Ctt Systems Ab · OMXSTO:CTT
Ctt Systems Ab — Q4 2018 Earnings Presentation
30 slides from Ctt Systems Ab's earnings presentation, Feb 6, 2019
Slide 1: Q4 2018 FY2018 Earnings Conference Call
FEBRUARY 6, 2019 EARNINGS CONFERENCE CALL Q4 2018 FY2018 CTT SYSTEMS AB
Slide 2: Torbjörn Johansson, CEO and Daniel Ekstrand, CFO
TORBJÖRN JOHANSSON DANIEL EKSTRAND CEO CFO
Slide 3: Humidity Control in Aircraft
Humidity Control in Aircraft For a better climate – in the aircraft cabin and in the sky De-Humidifiers Humidifiers
Slide 4: Q4 2018
Q4 2018 A
Slide 5: Q4 2018 Highlights
Q4 2018 Highlights Record-high Net Sales - Strongest VIP Quarter since 2016 – Humidifier deliveries at record-level Net Sales of 94.2 MSEK met forecasted 90-95 MSEK Strongest VIP Quarter since 2016 due to final delivery in three VIP projects Humidifier deliveries at quarterly all-time-record-level F
Slide 6: Q4 2018 Financials in short
Q4 2018 Financials in short Net Sales (MSEK) 47 % 100 Net Sales of 94.2 MSEK (63.9), up 47 % versus previous year 94,2 Operating Profit (EBIT) of 24.4 MSEK (13.3), up 83 % YoY 80,9 EBIT Margin 26 % (21) 50 63,9 EPS 1.52 SEK (0.79), up 92 % Operational cash flow of 19.3 MSEK (19.5) 0 Q417 Q318 Q418 E
Slide 7: Q4 2018 Bridge Net Sales, YoY
Q4 2018 Bridge Net Sales, YoY Organic growth 35 % FX Effect 12% 47 % Net Sales growth MSEK 94 High VIP sales – Best Q since 2016 246 % OEM and Non-Core sales also contributed -13 % 600 % 15 % Aftermarket sales increased, mainly pad 779 % consumables driven by humidifiers 23 % Retrofit was slightly w
Slide 8: Q4 2018 Sales Mix, YoY
Q4 2018 Sales Mix, YoY Non-Core 10% IP Non-Core 1% 5% IP 5% OEM 35% OEM 41% Aftermarket Q4 2017 36% Q4 2018 Aftermarket 28% Retrofit 15% VIP 2% Retrofit 9% VIP 13%
Slide 9: Q4 2018 Profit Bridge EBIT, YoY
Q4 2018 Profit Bridge EBIT, YoY Higher USDSEK contributed with 8.2 MSEK Volume, price, of total 30.3 MSEK Net Sales gain YoY MSEK Q417 mix and other Currency Q418 Change Net Sales 63.9 22.1 8.2 94.2 30.3 EBIT 13.3 5.4 5.7 24.4 11.1 EBIT MARGIN 21% 26% The EBIT improvement of 11.1 MSEK is explained b
Slide 10: Q4 2018 Order intake & backlog
Q4 2018 Order intake & backlog Q4 order intake of 46.5 MSEK (51.0) MSEK Q417 Q418 Change Backlog at high levels of 193.7 MSEK (144.1) due to Order intake 51.0 46.5 -4.5 OEM orders Good visibility in OEM with predictable deliveries Backlog 144.1 193.7 49.6 USDSEK 8.29 8.97 MSEK
Slide 11: Full Year 2018
FULL YEAR 2018 A
Slide 12: FY2018 Business Highlights
FY2018 Business Highlights Sets New humidifier delivery record, population growing fast - Strategic Achievements New record: OEM Humidifier deliveries – Up 20 % Humidifier population at airlines – Up 25 % Market breakthrough: Cabin humidification – Four airlines selected Humidifier Onboard First / B
Slide 13: FY2018 Financial Summary
FY2018 Financial Summary Net Sales Up 15 % Generated record revenue, earnings and EPS 400 MSEK 315 300 252 273 315 MSEK (273) in Net Sales, up 15 % 90.2 MSEK (57.9) in operating profit (EBIT), up 56 % 200 EBIT Margin 29 % (21) 100 EPS increased 47 % to 5.56 SEK (3.79) Operational cash flow of 61.2 M
Slide 14: FY2018 Proposed Dividend
FY2018 Proposed Dividend Board dividend proposal Strong financials: Net debt: -37.3 MSEK 4.05 SEK (2.75) Solidity: 62 % 6 SEK 5 Up 47 % The board proposes to the AGM a dividend of SEK 4.05 (2.75) per share, a total of 4 MSEK 50.8 (34.5), SEK per share approximately 73 percent of 3 the net profit in
Slide 15: FY2018 Bridge Net Sales
FY2018 Bridge Net Sales Organic growth 13 % Currency FX Effect 2 % 15 % total growth Net Sales growth of 42 MSEK (15 %) driven by MSEK Increase Net Sales from OEM deliveries (22 MSEK) 315 Growing aftermarket (24 MSEK) , mainly -15 % -5 % 5% 5% consumables 31 % 21 % Retrofit and VIP slightly weaker C
Slide 16: FY2018 Sales Segment Mix, YoY
FY2018 Sales Segment Mix, YoY OEM 40 % (38) and Aftermarket 32 % (28) Non-Core Non-Core 7% 8% IP IP 7% 8% OEM 38% OEM 40% 2017 2018 Aftermarket 28% Aftermarket 32% VIP Retrofit 5% 13% VIP Retrofit 4% 10%
Slide 17: FY2018 Profit Bridge
FY2018 Profit Bridge Volume, price, MSEK FY2017 mix and other Currency FY2018 Change Net Sales 273.2 36.7 5.4 315.3 42.1 EBIT 57.9 22.6 9.7 90.2 32.3 EBIT MARGIN 21% 29% 8 Adj. EBIT 62.2 22.6 2.6 87.4 25.1 Adj EBIT MARGIN 23% 28% 5 EBIT improvement of 32.3 MSEK: Business related factors account for
Slide 18: FY2018 Free Cash Flow
FY2018 Free Cash Flow Working capital increased with 24.9 MSEK during 2018; mainly related high deliveries in Q418 resulting in increased Accounts receivables. 2017 had the opposite effect. Normalized tax and large capex from development programs Financial Performance Change in Gross cash MSEK 2018
Slide 19: FY2018 Product / Segment Performance
FY2018 Product / Segment Performance OEM deliveries drive product population – Tailwind from ramp-up on both Boeing 787 and A350 Products / Delivery Comments Full Year 2018 vs. 2017 Segment Growth Units Humidifier +20 % Driven by OEM deliveries to Boeing 787 and A350 Flight Deck +15 % A350 and Boein
Slide 20: Outlook
OUTLOOK A
Slide 21: Q1 2019E Forecast
Q1 2019E Forecast Q1 100 Net Sales (MSEK) Net Sales forecasted to be 80 - 85 MSEK (63.8), up 25 -33 % versus previous year 90 25 - 33 % 80 80 - 85 70 60 50 40 30 20 10 0 Q118A Q418A Q119E
Slide 22: FY2019E Performance Outlook 2019
FY2019E Performance Outlook 2019 1H 2019 Net Sales: up 10 – 15 % (in USD) Higher OEM deliveries is expected to push Net Sales Humidifier airliner deliveries FY2019E, up 10 - 15 % De-Humidifier deliveries FY2019E, - 5 % - 5 % Record-high humidifier deliveries driven by Retrofit / BFE order intake dur
Slide 23: FY2019E Aviation Market Outlook
FY2019E Aviation Market Outlook Commercial aviation resilient long-term growth 2018E 2019E Robust airline profitability and passenger traffic Revenue Passenger Miles +6.5% +6% growth Next-gen Widebody production increase mid-term Deliveries Boeing 787 / A350 Global airline profitability $32.3B $35.5
Slide 24: Healthy outlook for widebody deliveries / demand
OEM widebody Healthy outlook for widebody deliveries / demand market - CTT sole OEM supplier to latest widebody programs Boeing 787: Production ramped-up in 2018 to meet targeted 14 a/c per month A350: Targeting production rate of 10 a/c per month in 2019 Boeing 777X: First test flights in 2019 Back
Slide 25: Installed base drives the Aftermarket
Installed base drives the Aftermarket Humidifier OEM Deliveries Aftermarket is driven by humidifier population 2500 Units 25 % Record-High Humidifier deliveries in 2018 Population at airlines growing 26 % 2014-2018 CAGR 26 % 2000 1500 1000 500 0 2014 2015 2016 2017 2018
Slide 26: Diversified humidifier population
Diversified humidifier population Aftermarket revenues global and diversified – Strong position in China 7% United Airlines More than 50 airline customers Largest customers account for 7 % each 7% American Airlines 10 Largest Airlines account for 55 % Japan Airlines 40+ Airlines account for remainin
Slide 27: Strategy for flight deck and crew rest humidifier
Humidifier Strategy for flight deck and crew rest humidifier Onboard - Growth driven by mirroring and market momentum Flight deck humidifier is the most mature market segment OEM opportunities will increase in 2019 and 2020 driven by Mirroring selection from Boeing 787 and/or A350 to new platforms s
Slide 28: Strategy for cabin humidifiers
Humidifier Strategy for cabin humidifiers Onboard - Growth driven by OEM and harmonize demand Retrofit opportunities will increase in 2019 and 2020 driven by Harmonize demand when first four airlines take delivery of cabin humidifiers on A350 and Boeing 777X in 2019/2020 Competitive demand from airl
Slide 29: Two A350 Airline Awards
TWO A350 AIRLINE AWARDS
Slide 30: Slide 30