Ctt Systems Ab · OMXSTO:CTT
Ctt Systems Ab — Q2 2022 Earnings Presentation
28 slides from Ctt Systems Ab's earnings presentation, Jul 22, 2022
Slide 1: Earnings Call Q2 2022
July 22, 2022 EARNINGS CALL Q2 2022 GIT: eee £ MM S
Slide 2: Henrik Höjer, Markus Berg
HENRIK HOJER MARKUS BERG ce cro CTT: 2
Slide 3: Q2 2022
Q2 2022
Slide 4: Q2 2022 Business highlights
Q2 2022) Business highlights Q1 Aftermarket demand stronger than anticipated - restored to 2019-level QC) ACJand CTT sign business agreement for optional inflight humidification for the TwoTwenty business jet - launched at EBACE O21 Business environment improved - Aircraft Interior Show in Hamburg (
Slide 5: Q2 2022 Financials in short
Q2 2022! Financials in short Cd Net Sales of 58 MSEK (37) - increased 56% - currency adjusted 36% - beat forecast MSEK 50 - 55 i C2 EBIT 23 MSEK (7) - EBIT Margin 40% (18) CQ) EPS1.21 SEK (0.49) C1 Operating cash flow of 4 MSEK (7)
Slide 6: Q2 2022 Net Sales Bridge and Mix
Q2 2022 | Net Sales Bridge and Mix Net Sales increase was driven by Aftermarket sales recovery and Private jet growth NSEK 53 0222 1 Non-Core; 6% 60 16 ove OEM; 11% Retrofit; 0% 50 37 “0 — =z -2 0 30 20 10 Aftermarket; 69% 0 OEM Private jet Non-Core Q221 Retrofit Aftermarket Q222 CTT: 5
Slide 7: Q2 2022 Order Intake & Backlog
Q22022 Order Intake & Backlog CQ Gross order intake 44 MSEK vs 52 MSEK same period last year Q1_ The weaker order intake compared to previous year is mainly explained by lower build-rate by Boeing in the 787 program Q1_ Aftermarket sales dominating revenue with short lead-time from order to delivery
Slide 8: Q2 2022 EBIT Profit Bridge
Q2 2022) EBIT Profit Bridge CQ 022021 EBIT adjusted for positive one-off item impact was MSEK 2 (EBIT 7 minus 5) C1 Business related performance improvements - driven by sales volume and mix (higher Aftermarket and Private jet sales lower OEM) 2 Stronger USD/SEK with positive impact on reported sale
Slide 9: Q2 2022 Cash Flow
Q2 2022 Cash Flow QQ Operating cash flow +4 MSEK (7) driven by improved financial performance (EBITDA) and partly offset by working capital QO Working capital higher due to increased account receivables from increased sales and some large payments sliding into Q3 QO) Net debt amounting to 30 MSEK co
Slide 10: Q1-Q2 2022
Q1-Q2 2022 10
Slide 11: H1 2022 Financials in short
120 100 Hi 2022 MSEK 69 1 OEM Acc Q221 Financials in short Retrofit ‘Mtermatet 7% Private jet Aftermarket Non-Core 108 Acc Q222 +56% +411%
Slide 12: H1 2022 Cash Flow
Hi 2022 Cash Flow C1 Operating cash flow +13 MSEK (0), mainly driven by improved financial performance (EBITDA) partly offset by working capital 1 Working capital increased primarily due to strong sales increase and from accounts receivable from large customer payments to be settled in 03 C1 Reduced
Slide 13: Rolling 4Q
ROLLING 4Q 13
Slide 14: Rolling 4Q Financials in short
Rolling 4Q| Financials in short CV Net Sales of 190 MSEK (142), up 34% versus comparable Rolling 40 (0320 - 0221) Net Sales Bridge 2 Operating Profit (EBIT) increase 338% to 57 MSEK (13) 200 vey a C1 EBIT Margin increase to 30% (9) 180 ! i CV EPS 2.87 SEK (0.78), an increase of 268% 160 ~~ 142 ra. S
Slide 15: Outlook
OUTLOOK 15
Slide 16: Net Sales Forecast Q3 2022
MSE TTT TTT TSS 1 F t Q3 2022 Hi i orecas ot 58-63 1 50 t H 40 C2 Net Sales Forecast 03 2022: 58 - 63 MSEK (40) (V-0-Y-increase of 44 % - 57 %) C1 Oexpected to mirror previous quarter (02) i » 10 0 i) wm WE SEK 400 SEK Net Sales Rolling 40 100 Net Sales Rolling per Quarter 350 0 300 _— 30 6 I y 8-65
Slide 17: Growth opportunities - but not without challenges
Growth opportunities - but not without challenges Q) Private jet = Recovery started driven by our partnership with ACJ and by that, positioned for further growth Q OEM = Widebody-centric, aircraft build-rates likely to start rebounding next year Q) Retrofit market for Humidification and Anti-Condens
Slide 18: Aftermarket sales expected to increase in 2022
Aftermarket sales expected to increase in 2022 Restored to pre-pandemic level — Some recovery upside remains 159 MSEK Q2 Utilization still in recovery: Normalization from increase in intercontinental traffic = more flight hours mw 4 100 98 99 CQ) Population restored: More products flying totally on
Slide 19: OEM lagging but strong position when recovery starts
OEM lagging but strong position when recovery starts OEM will not contribute to growth in 2022 - Recovery starts in 2023 a 40 Q) Boeing 787 at low build-rate (1-2 per month) - gradual increase to 5 when deliveries are resumed 35 Q) Airbus currently targeting A350 build-rate to increase to 6 in 2023
Slide 20: The cabin humidification retrofit opportunity
The cabin humidification retrofit opportunity Air quality and health in focus - Benefit versus cost compelling - Driven by wellbeing and wellness
Slide 21: The anti-condensation retrofit opportunity
The anti- condensation retrofit opportunity Ox 8) ee ZT OEE 4 CO Anti-Fuselage-Condensation (A320 / Boeing 737) - )—sustaablty and high oil price 0 % 30 C1 Retrofit to drive OEM: ] 2 Efforts to obtain STC for Boeing 737 MAX 20 0 Q A320 operators | to demand line-fit or post-delivery modification 10
Slide 22: The private jet opportunity
Private jet The private jet opportunity wo 30 Dominating the widebody VIP segment — Poised to grow into large cabin bizjet segment 20 5 5 oPiihi CTTis the dominating humidification supplier for VIP aircraft: 0 i = Widebody VIP: Humidification is a de-facto standard 207-2018 20192020 2021 = Narrowbod
Slide 23: #1 Airbus partnership to increase ACJ320 VIP penetration
J a J a #1 Airbus partnership to increase ACJ320 VIP penetration © omits ftetesnOl eS ee J JV SuSM Invservice Q) Bolt-on-kit delivery - More scalable vs VIP projects together with completion centers (ie) Vv
Slide 24: #2 Airbus partnership on ACJ TwoTwenty business jet
#2 Airbus partnership on ACJ TwoTwenty business jet ‘AQ TwoTwenty J J SIM3M 203 CQ) Delivered together with aircraft for completion OQ Bolt-on-kit with STC
Slide 25: #3 Opportunity: Large-cabin bizjet market
#3 Opportunity: Large-cabin bizjet market Q2 Large-cabin, long-range business jets - 50 - 100 a/c per year Q) Long-range (10+ hours) - Equipped for best comfort - Humidification system required for matching climate ‘F*Humidification fitted Global 7500 aircraft . delivered to charter operator — In-se
Slide 26: Market drivers stronger in the wake of the pandemic
Market drivers stronger in the wake of the pandemic Would you rather prefer to fly in an aircraft that pollute # 65(02-balloons less per year? ‘ei Would you rather prefer to fly long- haul in an aircraft cabin that offers an ‘oasis in the desert’?
Slide 27: Leading position and projects for growth — Power to invest
Leading position and projects for growth — Power to invest
Slide 28: Slide 28