Ctt Systems Ab · OMXSTO:CTT
Ctt Systems Ab — Q2 2023 Earnings Presentation
22 slides from Ctt Systems Ab's earnings presentation, Jul 21, 2023
Slide 1: Earnings Call Q2 2023
July 21, 2023 EARNINGS CALL Q2 2023 GIT: eee £ MM S
Slide 2: Presenters: Henrik Hojer, Markus Berg
HENRIK HOJER MARKUS BERG ce cro CTT: 2
Slide 3: Q2 2023 Business highlights
Q2 2023 Business highlights O21 Trade shows - confirm that investment climate restored Q Hamburg Interiors (AIX) QO) EBACE CTT: ;
Slide 4: Q2 2023 Financials in short
Q2 2023 | Financials in short +35% C1 Net Sales of 79 MSEK (58) - increased 35% - currency adjusted 27% - in forecasted range MSEK 75 - 80 | ' C2 EBIT 34 NSEK (23) - EBIT margin 43% (40) i 19 C2 Net Profit 25 MSEK (15) - Net Profit margin 39% (33) 58 CV EPS 1.98 SEK (1.21) C1 Operating cash flow of
Slide 5: Q2 2023 Net Sales Bridge and Mix
Q2 2023 | Net Sales Bridge and Mix 90 MSEK 9 80 25 0) 70 60 58 2 i?) — =z 50 7 40 30 20 10 0 Eftermarknad:; 85% OEM Private jet Non-Core Q222 Retrofit Aftermarket Q223 CTT: 5
Slide 6: Q2 2023 Order Intake & Backlog
Q2 2023 | Order Intake & Backlog QV Order intake 54 MSEK vs 44 MSEK same period last year C1 Aftermarket accounted for 83 % of total net sales with short lead-time from order to delivery (some order and delivery in the same quarter) C1 OEM Inventory, at Boeing and Airbus, temporally higher QQ Order
Slide 7: Q2 2023 EBIT Profit Bridge
Q2 2023 | EBIT Profit Bridge C2 Business related performance improvements - driven by sales volume C1 Higher aftermarket share - 83% compared 69% last year C2 Stronger USD/SEK compared with last year - contributing with +4 MSEK on sales, offset by -3 MSEK on AR/AP valuation 40 1 35 9 2 _— — 34 30 2
Slide 8: Q2 2023 Cash Flow
Q2 2023 | Cash Flow C1 Operating cash flow 62 MSEK (4), driven by improved financial performance (EBITDA) of 36 MSEK and positive working capital Q1 Inventory reduction Q2 Late customer payments from QI received Q1 Variable remuneration of 10 MSEK paid Q1_ Dividend of 51 MSEK paid Change in Cash sao
Slide 9: Q2 2023 Net Debt
Q2 2023 | Net Debt QC) Net debt amounting to -16 MSEK compared 30 MSEK in Q2 last year Cash 62 MSEK and in addition available credit facilities amounting to 51 MSEK Q2 Solidity 71% (70%) and Net Debt / (R12 EBITDA) -0.1 (0.5) 60 1s 40 M4 10 20 06 ) 02 02 2 06 10 40 aa 60 “ 22 -80 26 Mmm Nel debt. Ne
Slide 10: Q1-Q2 2023 Financials in short
Q1-Q2 2023) Financials in short ACC 223 Won-Core; 4% 180 Net Sales Bridge (MSEK) 160 at 0 154 7 — LJ 120 8 0 0 => 100 ‘Aftermarket; 77% 80 60 EBIT (MSEK) EPS (SEK) 40 20 3B : ES OEM Private jet Non-Core Acc Q222 Retrofit Aftermarket Acc Q223 CTF: |
Slide 11: Q1-Q2 2023 Cash Flow
Q1-Q2 2023) Cash Flow CQ Operating cash flow +58 MSEK (13), mainly driven by improved financial performance (EBITDA) and positive working capital QC) Payment of tax debt regarding 2022 in Q1 QC) Working capital - positive effect on inventory reduction and account receivables, partly offset by paymen
Slide 12: Rolling 4Q Financials in short
Rolling 4Q| Financials in short 2 Net Sales of 287 MSEK (190), up 51% versus comparable Rolling 40 (0321 - 0222) Net Sales Bridge (MSEK) O21 Operating Profit (EBIT) increase 94% to 111 MSEK (57) 350 reer (2 EBIT Margin increase to 39% (30) fo jl 300 97 4 287 C2 EPS 6.73 SEK (2.87), an increase of 13
Slide 13: Outlook
OUTLOOK 13
Slide 14: Forecast Q3 2023
100 90 80 70 60 50 Forecast Q3 2023 CQ 03 2023 Net Sales Forecast: 70 - 75 MSEK (65) (Y-o-V-increase of 7 % - 15 %) To MSEK 00 MSEK 1%-15% 80 70-75 MSEK WW Q) Quarter-to-quarter increase in Private jet sales; offset by decreased aftermarket sales (due to n unusually large spares volumes in QI and Q2
Slide 15: Aftermarket sales track population growth
Aftermarket sales track population growth Large spare orders delivered in QI and Q2 — Normalized spares demand in 2H 2023 Tracks changes in population size, driven by = New system deliveries to Airbus and Boeing and = Entry-into-service of 787s on Boeing inventory (already fitted with CTT products)
Slide 16: OEM growth driven by widebody ramp-up
OEM growth driven by widebody ramp-up Q) Boeing 787 increased build-rate from 1 - 2 per month in end-22 to current level of 4 - gradual increase to 5 by end-23 - targeting 10 by 2025 / 2026 timeframe Q) Airbus currently targeting A350 build-rate to increase to 6 in 2023 and 9 at the end of 2025 Q] F
Slide 17: The anti-condensation retrofit opportunity
The anti- condensation retrofit opportunity ZT OEE Ox 8) ee 4 C2 Anti-Fuselage-Condensation (A320 / Boeing 5) -at supporting porting tens in sustainability % 30 efforts and high fuel price 30 ) C2) Retrofit to drive OEM: 20 Q) Efforts to obtain STC for Boeing 737 MAX - Re-open discussions with Boein
Slide 18: The cabin humidification retrofit opportunity
The cabin humidification retrofit opportunity Air quality and health in focus - Cost-benefit is compelling - Interest driven by wellbeing and wellness Growing airline interest in cabin air quality / humidity / wellness Better market conditions in 2023- 5 —_ Many airlines are in the planning of next-
Slide 19: The private jet opportunity
Private jet The private jet opportunity o 30 : | 10 Q) Growth via higher penetration on narrowbody VIPs and entry into large cabin business jets 0 i | i | Q2 Airbus Corporate Jets (ACJ) frontrunning by promoting humidification for ACJ320 Family and ACJ TwoTwenty 2017 2018 2019 2020 2021 2022 Private
Slide 20: Opportunity: Large-cabin business jets
#3 Opportunity: Large-cabiny (aah Large-cabin, long-range business jets - 50 - 100 a/c per year O21 Long-range (10+ hours) C1 Equipped for best comfort Q) Humidification system required to obtain matching climate C1 OEM availability is key to volumes Q World’s first humidification system C2 In-servi
Slide 21: We make flying a little better
WE MAKE FLYING A LITTLE BETTER THRIVE WITH HUMIDITY AT HEALTHY LEVEL %_
Slide 22: We make flying a little more sustainable
} " | 4 ; f J 4 ‘ / Wf F i Take action for our future { roduce your CO: emissions we " baat . ps a WE MAKE FLYING | Siz ft Take up the hte : ~reduce every way YOU f f Now! ; A LITTLE MORE SUSTAINABLE