presentation abg 2018-12-04 - ctt systems · 2021. 1. 6. · presentation abg 2018-12-04 in...
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Presentation ABG 2018-12-04
In partnership with
CTT Systems AB-provides humidity control for the aerospace industry
Condensation during flight
Too dry
Humid air from passengers (blue arrows) condensate out in form of frost. During descend
frost melts, water accumulates in blankets.
HUMIDITY DILEMMA IN MODERN AIRCRAFTS
2018-12-04 CTT – Torbjörn Johansson
1. Preventing condensation build-up
Lowered fuel burn
Reduced change rate of blankets
Reduced corrosion
Less electrical failures
Increased cabin comfort
Lower emissions
2. Flight deck / crew rest humidification
Better working climate
Quicker recovery between flights
Less likelihood of catching colds
Less fatigue
Better sleep
3. Cabin humidification
Reduced risk of airborne infections
Increased well being
A more relaxed and comfortable flight
Less dry skin and sore throat
Better sleep
Food and wine taste better
THE PRODUCTS – HUMIDITY IN BALANCE
2018-12-04 CTT – Torbjörn Johansson
• 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)
CTT SYSTEMS AB (PUBL.) 2018 Q3
2018-12-04CTT – 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
2018-12-04 CTT – Torbjörn Johansson
• 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%.
BOEINGS 787 ZONAL DRYING DECISION
2018-12-04 CTT – Torbjörn Johansson
• 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.
The Zonal DryingTM System
• 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
ZONAL DRYING™ SYSTEM
Crew Humidification System
CREW HUMIDIFICATION SYSTEM
2018-12-04 CTT – Torbjörn Johansson
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.
CREW HUMIDIFIERS
2018-12-04 CTT – Torbjörn Johansson
VIP System
• During 2018 we have received orders for 7 (0) VIP aircraft.
• Sales from VIP will increase during Q4 2018.
VIP
2018-12-04 CTT – Torbjörn Johansson
A319,A320B767, A319,
BBJA320, B777 A340
A340B747, BBJ,
B767, A320, A340
BBJ, A330,
B777, B747-8
A319
A330, A340 BBJ B747-8 A340-500
A319, A320,
BBJ3, B757BBJ3 A319
VIP CUSTOMER CAIR™ SYSTEM
2018-12-04 CTT – Torbjörn Johansson
The CAIRTM
System
THE CAIR SYSTEM
2018-12-04 CTT – Torbjörn Johansson
WHY INCREASED CABIN HUMIDITY?
THE CAIR SYSTEM
2018-12-04 CTT – Torbjörn Johansson
The CAIRTM
System
• 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.
THE CAIR SYSTEM
2018-12-04 CTT – Torbjörn Johansson
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.
AFTERMARKET
2018-12-04 CTT – Torbjörn Johansson
AFTERMARKET
2018-12-04 CTT – Torbjörn Johansson
AFTERMARKET
2018-12-04 CTT – Torbjörn Johansson
Zonal Dryer Lifetime Revenue
AFTERMARKET
2018-12-04 CTT – Torbjörn Johansson
Humidifier Lifetime Revenue
AFTERMARKET
2018-12-04 CTT – Torbjörn Johansson
• 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
MAIN RISKS
2018-12-04 CTT – Torbjörn Johansson
• 331 aircraft ordered
• 15 airlines
• 230 aircraft delivered
• Humidifier option for Flight Crew Rest
and Attendant Crew Rest
AIRBUS A380
2018-12-04 CTT – Torbjörn Johansson
• 1403 aircraft ordered
• 59 airlines
• 754 aircraft delivered
• Zonal Drying™ basic
• Humidifier option for Flight Deck
• Humidifier basic for Flight CrewRest and Attendant Crew Rest
BOEING 787
2018-12-04 CTT – Torbjörn Johansson
• 890 aircraft ordered
• 44 airlines
• 212 aircraft delivered
• Zonal Drying™ option
• Humidifier option for Flight Deck, Flight
Crew Rest and Attendant Crew Rest
• Cair™ option for First and Buisness
AIRBUS A350
2018-12-04 CTT – Torbjörn Johansson
• 326 aircraft ordered
• 7 airlines
• First delivery 2020
• Humidifier option for Flight Deck,
Flight Crew Rest and Attendant
Crew Rest
• Cair™ option for First and Buisness
BOEING 777X
2018-12-04 CTT – Torbjörn Johansson
2018-12-04 CTT – Torbjörn Johansson
CTT SYSTEMS AB (PUBL.) 2017
Questions & Answers
Torbjörn Johansson
CEOIn partnership with