Ctt Systems Ab · OMXSTO:CTT
Ctt Systems Ab — Q3 2023 Earnings Presentation
27 slides from Ctt Systems Ab's earnings presentation, Oct 27, 2023
Slide 1: Earnings Call Q3 2023
October 27, 2023 EARNINGS CALL Q3 2023
Slide 2: Henrik Höjer, CEO and Markus Berg, CFO
HENRIK HÖJER MARKUS BERG CEO CFO 2
Slide 3: Q3 2023 Business highlights
Q3 2023 Business highlights ❑ Humidification kit system orders in August in partnership with Airbus Corporate Jets / PMV for: 1 ACJ320 and 1 ACJ319; both with deliveries in Q3/Q4 2023 ❑ Continuous business environment improvement: Large widebody orders in Q3 – on-top of strong 1H 2023 Growing pipeli
Slide 4: Q3 2023 Financials in short
Net Sales (MSEK) Q3 2023 Financials in short 80 60 65 79 74 +13% 40 Net sales in the forecasted range 20 0 ❑ Net Sales of 74 MSEK (65) – increased 13% - currency adjusted 10% - Q322 Q223 Q323 in forecasted range MSEK 70 - 75 ❑ EBIT 30 MSEK (33) - EBIT margin 41% (51) EBIT (MSEK) ❑ Net Profit 25 MSEK
Slide 5: Q3 2023 Net Sales Bridge and Mix
Q3 2023 Net Sales Bridge and Mix Net Sales increase was mainly driven by Private jet and OEM Net Sales Bridge (MSEK) Sales Mix, % MSEK Non-Core OEM 74 4% 7% Retrofit 65 0% Private jet 12% Aftermarket 77% 5
Slide 6: Q3 2023 Order Intake & Backlog
Q3 2023 Order Intake & Backlog ❑ Order intake: 101 MSEK vs 99 MSEK in Q3 2023 MSEK Q322 Q323 ❑ We could see higher intake of OEM-orders in the quarter Order intake 99 101 (with longer lead-times than aftermarket products) Backlog 94 79 ❑ Order backlog at 79 MSEK (94) USD/SEK 11,19 10,84 110 MSEK 100
Slide 7: Q3 2023 EBIT Bridge
Q3 2023 EBIT Bridge ❑ Business related performance improvements - driven by sales volume added MSEK 4 to EBIT compared with Q322 ❑ Negative mix offset MSEK 4 due to lower aftermarket share - 77% compared to 86% last year ❑ Currency effects offset EBIT with MSEK 3 - despite stronger USD/SEK – contrib
Slide 8: Q3 2023 Cash Flow
Q3 2023 Cash Flow ❑ Operating cash flow amounted to MSEK 28 (31), driven by financial performance (EBITDA) of 33 MSEK and positive working capital - Inventory reduction of MSEK 4 In addition: Available credit facilities of 52 Change in Cash MSEK (not utilized) MSEK 89 62 8
Slide 9: Q3 2023 Net Debt
Q3 2023 Net Debt ❑ Net debt amounting to -44 MSEK compared +5 MSEK in Q3 last year ❑ Cash 89 MSEK and in addition available credit facilities amounting to 52 MSEK ❑ Solidity 73% (71%) and Net Debt / (R12 EBITDA) -0.4 (0.1) MSEK 1.8 60 1.4 40 1.0 20 0.6 0.2 0 Q119 Q219 Q319 Q419 Q120 Q220 Q320 Q420 Q
Slide 10: 9M 2023 Financials in short
9M 2023 Financials in short 100 90 80 EBIT (MSEK) 87 70 60 71 ❑ Net Sales increased 32 % to 228 MSEK (173), driven by Aftermarket and OEM 50 ❑ Sales mix dominated by Aftermarket (77%) 40 ❑ EBIT increased 22 % to MSEK 87 (71) 30 ❑ EPS increased 40 % to 5.43 SEK (3.87) 20 10 0 9M 2022 Acc Q322 9M Q323
Slide 11: 9M 2023 Cash Flow
9M 2023 Cash Flow ❑ Operating cash flow 86 MSEK (43), mainly driven by improved financial performance (EBITDA) and positive working capital ❑ Payment of tax debt regarding 2022 in Q1 ❑ Working capital – positive effect on inventory reduction and account receivables, partly offset by payment of varia
Slide 12: Rolling 4Q Financials in short
Rolling 4Q Financials in short 120 100 EBIT (MSEK) 108 80 ❑ Net Sales for the period Q422 – Q323 were 295 MSEK (215), up 37% 60 79 ❑ Operating Profit (EBIT) increased 36% to 108 MSEK (79) 40 ❑ EBIT Margin 37% (36) 20 ❑ EPS 6.85 SEK (4.22), increased 62% 0 ❑ Operating cash flow of 104 MSEK (64) Q421-
Slide 13: Outlook
OUTLOOK A 13
Slide 14: Forecast Q4 2023
Forecast Q4 2023 90 MSEK 80 – 85 80 70 60 74 68 50 40 ❑ Q4 2023 Net Sales Forecast: 80 - 85 MSEK (68) (Y-o-Y-increase of 17 % - 25 %) 30 ❑ Quarter-to-quarter sales increase in Aftermarket and OEM; offset by decreased in Private jet 20 10 0 Q422 Q323 Q423E MSEK MSEK 110 400 ROLLING 4Q 100 350 90 80 -
Slide 15: Humidifier Onboard Premium cabins
Humidifier Onboard Premium cabins HUMIDIFIER ONBOARD New Airline spec A350-1000 with ❑ 3 premium passenger cabin zones ❑ Flight deck ❑ Crew rest ❑ EIS 2025 BREAKING AWARD Airline selects humidification on A350-1000 in all 3-passenger zones plus flight deck and crew rest – Deliveries to commence 2025
Slide 16: Aftermarket sales track population growth
Aftermarket sales track population growth Aftermarket expected to grow in Q4 compared to previous quarter (Q3) Underlying aftermarket demand tracks changes in population size, driven by ▪ New systems in-service on Airbus and Boeing and Entry-into-service of 787s on Boeing inventory (already fitted w
Slide 17: OEM – The growth engine (again)
OEM – The growth engine (again) ❑ Boeing 787 increased build-rate from 1 – 2 per month in end-22 to current level of 4 - gradual increase to 5 by end-23 - targeting 10 by 2025 / 2026 timeframe ❑ Airbus currently targeting A350 build-rate to increase to 6 in 2023 and 9 at the end of 2025 ❑ First 777X
Slide 18: Q3 Widebody Aircraft Orders / Commitments
Q3 Widebody Aircraft Orders / Committ ❑ 120 Boeing 787s ❑ 72 Airbus A350s 18
Slide 19: On-top of strong 1H 2023
On-top of strong 1H 2023 ❑ 115 Boeing 787s ❑ 64 Airbus A350s 19
Slide 20: In-Service: Humidifier Onboard Business class
In-Service: Humidifier Onboard Business class In addition, 4 New Airline Customers with EIS 2025 / 2026 & Humidifier Onboard A350 -1000 / Boeing 777X ❑ Humidifier Onboard Business Class in 10 A350-900s ❑ Humidifier Onboard Business Class in 6 A350-900s ❑ In-service since 2019 ❑ 4 already in-service
Slide 21: The cabin humidification retrofit opportunity
The cabin humidification retrofit opportunity Air quality and health in focus – Cost-benefit is compelling – Interest driven by wellbeing and wellness ❑ Growing airline interest in cabin air quality / humidity / wellness ❑ Better market conditions in 2023- ❑ Many airlines are in the planning of next
Slide 22: The Anti-Condensation retrofit opportunity
The Anti-Condensation retrofit opportunity 40 35 ❑ Anti-Fuselage-Condensation (A320 / Boeing 737) – supporting 30 trends in sustainability efforts and high fuel price 30 ❑ Retrofit to drive OEM: ❑ Efforts to obtain STC for Boeing 737 MAX – Re-open 20 discussions with Boeing team 10 10 7 ❑ A320 opera
Slide 23: Private jet growth on-hold
Private jet growth on-hold Dominating the widebody VIP segment – Targeting growth into large cabin bizjets ❑ Growth via higher penetration on narrowbody VIPs and entry into large cabin business jets ❑ Airbus Corporate Jets (ACJ) frontrunning by promoting humidification for ACJ320 Family and ACJ TwoT
Slide 24: Update: ACJ TwoTwenty
Update: ACJ TwoTwenty ❑ Airbus Corporate Jets promotes humidification ❑ De-facto standard on sold aircraft (from a/c no2) ❑ Slow completion ramp-up ❑ Weak sales of aircraft (<10 aircraft) ❑ Underperforming vs CTT’s expectations 24
Slide 25: Opportunity: Large-cabin bizjets
Opportunity: Large-cabin bizjets Large-cabin, long-range business jets - 50 – 100 a/c yearly ❑ Long-range business jets (10+ hours) ❑ Equipped for best comfort ❑ Humidification system required to obtain matching climate Bombardier Global 7500 / 8000 ❑ No OEM contract yet - Availability at World’s fi
Slide 26: We make flying a little better
WE MAKE FLYING A LITTLE BETTER THRIVE WITH HUMIDITY AT HEALTHY LEVEL 26
Slide 27: Q&A
Q&A WE MAKE FLYING A LITTLE MORE SUSTAINABLE 27