Ctt Systems Ab · OMXSTO:CTT
Ctt Systems Ab — Q4 2021 Earnings Presentation
25 slides from Ctt Systems Ab's earnings presentation, Feb 8, 2022
Slide 1: Earnings Call Q4 2021
February 8, 2022 EARNINGS CALL Q4 2021 GIT: eee £ MM S
Slide 2: Torbjörn Johansson, CEO and Markus Berg, CFO
TORBJORN JOHANSSON MARKUS BERG cto cro CTT: 2
Slide 3: Q4 2021
04 2021
Slide 4: Q4 2021 Highlights
Q4 2021) Highlights Q)_ Net Sales 42 MSEK (35) vs Forecast 40 - 45 MSEK Y Q2 Strongest order backlog since Q2 2020 (59 MSEK) Q) Retrofit order from Pobeda for additional 20 aircraft O21 Three Private jet awards (4 VIP aircraft) O21 Strongest operating cash flow (+20 MSEK) since the pandemic started
Slide 5: Q4 2021 Financials in short
Q4 2021) Financials in short CO) Net Sales of 42 MSEK (35) - increased 21% - currency adjusted 20% CQ EBIT 8 MSEK (-1) - EBIT Margin 19% (-2) CD EPS 0.34 SEK (0.15) C2 Operating cash flow of 20 MSEK (-1)
Slide 6: 2021 Sales Mix
04 2021 Sales Mix Stronger aftermarket and Retrofit sales - OEM and Private jet relative low point 0420 Non-Core; 7% 0421 Non-Core; 8% OEM; 35% Aftermarket; 40% Retrofit; 11% Retrofit; 02% Aftermarket; 62% CTT: 5
Slide 7: Net Sales Bridge, YoY
04 2021 MSEK BO : ; i 1 | \ 7, OEM Q420 Net Sales Bridge, YoY Retrofit Private jet Aftermarket Non-Core a Net sales increased 7 MSEK (+21%) OQ Driven bya 85% increase in aftermarket sales, benefitting from higher utilization of installed base (more flight hours per a/c per day) QO Offset by: ‘A55% d
Slide 8: Q4 2021 EBIT Profit Bridge
Q4 2021| EBIT Profit Bridge EBIT increased 9 MSEK Q1_ Driven by business related improvements - explained mainly by higher aftermarket sales O21 Positive impact on EBIT from stronger USD/SEK Q1 Costs mainly higher due to higher sales (commission, royalty, STC costs, variable renumeration) C1 Lower c
Slide 9: Q4 2021 Cash Flow
Q4 2021 Cash Flow Q) Better operating cash flow +20 MSEK (-1) Q)_ Driven by improved financial performance (EBITDA) and improved working capital — Cash Flow Change in Cash 60 re ' ° 6 Earnings before tax reconsiled to cash a5 216 ° 0 40 Paid tax 05 39 32 30 Change in working capital 23 214 20 Operat
Slide 10: Q4 2021 Order Intake & Backlog
Q4 2021) Order Intake & Backlog O21 Order intake 46 MSEK vs 21 MSEK same period last year O21 Order backlog increased 89 % compared with 0420 QO) Order backlog highest since Q2 2020 150 MSEK MSEK 0420 0421 Mo Order intake i] 46 7) Backlog 31 59 100 USD/SEK 8.19 8.98 80 60 Wad 20 tl @i9 a9 a0 = 02020
Slide 11: FY2021
FY2021 nN
Slide 12: FY2021 Financials in short
FY2021 | Financials in short Comparable period includes Q1 2020 with limited pandemic impact C1 Net Sales decreased 25% to 151 MSEK (201) - Currency adjusted a decline of 19% C1 EBIT 27 MSEK (38) - EBIT Margin 18% (19) I | CQ) EBIT Margin adjusted for one-off items was 15% 201 “Bh Co EPS 1.13 SEK (2
Slide 13: FY2021 Sales Mix
FY2021 Sales Mix Aftermarket sales dominated FY2021 sales mix - OEM weak FY2020 Non-Core; 5% FY2021 Non-Core; 7% OEM; 41% Aftermarket; 36% Retrofit; 2%5 Aftermarket; 65% CTT:
Slide 14: FY2021 Net Sales Bridge, YoY
FY2021| Net Sales Bridge, YoY 250 201 Aftermarket increased 27 MSEK from strong recovery in fleet 200 wpa 7 utilization / flight hours 150 100 50 0 OEM decreased 59 MSEK or 70%, driven by pandemic impact on OEM Private jet Non-Core widebody production rates at Airbus & Boeing FY2020 Retrofit Afterma
Slide 15: FY2021 Cash Flow
FY2021 | Cash Flow QQ Operating cash flow +30 MSEK (-11) Q New loan to strengthen liquidity with 29 MSEK (10) Q1 Paid dividend of 22 MSEK (51) Q) Cash improved to 49 MSEK (22) _ Cash Flow Change in Cash tcf rr ° 70 Earnings before tax reconsiled to cash M5 35.0 60 38 Paid tax 68 ME 90 40 Change in w
Slide 16: FY 2021 Proposed Dividend AGM 2022
FY 2021 Proposed Dividend AGM2022 C1 Proposed dividend: 0.79 SEK / share (1.74) - 70 % of EPS O Total dividend 9.9 MSEK (21.8) Strong financial position: Cash & available credit facilities: 101 MSEK Solidity: 65 % (72) 8 SEK x2 Net debt: 23 MSEK 1 - 6 6 5 5 4 4 ue 70 % of EPS | 3 3 Poa —— 2 J mn ll
Slide 17: Outlook
OUTLOOK 1
Slide 18: Business Environment
Business Environment O21 North America and Europe leading recovery - Asia / Pacific lagging Passenger Traffic Air Cargo Traffic . aoe . a November 2021 RPKs in % of November 2019 FTKs, % growth over same month in 2019 2 Gradual improvement in international passenger traffic Q According to Boeing: Ai
Slide 19: Forecast Q1 2022
Forecast Q1 2022 _etsesfonc_ 3s I Cl Net sales Forecast Q1 2022: 42 - 47 MSEK (31) et (12022 versus 4 2021: * Q) Private Jet significant increase — partly offset by decrease in Retrofit 10 O) Aftermarket flat or slightly lower : “ . QO) OEM remains at low delivery rate 100. MseK SEK , Net Sales Roll
Slide 20: Aftermarket sales expected to increase in 2022
Aftermarket sales expected to increase in 2022 QI - Pause in upward trend - Omicron delaying rebound and growth afew months jay QO) More products flying totally on A350 and Boeing 787 vs pre-pandemic io Q) Boeing 787 fleet restored to 99 % - growth when 787 deliveries resume Q) A350 aftermarket high
Slide 21: OEM recovery delayed
OEM recovery delayed OEM not likely to significantly contribute to growth in 2022 - Boeing 787 issues take longer time than Boeing previously anticipated 30 B 20 b 0 | | ofus aig 079 519 asd arz0 220 0320 0420 Ol azz O32 a4zi ; ; so SEK Q) Boeing 787 at low build-rate (1-2 per month) 5 Q) Airbus cur
Slide 22: Retrofit business renaissance
Retrofit business renaissance Airline discussions with focus on air quality and wellness as well as green tech to reduce carbon foot; ive retrofit opportunities Q) Growing airline interest in cabin air quality / humidity / wellness Q) Sustainability efforts + pressure and oil at 7 year high drives i
Slide 23: Private jet growth in 2022
Private jet growth in 2022 ry, CQ. Historic VIP revenues approx. $2M+-SIM per year O21 Awarded ACJ320 OEM-kit system: Adding $1.5M per year O21 Addressed growth opportunities: Approx. $13M per year I) = AC320sets new VIP cabin climate standard and = kit delivery vs projects Cor “aT OEM Kit+ | Addres
Slide 24: Q & A
Slide 25: CTT Systems