Slide 1: Earnings Call Q4 2024
HENRIK HÖJER MARKUS BERG CEO CFO EARNINGS CALL Q4 2024 CTT SYSTEMS AB Fourth Quarter 2024 2025-02-07
Slide 2: Business Highlights in Q4
Business Highlights in Q4 All three product areas gained momentum in Q4 ✓ OEM market increased – as Boeing increased 787 build from 4 to 5 ✓ Private jet – More RFQs and won orders totaling 8 MSEK ✓ Retrofit – RFQs for total 500 a/c 2
Slide 3: Strong start in 2025
Strong start in 2025 ✓ OEM deliveries leapfrog as Boeing resumed in January started to take deliveries from CTT at 787 build-rate pace ✓ Private jet orders amounting to 11 MSEK ✓ Anti-Condensation order for 146 a/c – 120 MSEK – CTT’s largest order so far 3
Slide 4: Q4 2024 Financials in short
Q4 2024 Financials in short +1% ❑ Net Sales of 82 MSEK (81) – increased 1% - currency adjusted 1% ❑ EBIT 34 MSEK (32) - EBIT margin 41% (39) ❑ Net Profit 24 MSEK (27) – Profit margin 37% (43) ❑ EPS 1.93 SEK (2.19) ❑ Operating cash flow of 16 MSEK (30) +6% -12% 4
Slide 5: Q4 2024 Net Sales Bridge and Mix
Q4 2024 Net Sales Bridge and Mix Net Sales increased MSEK 1; ❑ Driven MSEK 1 by OEM, despite negative impact from inventory reduction at Boeing ❑ Driven MSEK 7 by Private jet, weak comparable quarter ❑ Offset by MSEK 7 in Aftermarket – due to tough comparable quarter in 2023 Net Sales Bridge (MSEK)
Slide 6: Q4 2024 EBIT Bridge
Q4 2024 EBIT Bridge ❑ Positive currency effects amounting to MSEK 8 ❑ Negative sales mix & price offset MSEK 5 MSEK +8 0 34 32 -1 -5 6
Slide 7: Q4 2024 Cash Flow
Q4 2024 Cash Flow ❑ Operating cash flow amounted to MSEK 16 compared to MSEK 30 in Q423, lower mainly due to negative working capital 69 54 7
Slide 8: Q4 2024 Net Debt & ROCE
Q4 2024 Net Debt & ROCE ❑ Net debt amounting to -25 MSEK compared -76 MSEK in Q4 last year ❑ Cash 69 MSEK and in addition available credit facilities amounting to 53 MSEK ❑ Equity ratio 74% (75%) and Net Debt / (R12 EBITDA) -0.2 (-0.6) MSEK 8
Slide 9: FY 2024 Financials in short
FY 2024 Financials in short ❑ Net Sales decreased 3% to 300 MSEK (309) ❑ Sales mix dominated by Aftermarket (78%) ❑ EBIT decreased 5% to MSEK 113 (118) ❑ EBIT margin 38% (38) ❑ EPS amounted to 6.82 SEK (7.62) ❑ Operating cashflow amounted to MSEK 66 (117) Net Sales Bridge (MSEK) Sales Mix, % 300 9
Slide 10: FY 2024 Proposed Dividend AGM 2025
FY 2024 Proposed Dividend AGM 2025 ❑ Proposed dividend per share (DPS): 5.35 SEK (78 % of EPS), compared to last year: 5.35 SEK plus extra dividend 3.35 SEK ❑ Total proposed dividend 67 MSEK (109) Strong financial position: Cash & available credit facilities: 122 MSEK Solidity: 74 % (75) SEK Net deb
Slide 11: Guidance Q1 2025
Guidance Q1 2025 ROLLING 4Q The net sales guidance for Q1 is MSEK 50 – 60, Aftermarket OEM system Private jet Retrofit Non-Core impacted quarter-to-quarter from 400 375 ↓ Aftermarket sales decrease due to well 350 325 stocked distributors and weak spares demand; 300 275 resulting in sharp drop in CT
Slide 12: CTT's aftermarket model
CTT’s aftermarket model • Constitutes total demand for consumables, spares and repair • End-customers are aircraft operators such as airlines • CTT has an indirect model and sells only through distributors. • Distributors have inventories and sells direct to airlines • 70 airline customers • 3000+ h
Slide 13: Aftermarket dynamics
Aftermarket dynamics • Underlying demand for consumables is stable with single-digit growth • Spares demand sluggish driven by new customers and operators fleet size • Repair linked to population in-service and age / out-of-warranty Consumables Spares / IP Repair Growth driver Total in-service New c
Slide 14: Aftermarket outlook
Net Sales Aftermarket outlook 300 250 200 243 233 150 187 • CTT’s deliveries in Q1 significantly below end-market demand 100 124 147 • Well stocked distributors in Q1 into Q2 50 98 72 99 • CTT’s end-market currently at MSEK 50 – 60, growing at 0 2017 2018 2019 2020 2021 2022 2023 2024 single-digit p
Slide 15: CTT's OEM model
CTT’s OEM model • Sole supplier to Airbus and Boeing – Optional equipment • Airbus A350 and Boeing 787 - in ramp-up phase • Boeing 777X in flight testing / certification and first delivery in 2026 Boeing 787 A350 Boeing 777X Humidifier 3 6 5 shipset max Competition No No No Average build 2.5 < x >2
Slide 16: OEM Dynamics: Ramp-up but issues to solve
OEM Dynamics: Ramp-up but issues to solve Totally 1803 delivered / 2013 on order: ❑ A350: 642 delivered / 702 on order ❑ Boeing 787: 1161 delivered / 796 on order ❑ Boeing 777X: 0 delivered / 515 on order ❑ Airbus A350 build-rate at 6 - targeting 10 in 2026 and then 12 in 2028 ❑ Boeing targets to in
Slide 17: OEM outlook
OEM outlook 200 Net Sales 1. CTT’s deliveries leapfrogging in Q1 as Boeing resumed to 150 166 take deliveries tracking build-rate 100 126 2. Addressable market growing significantly 104 83 3. Shipset content on A350s increasing 50 50 35 40 175 0 25 20 2017 2018 2019 2020 2021 2022 2023 2024 150 40 Q
Slide 18: Private jet business model
Private jet business model • VIP aircraft from Airbus and Boeing and large- cabin business jets • Historically VIP projects • Airbus Corporate Jets (ACJ) leads the way by promoting and selling the jointly developed kit- system • Targeting large-cabin business jet segment 18
Slide 19: Private jet
Private jet 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 5 for A
Slide 20: OEM key to volumes
— ee OEM key to volumes
Slide 21: CTT's retrofit model
CTT’s retrofit model • Cabin humidification and Anti-Condensation • CTT sells direct and together with Collins Aerospace 21
Slide 22: Opportunity: Anti-Condensation retrofit
Opportunity: Anti-Condensation retrofit ❑ 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 ST
Slide 23: 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 24: Summary
Summary ↑ Stronger markets in all our three product areas: ↑ 2025: Significant growth in OEM, Private jet and with the first retrofit deliveries in years ⭞ Significant but transitory drop in aftermarket in Q1 into Q2 ↑ Underlying / End-Aftermarket demand growing at single- digit pace ⭞ CTT’s sales l
Slide 25: Take action for our future
ke action for our future take action for our fu Take up the challen ~reduce every way YOU
Slide 26: We make flying a little better
WE MAKE FLYING A LITTLE BETTER THRIVE WITH HUMIDITY AT HEALTHY LEVEL 26