Ctt Systems Ab · OMXSTO:CTT
Ctt Systems Ab — Q1 2024 Earnings Presentation
21 slides from Ctt Systems Ab's earnings presentation, Apr 26, 2024
Slide 1: Earnings Call Q1 2024
April 26, 2024 EARNINGS CALL Q1 2024
Slide 2: Henrik Höjer, CEO and Markus Berg, CFO
HENRIK HÖJER MARKUS BERG CEO CFO 2
Slide 3: Q1 2024 Financials in short
Q1 2024 Financials in short +4% ❑ Net Sales of 78 MSEK (75) – increased 4% - currency adjusted 5%, - missed forecasted range of MSEK 80 - 85 ❑ EBIT 33 MSEK (23) - EBIT margin 42% (30) ❑ Net Profit 25 MSEK (18) – Profit margin 39% (30) ❑ EPS 1.96 SEK (1.43) ❑ Operating cash flow of 26 MSEK (-4) +44%
Slide 4: Q1 2024 Net Sales Bridge and Mix
Q1 2024 Net Sales Bridge and Mix ❑ Net Sales increased, driven 11 million by the Aftermarket, offset with 7 million due to weaker sales in Private jet with 4 million and 3 million in OEM ❑ OEM decreased mainly due to that Q1 2023 included 777X deliveries – Manufacturing of the 777X currently at low
Slide 5: Q1 2024 Order Intake & Backlog
Q1 2024 Order Intake & Backlog ❑ Order intake: 66 MSEK vs 74 MSEK in Q1 2023 ❑ Order backlog at 74 MSEK (71) MSEK MSEK Q123 Q124 Order intake 74 66 Backlog 71 74 USD/SEK 10.35 10.66 5
Slide 6: Q1 2024 EBIT Bridge
Q1 2024 EBIT Bridge ❑ Performance improvements - driven by sales volume added MSEK 1 to EBIT compared with Q123 ❑ Positive mix & price added MSEK 8, mainly due to higher aftermarket share - 80% compared to 69% last year ❑ Currency effects improve EBIT with MSEK 1 compared Q123 MSEK +8 +1 33 -0 23 +1
Slide 7: Q1 2024 Cash Flow
Q1 2024 Cash Flow ❑ Operating cash flow amounted to MSEK 26 (-4), driven by financial performance (EBITDA) of 35 MSEK Change in cash In addition: Available credit facilities of 53 MSEK (not utilized) 143 118 7
Slide 8: Q1 2024 Net Debt
Q1 2024 Net Debt ❑ Net debt amounting to -99 MSEK compared -10 MSEK in Q1 last year ❑ Cash 143 MSEK and in addition available credit facilities amounting to 53 MSEK ❑ Equity ratio 76% (71%) and Net Debt / (R12 EBITDA) -0.7 (-0.1) MSEK 8
Slide 9: Rolling 4Q Financials in short
Rolling 4Q Financials in short ❑ Net Sales increased 17% to 312 MSEK (266), driven by Aftermarket and OEM ❑ EBIT increased 28% to MSEK 128 (100) ❑ EBIT margin 41% (38) ❑ EPS increased 36% to 8.14 SEK (5.97) Net Sales Bridge (MSEK) 312 9
Slide 10: Outlook
OUTLOOK A 10
Slide 11: Forecast Q2 2024
100 MSEK 85 - 90 Forecast Q2 2024 80 79 78 85 60 ❑ Q2 2024 Net Sales Forecast: 85 - 90 MSEK (79) (Y-o-Y-increase of 8 % - 14 %) 40 ❑ Quarter-to-quarter sales increase from the aftermarket 20 0 MSEK Q223 Q124 Q224E Quarterly sales 400 MSEK 110 375 100 85 - 90 350 319 – 324 MSEK 90 325 300 80 275 70 2
Slide 12: Aftermarket demand normalized
Aftermarket demand normalized 300 250 243 200 187 150 Underlying aftermarket demand tracks changes in population size, driven by 147 ▪ Growth from more systems in-service on Airbus and Boeing 100 124 98 99 ▪ Repair growth driven by more systems out of warranty and ageing population 50 72 0 2017 2018
Slide 13: Shift in growth driver – Next phase
Shift in growth driver – Next phase Net Sales 400 350 MSEK 137 10 15 300 166 30 18 0 35 250 14 35 126 243 21 0 200 15 104 20 5 32 187 150 83 147 7 10 124 25 100 98 99 50 72 0 2017 2018 2019 2020 2021 2022 2023 Aftermarket OEM Private jet Retrofit 13
Slide 14: OEM – The growth engine (again)
OEM – The growth engine (again) Net Sales 200 150 166 100 126 ❑ Boeing 787 build-rate currently at 5 per month - targeting 10 by 2025 / 2026 timeframe 104 ❑ Airbus A350 build-rate at 6 - targeting 10 in 2026 and then 12 in 2028 83 50 ❑ First 777X aircraft delivery to airline expected in end-2025 – C
Slide 15: Humidifier Onboard First & Business class
Humidifier Onboard First & Business class ❑ Total 6 A350-900s ❑ Destinated for Aeroflot ❑ 2 premium cabin zones ❑ New owner – Premium brand - Expansion ❑ Humidifier Onboard Business Class in 10 ❑ Air India’s firm orders for A350-900s 250 new aircraft with ❑ In-service since 2019 Airbus include addit
Slide 16: The cabin humidification retrofit opportunity
The cabin humidification retrofit opportunity ❑ Growing airline interest in cabin air quality / humidity / wellness ❑ Better market conditions ❑ Many airlines are in the planning of next-gen business class; driven by competition and harmonize new aircraft interior ❑ Retrofit opportunity: 1,000 Boein
Slide 17: Private jet growth on-hold
Net Sales Private jet growth on-hold 35 30 32 25 ❑ Growth via higher penetration on narrowbody VIPs and entry into large cabin business jets 20 ❑ Airbus Corporate Jets (ACJ) frontrunning by promoting humidification for ACJ320 Family and ACJ TwoTwenty 21 15 18 ❑ Deliveries in next few quarters lower
Slide 18: OEM key to volumes
+— _ OEM key to volumes
Slide 19: Anti-Condensation retrofit to drive OEM
Anti-Condensation retrofit to drive OEM Net Sales ❑ No OEM Availability – OEM is a requirement for scalable growth 40 35 ❑ Supporting trends in sustainability goals 30 ❑ Retrofit demand to drive OEM: 25 ❑ A320 operators to demand line-fit or post-delivery 20 15 modification – Focused efforts to win
Slide 20: We make flying a little better
WE MAKE FLYING A LITTLE BETTER THRIVE WITH HUMIDITY AT HEALTHY LEVEL 20
Slide 21: Upcoming events: AIX, EBACE, Red Cabin
❑ AIX Hamburg May 28-30 ❑ EBACE Geneva May 28-30 ❑ Red Cabin Dallas June 12-14 ❑ ACJ Forum 2024 Toulouse June 25-27 ❑ OOC BBJ 2024 Lisboa Sept 9-12 ❑ Red Cabin Biz Jet Montreal Sept 10-12 ❑ Aircraft Cabin Air London Sept 17-18 21