Slide 1: Earnings Call Q1 2023
April 28, 2023 EARNINGS CALL Q1 2023 GIT: eee £ MM S
Slide 2: Presenters: Henrik Hojer, Markus Berg
HENRIK HOJER MARKUS BERG ce cro CTT: 2
Slide 3: Q1 2023 | Business highlights
QI 2023 | Business highlights C1 Best OEM-quarter since 2020 QO) Aftermarket sales better than anticipated with demand at same level as previous quarter CTT: ;
Slide 4: Q1 2023 | Financials in short
Q1 2023 | Financials in short +53% v C2 Net Sales of 75 MSEK (49) — increased 53% - currency adjusted 36% - beat forecasted range MSEK 68 - 73 | 15 CQ] EBIT 23 MSEK (14) - EBIT margin 30% (29) Cd Profit 23 MSEK (12) - Profit margin 30% (24) CQ) EPS1.43 SEK (0.76) C2 Operating cash flow of -4 MSEK (9
Slide 5: Q1 2023 | Net Sales Bridge and Mix
Q1 2023 | Net Sales Bridge and Mix 80. MSEK 15 0 5 0123 70 [| Non-Core; 4% 60 4 OEM; 18% | 40 Retrofit; 0% Private jet; 9% 30 0 ‘Aftermarket; 69% OEM Private jet Non-Core Q122 Retrofit Aftermarket Q123 CTT:
Slide 6: Order Intake & Backlog
Q12025 | Order Intake & Backlog C1 Order intake 74 MSEK vs 63 MSEK same period last year Q1 Aftermarket accounted for 69 % of total net sales with short lead-time from order to delivery (some order and delivery in the same quarter) C1 Order backlog at 71 MSEK (76) 100 MSEK 90 80 Tl 6 5 4 3 2 I MSEK
Slide 7: Q1 2023 | EBIT Profit Bridge
QI 2023 | EBIT Profit Bridge Q) Business related performance improvements - driven by sales volume - partly offset by lower aftermarket share / mix C2 Stronger USD/SEK compared with last year - contributing with 4 MSEK on EBIT Q) Non-recurring cost amounted to 3 MSEK - EBIT excluding non-recurring a
Slide 8: Q1 2023 Cash Flow
Q12023 Cash Flow 1 Operating cash flow -4 MSEK (9), driven by improved financial performance (EBITDA) of 26 MSEK, but offset by: OQ) Payment of tax debt from 2022, net effect of -7 MSEK Q1 Late customer payments (working capital) C1 Whereof 22 MSEK received in beginning of April OQ) Remaining 21 MSE
Slide 9: Net Debt
QI 2023 Net Debt QC) Net debt amounting to-10 MSEK compared 18 MSEK in QI last year 1 Cash 54 MSEK and in addition available credit facilities amounting to 52 MSEK CQ Solidity 71% (71%) and Net Debt / (R12 EBITDA) -0.1 (0.3) 60 40 20 18 14 10 0.6 0.2 20 03-20 04-20 QI-21 Q2-21 03-21 Q4-21 1-22 Q2-22
Slide 10: Rolling 4Q
ROLLING 4Q 10
Slide 11: Rolling 4Q | Financials in short
Rolling 4Q| Financials in short CV Net Sales of 266 MSEK (169), up 58% versus comparable Rolling 40 (0221 - 0122) Net Sales Bridge C1 Operating Profit (EBIT) increase 150% to 100 MSEK (40) 300 vo C1 EBIT Margin increase to 38% (24) —_— 266 C2 EPS5.97 SEK (2.15), an increase of 177% “ i: C2 Operating
Slide 12: Outlook
OUTLOOK 12
Slide 13: Forecast Q2 2023
Forecast Q2 2023 Qa 1 Q2sales growth expected to be quarter-to-quarter driven by aftermarket sales; partly offset by 2 Q2 2023 Net Sales Forecast: 75 - 80 MSEK (58) (Y-0-Y-increase of 28 % - 37 %) decreased sales in OEM TIO MSEK 100 90 80 10 60 5 40 30 20 10 Ss o Mimi © y 2 i] 75-80 SLO HIH MS LFLFP
Slide 14: Aftermarket sales
Aftermarket sales Q) Boeing 787s back to delivery mode - -90 ready-built aircraft representing ~10 % population growth Q) Pandemic-recovery gradually fades - Back-to-normal where aftermarket correlates with population growth sek Aftermarket Rolling 40 202 Aftermarket 200 187 MSEK 60 159 50 uo 46 147
Slide 15: Trend shift in Q1 2023 - Strong rebound driven by Boeing 787
Trend shift in Q1 2023 - Strong rebound in 2023 driven by Boeing 787 production rate hike fee oi ee ie ek 0 OQ] Boeing 787 increased from 1 - 2 per monthto current level of 3 - gradual increase to 5 by end-23 - targeting 10 by 2025 / 2026 = 2 Airbus currently targeting A350 build-rate to increase to
Slide 16: 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 Q1 Efforts to obtain STC for Boeing 737 MAX - Re-open discussions with Boeing team 20 QO A320 operators to demand line-fit o
Slide 17: 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 18: Private jet
Private jet The private jet opportunity o 30 Dominating the widebody VIP segment — Targeting growth into large cabin bizjets 20 | | 10 oe "TEEEas CTTis the dominating humidification supplier for VIP aircraft: = Widebody VIP: Humidification is a de-facto standard 2017 2018 2019 2020 2021 2022 = Narro
Slide 19: Lufthansa Technik
Hd 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
Slide 20: Airbus promotes kit for ACJ TwoTwenty business jet
#2 Airbus promotes kit for ACJ TwoTwenty business Jet Bolt-on-kit with sIc devered nae with a wave aircraft for completion AG) promotes and sells humidification together with ‘green’ aircraft * AC) launched Inflight Humidification at EBACE in May 2022 * First order in partnership with Airbus Corpora
Slide 21: Opportunity: Large-cabin business jets
#3 Opportunity: Large-cabiny H(aaghe 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-
Slide 22: We make flying a little better
WE MAKE FLYING A LITTLE BETTER THRIVE WITH HUMIDITY AT HEALTHY LEVEL /_
Slide 23: We make flying a little more sustainable
& WE MAKE FLYING A LITTLE MORE SUSTAINABLE
Slide 24: Exhibition and Conference
Exhibition and Conference = May 3-12 2025 Trade Far Center Messe Minchen EURO Aircraft|EXPO Interiors 6-8June 2023 Hamburg Messe Where cabin concepts take off