CTT Systems AB

on the world welcome to the ctt systems q4 2025 report presentation for the first part of the presentation participants will be in listen only mode during the questions and answers session participants are able to ask questions by dialing pound key 5 on their telephone keypad now i will hand the conference over to the speakers ceo henrik hoyer and cfo marcus berg please go ahead

Thank you and good morning. Welcome to CTT's quarterly earnings call. With me today is Marcus Berg, our CFO, and we will present the Q4 financial result and outlook going forward. Starting with the highlights in the quarter, we signed agreement with Boeing business jets according to MOU that we signed in October. In 25, the installed base of humidifiers in Interacted by a 3 million decrease in private jet. Aftermarket sales decreased 27 million due to inventory buildup and distributors in Q4 24 and inventory reductions in Q4 25. If adjusting for the inventory reductions in Q4 25, CTT sales would have been 10 million higher. This had a significant negative impact on mix and earnings. A breakdown of total sales shows that the aftermarket sales accounted for 61% and 34% came from system sales. Order intake was 65 million compared to 81. Backlog in the quarter ended at 100. I now hand over to Marcus for more detailed financials.

Thanks, Henrik, and good morning. Starting with the EBIT bridge, compared with last year, EBIT decreased 27 million to 7 million, impact 13 million in FX, 12 million due to lower volumes and 5 million from negative sales mix. Currency FX remained a wild card that is hard to predict, with major impact on CTT sales and earnings. Even though CTT has all loans in dollar and implemented cost savings that will have a full impact in the first half of 26, it's not enough to compensate for the sharp decline in the price of USDC. Currency contributed to a lower margin, but it's also due to depressed volumes. Volume growth and cost control will gradually drive the margin upwards to 25% or above. Let's move on and look at the cash flow. Weak operating cash flow of minus 5 million compared 16 million last year affected by low EBITDA and customer payments being pushed to the first half of 26. Strong operating cash flow in the second half of 25, same level as EBITDA. Let's continue by looking at the net debt. Net debt amounted to 9 million, compared minus 25 million in Q4 last year. Cash closed at 27 million. In addition, CTT has 58 million in available credit facilities. Equity ratio at 74%, same level as last year. Return on capital employed, 15%. We expect to improve our financial position going forward, driven by strong cash flow, pushing down net debt to negative. Let's move on and look at the year-to-date numbers. If looking at full year 2025, net sales decreased 12%, currency adjusted minus 5%. Good that system sales increased 15 million in private jet, 13 in OEM and 3 million in retrofit. Off the market sales were down 67 million. The difference between the years was amplified by inventory build up in 24 and inventory reduction in 25 and 20 million difference in revenue from IP spares due to exceptionally strong demand in 24. If adjusting for distributors inventory reduction, CTT sales should have been 32 million higher, reflecting underlying deliveries without any impact from inventories. Continuing with the EBIT bridge for the full year, Compared with last year, EBIT decreased 65 million to 48, impacted 32 million by FX, 12 million due to lower volumes and 24 million from negative sales mix. Let me repeat that volume growth and cost control will gradually drive the margin upwards to 25% or above. Let's move on and look at the proposed dividends. The board of directors proposes an ordinary dividend of SEK 2.4 per share in total 30 million or 78% of net earnings, same level as last year. I will now switch focus to sustainability. CTT continues on its journey to develop our sustainability efforts. I would like to particularly highlight five achievements during 2025. according to ISO 14001 and 45001. Second, circle a project for recycling of pads for end customer. Third, strategic sustainability goals and activities per material area is set. Four, training in use and sustainability policy and code of conduct conducted for all employees. And finally, new sustainability report that is inspired by CSRD. During the year, we have also improved the result for several of our strategic sustainability goals. I would especially like to highlight the result for the Great Place to Work survey, which has increased to 85 from 80, a great level as a total average and a proof of that CTT is a great employer. I will now hand back to Henrik for the outlook.