Ctt Systems Ab · OMXSTO:CTT
Ctt Systems Ab — Q1 2020 Earnings Presentation
27 slides from Ctt Systems Ab's earnings presentation, Apr 30, 2020
Slide 1: Q1 2020 Earnings Conference Call
APRIL 30, 2020 EARNINGS CONFERENCE CALL Q1 2020 CTT SYSTEMS AB
Slide 2: Torbjörn Johansson, CEO and Daniel Ekstrand, CFO
TORBJÖRN JOHANSSON DANIEL EKSTRAND CEO CFO 2
Slide 3: Humidity Control in Aircraft
Humidity Control in Aircraft Absolute control of the Relative For a better climate – in the aircraft cabin and in the sky De-Humidifiers Humidifiers 3
Slide 4: Q1 2020
Q1 2020 A 4
Slide 5: Q1 2020 Highlights
Q1 2020 Highlights Net Sales in-line with forecast – Limited impact from COVID-19 CTT selected supplier of Anti-Fuselage-Condensation Products to A320 Family aircraft Net Sales 77 MSEK (86) vs Forecast 72 - 77 MSEK Actions and measures due to escalated COVID-19 impact on global commercial air
Slide 6: Q1 2020 Financials in short
Q1 2020 Financials in short Last Quarter Pre-COVID-19 impact – Visibility - Predictability -10 % Net Sales of 77 MSEK (86), down 10 % versus previous year Adj. Net Sales down 6 % versus previous year Operating Profit (EBIT) of 27 MSEK (23) EBIT Margin 35 % (27) EPS 1.45 SEK (1.44) Operat
Slide 7: Q1 2020 Net Sales Bridge, YoY
Q1 2020 Net Sales Bridge, YoY Adj. Organic growth -14 % Adj. FX Effect 4 % -10 % Net Sales growth (-6 % adj.) 77.2 Aftermarket stronger despite lower IP OEM lower due to ceased ZD-deliveries to 787 Retrofit hit by weak order intake in 2019 Non-Core lower due to the divestment of the Gust
Slide 8: Q1 2020 Sales Mix
Q1 2020 Sales Mix Better product mix in Q120 vs. Q119 8
Slide 9: Q1 2020 Adjusted EBIT Profit Bridge
Q1 2020 Adjusted EBIT Profit Bridge Volume, • 12 MSEK lower sales, organic price, mix • Partly offset by higher USD/SEK that MSEK Q119 and other Currency Q120 Change contributed with 3.4 MSEK Net Sales 85.6 -11.9 3.4 77.2 -8.5 EBIT 23.2 -3.4 6.9 26.7 3.5 EBIT MARGIN 27% 35% The EBIT increase of 3.5
Slide 10: Q1 2020 Free Cash Flow
Q1 2020 Free Cash Flow One time tax payment for FY2018 and FY2019 of 23 MSEK. Adjusted Cash Flow 28 MSEK (22) Inventory build-up to secure supply and deliveries (early COVID-19 phase) Financial Performance Change in Cash Q120 Q119 Earnings before tax reconsiled to cash 26.8 25.3 109 Paid tax -27
Slide 11: Q1 2020 Order Intake & Backlog
Q1 2020 Order Intake & Backlog Stronger order intake: 113 MSEK (58) MSEK Q119 Q120 Boeing placed long Humidifier orders Order intake 57.9 112.6 Backlog decreases to 118 MSEK (173) Dehumidifier ZD deliveries ceased Q4 to Boeing 787 Backlog 173.3 118.1 – No new ZD orders to 787 – Compared with
Slide 12: Rolling 4Q
ROLLING 4Q A 12
Slide 13: Rolling 4Q Financials in short
Rolling 4Q Financials in short Net Sales of 346 MSEK (337), up 3 % versus previous Rolling 4Q 3% Operating Profit (EBIT) of 123 MSEK (100), up 23 % EBIT Margin 36 % (30) EPS 7.41 SEK (6.20), up 19 % Operational cash flow of 91 MSEK (78), up 17 % 23 % 19 % 13
Slide 14: Rolling 4Q Net Sales Bridge
Rolling 4Q Net Sales Bridge 3 % Net Sales growth 346.4 Strong OEM & Aftermarket sales Retrofit was weaker due to low order intake in 2019 Non-Core and VIP weaker 14
Slide 15: Outlook
OUTLOOK A 15
Slide 16: Q220 Forecast
Q220 Forecast Second Quarter is the First in a row with significant COVID-19 impact Net Sales forecasted to be 50 - 60 MSEK (102) Aftermarket sales approx. 50+% lower due to low widebody aircraft utilization OEM expected to face limited COVID-19 impact in Q2 – comparable OEM in 50-60 Q219 incl
Slide 17: AGM2020 Adjusted dividend proposal
AGM2020 Adjusted dividend proposal Precautionary measures lowering total dividend with a total of 51 MSEK In Q1: The proposed extra dividend was withdrawn (March 2020) Strong financials (2020-03-31): – 34 to 0 MSEK (preserving 34 MSEK) Net cash: 74 MSEK Solidity: 66 % SEK The Board’s previous as
Slide 18: Managing COVID-19 Impact
MANAGING COVID-19 IMPACT A 18
Slide 19: COVID-19 Key priorities
COVID-19 Key priorities Strong focus on matching production to demand with strict cost and cash flow control Secure deliveries and manage backlog – strict focus on demand, supply and production Strict cost and cash flow control Adapt capacity to better match demand Precautionary measures pre
Slide 20: COVID-19 Passenger demand shock
COVID-19 Passenger demand shock Unprecedented collapse in commercial passenger flights Passenger demand expected to be recovered to 2019 levels in 2022 – 2023 Recovery starts with domestic flights - International traffic lagging Unlike the sharp V-shape recovery from previous pandemics – COVID-1
Slide 21: COVID-19 Schematic impact
COVID-19 Schematic impact The timing and pace of a recovery is unclear Flight Hours / Demand / Volume VIP 2019 level Flight hours / Aftermarket OEM Retrofit Grounding Stand-still Re-start Gradual return New Normal 21
Slide 22: COVID-19 OEM
COVID-19 OEM Airbus and Boeing have adjusted production rates – Remaining at decent levels Boeing Q1 2020 report (April 29) Over-capacity of widebody aircraft for many years Airline deferrals and cancellations Demand for smaller sized widebodies than before Boeing 787 / A350 has favorable si
Slide 23: COVID-19 Aftermarket
COVID-19 Aftermarket CTT depending on total flight hours on Boeing 787 and A350 fleet – Last to be parked – Likely to be favored when resuming flights Total widebody fleet 4600 aircraft at the end of 2019 - Out of which approx. 1300 Boeing 787 and A350 aircraft Old aircraft to be on ground the l
Slide 24: COVID-19 Actions and measures
COVID-19 Actions and measures Focus on cash and costs to sustain and invest in growth projects –Adapting capacity to deliver Cash 109 MSEK - Net Cash 74 MSEK New credit facility of 70 MSEK – 95 MSEK available / not used Lower demand – Estimating 40 – 60 MSEK in quarterly revenues during crisis
Slide 25: Strong position to endure and leverage into the new normal
STRONG POSITION TO ENDURE AND LEVERAGE INTO THE NEW NORMAL Diversified impact in downturn and recovery to new normal OEM RETROFIT AIRBUS AND BOEING LOWERED PRODUCTION RATE LATE IN RECOVERY - AIRLINES MUST BE PROFITABLE BOEING 777X AND MC-21 RAMPING-UP PRODUCTION SUSTAINABILITY AND FUEL SAVIN
Slide 26: Aeroflot - 1st delivery of A350
AEROFLOT - 1ST DELIVERY OF A350 – 2ND AIRLINE WITH HUMIDIFIER ONBOARD BUSINESS AEROFLOT HAS 22 A350 ON ORDER 26
Slide 27: Q&A
Q:aA