Ctt Systems Ab · OMXSTO:CTT
Ctt Systems Ab — Shareholder Meeting (May 2024)
26 slides from Ctt Systems Ab's shareholder meeting presentation, May 6, 2024
Slide 1: Annual General Meeting 2024
May 6, 2024 ANNUAL GENERAL MEETING 2024 HENRIK HÖJER CEO
Slide 2: Humidity control makes air traveling better
HUMIDITY CONTROL MAKES AIR TRAVELING BETTER A little more sustainable and far more pleasurable ❑ Humidity is vital for our immune system ❑ Humidity reduces electrostatic electricity ❑ Humidity improves our sense to taste ❑ Humidity increases our wellbeing and wellness THE DRY PROBLEM ❑ Humidity is b
Slide 3: Cabin climate more dehydrating than the desert
ONE EVERY FLIGHT: CABIN CLIMATE MORE DEHYDRATING THAN THE DESERT
Slide 4: Moisture from fuselage condensation accumulates
ONE EVERY FLIGHT: MOISTURE FROM FUSELAGE CONDENSATION ACCUMULATES
Slide 5: The Solution: Active moisture control
The Solution: Active moisture control Humidifiers De-Humidifiers 50+ ONLY A FEW REPEAT NB CUSTOMERS AIRLINE CUSTOMERS LARGE INSTALLED 787-BASE WITH 50+ AIRLINES ❑ Sole OEM supplier - Strong market ❑ Underlying trends supportive position ❑ No leverage without catalogue ❑ Diversified customer base sta
Slide 6: Some CTT Facts
Some CTT Facts ❑ A ”Great Place to Work” ❑ Our staff the 20th largest shareholder in CTT through the Foundation. ❑ FTE since inception has 2.200 shares in CTT via the Foundation ❑ For 2023, additional SEK 101,000 per eligible employee will be allocated to acquire CTT shares ❑ Installed base of Anti-
Slide 7: Summarizing 2023
Summarizing 2023 OEM ❑ Strong year in the aviation industry – particularly for long-distance operations Operations ❑ Boeing approved the first series deliveries of our humidifier systems for 777X. ❑ A new A350 operator selected five of our six humidifier systems. Private Jet ❑ 100% of delivered ACJ
Slide 8: Widebody order bonanza
Widebody order bonanza Strong market – record year for new aircraft orders ❑ Ordered long-haul aircraft the highest in over 15 years, order backlog for A350, Boeing 787 and 777X to a total of around 1,900. ❑ Airbus and Boeing target to double the production rate by 2026. ❑ System sales to increase w
Slide 9: Summarizing 2023
Summarizing 2023 OEM ❑ Strong year in the aviation industry – particularly for long-distance operations Operations ❑ Boeing approved the first series deliveries of our humidifier systems for 777X. ❑ A new A350 operator selected five of our six humidifier systems. Private Jet ❑ 100% of delivered ACJ
Slide 10: The Boeing 777X
The Boeing 777X The first series deliveries of our humidifier systems for Boeing 777X 10
Slide 11: Summarizing 2023
Summarizing 2023 OEM ❑ Strong year in the aviation industry – particularly for long-distance operations Operations ❑ Boeing approved the first series deliveries of our humidifier systems for 777X. ❑ A new A350 operator selected five of our six humidifier systems. Private Jet ❑ 100% of delivered ACJ
Slide 12: Humidifier Onboard Business in A350
Humidifier Onboard Business in A350 ❑ 3 airlines are today flying A350 with Cabin Humidification ❑ A new A350 operator selected five of our six humidifier systems for the first batch of its aircraft order. ❑ Two airlines, have specified humidification in the entire premium cabin of their new A350s.
Slide 13: Summarizing 2023
Summarizing 2023 OEM ❑ Strong year in the aviation industry – particularly for long-distance operations Operations ❑ Boeing approved the first series deliveries of our humidifier systems for 777X. ❑ A new A350 operator selected five of our six humidifier systems. Private Jet ❑ 100% of delivered ACJ
Slide 14: Airbus Corporate Jets leads-the-way
Airbus Corporate Jets leads-the-way Successful promotion of humidification system as part of comfort climate – 100 % selection 14
Slide 15: Sustainability
15 Sustainability UN Agenda 2030 and related Sustainable Development Goals have provided guidance in efforts to identify the most relevant sustainability issues for CTT to deal with, monitor and report. CTT has chosen to group these under three areas: ENVIRONMENTAL RESPONSIBILITY Anti-condensation s
Slide 16: Summarizing 2023
Summarizing 2023 OEM ❑ Strong year in the aviation industry – particularly for long-distance operations Operations ❑ Boeing approved the first series deliveries of our humidifier systems for 777X. ❑ A new A350 operator selected five of our six humidifier systems. Private Jet ❑ 100% of delivered ACJ
Slide 17: Financials in short
FY 2023 Financials in short ❑ Net Sales increased 28 % to 309 MSEK (241), driven by Aftermarket and OEM ❑ Sales mix dominated by Aftermarket (79%) ❑ EBIT increased 29 % to MSEK 118 (92) ❑ EBIT margin 38% (38) ❑ EPS increased 44 % to 7.62 SEK (5.29) Net Sales Bridge (MSEK) Sales Mix, % 309 17
Slide 18: Aftermarket demand normalized
Aftermarket demand normalized 300 250 243 200 187 150 Underlying aftermarket demand tracks changes in population size, driven by 147 ▪ Growth from more systems in-service on Airbus and Boeing 100 124 98 99 ▪ Repair growth driven by more systems out of warranty and ageing population 50 72 0 2017 2018
Slide 19: Shift in growth driver – Next phase
Shift in growth driver – Next phase Net Sales 400 350 MSEK 137 10 15 300 166 30 18 0 35 250 14 35 126 243 21 0 200 15 104 20 5 32 187 150 83 147 7 10 124 25 100 98 99 50 72 0 2017 2018 2019 2020 2021 2022 2023 Aftermarket OEM Private jet Retrofit 19
Slide 20: OEM – The growth engine (again)
OEM – The growth engine (again) Net Sales 200 150 166 100 126 ❑ Boeing 787 build-rate currently at 5 per month - targeting 10 by 2025 / 2026 timeframe 104 ❑ Airbus A350 build-rate at 6 - targeting 10 in 2026 and then 12 in 2028 83 50 ❑ First 777X aircraft delivery to airline expected in end-2025 – C
Slide 21: Humidifier Onboard First & Business class
Humidifier Onboard First & Business class ❑ Total 6 A350-900s ❑ Destinated for Aeroflot ❑ 2 premium cabin zones ❑ New owner – Premium brand - Expansion ❑ Humidifier Onboard Business Class in 10 ❑ Air India’s firm orders for A350-900s 250 new aircraft with ❑ In-service since 2019 Airbus include addit
Slide 22: The cabin humidification retrofit opportunity
The cabin humidification retrofit opportunity ❑ Growing airline interest in cabin air quality / humidity / wellness ❑ Better market conditions ❑ Many airlines are in the planning of next-gen business class; driven by competition and harmonize new aircraft interior ❑ Retrofit opportunity: 1,000 Boein
Slide 23: Anti-Condensation retrofit to drive OEM
Anti-Condensation retrofit to drive OEM Net Sales ❑ No OEM Availability – OEM is a requirement for scalable growth 40 35 ❑ Supporting trends in sustainability goals 30 ❑ Retrofit demand to drive OEM: 25 ❑ A320 operators to demand line-fit or post-delivery 20 15 modification – Focused efforts to win
Slide 24: OEM key to volumes
+— _ OEM key to volumes
Slide 25: Busy spring and summer
Busy spring and summer Upcoming Exhibitions ❑ AIX Hamburg May 28-30 ❑ EBACE Geneva May 28-30 ❑ Red Cabin Dallas June 12-14 ❑ ACJ Forum 2024 Toulouse June 25-27 ❑ OOC BBJ 2024 Lisboa Sept 9-12 ❑ Red Cabin Biz Jet Montreal Sept 10-12 ❑ Aircraft Cabin Air London Sept 17-18 ❑ Airline meetings Worldwide
Slide 26: We make flying a little better
WE MAKE FLYING A LITTLE BETTER THRIVE WITH HUMIDITY AT HEALTHY LEVEL 26