for his or her own development. It provides a
creative and living work environment in which everyone’s
unique abilities are fully utilized and creates personal motivation
to develop. This is possible through delegated leadership.
The clear responsibility for own development, which rests
with each employee, combined with extensive support for
all managers in their daily personnel work, has created an
innovative work environment. An important tool for managers
and supervisors in this work is Munters Management
Manual, a place on the intranet where the company’s guidelines,
policies and recommendations are gathered.
Career opportunities
Munters is a youthful company that is constantly growing,
which gives employees many opportunities to quickly expand
their work assignments and develop in their professional roles.
Within the Group, both managers and employees receive full
support in pursuing a career within their own organization.
Munters strives to recruit internally in the first instance when
the company expands and new positions are created.
With constantly new technical applications and customer
niches, work to recruit and retain key persons has become
an increasingly important strategic goal. To guarantee and
strengthen Munters’ level of expertise over the long term,
emphasis has been placed on creating awareness of future
requirements on expertise and personnel.
Competence supply with respect to managers and key
positions was further enhanced during 2008. The working
model for succession planning, Munters Continuity Planning,
offers good guidance in the work to match the company’s
requirements with employee desires for professional
careers and personal development. Group-wide guidelines for
mobility between countries have been established to improve
Net sales per employee
SEK 000s
1,600
1,550
1,500
1,450
1,400
1,350
Average number of employees
Number
4,800
4,000
3,200
2,400
1,600
800
Permanent employees per division
Number
2,400
2,000
1,600
1,200
800
400
1,300
03 04 05 06 07 08
Per average number of employees
0
Men
03 04 05 06 07 08
Women
0
Dehumidification
HumiCool
MCS
Age distribution
Personnel turnover
Permanent and temporary employees
Number %
Number
1,500
24
6,000
1,250
20
5,000
1,000
16
4,000
750
12
3,000
500
8
2,000
250
4
1,000
0
0
0

Personnel
13
the support for subsidiaries and employees who move to a new
country to contribute to Munters’ continued development.
Initiate
Plan
Execute
Conclude
Global perspective
Ensuring competence globally is important for the future.
Munters therefore regularly arranges international meetings
for managers and key persons to share new ideas that can
contribute to better business, to learn from each other and to
strengthen competitiveness in the local markets.
Munters conducts regular opinion surveys among all
employees to quality-assure the work environment. The
results are reported internally and provide the basis for development
within each business area.
In pace with Munters’ growth in new markets and new
customer segments, additional requirements are placed on
global personnel processes. The newly established management
group for global HR issues implemented several global processes
during the year to support Munters’ business strategy. A new
leadership development concept that supports Munters’ strategic
development was established in which competence development
is matched to seniority and role in the company. Focus
areas in the leadership development concept have been international
company management with a special focus on China and
strategy and management of support processes, such as research
and development, finance and HR.
Training is primarily conducted in consortium form in
collaboration with universities and other multinational companies.
In addition, a Group-wide initiative was established
relating to structure and processes surrounding management
compensation, bonus programs and international mobility.
Incentives with clear goals
Within Munters, there is a strong link between individual performance
and the company’s earnings growth. The company
has different programs for variable compensation that include
standardized reward systems for sales and service personnel
and bonus programs for senior managers and other key persons
in the Group. These programs take into consideration sales and
earnings trends, capital turnover rate and individual goals.
Employees in figures
The average number of employees, including temporary
employees, was 4,291 during the year, an increase of 0.5
percent, compared with the preceding year. The proportion
Contract
Plan
Business case
Organization
and resources
Project
reports
Final
documentation
and approval
Group-wide model for project management
Each year, Munters conducts a large number of projects
at the local, regional and global level. To become more
focused and improve work in project execution, a Groupwide
model for management and execution of projects –
Munters Project Model (MPM) – was introduced in 2008.
The model is designed to enable it to be used in all types
of projects, even in R&D, and includes the project organization,
a management model, documentation, a model
for execution and documentation for follow-ups.
During the year, Munters conducted a global MPM
training for a large number of employees in which management
groups and Group management also received
an overview of the model. During 2009, Munters will
continue developing the model with the objective of
making it a natural part of the Group’s corporate culture.
of women amounted to 19 percent (19). Personnel turnover
increased during the year to 17 percent (13) for the Group
as a whole. The still relatively high figures are due to several
factors. Personnel turnover as a result of relocation of production
increased, compared with previous years. Europe has a
high proportion of MCS employees, which is traditionally a
personnel group with high mobility. Asia consist of several
young companies with a large share of production where
employee mobility is still relatively high. Munters is to a large
extent a young company. Fully 52 percent of the workforce is
younger than 40, and the average age is 40 years (38).
Munters Annual Report 2008

14 Dehumidification division

Dehumidification division
15
“The division’s earnings in 2008 were satisfactory, given
the turbulent market. The gross margin declined somewhat,
however. This was a result of a changed product mix and
non-recurring costs for a fault in a component supplied by a
third party. The acquisition of Toussaint Nyssenne strengthens
Munters position in the European market for customized
air treatment systems for offices and public buildings. It
also provides greater access in Europe to Munters’ DryCool
technology that has achieved great success in North America.
Our goal is to continue strengthening and expanding our
presence in Europe.”
Mike McDonald, Division President
Developments during 2008
• Relatively stable order intake during the year, with a
positive growth in business with new customers in
the US in the Commercial segment
• Acquisition of Belgium-based Toussaint Nyssenne
completed in the fourth quarter
• Division’s presence in Asia strengthened
• First signs of a weaker market at the end of the
fourth quarter.
The Dehumidification division showed stable growth during the
year, despite signs of weaker market conditions toward the end
of the fourth quarter. Demand for applications in the commercial
segment was strong, due to new and more energy-efficient products
launched as a result of the acquisition of Des Champs Technologies
a year earlier. The market for dehumidifiers for industrial
applications was also sound during the year and driven by strong
demand from the pharmaceutical and food industries. Margins
were negatively affected by guarantee costs due to faulty components
from a third party. The order backlog at the end of the
year was favorable, but the mix of gross margins was somewhat
weaker, compared with last year. Measures to decrease personnel
were taken during the latter part of the year in response to the
weaker market conditions that are expected. The acquisition of
Toussaint Nyssenne was completed during the fourth quarter, and
the company was consolidated as of October 1, 2008.
KEY DATA 2008
Adjusted
2008 2007 Change, % change, % 1
Order intake, SEK M 2,133 2,001 7 5
Net sales, SEK M 2,051 1,936 6 3
Operating earnings
(EBITA), SEK M 201 234 –14
Operating margin, % 9.8 12.1
Return on operating
capital, % 38.7 52.0
Capital turnover rate,
multiple 3.9 4.3
No. of employees, Dec 31 1,301 1,180 10
1
Preceding year translated to this year’s exchange rates and adjusted for acquisitions.
Share of consolidated
net sales
Net sales by geographic
region
SEK M
3,000
Order intake Net sales Operating earnings
1,500
31% Asia 10%
50% Food 13%
32%
1,000
Pharma-
Europe 37%
Americas 53%
ceuticals 10%
Other 40%
500
Department
stores 10%
0
Commercial
2003 premises 200427%
2005 2006 2007
2,500
2,000
1,500
1,000
500
Share of consolidated 2,000
operating earnings
0
SEK M
3,000
2,500
SEK M
3,000
2,500
2,000
1,500
1,000
500
0
2003
2004
2005
Customer segments
2006
2007
2008
SEK M
300
250
200
150
100
50
Share of Group employees 200
2008
0
SEK M
300
250
150
100
50
0
SEK M
300
250
200
150
100
50
0
3 000
2 500
2 000
1 500
1 000
500
0
3000
2500
2000
1500
1000
500
0
3000
2500
2000
1500
1000
Munters Annual Report 2008

16
Dehumidification division
Continued geographic expansion
The Dehumidification division is a world leader in energy-efficient products and complete solutions
for controlling humidity and improving the quality of indoor climates. Its technology is used in both
production equipment and in large premises such as warehouses, department stores and schools.
Environmentally friendly products, advanced technical expertise and a global presence, in
combination with a strong customer focus, have contributed to Munters’ strong position. The US
and Europe are the largest geographical markets, but Asia is growing in importance. Manufacturing
takes place in plants in Sweden, Belgium, the US, Mexico, Brazil, Japan and China.
Services and offering
The Dehumidification division has an organization based on
functions and is divided into three market areas: the Americas,
Europe and Asia. The Americas region accounts for
slightly more than half of sales, Europe accounts for slightly
more than a third and the remainder is attributable to Asia,
which includes Australia.
The division offers products and complete solutions to
improve air quality for its customers, thus creating more
efficient manufacturing processes or storage conditions or an
improved indoor climate. Munters solutions are installed in
widely varying buildings, including manufacturing plants,
department stores, schools, restaurants and hospitals. A smaller
portion of operations is focused on the semiconductor and
composite industries with equipment for cleansing air from
the solvents used in the production processes. Munters has a
complete product program, with dehumidifiers and dehumidification
systems for air flows from 50 m 3 /h up to 150,000 m 3 /h.
Proprietary core technology
The division’s products and systems are based on the most
energy-efficient technology and employ Munters’ dehumidification
rotor, which is designed to absorb humidity. The
Dehumidification division’s competitiveness consists of high
technical expertise, global market coverage and an ability to
adapt products and systems to customer-specific needs.
Munters’ world-leading brand and its capacity for service
and support are other competitive factors.
Climate control is a critical factor in many manufacturing
processes. Small changes in humidity and temperature may
create a breeding ground for mold and bacteria. This in turn
may affect the safety and quality of manufactured products,
as well as health and productivity in the workplace. In commercial
premises, traditional air-conditioning systems are
often used to control the indoor climate. However, these systems
consume considerable energy. Munters’ solution, which
is based on reducing humidity levels in the premises, requires
less cooling and thus lowers energy consumption.
A majority of the world’s population lives in climates with
high temperature and humidity, and it is in these areas that
needs are greatest. Awareness of the economic prerequisites
for addressing these problems is increasing in many regions.
Thus far, the greatest sales successes for Munters’ systems
have been achieved in the US, where large parts of the country
have a warm climate with high humidity.
Increased environmental awareness
Increased environmental awareness among the public and the
authorities in combination with a trend towards high energy
prices is driving development of more energy-conserving products.
Munters offers the market’s most energy-efficient products,
and on the strength of its technical leadership, the company
strives to improve environmental features of all of its products.
Product development is focused on improving the dehumidification
rotor’s performance with unchanged or reduced energy
consumption. One example of an energy-saving innovation is
Power Purge, through which the energy consumption in a
dehumidification system can be reduced by up to 40 percent.
Customers and market
The global market for Munters’ dehumidification products
and systems is estimated to amount to about SEK 15 billion.
Munters total market share amounts to about 15 percent
within its defined markets. Within rotor-based dehumidification,
Munters holds a 50-percent market share.
The food and pharmaceutical industries are the largest
customer segments. Moisture results in substantial negative
effects on food and pharmaceutical quality in production,
handling and storage. Global food producers strive for identical
taste, aroma and appearance of their products, regardless of
the climate zone in which they are produced. Cold and frozen
products also present a more difficult challenge. Munters’
dehumidification systems offer customers the ability to control
humidity and thus prevent the formation of frost and ice during
the production process. In the electronics and semiconductor
industry, a humidity-controlled environment is often crucial
for the manufacturing result. One example of a significant
customer application is bridge constructions in which dry air
protects sensitive parts against corrosion.
Customers within these customer segments include such
global companies as Texas Instruments, General Electric,
Siemens, Pfizer and Nestlé.

Dehumidification division
17
How Sandvik reduced energy costs
and increased production
The Swedish engineering group Sandvik has a worldleading
position in selected niches. One of them is tools and
components in cemented-carbide and high-speed steel for
metalworking. During 2008, Sandvik opened its new plant
in Rovereto in northern Italy. About 130 persons work in the
plant in three shifts manufacturing shank-end mills in solid
cemented-carbide.
Energy efficiency high on requirements list
The climate in this region is characterized by short, cold
winters and long, hot summers with high humidity. Because
Sandvik uses advanced CNC machines that are sensitive to
climate changes, it was important to find the market’s most
optimal air treatment system. Among Sandvik’s many stringent
requirements on such a system, energy efficiency was
very high on the list. The company had positive experience
of Munters’ air treatment systems from other Sandvik plants
around the world. Sandvik contacted Munters’ experts who
presented a solution with the new DryCool ERV system that
was launched so successfully in the US market just a few
months earlier.
Controls both temperature and humidity
What makes the DryCool ERV system special is that it
controls both temperature and humidity in the same system.
It also uses heat recovery and condenser heat to dry the
dehumidifier’s rotor. The result is the market’s most energyefficient
and effective climate control system. During the
summer months, the system provides dehumidification and
cooling. In the winter, energy is saved by recovering waste
heat. A perfect production climate is created, regardless of
the season.
Reduced energy costs and increased comfort
After installation of DryCool in the Rovereto plant, Sandvik
reduced its cooling requirements by a full 60 percent during
the summer months. In addition, DryCool contributed to
increasing production in the plant. When the climate surrounding
a CNC machine is optimal, the need for manual
supervision is reduced. By installing DryCool, the machines
can run on weekends with reduced personnel. This was not
possible previously due to the high cost of human supervision.
The most important benefit that Sandvik discovered
was that the plant’s many employees can now work in a
comfortable indoor climate regardless of the season.
Munters Annual Report 2008

18
Dehumidification division
Global partners
In addition to increased focus on energy-efficient solutions,
major customers within the food and pharmaceutical industries
are increasingly seeking global partners to guarantee
product standards and achieve efficiency in purchasing.
Munters is one of the few global companies in the industry,
with manufacturing, sales and service operations in North
and South America, Europe and Asia in an otherwise fragmented
market. Competitors primarily consist of regional
players that are active in their local markets or in specific
niches. Munters’ market share amounts to about 14 percent
of an estimated total market for customers in the industrial
segment of slightly more than SEK 9 billion.
The Dehumidification division is also specialized in
humidity and temperature control in commercial premises frequented
by many persons, such as department stores, schools,
restaurants and hospitals. These customer segments account
for one third of the division’s sales. In department stores, for
example, Munters’ systems create a comfortable indoor climate
for customers and personnel, while the dry air prevents ice
formation in the freezer cabinets for frozen food. A customer
group showing strong growth is schools, where high humidity
often gives rise to mold, which can result in students being
affected by allergies. Operating rooms, swimming pools and
ice rinks are other examples of demanding applications with
substantial requirements with respect to humidity and climate
control. The acquisition of Des Champs Technologies in 2007
strengthened Munters’ position as a leading supplier of energyefficient
systems for climate control for commercial buildings
and enabled market coverage to be improved strongly with
respect to both climate zones and customer applications.
Energy-efficient solutions
The largest players in indoor climate control for commercial
buildings are traditional air-conditioning companies, such as
Trane and Carrier. These air-conditioning systems are primarily
intended for cooling intake air and are less suitable for regulating
the humidity level. This means that the indoor climate
becomes humid, with the resulting risk for mold and bacteria
growth. The traditional solutions available for controlling
humidity in these premises require significantly more energy
than Munters’ solutions. Munters is a small player in the market
for commercial air conditioning. However, through a niche
strategy that focuses on technical leadership and energy-efficient
products for treatment of ventilation air, a strong market
position has been achieved. Today, Munters is the leader in
products that control both temperature and humidity. Munters’
market share in these commercial segments amounts to about
14 percent of an estimated total market of SEK 5 billion.
Cleaning emissions
A smaller portion of the division’s operations, approximately
3 percent of sales, manufactures what are called Zeol systems
that remove solvents from emissions in conjunction with
production processes. This is a small but very profitable niche
market. The largest customer segment is the semiconductor
industry, but auto paint shops are growing in importance.
The largest individual customer is Intel. Both the semicon-
ductor and the automotive segments are cyclical with respect
to investments, which affects Munters earnings trend. Munters
market share in this niche amounts to about 12 percent.
Customer-oriented product development
Much of the division’s development work is focused on further
development of the product platforms that serve as the
foundation of the Munters dehumidifier range. With these
modular platforms as a base, cost-efficient products are developed
that create economies of scale and permit customization
according to the very varied requirements of the customer
segments. One example is the Integrated Custom Airhandler
(ICA), which is a platform consisting of large industrial systems
that accounts for one third of sales to industrial customers in
the US market.
One example of products for the commercial customer
segment is DesiCool, which is an environmentally friendly
and energy-efficient air treatment system that recovers waste
heat and converts heat to cooling in office premises and
production facilities. The DryCool product family, which
was further enhanced in conjunction with the acquisition of
Des Champs, has proven to be very attractive in the segment
for public and commercial premises. Both DesiCool and
DryCool will be manufactured in the newly acquired Toussaint
Nyssenne in Belgium and thus become more available
for a broad European market.
Munters supplies dehumidification
equipment to NASA
At Cape Canaveral Air Force Station in Florida in the
US, a plant for assembly of tomorrow’s satellites is
now under construction. High demands are being
placed on all equipment to be used in the plant,
particularly considering the high humidity that prevails
in this coastal area of Florida. In intense competition,
Munters won an order to deliver ten large customized
dehumidification units to NASA. Each unit contains
specially manufactured peripheral equipment which
had undergone rigorous quality controls. The units
were delivered as planned in the autumn of 2008.

Dehumidification division
19
Developments during 2008
The first products to combine Munters and Des Champs
technologies were launched during the year.
The acquisition of the Belgian company Toussaint Nyssenne,
a manufacturer of high-quality air treatment systems,
was completed during the fourth quarter. The acquisition
strengthens Munters’ market position within the European
market for customized air treatment systems for offices and
public buildings. The greatest potential lies in creating greater
availability in Europe for Munters’ Drycool technology, which
is very successful in North America. The acquisition will also
facilitate more rapid growth through synergies in product
integration, technology and distribution. Toussaint Nyssenne’s
products complement and also expand Munters’ product range
in industrial applications. The acquisition contributed 122
employees and annual sales of about SEK 193 million.
Non-recurring costs of SEK 13 million for quality problems
due to a sub-supplier were charged against earnings in
the second quarter. Stronger presence in China provides the
foundation for growth during 2009.
Strategy
• Global product platforms to achieve cost savings
• Expansion in Asia
• Strengthened presence in the European market for commercial
products
• Increase energy efficiency of products
• Increase focus on energy-efficient industrial air treatment
with DryCool and DesiCool
• Improve margins through global purchasing and relocation of
production, as well as global adaptation of the product range
• Acquisitions that leverage Munters’ leadership in energy
efficiency and dehumidification.
Focus 2009
During the preceding year, much effort was devoted to implementing
efficiency-enhancing measures within the framework
of the Munters Efficiency Program. In addition, considerable
focus was devoted within the division to streamlining the product
portfolio to comprise a smaller number of global product
families that are designed according to a modular philosophy.
Furthermore, development continues to combine Munters and
Des Champs technologies in new products. A similar technical
and organizational development has been initiated with the
newly acquired Toussaint Nyssenne. The division intends to
continue its expansion within commercial products, including
DryCool and DesiCool, in the European market.
During 2009, the division will continue to selectively
strengthen its presence in the Asian market and in addition
ensure that production in the new Chinese plant develops
according to plan. A broad product portfolio is manufactured
in China, and the plant constitutes a production center for
Asia, while being developed into a global center for purchasing
of low-cost components.
Better air when school starts
Most children probably dream at times of escaping
school. Perhaps it snows so much that school will be
cancelled and students can sleep in late. Or perhaps
the air conditioning breaks down on a hot summer day
and school ends early. At Jefferson Forest High School
in Forest, Virginia in the US, however, the problems
were much greater. Severe mold growth and poor indoor
air quality forced officials to close the school and
start the summer vacation three weeks early.
What was a dream come true for many students
proved to be a formidable challenge for school officials.
In a short period of time, they had to get the building
in shape for the autumn semester. The problems with
poor air had existed for some time, and both students
and employees had complained about breathing
difficulties, headaches and allergy-related symptoms.
When the roof needed to be replaced, several leaks
were discovered that had resulted in mold and bacteria
growth. The real villain, however, was poor air circulation,
which was particularly evident when the children
were in the school. Humidity levels of 70 to 90 percent
could be measured, while the level should not exceed
60 percent to prevent mold formation.
Energy-efficient heat exchanger
IMEC Engineers, which was employed for the sanitation
project, was able to conclude that the existing
air-conditioning system was only cooling the air but
could not remove the humidity. “We needed a supplier
who could solve the humidity problem as quickly as
possible,” says J. Todd Owen from IMEC.
He contacted Munters, which installed three permanent
Wringer aggregates. These units contain Des
Champs’ unique and energy-efficient heat exchangers
and can be adapted to any climate. The moist outdoor
air is cooled and dehumidified before being led into the
building again. “After the installation, several measurements
have been performed, and we are very pleased
with the results. The problem is solved, and we also
finished in time for the start of school,” comments
J. Todd Owen.
Munters Annual Report 2008

20 HumiCool division

HumiCool division
21
“After a strong first half of the year for most business areas,
HumiCool was affected by a sharply weakened market as
a direct result of turmoil in the credit markets that quickly
resulted in reduced volumes. During the second half of 2008,
the division implemented forceful measures to adapt the
cost structure to the lower market activity. This work will
continue during 2009. Our market position remains favorable,
and I expect that the implemented measures will further
strengthen the division so that we will achieve a rapid recovery
when the market rebounds.”
Per Segerström, Division President
SEK M
3,000
2,500
SEK M
300
250
3 000
2,000
200
2 500
Developments during 2008
• Favorable sales for most business areas during the
first half of the year with the exception of HVAC
• Sharply weakened market prospects after the
summer
• Rationalization measures in the production structure
and substaintial reduction of the workforce.
During the first half of the year, market growth was strong for all
business areas except HVAC, which experienced weak demand
for mobile heaters after a mild winter. Mist Elimination showed a
favorable earnings trend aided by a solid order backlog, but order
intake declined significantly due to low demand among coal-fired
power plants in the US. After the summer, all business areas were
strongly affected by the turmoil in the global credit markets, which
resulted in distributors experiencing difficulty with short-term
financing and thus reducing inventories. A dramatic decline in the
KEY DATA 2008
AgHort 1,500 market became evident in the fourth quarter, with the US 150
leading the downturn. The driving force over the short term was a
1,000
100
lack of financing, but a rapid increase in the price of animal feed
that 500has not been reflected in the price of meat means that the 50
industry over the medium term will experience strong pressures
on margins 0 that will limit willingness to invest. Earnings during the 0
2003 2004 2005 2006 2007 2008
year were affected by a non-recurring cost of SEK 10 M resulting
from bankruptcy of a large US HVAC customer, which was unable
to SEK renew M its loans due to the financial crisis. To adapt to the lower SEK M
3,000 market activity in several segments, adjustment of the workforce 300
continued and will be combined with additional changes in the
2,500
production structure. During the year, the MEP 2 250
program was
implemented 2,000 with the objective of adapting HumiCool’s produc­20tion
units to the demands and requirements that will be placed
on 1,500 the division in the future. A non-recurring cost of SEK 22 M 150
was charged against earnings during the year and was mainly
1,000
100
attributable to the units in Mexico and German and the relocation
of 500 production from Italy and Sweden to China and Mexico. 50
0
2003
2004
2005
2006
2007
2008
0
2 000
1 500
1 000
500
0
3000
2500
2000
1500
1000
500
Adjusted
2008 2007 Change, % change, % 1
Order intake, SEK M 1,644 1,837 –11 –14
Net sales, SEK M 1,743 1,765 –1 –5
Operating earnings
(EBITA), SEK M 155 251 –38
Operating margin, % 8.9 14.2
Return on operating
capital, % 27.5 52.3
Capital turnover rate,
multiple 3.1 3.7
No. of employees, Dec 31 866 924 –6
1
Preceding year translated to this year’s exchange rates and adjusted for acquisitions.
SEK M
SEK M
3,000
300
2,500
250
2,000
200
1,500
150
1,000
100
500
50
0
0
2003 2004 2005 2006 2007 2008
Order intake Net sales Operating earnings
0
3000
2500
2000
1500
1000
500
0
Share of consolidated
net sales
Net sales by geographic
region
Share of consolidated
operating earnings
Customer segments
Share of Group employees
26% Asia 16%
Americas 33%
38% AgHort 44%
ME 28%
HVAC/
GTEC 28%
21%
Europe 51%
Munters Annual Report 2008

22 HumiCool division
Dramatic market shift during the year
HumiCool offers environmentally friendly and energy-efficient solutions for creating an optimal
indoor climate for animals, plants and humans, as well as for industrial processes. The technology is
primarily based on evaporative cooling that occurs when water evaporates. This is nature’s own
method for cooling the surrounding air. In addition, the division offers effective products for reducing
harmful emissions, primarily for the coal-fired power industry. Munters has a strong position through
its role as a pioneer in evaporative cooling. An increasingly broad product portfolio, considerable
application expertise and global presence are some of HumiCool’s competitive advantages.
Services and offering
The division is divided into three business areas, AgHort
(Agriculture & Horticulture), Mist Elimination, HVAC/
GTEC (Heating, Ventilation and Air Conditioning and Gas
Turbine Evaporative Cooling). AgHort, which is the largest
business area, offers systems for climate control primarily for
facilities for livestock breeding and for cultivation of plants
and vegetables. Mist Elimination manufactures components
called mist eliminators primarily for flue-gas cleaning systems
for coal-fired power plants, as well as for the process
industry and maritime applications. The HVAC/GTEC business
area offers products for climate control for indoor environments
and products for air cooling for gas turbines. The
division has major production facilities in the US, Mexico,
Germany, Italy, China and Australia and smaller production
and logistics units in Brazil, Denmark, South Africa, Thailand
and Japan.
Proprietary cooling technology
Munters’ technologies in the AgHort, HVAC and GTEC
business areas are based on evaporative cooling. Warm and
dry air passes through Munters’ special CELdek® or GLASdek®
cooling pads, which are sprayed with water. As the air
passes over the pads, the water evaporates, making the air
cool and moist. This cooling technology, which is based on
Munters’ own innovations, offers low operating costs and is
also very environmentally friendly. Within this business area,
Munters also offers a broad range of mobile heaters, which are
used when there is a need to heat small or large areas during a
short period of the year. Within Mist Elimination, the technology
is based on removal of liquid droplets from gas streams
by mist eliminators. In the Flue-Gas Desulfurization (FGD)
application, the flue gas is sprayed with a liquid containing
substances that bind compounds (sulfur) in the gas. Thereafter,
Munters’ mist eliminators remove the liquid droplets in which
the compounds have been absorbed.
Customers and market
The total market that HumiCool can address with the
current product portfolio has an estimated annual volume
of about SEK 18 billion. Munters’market share is about 10
percent, but in the product areas cooling pads and fans for
livestock enclosures and flue-gas cleaning, the market share
is significantly higher.
The AgHort business area accounts for about 44 percent
of sales within HumiCool. The defined global market is
estimated at about SEK 6.5 billion. The business area is the
world leader in energy-efficient climate control for buildings
primarily intended for poultry and livestock breeding. Munters
supplies its systems both to distributors, manufacturers
of enclosures for livestock breeding and horticulture and
directly to breeders and farmers.
Some components are also sold to other system integrators.
Together, this customer segment dominates sales. In
warm climates, cooling of indoor air is required in livestock
breeding to achieve satisfactory productivity. For customers
in the AgHort sector, cost efficiency and productivity are
decisive factors.
Cost-effective cooling
Munters’ evaporative systems provide the most cost-effective
cooling, compared with other technologies. Demand is
primarily driven by consumption trends for chicken and
pork, but technical development within livestock breeding is
toward increasingly advanced and more large-scale production.
Another important segment in AgHort are systems for
greenhouses, where the countries in southern Europe are the
most important markets.
The largest markets are the US, Eastern Europe, the Middle
East and Italy. Major customers include such companies as
Dutchman in Europe and Hog Slat in the US. Competitors
are mainly local players with relatively small-scale production,
although there are also larger players, such as GSI and CTB
in the US.

HumiCool division
23
At Thorupgaard, breeding pigs is high tech
Each year, more than 25 million pigs are raised in
Denmark, making the country one of the world’s largest
producers and exporters of pork. More than 85 percent
of pork products are exported, corresponding to slightly
more than 5 percent of Denmark’s total exports. Breeding
of pigs takes place both on a large scale and in smaller
family-owned farms. One of Denmark’s more than 7,800
pig farms is Thorupgaard, which is owned by Espen
Dollerup and located in northern Jylland, where the climate
is characterized by both mild winters and summers.
Specialized industry
Modern pig breeding is now a highly specialized industry.
Insemination and delivery of piglets often takes place separately
from the raising of piglets. Thorupgaard specializes
in breeder pigs, meaning that piglets are transported to
other farms where they are raised. The facility consists of
three connected buildings. The sows are moved from one
building to another as the gestation period progresses.
During the entire process, it is of the greatest importance
that the climate is optimal during each phase so that the
sows will produce as many piglets as possible. The climate
is also very important after gestation. Although newly born
piglets are very well-developed behaviorally, they are very
immature on the other hand in terms of immune defenses
and temperature.
Optimal indoor climate
Espen Dollerup contacted Munters, whose experts surveyed
all parts of the facility. One of the challenges in this special
case was to be able to control the air flow over a limited
surface, thus preventing drafts on the sows and newly born
piglets. Furthermore, the climate system should prevent the
warm and humid air that is generated from the pigs from remaining
in the facility, since it could provide a breeding ground
for infections and mold formation. A third challenge were the
stringent requirements on ventilation to efficiently remove
carbon dioxide, ammonia and foul-smelling substances from
the air evacuated from the buildings.
By taking advantage of the HumiCool division’s broad
product range, Munters was able to use a range of installations
in creating a unique and optimal indoor climate for each of
Thorupgaard’s three different buildings, all with unique requirements
specifications. Today, Espen Dollerup can monitor the
indoor climate in every part of the farm on a central computer,
while also being able to make adjustments without needing to
walk around the facility every day.
Munters Annual Report 2008

24
HumiCool division
Mist Elimination accounted for about 28 percent of Humi-
Cool’s sales in 2008. The defined global market is estimated
at about SEK 2.5 billion. The Mist Elimination business area
is the global market leader in energy-efficient mechanical gas
cleaning and separation of gas and liquids. The dominant
customer segment consists of system suppliers for cleaning
systems for coal-fired power plants, where Munters’ mist
eliminators are used in the cleaning process for emissions.
Within the power industry, rising prices for natural gas
and oil over the long term will probably result in increased
demand for energy from coal-fired power plants.
More stringent environmental requirements
The increasingly stringent environmental requirements in
China mean that the fast-growing coal-based power industry
needs effective solutions for reducing hazardous emissions.
Demand is also expected to increase in the US over time as
a result of more stringent environmental requirements and
a desire to reduce dependence on imported oil. The political
uncertainty and the introduction of new laws relating to
emission rights, however, have temporarily stopped construction
of new FGD plants. The most important customers are
system suppliers for coal-fired power plants. Another significant
customer segment is the process industry. Competitors
include Koch, Peerless and RPT.
Correct humidity solved packaging
problems for Absolut Vodka
The V&S Group, which during the summer of 2008 was
purchased by the French spirits giant Pernod Ricard, is
one of the leading manufacturers and distributors of liquor
in northern Europe. The acquisition of the previously stateowned
V&S meant that Pernod Ricard took over the role
as the world’s largest alcoholic beverages company ahead
of the UK’s Diageo. As a subsidiary to Pernod Ricard, V&S
has a large number of brands and sales in some 125 markets.
The Absolut Vodka brand is ranked as the world’s
fourth largest liquor brand in the premium segment.
Problems in the packaging hall
One of the Swedish production plants is in Åhus in southern
Sweden. During the winter, V&S had major problems
with the packaging process due to the relative humidity in
the packaging hall. The dry air resulted in changes in the
shape of the cartons to be used in the boxes. The packaging
machine is very sensitive to changes in form, which
resulted in excessive carton waste.
Munters’ evaporative humidifier solved the problem
Munters’ experts installed an evaporative humidifier with
continuous regulation in the ventilation system. The installed
humidifier is very energy-efficient and therefore has low operating
costs. From the previously level of 15 to 20 percent,
humidity has now been increased to 50 percent. This means
that problems with deformed cartons and static electricity
were eliminated, while carton waste has been minimized.

HumiCool division
25
Cooling systems for all climates
The HVAC/GTEC business area accounts for 28 percent of
the division’s sales. The total defined global market for the
business area is estimated at about SEK 9 billion. Within the
HVAC segment, sales consist mainly of components to manufacturers
of evaporative cooling systems for homes, commercial
and industrial premises in warm and dry climates, such
as Australia and the southwestern US. Mobile heaters are
primarily sold in the European market. A small but growing
application are systems for pre-cooling air-cooled condensers.
HumiCool is the market leader, and competitors are often
local or specialized manufacturers. The most important customers
for heaters are distributors such as Vneshtechkontrakt
in Russia, Clarke International in the UK and Kroll GmbH
in Germany. Competitors include BM2 and DESA.
Component customers include Climate Technologies in
Australia and Coiltech in Sweden for industrial pre-cooling.
The GTEX application offers a cooling system for the intake
air to gas turbines, which increases the efficiency of the
turbine and produces more energy per cubic meter of gas.
Although traditional technology still dominates the market,
demand for the Munters cooling system is expected to gradually
increase in pace with rising energy costs and increased
use of gas as a source of energy. Customer are primarily suppliers
of gas turbines, such as General Electric and Siemens.
One example of a competitor is Mee Industries in the US.
Development during the year
The various business areas within HumiCool developed in
different ways during the year. The GTEC application developed
well during the year with favorable demand in both
Europe and the US.
The largest business area, AgHort, showed favorable growth
over the first three quarters, with the US as an exception, but
some weakening was noted during the third quarter. During the
fourth quarter, the effects of the financial crisis also reached the
AgHort segment, resulting in a rapid decline in demand.
Within Mist Elimination, order intake remained low as a
result of the uncertainty prevailing in the US with regard to
construction of FGD systems. After more than six months of
uncertainty surrounding the Clean Air Act, what is called the
CAIR rule was declared invalid in late-summer by a federal
court in the US. This rule regulated trading in emission rights.
Because trading of emission rights was one method of financing
investments, order intake declined dramatically. Sales of
mobile heaters in the HVAC business area were negatively
affected by the short and mild winter season in 2007/2008.
Sharply weakened demand from end-customers, accelerated by
turmoil in the credit markets, resulted in distributors of heaters
refraining from building up inventory levels.
During the fourth quarter, production of GLASdek® in
Tobo, Sweden closed as a result of consolidation of production
to Mexico.
During the year, a major HVAC customer in the US declared
bankruptcy, since it was unable to renew its loans due to
the financial crisis. This resulted in non-recurring costs of
SEK 10 M.
In China, the market developed according to expectations,
and the division increased its presence with more
products and larger production facilities to meet the expected
increase in demand over the coming years. The expanded
production capacity provides significant cost advantages not
only in China, but also increases Munters’ presence in the
entire Asian market.
Strategy
• Strengthen position in the value chain by expanding the
product portfolio, application know-how and logistics
• Develop energy-efficient products and systems based on
core technologies and components
• Selective geographic expansion with an emphasis on Asia,
South America and Eastern Europe
• Create long-term profitable growth through rationalization
of the production structure and an increased share of
production in low-cost countries.
Focus in 2009
In parallel with continued adjustment of the cost structure
to market conditions, work will continue to develop the
division’s business areas. The development plan primarily
includes organic growth, although new acquisitions will be
sought that broaden the existing product offering within
energy-efficient climate control. Munters is also focusing
on increasing the share of solution-oriented offerings and
expanding geographically.
In addition, Munters will continue the consolidation of
global operations with the primary objective of creating a flexible
and cost-effective logistics organization and production
apparatus. In part, this will mean relocating additional production
to China and Mexico to strengthen the market presence
in Asia and North America, but also to reduce cost levels.
Munters Annual Report 2008

26 Moisture Control Services (MCS) division

Moisture Control Services (MCS) division
27
“During 2009, major changes will take place in how we work
within MCS. We will become even better at understanding
the needs of our selected customer segments and more
effective in how employees work in the field. The focus is on
the gross margin, and we will leave markets in which we are
not profitable to focus on growth in markets that have the
best potential. We will continue work to gradually introduce
professional key account management, improved processes
and work methods for increased productivity and the introduction
of a mobile IT system.”
Morten Andreasen, Division President
Developments during 2008
• Continued favorable order intake and sales in most
markets
• Underlying earnings on par with preceding year
• Non-recurring costs of SEK 100 M, of which SEK 55 M
in MEP 2
• Field.Link introduced in five countries during the
fourth quarter
• Ongoing efficiency measures due to the launch
of Field.Link.
The MCS division experienced favorable growth throughout the
year. Strong earnings were noted, particularly in US operations,
where the hurricane season and other weather-related events
KEY DATA 2008
resulted in good business volumes. In large parts of Europe, market
shares continued to increase. Earnings were affected, however, by
continued inflationary pressure in salaries and fuel, although some
relief was noted toward the end of the year. The trend in which
insurance companies increasingly sign framework agreements
with the major restoration companies continued. The MCS division
signed SEK M two framework agreements during the second half of SEK the M
year 3,000with insurance companies in the US and Australia. In addition, 300
the global partnership with AXA was expanded with a new contract
2,500
250
in the UK. Investments within the framework of the MEP 2 program
amounted 2,000 to SEK 55 M. Non-recurring costs were charged against 200
earnings in an amount of SEK 45 M, primarily attributable to preparations
for the phase out of certain operations, closure of operations
1,500
150
in 1,000 New Zealand and three depots in Australia and the merger of 100
the French and Belgian business units. These costs also included
preparations 500 for the phasing out of certain operations.
50
0
2003
2004
2005
2006
2007
2008
0
3 000
2 500
2 000
1 500
1 000
500
Adjusted
2008 2007 Change, % change, % 1
Order intake, SEK M 2,770 2,630 5 5
Net sales, SEK M 2,809 2,624 7 7
Operating earnings
(EBITA), SEK M
48 129 –63
Operating margin, % 1.7 4.9
Return on operating
capital, % 5.5 15.5
Capital turnover rate,
multiple 3.2 3.2
No. of employees, Dec 31 1,944 1,918 1
No. of service depots 301 321
1
Preceding year translated to this year’s exchange rates and adjusted for acquisitions.
SEK M
SEK M
3,000
300
2,500
250
2,000
200
1,500
150
1,000
100
500
50
0
0
2003 2004 2005 2006 2007 2008
Order intake Net sales Operating earnings
SEK M
SEK M
3,000
300
2,500
250
0
3000
2500
2000
1500
1000
500
0
3000
Share of consolidated
Net sales by geographic Share of consolidated 2,000
Customer segments
Share of Group employees 200
net sales
region
operating earnings
1,500
150
43% Asia 7%
Americas 14%
12%
1,000
Other 3%
Temporary
47%
100
500
climate
control 11%
50
Recon-
Europe 79%
struction 18%
0
Fire damage
0
2003 restoration 2004 22% 2005
Water damage
restoration 46%
2006 2007 2008
2500
2000
1500
1000
500
0
Munters Annual Report 2008

28
Moisture Control Services (MCS) division
World leader in property damage
restoration after water and fire damage
The Moisture Control Services (MCS) division is the world leader in restoration after
water and fire damage. MCS is enhancing its strong market position through a unique
ability to partner with major players, such as insurance companies and large property
managers. The division also offers temporary humidity and temperature control,
primarily in the property and construction sectors.
Services and offering
The MCS division works with two main segments. The largest
area of operations is restoration following water, humidity
and fire damage, which accounts for 86 percent of sales. Leasing
of equipment for temporary humidity and temperature
control, in part for the construction industry, accounts for 11
percent of the division’s sales. Other services that the division
provides are leak detection and minor renovation services.
Operations are conducted from about 300 depots in 20
countries and are adapted to the prerequisites of each local
market. Being able to take advantage of joint concepts, work
methods and technical aids is an important success factor
within MCS. Munters’ competitive advantages include high
availability, rapid response times and modern technology,
which together ensure more rapid and cost-efficient restoration.
Munters’ methods for damage restoration – drying
instead of demolition and rebuilding – also result in significant
environmental gains.
MCS offers a total undertaking and often acts as project
manager on behalf of the insurance companies, for example,
by coordinating other sub-contractors employed at the site of
damage. The technology and equipment employed is selected
to meet high demands and includes high-capacity dehumidifiers,
fans and heaters that are designed for effective logistics
and sound ergonomics.
A smaller but significant and equally volatile part of the
MCS division’s business is restoration of water damage after
hurricanes and floods. In the markets in which these weather
phenomena are frequent occurrences, MCS has an organization
that can respond quickly and which has extensive experience
of handling such catastrophic situations.
Temporary climate control
MCS also offers services for temporary humidity and temperature
control for the construction industry, for example.
Effective drying of concrete and other construction materials
reduces completion time and weather dependencies for construction
projects. In addition, quality is secured and the risk
of guarantee problems is reduced for the customer. MCS also
offers climate control to prevent corrosion on cleaned steel
surfaces, such as those in shipyards. The petrochemical industry
may also need temporary dehumidification in such applications
as construction and maintenance work on pipelines and
in cisterns. Companies working with painting and surface
finishing are similarly dependent on humidity control to guarantee
the finish and quality of coatings and lacquering.
Preventative damage control is an area that is increasing in
importance for MCS. This includes such services as measuring
heat leakage in buildings, thermographic detection of
water leakage in water pipes and exterior roofs, inspection of
electrical wiring to prevent the occurrence of fire and consulting
assignments intended to increase energy efficiency
in large buildings. Today such services account for a small
part of Munters’ sales, but the favorable trend in recent years
motivates MCS to view this segment as a prioritized area.
Customers and markets
The global market for restoration after water and fire damage
is estimated at about SEK 35 billion. The MCS division’s
market share within this segment is estimated at about 7 percent.
The total market for temporary humidity and temperature
control is estimated at slightly more than SEK 5 billion,
of which MCS has a share of about 7 percent. Underlying
growth is stable and is considered to be on par with GDP
growth. However, demand can be influenced strongly from
year to year by major assignments in conjunction with various
types of natural catastrophes.
The division’s customers are primarily insurance companies,
but government authorities and private organizations are
also important customer groups.
Fragmented industry
Both the insurance industry and the damage restoration
industry have traditionally been very fragmented, and more
than half of all assignments have been awarded to small, local
players. Water and fire damage restoration is still in large
part a local business. However, the consolidation taking place
within the insurance industry has had the result that large
insurance companies wish to simplify and increase the efficiency
of the procurement process and handling of damage.

Moisture Control Services (MCS) division
29
They require a comprehensive range of services that smaller
local damage restoration companies can seldom offer.
This has had the result that an increasing proportion of
business is based on national, and in some cases international,
framework agreements that have been negotiated centrally
and at fixed prices. The trend towards framework agreements
has progressed the furthest in the UK and has been introduced
in several markets in recent years. This trend favors
Munters, since MCS is one of the few damage restoration
companies working with a global organizational structure.
With a well-developed system for key account management,
Munters can take advantage of this trend. Munters estimates
that framework agreements over time will account for about
45 percent of sales within MCS, compared with 40 percent
during 2008. During the year, some ten new framework
agreements were signed in Europe, the US and Australia.
MCS has a large part of its operations in Europe, where
the Nordic market accounts for a significant portion of sales.
Today the division has considerable growth potential in the
US and above all the Asian market and is well-prepared to
increase its presence in these regions. Munters’ ambition is
to grow in the US with a broader service offering. Expansion
will take place primarily organically, but over time, selective
acquisitions are possible.
Mobile IT for rapid and efficient damage restoration
Assignments within MCS are numerous, while the value of
each assignment is usually relatively small. This creates opportunities
for economies of scale and rationalization. The MCS
division’s ambition is to greatly simplify and improve daily
communication both internally between damage technicians
and administrators, but also externally with customers in
insurance cases. In addition to reducing the time devoted to
administration of various projects for such tasks as filling in
forms, damage reports and action plans, more efficient work
methods can reduce the number of visits to damage sites and
create clearer documentation. As a result, a mobile IT system
called Field.Link was launched in large parts of the organization
during 2008. Experience from the UK market where
the system has been in use for four years shows substantial
potential for reducing costs while improving customer services,
primarily through clearer online information flows and more
rapid processing and service to key customers.
Another prioritized area within MCS is work with key
account management. This means consolidating contacts with
the leading insurance companies through systematic work
processes and clear information flows that make it easier for
both Munters and the customer to follow project progress.
Development during the year
Organic growth during 2008 continued to show a positive
trend, and MCS won additional market shares. The aftermath
of hurricane Ike resulted in the most extensive restoration
effort in the US since hurricane Katrina in 2005.
Flooding in Iowa in the summer of 2008
After several days of heavy rain in June 2008, the situation
was critical in the eastern and southeastern parts of
the state of Iowa in the US. The many rivers that branch
here and cover large parts of the state threatened to
overflow. Just 15 years earlier, a large flood had caused
tremendous damage, and when the flood dams on the
Cedar River gave way on June 12, catastrophe was
once again upon them. While Iowa City did not suffer as
severely as was feared, the destruction in Cedar Rapids
was very extensive. At one point, virtually the entire city
center comprising more than 1,000 blocks was under
water, and extensive property damage was reported.
President George W. Bush arrived at the disaster area
with Air Force One on June 20 to inspect the damage
with his own eyes. In addition to evacuation of more than
20,000 Cedar Rapids residents by the authorities, flooding
in the area was estimated to have caused damage
for several billion dollars.
Munters’ service technicians participated in the
clean-up from the start and were responsible for 44
major restoration projects, including police stations, fire
stations, libraries and other large public buildings over
the entire disaster area. As is often the case in this type
of disaster work, employees in some cases worked for
weeks on end, and the strain on the entire organization
was substantial. All assignments were completed in a
commendable manner, and the Munters employees
who took part in the work have every reason to feel
proud of their efforts.
Munters Annual Report 2008

30
Moisture Control Services (MCS) division
The division’s strategy is to achieve strong growth in basic
operations in the region and reduce the relative dependence
on catastrophic damage. The gross margin declined during
the year as a result of price pressures on several services.
During 2008, a new structure with clear delegation of
responsibility was introduced in the organization whereby the
number of regional managers was reduced from six to three
at the same time as four function managers were appointed.
In addition, a person was employed to develop operations
globally for leasing equipment for temporary moisture and
temperature control.
Efficiency was increased in the organization through
a reduction by 12 depots during the fourth quarter and a
merger of operations in France and Belgium. In addition,
activity has been reduced in less profitable markets, with
Australia as one example. MCS has decided to leave New
Zealand due to insufficient profitability and limited potential.
The phasing out of some operations now in progress also
negatively affected earnings.
Successful launch
The launch of Field.Link within the MEP 2 program was
implemented in a successful manner, and the system was well
received by our own personnel and important customer groups.
This system is unique in the industry and gives MCS the ability
to increase its field productivity and centralize administration,
resulting in lower costs and higher quality. The system is
currently used by about 1,000 field technicians, corresponding
to about 80 percent of the user potential. During 2009, the
system will be introduced in the remaining countries.
The other project within MEP 2 addressed accounts receivable.
This is an area in which MCS has had problems for a
Munters leaves it cold
In an assignment in Bergschenhoek in the Netherlands,
Munters recently had an opportunity to demonstrate the
MCS division’s broad expertise in difficult restoration
projects. After a major fire in a distribution center, there
was major smoke damage in an area that included a 5,000
m 2 frozen storage area. The walls were covered with soot.
Although cleaning such a large area would not normally
have been a problem, cleaning had to take place under
extremely cold conditions.
Successful restoration
Inside the freezer hall, the temperature had been maintained
at a constant –24°C for the past 20 years, and it was
extremely important that the temperature remained at the
right level. If Munters defrosted the cooling cells, it could result
in serious structural damage to the cells. However, Munters’ experts
confirmed that an increase in temperature of five degrees
to –19°C was sufficient to be able to successfully complete
the cleaning without compromising the function of the cooling
media. Before cleaning could begin, the Munters THC team
conducted an extensive study of moisture levels on the freezer
hall’s floor. It was of the utmost importance that all moisture
was eliminated, since hidden moisture in the floor could result
in cracks in the floor when the temperature was lowered again
after completion of cleaning. The entire restoration project was
performed very successfully. Although Munters did not submit
the lowest bid for the assignment, the customer was willing to
pay a premium to ensure that the freezer hall could be taken into
operation again at the specified time and with retained function.

Moisture Control Services (MCS) division
31
long time. The new global credit policy is now much stricter,
and all processes related to accounts receivable have been
significantly improved. The review of all accounts receivable
unfortunately resulted in the need to allocate substantial
reserves, but the “clean-up” is now fully completed and work
methods in this area have changed radically. This work will
result in better utilization of operating capital and significantly
reduce the risk of additional credit losses.
Strategy
Management has defined ten strategic initiatives that will be
implemented in the entire organization during 2009.
Market
• Increased focus on four selected customer segments: insurance
companies, property managers, public properties and
industry with dedicated sales representatives who create
deeper understanding or customer requirements
• Service mix – the service range will be reviewed and improved
based on relevance, profitability and proactiveness
• Critical mass – each country must be able to show an established
critical mass with respect to volume and returns. Otherwise
measures such as mergers or divestments will be taken.
Operative initiatives
• All data systems within MCS will be integrated to facilitate
information exchange, process control and decision making
• The number of depots will be reduced, and each country
will instead have a central administrative and logistics function
that will result in more efficient resource utilization of
both equipment and personnel
• Development of systems for benchmarking of damage
restoration processes, followed by the introduction of best
practices in the entire organization
• Introduction of Field.Link in the remaining countries.
Financial initiative
• Increased focus on capital turnover rate has resulted in a strict
credit policy being implemented in the entire organization.
Folksam names Munters as main supplier
Karl-Eric Larsson is manager for the Construction
Technology Claims department at the Folksam insurance
company. He relates here what was the basis for
selecting Munters as the business partner for inspection
and handling of water and fire damage.
“At Folksam, we work constantly to improve our
claims settlement process. When damage has occurred,
we must be able to offer our policyholders fast
high-quality handling of their claims.
“Just as Folksam, Munters places great emphasis on
process improvement, and the investment in the mobile
IT system that Munters is making supports the ideas
and requirements that we have,” says Karl-Eric Larsson.
Quick overview
“The benefits that Folksam sees with this technology are
that orders can be placed easily, while Munters technicians
in the field can give Folksam’s claims adjusters a
quick overview of the extent of the damage. Supported
by this information, Folksam in turn can give policyholders
more accurate information regarding the extent of
the damage and the estimated time for repairs.
“The insurance sector is very competitive, and
today, both we at Folksam and our business partners
must be at the forefront even when it comes to technical
developments. Against this background, it was a
natural choice to select Munters as the main supplier
for inspection and handling of water and fire damage,”
concludes Karl-Eric Larsson.
Personnel initiatives
• A more flexible organization will be created with different
forms of employment in which continued training and
multiple skills will be prioritized
• Performance-oriented culture with structured goals, feedback
and compensation planning for management positions.
Focus in 2009
During 2009, work will continue to improve the division’s
profitability and tied-up capital and to deliver results within
the strategic initiatives. MCS intends to create a scalable
business model based on successful and cost-efficient routines
and to implement standardized work processes in the entire
organization.
Furthermore, work will continue to increase the efficiency of
logistics within damage restoration operations. The first step
will be to introduce a single comprehensive customer service
function in each country that will have an overall role in distribution
of personnel and equipment to various assignments.
This logistics structure is already in place in the UK, where
experience has been very positive. As a result of this restructuring,
the number of small depots will be reduced.
The division will also devote considerable effort to developing
and strengthening work with key customers in the four
prioritized customer segments. Work with key account sales is
expected to result in continued increases in the proportion of
framework agreements in total sales and to increased market
share. During 2009, MCS also has as its goal to grow in the
area of equipment leasing for temporary moisture and temperature
control, particularly in the European market.
Munters Annual Report 2008

32 Risks and risk management
Risks and risk management
Risk management is an important process in the operational management of the Munters
Group. In addition to analyzing the risks that Munters faces and evaluating them, it is
important to reduce the significant risks through continuous preventive measures. This
involves the type of risks that could cause serious disturbances in production, and thereby
the Group’s earnings ability, or jeopardize the Company’s financial position.
Risk management
The Group’s risks have been identified, valued and ranked
based on how great an impact they would have on the
Group’s valuation and the risk that they will arise. Some
risks are beyond Munters’ direct control, while others can be
controlled by the Group. Most of the risks are of a strategic
nature, which emphasizes the importance of constantly working
with a clear risk awareness. Work to formulate risk definitions
and action plans is constantly in progress throughout
the entire Group.
Operational risks
Munters is an entrepreneurial company with many small
organizational units. The dependency on key persons is
relatively great, and employee resignations may therefore be
a threat. This applies particularly within MCS and product
development within Dehumidification and HumiCool. A
portion of Munters sales consists of components, products
and equipment that are used in complex customer processes.
Quality and contract obligations can result in warranty
claims. Munters’ expansion within MCS increases its
exposure to the insurance industry. Changes in insurance
products, new supplier relationships and financial problems
in the insurance industry could pose a threat to Munters.
Alternative technologies may constitute a risk. Companies
currently active in air conditioning could establish operations
in Munters’ niches.
The Group’s primary strength is its unique application
and service expertise in humidity control in a global organization
with a strong entrepreneurial spirit. Its weakness is a
relatively diversified business that results in high costs.
Strengths and weaknesses for Munters’ three divisions are
described below under each division.
Dehumidification division
Munters is a pioneer and the world’s leading manufacturer of
desiccant rotors, one of Munters core components, and has a
broad product portfolio in dehumidification. The combination
of cooling and dehumidification is considered to have
substantial future potential.
A strong brand, long market presence, a global marketing
organization with leading application expertise and an
established service organization are other strengths.
High indirect costs for creating market growth, a somewhat
unstructured product portfolio and many small organizational
units are the division’s weaknesses. Competition
consists primarily of smaller local companies.
HumiCool division
Munters has high market shares in selected segments. The
division is characterized by strong brands, technical leadership
and broad application expertise. Weaknesses can be
considered to be the many small organizational units and
dependency on few OEM (Original Equipment Manufacturers)
customers. The division is gradually transitioning from
being a component supplier to a supplier of complete systems.
Competitors are local companies with small-scale production.
Moisture Control Services (MCS) division
Competition comes from both international players, such
as Belfor and ISS Damage Control, and small local contractors.
MCS is the quality and technology leader with a strong
brand and a complete service offering. Broad local presence in
geographically diverse markets is a strength.
The division’s weaknesses consist of volatile revenues and
a relatively fixed cost structure, combined with low barriers to
entry for competitors. Excessively high dependency on fixed
contracts with the insurance industry may also constitute a risk.

Risks and risk management
33
Financial risk management
In its business operations, Munters is exposed to many different
financial risks: market risk (primarily currency and
interest risk), credit risk and liquidity risk. Munters’ management
and control of financial risks are regulated by a policy
established by the Board of Directors.
The tables below show the proportions of foreign currencies
in sales and operating costs and the sensitivity of earnings
for currency fluctuations during 2008.
Currency Proportion of sales, % Proportion of costs, %
EUR 36.4 36.3
USD 31.0 29.6
NOK 7.2 7.3
GBP 5.1 5.0
SEK 5.1 8.6
Other currencies 15.2 13.2
Total 100.0 100.0
Estimated effect on operating earnings
SEK +10% compared with SEK M %
EUR –12.4 –4.0
USD –18.9 –6.1
NOK –1.8 –0.6
GBP –2.4 –0.8
AUD –0.8 –0.2
JPY –1.6 –0.5
For further information regarding financial risks, see Note 3.
Insurable risks
Sound risk management and understanding identify the
areas in which insurance is effective. Insurance protection
is regulated by central guidelines. Several insurance policies
are managed at the Group level to enable coordination
gains. This insurance comprises several different areas, such
as general liability, product liability, property, interruptions,
cargo, crime, Directors and Officers Liability and Employment
Practice Liability.
Legal processes
Munters is involved in a small number of commercial disputes.
None of these disputes is deemed to have any negative
effect on the company’s financial positions or earnings.
The most significant legal processes are attributable to
Munters’ subsidiary in the US. As of December 31, 2008,
the company was named co-respondent in 52 (51) asbestosrelated
cases. To date, none of the plaintiffs have claimed
to have been exposed to any specific Munters product. In
the past few years, Munters Corporation has won four cases
through summary judgments, meaning that these cases are
now closed. Munters Corporation is of the firm opinion that
the remaining claims are unfounded, and it will strongly
dispute every claim. Munters Corporation has protection for
the asbestos-related claims by having taken out several insurance
policies. Under the condition of certain reservations,
the insurance companies have confirmed that, until further
notice, they will pay a significant portion of the defense
expenses.
For a period of time, a product within the Dehumidification
division in the US suffered from a specific component
fault. The reason for the fault was identified during 2008 and
was attributable to a component supplied by a third party.
Munters has initiated legal proceedings against the third
party and is confident that it will be able to obtain compensation
for a large part of the guarantee costs that arose due to
the fault.
Munters does not believe that any of the claims mentioned
above will have any significant negative impact on the Company’s
financial position or operating results.
Munters Annual Report 2008

34
The share and shareholders
The share and shareholders
The Munters share has been listed since October 21, 1997 on the NASDAQ OMX Nordic Exchange
Stockholm. Market capitalization amounted to SEK 2.9 billion on December 31, 2008.
Share capital and number of shares
On December 31, 2008, Munters’ share capital amounted to
SEK 131,250 M distributed among 75,000,000 shares, each with
a par value of SEK 1.75. The company has one class of stock.
Each share carries one vote without restrictions at the Annual
General Meeting. All shares carry equal rights to the company’s
assets and earnings. There are no restrictions on transfer of
shares according to law or the company’s Articles of Association.
In 2007, a 4:1 share split was implemented with automatic
redemption of every fourth share and an increase in the share
capital through a non-cash issue.
Ownership structure
As of year-end, Munters had 5,160 shareholders (5,101). The
ten largest shareholders control 66 percent (60) of the voting
rights. The proportion of shares owned by Swedish institutional
investors corresponded to 46 percent (49), while foreign
investors held 26 percent (25) of the capital.
Shareholders on December 31, 2008*
No. of shares Capital, % Votes, %
Investment AB Latour 10,950,000 14.6 14.8
Industrivärden AB 10,950,000 14.6 14.8
AFA Försäkring 5,622,637 7.5 7.6
Swedbank Robur funds 4,486,954 6.0 6.1
Nordea funds 4,403,139 5.9 6.0
Aviva Plc 3,761,305 5.0 5.1
State of New Jersey Pension Fund 3,600,000 4.8 4.9
Fourth AP fund 2,631,000 3.5 3.6
SHB/SPP funds 1,805,969 2.4 2.4
AMF Pension 1,400,000 1.9 1.9
Total, ten largest shareholders 49,611,004 66.1 67.0
Other owners 24,322,046 32.5 33.0
Outstanding shares 73,933,050 98.6 100.0
Treasury stock 1,066,950 1.4 –
Total 75,000,000 100.0 –
*SIS Ownership Data Corp
Distribution of shares on December 31, 2008
Shareholding No. of owners No. of shares Owners, %
1–500 2,226 457,248 43.1
501–5,000 2,582 3,378,584 50.0
5,001–50,000 243 3,443,724 4.7
50,001– 109 67,720,444 2.1
Total 5,160 75,000,000 100.0
Trading volume
During 2008, 36.20 million Munters shares (35.72) were
traded with a total value of SEK 2,058 M (3,314). The average
share price during the year was SEK 56.05 (92.24). The
highest price paid during the period was SEK 77.00 on February
4. The lowest price paid was SEK 27.60 on December 4.
The beta value is a relative measure of the risk in the share
measured as its correlation with the market index over the
past 48 months. On December 31, 2007, the Munters share
had a beta value of 0.63 (0.92), meaning that it had moved 63
percent (92) relative to the index. On December 30, 2008, the
share price was SEK 38.40 (76.75), corresponding to a decline
of 50 percent (27) during the year. During the same period,
the OMX Stockholm index fell by 42 percent (6).
Dividend policy
The Board of Directors’ intention is to apply a dividend
policy according to which the dividend level is adjusted to
Munters’ earnings level, financial position and other factors
that the Board of Directors considers relevant. The annual
dividend shall correspond to approximately half of the
Group’s average net profit measured over a period of several
years. The dividends over the years 2006 and 2007 and the
proposed regular dividend for 2008 correspond to 43 percent
of the average earnings for these three years.
Dividend
The dividends for the years 2006 and 2007 and the proposed
regular dividend for 2008 correspond to 43 percent of the average
earnings for these three years. For the 2008 fiscal year, the
Board of Directors proposes that no dividend be paid.

The share and shareholders
35
Key figures per share 1 2008 2007 2006 2005 2004
Earnings per share, SEK 2.21 4.49 4.40 3.39 2.74
Earnings per share after
dilution, SEK 2.21 4.49 4.40 3.39 2.73
Average no. of outstanding
shares, 000s 73,933 73,898 73,749 73,614 73,134
No. of outstanding shares
on closing date, 000s 73,933 73,933 73,785 73,743 73,134
Treasury stock, 000s 1,067 1,067 1,215 1,257 1,866
Cash flow from operations
per share, SEK 4.44 5.34 7.19 4.16 2.86
Operating cash flow per
share, SEK 2.39 2.56 5.08 2.46 1.66
Equity per share, SEK 4 17.28 16.16 20.33 19.42 15.65
Equity per share after
dilution, SEK 17.28 16.16 20.33 19.45 15.63
Dividend per share, SEK 0.00 2 2.50 2.25 1.83 1.33
Share price on closing
date, SEK 38.40 76.75 105.67 73.00 66.67
Market capitalization on
closing date, SEK M 3 2,880 5,756 7,925 5,475 5,000
P/E ratio, multiple 17.4 17.1 24.0 21.5 24.3
Return on equity, % 4 13.8 25.7 22.5 19.3 17.8
Treasury shares
No repurchases or sales of treasury stock took place during
the year. See also Note 19.
Incentives programs
Outstanding incentives programs are presented in Note 29.
Analysts who continually monitor Munters
The market analysts listed below monitor Munters continuously.
It should be noted that the opinions and forecasts
regarding Munters that they express are their own and thus not
Munters’ own or the opinions and forecasts of its management.
Company Analyst Telephone
Carnegie Agnieszka Kaziow +46 8 676 85 86
Danske Bank Carl Gustafsson +46 8 568 805 23
Enskilda Securities Anders Eriksson +46 8 522 296 39
Handelsbanken Capital Jon Hyltner +46 8 701 12 75
Kaupthing Bank Carl-Johan Blomqvist +46 8 791 48 55
Swedbank Capital
Markets & Securities Johan Dahl +46 8 585 937 04
1
Historical figures for the share were adjusted for the share split, redemption and
non-cash issue implemented in 2007.
2
According
to the Board of Directors’ proposal.
3
The market capitalization is based on all shares, including treasury stock.
4
Effective January 1, 2006, Munters accounting is in accordance with the changes
implemented in IAS 19, actuarial gains and losses are now recognized in equity.
Key figures were recalculated according to those changes.
Trend in 2008
80
70
60
50
© NASDAQ OMX
Trend since listing in 1997
120
100
80
60
© NASDAQ OMX
40
30
20
Jan Feb Mar Apr Maj Jun Jul Aug Sep Okt Nov Dec
4,000
3,000
2,000
1,000
0
40
20
15
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008
14,000
12,000
10,000
8,000
6,000
4,000
2,000
0
Share OMX Stockholm_PI Total shares traded (000s)
Carnegie Small Cap Index
Share OMX Stockholm_PI Total shares traded (000s)
Carnegie Small Cap Index
Per share data
Equity
Liquidity
Dividend per share
SEK SEK % SEK M multiple %
6
30
30 18
1.2 60
5
25
25 15
1.0 50
6
4
20
20 12
0.8 40
5
3
15
15 9
0.6 30
4
2
10
10 6
0.4 20
3
1
5
5 3
0.2 10
2
0
0
0 0
0.0 0
1
04 05 06 07 08 04 05 06 07 08 04 05 06 07 08 04 05 06 07 08 0
Earnings
Operating cash flow
Dividend
Equity, SEK per share
Return on equity
(right-hand scale)
Average turnover per trading day
Turnover rate (right-hand scale)
Actual dividend
Target
Munters Annual Report 2008
04 05 06
6
30
18
1,2
6
60
5
25
15
1,0
5
50
4
20
12
0,8
4
40

36
Corporate governance report
Corporate governance report
Munters AB (publ) applies the applicable rules contained in the Swedish Code of Corporate Governance
(“the Code”). In accordance therewith, the Company has prepared this corporate governance report.
Division of responsibility
Responsibility for management and control of the Group is
divided among the shareholders at the Annual General Meeting,
the Board of Directors and its appointed committees and
the President, in accordance with the Swedish Companies Act,
other legislation and regulations, prevailing rules for exchangelisted
companies, the Company’s Articles of Association and
the Board of Directors’ internal control instruments.
Shareholders
On December 31, 2008, the Company had 5,160 shareholders.
The proportion of the share capital owned by Swedish
institutions amounted to 46.5 percent. Foreign investors
owned about 25.5 percent of the share capital. The ten largest
owners together had holdings corresponding to 66.1 percent
of the share capital. For further information on ownership on
December 31, 2008, see page 34 of the Annual Report.
Annual General Meeting 2008
The Annual General Meeting is the Group’s highest governing
body. The Annual General Meeting is normally held in
April in Stockholm. The 2008 Annual General Meeting was
held on April 22, 2008. Bengt Kjell was elected Chairman of
the Meeting. The following decisions were taken:
• The Annual General Meeting adopted the Parent Company
income statement and balance sheet, the consolidated
income statement and balance sheet, decided to dispose of
earnings in accordance with the proposed distribution of
earnings resulting in a dividend of SEK 2.50 per share for
the 2007 fiscal year, and discharged the Board of Directors
and the President from liability
• The Annual General Meeting approved decisions in accordance
with the Nominating Committee’s proposal
– that the number of members of the Board of Directors
elected by the Annual General Meeting shall be eight and
that no deputy members shall be elected;
– that fees to the Board of Directors shall be paid in a total
amount of SEK 2,275,000 of which (i) SEK 500,000 to
the Chairman, (ii) SEK 250,000 to each of the Board
members elected by the Annual General Meeting who
is not an employee of the company, (iii) SEK 100,000 to
the Chairman of the Audit Committee and SEK 50,000
to each of the other members and (iv) that SEK 50,000 to
the Chairman of the Compensation Committee and SEK
25,000 to each of the other members;
– that fees shall be paid to the auditors on account;
– that the auditing firm Ernst & Young AB was to be elected
as the Company’s auditors for the period until the 2012
Annnual General Meeting. It was noted that Björn Fernström
was to remain as auditor in charge until the 2009
Annual General Meeting, at which time he will resign as
auditor in charge in accordance with prevailing recommendations
for a maximum assignment period of seven years;
– that Anders Ilstam, Bengt Kjell, Eva-Lotta Kraft, Sören
Mellstig, Jan Svensson and Lars Engström were to be reelected,
that Kenneth Eriksson and Kjell Åkesson were to
be newly elected to the Board of Directors and that Anders
Ilstam was to be Chairman of the Board. It was noted that
the employee organizations had appointed Pia Nordquist
and Kjell Wiberg as members with Tommy Morin and Ulf
Wallén as deputy members of the Board of Directors.
• The Annual General Meeting approved a request from the
Nominating Committee to adjust the Committee’s instructions
in accordance with its proposal
• The Annual General Meeting approved the Board of Directors’
proposal to establish guidelines for compensation to
senior executives
• The Annual General Meeting unanimously approved the
Board of Directors’ proposal to introduce an employee
options program involving transfer of treasury shares
• The Board of Directors unanimously approved the Board of
Directors’ proposal to amend §3 of the Articles of Association
entailing that the Board of Directors’ registered office
shall be in Stockholm Municipality.
Nominating Committee
In accordance with decision by the Annual General Meeting,
the Nominating Committee is to be elected annually through
the Chairman of the Board contacting the company’s four
largest shareholders, in terms of voting rights, based on the
owner information in Euroclear Sweden AB’s (formerly VPC
AB) share register on the last banking day in August each year.
Each of these owners is then entitled appoint a representative to,
jointly with the Chairman, comprise the Nominating Committee
for the period until a new Nominating Committee has been
elected. If a member resigns from the Nominating Committee
before completion of his/her duties, if applicable, a replacement
shall be elected by the same shareholder who elected the
resigning member or, if that shareholder is no longer one of the
four largest shareholders, by the newest shareholder joining
the group. If the ownership structure in the company changes
before the Nominating Committee has completed its work, the
Committee has the right to change its composition in the manner
it deems appropriate. One of the owner representatives in
the Nominating Committee shall be its Chairman.
The Nominating Committee’s assignment is to prepare and
present proposals for the election of the Chairman and other
members of the Board of Directors, Chairman of the Annual
General Meeting, fees and associated matters and, as appropriate,
election of auditors. Information about the Nominating
Committee’s composition shall be published not less than six
months prior to the Annual General Meeting. The members of

Corporate governance report
37
the Nominating Committee may not receive fees, but any costs
in conjunction with their work will be paid by the company
after approval by the Nominating Committee.
Since October 2008, the Nominating Committee includes the
following persons: Anders Mörck (Investment AB Latour),
Carl-Olof By (Industrivärden), Anders Algotsson (AFA
Försäkring), and Jan Andersson (Swedbank Robur Funds).
In addition to the above list, Anders Ilstam, Chairman of the
Board of Munters is also included. The Nominating Committee
will prepare a proposal to the 2009 Annual General
Meeting regarding the Chairman of the Annual General
Meeting, composition of the Board of Directors and Board
fees, as well as election of auditors and their fees. The Nominating
Committee held three meetings during 2008. No
compensation was paid to the Nominating Committee.
Work of the Board of Directors
General – According to the company’s Articles of Association,
the Board of Directors shall consist of four to eight members
elected each year by the Annual General Meeting for the
period until the end of the next Annual General Meeting.
The Articles of Association permit the election of deputies,
but no deputies were elected by the Annual General Meeting.
By law, the employees appoint two members and two deputy
members to the Board of Directors. In 2008, Pia Nordquist
and Kjell Wiberg were appointed as employee representatives
on the Board, with Tommy Morin and Ulf Wallén as deputies.
The Group’s CFO participates in Board meetings as does
the Board’s secretary, who is a lawyer and independent of the
company. Other employees participate in Board meetings as
presenters of special issues or when otherwise deemed appropriate.
The members of the Board of Directors are presented
on page 40 of the Annual Report. The Board of Directors
establishes a written Working Procedure each year that
regulates the Board’s work and the internal distribution of
responsibility, including its committees, decision procedures
within the Board, the order of meetings and the Chairmen’s
duties. The Board of Directors has also issued instructions
for the President and instructions for financial reporting to
the Board. Furthermore, the Board of Directors has adopted
a number of other policies, which are described below under
the heading Policy documents.
The Board of Directors is responsible for the company’s
organization and the administration of its business and in so
doing, must ensure that the organization is appropriate and
dimensioned in such a manner that accounting, capital management
and other financial matters are managed and monitored
in a satisfactory manner. Furthermore, the Board of Directors is
responsible for ensuring that the company has adequate internal
controls and for continuously reviewing the internal control
systems. The Board of Directors is also responsible for developing
and following up the company’s strategies in the form of
plans and goals. The Board of Directors continuously monitors
the work of the President and operative management. Among
the members of the Board of Directors elected by the Annual
General Meeting, there are persons with ties to the company’s
major owners – Industrivärden and Latour – and persons who
are independent of these parties. In accordance with the rules
of the Code and the listing requirements of the OMX Nordic
Exchange Stockholm, seven of the Board members elected by
the Annual General Meeting, excluding the President Lars
Engström, are independent of the company. Of these, five are
independent of the company’s major owners and meet all established
requirements for experience.
Chairman – At the statutory meeting of the Board of Directors
on April 22, 2008, Anders Ilstam was elected Chairman
until the end of the next Annual General Meeting. The Chairman
organizes and leads the Board of Directors work so that it
is conducted in accordance with the Swedish Companies Act,
other laws and regulations, prevailing rules for exchange-listed
companies (including the Code) and the Board’s internal control
instruments. The Chairman follows business development
through regular contact with the President and is responsible
for ensuring that Board members receive sufficient information
and supporting materials for decisions. The Chairman is
responsible for ensuring that the Board of Directors continuously
updates and increases its knowledge of the Company
and in other respects receives the training required to be able
to conduct Board work effectively. In addition, the Chairman
ensures that an annual evaluation is conducted of the Board
of Directors’ work and that this information is provided to
the Nominating Committee. The Chairman represents the
Company in ownership matters.
Work procedures – According to the Work Procedures
currently in effect, the Board of Directors shall meet not less
than five times per year and for one statutory meeting per
year. It shall also be convened at other times when the situation
so demands. During 2008, the Board of Directors held
five ordinary meetings, one statutory meeting and two by
correspondence. Board work during the year was focused on
strategic, financial and accounting issues. All decisions were
taken unanimously. At each Board meeting, the President
reports on the Group’s development.
As evident in the table below, attendance at the year’s
meetings was highly favorable.
Board
meetings
Audit
Committe
Compensation
Committe
Attendance in 2008
Lars Engström 8/8
Kenneth Eriksson 1 6/6
Anders Ilstam 2 8/8 1/1
Bengt Kjell 3 8/8
Eva-Lotta Kraft 3 8/8 4/4
Sören Mellstig 4 7/8 2/2 1/1
Jan Svensson 5 7/8 4/4
Kjell Åkesson 5/6
Sven Ohlsson 6 2/3 1/2
Berthold Lindqvist 6 2/3 1/1
Pia Nordquist 7/8
Ulf Wallén 8/8
Kjell Wiberg 8/8
Tommy Morin 3/3
Total number of meetings 8 4 1
1
Elected to the Board in April 2008.
2
Chairman of the Board and convener of the Compensation Committee.
3
Member of the Compensation Committee since April 2008.
4
Member of the Audit Committee since April 2008.
5
Chairman of the Audit Committee since April 2008.
6
Resigned from the Board in April 2008.
Audit Committee – At the statutory meeting of the Board of
Directors on April 22, 2008, the Board decided to appoint
Jan Svansson (Chairman), Eva-Lotta Kraft and Sören Mellstig
as members of the Audit Committee for the period until
the next statutory Board meeting. The Audit Committee is
charged with preparing issues regarding the procurement of
Munters Annual Report 2008

38 Corporate governance report
Internal controls
Description of how internal controls are organized
Control environment – Effective working procedures on
the part of the Board of Directors are the basis for satisfactory
internal controls. Munters’ Board of Directors has an established
Working Procedure for its work and instructions for the
Board’s committees. One aspect of the Board’s work consists of
formulating and approving the policies that govern the Comauditing
services and audit fees, following up the auditors’
work and internal control systems, monitoring the current
risk situation and the company’s financial reporting and
handling other issues assigned by the Board of Directors. The
Audit Committee’s work is regulated by special instructions
adopted by the Board of Directors as part of its Work Procedures.
During 2008, the Audit Committee held four meetings
at which all members were in attendance. At three of
these meetings, the Audit Committee met with and reviewed
reports from the company’s external auditors.
During 2008, the Board of Directors met with and
received reports from the company’s external auditors. The
auditors’ proposals for various improvements in routines
and internal controls were accepted but did not result in any
special measure from the Board.
Compensation Committee – At the statutory meeting of the
Board of Directors on April 22, 2008, the Board decided to
appoint Anders Ilstam (convener) and Bengt Kjell as members
of the Compensation Committee for the period until the next
statutory meeting. The Compensation Committee is charged
with considering and preparing proposals regarding salaries,
bonuses, pensions, severance pay, options and warrants for
the President and other senior managers who report directly
to the President and for such other similar issues assigned by
the Board of Directors. On assignment from the Board, the
Compensation Committee will present proposals on principles
for compensation and other compensation terms for company
management to be approved by the Annual General Meeting.
The Compensation Committee’s work is regulated by
special instructions adopted by the Board of Directors as part
of its Working Procedures. During 2008, the Compensation
Committee held one meeting at which all members were in
attendance and had regular contact within the Committee in
conjunction with employment and other compensation issues.
Compensation – Fees to the members of the Board of
Directors elected by the Annual General Meeting are decided
by the Annual General Meeting based on the proposal by
the Nominating Committee. For the period from the 2008
Annual General Meeting through the 2009 Annual General
Meeting, the fee paid to the Chairman was SEK 500,000.
Other members elected by the Annual General Meeting,
who are not employees of the company, were paid fees of SEK
250,000. Furthermore, a fee of SEK 100,000 was paid to the
Chairman of the Audit Committee and SEK 50,000 to each
of the other members of the Audit Committee, and fees of
SEK 50,000 to the convener of the Compensation Committee
and SEK 25,000 to the other member were paid. No further
compensation was paid to any Board member.
Reporting and control
The Board of Directors and the Audit Committee supervise
the quality of financial reporting and the company’s internal
control systems and monitor the company’s risk exposure.
This takes place in part through instructions to the President
and the establishment of requirements on the contents of the
reports on financial circumstances that are regularly submitted
to the Board of Directors, as well as through reviews with
management and the auditors. The Board of Directors and the
Audit Committee review and verify the quality of financial
reporting, including the year-end report and the Annual report
and have delegated responsibility to Company management to
verify the contents of press releases containing financial information
and presentation materials used in conjunction with
meetings with the media, owners and financial institutions.
Company management
General – The President leads operations in accordance with
the Swedish Companies Act and within the framework established
by the Board of Directors. In consultation with the
Chairman of the Board of Directors, the President prepares the
information and supporting materials for decisions required
for Board meetings, presents matters for consideration by the
Board and motivates proposals for decision. The President
leads Group management’s work and takes decisions in consultation
with others in management. Group management currently
consists of six persons. Company management conducts
regular business reviews under leadership of the President 12
times each year, often in conjunction with visits to various
Group units. The President and other members of Group management
are presented on page 84 of the Annual Report.
Compensation – At the 2008 Annual General Meeting, the
Chairman of the Board of Directors informed the shareholders
about the principles for compensation to senior executives. Proposed
guidelines are presented on page 45, and the current compensation
levels are presented in Note 28 of the Annual Report.
The proposal for guidelines for the determination of salaries and
other compensation paid to senior executives will be submitted
to the 2008 Annual General Meeting for approval. An employee
stock option program was approved for the years 2007–2008. No
allotment took place, since the targets were not achieved.
Internal audit
The company has a simple legal and operative structure with
established management and internal control systems. The
Board of Directors and the Audit Committee monitor the
company’s assessment of internal controls, in part through
contact with the company’s auditors. For these reasons, the
Board of Directors has elected not to have a dedicated internal
audit function.
Auditors
The 2008 Annual General Meeting elected the auditing firm
Ernst & Young as the company’s auditor for the period up until
the 2012 Annual General Meeting, with Björn Fernström as
auditor in charge up until the 2009 Annual General Meeting,
at which time he will resign as auditor in charge in accordance
with the prevailing recommendation for a maximum assignment
period of seven years. The auditors are presented on page
40 of the Annual Report. The auditors work in accordance
with an audit plan, in which opinions from the Audit Committee
and the Board of Directors were included, and reported
its observations to the Audit Committee and the Board of
Directors, in part during the audit itself and in part in conjunction
with adoption of the 2008 year-end report on February
12, 2009. The auditors also participate in the Annual General
Meeting at which they report on their work and observations.
During the year, the auditors had consulting assignments apart
from auditing, primarily relating to taxes.

Corporate governance report
39
pany’s work with internal controls. Another aspect is creating
prerequisites for an organizational structure with clear roles and
responsibilities that encourage effective management of business
risks. Senior management is responsible for implementing the
guidelines to maintain satisfactory internal controls.
Risk assessment and control activities – Munters’ management
annually presents its view of significant risks for the Board of
Directors’ Audit Committee. The Company’s most important
risks relating to accounting and reporting are revenue recognition,
valuation of accounts receivable and guarantee commitments,
plus the Group’s many small subsidiaries, which lack
critical mass with respect to accounting personnel. To effectively
manage significant risks, Munters has established control
structures that in part consist of an organization, which, from
an international perspective, permits appropriate delegation of
responsibility from the standpoint of control activities in the
work performed on compiling the financial reports. During
2006, the company reviewed its internal control policy and
introduced a formalized process whereby all Group business
units implement a self-assessment of their compliance with the
rules stipulated in the internal control policy. This self assessment
is then reviewed by representatives of Group management
according to a rolling schedule, and by the company’s external
auditors. In the event of discrepancies, improvement plans and
activities are prepared.
Information and communication – Munters’ policies for
internal control are primarily communicated through the
Munters Management Manual and the Munters Financial
Manual. These manuals are updated continuously and are easily
accessible to all concerned personnel via Lotus Notes internal
databases. The Munters Management Manual includes the
Munters Information Policy, which provides guidelines for how
external communication shall take place. The objective of the
policy is to ensure that all information obligations are fulfilled
in a correct and comprehensive manner.
Follow-up – The Board of Directors evaluates business performance
and results each month using an appropriately structured
reporting package containing outcomes, forecasts and
analyses of important key parameters. The Board of Directors
receives regular reports from the meetings held between the
Audit Committee and senior management and the auditors.
The Audit Committee’s work also includes regularly following
up the effectiveness of internal controls. The Committee’s
work also includes evaluation and discussion of key technical
issues relating to accounting and reporting techniques. Furthermore,
the Audit Committee has initiated an annual process
to ensure that appropriate measures are taken to address and
implement recommended measures in regard to deficiencies
that arise in part from internal follow-ups as described above
and in part through the external auditors’ examinations.
Articles of Association
The company’s Articles of Association regulate such matters
as the objective of the company’s operations, the number of
Board members and auditors, how notification of the Annual
General Meeting shall take place, matters to be addressed by
the Annual General Meeting and where the Meeting shall
be held. The Articles of Association currently in effect and
adopted on April 22, 2008 are available on the company’s web
site at www.munters.com, under investor relations/corporate
governance.
Policy documents
In addition to the budget and strategic plan, which are required
and approved by the Board of Directors, Munters has two primary
control systems that specify authority and responsibilities
for the leaders of Munters’ many business units.
Firstly, there is Munters Management Manual, which, in
addition to a number of general policies for the Group’s business
and its employees, contains detailed descriptions of authorization
and responsibility in business management. The following
policies are included in Munters Management Manual.
• Ethical Guidelines – The Group’s ethical guidelines were
formulated with the objective of documenting the Group’s
basic view on ethical issues both within the organization
and externally towards customers and suppliers
• Information Policy – The Group’s information policy is a
document that describes the Group’s general principles for
the dissemination of information
• Insider Policy – The Group’s insider policy regulates the
handling of insider issues and responsibility for these issues
and contains instructions for insiders and others within the
organization regarding how to act in insider-related matters.
• Visual Guidelines – The Group’s Visual Guidelines describe
the manner in which Munters shall be visible in its marketing
and business operations
• Environment Policy – The Group’s environment policy provides
guidelines for environmental work within the Group
• Quality Policy – The Group’s quality policy provides guidelines
for quality work within the Group
• Corporate Social Responsibility – The Group’s CSR policy
summarizes the Company’s views on ethical, environmental
and social responsibility
• Health and Safety Policy – The Group’s health and safety
policy describes the Group’s views on health and safety issues.
Secondly, there is Munters Financial Manual. The Financial
Manual describes the rules and guidelines that apply for
decisions on financial matters, how financial reporting is
organized and what is reported. The accounting instructions
in Munters Financial Manual comply with IFRS standards.
In addition to accounting instructions, the manual contains
the following policies.
• Financial Policy – The Group’s Finance function works
according to the instructions established by the Board of
Directors, which provide a framework for how the Group’s
operations shall be financed and how currency and interest
risks, for example, must be managed
• Internal Control Policy – The internal control policy provides
instructions for maintaining order and control within
the business units.
General policies are reviewed and approved by the Board of
Directors.
The company’s application of the Code
The Code is built on the “comply or explain” principle. This
means that companies applying the Code may deviate from
individual rules but must provide explanations and reasons
for each reported deviation. Munters has not deviated from
the rules of the Code.
Review
This Corporate Governance Report has not been reviewed by
the company’s auditors.
Munters Annual Report 2008

40 Board of Directors and Auditors
1
2
3
4
5
6
7
8
9
10
11
1 Anders Ilstam
Chairman since 2008. Born
1941. Member since 2005.
Background: Commercial
engineer, Vice President
Sandvik AB, President Sandvik
Mining and Construction, CTT
Tools, SKF Tools and several
companies within Beijerinvest
AB. Chairman of Seco Tools
AB, Beijer Electronics AB,
Air Liquide AB and Grimaldi
Industri AB. Board member of
Isaberg Rapid AB.
2 Lars Engström
Member since 2007. Born
1963. President and CEO.
Employed since 2006.
Background: M.Sc. Linköping
Technical University. Various
positions within Atlas Copco
in Sweden and Australia,
most recently as President
of Atlas Copco Underground
Rock Excavation Division.
Board member of Studsvik AB.
Shares held: 43,000. Options
held: 25,000.
3 Eva-Lotta Kraft
Member since 2004. Born
1951. Background: MSc Chem
Eng, MBA. Employed earlier by
AGA and Alfa Laval, Division
Manager and Executive Vice
President at Siemens-Elema
AB, Department Manager FOI
(The Swedish Defense Research
Agency). Board member
of AB Ångpanneföreningen,
Samhall AB and Svolder
AB. Shares held: 4,500.
4 Bengt Kjell
Member since 2003. Born
1954. Background: BSc from
Stockholm School of Economics.
Executive Vice President
of AB Industrivärden. Authorized
Public Accountant, Head
of Corporate Finance Securum,
Senior Partner Navet
AB. Chairman of Kungsleden
AB and Indutrade AB. Board
member of Skanska AB,
Höganäs AB, Pandox AB and
Helsingborgs Dagblad AB.
5 Sören Mellstig
Member since 1997. Born
1951. Background: MSc Econ.
CFO and Executive Vice
President of Incentive, Business
Area Manager Gambro
Renal Products and Executive
Vice President Gambro, CEO
and President of Gambro AB.
Chairman of Aleris AB, Vatus
Medical AB and Textilia AB.
Board member of Trelleborg
AB (publ.), Ferrosan A/S,
PaloDex Oy, Dako A/S and
Rindi Energi AB. Shares held:
20,400.
6 Jan Svensson
Member since 2004. Born
1956. President of Investment
AB Latour. Background: BSc
Econ, the Stockholm School
of Economics, BSc Mech
Eng. President of AB Sigfrid
Stenberg. Chairman of OEM
International AB, Fagerhult AB
and Nederman Holding AB.
Board member of Loomis AB
and Oxeon AB. Shares held:
5,000.
7 Kjell Åkesson
Member since 2008. Born
1949. Background: B.Sc.
Econ. Uppsala University.
President of Lindab International
AB and Bilia AB, Vice
President of Svedala AB,
various positions within ASEA/
ABB. Chairman of Gullbergs
AB. Board member of Inwido
AB, Lindab International AB,
Ballingslöv AB and PEAB Industri
AB. Shares held: 4,600.
8 Kenneth Eriksson
Member since 2008. Born
1944. Chief Operating Officer
of SCA, Background: B.Sc.
Engineering, President of SCA
Forest Products and various
positions within SCA. Board
member of Fastighetsbolaget
Norrporten, Norrlandsfonden,
SCA Forest Products and
subsidiaries.
9 Kjell Wiberg
Member since 2005. Born
1958. Background: Plumber.
Employee representative appointed
by the Swedish Trade
Union Confederation. Shares
held: 100.
10 Ulf Wallén
Member since 2007. Born
1963. Background: Installer.
Employee representative appointed
by the Swedish Trade
Union Confederation.
11 Pia Nordquist
Member since 2004. Born
1973. Background: Order/
production planning, IT Support
for business systems.
Employee representative
appointed by the Swedish
Union of Clerical and Technical
Employees in Industry.
Board secretary
Peter Idsäter, Attorney, born
1960. Partner Mannheimer
Swartling Advokatbyrå AB.
Auditor
Auditing firm Ernst & Young
AB. Auditor since 2002. Auditor
in charge: Björn Fernström.
Authorized Public Accountant.
Born 1950.
Information is as of March 6, 2009.

Munters Annual Report 2008
41

42
Board of Directors’ report
Board of Directors’ report
The Board of Directors and the President of Munters AB (publ), corp. reg. no. 556041-0606,
hereby submit the annual report and the consolidated accounts for the fiscal year 2008.
Information about operations
Munters is a globally leading supplier of energy-efficient
solutions for air treatment and damage control based on its
expertise in technologies for humidity and climate control.
Its business is organized in two product divisions focused on
industrial-process air treatment, comfort-oriented climate control
(DH) and climate control for the AgHort industry (HC)
and a global service organization with a world-leading position
in damage restoration and temporary climate control (MCS).
Customers are found within a number of different sectors,
of which the largest are the insurance, food, pharmaceuticals
and electronics industries. Manufacturing, sales and service
are conducted by slightly more than 4,100 employees in own
companies in more than 30 countries.
The Munters share has been listed on the NASDAQ OMX
Nordic Exchange Stockholm since 1997.
Significant events during the
fiscal year and future development
Group
Munters’ development during the fiscal year was characterized
by a relatively strong first half of the year, which thereafter
changed to a significantly tougher business climate,
due to the general economic recession and the financial crisis
now in progress. An action program, MEP 2 , had already been
launched at the beginning of the year to increase efficiency
in all divisions. The program is based on the principles of
resource-efficient manufacturing, short lead times and high
employee involvement. Within MCS, work was focused on
implementing the mobile IT system Field.Link in five of our
most important markets. The program was concluded in the
month of December.
During the second half of the year, additional measures
were taken to adapt the organization to the prevailing market
prerequisites. These measures further improved Munters’ structure
and competitiveness and are expected to result in positive
effects on profitability when our markets recover again.
There is an increasing awareness relating to energy savings
and environmental conservation. At the same time,
knowledge of the importance of the indoor climate for both
health and production processes is increasing. These trends
favor Munters, which has a service and product portfolio that
meets these needs. Munters’ strategy is to further expand
its product portfolio. This strategy includes complimentary
acquisitions.
The prevailing market conditions mean that the divisions
continue to adapt their respective resources to current business
volumes through efficiency-enhancing measures and personnel
reductions. In recent years, Munters has focused strongly on
profit-enhancing measures. This should have a positive effect on
gross margins when the financial crisis is over and the economy
begins recovering. Although the coming period is characterized
by considerable uncertainty, Munters is convinced that the
Group will emerge strengthened from the current recession.
Dehumidification division
Within the Dehumidification division, the market for dehumidifiers
in the Industrial business area remained strong during
the year, despite signs of weaker market conditions toward the
end of the fourth quarter. Demand in the Commercial business
area was weak during most of the year, particularly in the retail
segment, but recovered during the fourth quarter. The division’s
margins were negatively affected by guarantee costs due
to faulty components from a third party.
Measures within MEP 2 were implemented and completed
during the fourth quarter. A reorganization was implemented
during the second quarter with the objective of taking advantage
of growth opportunities in energy-efficient solutions for
air treatment. Measures to reduce personnel and thus further
lower costs were implemented during the second half of the
year in response to weaker market conditions. The acquisition
of Toussaint Nyssenne was completed during the autumn. The
order backlog was relatively favorable at the end of the year.
HumiCool division
Within the HumiCool division, market growth was strong
for all business areas during the first half of the year with
the exception HVAC, which experienced weak demand for
mobile heaters after a mild winter. After the summer, all
business areas were sharply affected by turmoil in the global
credit markets, which resulted in distributors experiencing
difficulty with short-term financing and thus reducing
their inventories. A dramatic reversal in the AgHort market
became evident in the beginning of the fourth quarter, with
the US market leading the downturn. The driving factor over
the short term was the lack of financing, but a rapid increase
in the price of livestock feed that was not reflected in meat
prices dramatically decreased incentives to invest.
Earnings during the year were affected by a nonrecurring
cost of SEK 10 M as a result of a major US customer in the
HVAC segment entering bankruptcy. To meet the lower market
activity in several segments, adaptation of the workforce
continued, which will be combined with additional changes
in the production structure. The MEP 2 program was implemented,
resulting in a charge against earnings of SEK 22 M.
Work primarily involved the units in Mexico and Germany.
In addition, production shifts from Italy to China and from
Sweden to Mexico were completed.

Board of Directors’ report
43
MCS division
The MCS division reported favorable sales growth during the
year. Very strong sales and operating income were noted in the
US during the second half of the year as a result of weatherrelated
events. In the European market, Munters continued
to capture market share, in part due to new framework agreements
and strengthened partnerships with existing customers.
However, the division’s earnings were affected by continued
inflationary cost pressures with respect to salaries and
fuels, although some relief was noted toward the end of the
year. Costs for the MEP 2 program concluded in December
amounted to SEK 55 M. The program comprised implementation
of the mobile IT system Field.Link and introduction
of sharply improved processing of accounts receivable that
included write-downs of outstanding receivables in line with
the new credit policy for MCS. Nonrecurring costs of SEK 45
M, primarily relating to preparations for the phase-out of certain
operations, were also charged against the year’s earnings.
The long-term consolidation trends with a constantly
increasing proportion of fixed framework agreements continued,
and several new framework agreements were signed during
the second half of the year with major insurance companies
in all regions. In conjunction with the introduction of the
mobile IT system Field.Link in more markets, the number of
depots is being decreased, while certain central functions are
being established in each country. The new business model will
enable productivity to be sharply improved over time.
Significant events after the end of the fiscal year
During the first quarter of 2009, Munters will be implementing
a number of measures within all three divisions to adapt
operations in response to the weaker market conditions.
These measures, which are expected to entail personnel
reductions of about 250 persons, will result in nonrecurring
costs in the order of SEK 30–45 M, which will be charged
against first-quarter earnings. Further information is available
in Note 31, Events after the closing date.
Order intake and net sales
During the year, the Group’s order intake increased by 2 percent
(unchanged after adjustments for currency effects, acquisitions
and disposals of operations) to SEK 6,515 M (6,407). The
Dehumidification and MCS divisions experienced favorable
order growth during the year, while HumiCool’s order intake
declined. The order backlog increased by slightly more than 15
percent and was SEK 1,330 M (1,152) at year-end.
Net sales increased during the year by 5 percent (3 percent
adjusted) to SEK 6,570 M (6,262). The Dehumidification and
MCS divisions increased sales, while HumiCool’s net sales
decreased, particularly during the final quarter of the year.
Gross earnings
Gross earnings declined somewhat to SEK 1,716 M (1,759).
The gross margin fell to 26.1 percent (28.1).
Indirect costs
Sales and administration costs increased by 14 percent to
SEK 1,277 M (1,117), corresponding to 19.4 percent (17.8)
of net sales. Research and development costs amounted to
SEK 85 M (70), corresponding to 1.3 percent (1.1) of net
sales. Development costs in conjunction with customer order
projects are reported as a cost in ongoing operations.
Earnings
EBIT decreased by 36 percent to SEK 362 M (566). All
divisions reported a decline in operating earnings, compared
with the preceding year: Dehumidification SEK 201 M (234),
HumiCool SEK 155 M (251) and MCS SEK 48 M (129). The
operating margin declined to 5.5 percent (9.0).
Charges against full-year earnings were impacted by SEK
86 M in costs for the MEP 2 program and SEK 68 M in costs
for confirmed and anticipated credit losses, quality problems
in purchased components and closure and merger costs. The
MEP 2 program is now completed.
Earnings before depreciation of acquisition-related intangible
assets and nonrecurring costs amounted to SEK 525 M
(597).
Financial items
Net financial items declined to an expense of SEK 77 M
(expense: 40), primarily due to increased indebtedness on
a full-year basis in combination with higher interest rates.
Capital distribution and acquisitions implemented during the
second half of 2007 did not achieve full effect in increasing
interest expenses for the full-year 2007, compared with 2008.
Earnings trend
SEK M
9,000
7,500
6,000
4,500
3,000
1,500
0
Net sales Operating earnings Earnings after financial items
1.2
60
Taxes
1.0
Investments
6,000
2,000
1,000
0
2004
2004
2005
2005
2006
2006
2007
2007
2008
2008
SEK M
600
Tax expenses for the year amounted to SEK 120 M (190),
corresponding 0.8 to an effective tax rate of 42 percent (36). The 40
increase in the tax burden was almost entirely attributable to
0.6
30
changed tax rules in Italy, which is one of the Group’s major
manufacturing 0.4
countries. The outcome of several tax audits 20
completed during the year also contributed to a minor portion
of the increase. In other respects, the high effective tax
0.2
10
rate 0.0 is the result of a significant portion of the Group’s profits 0
2004 2005 2006 2007 2008
being generated in subsidiaries in countries with higher tax
rates than Sweden, non-income related taxes in certain countries
and costs that are non-deductible for tax purposes.
The Group’s investments in tangible fixed assets during the
5,000
period amounted to SEK 145 M (185), of which a large portion,
SEK 4,000 49 M (82), pertained to investments in MCS equipment.
The remaining increase was primarily attributable to investments
in production equipment in existing plants.
3,000
Investments
500
400
300
200
100
0
50
9000
7500
6000
4500
3000
1500
0
1,2
1,0
Munters Annual Report 2008
0,8
0,6
0,4
0,2
0,0
6000
5000

44
Board of Directors’ report
in intangible assets excluding goodwill and other acquisitionrelated
intangible assets amounted to SEK 12 M (25). Depreciation
and impairment amounted to SEK 167 M (156).
Financial position
The equity ratio decreased to 28 percent at year-end (31 at the
start of the year). Interest-bearing assets totaled SEK 490 M
(276 at the start of the year) and interest-bearing provisions
and liabilities amounted to SEK 1,880 M (1,344 at the start of
the year). Net debt during the year rose by SEK 322 M to SEK
1,390 M as a result of acquisition of Toussaint Nyssenne and
Munters Form totaling SEK 102 M, an ordinary dividend of
SEK 185 M and exchange-rate fluctuations. The Group has a
credit facility approved on general terms amounting to SEK
2,190 M (2,177), of which the largest portion, SEK 2,000 M is
a syndicated credit facility extending until 2012. The Group
has unutilized loan facilities of SEK 545 M. (1,019).
Parent Company
Munter AB’s operations comprise Group-wide functions,
as well as certain functions for the MCS Division. The Parent
Company’s earnings after financial items during 2008
amounted to SEK 225 M (257). Dividends received from subsidiaries
were included in an amount of SEK 250 M (258). There
were no external net sales. Cash and cash equivalents at the
close of the period amounted to SEK 227 M (75) and net debt
to SEK 1,449 M (1,099). Capital expenditure totaled SEK 11 M
(21). The number of employees during the year was 30 (24).
Financial instruments
The use of financial instruments apart from those arising
in ongoing operations is relatively limited in the Munters
Group. In addition to the options specified in Note 29, they
consist primarily of currency hedges and interest-bearing
borrowing from banks. Further information on the Group’s
financial instruments is presented in Notes 3 and 18.
9,000
600
Research and development
7,500
500
Munters starting point in developing new or refining existing
technologies 6,000 is that the new models must be more energyefficient
than the old ones. Investments in research and
400
4,500
300
development have increased by 64 percent since 2006 and
now 3,000 account for 6 percent of operating costs.
200
1,500
Net 0debt/equity ratio and equity/assets ratio
2004 2005 2006 2007 2008
multiple
1.2
1.0
0.8
100
0
%
60
50
40
During 2008, product development resources were added with
the acquisition of Toussaint Nyssenne. Build-up of a product
development organization was begun in China and is expected
to be completed by the end of 2009. Investments in global product
platforms and a global organization continued. Toward the
end of the year, Dehumidification launched a newly developed
dehumidifier that will be sold in all regions. Major resources
were devoted during the year to adapting existing products
for new markets and new production locations. More efficient
control of product development was achieved through the
implementation of a structured development process.
Information regarding environmental impact in
accordance with Swedish legislation
Munters’ operations affect the external environment through
emissions to air and water, handling of chemicals and transports
of component parts and finished products to and from
manufacturing plants. The Group conducts operations
requiring a type B permit according to the Swedish Environmental
Code at its Swedish subsidiary Munters Europe AB.
The permit includes all production operations in Tobo, Sweden
and is valid until further notice. The Group’s operations
with 9,000 permit and reporting obligations impact the external 600
environment at Munters Europe’s plant in Tobo through
7,500
500
emissions to air and water. There are also noise restrictions.
There 6,000 are no injunctions in these areas. Production operations
are environmentally certified in accordance with ISO
400
4,500
300
14000. The products are continuously adapted to the EU’s
various 3,000 environmental directives. Chemicals and other
200
hazardous waste are collected and submitted to an external
processor
1,500
of hazardous waste. In developing new products,
100
Munters’ goal is to reduce the impact on the environment.
0
0
2004 2005 2006 2007 2008
Personnel
1.2
60
At the end of the period, the number of permanent employees
was 1.0 4,132, a decrease of 92 since year-end 2007, adjusted for 50
acquisitions. Companies acquired during the year contributed
0.8
40
140 new employees. The average number of employees during
the 0.6 year, including temporary employees, was 4,291, a decline 30
of 0.5 percent, compared with the preceding year. The proportion
of women was 19 percent (19). Personnel turnover increased
0.4
9000
20
600
during 0.2 7500
the year to 17 percent (13) for the Group as a whole. 10 500
This relatively high level is due to several factors. Restructuring
0.0
0
during 6000 the
2004
year increased
2005
turnover,
2006
compared
2007
with previous
2008
400
4500
Total assets and equity
SEK M 3000
6,000
5,000
4,000
1500
0
300
200
100
0
9000
7500
6000
4500
3000
1500
0
1,2
1,0
0,8
0,6
0,4
0,2
0.6
30
3,000
0,0
0.4
20
2,000
0.2
10
1,000
1,2
60
6000
0.0
2004
2005
2006
2007
2008
0
0
1,0
2004
2005
2006
2007
2008
50
5000
Net debt/equity ratio
Equity/assets ratio
Equity 0,8Total assets
40
4000
6,000
5,000
0,6
0,4
30
20
3000
2000
4,000
0,2
10

Board of Directors’ report
45
years. Europe has a high proportion of MCS personnel, which
is traditionally a highly mobile personnel category. Asia consists
of several young companies with a large share of production
where personnel mobility is still relatively high. Munters is in
large part a young company. A full 52 percent of the workforce
is under 40. The average age is 40 years (38).
Significant risks and uncertainties
Munters’ exposure to risk can be divided primarily into two
categories: operational risks and financial risks. Operational
risks are those due to weather, dependence on key personnel
and key customers, and geographically dispersed operations
involving small operational units. Financial risks consist
mainly of currency, interest and financing risks.
Demand for the company’s products is affected by general
economic trends. The weakened economic conditions resulted
in lower sales, which also reduced capacity utilization in
manufacturing over the short term. The continuing trend in
the global economy is an uncertainty factor for the earnings
trend for 2009. Munters’ acquisition frequency may result in
integration-related risks. In addition, it is estimated that the
financial risks, primarily interest-rate risks and currency risks,
have increased somewhat in the current and past year.
A more detailed description of the business’s operational
and financial risks and how they are controlled and managed
is presented in the section Risks and risk management on
pages 32–33 and in Note 3.
The Munters share and ownership structure
The Munters share is listed on the NASDAQ OMX Nordic
Exchange Stockholm. On December 31, 2008, Munters’ share
capital was distributed among 75,000,000 shares. The company
has one class of stock. Each share carries one vote without
restrictions at the Annual General Meeting. All shares carry
equal rights to the company’s assets and earnings. There are no
restrictions on transfer of shares according to law or the company’s
Articles of Association. As far as Group management
and the Board of Directors are aware, there are no agreements
between shareholders that may entail restrictions on the right
to transfer shares.
In order to meet obligations for the outstanding options program,
the company holds 1,066,950 treasury shares. Holdings of
treasury shares comprise 1.4 percent of the total share capital.
On December 31, 2008, the ten largest owners in Munters
controlled 66 percent (60) of the voting rights. The two largest
owners are Latour and Industrivärden, which each control 14.8
percent of the voting rights. No other shareholder controls
directly or indirectly more than 10 percent of the voting rights.
Members and deputy members of the Board of Directors
are elected at the Annual General Meeting for the period
until the end of the first general meeting held after the year
the member was elected. Changes in the Articles of Association
are decided by the Annual General Meeting.
The Board of Directors’ proposal for approval of
guidelines for compensation to senior executives
The Board of Directors of Munters AB proposes that the
Annual General Meeting on April 15, 2009 approve guidelines
for compensation to senior managers in the company according
to the following.
Salaries for senior managers shall be competitive and on market
terms and have other terms of employment that correspond to
the manager’s responsibility, authority, expertise and experience.
Reconciliation of total compensation against market statistics
and other information shall be performed regularly.
In addition to a fixed annual salary, senior managers
may also receive a variable salary, which will be based on the
Group’s earnings per share, cash flow, strategic development
or other parameters for the President and for other managers
on improvements in the manager’s area of responsibility with
respect to sales, operating earnings and capital turnover rate, as
well as the outcome of individual activity plans or other parameters.
The variable salary component shall correspond to at
most 50 percent of the fixed annual salary for the President and
at most between 30 and 70 percent for other senior managers.
The Board of Directors is also entitled to resolve on programs
relating to long-term variable salary, subject to the condition
that the outcome of such a program corresponds to at most 50
percent of fixed annual salary.
The company may subsidize or compensate interest expenses
for senior managers’ acquisition of shares for which the manager
assumes all risk.
The notice period between senior managers and the company
shall not be longer than six months, and severance pay shall not
amount to more than 18 months (base salary) for the President
and 12 months (base salary) for other senior managers.
Pension entitlement shall apply from the age of 62 at the
earliest. The President is covered by a premium-based pension
plan according to which the premium may amount to at most
35 percent of the base salary. Other senior managers residing
in Sweden are covered by a premium-based plan coordinated
with the ITP plan, where the agreed premium provision may
amount to at most 35 percent of base salary. Senior managers
not residing in Sweden may be offered pension plans that are
competitive in the countries where they reside.
Each year, the Board of Directors shall consider whether
or not share-related incentive programs shall be proposed to
the Annual General Meeting. Share-related incentive programs
that are not approved by the Annual General meeting
are not allowed.
Fees for Board members are established by the Annual
General Meeting. If a Board member is employed by the
company, compensation shall be paid to the Board member
according to these guidelines, whereby special compensation
for the assignment as a Board member shall not be paid. If a
Board member performs assignments for the company that
are not Board assignments, compensation shall be paid on
market terms with consideration taken to the nature of the
assignment and the work involved.
These guidelines shall apply to those persons who during
the period in which the guidelines apply are members of Group
management, other managers in senior positions who report
directly to the President and Board members of the company.
The guidelines apply for contracts entered after the closing of
the Annual General Meeting and in cases in which changes are
made in existing contracts after that date. The Board of Directors
shall have the right to deviate from these guidelines if there
are special reasons in an individual case, subject to the condition
that this decision is reported and motivated at a later date.
The most recently approved guidelines are presented in
Note 28.
Munters Annual Report 2008

46 10-year review
GROUP IFRS 1 Prior accounting principles 1
Order intake, sales and profit 2008 2007 2006 2005 2004 2003 2002 2001 2000 1999
Order intake, SEK M 6,515 6,407 5,761 5,340 4,598 4,305 4,727 3,945 3,322 2,608
Net sales, SEK M 6,570 6,262 5,712 5,130 4,543 4,308 4,666 3,894 3,179 2,594
Growth, % 4.9 9.6 11.3 12.9 5.5 –7.7 19.8 22.5 22.5 8.0
EBIT, SEK M 362 566 529 405 334 298 465 401 306 ,2 237
EBIT-margin, % 5.5 9.0 9.3 7.9 7.3 6.9 10.0 10.3 9.6 ,2 9.1
Earnings after financial items, SEK M 285 526 514 391 318 280 436 389 289 ,2 231
Net earnings, SEK M 165 336 328 252 200 172 266 239 184 144
Return figures and balance sheet 3
Equity, SEK M 1,285 1,202 1,506 1,437 1,148 1,086 1,114 1,012 821 655
Return on equity, % 13.8 25.7 22.5 19.3 17.8 15.8 25.6 26.7 26.0 24.8
Capital employed, SEK M 2,726 2,340 1,915 1,802 1,606 1,553 1,617 1,360 1,242 1,006
Return on capital employed, % 13.6 24.8 28.0 22.8 21.0 19.1 30.8 31.8 28.3 ,2 29.9
Return on operating capital, % 18.5 31.8 32.7 26.2 23.1 22.2 33.7 29.3 26.0 26.0
Capital turnover rate, multiple 2.4 2.7 3.0 2.8 2.8 2.7 3.1 3.0 2.8 3.1
Total assets, SEK M 4,614 3,862 3,144 2,946 2,440 2,365 2,732 2,228 1,993 1,689
Equity/assets ratio, % 27.8 31.1 47.9 48.8 47.0 46.1 41.0 45.4 41.2 38.8
Net debt, SEK M 1,390 1,068 257 315 351 338 365 196 333 230
Net debt/equity ratio, multiple 1.08 0.89 0.17 0.22 0.31 0.31 0.33 0.19 0.41 0.35
Interest-coverage ratio, multiple 4.4 10.7 25.0 20.2 17.7 11.3 14.2 16.3 11.7 ,2 13.1
Other key figures
Investments in tangible fixed assets, SEK 145 185 153 126 108 130 183 140 148 114
Operating cash flow, SEK M 177 189 375 181 121 125 230 236 –31 –55
Average number of employees 4,291 4,268 3,644 3,303 3,207 3,162 3,100 2,541 2,311 2,086
1
Financial statements from 2004 have been prepared in accordance with IFRS. The main difference compared with prior accounting principles is that goodwill is no longer
amortized according to plan.
2
Excluding items affecting comparability in an amount of SEK 15 M relating to surplus funds from pension management in Alecta.
3
From January 1, 2006, Munters has changed its accounting in accordance with the changes in IAS 19 so that actuarial gains and losses are now recognized in equity. Key
figures for 2005 are restated to comply with the changes.
Definitions are presented on page 85.
Dehumidification division
HumiCool division
MCS division
SEK M
SEK M SEK M
SEK M SEK M
SEK M
3,000
300 3,000
300 3,000
300
2,500
250 2,500
250 2,500
250
2,000
200 2,000
200 2,000
200
1,500
150 1,500
150 1,500
150
1,000
100 1,000
100 1,000
100
500
50 500
50 500
50
0
99 00 01 02 03 04 05 06 07 08
0
0
99 00 01 02 03 04 05 06 07 08
0
0
99 00 01 02 03 04 05 06 07 08
0
Order intake
Operating earnings
Order intake
Operating earnings
Order intake Operating earnings
Net sales
Net sales
Net sales
Operating cash flow and net debt
SEK M
500
Capital turnover rate and return
Return on equity
on capital employed
SEK M multiple % %
1,500 5
50 30
400
1,200
4
40
24
300
900
3
30
18
200
600
2
20
12
100
300
1
10
6
0
01 02 03 04 05 06 07 08
0 0
01 02 03 04 05 06 07 08
0 0
01 02 03 04 05 06 07 08
Operating cash flow
Net debt
Capital turnover rate Return on capital
employed

10-year review
47
DIVISIONS
Dehumidification division 2008 2007 2006 2005 2004 2003 2002 2001 2000 1999
Order intake, SEK M 2,133 2,001 1,693 1,500 1,352 1,275 1,482 1,532 1,346 1,132
Net sales, SEK M 2,051 1,936 1,635 1,514 1,344 1,262 1,503 1,501 1,284 1,094
Growth, % 5.9 18.4 8.0 12.6 6.5 –16.0 0.2 16.9 17.4 2.5
Operating earnings, SEK M 201 234 194 159 138 109 163 152 136 81
Operating margin, % 9.8 12.1 11.9 10.5 10.3 8.7 10.8 10.1 10.6 7.4
Operating capital, SEK M 590 481 383 422 362 369 380 438 426 402
Return on operating capital, % 38.7 52.0 50.4 40.9 39.2 29.3 40.6 34.2 35.0 21.6
No. of permanent employees at period-end 1,301 1,180 900 853 781 771 816 798 802 739
HumiCool division
Order intake, SEK M 1,644 1,837 1,585 1,460 1,178 1,080 1,258 1,108 993 669
Net sales, SEK M 1,743 1,765 1,514 1,343 1,138 1,103 1,215 1,079 966 689
Growth, % –1.2 16.5 12.8 18.0 3.2 –9.2 12.6 11.8 40.2 8.9
Operating earnings, SEK M 155 251 213 135 88 127 164 139 139 84
Operating margin, % 8.9 14.2 14.1 10.1 7.8 11.5 13.5 12.9 14.4 12.2
Operating capital, SEK M 581 497 391 440 432 474 513 470 476 392
Return on operating capital, % 27.5 52.3 51.1 29.2 18.2 24.6 31.6 28.6 31.5 27.2
No. of permanent employees at period-end 866 924 789 668 649 661 737 634 623 567
MCS division
Order intake, SEK M 2,770 2,630 2,541 2,444 2,102 1,987 2,041 1,331 1,008 835
Net sales, SEK M 2,809 2,624 2,618 2,335 2,095 1,982 2,004 1,338 961 833
Growth, % 7.1 0.2 12.1 11.5 5.7 –1.1 49.7 39.3 15.4 15.5
Operating earnings, SEK M 48 129 159 153 141 122 192 153 83 97
Operating margin, % 1.7 4.9 6.1 6.5 6.7 6.2 9.6 11.4 8.6 11.7
Operating capital, SEK M 854 895 811 862 683 580 682 450 377 292
Return on operating capital, % 5.5 15.5 19.7 21.8 23.0 19.6 33.4 36.3 25.4 38.6
No. of permanent employees at period-end 1,944 1,918 1,845 1,706 1,615 1,618 1,620 1,135 940 827
GEOGRAPHIC REGIONS
Europe
Net sales, SEK M 4,055 3,838 3,412 3,056 2,705 2,658 2,731 1,949 1,674 1,404
Growth, % 5.7 12.5 11.6 13.0 1.8 –2.7 40.2 16.4 19.3 6.0
Americas
Net sales, SEK M 2,145 2041 1,872 1,683 1,501 1,347 1,577 1,592 1,231 970
Growth, % 5.1 9.1 11.2 12.1 11.4 –14.6 –0.9 29.4 26.9 9.6
Asia
Net sales, SEK M 562 510 529 484 419 372 427 408 335 279
Growth, % 10.3 –3.6 9.3 15.6 12.7 –12.9 4.7 21.8 20.1 16.9
Munters Annual Report 2008

48 12-quarter review
GROUP 2008 2007 2006
Order intake, net sales and earnings Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1
Order intake, SEK M 1,661 1,582 1,686 1,586 1,518 1,674 1,688 1,527 1,311 1,362 1,573 1,515
Net sales, SEK M 1,881 1,597 1,548 1,545 1,737 1,597 1,524 1,404 1,462 1,408 1,456 1,386
Growth, % 8.4 0.0 1.6 10.0 18.7 13.4 4.7 1.3 –5.2 6.9 22.1 28.5
EBIT, SEK M 76 82 95 108 171 149 119 127 143 140 129 118
EBIT margin, % 4.0 5.1 6.1 7.0 9.8 9.3 7.8 9.0 9.8 9.9 8.8 8.5
Net earnings, SEK M 18 40 49 58 101 87 70 78 92 86 79 71
Other key figures 1
Investments in tangible assets, SEK M 32 29 41 43 42 56 53 34 53 44 26 30
Operating cash flow, SEK M 158 49 13 -43 161 –25 8 45 61 138 110 66
Net debt, SEK M 1,390 1,311 1,292 1,119 1,068 1,245 1,138 209 257 127 258 229
Net debt/equity ratio, multiple 1.08 1.10 1.20 0.93 0.89 1.16 1.07 0.13 0.17 0.09 0.19 0.15
Interest-coverage ratio, multiple 3.1 3.6 5.5 6.3 8.9 8.9 11.1 22.2 21.1 28.3 27.2 24.9
No. of permanent employees at period-end 4,132 4,044 4,083 4,099 4,043 3,982 3,915 3,669 3,552 3,449 3,400 3,365
Share data 1,2
Earnings per share, SEK 0.24 0.53 0.66 0.78 1.34 1.16 0.95 1.04 1.23 1.15 1.06 0.96
Equity per share, SEK 17.28 15.99 14.48 16.11 16.16 14.51 14.36 22.13 20.33 19.66 18.48 20.04
Share price at period-end, SEK 38.40 48.50 57.25 68.50 76.75 93.00 107.50 100.67 106 95 80 88
Market capitalization at period-end, SEK M 2,880 3,638 4,294 5,138 5,756 6,975 8,063 7,550 7,925 7,100 6,013 6,613
1
From January 1, 2006, Munters has changed its accounting in accordance with the changes in IAS 19 so that actuarial gains and losses are now recognized in equity. Key
figures for Q4 2005 to Q3 2006 are restated to comply with changes.
2
Historical data for the share has been adjusted for the share split, redemption and bonus issue implemented in 2007.
Definitions are presented on page 85.
Group order intake
SEK M
2,000
1,500
1,000
500
0
99 00 01 02 03 04 05 06 07 08 99 00 01 02 03 04 05 06 07 08 99 00 01 02 03 04 05 06 07 08 99 00 01 02 03 04 05 06 07 08
Q1 Q2 Q3 Q4
Group net sales
SEK M
2,000
1,500
1,000
500
0
99 00 01 02 03 04 05 06 07 08 99 00 01 02 03 04 05 06 07 08 99 00 01 02 03 04 05 06 07 08 99 00 01 02 03 04 05 06 07 08
Q1 Q2 Q3 Q4
Group EBIT
SEK M
200
150
100
50
0
99 00 01 02 03 04 05 06 07 08 99 00 01 02 03 04 05 06 07 08 99 00 01 02 03 04 05 06 07 08 99 00 01 02 03 04 05 06 07 08
Q1 Q2 Q3 Q4

12-quarter review
49
DIVISIONS 2008 2007 2006
Dehumidification division Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1
Order intake, SEK M 608 511 528 487 460 541 556 444 355 443 465 430
Net sales, SEK M 645 495 478 433 534 504 527 371 432 423 419 360
Growth, % 20.7 –1.7 –9.4 16.7 23.6 19.0 26.0 2.8 0.4 4.8 18.4 10.8
Operating earnings, SEK M 75 48 45 33 72 55 69 38 65 51 49 29
Operating margin, % 11.7 9.6 9.5 7.6 13.5 11.0 13.1 10.2 15.0 11.9 11.8 8.1
Operating capital, SEK M 590 524 480 476 481 477 488 384 383 394 392 395
No. of permanent employees at period-end 1,301 1,173 1,196 1,184 1,180 1,151 1,126 913 900 890 877 867
HumiCool division
Order intake, SEK M 314 369 525 436 395 460 518 465 333 340 462 450
Net sales, SEK M 436 425 432 451 476 446 414 429 361 367 411 376
Growth, % –8.5 –4.7 4.5 5.1 31.9 21.6 0.7 14.1 3.9 –2.0 16.7 39.9
Operating earnings, SEK M 23 36 44 51 73 64 55 59 44 56 62 51
Operating margin, % 5.3 8.5 10.2 11.4 15.3 14.3 13.3 13.8 12.2 15.2 15.2 13.6
Operating capital, SEK M 581 582 567 542 497 494 492 452 391 392 399 436
No. of permanent employees at period-end 866 908 914 959 924 911 855 832 789 698 672 695
MCS division
Order intake, SEK M 746 709 643 672 673 690 634 633 636 601 654 650
Net sales, SEK M 809 686 645 669 739 666 605 614 686 638 635 660
Growth, % 9.5 3.0 6.6 8.9 7.8 4.4 –4.6 –7.0 –11.5 13.5 26.0 33.6
Operating earnings, SEK M –9 7 14 36 39 42 10 38 45 39 29 46
Operating margin, % –1.1 1.0 2.2 5.3 5.3 6.3 1.7 6.2 6.5 6.1 4.6 7.0
Operating capital, SEK M 854 880 856 871 895 885 790 805 811 779 779 824
No. of permanent employees at period-end 1,944 1,942 1,952 1,938 1,918 1,903 1,916 1,906 1,845 1,842 1,830 1,784
GEOGRAPHIC REGIONS
Europe
Net sales, SEK M 1,141 969 965 981 1,124 960 861 893 947 814 845 806
Growth, % 1.5 0.9 12.1 9.8 18.7 18.0 1.8 10.8 8.3 3.6 14.1 22.9
Americas
Net sales, SEK M 637 543 490 475 499 550 560 432 412 487 498 474
Growth, % 27.5 –1.2 –12.6 10.0 21.1 13.0 12.4 –8.9 –27.3 13.5 37.2 46.3
Asia
Net sales, SEK M 150 137 139 136 142 121 135 112 138 132 134 126
Growth, % 5.5 13.2 3.0 21.9 3.1 –7.7 0.5 –11.2 8.7 4.9 16.4 7.5
Munters Annual Report 2008

50
Income statement – Group
Amounts in SEK M Notes 2008 2007
Net sales 5 6,570 6,262
Cost of goods sold –4,854 –4,503
Gross earnings 1,716 1,759
Other operating income 6 11 0
Selling costs –764 –653
Administrative costs –513 –464
Research and development costs –85 –70
Other operating expenses 6 –3 –6
EBIT – Earnings before interest and tax 7, 8 362 566
Financial income 9 8 14
Financial expenses 9 –85 –54
Earnings after financial items 285 526
Tax 10 –120 –190
Net earnings 165 336
Attributable to:
Shareholders in the Parent Company 163 332
Minority interest 2 4
165 336
Earnings per share 1
– before dilution, SEK 11 2.21 4.49
– after dilution, SEK 11 2.21 4.49
1
Attributable to shareholders in the Parent Company.

Cash-flow statement – Group
51
Amounts in SEK M Notes 2008 2007
OPERATING ACTIVITIES
Earnings after financial items 285 526
Reversal of items not affecting liquidity
Depreciation and impairments 7 167 156
Earnings from divestment and disposals of fixed assets 1 1
Provisions for pensions and similar commitments 38 1
Other provisions –18 –20
Other profit/loss items not affecting liquidity –5 –1
Total items not affecting liquidity 183 137
Taxes paid –181 –187
Cash flow from operating activities before changes in working capital 287 476
Cash flow from changes in working capital
Changes in inventory 43 –28
Changes in accounts receivable 127 –102
Changes in other receivables –17 –15
Changes in accounts payable –59 31
Changes in other liabilities –53 33
41 –81
Cash flow from operating activities 328 395
INVESTING ACTIVITIES
Acquisitions of enterprises 4, 14 –87 –316
Sale of business segments 6 3 –
Investments in tangible assets 12 –145 –185
Investments in intangible assets 13 –12 –25
Sales of tangible assets 5 4
Changes in other financial assets 1 –
Cash flow from investing activities –235 –522
FINANCING ACTIVITIES
Loans raised 409 1,061
Amortization of loans –133 –214
Dividend paid –189 –166
Redemption of treasury shares 19 – –494
Sales of treasury stock – 11
Cash flow from financing activities 87 198
Cash flow for the year 180 71
Cash and cash equivalents at the beginning of the year 276 201
Exchange-rate differences in cash and cash equivalents 34 4
Cash and cash equivalents at end of year 490 276
Interest received 7 8
Interest paid 73 44
OPERATING CASH FLOW
Operating cash flow 177 189
NET DEBT
Short-term interest-bearing liabilities 41 32
Long-term interest-bearing liabilities 1,653 1,168
Defined-benefit pension plans 186 144
Interest-bearing assets –490 –276
Net debt 1,390 1,068
Munters Annual Report 2008

52
Balance sheet – Group
Amounts in SEK M at December 31 Notes 2008 2007
ASSETS
Fixed assets
Buildings and land 12 209 172
Plant and machinery 12 149 144
Equipment, tools, fixtures and fittings 8, 12 294 262
Construction in progress 12 12 22
Patents, licenses, brands and similar rights 13 143 110
Goodwill 14 978 794
Participation in associated companies 16 2 2
Other financial assets 20 19
Deferred tax assets 10 126 62
Total fixed assets 1,933 1,587
Current assets
Raw materials and consumables 221 190
Products in process 86 73
Finished products and goods for resale 178 170
Work in progress 97 91
Advances to suppliers 7 12
Accounts receivable 3 1,354 1,292
Prepaid expenses and accrued income 17 117 65
Derivative instruments 18 1 0
Current income taxes 59 48
Other financial assets 71 58
Cash and cash equivalents 490 276
Total current assets 2,681 2,275
TOTAL ASSETS 4,614 3,862

Balance sheet – Group
53
Amounts in SEK M at December 31 Notes 2008 2007
EQUITY AND LIABILITIES
Equity
Attributable to shareholders in the Parent Company 19
Share capital 131 131
Reserves 99 –37
Profit brought forward 1,048 1,101
1,278 1,195
Minority interest 19 7 7
Total equity 1,285 1,202
Long-term liabilities
Interest-bearing liabilities 20 1,653 1,168
Provisions for pensions and similar commitments 21 208 162
Other provisions 22 2 3
Other liabilities 11 3
Deferred tax liabilities 10 87 47
Total long-term liabilities 1,961 1,383
Current liabilities
Interest-bearing liabilities 20 41 32
Advances from customers 107 99
Accounts payable 537 496
Accrued expenses and deferred income 23 430 377
Derivative instruments 18 2 1
Current income taxes 40 70
Other liabilities 143 136
Provisions for pensions and similar commitments 21 9 10
Other provisions 22 59 56
Total current liabilities 1,368 1,277
TOTAL EQUITY AND LIABILITIES 4,614 3,862
Pledged assets 24 1 5
Contingent liabilities 24 2 3
Munters Annual Report 2008

54
Statement of the Group’s recognized income and expenses
Amounts in SEK M 2008 2007
Income and expenses recognized directly in equity
Actuarial gains and losses pertaining to remuneration after termination of employment,
including special employer’s contribution –44 3
Cash-flow hedges:
– profit/(loss) recognized in equity 0 0
– transferred to income statement for the period –1 –1
Exchange-rate differences on translation of foreign subsidiaries 137 10
Tax on items recognized directly in or transferred from equity 13 0
Total income and expenses recognized directly under equity 105 12
Profit for the period reported in the income statement 165 336
Total income and expenses recognized for the period 270 348
Attributable to:
Parent Company’s shareholders 268 344
Minority interests 2 4
270 348
Refer also to Note 19.

Financial statements – Parent Company
55
INCOME STATEMENT
Amounts in SEK M Notes 2008 2007
Net sales 51 51
Gross earnings 51 51
Selling costs 0 0
Administrative costs –99 –78
Other operating income 6 2 2
Other operating expenses 6 1 –1
Operating earnings 7 –45 –26
Income from participations in
Group companies 9, 15 270 258
Financial income 9 71 67
Financial expenses 9 –71 –42
Earnings after financial items 225 257
Change in tax allocation reserve –4 –15
Tax 10 14 4
Net earnings 235 246
CHANGES IN EQUITY
Amounts in SEK M
Share Statutory Premium
capital reserve reserve
Profit
brought
forward
Total
equity
December 31, 2006 125 76 2 1,066 1,269
Group contributions – – – 46 46
Net profit – – – 246 246
Total income and
expenses – – – 292 292
Bonus issue 6 – – –6 0
Sale of treasury shares – – – 11 11
Redemption of treasury
shares – – – –494 –494
Dividend to Parent
Company shareholders – – – –166 –166
December 31, 2007 131 76 2 703 912
Group contributions – – – 44 44
Net earnings – – – 235 235
Total income and
expenses – – – 279 279
Dividend to Parent
Company shareholders – – – –185 –185
December 31, 2008 131 76 2 797 1,006
BALANCE SHEET
Amounts in SEK M at December 31 Notes 2008 2007
ASSETS
Fixed assets
Equipment, tools, fixtures and fittings 24 19
Patents, licenses, brands and
similar rights 18 17
Participation in subsidiaries 15 791 690
Receivables from subsidiaries 1,783 1,385
Other financial assets 2 2
Total fixed assets 2,618 2,113
Current assets
Prepaid expenses and accrued income 17 12 6
Receivables from subsidiaries 36 82
Current income taxes 7 4
Other financial assets 37 6
Cash and cash equivalents 227 75
Total current assets 319 173
TOTAL ASSETS 2,937 2,286
EQUITY AND LIABILITIES
Equity
Share capital 131 131
Statutory reserve 76 76
Restricted equity 207 207
Premium reserve 2 2
Profit brought forward 562 457
Profit for the year 235 246
Unrestricted equity 799 705
Total equity 1,006 912
Untaxed reserves 19 15
Long-term liabilities
Interest-bearing liabilities 20 1,637 1,137
Provisions for pensions and similar
commitments 21 39 37
Total long-term liabilities 1,676 1,174
Current liabilities
Accounts payable 5 6
Accrued expenses and
deferred income 23 15 10
Liabilities to subsidiaries 197 152
Current income taxes 17 14
Other liabilities 2 3
Total current liabilities 236 185
TOTAL EQUITY AND LIABILITIES 2,937 2,286
Pledged assets 24 – –
Contingent liabilities 24 126 110
Munters Annual Report 2008

56 Financial statements – Parent Company
CASH-FLOW STATEMENT
Amounts in SEK M Notes 2008 2007
OPERATING ACTIVITIES
Earnings after financial items 225 257
Reversal of items not affecting liquidity
Depreciation and impairments 7 6 3
Earnings from divestment and
disposals of fixed assets 1 1
Provisions for pensions and similar
commitments 2 1
Other profit/loss items not affecting
liquidity 195 0
Total items not affecting liquidity 204 5
Taxes paid 10 6
Cash flow from operating activities
before changes in working capital 439 268
Cash flow from changes in working capital
Changes in accounts receivable 0 0
Changes in other receivables –309 –441
Changes in accounts payable 1 4
Changes in other liabilities 51 57
–257 –380
Cash flow from operating activities 182 –112
INVESTING ACTIVITIES
Acquisitions of enterprises 4 –79 –
Investments in tangible assets 12 –8 –8
Investments in intangible assets 13 –4 –14
Changes in other financial assets –57 –33
Cash flow from investing activities –148 –55
FINANCING ACTIVITIES
Loans raised 409 1,083
Amortization of loans –106 –214
Dividend paid –185 –166
Redemption of treasury shares – –494
Sales of treasury shares – 11
Cash flow from financing activities 118 220
Cash flow for the year 152 53
Cash and cash equivalents at the
beginning of the year 75 22
Exchange-rate differences in cash
and cash equivalents
– –
Cash and cash equivalents at
the end of the year 227 75
Interest received 71 61
Interest paid 69 41
NET DEBT
Long-term interest-bearing liabilities 1,637 1,137
Defined-benefit pension plans 39 37
Interest-bearing assets –227 –75
Net debt 1,449 1,099

Notes
57
Contents, Notes
Note
Page
1 57 Accounting principles
2 63 Significant estimations and assessments
3 63 Financial risk management
4 65 Business combinations
5 67 Segment reporting
6 69 Other operating income and operating expenses
7 69 Depreciation and impairments
8 69 Leasing
9 70 Financial income and expenses
10 70 Income taxes
11 71 Earnings per share
12 71 Tangible assets
13 72 Patents, licenses, brands and similar rights
14 72 Goodwill
15 73 Participation in subsidiaries
16 73 Participation in associated companies
17 73 Prepaid expenses and accrued income
18 73 Financial instruments
19 74 Equity
20 75 Interest-bearing liabilities
21 75 Provisions for pensions and similar commitments
22 77 Other provisions
23 77 Accrued expenses and deferred income
24 77 Pledged assets and contingent liabilities
25 78 Transactions with related parties
26 78 Average number of employees, absence due to illness,
gender distribution
27 79 Wages, salaries and other remuneration and social
security expenses
28 79 Remuneration to Board members and senior executives
29 80 Outstanding incentive programs
30 81 Fees to auditors
31 81 Events after closing date
32 81 Company information
Amounts are stated in millions of Swedish kronor (SEK M), unless
otherwise stated. Amounts in parentheses are the values for the
preceding year.
NOTE 1
Accounting principles
1.1 Regulations applied
The consolidated accounts have been prepared in accordance
with the International Financial Reporting Standards (IFRS). Since
the Parent Company is an EU company, only IFRS approved by
the EU are applied.
Moreover, the consolidated accounts have been prepared
in accordance with Swedish law through the application of the
Swedish Financial Reporting Board’s Recommendation RFR 1.2
(Supplementary Accounting Rules for Groups).
The Parent Company’s annual report has been prepared in
accordance with Swedish law and through application of the
Swedish Financial Reporting Board’s Recommendation RFR 2.2
(Accounting for Legal Entities). This implies that the IFRS valuation
and disclosure rules are applied, with the exception of the deviations
indicated in the section entitled “Parent Company’s accounting
principles”. Both Recommendations RFR 1.2 and 2.2 are to be
applied to the presentation of the financial statements that pertain
to fiscal years beginning January 1, 2009 or later, although earlier
application is encouraged. Munters has decided to apply these
Recommendations in the 2008 Annual Report.
1.2 Basis on which the accounts have been prepared
The consolidated accounts are based on historical acquisition
values, with the exception of derivative financial instruments.
1.3 Basis of consolidation
The consolidated accounts encompass the Parent Company and
its subsidiaries. The financial statements for the Parent Company
and its subsidiaries that are included in the consolidated accounts
refer to the same period and have been prepared in accordance
with the accounting principles that apply to the Group.
All intra-Group transactions, revenues, costs, profits or losses
that arise in transactions between companies included in the
consolidated accounts have been entirely eliminated.
Subsidiaries Subsidiaries refers to a company in which the
Parent Company directly or indirectly holds more than half of the
voting rights or otherwise has a controlling influence.
A subsidiary is included in the consolidated accounts as of the
time of its acquisition, which is the day when the Parent Company
acquires a controlling influence, and is included in the consolidated
accounts until the day on which the controlling influence ceases.
Subsidiaries are reported in accordance with the purchase
method, entailing that identifiable assets and liabilities in the acquired
company are reported at the fair values determined by the
purchaser on the acquisition date.
Minority interest The minority interest is the portion of earnings
and of net assets of non-wholly owned subsidiaries that accrues
to owners other than the Parent Company’s owners. The minority
share in the company’s net earnings is included in the earnings reported
in the consolidated accounts and the share in its net assets
is included in the equity reported in the consolidated balance sheet.
Associated companies Associated companies refers to companies
in which the Parent Company directly or indirectly has a
long-term holding corresponding to not less than 20 percent and
not more than 50 percent of the voting rights or otherwise holds a
significant influence.
Associated companies are reported in accordance with the
equity method. This means that the consolidated balance sheet
includes the acquisition cost of the shares, plus the Group’s share
in the earnings of associated companies after acquisition and after
deduction of dividends received. The consolidated income statement
includes the participation in the earnings of the associated
Munters Annual Report 2008

58 Notes
companies after tax, with deduction, where applicable, of impairments
of goodwill and amortization of surplus values.
Translation of the accounts of foreign subsidiaries The
subsidiaries’ items in the balance sheet are valued in the relevant
functional currency, which would normally be identical to the local
currency in the particular country. The consolidated financial
statements are presented in Swedish kronor, which is the Parent
Company’s functional currency. The income statement and balance
sheets for the foreign subsidiaries are translated into Swedish
kronor. The balance sheets are translated at the closing rates
of exchange. The income statements are translated at the average
exchange rate during the period. Exchange-rate differences do
not affect earnings, but are reported directly under equity. The following
currency rates have been used in currency translations.
Average rate
Closing rate of
exchange
Currency Country 2008 2007 2008 2007
AUD Australia 5.53 5.66 5.36 5.66
CAD Canada 6.17 6.31 6.30 6.59
CNY China 0.95 0.89 1.13 0.89
DKK Denmark 1.29 1.24 1.47 1.27
EUR Euro 9.61 9.25 10.94 9.47
GBP United Kingdom 12.09 13.53 11.25 12.91
JPY Japan 0.064 0.057 0.086 0.057
NOK Norway 1.17 1.15 1.10 1.19
SGD Singapore 4.64 4.48 5.38 4.47
THB Thailand 0.20 0.21 0.22 0.22
USD USA 6.58 6.76 7.75 6.47
ZAR South Africa 0.80 0.96 0.82 0.94
1.4 Changed accounting principles for the Group
The applied accounting principles are the same as the principles
applied in the preceding year with the exceptions described
below. During the year, Munters introduced the following statements
from the IFRIC and changes in standards from the IASB as
of January 1, 2008. Other changes in standards and statements
were not deemed relevant for Munters.
IFRIC 11 IFRS 2 Group and Treasury Share Transactions,
including Group-internal The Group has introduced IFRIC 11 to
the extent that it is applicable to the consolidated accounts. The
interpretation requires that a contract in which an employee is
allotted a right to the company’s equity instruments is recognized
as a share-based payment, even if the company purchases the instrument
from an external party or if the shareholders provide the
required equity instruments. The Group has updated the accounting
principles to comply with this interpretation. The Group has not
issued any instruments that are affected by this interpretation.
IFRIC 14 IAS 19 The Limit on a Defined Benefit Asset,
Minimum Funding Requirements and their Interaction The interpretation
addresses the issue of how asset ceilings and lowest
funding requirements according to defined-benefit pension plans
should be calculated according to IAS 19 Employee Benefits. The
Group has updated the accounting principles to comply with this
interpretation. The Group’s defined-benefit pension plans show
deficits, meaning that the application of this interpretation did not
affect the Group’s financial position or earnings.
IAS 16 Property, Plant and Equipment The concept of “net
sales value” is replaced by “fair value less selling costs.” The
Group has updated the accounting principles to comply with this
change, which did not result in any change in the Group’s financial
position or earnings.
1.4.1 Introduction of new accounting principles
The new standards, interpretations and revisions that must be applied
for the 2009 fiscal year or later are presented below. Munters
does not intend to apply any of these in advance. Munters has
elected only to comment on standards and interpretations that
are deemed to be or may become relevant for the Group and its
operations.
IFRS 8 Operating Segments This standard contains disclosure
requirements regarding the Group’s operating segments and replaces
the requirement to define primary and secondary segments
based on business segments and geographic areas according to
IAS 14. Instead, the new standard requires that segment information
is presented from management’s perspective, meaning that it
is presented in the manner used in internal reporting. Munters will
report the three divisions MCS, HumiCool and Dehumidification as
operating segments. IFRS 8 will be applied for the 2009 fiscal year.
Amendment to IAS 27 Consolidated and Separate Financial
Statements The amendment to IAS 27 requires that all dividends
from subsidiaries, jointly controlled units or associated companies
are recognized in the income statement in the separate financial
statements. The amendment must be applied for fiscal years
beginning on January 1, 2009 or later and is applied progressively.
The new requirements only affect the Parent Company’s separate
financial statements and have no affect on the consolidated accounts.
The Parent Company has no ownership interests in units
that entail joint control with another party.
IFRS 3 (Revised) Business Combinations and IAS 27 Consolidated
and Separate Financial Statements (Revised) The revised
standards must be applied for fiscal years beginning on July
1, 2009 or later. IFRS 3 (Revised) introduces a number of changes
in the reporting of business combinations taking place after this
date, which will affect the magnitude of recognized goodwill, recognized
earnings in the period in which the acquisition takes place
and recognition of future earnings.
IAS 27 (Revised) requires that changes in ownership shares in
a subsidiary in which the majority owner does not lose the controlling
influence are recognized as equity transactions. As a result,
these transactions will no longer give rise to goodwill or result in
any gains or losses. Furthermore, IAS 27 (Revised) changes the
reporting of losses that arise in partially owned subsidiaries, as
well as loss of control of a subsidiary. As a result of these amendments,
consequential changes were made in IAS 7 Cash Flow
Statements, IAS 12 Income Taxes, IAS 21 The Effects of Changes
in Foreign Exchange Rates, IAS 28 Investments in Associates and
IAS 31 Interests in Joint Ventures.
The changes in IFRS 3 (Revised) and IAS 27 (Revised) will
affect the reporting of future acquisitions, loss of control and
transactions with minority owners. The revised standard may be
applied in advance, but the Group does not intend to take advantage
of this option.
IAS 1 Presentation of Financial Statements (Revised) The
revised standard will apply for the 2009 fiscal year. The standard
distinguishes between changes in equity resulting from transactions
with owners and other changes. The statement of changes in equity
will only contain details relating to owner transactions. Other changes
than owner transactions in equity will be presented as a single
item in the statement of changes in equity. In addition, the standard
introduces the concept of “report of total earnings for the period,”
which shows all items relating to income and expenses, either in a
separate statement or in two related statements. The Group has not
yet established whether one or two statements will be used.

Notes
59
IAS 23 Borrowing Costs (Revised) The standard requires capitalization
of borrowing costs when they are attributable to assets that
necessarily take significant time to complete for the intended use
or sale. The revised IAS 23 must be applied for fiscal years starting
on January 1, 2009 or later. This revision is expected to affect
Munters in conjunction with the establishment of new plants and
major expansions of existing plants when financed by borrowing.
Minor amendments and clarifications to existing IFRS The
Group has not begun applying the amendments described below,
and they are not deemed to have any significant effect on the
financial reports.
– IFRS 7 Financial Instruments: Disclosures Elimination of
reference to “total interest income” as a component in financial
expenses.
– IAS 10 Events After the Reporting Period Clarification that a
dividend announced after the closing date does not constitute
an obligation.
– IAS 16 Property, Plant and Equipment Tangible fixed assets
that are held for leasing and which are subsequently sold as a
matter of routine in ongoing operations at the end of the leasing
period are transferred to inventory when the lease expires and
are held for sale.
– IAS 18 Revenue The term “direct costs” is replaced with the term
“transaction costs” to correspond with the definition in IAS 39.
– IAS 19 Employee Benefits The definitions of “costs relating to
service during previous periods”, “return on managed assets”
and “current” and “other long-term” employee benefits were
revised. Changes in plans that result in a reduction of benefits
in relation to future services are recognized as a reduction, The
reference to the obligation to report contingent liabilities in line
with IAS 37 was eliminated.
– IAS 20 Accounting for Government Grants and Disclosure of
Government Assistance Loans granted in the future at low or no
interest will not be exempted from the requirement to recognize
implicit interest. The difference between the amount received
and the discounted amount will be recognized as a government
grant. Furthermore, a number of terms were revised for better
agreement with other terms in IFRS.
– IAS 27 Consolidated and Separate Financial Statements When
a parent company in the separate financial statements recognizes
holdings of subsidiaries at fair value in accordance with
IAS 39, the same principle must be applied when the subsidiary
is later classified as held for sale.
– IAS 39 Financial Instruments: Recognition and Measurement
Certain changes in circumstances with respect to derivatives
are not considered as reclassification and, as a result, they can
be removed from or included in the category “fair value via the
income statement” after the first reporting date. The reference in
IAS 39 to “segment” in determining whether an instrument shall
be classed as a hedge was eliminated. The amendment requires
application of a modified effective interest rate in conjunction
with revaluation of debt instruments that are no longer recognized
as a fair-value hedge.
1.5 Accounting principles applied
Business combinations IFRS 3 (Business combinations) is applied
to acquisitions of operations carried out on or after January 1,
2004, which complies with IFRS 1 and is consequently an exception
from the main rule on retroactive application of IFRS.
IFRS 3 implies that the fair value of the identifiable assets and
liabilities of the acquired operations is established at the time of
acquisition. These fair values also include participations in the
assets and liabilities attributable to any remaining minority owners
of the acquired operations. Identifiable assets and liabilities also
include assets, liabilities and provisions, including commitments
and claims from external parties that are not reported in the balance
sheet of the acquired operations. Provisions are not made
for expenses concerning projected restructuring measures resulting
from the acquisition. The difference between the acquisition
value of the acquisition and the acquired share in the fair value of
the net assets of the acquired operations is classified as goodwill
and reported in the balance sheet.
The useful life of each intangible asset is established and
amortized over the period of useful life. If the useful life is deemed
indefinite, no impairment takes place. An assessment that causes
the useful life of an intangible asset to become indefinite takes all
relevant circumstances into account and is based on the premise
that there is no predictable maximum time limit for the net cash
flow generated by the asset. The useful life of goodwill is generally
assumed to be indefinite.
Fixed assets Fixed assets are reported on the balance sheet
at acquisition value less accumulated depreciation according
to plan and any applicable impairments. The assets of acquired
companies are reported at fair value on the date of acquisition
with deduction of accumulated depreciation.
The acquisition value of the asset is depreciated according to
the straight-line method down to the estimated residual value over
the expected useful life of the asset. Anticipated useful lives are
specified in Note 7. The assets’ remaining useful life is reviewed on
every closing date and is adjusted if necessary.
Buildings, machinery and equipment Land is not subject to
depreciation since it is considered to have an indefinite useful life.
Normal maintenance and repair costs are expensed as they
arise. More extensive renovation and upgrade costs are reported as
an asset and depreciated over the remaining useful life of the object.
Goodwill Goodwill is the value by which the acquisition price
exceeds the fair value of the net assets acquired in conjunction with
the acquisition of a company or an acquisition of assets and liabilities.
Goodwill arising from the acquisition of associated companies
is included in the carrying amount of the associated company.
Patents, licenses and similar intangible rights Direct external expenses
for the development of software for internal administrative
use are capitalized, provided future efficiency gains are likely and
exceed the expenses committed. Activities during the preliminary
study phase, and maintenance and training costs, are expensed
on a regular basis.
Impairment testing When there is an indication that an asset’s
value has declined, the carrying amount of the asset is assessed.
Goodwill and other intangible assets with an indefinite useful life
are impairment-tested at least once a year.
If an asset’s carrying amount exceeds its estimated recoverable
amount, the asset is impaired to its recoverable amount. The
recoverable amount is the higher of net sale value and value in
use. The recoverable amount is assessed for each cash-generating
unit individually.
Munters Annual Report 2008

60 Notes
“Net sale value” refers to the most likely sale price in a normally
functioning market, with deduction of selling costs. ”Value in use”
refers to the present value of the estimated future cash flows that
are expected to result from the use of the asset and the estimated
residual value at the end of the asset’s useful life.
Value in use is generally measured using discounted cash-flow
models, which requires assumptions of such parameters as a
discount rate, future cash flows and the expenses necessary to
create the assessed cash flows.
Any previously reported impairment is reversed if the recoverable
amount is considered to exceed the carrying amount. No
reversal occurs of an amount greater than what would cause the
carrying amount to correspond to what it would have been if no
impairment had been recognized in a prior period.
Goodwill is impairment tested using the following method. The
goodwill value established on the date of acquisition is distributed
among cash-generating units or groups of cash-generating units,
which are expected to contribute advantages from synergistic
effects resulting from the acquisition. Assets and liabilities already
in the Group at the time of acquisition can be assigned to these
cash-generating units. Each such cash flow to which goodwill is
distributed corresponds to the lowest level of the Group at which
goodwill is monitored in the management of the Company. This
is a unit of the Group that is not larger than a segment – that is, a
division or geographic region in the Group’s segment reporting.
Goodwill impairment is not reversed.
Inventories Inventory is valued at the lower of acquisition cost
or net sales value (fair value). Required impairments are made for
obsolescence based on each item’s age and inventory turnover
rate. Acquisition value is determined by applying the first-in, first-out
method or weighted average prices, if that method results in a good
approximation of the first-in, first-out method. For internally manufactured
products, the acquisition value consists of direct manufacturing
costs plus a reasonable share of indirect manufacturing
costs. Interest expenses are not included in inventories. Normal
capacity utilization has been taken into account in valuations.
Work in progress on behalf of another party Work in progress
consists of committed expenses attributable to currently incomplete
work.
Cash and cash equivalents Cash and cash equivalents are
defined as cash and bank balances plus current investments with
maturity periods not exceeding three months. Utilized overdraft
facilities are reported under short-term loans.
Equity Expenses for the purchase of treasury shares reduce
equity in both the Parent Company and the Group. When these
shares are sold, the proceeds of the sale are included in equity.
Provisions Provisions are reported when the Group has or may
be considered to have an obligation as a result of events that have
occurred and where it is probable that payment will be required
to fulfill the obligation. An additional prerequisite is that it must be
possible to reliably estimate the amount to be paid.
A provision is made for restructuring measures when a
detailed, formal plan of the measures exists and well-founded
expectations have been created among those who will be affected
by the measures.
Employee benefits Within the Group, there are several definedcontribution
plans and several defined-benefit plans and other longterm
employee benefits, including some with management assets
in special trusts or the equivalent. In defined-contribution plans,
the company pays a pre-determined premium to a separate legal
entity and does not have any legal or informal obligation to make
additional payments, if the legal entity should prove to have insufficient
assets when compensation to the employee is to be paid. All
other plans for benefits when employment ends are defined-benefit
plans. Pension plans are mainly funded through premiums paid by
the various Group companies. Independent actuaries compute the
amount of the commitments of the various plans and reassess pension
plan commitments every year.
Regarding defined-benefit plans, pension costs are calculated
using the Projected Unit Credit Method, so that the cost is distributed
over the employee’s working life. These commitments are valued
at the present value of the anticipated future payments calculated
using a discount rate that corresponds to the interest on high-quality
commercial paper or government bonds with a remaining term that
approximately corresponds to that of the commitments. For funded
plans, the pension commitment is reported net after deduction of
the plan assets. Actuarial gains and losses are reported against
equity, net after deferred tax, in the period they occurred.
In Sweden, special employers’ contributions pertaining to
actuarial gains/losses are reported in equity.
The Group’s payments relating to defined-contribution plans
are reported as an expense during the period the employee performed
the services to which the contribution relates.
Other long-term employee benefits include benefits in conjunction
with anniversaries or other benefits to long-term employees.
Recognition of these benefits differs from defined-benefit plans
whereby actuarial gains and losses are recognized in the income
statement and all expenses pertaining to employment during
previous periods are recognized immediately.
Stock options program Employees have paid a market premium
for the stock options program that Munters has implemented
(see Note 29). The stock option programs contain a subsidy implying
that the employee receives the equivalent of 60 percent of the
option premium in the form of a cash bonus, provided the option
holder is employed during the period when the options may be
exercised. This subsidy and the related social security payments
are calculated and allocated as a personnel cost over the vesting
period – that is, from the time of issuance of the options until the
vesting conditions have been fulfilled.
Warranty commitments Warranty costs are reported as cost
of goods sold. Provisions for warranty costs are calculated at a
standard rate in an amount that corresponds to average warranty
costs in relation to sales in the most recent 24-month period, with
an adjustment for known warranty claims exceeding the standard
provision. Provisions for warranty commitments are related to the
stated warranty period.
Leasing Leases are classified either as financial or operating
leases. Leases in which Munters adopts essentially the same legal
position as in direct ownership of the asset are classified as financial
leases. Reporting of financial leases entails recognizing a fixed
asset as an asset item in the balance sheet, at the lower of the
market value of the asset and the estimated present value of the
underlying lease payments, and initially reporting a corresponding
liability. The asset is depreciated according to plan over its useful
life, while the lease payments are reported as interest and amortization
of the liability. For operating lease, the lease payments are
expensed in the income statement over the lease period.
Revenue Net sales are reported at the sale value after deduction
of discounts and value added tax and other taxes.
Income from the sale of goods is reported upon delivery, at
which point essentially all risks and rights are transferred to the
purchaser. This normally implies that sales are reported on delivery
to the customer in accordance with the conditions of sale.
Income from major project assignments is reported in relation
to the degree of completion on the closing date, provided the
profit can be reliably calculated. Degree of completion is determined
mainly on the basis of committed project costs in relation

Notes
61
to estimated project costs upon completion. Any expected losses
are expensed directly.
In the MCS division, there are numerous small projects with
short completion periods (the average being between two and
12 weeks). For practical reasons, income from such projects is
reported on completion in connection with the issuing of a final
invoice to the customer.
Key categories of revenue are defined in Note 5, whereby Dehumidification
and HumiCool refer to the sale of goods and MCS
refers to services rendered.
Interest income on receivables is calculated using the effective
interest method. Interest income includes the accrued amount of
transaction costs and possible discounts, premiums and other
differences between the original value of the receivable and the
amount received when due.
Research and development costs The Group’s expenses for
research are expensed as they are incurred. Under certain circumstances,
development costs can be capitalized, but this requires,
among other things, that future economic benefits can be shown
at the time when the costs arise. There is currently no such project,
and development costs are therefore also expensed as they arise.
Borrowing costs Borrowing costs are reported as costs in the
period in which they arise, regardless of how the borrowed funds
are employed.
Government grants Government grants are reported at fair
value when it may be presumed with reasonable certainty that a
grant will be received and that the Group will fulfill all the conditions
attached thereto.
Government grants related to the acquisition of assets are
reported in the balance sheet through the reduction by the grant of
the carrying amount of the asset. Government grants attributable to
costs are reported as deferred income and recognized as revenue
as the costs that the grant is designed to offset arise. When a government
grant is attributable neither to the acquisition of assets nor
to remuneration of costs, it is reported as other income.
Transactions in foreign currency Transactions in foreign currency
are translated at the exchange rate on the transaction date.
Monetary assets and liabilities in foreign currencies are translated
at the closing rate of exchange and any resulting translation differences
are reported to earnings. Accordingly, both realized and
unrealized exchange-rate differences are reported in the income
statement. Exchange-rate differences concerning operating
receivables and liabilities are reported under operating earnings,
while exchange-rate differences attributable to financial assets
and liabilities are reported as a financial expense.
Financial instruments Financial instruments are all forms of
contract that give rise to a financial asset in one company and a
financial liability or an equity instrument in another company.
Classification of financial instruments is in the following categories:
(a) financial instruments valued at fair value via the income
statement, (b) loan or accounts receivables, (c) financial instruments
held until maturity, (d) financial instruments available for
sale and (e) other financial liabilities. Classification depends on the
objective in acquiring the instrument. Management establishes
the classification of the instruments when first reported and reassesses
this decision on every reporting date. All financial instruments
are recognized from the transaction date.
Classification of financial assets and liabilities
(a) Financial instruments valued at fair value via the income
statement This category has two sub-groups: financial assets
held for trade and such assets as are initially classified as
valued at fair value via the income statement. A financial asset
is classed in this category if it was acquired primarily with the
intention to sell it shortly or if this classification was determined
by management. Derivative instruments are also classified as
held for trade, if they are not identified as hedges. Assets in this
category are classed as current assets either if they are held
for trade or expected to be realized within 12 months from the
balance-sheet date. Munters has financial assets classified in
this category.
(b) Loan and accounts receivable Loan and accounts receivable
are non-derivative financial assets with determined or
determinable payments that are not listed on an active market.
Characteristic for these assets is that they arise when the
Group provides money, goods or services directly to a customer
without the intention to trade the receivable thus arising.
They are included in current assets with the exception of items
with due dates more than 12 months after the balance-sheet
date, which are classified as fixed assets. Munters has cash
and cash equivalents, accounts receivable, accrued income
and certain other receivables in this category.
(c) Financial assets held to maturity Financial assets that are held
until maturity are non-derivative financial assets with determined
or determinable payments and a fixed period that Group
management intends and has the ability to hold until maturity.
Munters has no financial instruments in this category.
(d) Financial assets available for sale Financial assets not classified
in any other category, such as shares and participations in
both listed and unlisted companies. Munters has no financial
instruments in this category.
(e) Other financial liabilities Financial liabilities that are not held
for trade. Munters’ borrowing, accounts payable and certain
accrued expenses are included in this category.
Recognition and valuation of financial instruments Loan and
accounts receivable are initially valued at fair value. In establishing
fair value, information is used as applicable relating to recently
completed arm’s length transactions, other approximately equivalent
instruments and an analysis of discounted cash flows. On
subsequent occasions, the assets are valued at accrued acquisition
value based on the effective-interest method and adjusted for any
credit losses. A provision for credit losses is allocated when there
are strong indications that the Group will not be able to receive the
amounts specified according to the receivables’ original terms.
Other financial liabilities are recognized at accrued acquisition
value based on the effective-interest method. The acquisition
value corresponds to the fair value on the acquisition date. For
borrowing, this corresponds to the amount received reduced by
any transaction costs.
Any gains and losses arising in conjunction with disposal of
financial instruments or repurchase of loan obligations are recognized
in the income statement.
Offsetting of financial instruments Financial assets and
liabilities may be offset against each other and recognized in net
amounts in the consolidated accounts in cases where Munters
has agreed with the counterparty that assets and liabilities will be
settled in net amounts.
Financial derivative instruments Financial derivatives are
initially recognized at acquisition value in the balance sheet and
thereafter at current market value on subsequent balance-sheet
dates. The method for recognition of gains and losses thus arising
varies, depending on the character of the risk-hedged interest.
When a derivative contract is entered, it is classed as either
(1) hedging of fair value of a recognized asset or liability (fair-value
hedging), (2) hedging of a planned transaction or a definitive
obligation (cash-flow hedging), (3) hedging of a net investment in
a foreign subsidiary or (4) as a derivative that does not meet the
requirements for hedge accounting.
Munters Annual Report 2008

62 Notes
Changes in the market value of such derivatives that are classified
as, and meet the requirements for, fair-value hedging that can be
determined objectively, are recognized in the income statement
together with any changes in market value of the liability to which
the hedge applies. Munters does not apply fair-value hedging.
Changes in fair value of such derivatives that are classified as,
and meet the requirements for, cash-flow hedging that can be determined
objectively, are recognized in equity as a hedging reserve
up until the date on which the hedged interest is reported. When
the hedged interest is recognized, income or expense arising from
the associated derivative is also recognized under financial items
in the income statement. If a planned transaction or an assumed
obligation is no longer expected to occur, any gain or loss thus far
charged against equity is immediately transferred to the income
statement. Munters applies cash-flow hedging to a limited extent.
Certain derivative transactions do not meet the requirements
for hedge accounting according to IAS 39 (Financial Instruments:
Recognition and Valuation), although they are financially motivated
according to the Group’s risk management policy. Changes in
market value for such non-qualified hedging transactions are
immediately recognized in the income statement. This type of
transaction does not occur in the Group.
Munters hedges major investments in foreign subsidiaries.
Changes in value for hedges relating to net investments in foreign
subsidiaries are recognized in equity as they arise. Accumulated
changes in value are retained in equity until the operation is
divested, at which time the changes in value are recognized in the
income statement.
Accumulated translation differences Translation differences
relating to investments in foreign operations are recognized as a
translation reserve in equity. In conjunction with the sale of foreign
operations, accumulated translation differences must be reported
as part of the consolidated gain/loss from the divestment. Munters
has elected to set accumulated translation differences at zero as per
January 1, 2004, in accordance with the transition rules in IFRS 1.
Income taxes Income taxes in the consolidated financial statements
consist of current and deferred income tax.
Current income taxes are based on each company’s taxable
income as reported in its tax return for the year. This includes an
adjustment for current income tax attributable to previous periods.
Deferred income tax is calculated to correspond to the tax effect
that arises when final tax is triggered. It is based on temporary differences
between carrying amounts in the balance sheet and residual
values for tax purposes. The amounts are calculated using the tax
rates that were effective or had been announced on the closing
date. Temporary differences arise in conjunction with company acquisitions
as the difference between the value of assets and liabilities
in the consolidated balance sheet and their value for tax purposes.
Deferred tax assets relating to loss carryforwards are reported
to the extent that it is deemed likely that loss carryforwards will be
used to offset future surpluses.
Deferred tax liabilities referring to temporary differences attributable
to investments in subsidiaries and associated companies
are not reported, since in all such cases, the Parent Company
can control the time of the reversal of the temporary differences,
a capital gain/loss on a sale is not subject to taxation and it is
considered unlikely that a reversal will occur in the near future.
Contingent liabilities Contingent liabilities are reported when
there are possible obligations relating to transpired events that
will only become actual obligations given the occurrence or
non-occurrence of one or more uncertain future events that are
completely outside the control of Munters. Contingent liabilities
may also be an obligation arising from transpired events but which
is not reported as a liability or a provision because it is not prob­
able that the obligation will be settled or because the settlement
amount cannot be calculated with sufficient reliability
Information concerning related parties Companies related to
Munters include the Parent Company, subsidiaries and associated
companies. “Related physical persons” are defined as Board
members, senior management and close family members of such
persons.
Information on transactions with related parties that entail a
transfer of resources, services or obligations between related parties
is disclosed, regardless of whether remuneration was paid or not.
The disclosure contains information as to the character of the relationship
and the effect of the relationship on the financial statements.
Events after the closing date If events arise that are significant,
but that should not be taken into account when the amounts
in the income statement and balance sheet are established,
information will be provided in the Board of Directors’ Report and
notes as to the character of the event and, if possible, an estimate
of its financial effect. The term “significant” implies that a disclosure
of the information could influence financial decisions made by
users of the financial statements.
Significant events that confirm the relationship that existed on
the closing date and that occur after the closing date but prior
to the signing of the Annual Report result in adjustments in the
amounts in the Annual Report.
Accounting principles of the Parent Company The Parent
Company has prepared its annual accounts in accordance with
the Swedish Annual Accounts Act and the Swedish Financial Reporting
Board’s Recommendation RFR 2.2 Accounting for Legal
Entities. This means that IFRS is applied with the deviations and
amendments presented below.
Pensions The Parent Company’s pension commitments are
calculated and reported based on the law on safeguarding of pension
commitments, which deviates from IAS 19. The principles from
accounting based on this law are found in FAR SRS’s accounting
Recommendation No 4 Accounting of Pension Liabilities and Pension
Costs, RedR 4. Application of the law on safeguarding of pension
commitments is a prerequisite for the right to tax deductions.
Actuarial gains and losses are recognized in the income statement.
Financial instruments Recognition and Measurement The Parent
Company does not apply IAS 39.
Financial Instruments Recognition and Measurement, instead
measurements are based on the acquisition value of assets and
liabilities.
Ownership of subsidiaries Ownership shares in subsidiaries
are reported in the Parent Company according to the purchase
method. Received dividends are only recognized as income
subject to the condition that they are attributable to profits earned
after the acquisition date.
Group contributions and shareholders’ contributions The
Parent Company reports Group contributions and shareholders’
contributions in accordance with the Statement from the Swedish
Financial Reporting Board (UFR).
UFR2 Group contributions and shareholders’ contributions
Shareholders’ contributions are reported directly against the
receiver’s equity and capitalized in the shares and participations of
the provider, to the extent that impairment is not required. Group
contributions are reported according to financial significance.
This means that Group contributions that are made to minimize
the Group’s total tax are reported directly against profit brought
forward after deductions of current tax effects.
Untaxed reserves The amounts for which provisions have been
made to untaxed reserves comprise taxable temporary differences.
Due to the connection between accounting and taxation, the
deferred tax liabilities attributable to the untaxed reserves in the
Parent Company are not reported separately in the legal entity.

Notes
63
NOTE 2
Significant estimations and assessments
In preparing the financial reports, Group management and the
Board of Directors make assessments and assumptions that affect
the financial statements and the information presented. These
assessments are based on past experience and the various assumptions
that management and the Board consider reasonable
under the prevailing circumstances. The conclusions thus drawn
form the basis for determinations concerning carrying amounts of
assets and liabilities in cases where they cannot be readily determined
from information from other sources. The actual outcome
may differ from these assessments, if other assumptions are
made or other conditions apply.
The estimates and assumption that are considered to have the
greatest impact on Munters’ earnings and financial position are
discussed below.
Doubtful accounts receivable
Accounts receivable are recognized in net amounts after reserves
for possible loss risks. The net value reflects the amount that it
is expected to be possible to recover, based on circumstances
known on the balance-sheet date. Changes in circumstances,
such as an increase in missed payments or a change in the
financial position of a significant customer, may result in significant
deviations in the valuation.
assumptions are updated each year, which affects the magnitude
of the recognized pension liability and equity. The prevailing situation
in the financial markets contributed to increased uncertainty
in determining the discount rate for 2008. Together with assumptions
on anticipated returns on managed assets, these assumptions
affect the pension costs recognized for the year. Additional
information is presented in Note 21.
Legal disputes
Provisions for legal disputes are estimates of the future cash
flow that will be required to settle the obligations. The disputes
primarily relate to contracted obligations attributable to contracts
with customers and suppliers, although other types of disputes
also arise in normal business operations. Management considers
it improbable that any of the known disputes in which Munters
is presently involved will have a significant effect on the Group’s
accounts.
Other provisions
Several of Munters’ products are covered by guarantees that
apply during a predetermined fixed period. Provisions for such
product guarantees are based on historical data and expected
costs for quality problems that are known and can be anticipated.
NOTE 3
Financial risk management
Valuation of goodwill
The Group assesses the need for an impairment of goodwill
each year. This assessment requires an estimation of parameters
that affect future cash flow and determination of a discount rate.
Thereafter, the recovery value of each individual cash-generating
unit is established by calculating the value in use. Future cash flow
for some goodwill items was particularly difficult to assess, given
the macroeconomic situation at the end of 2008 and its effects
on the coming year. Note 14 presents the significant assumptions
made in assessing goodwill and describes the effects of reasonable
and possible changes in the assumptions on which the
calculations were based.
Acquired intangible assets
In conjunction with company acquisitions, the acquired intangible
assets are valued at fair value. In cases where there is an active
market for the acquired assets, the fair value is determined on the
basis of prices in that market. Because active markets are often
lacking for these assets, valuation methods have been developed
to estimate fair values. One example of a valuation model is discounted
future cash flows.
Restructuring measures
Restructuring costs include the necessary impairment of assets,
as well as estimated costs for dismissal of personnel. The cost
calculation is based on detailed action plans that are expected to
improve the Group’s cost structure and productivity. To minimize
uncertainty factors, historical outcomes from similar events are
normally used as the basis for the calculation. Provisions for
restructuring measures are allocated when a detailed, formal
plan for the measures is established, and well-founded expectations
have been created among those who will be affected by the
measures.
Provisions for pensions
The pension liabilities recognized in the balance sheet are actuarial
calculations based on assumptions about the discount rate,
inflation, future salary increases and demographic factors. These
In its business, Munters is exposed to several different financial
risks: market risk (primarily currency and interest risk), credit risk
and liquidity risk.
The financial risks are controlled and managed based on a policy
adopted by the Board of Directors that is intended to limit the
financial risks to which Munters is exposed through preventative
measures. The policy also regulates the division of responsibility
between the Group’s subsidiaries and the central finance function.
Risk management and financing operations are mainly centralized
to the Parent Company in Sweden. The policy has been
unchanged in 2008.
Information about financial risks is provided in Note 18.
Market risk
Currency risk
Munters conducts operations in countries all over the world. The
Group is thus exposed to currency risks in both transactions in
foreign currency and when translating income statements and
balance sheets to SEK.
A significant share of Munters’ sales and costs are generated
in foreign currencies. The geographic distribution of Munters’
production plants results in significant matching of revenues and
costs in local currencies, which limits currency exposure. The
shares of net sales and costs for the most significant currencies
during the year are shown below.
2008
Currency Proportion of sales, % Proportion of costs, %
EUR 36.4 36.3
USD 31.0 29.6
NOK 7.2 7.3
GBP 5.1 5.0
SEK 5.1 8.6
Other currencies 15.2 13.2
Total 100.0 100.0
Munters Annual Report 2008

64 Notes
2007
Currency Proportion of sales, % Proportion of costs, %
EUR 35.8 35.3
USD 31.6 30.5
NOK 6.8 7.0
GBP 7.2 6.5
SEK 4.2 8.7
Other currencies 14.4 12.0
Total 100.0 100.0
Munters’ sensitivity to variations in the currencies most significant
for earnings is presented in the table below. The analysis includes
both transaction and translation exposure and is based on operating
earnings for 2008 and 2007, respectively. The assumption is
that all other factors that can influence earnings are unchanged.
2008 Estimated effect on operating earnings
SEK +10% compared with SEK M %
EUR –12.4 –4.0
USD –18.9 –6.1
NOK –1.8 –0.6
GBP –2.4 –0.8
AUD –0.8 –0.2
JPY –1.6 –0.5
2007 Estimated effect on operating earnings
SEK +10% compared with SEK M %
EUR –23.2 –4.8
USD –24.0 –4.9
NOK –2.8 –0.6
GBP –8.1 –1.7
AUD –1.6 –0.3
JPY –1.9 –0.4
Transaction exposure
Munters hedges 100 percent of net contracted operative and
financial flows in foreign currency. Sales in foreign currencies
take place primarily in internal Group sales companies, meaning
that hedging can be concentrated to fewer companies within the
Group. Hedging takes place primarily through the sale of currency
in forward contracts and through external borrowing in foreign
currency. The value of currency hedging at year-end amounted to
slightly more than SEK 1 M, see Note 18. According to Munters’
financial policy, hedging through currency options may only take
place in exceptional cases. There were no currency options at the
end of 2008.
Translation exposure
Munters’ exposure to translation risk arises because a large
number of its subsidiaries have a functional currency that is different
than the Group’s reporting currency. Munters hedges the
currency risk attributable to the translation of income statements
and balance sheets in EUR and USD.
The total effect of translating 2007 operating earnings to 2008
exchange rates resulted in an expense of SEK –3.5 M (expense –16),
corresponding to 1.0 percent (2.9) of the year’s operating earnings.
The effect on equity of translation of foreign subsidiaries’ net assets
to SEK amounted to SEK 137 M (10) during the year.
Interest risk
Since the Group does not have any significant interest-bearing assets,
the Group’s income and cash flow from current operations is
essentially independent of changes in interest rates. However, the
Group is exposed to interest risk through interest-bearing borrowing,
which is one of the Group’s sources of financing in addition to
equity and cash flow from current operations.
According to the guidelines specified in Munters’ financial
policy, the interest period for debt should normally be between
0 and 12 months. The average interest period at year-end 2008
was slightly more than four months. A specification of the Group’s
interest-bearing debt is provided under the heading Liquidity risk.
Interest exposure
The estimated effect on earnings after financial items of a change
in interest levels of 1 percent amounts to slightly more than SEK 9
M (7), primarily as an effect of borrowing with variable interest.
Credit risk
For Munters, the dominant portion of credit risk relates to accounts
receivable. Munters works actively to limit this risk. An
approved credit rating is required in order for a counterparty to be
approved. Advance payment is generally encouraged, and partial
advance payment is a requirement when the order value is a significant
amount and delivery extends over a long period. Accounts
receivable are also spread over a large number of customers,
primarily companies in different industries and with substantial
geographic diversity, which limits concentration of the credit risk.
During the year, the Group’s five largest customers accounted for
8 percent of total revenue.
To ensure that the Group’s accounts receivables are paid,
Munters developed a new policy during 2008 in a joint Group
improvement project. According to this policy, each business unit
must have established and documented processes for handling
unpaid receivables. The documented processes include specifications
for time limits for taking various actions, including legal
actions, as well as for who is responsible at various stages of the
process. Documentation of actions taken ensures that follow-ups
will be possible. The measures are matched to amounts and to
different groups of customers and business areas in a manner that
will result in efficient handling of overdue accounts receivable.
Time analysis of accounts receivables
overdue but not written down
2008 2007
< 30 days 254 248
30–90 days 150 172
91–180 days 49 83
> 180 days 4 59
Amount at year-end 457 562
Collateral in the amount of SEK 108 M has been provided for total
receivables, of which SEK 106 M comprises bank guarantees.

Notes
65
Provisions for bad debts correspond to 8.0 percent (5.5) of total
receivables and changed according to the following.
Provisions for bad debts
2008 2007
Provisions at January 1 75 67
Acquisitions of subsidiaries (Note 4) – 2
Provisions for anticipated losses 77 22
Established losses –38 –7
Reversals of unutilized provisions –13 –12
Exchange-rate differences 14 2
Amount on December 31 115 75
The tables below show the remaining contract periods until
maturity. The amounts specified in the table are the contracted,
non-discounted cash flows. The difference from the recognized
amounts in the balance sheet relate to leasing commitments,
which in this presentation are reported gross before deduction
of interest and fees.
December 31, 2008 < 1 year 1–5 years > 5 years Total
Interest-bearing liabilities 39 1,653 – 1,692
Other liabilities 619 6 1 626
Accounts payable 537 – – 537
1,195 1,659 1 2,855
The credit risk for other financial assets, such as cash and cash
equivalents, amounted to the carrying value of these assets.
Liquidity risk
Munters’ borrowing from banks consists in part of a syndicated
credit facility and in part of individually approved bank loans to
subsidiaries, often in conjunction with acquisitions of operations.
The syndicated credit facility amounts to SEK 2,000 M and extends
until 2012. The facility may be utilized in several currencies.
Interest-bearing debt amounted to SEK 1,694 M at year end
(1,200) and was distributed as follows. Note 20 also provides
information.
Interest-bearing debt Group
2008 2007
Bank loans – approved general credit
framework 2,190 2,177
Bank loans – unutilized portion –545 –1,019
Bank loans – in addition to general
credit framework 34 32
Leasing commitments 15 10
1,694 1,200
Borrowing is distributed among local currencies with average
weighted interest rates as follows:
Currency Nominal amount, millions Average interest rate, %
SEK 320 3.5
EUR 81 4.0
USD 57 2.3
CNY 20 5.1
DKK 5 6.1
Calculation of net debt is reported in the cash-flow statement.
Munters’ syndicated credit facility means that the Group is subject
to external capital requirements that stipulate limits for net debt
through profit before interest expenses, tax and impairments
and the interest coverage ratio. The Group has complied with the
external capital requirements. Munters has established routines
for managing external borrowing and following up the limits in the
capital requirements. In this manner, the Group ensures that it
fulfills its commitments to external lenders and minimizes the liquidity
risk. External borrowing is managed centrally by the Parent
Company in Sweden. The financial policy adopted by the Board of
Directors regulates levels with respect to cash and cash equivalents
and credit facilities in relation to sales. When surplus liquidity
arises in the Group, it is primarily used to amortize external loans.
December 31, 2007 < 1 year 1–5 years > 5 years Total
Interest-bearing liabilities 29 31 1,137 1,197
Other liabilities 403 86 – 489
Accounts payable 496 – – 496
928 117 1,137 2,182
Capital management
The Group’s management of capital is regulated by a policy
adopted by the Board of Directors that entails minimizing surpluses
in cash and cash equivalents through amortization of external
loans. Surplus liquidity is invested in government bonds with low
risk or placed in bank accounts. Surplus liquidity in subsidiaries
shall be placed with the Parent Company.
Munters is subject to external capital requirements in the syndicated
credit agreement that was entered in 2007. The general
implications of these capital requirements are presented under the
heading Liquidity risk.
Munters’ managed capital consist of equity amounting to SEK
1,285 M (1,202). Munters’ intention is to apply a dividend policy that
the dividend level is matched to Munters’ earnings level, financial
position and other factors that the Board of Directors considers
relevant against the background of the Group’s strategy and in consideration
of the prevailing market and business conditions. The
annual dividend shall consist of about half of the Group’s average net
earnings measured over a period of several years. The dividends for
the years 2006 and 2007 and the proposed dividend for 2008 correspond
to 43 percent of average earnings for the three years.
NOTE 4
Business combinations
Toussaint Nyssenne
As of October 30, 2008, Munters AB acquired 100 percent of the
Belgian company Ateliers Toussaint Nyssenne SA, including its
French subsidiary Toussaint Nyssenne International (T.N.I.) SA.
Toussaint Nyssenne manufactures high-quality customized air
treatment systems for offices, public buildings and industrial applications.
Its systems are very flexible and modular and provide
air treatment for a broad selection of demanding applications. The
company was consolidated as of October 1, 2008, which was
when the controlling influence was acquired. The acquired operations
contributed revenues of SEK 54 M and operating earnings of
SEK 3.5 M for the period from October 1, 2008 until December 31,
2008. If the acquisition had taken place on January 1, 2008, the
company would have contributed revenues of SEK 193 M with
operating earnings of slightly less than SEK 7 M.
Preliminary information about the acquired net assets and
goodwill on the acquisition date is provided below.
Munters Annual Report 2008

66 Notes
Purchase price
– cash purchase price paid 75
– fees directly attributable to the acquisition 4
Total purchase price paid 79
Additional purchase price – estimated 2
Total acquisition cost 81
Fair value of acquired net assets –48
Goodwill (Note 14) 33
Goodwill is attributable to anticipated future synergies and expansion
opportunities within product integration, technology and
distribution in the European market.
The acquired company’s preliminary net assets on the acquisition
date:
Carrying
value
Fair value
adjustment
Fair
value
Tangible fixed assets 7 0 7
Intangible assets – customer
relations and brand (Note 13) 0 18 18
Current assets 24 0 24
Non-interest-bearing receivables 67 0 67
Cash and cash equivalents 14 0 14
Interest-bearing liabilities –13 0 –13
Non-interest-bearing liabilities
(incl. deferred tax liabilities) –63 –6 –69
Net identifiable assets and liabilities 36 12 48
Cash purchase price paid plus fees
directly attributable to the acquisition 79
Cash and cash equivalents in the acquired
company –14
Change in the Group’s cash and
cash equivalents on acquisition 65
The distribution of acquisition values has not been finally determined
because the final negotiations with the sellers had not been
completed on December 31, 2008.
Munters-Form
As of April 30, 2008, 80 percent of the Turkish company Munters-
Form Endüstri Systemleri Sanayi ve Ticaret A.S. was acquired.
Munters Form is primarily active in the areas of dehumidification,
ventilation products for the agricultural sector and pre-coolers for
gas turbines. The company was consolidated as of May 1, 2008,
The acquired operations contributed revenues of SEK 37 M and
operating earnings of SEK 5 M for the period from May 1, 2008 to
December 31, 2008. If the acquisition had taken place on January
1, 2008, the company would have contributed revenues of SEK 46
M with operating earnings of SEK 6 M.
Information about the acquired net assets and goodwill on the
acquisition date is provided below.
Purchase price
– cash purchase price paid 21
– fees directly attributable to the acquisition 2
Total purchase price paid 23
Additional purchase price – estimated 7
Total acquisition cost 30
Fair value of acquired net assets –6
Minority share 1
Goodwill (Note 14) 25
Goodwill is attributable to anticipated future synergies and expansion
opportunities primarily within distribution in the region and
neighboring countries.
The acquired company’s net assets on the acquisition date:
Carrying
value
Fair value
adjustment
Fair
value
Intangible assets – customer
relations (Note 13) 0 5 5
Current assets 5 0 5
Non-interest-bearing receivables 4 0 4
Cash and cash equivalents 2 0 2
Non-interest-bearing liabilities
(incl. deferred tax liabilities) –9 –1 –10
Net identifiable assets and liabilities 2 4 6
Change in the Group’s cash and cash
equivalents on acquisition 21
Des Champs Technologies
The US company Des Champs Technologies was acquired on April
4, 2007. Munters acquired 100 percent of the shares in Entrodyne
Corporation, which is Des Champs’ holding company. The
company holds a technology-leading position in energy-efficient
air treatment solutions and principally manufactures custom air
treatment equipment for commercial buildings. The company was
consolidated from April 2007. The acquired operations contributed
revenues of SEK 196 M for the period April 1, 2007 to December
31, 2007. If the acquisition had occurred on January 1, 2007, the
company would have contributed SEK 245 M in revenues for the
Group in the preceding year.
Information about the acquired net assets and goodwill is
listed below:
Purchase price
– cash purchase price paid 225
– fees directly attributable to the acquisition 3
Total acquisition cost 228
Fair value of acquired net assets –57
Goodwill (Note 14) 171
The acquisition price for the company was SEK 254 M, of which SEK
29 M pertained to payments to options holders that were settled by
Des Champs Technologies prior to the acquisition. Goodwill is attributable
to estimated future synergies through product integration,
technology and distribution. In addition to synergy effects, the company’s
expertise in heat-exchanger technology and the company’s
future earning capacity represent components in the goodwill item.
The acquired company’s net assets on the date of acquisition:
Carrying
value
Fair value
adjustment
Fair
value
Tangible fixed assets 13 0 13
Intangible assets – brands and technology
(note 13) 0 48 48
Non-interest-bearing receivables 85 0 85
Cash and cash equivalents 5 0 5
Interest-bearing liabilities 0 0 0
Non-interest-bearing liabilities
(incl. deferred tax liabilities) –75 –19 –94
Net identifiable assets and liabilities 28 29 57
Changes in the Group’s cash and cash
equivalents at acquisition 223

Notes
67
Turbovent
The Danish companies Turbovent Agro A/S and Turbovent Environment
A/S were acquired on July 1, 2007. Munters acquired 100 percent
of both of the companies. Turbovent primarily manufactures
ventilation equipment for poultry, pigs and cattle in Scandinavia,
Germany and Eastern Europe. Turbovent is also in the forefront of
air-cleaning and odor-removal solutions for the agricultural industry.
The companies were consolidated from July 2007. The acquired
operations contributed revenues of SEK 58 M for the period July
1, 2007 to December 31, 2007. If the acquisition had occurred on
January 1, 2007, the companies would have contributed SEK 100 M
in revenues for the Group in the preceding year.
Information about the acquired net assets and goodwill is
listed below:
Purchase price
– cash purchase price paid 80
– fees directly attributable to the acquisition 2
Purchase price paid 82
Additional purchase price – estimated 3
Total acquisition cost 85
Fair value of acquired net assets –14
Goodwill (Note 14) 71
The additional purchase price pertains to estimated future royalties
and product-development subsidies to the seller. Goodwill is attributable
to estimated future synergies in product integration. In 2008,
goodwill was reduced by SEK 1 M as a result of an adjustment of
the purchase consideration following negotiations with the seller.
The acquired company’s net assets on the date of acquisition:
Carrying
value
Fair value
adjustment
Fair
value
Tangible fixed assets 4 0 4
Intangible assets – brands and
technology (note 13) 0 7 7
Non-interest-bearing receivables 28 0 28
Cash and cash equivalents 1 0 1
Interest-bearing liabilities –2 0 –2
Non-interest-bearing liabilities
(incl. deferred tax liabilities) –21 –3 –24
Net identifiable assets and liabilities 10 4 14
NOTE 5
Segment reporting
Munters is a global leader in energy-efficient air treatment solutions
and restoration services based on expertise in humidity and
climate-control technologies.
Divisions
The Group’s operations are managed and reported per division as
described below.
The Dehumidification division manufactures and markets products
and complete solutions for controlling humidity and improving
the indoor climate. The customers’ manufacturing processes and
warehousing become more efficient, and product quality, shelf life
and hygiene are improved.
The HumiCool division manufactures and markets products
and systems for evaporative cooling, heating and humidification
for the AgHort industry, as well as technology for mist elimination,
in part for cleaning of flue gas.
The MCS division provides service for water and fire damage
restoration and temporary climate control. Its comprehensive
service offering to the insurance industry results in lower costs
through dehumidification and restoration instead of rebuilding.
Division consolidation is performed according to the same
principles as for the Group as a whole. Transactions between
divisions are on market terms. No income statement items or
earnings are allocated to the divisions. Revenues from the largest
customer in the Dehumidification division correspond to about
SEK 140 M of the segment’s total revenues. Revenues from the
largest customer in the MCS division correspond to about SEK
111 M of the segment’s total revenues.
Geographic areas
The Group’s operations are also divided into three geographic
areas: Europe, Americas and Asia. Europe includes Europe, the
Middle East and Africa, Americas includes North America, Central
America and South America. Asia includes Asia excluding the
Middle East and including Australia.
Changes in the Group’s cash and cash
equivalents at acquisition 82
Munters Annual Report 2008

68 Notes
Divisions Dehumidification HumiCool MCS Eliminations etc. Total
2008 2007 2008 2007 2008 2007 2008 2007 2008 2007
Income statement
External net sales 2,025 1,881 1,738 1,758 2,807 2,623 – – 6,570 6,262
Internal net sales 26 55 5 7 2 1 –33 –63 – –
Net sales 2,051 1,936 1,743 1,765 2,809 2,624 –33 –63 6,570 6,262
Operating earnings 201 234 155 251 48 129 5 6 409 620
Amortization of surplus values and
impairment of goodwill –5 –4 –4 –3 –1 –3 – – –10 –10
Undistributed costs – – – – – – –37 –44 –37 –44
EBIT 196 230 151 248 47 126 –32 –38 362 566
Net financial items –77 –40
Taxes –120 –190
Net earnings 165 336
Balance sheet
Operating assets 855 672 787 764 1,028 1,040 79 61 2,749 2,537
Goodwill 233 163 556 458 189 173 – – 978 794
Participations in associated companies – – 2 2 – – – – 2 2
Other assets – – – – – – 885 529 885 529
Total assets 1,088 835 1,345 1,224 1,217 1,213 964 590 4,614 3,862
Operating liabilities 265 191 206 267 174 145 0 –8 645 595
Other liabilities – – – – – – 2,684 2,065 2,684 2,065
Total liabilities 265 191 206 267 174 145 2,684 2,057 3,329 2,660
Other data
Investments 37 52 35 42 88 129 7 1 167 224
Depreciation and impairments 25 24 39 39 93 86 5 3 162 152
No. of permanent employees at year-end 1,301 1,180 866 924 1,944 1,918 21 21 4,132 4,043
Geographic areas Europe Americas Asia Eliminations, etc. Total
2008 2007 2008 2007 2008 2007 2008 2007 2008 2007
Net sales 4,055 3,838 2,145 2,041 562 510 –192 –127 6,570 6,262
Operating assets 1,628 1,586 830 637 273 250 18 64 2,749 2,537
Operating liabilities 407 379 199 159 61 73 –22 –16 645 595
Investments 105 129 36 70 19 25 7 – 167 224
No. of permanent employees at year-end 2,658 2,516 1,021 1,108 429 397 24 22 4,132 4,043

Notes
69
NOTE 6
Other operating income and operating expenses
Impairment of acquisition-related assets totaled 10 (7) and is
included in the item Selling costs.
Other operating income
Group Parent Company
2008 2007 2008 2007
Divestment of operations 3 – – –
Reversal of provisions 7 – – –
Other 1 0 – –
Royalty from subsidiaries – – 2 2
Other operating expenses
11 0 2 2
Impairment of participations
in associated companies – –2 – –
Goodwill impairment – –1 – –
Loss on divestment of
fixed assets –1 – – –1
Reversal of provisions –2 –1 – –
Exchange-rate differences – –2 1 –
–3 –6 1 –1
Divestment of operations pertains to the Swedish business unit
Fire and Restoration Operations, which was divested in 2008.
Impairment of inventories
Impairment of inventories totaled 12 (12) and is included in the
item Cost of goods sold. There were no reversals of previous
impairments.
NOTE 8
Leasing
Operating leases
The year’s costs for operating leases of assets, such as leased
premises, machinery and major computer and office equipment are
reported as operating costs and amounted to SEK 206 M (180).
Minimum future costs for non-revocable operating lease contracts
have the following maturity.
2009 170
2010–2013 290
2014 and later 36
Most of the vehicles used in service operations are currently classified
as operating leases.
496
NOTE 7
Depreciation and impairments
Amortization and depreciation of intangible and tangible assets
are based on the historical acquisition cost and the estimated useful
lives of various types of assets. For assets acquired during the
year, depreciation or amortization is calculated from the acquisition
date. Depreciation and amortization are deducted primarily
straight-line over the following useful lives.
Improvement measures in leased premises
Research and development work
Equipment within MCS operations
Patents, licenses and brands
Machinery and equipment
Buildings
Land lease
3–7 years
5 years
6 years
3–10 years
3–10 years
20–33 years
50 years
The useful life of acquired brands is based on the number of years
that the brand is estimated to contribute revenues to the Group in
its current form. The remaining useful lives for the brands are five
years and six months, seven years and 11 months, eight years and
three months, and nine years and nine months.
Goodwill impairment is reported among other operating expenses.
See also Note 14.
Depreciation, amortization and impairments for the year were
charged against the income statement as shown below.
Group Parent Company
2008 2007 2008 2007
Cost of goods sold 127 116 – –
Selling costs 17 13 – –
Administrative costs 22 21 6 3
Research and development
costs 1 1 – –
Other operating expenses – 1 – –
167 152 6 3
Financial leases
Assets held through financial lease contracts are reported as
equipment. The year’s total payments relating to the assets
amounted to SEK 6 M (6). Depreciation during the year amounted
to SEK 6 M (5).
Assets held under a finance lease refer primarily to vehicles.
The minimum lease fee comprises a capital portion and an interest
portion. The interest portion is variable and follows market interest
rates prevailing in each country.
Assets held under a financial lease are reported as equipment
in the following amounts:
2008 2007
Acquisition cost – capitalized financial leases 38 26
Accumulated depreciation –21 –13
Carrying amount 17 13
Liabilities pertaining to financial leases –
minimum lease fees 2008 2007
Within one year 7 5
Between one and five years 10 8
17 13
Future financial costs for financial leases –2 –3
Present value of future minimum lease fees 15 10
Present value of financial lease liabilities
Within one year 6 3
Between one and five years 9 7
15 10
Munters Annual Report 2008

70 Notes
NOTE 9
Financial income and expenses
Group Parent Company
Financial income 2008 2007 2008 2007
Dividends from subsidiaries – – 250 258
Income from liquidation – – 20 –
Interest income, subsidiaries – – 70 60
Interest income, other 7 8 1 1
Exchange-rate differences 1 6 – 6
Financial expenses
8 14 341 325
Interest expenses, subsidiaries – – –1 –1
Interest expenses, other –73 –44 –68 –40
Other financial expenses –12 –10 –2 –1
–85 –54 –71 –42
Total financial income
and expenses –77 –40 270 283
Group
Deferred tax assets 2008 2007
Machinery and equipment 8 9
Inventory 13 13
Accounts receivable 29 10
Prepaid expenses and accrued income 0 1
Provisions 3 3
Accrued expenses and deferred income 35 29
Derivative instruments 0 0
Loss carryforwards 15 10
Provisions for pensions 23 14
Other 2 0
Offsetting –2 –27
126 62
Deferred tax assets for pension provisions pertain to the difference
between the calculation of defined-benefit pension obligations
according to local tax rules and IAS 19 Employee Benefits.
NOTE 10
Income taxes
Group Parent Company
2008 2007 2008 2007
Current tax expense 134 187 –14 –4
Tax relating to prior years/
withholding tax
4 –2 – –
Deferred tax related to temporary
differences and loss
carryforwards –22 –2 2 –
Non-income-related taxes 4 7 – –
Tax expenses reported in
the income statement 120 190 –12 –4
Tax items recognized
directly in equity
Deferred tax attributable to
pensions 11 0
Reconciliation of effective tax
Earnings before tax 285 526 228 242
Tax according to prevailing tax
rate for the Parent Company 79 146 64 67
Difference attributable to
foreign tax rates 25 32 – –
Non-deductible expenses 17 17 0 0
Non-taxable income –5 –12 –76 –71
Non-income-related taxes 4 7 – –
Tax relating to prior years/
withholding tax 4 –2 – 0
Other –4 2 0 –
Tax expenses 120 190 –12 –4
Group
Deferred tax liabilities 2008 2007
Buildings 4 5
Machinery and equipment 16 15
Technology 8 8
Brands 25 19
Goodwill 6 5
Inventories 0 0
Untaxed reserves 11 11
Provisions 11 6
Other 8 5
Offsetting –2 –27
87 47
Deferred tax assets relating to unutilized loss carryforwards are
reported to the extent that it is deemed likely that they will be used
to offset taxable surpluses. The unutilized loss carryforwards
amounted to SEK 53 M (33) at year-end, of which SEK 43 M (27)
was unlimited in time and SEK 10 M (5) expires between 2009
and 2013. Loss carryforwards for which deferred tax assets are
not reported amounted to SEK 6 M (5), of which SEK 1 M (0) was
unlimited in time and SEK 5 M (5) expires between 2009 and 2013.
Loss carryforwards totaling SEK 47 M (28) were thus suitable for
reporting as deferred tax assets.
Deferred tax income attributable to changed tax rates in Sweden
amounted to an expense of SEK 1 M for 2008. This amount is
included in the item Other.

Notes
71
NOTE 11
Earnings per share
NOTE 12
Tangible assets
Group
2008 2007
Net earnings, attributable to shareholders
in the Parent Company 163 332
Weighted average number of outstanding
shares, 000s 73,933 73,898
– outstanding shares after dilution, 000s 73,933 73,913
Earnings per share, SEK 2.21 4.49
– after dilution 2.21 4.49
The number of shares and earnings per share are restated with respect to the 4:1
share split, redemption and the bonus issue that were implemented in 2007.
Earnings per share (before dilution) are calculated by dividing the
net earnings attributable to shareholders in the Parent Company
with the weighted average number of outstanding shares during
the year.
In the calculation of earnings per share after dilution, the
average number of outstanding shares is adjusted for the dilution
effect of all potential shares. Munters has only stock options that
entail a dilution effect. For such options, a calculation is made of
the number of shares that could have been purchased at fair value
(calculated as the average share price for the year) at an amount
corresponding to the monetary value of the subscription rights
associated with the outstanding stock options. The difference in
value between the number of shares that would have been sold
under the assumption that the stock options were utilized and the
number of shares that would have been sold at the average share
price during the period is treated as an issue of shares without
payment. The weighted average number of shares is increased by
the corresponding number of shares.
The option program from May 2004, which began to mature
during 2007, resulted in a marginal dilution effect in 2007. The
remaining option program will not result in a dilution effect, since
the issue price exceeds the average share price during the year.
Group
Acquisition cost
Buildings
and
land
Plant
and
machinery
Equipment,
tools,
fixtures and
fittings
Construction
in
progress
Amount on January 1 310 592 983 22
Acquisition of subsidiaries
(note 4) – 1 5 –
Capital expenditure for
the year 5 40 83 24
Sales and scrapping – –29 –53 –1
Reclassifications 20 –1 15 –35
Translation differences for
the year 37 64 116 2
Amount on December 31 372 667 1 149 12
Accumulated depreciation
Amount on January 1 138 448 721 –
Acquisition of subsidiaries
(note 4) – – 1 –
Sales and scrapping – –24 –51 –
Reclassifications – –3 2 –
Depreciation for the year 10 43 92 –
Impairment for the year – 5 – –
Translation differences for
the year 15 49 90 –
Amount on December 31 163 518 855 –
Closing carrying amount 209 149 294 12
Parent Company
Acquisition cost
Equipment, tools,
fixtures and fittings
Amount on January 1 31
Capital expenditure for the year 8
Sales and scrapping –1
Amount on December 31 38
Accumulated depreciation
Amount on January 1 11
Depreciation for the year 3
Amount on December 31 14
Closing carrying amount 24
Depreciation is based on the asset’s acquisition cost and the
estimated useful lives as specified in Note 7.
The carrying amount of land amounted to SEK 27 M (25).
Taxation values of buildings in Sweden amounted to SEK 15 M
(15). The taxation value of land in Sweden amounted to SEK 2 M (2).
Munters Annual Report 2008

72 Notes
NOTE 13
Patents, licenses, brands and similar rights
NOTE 14
Goodwill
Group
Acquisition cost
Brands
Technology
Other
intangible
assets
Total
Amount on January 1 55 24 71 150
Acquisition of subsidiaries (note 4) 13 – 10 23
Capital expenditure for the year – – 10 10
Translation differences for the year 11 4 6 20
Amount on December 31 79 28 97 203
Accumulated amortization
Amount on January 1 5 2 33 40
Acquisition of subsidiaries (note 4) – – – –
Amortization for the year 7 3 6 16
Translation differences for the year 1 – 3 4
Amount on December 31 13 5 42 60
Closing carrying amount 66 23 55 143
Brands
This item includes the brands Sial in the amount of SEK 24 M,
Des Champs Technologies, SEK 26 M, Turbovent, SEK 2 M and
Toussaint Nyssenne, SEK 14 M, which were valued when these
operations were acquired.
Technology
This item includes ventilation and air treatment systems for
commercial buildings in the amount of SEK 18 M, and ventilation
and air cleaning technology in the amount of SEK 5, which was
received and valued in conjunction with the acquisitions of Des
Champs Technologies and Turbovent.
Other intangible assets
Other intangible assets include SEK 3 M relating to patents, SEK
33 M relating to capitalized development expenses for business
and Group accounting systems, as well as SEK 6 M relating to a
lease in China. Customer relations were valued at SEK 5 M in the
acquired companies Munters Form and Toussaint Nyssenne in
conjunction with the acquisitions.
Parent Company
Acquisition cost
Other intangible assets
Amount on January 1 18
Capital expenditure for the year 4
Amount on December 31 22
Accumulated amortization
Amount on January 1 1
Amortization for the year 3
Amount on December 31 4
Closing carrying amount 18
Investments for the year primarily refer to Field.Link, a mobile IT
system in the MCS division that was launched in 2008.
Carrying amount before impairments
2008 2007
Amount on January 1 798 546
Acquisition of subsidiaries (note 4) 64 240
Exchange-rate differences for the year 120 12
Amount on December 31 982 798
Accumulated impairments
Amount on January 1 4 3
Impairments for the year – 1
Amount on December 31 4 4
Closing carrying amount 978 794
Recognized goodwill value per
cash-generating unit 2008 2007
Dehumidification, US 193 161
Dehumidification, Belgium 37 –
MCS, Australia 4 4
MCS, Germany 112 96
MCS, Norway and Denmark 68 73
MCS Sweden 6 –
HumiCool Aerotech, US 50 42
HumiCool, Italy 398 345
HumiCool, Denmark 80 71
HumiCool Turkey 28 –
Other 2 2
978 794
Impairment
During 2007, an impairment was recognized of the entire goodwill
value of SEK 1 M attributable to a Swedish operation in the MCS
division due to the divestment of this operation. No impairment
was recognized in 2008.
Impairment testing of goodwill values
On September 30, 2008, carrying amounts of goodwill were
subjected to routine impairment testing. The assessments were
carried out for each individual cash-generating unit. The valuation
was based on the discounted future cash flow. This encompasses
forecasts, approved by Group management and the Board, for the
next three years. The growth rate after the three years has been
cautiously estimated at 2 percent. In the calculations, a discount
rate that is a nominal rate for the Group (Weighted Average Cost
of Capital before tax) was used. It was determined as 11.0 percent
(12.4). The most significant assumptions pertain to sales growth,
the trend in the operating margin, utilization of operating capital
employed and the discount rate.
The recoverable value was found to exceed the carrying
amounts. Consequently, no impairment was necessary. The total
value in use for the cash-generating units exceeded the carrying
amount by a factor of 2.4. A 2.9-percentage-point increase in
the discount rate is required for it to be necessary to recognize
an impairment loss in one unit. For the other units, a significantly
larger increase in the discount rate is required before it is necessary
to recognize an impairment loss. Against the background of
changed market prerequisites and financial turmoil, an additional
assessment of some larger units was performed per December
31, 2008. The recovery value was found to exceed the carrying
values. There was no other indication of a decline in value.

Notes
73
Acquisition of operations
The cash-flow statement shows the impact on cash and cash
equivalents with respect to acquired operations. During 2008,
the cash-flow impact pertained to the cash payments and direct
expenses attributable to the acquisitions of Toussaint Nyssenne,
Västgöta Torkteknik and Munters Form, and the payments of additional
purchase prices for Sial that were previously reported as
liabilities in conjunction with the acquisition.
NOTE 15
Participation in subsidiaries
NOTE 16
Aerotech Asia
Inc Co
Participation in associated companies
Percentage,
%
Acquisition
value
Carrying
value in
the Group
Share in
earnings
2008
Country
British Virgin
Islands 50 4 2 –
No business activities were conducted in the Company. The carrying
value in the Group corresponds to the estimated recovery value
in conjunction with a possible future liquidation of the company.
Direct shareholdings
Percentage,
Carrying
Country
% amount
AB Carl Munters
Sweden 100 169
(corp. reg. no. 556035-1198)
Munters Beteiligungs GmbH Germany 100 4
Munters BV Netherlands 100 0
Munters Corporation US 100 2
Munters France SAS France 100 45
Munters Group Ltd UK 100 0
Munters Italy SpA Italy 100 87
Munters Korea Co Ltd South Korea 100 0
Munters Ltd UK 100 154
Munters (Thailand) Co Ltd Thailand 100 1
Polygon AS Norway 100 249
Polygon A/S Denmark 19 1
Ateliers Toussaint Nyssenne SA Belgium 100 79
791
Indirect shareholdings in subsidiaries
with significant business operations Country
Percentage,
%
Munters AG Switzerland 100
Munters Air Treatment Equipment
(Beijing) Co Ltd China 100
Munters A/S Denmark 100
Munters Austria GmbH Austria 100
Munters Brasil Industria e Comércio Ltda Brazil 100
Munters de Mexico S de RL de CV Mexico 100
Munters Euroform GmbH Germany 100
Munters Europe AB (corp.reg.nr. 556380-3039) Sweden 100
Munters-Form Endüstri Sistemleri
Sanayi ve Ticaret A.S. Turkey 80
Munters GmbH Germany 100
Munters Inc Canada 100
Munters India Humidity Control Private Ltd India 100
Munters KK Japan 100
Munters Mist Eliminator (Beijing) Co Ltd China 100
Munters NV Belgium 100
Munters Oy Finland 100
Munters Poland Sp zoo Poland 100
Munters Pte Ltd Singapore 100
Munters (Pty) Ltd South Africa 100
Munters Pty Ltd Australia 100
Munters Service GmbH Germany 100
Munters Services France SAS France 100
Munters Spain SAU Spain 100
Munters Torkteknik AB (corp.reg.nr. 556034-6164) Sweden 100
Polygon A/S Denmark 56
Turbovent Agro A/S Denmark 100
NOTE 17
Prepaid expenses and accrued income
Group Parent Company
2008 2007 2008 2007
Prepaid rent and leases 9 6 1 1
Prepaid insurance premiums 8 8 – –
Other items 100 51 11 5
NOTE 18
Financial instruments
117 65 12 6
Munters’ financial risks and how they are managed are described
in Note 3 Financial instruments recognized as financial assets and
financial liabilities.
Derivative instruments
At the end of the year, there were currency hedges within the
Group according to the table below. They were reported at fair
value in the balance sheet.
Currency
Net sales amount in
local currency, 000s
Carrying amount,
SEK 000s
EUR –3,919 –123
USD 4,286 –1,400
GBP 50 122
DKK 2,250 –148
JPY –247,156 191
PLN –850 –21
AUD 102 –4
SGD 146 –18
Total –1,401
Negative net sales amounts refer to purchasing and positive net
sales amounts refer to selling.
All forward contracts fall due for payment during 2009.
Fair value of financial instruments
The carrying amounts of interest-bearing assets and liabilities in
the balance sheet may deviate from their fair value due to such
reasons as changes in market interest rates. The interest period
for the Group’s external loans is short. The fair value of such financial
instruments as accounts receivable, accounts payable and
other non-interest-bearing financial assets and liabilities, which
are reported at accrued acquisition cost with deductions for any
impairment, is deemed to correspond to the carrying amount due
to the short terms of these instruments.
Munters Annual Report 2008

74 Notes
Categories of assets and liabilities
Group
2008
Assets
Currency derivatives
to which
hedge accounting
of cash flow
is not applied
Loan and
accounts
receivables
Nonfinancial
assets
Total
Tangible assets – – 664 664
Intangible assets – – 1,121 1,121
Other fixed assets – 20 128 148
Inventories, etc. – – 589 589
Accounts receivable – 1,354 – 1,354
Prepaid expenses and
accrued income – – 117 117
Derivative instruments 1 – – 1
Other current receivables – 71 59 130
Cash and cash equivalents – 490 – 490
1 1,935 2,678 4,614
2007
Assets
Tangible assets – – 600 600
Intangible assets – – 904 904
Other fixed assets – 19 64 83
Inventories, etc. – – 536 536
Accounts receivable – 1,292 – 1,292
Prepaid expenses and
accrued income – – 65 65
Derivative instruments 0 – – 0
Other current receivables – 58 48 106
Cash and cash equivalents – 276 – 276
0 1,645 2,217 3,862
2008
Currency derivatives
to which
hedge accounting
of cash flow
is not applied
Other
financial
liabilities
Nonfinancial
liabilities Total
Liabilities
Interest-bearing liabilities – 1,694 – 1,694
Provisions – – 277 277
Accounts payable – 537 – 537
Accrued expenses and
deferred income – 386 44 430
Derivative instruments 2 – – 2
Other liabilities – 143 246 389
2 2,760 567 3,329
2007
Liabilities
Interest-bearing liabilities – 1,200 – 1,200
Provisions – – 231 231
Accounts payable – 496 – 496
Accrued expenses and
deferred income – 353 24 377
Derivative instruments 1 – – 1
Other liabilities – 136 219 355
1 2,185 474 2,660
NOTE 19
Equity
Share capital
The share capital of SEK 131,250,000 comprises 75,000,000
fully paid shares, each with a par value of SEK 1.75. Each share
entitles the holder to one vote at General Meetings. There is one
class of share. All shares carry the same right to a share in the
Company’s assets and profits. Each share entitles the holder to
one vote at General Meetings with no limitations. There are no
limitations to the transferability of the share under law or according
to the Articles of Association.
Reserves
Reserves for
unrealized gains
Reserves for
exchange-rate
differences
Total
reserves
January 1, 2007 2 –48 –46
Cash-flow hedges –1 – –1
Exchange-rate differences – 10 10
December 31, 2007 1 –38 –37
Cash-flow hedges –1 – –1
Exchange-rate differences – 137 137
December 31, 2008 0 99 99
The reserve for unrealized gains consists of the portion of gains
and losses attributable to cash-flow hedges that are classified as
effective.
The reserve for exchange-rate differences consists of differences
that arise when the income statements and balance sheets
of foreign subsidiaries are translated into Swedish kronor.
Holding of treasury shares
In order to cover its commitments for outstanding option programs,
the company has acquired treasury shares.
Number
Par value, SEK
January 1, 2007 1,215,750 2,127,563
Sales in 2007 –148,800 –260,400
December 31, 2007 1,066,950 1,867,163
Sales in 2008 – –
December 31, 2008 1,066,950 1,867,163
During 2008, there were no purchases or sales of treasury shares.
In total, treasury shares were acquired for a purchase price of SEK
56,983,367 corresponding to an average price including commission
of SEK 53.41 per share.
Number of outstanding shares
Excluding treasury shares, the number of outstanding shares at
year-end amounted to 73,933,050.
Options program
Outstanding options programs are described in Note 29.
Dividend during the year
The Annual General Meeting on April 22, 2008 approved the
proposal of the Board of Directors and the President of a dividend
amounting to SEK 2.50 per share, or SEK 184,832,625 in total.
Proposed dividend
The Board of Directors and the President propose to the Annual
General Meeting that no dividend be paid to shareholders for 2008.

Notes
75
Changes in equity
Attributable to the Parent Company shareholders
Group Share capital Reserves Profit brought forward Total
Minority
interest
January 1, 2007 125 –46 1,421 1,500 6 1,506
Cash-flow hedges, net – –1 – –1 – –1
Exchange-rate differences in translation
of foreign subsidiaries – 10 – 10 – 10
Actuarial gains and losses, net, including
special employers’ contribution – – 3 3 – 3
Total income and expenses recognized
directly in equity – 9 3 12 – 12
Net earnings – – 332 332 4 336
Total income and expenses – 9 335 344 4 348
Sales of treasury shares – – 11 11 – 11
Bonus issue 6 – –6 0 – 0
Redemption of treasury shares – – –494 –494 – –494
Dividend to Parent Company shareholders – – –166 –166 – –166
Dividend from subsidiaries – – – – –3 –3
December 31, 2007 131 –37 1,101 1,195 7 1,202
Total
equity
Attributable to the Parent Company shareholders
Minority Total
Group Share capital Reserves Profit brought forward Total interest equity
January 1, 2008 131 –37 1,101 1,195 7 1,202
Cash-flow hedges, net – –1 – –1 – –1
Exchange-rate differences in translation
of foreign subsidiaries – 137 – 137 – 137
Actuarial gains and losses, net, including
special employers’ contribution – – –31 –31 – –31
Total income and expenses recognized
directly in equity – 136 –31 105 – 105
Net earnings – – 163 163 2 165
Total income and expenses – 136 132 268 2 270
Dividend to Parent Company shareholders – – –185 –185 – –185
Dividend from subsidiaries – – – – –2 –2
December 31, 2008 131 99 1,048 1,278 7 1,285
NOTE 20
Interest-bearing liabilities
NOTE 21
Provisions for pensions and
similar commitments
Group Parent Company
2008 2007 2008 2007
Syndicated credit facility 1,637 1,137 1,637 1,137
Other bank loans 16 31 – –
Long-term liabilities 1,653 1,168 1,637 1,137
Other short-term credit facilities 26 22 – –
Lease obligation 15 10 – –
Current liabilities 41 32 0 0
Munters’ borrowing from banks comprises a syndicated credit
facility and bank loans to subsidiaries granted on an individual
basis. The syndicated credit facility amounts to SEK 2,000 M and
extends until 2012. Further information is provided in Note 3.
Group 2008 2007
Long-term defined-benefit commitments to
employees 177 134
Other long-term employee benefits 14 14
Other benefits to employees 17 14
Long-term 208 162
Short-term defined-benefit commitments to
employees 9 10
Short-term 9 10
Total provisions for pensions and
similar commitments 217 172
Long-term defined-benefit commitments to
employees
177 134
Other long-term employee benefits 14 14
Short-term defined-benefit commitments to
employees 9 10
Reported provisions in accordance
with IAS 19 200 158
Munters Annual Report 2008

76 Notes
The Munters Group finances pension plans for employees in several
countries. These plans mainly follow practice in the country
in question and may be defined-contribution or defined-benefit
plans or a combination of both. The largest defined-benefit plans
cover employees in Sweden, Norway, the UK and Germany. In
France and Italy, the companies make provisions for mandatory
remuneration when employment is terminated.
Munters applies the alternative that IAS 19 allows, namely that
actuarial gains and losses are recognized directly in equity in the
period they occurred to the extent that they refer to remuneration
after employment has been terminated. Actuarial losses
amounted to SEK 40 M (gain: 2) for the period. The accumulated
net loss amounted to SEK 71 M (33), which is included in the reported
pension debt. The actuarial loss during 2008 was primarily
due to significantly lower discount rates than on the preceding
valuation date in 2007.
Other long-term employee benefits include employees in
Germany.
The defined-contribution plans include primarily retirement
pensions, disability pensions and family pensions. The premiums
are paid continuously during the year by each Group company to
separate legal entities, for example, insurance companies. The
size of the premium is based on salary. The cost for definedcontribution
plans for the year amounts to SEK 75 M (67).
Recognized provisions (changes for the year) 2008 2007
Amount on January 1 158 156
Pension costs 14 15
Actuarial losses(+)/gains(–) 40 –2
Benefits paid by employer –13 –12
Premiums paid by employer –1 –1
Company acquisitions 0 0
Terminated and changed benefit plans 0 0
Exchange-rate differences for the year 2 2
Amount on December 31 200 158
Reported provisions (on closing date)
Present value of wholly or partially funded obligations 73 71
Present value of unfunded obligations 178 155
Market value of plan assets (–) –51 –68
Amount on December 31 200 158
Present value of defined-benefit obligations
Amount on January 1 226 223
Benefits earned during the year 6 5
Interest expenses 11 9
Paid benefits –15 –16
Company acquisitions 0 0
Terminated and changed benefit plans 0 0
Actuarial gains(-)/losses(+) – changes in
assumptions 24 –2
Actuarial losses – experience-based adjustments 3 3
Exchange-rate differences for the year –4 4
Amount on December 31 251 226
Plan assets
Amount on January 1 68 67
Expected return on plan assets –10 3
Premiums paid by employer 1 1
Benefits paid from plan assets –1 –4
Terminated and changed benefit plans 0 0
Exchange-rate differences for the year –7 1
Amount on December 31 51 68
Return on plan assets 2008 2007
Expected return on plan assets –10 3
Costs for obligations during the year –
defined-benefit plans
Benefits earned during the year 6 5
Interest expenses 11 9
Expected return on plan assets –4 –4
Amortization of previously earned benefits 0 1
Amortization of unrecognized actuarial gains and
losses on other long-term employee benefits
1 5
Terminated and changed benefit plans 0 –1
Costs for obligations during the year –
defined-benefit plans 14 15
Pension costs for defined-contribution plans 75 67
Distribution of pension costs in the
income statement
Administrative costs 78 73
Financial expenses 11 9
Total pension costs 89 82
Statement of income and expense
reported in the Group
Actuarial gains(+)/losses(–) during the year –40 2
Effects of limitation on assets par. 58 (b) 0 0
Accumulated actuarial losses –71 –33
Actuarial gains (+) and losses (–)
recognized directly in equity
Amount on January 1 –33 –35
Amortization of actuarial gains during the year 1 4
Actuarial losses on obligations –27 –1
Actuarial losses/gains on plan assets –14 –1
Terminated and changed benefit plans 0 0
Exchange-rate differences for the year 2 0
Accumulated –71 –33
Plan assets
Equity instruments, % 36 55
Debt instruments, % 48 33
Property, % 9 6
Other assets (cash and cash equivalents), % 7 6
No portion of plan assets in 2008 or 2007 was invested in the
Company’s own equity instruments, debt instruments, properties
or other assets utilized by the Company.
Significant actuarial assumptions Group,
weighted values
Discount rate, % 3.9 4.8
Return on plan assets, % 5.5 6.5
Future salary increases, % 2.6 3.2
Future inflation, % 1.9 1.8
The expected return for plan assets is based on the assumption
that the return on bonds will be equal to the interest for a 10-year
government bond and that the return on shares will amount to the
same interest plus a risk premium.

Notes
77
2008 2007 2006 2005 2004
Present value of definedbenefit
obligations 251 226 223 212 183
Fair value of plan assets –51 –68 –67 –71 –65
Net value funded and
partly funded plans 200 158 156 141 118
Experience-based adjustments 2008 2007 2006
Plan liabilities 3 3 9
Plan assets –14 –1 2
Net experience-based adjustments –11 2 11
Munters’ budgeted fees for defined-benefit obligations amount to
SEK 16 M for 2009.
Parent Company
2008 2007
Defined-benefit obligations to employees 39 37
NOTE 22
Other provisions
Provisions for
legal disputes
Warranty
provisions
Other
provisions
Total
On January 1, 2008 1 55 3 59
– Additional provisions – 29 – 29
– Reversed, unutilized
amounts – –17 – –17
Exchange-rate differences – 9 0 9
Utilized during the year – –17 –2 –19
On December 31, 2008 1 59 1 61
Provisions comprise: 2008 2007
Long-term portion 2 3
Short-term portion 59 56
61 59
2008 2007
Net liability attributable to the Company’s own
pension obligations on January 1 37 35
Costs excluding taxes that were charged against
earnings 3 3
Payment of pensions –1 –1
Capital value, calculated at present value,
of the Company’s own pension obligations
on December 31 39 37
Obligations that are wholly or partly offset by
separated assets 0 0
Obligations for which there are no separated assets 39 37
Total 39 37
Recognized pension costs for the period 2008 2007
The Company’s own pensions
Costs excluding interest expenses 3 3
Costs for the Company’s own pensions,
excluding taxes 3 3
Insured pensions
Insurance premiums 3 4
Costs for insured pensions, excluding taxes 3 4
Recognized net costs, excluding taxes,
attributable to pensions 6 7
NOTE 23
Accrued expenses and deferred income
Group Parent Company
2008 2007 2008 2007
Vacation pay liabilities 109 86 3 2
Social security expenses 45 24 5 3
Other personnel-related expenses 94 95 1 1
Received, non-invoiced goods, etc. 182 172 6 4
NOTE 24
430 377 15 10
Pledged assets and contingent liabilities
Pledged assets for liabilities
to credit institutes
Group Parent Company
2008 2007 2008 2007
Corporate mortgages – 4 – –
Other pledged assets 1 1 – –
Contingent liabilities
1 5 – –
FPG guarantees 2 2 73 69
Bank guarantees – – 40 24
Parent Company guarantees – – 13 17
Other 0 1 – –
2 3 126 110
Reported net costs are recognized as an operating expense in
their entirety.
The net discount rate applied was 4.50 percent and the
commitments are calculated on salary levels on the closing date.
Expected payments for defined-benefit pension plans for the next
year amount to slightly less than SEK 3 M. Fees to the FPG/PRI
system for 2009 are estimated to be approximately SEK 3 M.
FPG guarantees refer to pension liabilities in Sweden. Other guarantees
are normal operational guarantees, for example, advances
and completion guarantees.
Legal proceedings
The most significant legal processes are attributable to Munters’
subsidiary in the US. As of December 31, 2008, the company was
named co-respondent in 52 (51) asbestos-related cases. To date,
none of the plaintiffs have claimed to have been exposed to any
specific Munters product. In the past few years, Munters Corporation
has won four cases through summary judgments, meaning
that these cases are now closed. Munters Corporation is of the
firm opinion that the remaining claims are unfounded, and it will
strongly dispute every claim. Munters Corporation has protection
for the asbestos-related claims by having taken out several
insurance policies. Under the condition of certain reservations,
Munters Annual Report 2008

78 Notes
the insurance companies have confirmed that, until further notice,
they will pay a significant portion of the defense expenses.
For a period of time, a product within the Dehumidification
division in the US suffered from a specific component fault. The
reason for the fault was identified during 2008 and was attributable
to a component supplied by a third party. Munters has
initiated legal proceedings against the third party and is confident
that it will be able to obtain compensation for a large part of the
guarantee costs that arose due to the fault. Munters’ costs for addressing
these faults were charged against earnings as they were
incurred. Estimated compensation from the legal process has not
been recognized as revenue in accordance with IAS 37 Provisions,
Contingent Liabilities and Contingent Assets.
Munters does not believe that any of the claims mentioned
above will have any significant negative impact on the Company’s
financial position or operating results.
Munters is also involved in a small number of commercial disputes.
None of these disputes is deemed to have any major negative
impact on the Company’s financial position or operating results.
NOTE 25
Transactions with related parties
There are no significant contractual relations or transactions between
Munters AB and related parties. Remuneration and terms
of employment for senior executives and individual members of
the Board of Directors are presented in Notes 28 and 29. Munters
AB has not provided guarantees or guarantee commitments to
or on behalf of Board members or senior executives. During the
current or the preceding fiscal years, no member of the Board of
Directors or senior executive was directly or indirectly involved in
any business transaction with the Company that is or was unusual
in nature or with respect to its terms or that in any respect remains
unsettled or incomplete.
The Parent Company’s sales to Group companies amounted
to SEK 51 M (51). Purchases from Group companies amounted to
SEK 22 M (15).
NOTE 26
Average number of employees, absence
due to illness, gender distribution
Average no. of employees 2008 2007
Group
Number
Of which
men, %
Number
Of which
men, %
Australia 135 71 133 73
Austria 71 81 81 83
Belgium 86 90 68 85
Brazil 44 91 26 88
Canada 14 86 14 86
China 161 79 159 79
Denmark 147 70 141 70
Finland 369 88 311 89
France 82 84 74 83
Germany 564 85 568 84
India 9 78 2 50
Indonesia 1 100 1 100
Ireland 5 60 8 63
Italy 276 81 277 79
Japan 53 89 52 90
Korea 15 80 11 82
Mexico 99 82 129 86
Netherlands 127 90 107 88
New Zealand 4 77 3 67
Norway 244 68 253 70
Poland 15 73 13 77
Russia 2 100 2 100
Saudi Arabia 3 100 3 100
Singapore 17 76 17 76
South Africa 32 78 28 75
Spain 15 47 13 62
Sweden 390 83 378 84
Switzerland 19 89 20 90
Taiwan 2 50 1 0
Thailand 24 67 27 70
Turkey 10 50 – –
United Arab Emirates 2 100 2 100
United Kingdom 315 74 342 78
US 938 82 1,001 82
Vietnam 3 67 3 67
4,291 81 4,268 81
Of which Parent Company
(Sweden) 30 67 24 64
Absence due to illness
Absence due to illness among employees of Munters AB during
the year amounted to 2.64 percent (4.17) of the employees’ normal
working time, of which absence due to illness for > 60 consecutive
days accounted for 1.2 percent (3.47). Of total absence due to
illness, 2.17 percent pertained to men and 0.47 percent to women.
Information according to the Annual Accounts Act on absence
due to illness for different groups of employees is not provided,
since the number of employees per group was less than ten.
Gender distribution among Company Management
At year-end, the Board of Directors consisted of eight men and
two women. The Group management, including the President of
the Parent Company, consisted entirely of men. Presidents of the
subsidiaries included in the Group were also 100 percent men.

Notes
79
NOTE 27
Wages, salaries and other remuneration
and social security expenses
NOTE 28
Remuneration to Board members
and senior executives
2008 2007
Salaries
and other Social
remuneration
security
expenses
Salaries
and other Social
remu- security
neration expenses
Parent Company 28 16 23 15
of which, pension expenses – 6 – 6
Subsidiaries 1,578 367 1,502 332
of which, pension expenses – 84 – 76
Group 1,606 383 1,525 347
of which, pension expenses – 89 – 82
Group 2008 2007
President
and Board
of Directors
Of which
variable
remuneration
Other
employees
President
and Board
of Directors
Of which
variable
remuneration
Other
employees
Australia 1 – 46 1 0 44
Austria – – 29 – – 27
Belgium 2 0 37 – – 30
Brazil 1 0 11 – – 13
Canada 0 – 6 0 – 7
China 1 0 7 1 0 11
Denmark 1 – 69 2 1 48
Finland 1 0 102 1 0 93
France 1 0 31 1 0 27
Germany – – 246 2 0 235
India 1 – 1 – – 0
Indonesia – – 0 – – 0
Ireland – – 2 – – 3
Italy 3 – 98 6 2 82
Japan 2 0 14 2 1 19
Korea – – 3 – – 3
Mexico 1 – 12 1 0 13
Netherlands 3 0 50 2 0 40
New Zealand – – 1 – – 1
Norway 1 – 107 1 0 103
Poland 1 0 3 0 0 2
Russia – – 1 – – 1
Saudi Arabia – – 1 – – 1
Singapore 1 0 3 1 0 3
South Africa 1 0 5 1 0 8
Spain 3 – 5 1 0 4
Sweden 8 1 155 8 1 140
Switzerland – – 11 – – 11
Taiwan – – 1 – – 0
Thailand 1 0 2 1 0 2
Turkey 1 1 3 – – –
United Arab
Emirates – – 1 – – 1
United Kingdom 2 0 112 3 1 131
US 6 0 392 6 1 381
Vietnam – – 1 – – 1
42 4 1,564 42 9 1,483
Of which
Parent Company
(Sweden) 6 0 22 7 1 16
Principles
The Board Chairman and members of the Board of Directors receive
fees according to the Annual General Meeting’s decision. Fees
are paid for committee work. Employee representatives receive no
Board fees. The Annual General Meeting, held in April 2008, decided
on the following principles for remuneration to senior executives.
Salaries for senior managers shall be competitive and on market
terms and with other terms of employment that correspond to
the manager’s responsibility, authority, expertise and experience.
Reconciliation of total compensation against market statistics and
other information shall be performed regularly. In addition to a fixed
annual salary, senior managers may also receive a variable salary,
which will be based on the Group’s earnings per share for the President
and for other managers on improvements in the manager’s
area of responsibility with respect to earnings per share, sales,
operating earnings and capital turnover rate, as well as the outcome
of individual activity plans. The variable salary component shall
correspond to at most 50 percent of the fixed annual salary for the
President and at most between 30 and 70 percent for other senior
managers. The Company may subsidize or compensate interest
expenses when a senior manager acquires shares in a transaction
in which the executive assumes all risk. Between the Company and
other senior executives, the period of notice shall not be longer than
six months and severance pay shall not correspond to more than
18 months’ salary (basic salary) for the President and 12 months’
salary (basic salary) for other senior executives. The President is
encompassed by a defined-contribution plan, according to which
the contracted premium provision may amount to a maximum of 35
percent of the basic salary. Other senior executives residing in Sweden
are encompassed by the ITP plan, in addition to which certain
contribution-based supplements may be paid. For these programs,
the total premium provision may amount to between 20 and 35
percent of the pension-entitling salary. Senior executives residing
outside Sweden are offered pension solutions that are competitive
in the country in which they reside.
Every year, the Board considers whether a share-price-related
incentive program is to be proposed to the Annual General Meeting.
A share-price-related incentive program that has not been decided
on by an Annual General Meeting shall not exist in the Company.
Board fees are established by the Annual General Meeting. If a
Board member is employed by the Company, remuneration shall
be paid to such a member in accordance with these principles,
with no separate remuneration paid to the Board member for the
Board assignment. If a Board member performs assignments for
the Company that are not Board assignments, the remuneration to
be paid shall be market-based with respect to the nature of the assignment
and the work required. These principles shall encompass
individuals who, during the period in which the principles apply, are
members of Group management, other managers in a senior position
directly under the President or Board members. The principles
apply to contracts signed after the decision by the Annual General
Meeting and for cases in which changes are made to existing
contracts after this time. The Board is entitled to deviate from the
principle if there are special reasons in a specific case, provided
that this deviation is reported and subsequently justified.
In addition to the ordinary program for variable salary, one division
president has a special bonus for the years 2008–2010 corresponding
to 0–50 percent of the fixed annual salary. Payment of
this bonus will take place in 2011 and is subject to employment
on January 1, 2011. The outcome will be based on performance
linked to long-term goals for the division’s net sales, capital employed
and operating margin.
Munters Annual Report 2008

80 Notes
Remuneration and other benefits to senior executives
during the year
Board fee Variable
Other
Amounts in
Base remuneration
Other Pension remu­
SEK 000s
salary
benefits expenses neration Total
Chairman
of the Board,
Anders Ilstam 550 – – – – 550
Board member,
Kenneth Eriksson 250 – – – – 250
Board member,
Bengt Kjell 275 – – – – 275
Board member,
Eva-Lotta Kraft 300 – – – – 300
Board member,
Sören Mellstig 300 – – – – 300
Board member,
Jan Svensson 350 – – – – 350
Board member,
Kjell Åkesson 250 – – – – 250
President 3,900 – 136 1,185 248 5,469
Other senior
executives
(4.8 individuals) 9,005 – 1,041 1,605 274 11,925
Total 15,180 – 1,177 2,790 522 19,669
The Board fee refers to both the fee to elected Board members
and to the fee to the members of the Audit Committee and
Remuneration Committee. No fees are paid for the work of the
Nomination Committee.
Senior executives are the CEO (President), Chief Financial
Officer, President of the Dehumidification division, President of the
HumiCool division, President of the MCS division, and Group Vice
President Human Resources and Corporate Communication.
Variable remuneration for the 2008 fiscal year refers to
expensed variable remuneration. No variable remuneration was
expensed during 2008.
Other benefits refers to company cars and meal benefits. Pension
expenses include costs for disability pension insurance and
survivor annuity, etc. The amounts are stated excluding special
employer’s contribution on pension expenses.
Other remuneration refers to the payment of interest subsidies
in 2008 for purchase of Munters’ shares (see Note 29).
Pension
The Swedish ITP plan is a multi-employer plan insured by Alecta. It
is a defined-benefit plan, but since the plan assets and commitments
cannot be allocated to each employer or individual person,
the plan is reported as a defined-contribution plan. Accordingly,
future commitments for the senior executives cannot be provided.
One senior executive domiciled in the US is covered by the
general 401k pension plan plus a special premium-based pension
plan. Funds are allocated monthly to a fund and correspond on
each occasion to the Company’s commitments. The Company’s
commitment on December 31, 2008 amounted to SEK 1,240,000.
All pension plans for senior executives are vested – that is, not
conditional on future employment.
Severance pay
Between the Company and the President and other senior executives,
the period of notice shall not be longer than six months. If
employment is terminated by the Company, severance pay will
be received amounting to 12 months’ salary (18 months for the
President). Severance pay is not considered pensionable income,
except for the President, and is reduced by income from other
employment. If the President or other senior executive takes the
initiative in terminating employment, there is no severance pay.
Financial instruments and options program
The President and other senior executives have participated in the
options program, approved by the Annual General Meeting during
the past year. No options were allotted since the improvement in
earnings per share for 2008 in relation to 2007 was not attained as
stipulated in the requirements of the program. See also Note 29.
Procedure and decision process
The Board of Directors has appointed a Remuneration Committee
among its members consisting of Anders Ilstam and Bengt Kjell.
The work of the Committee is presented in the Corporate Governance
Report on page 38.
NOTE 29
Outstanding incentive programs
During the years 2004 and 2006, Munters implemented stock
option programs directed to Group management and senior executives
in the Group. The options for all outstanding stock option
programs were purchased at a market premium, which is recognized
as an increase in the Group’s equity. To cover the Company’s
commitments according to the stock option programs, treasury
shares have been acquired, with the purchase price being recognized
as a reduction of the Group’s equity. In future, when options
are redeemed, the subscription price received will be recognized
as an increase in the Group’s equity. During the year, the option
premium was subsidized at 40 percent for the 2004 start year and
will be subsidized at 60 percent for the 2006 start year of the option
premium in the form of a cash bonus, on condition that the option
holder is employed at the time of the options’ redemption period.
The subsidy and associated social costs will be charged against
consolidated earnings. Provisions for these subsidies amounted to
slightly more than SEK 1 M on the closing date.
The change in the number of outstanding share options and
their weighted average redemption price (SEK) are as follows:
Average exercise
price
2008 2007
Options
Average exercise
price
Options
January 1 97.57 117,500 95.33 128,100
Issued – – – –
Utilized – – 70.40 –10,600
Expired 106.40 –10,000 – –
Matured 82.00 –42,500 – –
December 31 106.40 65,000 97.57 117,500
The exercise price is translated with consideration taken to the share split and
bonus issue that was implemented in 2007.
Each option entitles the holder to purchase 3.21 shares.
Starting
year
No. of
issued
options
No. of outstanding
options
at year-end
Option
premium,
SEK
Exercise
price,
SEK
Exercise period
2006 Sept. 1, 2009 –
March 31, 2010 75,000 65,000 32.80/19.10 106.40
75,000 65,000
An employee option program was approved for the years 2007–
2008. No allotment took place, since the targets were not attained.

Notes
81
During the period from September 2007 to March 2008, the option
program started in 2004 was redeemed. None of the 42,500
options were exercised by the option holders, since the exercise
price of SEK 82.00 exceeded the average weighted share price of
SEK 74.73 during the exercise period.
Incentive program for senior executives
The President holds 25,000 options in the program started in 2006.
One senior executive hold 5,000 options in the program started in
2006.
Munters also subsidizes the acquisition of shares in Munters
made by Group Management in a share-purchase program
approved by the Board. The subsidy means that during the
period up to December 31, 2011 or at most to the termination of
employment, Munters subsidizes the interest expenses for loan
financing of current acquisitions by senior executives. In October
2005, within the framework of the offering, one senior executive
acquired 30,000 shares in an amount of SEK 1,950,000 and in
February 2008, two other senior executives acquired 45,000
shares for a total of SEK 2,860,000. During 2006, the President
acquired 36,000 shares in an amount of SEK 2,931,000 that are
also included in this subsidy.
NOTE 32
Company information
Munters AB (publ) is a Swedish public limited company registered
with the Swedish Companies Registration Office. Its Corporate
Registration Number is 556041-0606. The registered office of the
Board Directors of Munters is in the Municipality of Stockholm in
Sweden.
The principal operations of the Group are described in Note 5.
The Company’s shares are listed on the NASDAQ OMX Nordic
Exchange Stockholm.
The consolidated accounts for the fiscal year ended December
31, 2008 were approved by the Board and the President on March
6, 2009 and will be presented to the Annual General Meeting on
April 15, 2009 for adoption.
NOTE 30
Fees to auditors
Group Parent Company
Amounts in SEK 000s 2008 2007 2008 2007
Ernst & Young
Audit 8,025 7,500 581 429
Other assignments 2,238 1,193 317 184
Other
Audit 922 1,324 – –
Other assignments 1,417 948 – –
12,602 10,965 898 613
An audit entails an examination of the annual report and accounts,
as well as the management by the Board of Directors and the President,
other tasks for which the Company’s auditors are responsible
for performing, and providing advice and other council occasioned
by this examination or the performance of other tasks. Other assignments
relate mainly to consultation on taxation matters.
NOTE 31
Events after closing date
During the first quarter of 2009, Munters implemented a number
of measures to adapt operations to the weaker market conditions.
Within MCS, these measures included phasing out of certain
operations, centralization of administration and merging of certain
business units resulting in personnel reductions. Within Humi­
Cool efficiency measures involved the production structure and
volume-related personnel reductions. Dehumidification will reduce
indirect personnel to lower its cost levels. Total costs are estimated
at SEK 30–45 M, which will be charged against earnings in
the first quarter. Overall, personnel will be reduced by about 250
persons, while annual cost savings in ongoing operations over
the coming 12-month period are estimated at SEK 75 M after full
implementation.
Munters Annual Report 2008

82 Proposed distribution of earnings
Proposed distribution of earnings
Future outlook
Munters commands a strong market position in its areas of
operation and employs reorganization and efficiency measures
on an ongoing basis. The outlook for a long-term favorable
development is good.
Proposed distribution of earnings
The following earnings (SEK) are at the disposal
of the Annual General Meeting:
Share premium reserve 2,117,500
Profit brought forward 562,105,407
Net earnings for the year 234,364,368
Total 798,587,275
The Board of Directors proposes that profit
be distributed as follows:
Distributed to shareholders –
To be carried forward 798,587,275
Total 798,587,275
The Board of Directors intention is to apply a dividend policy
entailing that the future dividend level is adapted to Munters’
earnings level, financial position and other factors that the
Board considers relevant. The annual dividend shall consist of
about half of the Group’s average net earnings measured over
a period of several years. In consideration of the prevailing
unpredictability of financial market and the real economy, the
Board of Directors proposes that no dividend be paid for 2008.
Assurance
The undersigned assure that the Annual Report has been prepared
in accordance with generally accepted accounting principles
for listed companies, and that the consolidated accounts
have been prepared in accordance with international accounting
standards as referred to in Regulation (EC) No 1606/2002 of
the European Parliament and of the Council of July 19, 2002 on
the application of international accounting standards, provide a
true and fair view of the Company’s and the Group’s financial
position and earnings and that the Board of Directors’ Report
and the Board of Directors’ Report for the Group provide a fair
view of the development of the Company’s and the Group’s
operations, financial position and earnings and describe material
risk and uncertainty factors to which the Company and the
companies included in the Group are exposed.
Kista, March 6, 2009
Anders Ilstam Kenneth Eriksson Bengt Kjell
Chairman Board member Board member
Eva-Lotta Kraft Sören Mellstig Pia Nordquist
Board member Board member Board member
Employee representative
Jan Svensson Kjell Wiberg Kjell Åkesson
Board member Board member Board member
Employee representative
Lars Engström
President
Board member
Our auditor’s report was submitted on March 6, 2009
Ernst & Young AB
Björn Fernström
Authorized Public Accountant

Auditor’s report
83
Auditor’s report
To the Annual General Meeting of Shareholders in Munters AB (publ)
Corporate Registration Number 556041-0606
We have audited the annual accounts, the consolidated
accounts, the accounting records and the administration of the
Board of Directors and the President of Munters AB for the fiscal
year 2008. The annual accounts and consolidated accounts
are included in the printed version of this document on pages
42–45 and 50–82. The Board of Directors and the President
are responsible for these accounts and the administration of the
Company as well as for the application of the Annual Accounts
Act when preparing the annual accounts and the application of
international financial reporting standards, IFRS, as adopted
by the EU and the Annual Accounts Act when preparing the
consolidated accounts. Our responsibility is to express an
opinion on the annual accounts, the consolidated accounts
and the administration based on our audit.
We conducted our audit in accordance with generally
accepted auditing standards in Sweden. Those standards
require that we plan and perform the audit to obtain high
but not absolute assurance that the annual accounts and the
consolidated accounts are free of material misstatement. An
audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the accounts. An audit also
includes assessing the accounting principles used and their
application by the Board of Directors and the President and
significant estimates made by the Board of Directors and the
President when preparing the annual accounts and consolidated
accounts as well as evaluating the overall presentation
of information in the annual accounts and the consolidated
accounts. As a basis for our opinion concerning discharge from
liability, we examined significant decisions, actions taken and
circumstances of the Company in order to be able to determine
the liability, if any, to the Company of any Board member or
the President. We also examined whether any Board member
or the President has, in any other way, acted in contravention
of the Companies Act, the Annual Accounts Act or the Articles
of Association. We believe that our audit provides a reasonable
basis for our opinion set out below.
The annual accounts have been prepared in accordance
with the Annual Accounts Act and, thereby, give a true and
fair view of the Company’s financial position and results of
operations in accordance with generally accepted accounting
principles in Sweden. The consolidated accounts have been
prepared in accordance with international financial reporting
standards IFRS as adopted by the EU and the Annual
Accounts Act and give a true and fair view of the Group’s
financial position and results of operations. The statutory
Board of Directors’ Report is consistent with the other parts
of the annual accounts and the consolidated accounts.
We recommend to the general meeting of shareholders
that the income statements and balance sheets of the Parent
Company and the Group be adopted, that the profit of the
Parent Company be dealt with in accordance with the proposal
in the Board of Directors’ Report and that the members
of the Board of Directors and the President be discharged
from liability for the fiscal year.
Stockholm, March 6, 2009
Ernst & Young AB
Björn Fernström
Authorized Public Accountant
Munters Annual Report 2008

84 Management
6 4 1 3 5 2
1 Lars Engström
President and CEO. Born 1963. Employed
since 2006. Background: MSc Mech Eng,
Linköping Technical University. Various
positions within Atlas Copco in Sweden and
Australia, most recently as President of Atlas
Copco Underground Rock Excavation Division.
Shares held: 43,000. Options: 25,000.
2 Martin Lindqvist
Group Vice President and Chief Financial Officer.
Born 1970. Appointed in March 2009.
Background: MSc Business Administration
Mid Sweden University. Various positions
within Tetra Pak Sweden and Italy, Trelleborg
in Mexico and most recently Group Controller,
Mercuri Urval Group. Shares held: 0.
3 Andreas Olofsson
Group Vice President Human Resources and
Corporate Communications. Born 1970. Employed
since 2007. Background: MSc Econ.,
Uppsala University. Management consultant
at Connecta, Manager International Assignments
at Sandvik and most recently Director
of Human Resources and Organization at
Bahco Group (Snap-on Inc.). Shares held:
15,000.
4 Mike McDonald
President Dehumidification division, Executive
Vice President. Born 1947. Employed since
1995. Background: BSc Business Administration
and Economics, Drury College, Senior
Executive Development Program, Northwestern
University. President of Reda Pump Company.
Shares held: 38,400. Options: 5,000.
5 Per Segerström
President HumiCool division, Group Vice
President. Born 1956. Employed since
2003. Background: MSc Mech Eng., Royal
Institute of Technology, Stockholm. Various
positions within ABB in Sweden, Australia
and Spain, most recently as Senior Vice
President within the Substations business
area. Shares held: 9,000.
6 Morten Andreasen
President MCS division, Group Vice President.
Born 1958. Employed since 2008. Background:
B.S. Econ., Copenhagen University,
Director of SAS Service Partner, President of
Top Flight Catering AB, Senior Vice President
LSG Sky Chefs. Shares held: 30,000.
Information is as of March 6, 2009.

Definitions of financial key figures and glossary
85
Definitions of financial key figures
Capital employed – Total assets less
non-interest-bearing provisions less noninterest-bearing
liabilities.
Capital turnover rate – Net sales divided
by average capital employed calculated on
the opening and closing balances for the
past four quarters.
Cash and cash equivalents – Cash and
bank balances plus current investments
with maturity periods not exceeding three
months.
Earnings per share – Net earnings divided
by the weighted average number of shares.
EBIT margin – EBIT divided by net sales.
Equity per share – Equity (excluding minority
interest) divided by the number of shares
outstanding on the closing date.
Equity/assets ratio – Equity (including
minority) interest divided by total assets.
Interest coverage ratio – Earnings after
financial items plus financial expenses (excluding
exchange-rate differences) divided
by financial expenses (excluding exchangerate
differences).
Net debt – Interest-bearing liabilities plus
defined-benefit commitments to employees
less interest-bearing assets less cash and
cash equivalents.
Net debt/equity ratio – Net debt divided by
equity (including minority interests).
Operating assets – Intangible assets
excluding goodwill plus tangible assets plus
inventories, etc., plus accounts receivable.
Operating capital – Operating assets less
operating liabilities.
Operating cash flow – Cash flow from
current operations and investing activities
excluding acquisitions of operations and the
sale of operating segments.
Operating earnings – Operating earnings
corresponds to EBIT excluding goodwill impairments
and surplus values depreciation.
Operating liabilities – Advances from
customers plus accounts payable.
Operating margin – Operating earnings
divided by net sales.
Operating working capital – Inventories,
etc., plus accounts receivable less advances
from customers less accounts payable.
P/E (price/earnings) ratio – Share price on
closing date divided by earnings per share.
Return on capital employed – Earnings
after financial items plus financial expenses
(excluding exchange-rate differences) divided
by average capital employed calculated
on the opening and closing balances in the
past four quarters.
Return on operating capital – Operating
earnings divided by the average operating
capital using the past 12 months’ opening
and closing balances as a base.
Return on equity – Net earnings divided by
average equity calculated on the opening
and closing balances of the last four
quarters. Minority interest is excluded from
earnings as well as equity.
Glossary
Absolute humidity – The volume of water
that air contains as generally measured in
grams per kilogram of air.
Absorption – Accumulation of moisture,
for example, by a substance, which then
changes chemically or physically.
Adsorption – Accumulation of moisture, for
example, by a substance, which does not
change, either chemically or physically.
AgHort – Agriculture and Horticulture.
CELdek ® – A product of specially impregnated
cellulose for evaporation and cooling
of air.
Cooling tower – A facility for evaporative
cooling of water.
Dehumidification – A division within
Munters whose products are based on
dehumidification.
Dehumidifier – Equipment for dehumidification
of air.
DesiCool – A technology for cooling air
through a combination of dehumidification
and evaporative cooling.
Dew point – The temperature to which air
must be cooled for the water vapor in the
air to condense.
DryCool – (Previously HCU) A product that
uses energy-efficient technology to control
temperature and humidity independently
of one another and uses waste heat to
reactivate the sorption rotor.
ERV – (Exhaust Recovery Ventilation) A
technology for heat recovery. Outdoor air
is pre-treated with condenser heat before
being fed into the building.
ProduCtion: Citigate Stockholm. PRINT: Strokirk Landströms. PHoto: Peter Knutsson, Labe Allwin, Lars Strandberg, Nordic Photos, istockphoto,
arCHIVE PICTURES fROM Munters, Sandvik AND V&S Group.
Evaporative cooling – Cooling that occurs
when a liquid, such as water, evaporates.
Field.Link – Mobile IT system for field engineers
and customer centers that enables
rapid and effective damage limitation.
FGD – Flue-gas desulfurization is a technology
applied in coal-fired power plants to
clean flue gases from sulfur emissions that
cause so-called acid rain.
GLASdek ® – A product of specially impregnated
spun glass for humidification and
cooling of air.
GTEC – A cooling system for intake air to
gas turbines.
HCU – A general term for a Humidity Control
Unit. See also DryCool.
HumiCool – A division within Munters
whose products are based on evaporative
cooling and humidification.
HVAC – Heating, Ventilation and Air Conditioning
Leak detection – A search method which
exploits changes in moisture, temperature
and sound waves that leaks cause.
MCS, Moisture Control Services – A
division within Munters focused on moisture
technology services with an emphasis on
the restoration of water and fire damages.
MEP – Munters’ continuous program for
increased efficiency and continuous improvement
within manufacturing and internal
processes.
MEP 2 – Initiatives during 2008 for rationalization
of production and logistics, implementation
of mobile IT and improving the
processing of accounts receivable.
Mist eliminator – A component for removing
drops of liquid from a flow of gas.
Mollier diagram – A diagram that shows
the correlation between absolute humidity,
relative humidity, temperature and energy.
PowerPurge – New, patented technology
to recover energy from the dehumidification
process. By returning surplus heat from the
dehumidification rotor to the regenerated
air and simultaneously reducing the need
for after cooling of the process air, energy
costs can be reduced by up to 40%.
RH, Relative Humidity – Expresses the relationship
between the water content of air
at a given temperature and the maximum
amount that the air can hold at the same
temperature.
Sorption rotor – A rotor for dehumidification
through sorption.
The Humidity Expert – A concept for positioning
Munters.
Thermodynamics – The study of energy,
particularly the characteristics of heat, its
conversion to other energy forms and its
ability to perform work. Based on laws of
nature.
VOC – Volatile Organic Compounds.
Zeol – An operation within Munters focused
on adsorption of VOC from air with zeolites,
a substance that adsorbs VOCs.
Munters Annual Report 2008

Munters AB (publ)
Isafjordsgatan 1, Kista Entrance
Box 1188, SE-164 26 Kista, Sweden
Phone +46-8-626 63 00
Fax +46-8-754 68 96
info@munters.com
www.munters.com
Corp. reg. nr. 556041-0606