Slide 1: Earnings Call Q3 2024
October 25, 2024 EARNINGS CALL Q3 2024 HENRIK MARKUS HÖJER CEO BERG CFO
Slide 2: Q3 2024 Business Highlights
Q3 2024 Business Highlights Private jet – VIP ❑ Airbus Corporate Jets (ACJ) / PMV ordered 1 kit for ACJ330neo - Project started in October Private jet – Business jet OEM: ❑ CTT and Liebherr Aerospace signed MoU and finalizing the joint offering of CTT’s humidification system to Bombardier for Global
Slide 3: Q3 2024 Financials in short
Q3 2024 Financials in short -22% ❑ Net Sales of 57 MSEK (74) – decreased 22% - currency adjusted 18% ❑ EBIT 15 MSEK (30) - EBIT margin 26% (41) ❑ Net Profit 12 MSEK (25) – Profit margin 27% (43) ❑ EPS 0.98 SEK (2.02) ❑ Operating cash flow of 8 MSEK (28) -51% -52% 3
Slide 4: Net Sales Bridge and Mix
Q3 2024 Net Sales Bridge and Mix Net Sales decreased MSEK 16, ❑ Driven MSEK 5 by OEM, despite paused deliveries in September to Boeing ❑ Offset by MSEK 13 in Aftermarket and ❑ Offset by MSEK 7 in Private jet Net Sales Bridge (MSEK) Sales Mix, % 74 57 4
Slide 5: Order Intake & Backlog
Q3 2024 Order Intake & Backlog ❑ Order intake: 69 MSEK vs 101 MSEK in Q3 2023 ❑ Order backlog at 47 MSEK (79) ❑ Higher order intake from OEMs will drive order backlog due to longer lead times vs aftermarket MSEK MSEK Q323 Q324 Order intake 101 69 Backlog 79 47 USD/SEK 10.84 10.09 5
Slide 6: EBIT Bridge
Q3 2024 EBIT Bridge ❑ Lower sales volume – negative impact of MSEK 10 compared with Q323 ❑ Negative sales mix & price, Currency effects and Cost increases offset MSEK 2 each, MSEK 6 in total 30 -10 MSEK -2 -2 -2 15 6
Slide 7: Cash Flow
Q3 2024 Cash Flow ❑ Operating cash flow decreased to MSEK 8 compared to MSEK 28 in Q323, mainly due to lower EBITDA of MSEK 17 compared MSEK 33 54 49 In addition: Available credit facilities of 54 MSEK (not utilized) 7
Slide 8: Net Debt
Q3 2024 Net Debt ❑ Net debt amounting to -13 MSEK compared -44 MSEK in Q3 last year ❑ Cash 54 MSEK and in addition available credit facilities amounting to 54 MSEK ❑ Equity ratio 73% (73%) and Net Debt / (R12 EBITDA) -0.1 (-0.4) MSEK 8
Slide 9: YTD 2024 Financials in short
YTD 2024 Financials in short ❑ Net Sales decreased 4% to 218 MSEK (228) ❑ Sales mix dominated by Aftermarket (79%) ❑ EBIT decreased 9% to MSEK 79 (87) ❑ EBIT margin 35% (38) ❑ EPS amounted to 4.89 SEK (5.43) ❑ Cashflow amounted to MSEK 50 (86) Net Sales Bridge (MSEK) Sales Mix, % 218 9
Slide 10: Rolling 4Q Financials in short
Rolling 4Q Financials in short ❑ Net Sales increased 1% to 299 MSEK (295), driven by Aftermarket and OEM ❑ EBIT increased 3% to MSEK 111 (108) ❑ EBIT margin amounted to 37% (36) ❑ EPS increased 3% to 7.08 SEK (6.85) Net Sales Bridge (MSEK) 299 10
Slide 11: Updated Guidance 2H 2024
Updated Guidance 2H 2024 ❑ Updated second-half 2024 net sales guidance: ROLLING 4Q MSEK 137 – 147, revised from previous guidance 400 of MSEK 160 – 180 375 350 325 ❑ The net sales guidance for Q4 is MSEK 80 – 90, 300 driven quarter-to-quarter by 275 250 • Rebound in Aftermarket sales from temporary
Slide 12: Aftermarket
Aftermarket 300 250 243 200 Underlying aftermarket demand tracks changes in population size, driven by 150 187 147 ▪ Growth from more systems in-service on Airbus and Boeing 100 124 98 99 ▪ Spares and repair growth driven by more systems out of warranty and 50 72 ageing population. Spares sluggish d
Slide 13: OEM driven by a/c build-rate ramp-ups
OEM driven by a/c build-rate ramp-ups Net Sales 200 ❑ Boeing 787 build-rate currently at 4 per month – maintains plans to return to 5 by year-end - targeting 10 by 2026 150 166 ❑ Airbus A350 build-rate at 6 - targeting 10 in 2026 and then 12 in 2028 ❑ Boeing commenced 777-9 certification flight test
Slide 14: Private jet
Net Sales Private jet 35 30 32 25 ❑ Weak 2024 but foresee stronger Q4 – VIP Project pipeline at record 20 high 15 21 18 ❑ Growth via higher penetration on narrowbody VIPs and entry into large 10 15 14 15 cabin business jets 5 10 ❑ Airbus Corporate Jets (ACJ) frontrunning by promoting humidification
Slide 15: OEM key to volumes
— ee OEM key to volumes
Slide 16: Anti-Condensation - retrofit to drive OEM
Anti-Condensation - retrofit to drive OEM ❑ No OEM Availability – OEM is a requirement for scalable growth Net Sales ❑ Retrofit demand to drive OEM: 40 ❑ A320 operators to demand line-fit or post-delivery modification 35 – Focused efforts to win launch customers 30 25 ❑ Limited efforts to obtain STC
Slide 17: Summary
Summary Growth drivers: Opportunities: 1. OEM: deliveries are geared to benefit from: 1. Large-cabin business jets 1) increased aircraft build-rates - 2. Retrofit market for anti-condensation and gradually in 2025 and 2026, and humidifiers 2) higher average shipset content per delivered A350 aircraf
Slide 18: Q&A
ke action for our future take action for our fu Q&A Take up the challen ~reduce every way YOU
Slide 19: We make flying a little better
WE MAKE FLYING A LITTLE BETTER THRIVE WITH HUMIDITY AT HEALTHY LEVEL 19