Ctt Systems Ab · OMXSTO:CTT
Ctt Systems Ab — Q3 2022 Earnings Presentation
26 slides from Ctt Systems Ab's earnings presentation, Oct 28, 2022
Slide 1: Earnings Call Q3 2022
October 28, 2022 EARNINGS CALL Q3 2022 GIT: eee £ MM S
Slide 2: Henrik Höjer, Markus Berg
HENRIK HOJER MARKUS BERG ce cro CTT: 2
Slide 3: Q3 2022 Business highlights
Q3 2022 Business highlights O21 Aftermarket demand stronger than anticipated — increased quarter-to-quarter with 40 % to a new ATH C1 Boeing resumed deliveries of 787s in August 2 120+ ready-built aircraft representing 10 % of population growth to CTT Q2 Gradual production increase from current leve
Slide 4: Q3 2022 Financials in short
Q3 2022 Financials in short CV Net Sales of 65 MSEK (40) - increased 62% - currency adjusted 34% - beat forecast MSEK 58 - 63 Y C2 EBIT 33 MSEK (12) - EBIT Margin 51% (29) Q2_EPS1.90 SEK (0.56) C1 Operating cash flow of 31 MSEK (10) +191%
Slide 5: Q3 2022 Net Sales Bridge and Mix
Q3 2022 Net Sales Bridge and Mix Net Sales increase was driven by the Aftermarket 70 65 MSEK 28 0322 a Retrolit; 0% 0 Non-Core: 45 op. 40 OEM Private jet Non-Core Q321 Retrofit Aftermarket Q322 CTT: 5
Slide 6: Q3 2022, Order Intake & Backlog
Q3 2022, Order Intake & Backlog C1 Order intake 99 MSEK vs 40 MSEK same period last year C1 Aftermarket sales dominating revenue with short lead-time from order to delivery (some order and delivery in the same quarter) C1 Two new Private jet orders during the quarter, to be delivered during the firs
Slide 7: Q3 2022 EBIT Profit Bridge
Q3 2022| EBIT Profit Bridge C1 Business related performance improvements - driven by sales volume and mix (driven by Aftermarket and Private jet sales - coupled with lower OEM) 2 Stronger USD/SEK with positive impact on reported sales in SEK and AR/AP valuation 9 oo P| 8 4 3 2 Q321 Sales Volume Sale
Slide 8: Q3 2022 Cash Flow
Q3 2022 Cash Flow C1 Operating cash flow +31 MSEK (10) driven by improved financial performance (EBITDA) Q 1 Working capital +0.5 MSEK (-0.7), higher inventory offset by improved AR/AP Change in Cash 60 MSEK 35 50 = 1 ot 44 rr a 40 5 A -2 0 30 20 45 ® a ie) 10 2 Pa * & > 2 y 2 @ g&§ § ££ § § F FS F§
Slide 9: Q3 2022 Net Debt
Q3 2022 | Net Debt QC) Net debt amounting to 5 MSEK compared 39 MSEK in Q3 last year Q1 Available credit facilities amount to 49 MSEK Q2 Solidity 71% (65%) and Net Debt / Equity 2% (19%) 60 MSEK \8 0 \ lo 20 06 02 03-20 04-20 Ql-21 2-21 03-21 04-21 I-22 02-22 03-22 -02 2 06 10 40 44 60 3 22 80 26 Mm
Slide 10: Q1-Q3 2022
Q1-03 2022 10
Slide 11: Q1-Q3 2022 Financials in short
ACC 0322 Q1-Q3 2022| Financials in short << Net Sales Bridge (MSEK) 200 SEK Mera 74 180 60 2 173 160 oJ: +218% 140 il 120 109 8 om ° 3 iz 80 60 40 ee | +391% 20 0 OEM Private jet Non-Core Acc Q321 Retrofit Aftermarket Acc Q322 |
Slide 12: Q1-Q3 2022 Cash Flow
Q1-03 2022 Cash Flow C1 Operating cash flow +43 MSEK (10), mainly driven by improved financial performance (EBITDA) partly offset by working capital OQ) Working capital increased primarily due to stronger sales / AR increase and from increasing inventory C1 Reduced debt due to re-payment of USD loan
Slide 13: Rolling 4Q
ROLLING 4Q 13
Slide 14: Rolling 4Q Financials in short
Rolling 4Q| Financials in short CV Net Sales of 215 MSEK (144), up 49% versus comparable Rolling 40 (0420 - 0321) Net Sales Bridge C1 Operating Profit (EBIT) increase 335% to 79 MSEK (18) 250 a (2 EBIT Margin increase to 37% (13) a C2 EPS 4.22 SEK (0.94), an increase of 350% 200 : \ CQ. Operating ca
Slide 15: Outlook
OUTLOOK 15
Slide 16: Airlines report strong outlook — but clouds in the sky
Airlines report strong outlook — but clouds in the sky FINANCIAL TIMES US COMPANIES TECH MARKETS CLIMATE OPINION WORK& CAREERS LIFES ARTS HTSI QO CTTisina strong position to grow sales in all our segments QO Airlines report outlook on strong demand for air travel (2 Prepared if recession hits travel
Slide 17: Forecast Q4 2022
Forecast Q4 2022 i r » H 65-70 60 1 Cd Net Sales Forecast 04 2022: 65 - 70 MSEK (40) (Y-0-Y-increase of 62 % - 75 %) 5 H C1 04 sales expected to be quarter-to-quarter driven by private jet and partly offset by ° consolidation in aftermarket in light of positive inventory effect in 03 ; v ‘ a2 Bn Q42
Slide 18: Aftermarket sales expected to pause q-to-q growth
Aftermarket sales expected to pause q-to-q growth All-time-high in Q3 - driven by inventory effect - some quarters to consolidate O21 Boeing 787s back to delivery mode - 120+ ready-built aircraft representing 10 % population growth Q) Pandemic-recovery gradually fades - Back-to-normal where aftermar
Slide 19: OEM system rolling
OEM system rolling 40 OEM will not contribute to growth in 2022 - Recovery starts in 2023 OEM at lows rebound from 2023 : : | Mii: QN9 0219 0319 419 0120 0220 0320 0420 0121 0221 0321 0421 0122 0222 0322 Lufthansa take delivery of their 1 out of 7 Boeing 787 with Humidification on Flight Deck and Cr
Slide 20: The anti-condensation retrofit opportunity
The anti-condensation retrofit opportunity Ser on ee TA OSORNO SL 4 (C2 Anti-Fuselage-Condensation (A320 / Boeing 737) - sustainability and high oil price 0 % 30 C1 Retrofit to drive OEM: ] Q) Efforts to obtain STC for Boeing 737 MAX - Re-open discussions with Boeing team 20 0 QV A320 operators to d
Slide 21: The cabin humidification retrofit opportunity
The cabin humidification retrofit opportunity Air quality and health in focus - Benefit versus cost compelling - Driven by wellbeing and wellness
Slide 22: The private jet opportunity
Private jet The private jet opportunity wo 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: 0 = Widebody VIP: Humidification is a de-facto standard 2017 2018 sc gs Ss = Narrowbody VIP: Humidi
Slide 23: #1 Airbus partnership to increase ACJ320 VIP penetration
J a J a #1 Airbus partnership to increase ACJ320 VIP penetration © omits ftetesnOl eS ee J JV SuSM Invservice Q) Bolt-on-kit delivery - More scalable vs VIP projects together with completion centers (ie) Vv
Slide 24: #2 Airbus partnership on ACJ TwoTwenty business jet
#2 Airbus partnership on ACJ TwoTwenty business jet ‘AQ TwoTwenty J J SIM-$3M 203 CQ) Delivered together with aircraft for completion OQ Bolt-on-kit with STC
Slide 25: #3 Opportunity: Large-cabin bizjet market
#3 Opportunity: Large-cabin bizjet market Q2 Large-cabin, long-range business jets - 50 - 100 a/c per year Q) Long-range (10+ hours) - Equipped for best comfort - Humidification system required for matching climate ‘F*Humidification fitted Global 7500 aircraft . delivered to charter operator — In-se
Slide 26: Market drivers stronger in the wake of the pandemic
Market drivers stronger in the wake of the pandemic Would you rather prefer to fly in an aircraft that pollute # 65(02-balloons less per year? Would you rather prefer to fly long- haul in an aircraft cabin that offers an ‘oasis in the desert’?