INVESTOR PRESENTATIONCTT SYSTEMS AB

ABG - SEPTEMBER 4, 2019

TORBJÖRN JOHANSSON, CEO

We solve the humidity paradox in aircraft

Too dry in the cabin– cabin air is far more dehydrating environment than any place on Earth.

Too wet in the aircraft fuselage– moisture and water accumulation from condensate water

Too dry

Too wet

We provide products for humidity control

❑ Restored humidity to ground-like level in the cabin for your wellbeing❑ Lowering excess weight cutting fuel / CO2 footprint for our climate

Humidifiers

De-Humidifiers

4

CTT at a glance

37 %60 %

62 %

❑ Founded in 1991❑ HQ in Nyköping,

Sweden❑ Production in Nybro,

Sweden❑ 110 employees, ~70

in Nyköping❑ Listed on Small Cap

Nasdaq Stockholm❑ Market Cap approx.

2bn SEK

34%

66%

Aftermarket First Sales

Market position and customers

50+ AIRLINES

Humidifiers De-Humidifiers

❑ Sole OEM supplier - Strong market position

❑ Diversified customer base❑ Flight Deck emerging as de

facto standard on long-haul aircraft. Migrating to cabin. VIP leader.

❑ Underlying trends supportive❑ No leverage without

catalogue status on OEM platforms

50+ 787

3 ACTIVE ALL-NARROW BODY

Strong underlying market- Fleet forecasted to double in 20 years❑ Commercial aviation resilient long-term growth❑ Growing middle-class in emerging markets❑ Globalization and urbanization

Further tensions in geopolitics and trade could affect outlook negatively if escalating

THE HUMIDIFIER BUSINESS

Inflight Humidification IFH maintains air humidity at ground-like levels (22 % RH)Elevates cabin climate and cabin performance to better match earthlike conditions - during the entire flight

Rel

ativ

e H

um

idit

y, %

Basic Configuration without Active Humidification

First Class Business Class Economy

5% 7%12%

5

15

25

Fitted with the optional IFH, Inflight Humidification

22% 22% 16%

Humidifier Onboard closes the wellbeing gap

❑ Flight Deck – Established product – High penetration on multiple platforms❑ Crew Rest – Momentum on 787 and A350❑ Passenger Cabin – First customers on A350 / Boeing 777X

Focus on wellbeing and sensory experience drives demand

Point-to-point expansion drives demandShortens travel time but extends range / flight time – drives demand for better climate / humidity

Boeing delivered the 787th Dreamliner during 2018

Since its first delivery in September, 2011, the 787 family has flown nearly 300 million passengers on more than 1.5 million flights around the world, including more than 210 new nonstop routes.

CTT has on average 2.2 humidifiers on all Dreamliners – 85 % flight deck selection rate

787 leads the way - High CTT shipset content

85 %FLIGHT DECK SELECTION

Airlines mirror 787-selection on new platforms

Air China first A350 delivered in August 2018 mirroring its 787 fleet: Humidifiers in flight deck and both crew rests.

China Eastern first A350 in November 2018 787-equipped with humidifiers in flight deck and both crew rests.

Commonality demand: Airlines select humidifiers in flight deck and crew rest on A350 and 777X

7%

7%

7%

7%

6%

6%

5%4%3%3%

45%

United Airlines

American Airlines

Japan Airlines

Hainan Airlines

Air Canada

Norwegian Air ShuttleASAANA

British Airways

Air India

China Southern Airlines

2018-12-31

Diversified and global humidifier customer base❑ More than 50 airline customers❑ 10 Largest Airlines account for 55 %❑ 40+ Airlines account for remaining 45 %

❑ Strong position in China with all major airlines as customers and repeat business (mirroring selection to other platforms)

❑ Product content available on more aircraft platforms❑ More options available - Higher average aircraft shipset value❑ Retrofit demand when harmonizing the experience (OEM drives refurbish

upgrades on existing fleet)

Growth drivers – OEM expansion & retrofit

2019

787

A350

777X

All major CTT OEM awards are in early phase 787

A350

777X

Optional humidifiers per shipset

Retrofit opportunities from harmonize demand

OEM

Harmonize demand

2014 2015 2016 2017 2018

❑ Aftermarket is driven by humidifier population❑ Record-High Humidifier deliveries in 2018❑ Population at airlines growing 33 % 2014-2018

Installed base drives the aftermarket

25 %OEM Deliveries Humidifier Units

THE DE-HUMIDIFIER BUSINESS

DehumidifierCheckmates Fuselage Condensation

❑ Niche market❑ Strong foothold in Northern Europe / Russia❑ BFE on Boeing 737-800❑ Standard equip on Boeing 787 – De-selected from 2020

The Zonal Drying™ system can cut 200 -300 kg of excess weight in Boeing 737-800/A320 aircraft; generating the following advantages: ❑ Lowers fuel burn with 0.4%-0.6% (fuel savings of 25,000-38,000

liters per year);❑ Cuts CO2 emissions with some 65-95 tons per aircraft per year❑ Higher operational reliability from significantly lowered moisture

related faults in electrical equipment (reduced Out-Of-Service time and repair costs);

❑ Lower rate of insulation blanket replacement

FUSELAGE CONDENSATIONIN ALL AIRCRAFT

ON EVERY FLIGHT

HOW TO CUT 200+ KG?

ADD25 KG!

EVERY KG COUNTS

CO2

NOX

❑ High-density cabin layouts gain traction❑ Longer flights (more flight hours)❑ Sustainability pressure - Stakeholders

requiring airlines to take more measures in order to reduce CO2 / NOX.

SUPPORTING TRENDS

Targeting A320neo and Boeing 737MAX

❑ A321-trial systems❑ Boeing 737MAX STC❑ A320-family airlines to retrofit❑ Boeing 737-800 customers to place MAX orders❑ Excel in strong markets such as northern Europe /

Russia

❑ Zonal Drying™ market is limited until catalogue status at MAX / neo

❑ Retrofit drives OEM❑ Key to win airline retrofit awards from

large MAX / neo customers

Success Factors Strategy

FINANCIALS / OUTLOOK

Q3 ForecastNet Sales forecasted to be 80 - 85 MSEK (81), same level as previous year

80 - 85

Q319E

Outlook Net Income (4Q ROLLING)12-month rolling revenues (currency adjusted) at current levels or slightly lower for upcoming 4 – 6 quarters

200

220

240

260

280

300

320

340

360

380

Q218 Q318 Q418 Q119 Q219

NET INCOME (ROLLING 4Q)

MSEK

Reasons for flattening curve:• Strong comparing Quarter-On-Quarter

(QOQ) – Q3 and Q4

• The ZD de-select on 787: The revenue willdrop approx. 15 %. Not possible to imminent compensate.

Excess weight leads to more fuel burn and unnecessary green gas emissions plus electrical failures, repair and mold problems.

Stakeholders require airlines to take all measures to reduce fuel burn / CO2 footprint

First Class Business Class Economy

5% 7%

12%

5

15

25

3%

Flight Deck

29

First in Business Class

Emerging to business class – More optional sales / higher shipset value

Q&A