Presentation ABG 2018-12-04 CTT Systems AB -provides humidity control for the aerospace industry In partnership with
HUMIDITY DILEMMA IN MODERN AIRCRAFTS Condensation Too dry during flight Humid air from passengers (blue arrows) condensate out in form of frost. During descend frost melts, water accumulates in blankets. 2018-12-04 CTT – Torbjörn Johansson
THE PRODUCTS – HUMIDITY IN BALANCE Lowered fuel burn Reduced change rate of blankets 1. Preventing condensation build-up Reduced corrosion Less electrical failures Increased cabin comfort Lower emissions Better working climate 2. Flight deck / crew rest humidification Quicker recovery between flights Less likelihood of catching colds Less fatigue Better sleep Reduced risk of airborne infections Increased well being 3. Cabin humidification A more relaxed and comfortable flight Less dry skin and sore throat Better sleep Food and wine taste better 2018-12-04 CTT – Torbjörn Johansson
CTT SYSTEMS AB (PUBL.) 2018 Q3 • Net Sales increased by 33 % to 80,9 MSEK (61,0) – an increase with 24 % when adjusted for currencies • Operating Profit EBIT amounted to 27,1 MSEK (15,7) • Operating Margin (EBIT-margin) amounted to 33 % (26) • Net After-Tax Result amounted to 21,6 MSEK (13,5) • Earnings per share (EPS) 1,73 SEK (1,07) • Cash flow from operations amounted to 25,1 MSEK (20,0) 2018-12-04 CTT – Torbjörn Johansson
CTT SYSTEMS AB (PUBL.) 2018 Q3 2018-12-04 CTT – Torbjörn Johansson
CTT SYSTEMS AB (PUBL.) 2018 Q3 2018-12-04 CTT – Torbjörn Johansson
GUIDANCE FOR Q4 2018 • The Net Sales is forecasted to be between 90 and 95 MSEK (63,9). • This would mean Net Sales for 2018 of 311 – 316 MSEK. • A Year to Year growth of about 15%. 2018-12-04 CTT – Torbjörn Johansson
BOEINGS 787 ZONAL DRYING DECISION • The Zonal Drying system will be removed as basic equipment on B787. • This decision will have financial impact on CTT, from end of 2019. • The last seven quarters this accounted for 15-20% of CTTs Net Sales. • Boeings opinion is that Wide Body aircrafts with Crown Recirculation system (B787 and B777X) do not need the Zonal Drying system. • This decision has no impact on CTTs Crew Humidifiers for the B787. The aftermarket sales are much larger for the B787 Humidifiers than for the Zonal Dryers. • The main market for the Zonal Drying system is A320 and B737 family aircraft. 2018-12-04 CTT – Torbjörn Johansson
ZONAL DRYING™ SYSTEM TM System The Zonal Drying • Boeings 787 decision is of course negative for CTTs marketing of Zonal Drying systems. • Jet Fuel Price is now at 80 USD per barrel. • Passenger densification trend in Narrow Body aircraft. Focus ahead: Achieve Optional status on A320 neo & B737 MAX. • 2018-12-04 CTT – Torbjörn Johansson
CREW HUMIDIFICATION SYSTEM Crew Humidification System 2018-12-04 CTT – Torbjörn Johansson
CREW HUMIDIFIERS Crew Humidifiers • We delivered 112 (94) Crew Humidifiers in Q3, 2018. • 21 (0) of these Humidifiers were to A350. • We have delivered the first FD Humidifier for MC21. • We have received the first orders for FD Humidifiers to B777X. • The Crew Humidifiers generates strong aftermarket sales. 2018-12-04 CTT – Torbjörn Johansson
VIP VIP System • During 2018 we have received orders for 7 (0) VIP aircraft. • Sales from VIP will increase during Q4 2018. 2018-12-04 CTT – Torbjörn Johansson
VIP CUSTOMER CAIR™ SYSTEM B767, A319, A319,A320 A320, B777 A340 BBJ B747, BBJ, BBJ, A330, A340 A319 B767, A320, B777, A340 B747-8 A330, A340 BBJ B747-8 A340-500 A319, A320, BBJ3 A319 BBJ3, B757 2018-12-04 CTT – Torbjörn Johansson
THE CAIR SYSTEM TM System The CAIR 2018-12-04 CTT – Torbjörn Johansson
WHY INCREASED CABIN HUMIDITY?
THE CAIR SYSTEM 2018-12-04 CTT – Torbjörn Johansson
THE CAIR SYSTEM TM System The CAIR • China Southern has ordered the system to Business Class for A350. Emirates has selected the system to First Class for B777X. • • ANA has selected the system to First and Business for B777X. • One more airline has selected Business Class humidification for A350. • Totally this means up to 278 Cabin Humidifiers. • This will broaden the aftermarket sales for Humidifiers. 2018-12-04 CTT – Torbjörn Johansson
AFTERMARKET Aftermarket • CTT has delivered 2 600 Zonal Dryers. • CTT has delivered 2 400 Humidifiers. • During Q1 – Q3 2018, the aftermarket did grow with 39 % (B787 IP excluded). This growth is mainly generated by our Crew Humidifiers. 2018-12-04 CTT – Torbjörn Johansson
AFTERMARKET 2018-12-04 CTT – Torbjörn Johansson
AFTERMARKET 2018-12-04 CTT – Torbjörn Johansson
AFTERMARKET Zonal Dryer Lifetime Revenue 2018-12-04 CTT – Torbjörn Johansson
AFTERMARKET Humidifier Lifetime Revenue 2018-12-04 CTT – Torbjörn Johansson
MAIN RISKS • USD – 2017: 10 % lower USD/SEK � 35 % lower EBIT • Customer relations – CTT products are optional – Full value over the products lifecycle Few dominant customers • – Boeing & Airbus • Deliverability – Dependency on subcontractors • Competition – OEM – Aftermarket 2018-12-04 CTT – Torbjörn Johansson
AIRBUS A380 331 aircraft ordered • • Humidifier option for Flight Crew Rest and Attendant Crew Rest • 15 airlines • 230 aircraft delivered 2018-12-04 CTT – Torbjörn Johansson
BOEING 787 • Zonal Drying™ basic • 1403 aircraft ordered • Humidifier option for Flight Deck • 59 airlines • Humidifier basic for Flight Crew • 754 aircraft delivered Rest and Attendant Crew Rest 2018-12-04 CTT – Torbjörn Johansson
AIRBUS A350 • Zonal Drying™ option • 890 aircraft ordered • Humidifier option for Flight Deck, Flight • 44 airlines Crew Rest and Attendant Crew Rest • 212 aircraft delivered • Cair™ option for First and Buisness 2018-12-04 CTT – Torbjörn Johansson
BOEING 777X • Humidifier option for Flight Deck, • 326 aircraft ordered Flight Crew Rest and Attendant • 7 airlines Crew Rest • First delivery 2020 • Cair™ option for First and Buisness 2018-12-04 CTT – Torbjörn Johansson
CTT SYSTEMS AB (PUBL.) 2017 2018-12-04 CTT – Torbjörn Johansson
Questions & Answers Torbjörn Johansson In partnership with CEO
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