Slide 1: Earnings Call Q1 2025
HENRIK HÖJER MARKUS BERG CEO CFO EARNINGS CALL Q1 2025 First Quarter 2025 2025-04-25
Slide 2: Q1 Business Highlights
Q1 Business Highlights Strong start in 2025 ✓ OEM sales doubled q-to-q as Boeing resumed to take deliveries of humidifiers to the 787-program ✓ Strongest Order intake in years that totaled 181 MSEK: ▪ Anti-Condensation order from jet2.com for 146 a/c – CTT’s largest order so far ▪ Private jet orders
Slide 3: Q1 2025 Financials in short
Q1 2025 Financials in short -31% ❑ Net Sales of 54 MSEK (78) – decreased 31% - currency adjusted -33% ❑ EBIT 4 MSEK (33) - EBIT margin 7% (42) ❑ Net Profit 5 MSEK (31) – Profit margin 9% (39) ❑ EPS 0.30 SEK (1.96) ❑ Operating cash flow of 4 MSEK (26) -88% -85% 3
Slide 4: Q1 2025 Net Sales Bridge and Mix
Q1 2025 Net Sales Bridge and Mix Net Sales decreased MSEK 24; ❑ Driven positively MSEK 8 by OEM, ❑ Offset by MSEK 31 in Aftermarket – due to temporary effects related to distributors’ inventories Net Sales Bridge (MSEK) Sales Mix, % 78 54 4
Slide 5: Q1 2025 Order Intake & Backlog
Q1 2025 Order Intake & Backlog ❑ Order intake: 181 MSEK vs 66 MSEK in Q1 2024, mainly driven by the Retrofit order to Jet2.com and Private Jet orders ❑ Order backlog at 158 MSEK (74) ❑ Deliveries of the jet2.com order of 146 systems is over 10 years time; with the first 30 systems between Q3 2025 an
Slide 6: Q1 2025 EBIT Bridge
Q1 2025 EBIT Bridge ❑ Negative sales volume reduced EBIT with MSEK 16 ❑ Negative sales mix & price resulted in EBIT decrease of MSEK 7 ❑ Negative currency effects lowered EBIT with MSEK 4 MSEK 33 -16 -4 -7 -1 4 6
Slide 7: Q1 2025 Cash Flow
Q1 2025 Cash Flow ❑ Operating cash flow amounted to MSEK 4 compared to MSEK 26 in Q124 ❑ Positive working capital change, offset by decreased EBITDA ❑ Paid taxes of MSEK 7 should be MSEK 5 lower – forwarded adjusted 69 69 7
Slide 8: Q1 2025 Net Debt & ROCE
Q1 2025 Net Debt & ROCE ❑ Net debt amounting to -29 MSEK compared -99 MSEK in Q1 last year ❑ Cash 69 MSEK and in addition available credit facilities amounting to 55 MSEK ❑ Equity ratio 73% (76%) and Net Debt / (R12 EBITDA) -0.3 (-0.7) MSEK 8
Slide 9: Guidance Q2 2025
Guidance Q2 2025 110 Quarterly sales The net sales guidance for Q2 is 100 MSEK 75 – 85 (82 in Q2 2024), 90 driven quarter-to-quarter from 80 ↑ Aftermarket sales rebounding 70 from temporary low sales in 60 Q1; 50 ↑ Private jet revenues 40 increasing significantly 30 ↓ OEM sales decreasing; but 20 st
Slide 10: Geopolitical turmoil and protectionism
Geopolitical turmoil and protectionism ❑ Fluid situation with tariffs and trade barriers ❑ Tariffs and deglobalization is not good for aviation ❑ Direct impact – Complex global supply chains - Exempted from tariffs since 1979 – Not the case as of now (general tariffs imposed in April) ❑ Indirect imp
Slide 11: Aftermarket outlook
Net Sales Aftermarket outlook 300 200 243 233 187 • CTT’s deliveries in Q1 significantly below end-market demand 100 124 147 98 99 • Q2 will be back to normal – reflecting underlying demand 72 0 • CTT’s end-market currently at MSEK 50 – 60, growing at 2017 2018 2019 2020 2021 2022 2023 2024 single-d
Slide 12: OEM outlook
OEM outlook 200 Net Sales 1. CTT’s deliveries leapfrogged in Q1 as Boeing resumed to take 150 166 deliveries tracking 787 build-rate content 100 126 2. Addressable market growing significantly in 2025/2026 104 83 3. Shipset content on A350s increasing gradually 2025/2026 50 35 40 0 25 20 Quarterly s
Slide 13: Private jet Outlook
Private jet Outlook 35 Net Sales 30 32 ❑ Weak 2024 but foresee strong 2025 – VIP pipeline at record high 25 ❑ Growth via higher penetration on narrowbody VIPs and entry into large 20 21 cabin business jets 15 18 10 15 14 15 14 ❑ Airbus Corporate Jets (ACJ) frontrunning by promoting humidification 10
Slide 14: Retrofit Anti-Condensation Outlook
Retrofit Anti-Condensation Outlook ❑ No OEM Availability – OEM is a requirement for scalable growth Net Sales ❑ Retrofit demand to drive OEM: 40 ❑ A320 operators to demand line-fit or post-delivery modification 30 – Focused efforts to win launch customers 35 30 20 ❑ Limited efforts to obtain STC for
Slide 15: Opportunity: Private jet
Opportunity: Private jet 15
Slide 16: Opportunity: Humidification retrofit
Opportunity: Humidification retrofit ❑ Boeing 787: Retrofit market: 1,000 aircraft ❑ A350: First 600 aircraft delivered - lower humidifier penetration ❑ Performance gap: New A350s have state-of-the- art cabin climate with humidification in flight deck, crew rests and to greater degree in premium pas
Slide 17: Summary
Summary ↑ Aftermarket demand restored to again mirror end-market demand ↑ 2025: Significant growth in OEM and Private jet ↑ Retrofit deliveries starting in Q3 ❖ Opportunities in Large-Cabin Bizjets 17
Slide 18: Take action for our future
ke action for our future take action for our fu Take up the challen ~reduce every way YOU
Slide 19: We make flying a little better
WE MAKE FLYING A LITTLE BETTER THRIVE WITH HUMIDITY AT HEALTHY LEVEL 19