Ctt Systems Ab · OMXSTO:CTT
Ctt Systems Ab — Q4 2022 Earnings Presentation
26 slides from Ctt Systems Ab's earnings presentation, February 2023
Slide 1: Earnings Call Q4 2022
February 7, 2025 EARNINGS CALL Q4 2022 GIT: eee £ MM S
Slide 2: Henrik Höjer, Markus Berg
HENRIK HOJER MARKUS BERG ce cro CTT: 2
Slide 3: Q4 2022 Business highlights
Q4 2022 Business highlights O Strong aftermarket with sales close to ATH in Q3 2022 O21 Kit-order for ACJ320 together with Airbus Corporate Jets (Dec-22) CTT: ;
Slide 4: Q4 2022 | Financials in short
Q4 2022 | Financials in short 1 “ers CV Net Sales of 68 MSEK (42) - increased 61% - currency adjusted 33% - in the forecasted range MSEK 65 Y | 65 C2 EBIT 21 MSEK (8) - EBIT Margin 31% (19) CQ) EPS1.42 SEK (0.34) 2 C2 Operating cash flow of 18 MSEK (20) +160% +314% v 4 ua
Slide 5: Q4 2022 | Net Sales Bridge and Mix
Q4 2022 | Net Sales Bridge and Mix 9 SK 0422 68 i 70 28 0 Core: 69 Retrofit; 0% Non-Core; 6% OEM; 6% 60 Private jet; 8% 50 oy 40 — 3 30 OEM Private jet Non-Core Q421 Retrofit Aftermarket Q422 Aftermarket; 80% CTT:
Slide 6: Q4 2022 Order Intake & Backlog
Q4 2022) Order Intake & Backlog QV Order intake 52 MSEK vs 46 MSEK same period last year C1 Aftermarket driven sales growth with short lead-time from order to delivery (some order and delivery in the same quarter) C1 One new Private jet order during the quarter, to be delivered during the first quar
Slide 7: Q4 2022 | EBIT Profit Bridge
Q4 2022 | EBIT Profit Bridge C2 Business related performance improvements - driven by sales volume C2 Stronger USD/SEK compared with last year - contributing with 9 MSEK on EBIT C1 Weaker USD/SEK compared to last quarter closing, with negative impact on AR/AP valuation - offsetting 6 MSEK on EBIT 3
Slide 8: Q4 2022 Cash Flow
Q4 2022 Cash Flow C1 Operating cash flow +18 MSEK (20), driven by improved financial performance (EBITDA) of 23 MSEK Change in Cash go. SEK 70 23 60 —=io 0 60 =3 =1 aT a ~o” 7 50 ag CTT: 3
Slide 9: Q4 2022 | Net Debt
Q4 2022 | Net Debt QC) Net debt amounting to -15 MSEK compared 23 MSEK in Q4 last year Cash 60 MSEK and in addition available credit facilities amounting to S1 MSEK C2 Solidity 71% (65%) and Net Debt / (R12 EBITDA) -0.15 (0.6) 60 40 mmm Nel debt Net Debt / R12 EBITDA CTT: °
Slide 10: FY 2022
FY 2022 10
Slide 11: FY 2022 Financials in short
FY 2022 Financials in short pe Private jet; 9% 300 MSEK Net Sales Bridge (MSEK) 250 gg 2 200 “ Aftermarket; 78% 150 > = = i EBIT (HSER) a EPSSEK) 368% 50 0 2021 OEM wevatt eal Non-Core 2022 | 1B | 2021 2022 2021 2022
Slide 12: FY 2022 | EBIT Profit Bridge
FY 2022 | EBIT Profit Bridge C2 Business related performance improvements - driven by sales volume & mix - added 54 MSEK on EBIT C2 Stronger USD/SEK compared to 2021 added 23 MSEK on EBIT C1 Other costs include variable remuneration to management and employees (profit-sharing foundation) B 92 jC 9 4
Slide 13: FY 2022 Cash Flow
FY 2022 Cash Flow C1 Operating cash flow +61 MSEK (30), mainly driven by improved financial performance (EBITDA) partly offset by working capital QV Tax refund of MSEK 5 from year 2021 and tax debt 2022 of MSEK 7 1 Working capital increased primarily due to higher sales level - driving increased AR
Slide 14: FY 2022 | Proposed Dividend AGM 2023
FY 2022 | Proposed Dividend AGM 2023 C1 Proposed dividend: 4.05 SEK / share (0.79) - 77 % of EPS 2 Total proposed dividend 51 MSEK (10) 9.00 SEK 8.00 7.00 6.00 739 5.56. 5, 5.00 4.05 4.00 3.79 eZ 3.00 3.00 2.48 500 172 = 1.00 0.00 ih 2014 2015 2016 2017 2018 2019 2020 2021 2022 29 =- mDPS * MEPS Str
Slide 15: Outlook
OUTLOOK 15
Slide 16: Forecast Q1 2023
Forecast Q1 2023 _ i} I i 2) ! ming 1 oo 1 i) 1 C1 Net Sales Forecast 04 2022: 68 - 73 MSEK (49) (Y-0-Y-increase of 38 % - 48 %) 0 QC) Qlsales growth expected to be quarter-to-quarter driven by private jet and OEM; partly offset by 2 consolidation in aftermarket due to inventory build-up at distribu
Slide 17: Aftermarket sales expected to pause q-to-q growth
Aftermarket sales expected to pause q-to-q growth “ 150 ma CQ) Boeing 787s back to delivery mode - 100 ready-built aircraft representing ~10 % population growth 100 98 99 2 Pandemic-recovery gradually fades - Back-to-normal where aftermarket correlates with population growth | 2 | 50 | 0 meacng RRRE
Slide 18: Pandemic low in Q4 2022 - Full-Year 2022 vs 2019
Pandemic low in Q4 2022 - Full-Year 2022 at MSEK 20 vs MSEK 166 in 2019 [i i aa Q Boeing 787 at low build-rate (1-2 per month) - gradual increase to 5 by ende25 2017 2018 2019 2020 2021 2022 Q Airbus currently targeting A350 build-rate to increase to 6 in 2023 Q First 777X delivery expected in 2025
Slide 19: The anti-condensation retrofit opportunity
The anti- condensation retrofit opportunity Ox 8) ee ZT OEE 4 C2 Anti-Fuselage-Condensation (A320 / Boeing 737) - ) sustainably and high oil price fC Retrofit to drive OEM: 30 Q) Efforts to obtain STC for Boeing 737 MAX - Re-open discussions with Boeing team 20 Q A320 operators to demand line-fit or
Slide 20: 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
Slide 21: Private jet opportunity
Private jet The private jet opportunity w 30 Dominating the widebody VIP segment — Poised to grow into large cabin bizjet segment 20 10 CTT is the dominating humidification supplier for VIP aircraft: 5 WSEK 0 "Widebody VIP: Humidification is a de-facto standard 30 2017 2018 2019 2020 2021 2022 = Nar
Slide 22: Lufthansa Technik
2022 ¢ Lufthansa Technik Contract for VIP cabin completion of an ACJ320neo Teil ° Airbus ACJ promotes the optimized humidification system for ACJ320neo VIP Family + Bolt-on-kit delivery - More scalable vs VIP projects together with completion centers + Successful partnership - Another kit-order in Q
Slide 23: Airbus promotes kit for ACJ TwoTwenty business jet
#2 Airbus promotes kit for ACJ TwoTwenty business Jet Bolt-on-kit with STC delivered togete with au) wave aircraft for completion ACJ promotes and sells humidification together with ‘green’ aircraft * AC) launched Inflight Humidification at EBACE in May 2022 + First order in partnership with Airbus
Slide 24: 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 QC) World’s first humidification system C1 In-ser
Slide 25: We make flying a little better
WE MAKE FLYING A LITTLE BETTER THRIVE WITH HUMIDITY AT HEALTHY LEVEL /_
Slide 26: We make flying a little more sustainable
WE MAKE FLYING A LITTLE MORE SUSTAINABLE (ff F i Take action for our future Nid _ peduce your CO,-emissions f 4 - " > Se s " A ! zs j = ‘@ — j I Take up the challen ~reduce every way YOU f Now! ; + " "