Slide 1: Earnings Call Q2 2021
July 22, 2021 EARNINGS CALL Q2 2021 GIT: eee £ MM S
Slide 2: Torbjorn Johansson, Markus Berg
TORBJORN JOHANSSON MARKUS BERG eo cro CTT: 2
Slide 3: Q2 2021
Q2 2021
Slide 4: Q2 2021 Highlights
Q2 2021 Highlights O) Net Sales 37 MSEK (50) vs Forecast 35 - 40 MSEK vv Q1 Aftermarket increased sales for third consecutive quarter O21 Order intake increased for fourth quarter in a row - Highest order backlog since Q2 2020 CTT: 4
Slide 5: Q2 2021 | Financials in short
Q2 2021 | Financials in short Reporting strong EBIT and operating cash flow - mainly explained by one-off items CO) Net Sales of 37 MSEK (50) - 26% decrease versus previous year - currency adjusted 16% decline CQ EBIT7 MSEK (6) - EBIT Margin 18% (12) C2 EBIT Margin adjusted for one-off items from OE
Slide 6: Q2 2021 Sales Mix
Q2 2021 Sales Mix Sales still aftermarket centric as in at low level 0220 Non-Core; 4% 0221 Non-Core; 7% Aftermarket; 32% OEM; 43%, Retrofit; 0% Retrofit; 3% Aftermarket; 65% CTT:
Slide 7: Q2 2021 Net Sales Bridge, YoY
Q2 2021) Net Sales Bridge, YoY arena © -26 % Net Sales growth (-16 % adj.) 60 0 Net sales decreased 13 MSEK (-26 %) 3 Q__ Driven by a 63% decline in OEM deliveries (lower demand i.e. cut in a/c 40 0 production) and decrease in Private jet / VIP business 30 2 Offset partly by a 51% increase in afterm
Slide 8: Q2 2021 EBIT Profit Bridge
Q2 2021; EBIT Profit Bridge Profit increase explained by Business related decrease of totally -2 MSEK - explained mainly by lower OEM volumes Currency (USD/SEK) headwind lowered EBIT 3 MSEK - driven by lowered sales in SEK (i.e. GM) (-6), but partly offset by valuation of AR/AP (+3) Positive effect
Slide 9: Q2 2021 Cash Flow
Q2 2021 Cash Flow Q1_ Driven by improved financial performance (EBITDA) C1 Offset by Paid dividend of 22 (51) and 1 Working capital had a negative cash impact of 2 MSEK, including 5 MSEK paid in variable remuneration for 2020 C1 Some delayed payments also had negative impact on working capital Chang
Slide 10: Q2 2021 Order Intake & Backlog
Q22021' Order Intake & Backlog O21 Order intake increased for fourth quarter in a row MSEK 0220 0221 1 Highest order backlog since 02 20 Order intake 6 52 Backlog 7 53 160.0 MSEK USD/SEK 9.35 8.51 140.0 120.0 100.0 80.0 60.0 40.0 : rill 0.0 | q3ig. 419 20.220. 320 420. Qa 221 take Q mi Backlog CTT:
Slide 11: H1 2021
HI 2021 il
Slide 12: H1 2021 | Financials in short
Hi 2021 | Financials in short Q1 2020 on pre Covid level affects six months comparison 2021 vs 2020 CO. Net Sales of 69 MSEK (128), decreasing 46% versus previous year - currency adjusted a decline of 39% QQ EBIT7 MSEK (33) - EBIT Margin 11% (26) C2 EBIT Margin adjusted for one-off items was 4% 46%
Slide 13: H1 2021 Sales Mix
Hi 2021 Sales Mix Aftermarket sales dominated H121 sales mix - OEM weak ACC 0221 Non-Core; 6% Aftermarket; 65% Retrofit; 2% Aftermarket; 37% ACC Q220 Non-Core;4%5 Retrofit; 3% OEM; 44% CTT:
Slide 14: H1 2021 Net Sales Bridge, YoY
H1 2021 Net Sales Bridge, YoY C2 Adj. Organic growth -39 % Q] Adj. FX Effect -7 % 140 128 ‘a aN 120 . ! ! 1 1 ‘ 100 H H ‘ ' \ NOB? 80 Acc Q220 OEM Retrofit \ ! 1 3 -46 % Net Sales growth (-39 % adj.) Aftermarket decreased 2 MSEK (only): Q) Aftermarket in H1 2021 almost bridged flat compared with sam
Slide 15: H1 2021 Cash Flow
Hi 2021 Cash Flow C1 New loan to strengthen liquidity with 29 C1 Paid dividend of 22 (51) Q1 Working capital had a negative cash impact of 9 MSEK, driven mainly by a liabilities decrease in AP and 5 MSEK variable remuneration payment for 2020 — Cash Flow . Change in Cash pcx] acazr ra Earnings befor
Slide 16: Rolling 4Q
ROLLING 4Q
Slide 17: Rolling 4Q | Net Sales Bridge
Rolling 4Q| Net Sales Bridge Net Sales of 142 MSEK (295), decreasing 52% versus previous Rolling 4Q Operating Profit (EBIT) of 13 MSEK (96), declining 86% EBIT Margin 9% (32) EPS 0.78 SEK (5.79), decreasing 87% Operating cash flow of -5 MSEK (64) 52 % Net Sales decrease 350 ooooo 250 H H wo \ | a iN
Slide 18: Outlook
OUTLOOK 18
Slide 19: Aviation recovery continues — still local and uneven
Aviation recovery continues — still local and uneven Domestic leading rebound primarily in North America and China - Re-opening dates for intercontinental fights Q) More flights in the summer - passed 100,000 per day in July for the first time since Feb 2020 - currently 76 % vs 2019 121 7ay moving a
Slide 20: Aftermarket in recovery
Aftermarket in recovery Aormaret " a , 100 Q) Aftermarket sales increasing three consecutive quarters Q) Aftermarket revenues in HI 2021 45 MSEK (62 % compared to full year 2020 (72 MSEK) 50 AFTERMARKET | [ 50.0 0 50 2017 2018 2019 2020 20211H 40.0 35.0 30.0 re) 10.0 0 10.0 : [ 0.0 ang 7) 319 aig 01
Slide 21: OEM weak in 2021 due to short-term uncertainty
OEM weak in 2021 due to short-term uncertainty Q Temporary production cut below 5 per Q _ Guided higher production rate in QO Certification delayed month for some weeks Q3 2022, up from 5 per month to 6 OQ Cutting delivery target to less thanhalf ©) Many large customers with of approx. 100 undeliver
Slide 22: Retrofit business gradually improving
Retrofit business gradually improving Airline discussions with focus on air quality and wellness as well as green tech to reduce carbon footprint drive retrofit opportunities QO. Airline interest in cabin air quality / humidity / wellness Q) Afew quotations of Anti-Fuselage-Condensation protection -
Slide 23: Private jet opportunities to emerge in 2021
Private jet opportunities to emerge in 2021 Airbus leads-the-way with ACJ320 and its new business jet C1 VIP pipeline strong - some RFQ’s CV Several projects and opportunities to emerge in 2021 First test flights with our IFH system onboard (July) ACJ selection still ongoing * wna Q1 Launched by Air
Slide 24: Forecast Q3 2021
Forecast Q3 2021 Forecasting third quarter net sales to be in-line with second quarter Net Sales (MSEK) Net Sales forecasted to he 35 - 40 MSEK (50) feesesss==--| 45 I Increase driven by 40 I O21 Retrofit deliveries 35 | 35-40 QO) Offset by decreased revenues in Private jet projects 30 25 20 15 10 5
Slide 25: Net sales by segment, quarterly
400 350 300 250 ❑ 200 ❑ 150 100 50 0 Q119 Q219 Q319 Q419 Q120 Q220 Q320 Q420 Q121 Q221 Aftermarket OEM system VIP Retrofit
Slide 26: Rebound to generate orders in second half 2021
Rebound to generate orders in second half 2021 Factors in favor of a continuously rebound from pandemic effects: Q] Aftermarket ready to rebound swiftly to pre-pandemic level when intercontinental traffic resumes Q] Breakthrough into the large business jet segment, significantly increasing our addre
Slide 27: Q&A
Slide 28: Slide 28