RTX FY 2018/19 PRESENTATION Presentation by CEO Peter Rpke CFO - - PowerPoint PPT Presentation

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COPENHAGEN I 29 NOVEMBER 2019 RTX FY 2018/19 PRESENTATION Presentation by CEO Peter Rpke CFO Morten Axel Petersen DISCLAIMER This presentation contains statements regarding expectations for the future development of RTX A/S, in particular

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SLIDE 1

RTX FY 2018/19 PRESENTATION

COPENHAGEN I 29 NOVEMBER 2019

Presentation by CEO Peter Røpke CFO Morten Axel Petersen

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SLIDE 2

DISCLAIMER

2 I IR Presentation

This presentation contains statements regarding expectations for the future development of RTX A/S, in particular the direction of future product development, future sales, operating profits and business expansion. Such statements are subject to risks and uncertainties as various factors, many of which are outside the control of RTX, may cause the actual development and results to differ materially from the expectations expressed directly or indirectly in this presentation. Factors that might affect such expectations include, among others, rapid technological changes and evolving markets,

  • verall economic and business conditions, fluctuations in currencies, demand for RTX’s services, competitive factors in

the market and uncertainties concerning possible investments.

November 2019

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SLIDE 3

STRENGTH PROFILE

3 I IR Presentation

RTX has a:

  • Sustained focus on shareholder value - CFFO invested in value creation or paid back to the shareholders.
  • Leverage opportunity within the current business setup.
  • Proven ability to develop, innovate and manufacture customized solutions.
  • Market-leading position in wireless solutions.
  • High profitability, that can be maintained with the right product mix.
  • Solid business model with high degree of recurring revenue from loyal customers.
  • Dedicated growth strategy – unleashing wireless wisdom through selected B2B target markets.
  • Track record of profitable growth, consistently sustained for many years.

November 2019

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SLIDE 4

AGENDA

  • 1. RTX Business Model
  • 2. Performance 2018/19
  • 3. RTX Growth Strategy
  • 4. Outlook and Long-Term Ambitions
  • 5. Q&A Session

4

Peter Røp øpke President & CEO Mor

  • rten Axel

l Petersen CFO

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SLIDE 5

5

I IR Presentation

RTX BUSINESS MODEL

November 2019

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SLIDE 6

59 70 77 83 100 14/1 4/15 15/1 5/16 16/1 6/17 17/1 7/18 18/1 8/19

RTX is a global company with +25 years of extensive experience and knowledge in designing and manufacturing advanced wireless short-range radio systems and

  • products. Our heritage has provided us with a unique combination of software

and hardware capabilities which RTX leverages with globally recognized customers, from conceptualization to finished products and modules.

RTX AT A GLANCE: SUSTAINED PROFITABLE GROWTH

6 I IR Presentation November 2019 6 November 2019 6

1993 +1,000 289

Founded in 1993 and headquarter in Denmark Projects completed since 1993 FTEs at 30 September, 2019 Units of products and modules delivered in 2018/19

+6.8m

KEY RTX FACTS

350 396 434 475 560 14/1 4/15 15/1 5/16 16/1 6/17 17/1 7/18 18/1 8/19

5-YEAR REVENUE GROWTH

DKK million

5-YEAR EBITDA GROWTH 5-YEAR EBIT GROWTH

DKK million DKK million

52 66 72 75 87 14/1 4/15 15/1 5/16 16/1 6/17 17/1 7/18 18/1 8/19

CAGR 12.5% CAGR 14.2% CAGR 13.5%

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SLIDE 7

WHAT WE DO

7 I IR Presentation

Enterprise

In the Enterprise segment, RTX designs, develops, and supplies wireless IP telephony solutions used in communication systems for professional use, e.g. in office environments, call centers, retail or storage facilities etc. The wireless IP telephony solutions are supplied on both an ODM and an OEM basis.

B2B Headsets

As an Enterprise adjacency expansion, the RTX ODM/OEM headset offering for call centers, office environment, retail and storage facilities consist of several different models supporting customer demand for high quality and deep integration across the Enterprise space.

ProAudio

With years of experience in ProAudio design, development and manufacturing, RTX has gained the expertise to deliver incredible sound quality in high-density RF environments as well as in challenging radio environments with a high degree

  • f interference. Offering includes both

dedicated RTX modules and custom ODM/OEM products.

Healthcare

In the Healthcare segment, RTX is primarily involved in the development, design and supply of wireless modules and products used for continuous patient monitoring in hospitals. Additionally, RTX is involved in the design of wireless solutions for projects in assisted living such as hearing and accessories.

November 2019

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SLIDE 8

RTX BUSINESS MODEL FOR CONTINUED PROFITABLE GROWTH

8 I IR Presentation November 2019

Core capabilities Deployment in attractive B2B target markets Leverage effect for profitable growth

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SLIDE 9

DEVELOPMENT PHASE RAMP PHASE MAIN PHASE END OF LIFE REPLACEMENT PRODUCT

NRE Revenue ODM/OEM Revenue

YEAR 1 YEAR 2 YEAR 4 YEAR 5 YEAR 6 YEAR 7 YEAR 8

Revenue Engineering Effort

ODM MODEL OPERATED VIA FRAMEWORK AGREEMENTS WITH HIGH “STICKINESS” OF RECURRING REVENUE

9 I IR Presentation November 2019

ILLUSTRATIVE RTX BUSINESS CASE BY PRODUCT LIFE CYCLE – FOR ONE COMBINATION OF PRODUCT AND CUSTOMER

Effort and Revenue Start-up for replacement product Years

YEAR 3

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SLIDE 10

WHO WE WORK FOR

10 I IR Presentation November 2019

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SLIDE 11

11 I IR Presentation

PERFORMANCE 2018/19

November 2019

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SLIDE 12

ENTERPRISE

  • Framework agreement entered into in 17/18 now in ramp-up phase
  • New handset and base station range sold to existing customers
  • New major framework agreement entered into (during Q4 18/19)

ENTERPRISE ADJACENCY, B2B HEADSET

  • Customer launch in December 2018 and thus framework agreement

(from 17/18) in ramp-up phase PROAUDIO

  • Significant growth in recurring revenues from product sales and royalties
  • New framework agreement entered into (during Q4 18/19)

HEALTHCARE

  • Agreement to increase product range with existing large customer as

basis for future growth

SATISFACTORY 2018/19 PERFORMANCE AS SOLID BASIS FOR FURTHER GROWTH

12 I IR Presentation November 2019 12

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SLIDE 13

475 560

17/18 18/19

HIGHLIGHTS 2018/19

13 I IR Presentation November 2019 83 100

17/18 18/19

96 108

17/18 18/19

7 8,4

17/18 18/19

REVENUE EBITDA CASH (CFFO) EPS

+18% +21% +13% +19%

DKK million DKK million DKK million 13 13 13

17.1 DKKM

2.0 DKK per share

DISTRIBUTION TO SHAREHOLDERS

PAID DIVIDENDS 2018/19

27.2 DKKM

with one programme continuing in 2019/20 SHARE BUY-BACK 2018/19

2.5 DKK/SHARE

+25% compared to 2018/19 PROPOSED DIVIDENDS JANUARY 2020

32.8 DKKM

by continuing ongoing programme and through announced new programme CONTINUED SHARE BUY-BACK 2019/20

REVENUE SPLIT

DKK million

BUSINESS COMMUNICATIONS DESIGN SERVICES

356 387 31 174 145 29

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SLIDE 14

GROUP P&L Q4 AND FULL YEAR 2018/19

14

DK DKK mil million Q4 18/19 Q4 17/18 FY 18/19 FY 17/18

Revenue 157.0 153.5 560.3 475.3 Cost of sale

  • 64.2
  • 73.8
  • 243.4
  • 210.5

Gross profit 87.9 79.7 316.9 264.8

Gross margin % 56.0% 51.9% 56.6% 55.7%

Other external cost

  • 14.9
  • 14.2
  • 61.1
  • 51.0

Staff cost

  • 38.6
  • 34.8
  • 172.3
  • 147.0

Value of own work transferred to assets 2.5 1.8 16.8 16.3 EBI EBITDA 36.9 .9 32.5 .5 100.2 .2 83.1 .1 Depreciation and amortization

  • 3.8
  • 2.9
  • 13.5
  • 8.3

Ope perating Profit (EBIT (EBIT) 33 33.1 .1 29 29.6 .6 86 86.7 .7 74 74.9 .9

  • Re

Revenue increased by 18% in 2018/19 to DKK 560 million. Both Business Communications (+19%) and Design Services (+15%) achieved revenue growth. Growth is driven by execution of strategy with a) the two major framework agreements announced during 2017/18 (in Business Communications) and b) increased recurring revenues from product sales (in Design Services) contributing significantly to the growth. FX corrected revenue growth was 12% in 2018/19.

  • All business areas achieved revenue growth in 2018/19: Enterprise (+10%),

Enterprise/B2B Headsets (+1840%), ProAudio (+ 17%) and Healthcare (+ 7%).

  • Q4 revenue growth was 2.3% compared to Q4 2017/18 with strong comparable

(due to postponements of deliveries into Q4 in 2017/18 resulting from component allocation issues). FX corrected revenue growth was – 2.0%.

  • The Gross

ss Margin in 2018/19 increased by 0.9 %-point due to the product mix realized and a higher share of royalty revenue. In Q4, the gross margin increased considerably compared to last year also due to product mix and the absence of supply chain issues affecting deliveries.

  • Capacity cost
  • sts increased as planned with the strategy execution – both for

ramping-up capacity in order to execute the two major framework agreements announced during 2017/18 and for continuing to build the organization and infrastructure necessary for further growth. The average number of FTEs increased to 277 in 2018/19 compared to 246 in 2017/18.

  • Oper

perating per performance in both Q4 and FY 2018/19 improved with both EBI EBITDA and EBI BIT increasing.

I IR Presentation November 2019

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SLIDE 15

GROUP BALANCE SHEET YEAR-END 2018/19

  • Intangible assets increased due to the continued investments in own financed

development projects.

  • Other non-current assets decreased, utilizing the deferred tax asset in the Parent.
  • Inventories increase with increased activity and decreased due to IFRS15

implementation.

  • Receivables decreased slightly at year-end compared to last year due to the timing
  • f sales within Q4 compared to last year.
  • Cash and cash equivalents increased to DKK 227 million due to the cash flow

generated from operations. The distributions to shareholders during 18/19 (dividends and two share buy-back programmes) decreased the cash position.

  • Equity increased compared to last year driven by earnings generated, while

impacted by the distributions to shareholders.

  • Current liabilities decreased slightly at year-end due to the timing of purchases

within Q4 compared to last year.

  • Very solid equity ratio of 75.0%, with dividends and share buy-back affecting

equity ratio.

15

DK DKK mil million 30 Sep p 18/19 30 Sep p 17/18 Change

Assets Total intangible assets 51.4 43.3 +18.8% Total tangible assets 14.8 15.5

  • 4.8%

Other non-current assets 9.6 14.3

  • 33.0%

Inventories 21.8 22.1

  • 1.4%

Receivables 139.0 145.0

  • 4.1%

Cash and cash equivalents 226.7 182.6 +24.2% Tot

  • tal assets

46 463.3 42 422.7 2.7 +9 +9.6% Liab Liabili ilitie ies Equity 347.4 312.0 +11.4% Non-current liabilities 7.4 0.9 +723.1% Current liabilities 108.4 109.8

  • 1.3%

Tot

  • tal equity

quity and nd liab abilit litie ies 46 463.3 42 422.7 2.7 +9 +9.6%

Equity ratio

75.0% 73.8%

I IR Presentation November 2019

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SLIDE 16

GROUP CASH FLOW 2018/19

16

DK DKK mil million FY 18/19 FY 17/18

Cash flow from operations (CFFO) 107.7 95.7 Cash flow from investments(1)

  • 52.4
  • 29.2

Cash flow from financing activities

  • 44.4
  • 36.2

Cha hange in in cas ash 10 10.9 .9 30 30.3 .3

  • Increasing cash flow from operations with earnings increase.
  • Cash flow from investments in 18/19 primarily impacted by acquisition of current

securities in the trading portfolio.

  • Distributions to shareholders (dividends and share buy-back programmes) for

2018/19 above last year causing development in cash flow from financing activities.

  • When disregarding acquisition of current securities in the trading portfolio, cash

generation during 2018/19 has been positive by approx. DKK 40 million. Increased dividend level and a renewed share buy-back programme (upon completion of programme currently ongoing) announced for 2019/20.

(1) Including acquisition of current securities in the trading portfolio – with impact FY 2018/19 of DKK -31.4 million (FY 2017/18: DKK -1.3 million). I IR Presentation November 2019

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SLIDE 17

SUSTAINED EPS GROWTH AND SOLID YIELD FROM DISTRIBUTIONS TO SHAREHOLDERS

17 I IR Presentation November 2019

14/1 4/15 15/1 5/16 16/1 6/17 17/1 7/18 18/1 8/19

EARNINGS PER SHARE

DKK per share

DISTRIBUTION TO SHAREHOLDERS

DKK million

14/1 4/15 15/1 5/16 16/1 6/17 17/1 7/18 18/1 8/19

Distribution to shareholders will continue in 2019/20

  • Proposed dividend for

January 2020 increased 25% to 2.5 DKK/share

  • Finalization of current share

buy-back programme by December 2019

  • Initiation of new 20 mn

programme in January 2020

Share Buy-Back Dividends

5.7 5.6 6.7 7.0 8.4 8.5 11.1 19.6 17.2 27.7 44.9 17.6 53.4 71.0 17.0 19.2 36.2 17.1 27.2 44.3

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SLIDE 18

NEW SHARE BUY-BACK PROGRAMME ANNOUNCED FOR JAN-JUN 2020 UPON COMPLETION OF ONGOING PROGRAM

18

  • Current programme continues as announced until

31 December - up to total DKK 20 million, with DKK 15.7 million bought back under the programme as

  • f 25 November 2019.
  • Newly announced buy-back programme to

commence upon completion of ongoing programme

  • Period: 1 January to 30 June 2020
  • Up to DKK 20 DKK million or up to maximum

200,000 shares

I IR Presentation November 2019

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SLIDE 19

19 I IR Presentation

RTX GROWTH STRATEGY

November 2019

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SLIDE 20

STRENGTHEN POSITION IN HEALTHCARE

  • Increase share-of-wallet

UTILIZE UNIQUE POSITION IN PROAUDIO

  • Leverage unique technology into recurring revenue via ODM/OEM

model

  • Lead the transition to digital wireless in pro audio markets

EXPAND LEADERSHIP AND GROW INTO ADJACENCIES IN EN ENTERPRISE

  • Continue to gain market share and drive market consolidation
  • Drive recurring revenue from long-term customer agreements via

pure play ODM/OEM model

  • Utilize system integration as competitive advantage
  • Leverage Enterprise leadership position and sector expertise to

establish a presence in adjacencies, such as B2B Headsets

RTX GROWTH STRATEGY IN TARGET MARKETS

20 I IR Presentation November 2019

RTX TODAY: REVENUE BY TARGET MARKETS 2018/19 RTX GROWTH STRATEGY UNTIL 2021/22

560 DKKm

TOTAL REVENUE

DESIGN SERVICES BUSINESS COMMUNICATION HEALTHCARE PROAUDIO ENTERPRISE Wireless/IP telephony and headsets

69% 26% 5%

1 3-year revenue CAGR (2016-19).

CAGR1 ~11.0% RTX CAGR1 ~12.5% CAGR1 ~11.0% CAGR1 ~13.0%

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SLIDE 21
  • DECT technology remains attractive in

the enterprise market space

  • Superior performance1 compared to

Wi-Fi/VoWLAN

  • Attractive price compared to cellular
  • Superior security
  • Some upside in DECT; primarily via new

players in USA2

  • Ongoing market consolidation; driven in

part by increased outsourcing

RTX GAINING SHARE AS MARKET LEADER IN STABLE AND CONSOLIDATING MARKET

21

ENTERPRISE: MARKET TRENDS

I IR Presentation November 2019

KEY MARKET TRENDS MARKET SIZE AND GROWTH MARKET CONSOLIDATION

325 25 328 28 357 57 374 74 389 89 397 97 402 02 162 62 147 47 151 51 148 48 143 43 138 38 132 32

201 016 201 017 201 018 201 019F 9F 202 020F 0F 202 021F 1F 202 022F 2F

USD Million Source: Frost & Sullivan and MZA

1 E.g. talk time and handover. 2 USA has traditionally been a Wi-Fi/VoWLAN focused enterprise market 3 Includes both multi-cellular and single-cell handsets 4 DECT revenue CAGR 5 Includes RTX.

3% market growth combined with 1 %-point increase in market share (from 20%), in itself, indicates growth opportunity of ~8% p.a.

TOTAL PROFESSIONAL HANDSET MARKET3

% of Total Multi-Cellular Handset Market

487 475 508 522 532 535 534

MANUFACTURER MARKET SHARES BY VOLUME

2013 2014 2015 2016 2017 2018 80 70 60 50 40 30 20 10 RTX Top-35 Top-55 DECT VoWLAN

CAGR4 ~3.0%

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SLIDE 22

EXPAND LEADERSHIP AND GROW INTO ADJACENCIES

22

ENTERPRISE: RTX GROWTH STRATEGY

I IR Presentation November 2019

Drive recurring revenue from long-term customer agreements via pure play ODM/OEM model Utilize system integration as competitive advantage Leverage enterprise leadership position and sector expertise to establish a presence in adjacencies1

1 E.g. B2B headsets, conference phones and/or beacons.

CONTI TINUE TO O GAIN GAIN MAR MARKET T SH SHAR ARE AN AND DR DRIVE MAR MARKET CONSOLIDATION

Grow with DECT technology while ensuring long-term technology agility

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SLIDE 23

0,6 0,6 0,7 0,7 0,8 0,8 0,6 0,7 0,9 1,0 1,1 1,3

19 21 24 27 31 34

5 10 15 20 25 30 35 0,0 0,5 1,0 1,5 2,0 2,5 3,0

LEVERAGE ENTERPRISE POSITION IN ADJACENCIES EXAMPLE: B2B HEADSETS

23

ENTERPRISE ADJACENCY, B2B HEADSETS: MARKET TRENDS & RTX GROWTH STRATEGY

I IR Presentation November 2019

HIGH-GROWTH MARKET DRIVEN PRIMARILY BY THE DEMAND FOR WIRELESS CONNECTIVITY

GLOBAL PROFESSIONAL HEADSET MARKET

1.2 1.4 1.5 1.7 1.9 2.1

Wireless Revenue in USDbn Units in million

LEVERAGE ENTERPRISE LEADERSHIP POSITION AND SECTOR EXPERTISE TO ESTABLISH PRESENCE IN B2B HEADSETS Utilize system integration as competitive advantage Provide ODM/OEM headset offering as additional revenue opportunity for Enterprise partners

Source: Frost & Sullivan

1 2018-2022 wireless revenue CAGR.

Corded Revenue in USDbn 2017 2019F 2018 2020F 2022F 2021F

CAGR1 ~14.0%

Revenue & Units

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SLIDE 24

PRO AUDIO MARKET TRANSITION CREATES RTX GROWTH OPPORTUNITIES

24

PROAUDIO: MARKET TRENDS

I IR Presentation November 2019

RTX PROAUDIO CONSISTS OF THREE SEGMENTS, WITH MICS & STAGE AS OUR PRIMARY TARGET AREA FOR GROWTH MICS & STAGE IS ATTRACTIVE DUE TO ONGOING TRANSISTION FROM WIRED ANALOG TO DIGITAL WIRELESS 2 MILLION PRO WIRELESS MICS, PLUS NON- MICS UPSIDE, CONSTITUTE SIGNIFICANT RTX GROWTH OPPORTUNITY

Source: Arizton.

1 At the benefit of e.g. mobile phones, internet broadband etc. 2 2017 to 2023 CAGR. 3 Pro audio devices such as power amplifiers, speaker enclosures, and mixers. DJ products such as digital controllers, mixers, and headphones. Instruments such as e.g. guitars.

PRO WIRELESS MICROPHONE MARKET

1.8 1.8 1.9 2.0 2.1 2.2 2.3

Million Units Per Year

Significant additional market potential, beyond micro- phones, in instruments, DJ products, and other pro audio devices, where wireless transmission is relevant3.

2017 2018 2021F 2020F 2019F 2022F 2023F

  • Spectrum repack
  • Microphone frequencies are being reallocated to

video- and broadband services1

  • The regulatory changes are occuring in both US and

Europe

  • Increased need
  • The music industry is becoming increasingly more

dependent on live performances; due to disruptions in music publishing industry

  • Live performances are growing significantly in

complexity and needed channel count/number of microphones

  • New requirements
  • New requirements to robustness, and security

requires a digital transmission technology

PROAUDIO

MICS & STAGE INTERCOM GAMING

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SLIDE 25

Deploy and refine our existing technology base… …into a flexible technology platform with dedicated RTX modules and custom ODM/OEM

UTILIZE UNIQUE POSITION IN PROAUDIO

25

PROAUDIO: RTX GROWTH STRATEGY

I IR Presentation November 2019

We move from engineering hours… …to recurring revenue Short time-to-market Attractive cost of entry

LEAD THE TRANSITION TO DIGITAL WIRELESS IN PRO AUDIO MARKETS LEVERAGE UNIQUE TECHNOLOGY INTO RECURRING REVENUE VIA ODM/OEM MODEL

Attractive value propositions for RTX customers Scalability for RTX

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SLIDE 26

STRENGTHEN POSITION IN HEALTHCARE

26

HEALTHCARE: MARKET TRENDS & RTX GROWTH STRATEGY

I IR Presentation November 2019

Pressure to reduce costs and prove value remains intense3 and drives need for new technology4. Medtech1 sales are estimated at 425 USD billion globally with expected CAGR of 5% towards 20222 Expand share of value chain (e.g. production of subassemblies) Extend portfolio

  • f ODM offerings

EXPAND EXISTING CONTINUOUS PATIENT MONITORING BUSINESS BY INCREASING SHARE-OF-WALLET WITH OURONG-TERM BLUE CHIP HEALTHCARE CUSTOMER HEALTHCARE MARKET DEPENDS ON NEW TECHNOLOGIES, DIGITAL AND WIRELESS, TO INCREASE EFFICIENCY AND KEEP UP WITH DEMAND

Source: Economic Intelligence Unit, OECD, Deloitte

1 E.g. in vitro diagnostics, cardiology, diagnostic imaging etc. 2 Healthcare growth in general, is driven by ageing and growing populations, emerging market expansion, increase in chronic diseases (e.g. cancer, heart disease, and diabetes), and advances in treatments 3 Resulting in focus on efficient use of resources, shift in focus from procedures towards outcomes (also referred to as value-based healthcare), and increasing focus on virtual healthcare – all to help drive cost efficiency 4 E.g. networked medical devices (mobile, wearing external, implantable), remote care system, identification systems etc.

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SLIDE 27

27

OUTLOOK AND LONG-TERM AMBITIONS

I IR Presentation November 2019

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SLIDE 28

DK DKK mill illion Resu esult 20 2016 16/17 Resu esult 20 2017 17/18 Resu esult 20 2018 18/19 Outl utlook 20 2019 19/20

Revenue 433.5 475.3 560.3 620 - 650 EBITDA 77.2 83.1 100.2 105 - 120 EBIT 72.3 74.9 86.7 75 - 90

OUTLOOK 2019/20

28 I IR Presentation November 2019

As described in our annual report in the section concerning risk management, RTX is relatively highly exposed to foreign currencies, as a considerable part of the revenue is settled in US dollars. Given the nature of the expected growth from framework agreements under ramp-up as well as from new framework agreements being started up, it is expected that the revenue and earnings distribution over 2019/20 will be relatively backloaded towards the end of the year – as also described in our annual report.

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SLIDE 29

Further execution of growth strategy expected to lead to profitable growth

LONG-TERM FINANCIAL AMBITIONS

29 I IR Presentation November 2019

Based on our strategy of deploying our wireless wisdom in selected B2B target markets for growth via recurring revnues, and based on execution of existing and new framework agreements, it is the ambition of RTX to grow revenues

  • rganically by an average of 13-16% p.a. in the period from

end 2018/19 up to and including the fiscal year 2021/22.

ORGANIC REVENUE GROWTH EBITDA MARGIN ASSUMPTIONS ORGANIC REVENUE GROWTH EARNINGS (EBITDA MARGIN)

AVERAGE OF 13-16% P.A. UNTIL 2021/22 18-20% BY 2021/22

With our long-term revenue growth ambitions, and with the leverage effect on the scalability of our resources from increased recurring revenues, it is the ambition of RTX to achieve an EBITDA margin of 18-20% by the completion of the fiscal year 2021/22. This ambition reflects inclusion of the effect of the implementation of IFRS 16 regarding leasing. The long-term revenue and earnings ambitions are based on constant currencies with the ambitions especially being sensitive to the USD/DKK exchange

  • rate. They are also based on the current

macroeconomic and political environment, where major developments may also impact the

  • ambitions. The ambitions are also based on stable

raw material prices and supply chain performance and availability. Also, note that the long-term financial ambitions are until/by the fiscal year 2021/22 and in the interim years growth rates and margins realized may vary from year to year.

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SLIDE 30

30 I IR Presentation

Q&A SESSION

November 2019

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SLIDE 31

WHY INVEST

31 I IR Presentation November 2019

RTX has a:

  • Sustained focus on shareholder value - CFFO invested in value creation or paid back to the shareholders.
  • Leverage opportunity within the current business setup.
  • Proven ability to develop, innovate and manufacture customized solutions.
  • Market-leading position in wireless solutions.
  • High profitability, that can be maintained with the right product mix.
  • Solid business model with high degree of recurring revenue from loyal customers.
  • Dedicated growth strategy – unleashing wireless wisdom through selected B2B target markets.
  • Track record of profitable growth, consistently sustained for many years.
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SLIDE 32

Further information, please contact President and CEO Peter Røpke or CFO Morten Axel Petersen at +45 9632 2300

THANK YOU FOR YOUR ATTENTION

32 I IR Presentation November 2019