CTT Systems AB

A premium aircraft cabin is an extremely dry place. Spending more than a couple of hours in it will cause discomfort and rapid dehydration. It's even drier than the Sahara Desert and the North Pole. It's fact that temperature and air humidity are key ambient factors that heavily impact human well-being and are vital for maintaining a strong immune system. CTT is the market leader in humidity control products designed for in-cabin use on aircraft. We have dedicated the last 20 years to developing and improving our humidifier. The result is a highly appreciated climate enhancer with top performance and outstanding reliability. The significant increase in humidity is striking, providing increased well-being and wellness during and after flight. In-flight and at arrival productivity among passengers is also increased as a result of a more natural and comfortable environment without dryness induced fatigue. In a humidified premium cabin, both passengers and cabin crew feel more refreshed and less dehydrated, more balanced and at ease. The humidifier onboard increases the humidity levels to selected areas of the aircraft, typically in business class, flight deck and crew areas, from around 5% to 22% relative humidity. The significantly higher humidity levels prevent degeneration of our immune system, inevitable in standard-equipped aircraft with their extreme dry cabin climate. And further, our humidifiers increase passenger and crew well-being and heighten sensory input such as feeling and taste. The CTTHQ premises house both R&D and manufacturing, located in Nyköping, Sweden. This is an area with a long-standing tradition and history in aviation, right in the heartland of Swedish aerospace industry. Our dedicated and experienced staff are proud to be sole OEM suppliers to both Airbus and Boeing, providing humidification systems for line fit on Boeing 787, Boeing 777X, Airbus 380, and Airbus 350XWB. CTT is also the market-leading provider of humidity control systems to large VIP aircraft, where humidification systems are fast becoming a de facto standard and VIP customer requirement. Our humidification systems are also available to boost cabin climate performance in large cabin, long-range business jets. Humidity is key and a vital part of air quality to keep your immune system intact and well-prepared to protect you from colds and virus infections.

At Airbus Corporate Jets, we focus on bringing our passengers the ultimate in comfort, productivity, and rest. An ACJ-220 aircraft fitted with CTT humidification on board elevate the flight experience to the premium level you expect. These humidifiers enhance the well-being on board, including smell and taste, maximize rest, and prevent you from the inconvenience of dry skin and respiratory system. A dehydrated respiratory system suffers increased risk of infectious diseases. The humidification system is in balance with an anti-condensation system, protecting the aircraft from corrosion. When you arrive at your destination in an ACJ aircraft with a CTT humidification onboard system, you will be well rested and ready to take on the world.

Thank you and good morning. Welcome to CTT's quarterly earnings call. I'm Henrik Höyre, CEO, and with me today I have Marcus Berg, our CFO. We will present CTT's financial results for the second quarter and outlook going forward. Next slide. Starting with the highlights in the second quarter, we continue to see momentum in our OEM business with higher volumes. Sales in US dollar increased sequentially 21% driven by aircraft build rate ramp up and higher content value per A350 ship set. We foresee next ramp up in volumes in Q1 27. Aftermarket demand remained resilient despite higher jet fuel prices and flight disruptions. A positive highlight was that spares demand surged with higher order intake and sales late in the quarter. Next slide. Looking at the financial performance in short, comparing the same quarter last year, net sales were in line with our currency adjusted outlook. Net sales decreased 4 million to 76 million. Negative FX impact with 2.5 million. The EBIT margin was 19% versus 23%. Earnings per share decreased to 0.79 versus 1.19 SEC. Operating cash flow improved 24 million versus 3 million. Next slide. Net sales bridge from comparable quarter last year shows growth driven by 12 million in OEM and 3 million growth in retrofit. offset by a 10 million decline in private jet and 8 million lower aftermarket sales. If adding some perspectives onto the numbers. OEM. Growth reflects the ongoing wide-body production ramp-up and remains supported by strong structural demand. While growth is not linear and occur in steps, the underlying trend remains positive and is driven by structural increases in aircraft production. The year-on-year increase is 125%. Private jet sales, temporarily impacted by the absence of deliveries during 2026, activity has been largely dependent on ACJ programs. Given the limited number of VIP projects in the market, however, quarterly sales can be volatile. We have a better setup going forward. The combination of ACJ and Baby J programs supports a higher long-term activity level. The reported decline in aftermarket sales requires some additional context. The year-over-year decline is primarily explained by approximately 9 million of distribution inventory build-up in the comparable quarter last year. Adjusted for this effect, underlying aftermarket sales increased by roughly 1 million. A breakdown of reported sales shows that aftermarket sales accounted for 64%, and 28% Comp System Sales. I now hand over to Marcus for some more detailed financials.