Ctt Systems Ab · OMXSTO:CTT

Ctt Systems Ab — Q1 2021 Earnings Presentation

23 slides from Ctt Systems Ab's earnings presentation, Apr 30, 2021

  1. Slide 1: Earnings Call Q1 2021

    April 30, 2021 EARNINGS CALL Q1 2021

  2. Slide 2: Torbjörn Johansson, CEO and Daniel Ekstrand, CFO

    TORBJÖRN JOHANSSON DANIEL EKSTRAND CEO CFO 2

  3. Slide 3: Q1 2021

    Q1 2021 A 3

  4. Slide 4: Q1 2021 Highlights

    Q1 2021 Highlights Net Sales was in line with forecast – Aftermarket normalized - Rebounded to underlying demand   Net Sales 31 MSEK (77) vs Forecast 30 - 35 MSEK  First time in the pandemic: Aftermarket sales rebounded to underlying demand 4

  5. Slide 5: Q1 2021 Financials in short

    Q1 2021 Financials in short Sales more than halved - Weak operating cash flow due to VIP payment pushed into Q2  Net Sales of 31 MSEK (77), down 59 % versus previous year – currency adjusted, down 54 %  EBIT 1 MSEK (27) - EBIT Margin 2 % (35)  EBIT Margin adjusted for AR/AP currency effect -7 % (

  6. Slide 6: Q1 2021 Sales Mix

    Q1 2021 Sales Mix Aftermarket sales dominated Q121 sales mix – OEM weak – At multi-year low 6

  7. Slide 7: Q1 2021 Net Sales Bridge, YoY

    Q1 2021 Net Sales Bridge, YoY  Adj. Organic growth -54 %  Adj. FX Effect -5 % -59 % Net Sales growth (-54 % adj.) 77 OEM Aftermarket Decreased 29 MSEK or 86 %; driven by Decreased 33 % or 10 MSEK  Lowered a/c production  Driven by lower utilization of  Deferred deliveries from Airbus product po

  8. Slide 8: Q1 2021 EBIT Profit Bridge

    Q1 2021 EBIT Profit Bridge Profit decline driven by  Business related decrease of totally -22 MSEK – explained by lower volumes  Currency (USD/SEK) headwind lowered EBIT 9 MSEK – driven by lowered sales in SEK (i.e. GM) (-7) & valuation of AR/AP (-2) Partially offset by  Cost savings of 6 MSEK 27

  9. Slide 9: Q1 2021 Free Cash Flow

    Q1 2021 Free Cash Flow  Delayed customer payment of SEK 7.5 million affecting working capital - paid in April  Lower sales / EBITDA main explanation for weaker cash flow  New loan to strengthen liquidity Change in Cash 42 Financial Performance Q121 Q120 Earnings before tax reconsiled to cash 1.8

  10. Slide 10: Q1 2021 Order Intake & Backlog

    Q1 2021 Order Intake & Backlog  Order intake continue to increase MSEK Q120 Q121  Backlog trend reversal – first quarter with increase since Covid outbreak Order intake 113 38 Backlog 118 40 MSEK USD/SEK 10.08 8.72 10

  11. Slide 11: Rolling 4Q

    ROLLING 4Q A 11

  12. Slide 12: Rolling 4Q Financials in short

    Rolling 4Q Financials in short  Net Sales of 155 MSEK (346), down 55 % versus previous Rolling 4Q  Operating Profit (EBIT) of 12 MSEK (123), down 90 %  EBIT Margin 8 % (36) -55 %  EPS 0.77 SEK (7.41), down 90 %  Operational cash flow of -22 MSEK (91), down 125 % -90 % -90 % 12

  13. Slide 13: Rolling 4Q Net Sales Bridge

    Rolling 4Q Net Sales Bridge 4Q in Covid-19 environment: 55 % Net Sales decrease  OEM-sales decreased 67 %  Aftermarket decreased 58 %  VIP not impacted by Covid-19 Illustrates the recovery potential - lead by aftermarket sales 155 13

  14. Slide 14: Outlook

    OUTLOOK A 14

  15. Slide 15: Q2 2021 Forecast

    Q2 2021 Forecast Forecasting first Quarter-to-Quarter increase since pandemic outbreak Net Sales (MSEK) Net Sales forecasted to be 35 - 40 MSEK (50) Increase driven by  OEM sales from gradual return to reflect production rate (Q121 decreased from deferred deliveries) 35-40  Private jet projects 15

  16. Slide 16: Aviation recovery gains traction - but local and uneven

    Aviation recovery gains traction - but local and uneven Some bright spots during Q1 – Domestic leading rebound primarily in North America and China  Near-term remains clouded by travel restrictions and case rates  Medium-term vaccine progress expected to unlock demand Source: Boeing Q1 2021 Earnin

  17. Slide 17: Aftermarket in early recovery

    Aftermarket in early recovery CTT depending on Boeing 787 and Airbus A350  Boeing 787 flight hours increased 3 % quarter-to-quarter – Weak January and strong March 787TOITAL 787 TOTAL FLIGHT FH PER MONTH HOURS PER MONTH  Currently at approx. 60 % of pre-covid level 300000  Boeing resumed 787 deli

  18. Slide 18: Market Drivers

    Market Drivers New drivers triggered by Covid-19 Environment HUMIDIFIER MARKET DE-HUMIDIFIER MARKET  COMFORT > WELLBEING  COST SAVINGS > OPEX > FUEL >  INFLIGHT AIR QUALITY  SUSTAINABILITY > CO2  WELLNESS > CONFIDENCE TO TRAVEL > SAFETY  STAKEHOLDER REQUIREMENT > BAIL-OUT 18

  19. Slide 19: OEM sales weak in H1 – Rebound in H2

    OEM sales weak in H1 – Rebound in H2 Deferred deliveries impacting Q1 – H2 expected to be in-line with H2 2020 - but far from pre-Covid volumes Boeing 787 Airbus A350 Boeing 777X MC-21  Production rate decreased to  Downsizing of inventory  Entry-into-Service pushed to  Upside when serial produc

  20. Slide 20: Retrofit business in 2021 - difficult but possible

    Retrofit business in 2021 - difficult but possible Airline discussions with focus on air quality and wellness as well as green tech to reduce carbon footprint drive retrofit opportunities  Airline interest in cabin air quality / humidity / wellness  A few quotations of Anti-Fuselage-Condensation p

  21. Slide 21: 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  VIP pipeline strong – some RFQ’s  Several projects and opportunities to emerge in 2021  Airbus and CTT develop next generation  CTT develops world’s first  Airbus launched its first business j

  22. Slide 22: Projects for future growth – Power to invest

    Projects for future growth – Power to invest Q&A 22

  23. Slide 23: 23

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CTT Systems — Q1 2021 Earnings Presentation on 6ix