Ctt Systems Ab · OMXSTO:CTT
Ctt Systems Ab — Q2 2020 Earnings Presentation
28 slides from Ctt Systems Ab's earnings presentation, Jul 21, 2020
Slide 1: Earnings Conference Call CTT Systems AB
JULY 21, 2020 EARNINGS CONFERENCE CALL CTT SYSTEMS AB
Slide 2: Torbjörn Johansson, CEO; Daniel Ekstrand, CFO
TORBJÖRN JOHANSSON DANIEL EKSTRAND CEO CFO 2
Slide 3: Humidity Control in Aircraft
Humidity Control in Aircraft Absolute control of the Relative For a better climate – in the aircraft cabin and in the sky De-Humidifiers Humidifiers 3
Slide 4: Q2 2020
Q2 2020 A 4
Slide 5: Q2 2020 Highlights
Q2 2020 Highlights Net Sales in-line with forecast – Lower as expected due to COVID-19 Net Sales 50 MSEK (102) vs Forecast 50 - 60 MSEK Actions and measures due to escalated COVID-19 impact on global commercial air travel: Cost savings program targeting 20 MSEK (annually) 5
Slide 6: Q2 2020 Financials in short
Q2 2020 Financials in short Large COVID-19 impact – Sales halved, but still profitable -51 % Net Sales of 50 MSEK (102), down 51 % versus previous year Adj. Net Sales down 49 % versus previous year Operating Profit (EBIT) of 6 MSEK (33) EBIT Margin 12 % (33) EBIT Margin adjusted for AR/AP
Slide 7: Q2 2020 Net Sales Bridge, YoY
Q2 2020 Net Sales Bridge, YoY Adj. Organic growth -53 % Adj. FX Effect 2 % -51 % Net Sales growth (-49 % adj.) Covid-19 hits hard on OEM & Aftermarket Strong VIP quarter, unaffected by Covid-19 Non-Core lower due to the divestment of the Gustavsberg electronics department in Q3 2019 50.4 N
Slide 8: Q2 2020 Sales Mix
Q2 2020 Sales Mix VIP appears strong in an overall negative Covid-19 development 8
Slide 9: Q2 2020 EBIT Profit Bridge
Q2 2020 EBIT Profit Bridge Volume, price, • Covid-19 impact on CTT sales MSEK Q219 mix and other Currency Q220 Change Net Sales 101.9 -53.6 2.1 50.4 -51.5 EBIT 33.4 -28.0 0.5 5.9 -27.5 EBIT MARGIN 33% 12% The EBIT decrease of 27.5 MSEK is explained by: Currency (USD/SEK) tailwind in sales were alm
Slide 10: Q2 2020 Free Cash Flow
Q2 2020 Free Cash Flow Low sales levels main explanation for weaker cash flow Inventory build-up: Secure supply and deliveries (early COVID-19 phase) Vacation period inventory Financial Performance Change in Cash Q220 Q219 Earnings before tax reconsiled to cash 7.3 35.5 Paid tax -5.5 -3.1 Ch
Slide 11: Q2 2020 Order Intake & Backlog
Q2 2020 Order Intake & Backlog Covid-19 effect on order intake: 6 MSEK (83) MSEK Q219 Q220 Lowered Boeing production rate - reflecting order book Order intake 82.7 5.9 Backlog decreases to 77 MSEK (165) Mainly a consequence of the low order intake Backlog 164.8 76.7 USD/SEK 9.33 9.35 11
Slide 12: H1 2020
H1 2020 A 12
Slide 13: H1 2020 Financials in short
H1 2020 Financials in short Net Sales of 128 MSEK (187), down 32 % versus previous year -32 % Adj. Net Sales down 30 % versus previous year Operating Profit (EBIT) of 33 MSEK (57) EBIT Margin 26 % (30) EPS 1.93 SEK (3.54) Operational Cash Flow of -5 MSEK (40) -42 % -45 % 13
Slide 14: H1 2020 Sales Mix
H1 2020 Sales Mix VIP appears strong in an overall negative Covid-19 development 14
Slide 15: H1 2020 Free Cash Flow
H1 2020 Free Cash Flow Low sales levels main explanation for weaker cash flow One time tax payment for FY2018 and FY2019 of 23 MSEK. Adjusted Cash Flow 18 MSEK (40) Financial Performance Change in Cash Acc Q2 2020 Acc Q2 2019 Earnings before tax reconsiled to cash 34.1 60.8 Paid tax -33.3 -7.4 C
Slide 16: Rolling 4Q
ROLLING 4Q A 16
Slide 17: Rolling 4Q Financials in short
Rolling 4Q Financials in short Net Sales of 295 MSEK (362), down 19 % versus previous Rolling 4Q -19 % Operating Profit (EBIT) of 96 MSEK (108), down 12 % EBIT Margin 32 % (30) EPS 5.79 SEK (6.78), down 15 % Operational cash flow of -5.0 MSEK (39.9), down 112 % -12 % -15 % 17
Slide 18: Outlook
OUTLOOK A 18
Slide 19: Q320 Forecast
Q320 Forecast Flight Hours down in Q2 will have negative impact on the aftermarket in Q3 Net Sales forecasted to be 38 - 42 MSEK (83) Aftermarket sliding another 50 % in Q3 due to low widebody fleet utilization in Q2. Sales approx. 25 % of full utilization. OEM 20 % lower due to production rat
Slide 20: Managing COVID-19 Impact
MANAGING COVID-19 IMPACT A 20
Slide 21: COVID-19 Key priorities
COVID-19 Key priorities Strong focus on matching production to demand with strict cost and cash flow control Secure deliveries and manage backlog – strict focus on demand, supply and production Strict cost and cash flow control Adapt capacity to better match demand Secure core values in the
Slide 22: COVID-19 Schematic impact
COVID-19 Schematic impact The timing and pace of a recovery is unclear Flight Hours / Demand / Volume VIP 2019 level Flight hours / Aftermarket OEM Retrofit Grounding Stand-still Re-start Gradual return New Normal 22
Slide 23: COVID-19 OEM
COVID-19 OEM Airbus and Boeing have adjusted production rates – Remaining at decent levels Boeing Q1 2020 report (April 29) Over-capacity of widebody aircraft for many years Airline deferrals and cancellations Demand for smaller sized widebodies than before Boeing 787 / A350 has favorable si
Slide 24: COVID-19 Aftermarket
COVID-19 Aftermarket CTT depending on total flight hours on Boeing 787 and A350 fleet – Last to be parked – Likely to be favored when resuming flights Total widebody fleet 4600 aircraft at the end of 2019 - Out of which approx. 1300 Boeing 787 and A350 aircraft Boeing 787 / A350 has favorable si
Slide 25: Opportunities in Confident Travel Initiatives
OPPORTUNITIES IN CONFIDENT TRAVEL INITIATIVES Actions and measures to build trust and minimize risks Air circulating in sections with air flow from ceiling to High performance ventilation in aircraft – frequent floor further reduces the potential for spreading viruses. air renewal Efficient filt
Slide 26: Increased Humidity Reduces Risk to Contract an Infectious Disease
INCREASED HUMIDITY REDUCES RISK TO CONTRACT AN INFECTIOUS DECEASE Higher humidity prevents dry air related degeneration of the immune system Significantly higher humidity Prevents dehydrative impact and weakening effect on the immune system A striking humidity increase supports the immune system a
Slide 27: Several Projects for Future Growth – Power to Develop
SEVERAL PROJECTS FOR FUTURE GROWTH – POWER TO DEVELOP 27
Slide 28: Q&A
Q:aA