Slide 1: Earnings Call Q2 2024
July 19, 2024 EARNINGS CALL Q2 2024 HENRIK MARKUS HÖJER BERG CEO CFO
Slide 2: Q2 2024 Business Highlights
Q2 2024 Business Highlights ❑ OEM - Airline selection confirmation at AIX: ❑ 3 airlines confirmed humidifier selection for Business class, crew rests and flight deck on their first A350 batch, and ❑ 1 airline confirmed maximum selection for its 777X fleet. ❑ Private jet – VIP-kit: ❑ Airbus Corporate
Slide 3: Q2 2024 Financials in short
Q2 2024 Financials in short +4% ❑ Net Sales of 82 MSEK (79) – increased 4% - currency adjusted 3%, - missed forecasted range of MSEK 85 - 90 ❑ EBIT 31 MSEK (34) - EBIT margin 38% (43) ❑ Net Profit 25 MSEK (25) – Profit margin 38% (39) ❑ EPS 1.96 SEK (1.98) ❑ Operating cash flow of 16 MSEK (62) -7% -
Slide 4: Net Sales Bridge and Mix
Q2 2024 Net Sales Bridge and Mix ❑ Net Sales increased MSEK 3, driven mainly by OEM ❑ Q2 2024 reported significantly higher sales to the Boeing 787 compared last year ❑ Aftermarket growth normalized Net Sales Bridge (MSEK) Sales Mix, % 82 79 4
Slide 5: Order Intake & Backlog
Q2 2024 Order Intake & Backlog ❑ Order intake: 47 MSEK vs 54 MSEK in Q2 2023 ❑ Order backlog at 38 MSEK (49) ❑ Higher order intake from OEMs will drive order backlog due to longer lead times vs aftermarket MSEK MSEK Q223 Q224 Order intake 54 47 Backlog 49 38 USD/SEK 10.85 10.61 5
Slide 6: EBIT Bridge
Q2 2024 EBIT Bridge ❑ Performance improvements - driven by sales volume added EBIT compared with Q223 ❑ Negative mix & price offset MSEK 1, mainly due to lower aftermarket share - 80% compared to 83% last year ❑ Currency effects burden EBIT with MSEK 1 compared Q223 ❑ Cost increase of approx. MSEK 2
Slide 7: Cash Flow
Q2 2024 Cash Flow ❑ Operating cash flow amounted to MSEK 16 (62), driven by financial performance (EBITDA) of 33 MSEK ❑ Offset by negative working capital change, mainly higher inventory ❑ Paid dividend of MSEK 109 (51) 143 In addition: Available credit facilities of 53 MSEK (not utilized) 49 7
Slide 8: Net Debt
Q2 2024 Net Debt ❑ Net debt amounting to -5 MSEK compared -16 MSEK in Q2 last year ❑ Cash 49 MSEK and in addition available credit facilities amounting to 53 MSEK ❑ Equity ratio 70% (71%) and Net Debt / (R12 EBITDA) -0.0 (-0.1) MSEK 8
Slide 9: YTD 2024 Financials in short
YTD 2024 Financials in short ❑ Net Sales increased 4% to 161 MSEK (154), driven by the Aftermarket ❑ Sales mix dominated by Aftermarket (80%) ❑ EBIT increased 13% to MSEK 64 (56) ❑ EBIT margin 40% (37) ❑ EPS increased 15% to 3.92 SEK (3.41) ❑ Cashflow amounted to MSEK 42 (58) Net Sales Bridge (MSEK)
Slide 10: Rolling 4Q Financials in short
Rolling 4Q Financials in short ❑ Net Sales increased 10% to 315 MSEK (287), driven by Aftermarket and OEM ❑ EBIT increased 14% to MSEK 126 (111) ❑ EBIT margin 40% (39) ❑ EPS increased 21% to 8.13 SEK (6.73) Net Sales Bridge (MSEK) 315 10
Slide 11: Guidance 2H 2024
Guidance 2H 2024 ❑ Second-Half 2024 net sales are forecasted to be MSEK 160 – 180, 3 % to 16 % increase compared to same period 2023 2H 2024 vs same period 2023: ROLLING 4Q ❑ Aftermarket sales growth at same pace as first-half 2024 or 400 slightly higher 375 350 ❑ OEM sales driven by increased deliv
Slide 12: Aftermarket
Aftermarket 300 250 243 200 150 187 Underlying aftermarket demand tracks changes in population size, driven by 147 ▪ Growth from more systems in-service on Airbus and Boeing 100 98 124 99 ▪ Spares and repair growth driven by more systems out of warranty and ageing 50 72 population 0 2017 2018 2019 2
Slide 13: OEM driven by a/c build-rate ramp-ups
OEM driven by a/c build-rate ramp-ups ❑ Boeing 787 build-rate currently at 4 per month - targeting 10 by 2025 / 2026 timeframe Net Sales ❑ Airbus A350 build-rate at 6 - targeting 10 in 2026 and then 12 in 2028 200 ❑ Boeing commenced 777-9 certification flight testing in July – Targeting aircraft del
Slide 14: Higher A350 selection - growth driver from 2025
Higher A350 selection - growth driver from 2025 ❑ Airbus has delivered 606 A350s ❑ Order backlog of 703 A350s (434 -900, 214 -1000 and 55 –F) ❑ Newest A350 operators specify humidifier in flight deck and crew rest = shipset of 3 humidifiers ❑ Significant shipset content improvement in aircraft to be
Slide 15: Emerging growth driver: Humidifier Onboard Premium Passenger cabins
Emerging growth driver: Humidifier Onboard Premium Passenger cabins Currently three airlines operating A350s with Humidifier Onboard Business class Additional airline selection confirmation with EIS 2025/2026: ❑ A350: 5 airlines confirmed 1st batch ❑ Boeing 777X: 3 airlines confirmed fleet with Humi
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: Private jet
Net Sales Private jet 35 30 32 25 ❑ Growth via higher penetration on narrowbody VIPs and entry into large cabin business jets 20 ❑ Airbus Corporate Jets (ACJ) frontrunning by promoting humidification for ACJ320 Family and 21 15 18 ACJ TwoTwenty 15 15 10 14 ❑ Project pipeline at record high 10 5 0 Qu
Slide 18: OEM key to volumes
+— _ OEM key to volumes
Slide 19: Anti-Condensation - retrofit to drive OEM
Anti-Condensation - retrofit to drive OEM ❑ 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 35 – Focused efforts to win launch customers 30 25 ❑ Limited efforts to obtain STC
Slide 20: We make flying a little better
WE MAKE FLYING A LITTLE BETTER THRIVE WITH HUMIDITY AT HEALTHY LEVEL 20
Slide 21: “This is the Sizebe =
- | a A “This is the Sizebe = “ONE TONNE c, 7 Take up the challen ~reduce “me