RTX PRESENTATION Presentation by CEO Peter Rpke DISCLAIMER This - - PowerPoint PPT Presentation

RTX PRESENTATION

COPENHAGEN I 25 JUNE 2020

Presentation by CEO Peter Røpke

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.

June 2020

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

3 I IR Presentation 3 June 2020 3

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%

RTX BUSINESS MODEL FOR CONTINUED PROFITABLE GROWTH

4 I IR Presentation June 2020

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

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

5 I IR Presentation June 2020

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

CURRENTLY EIGHT FRAMEWORK AGREEMENTS IN VARIOUS LIFE CYCLE STAGES

6 I IR Presentation June 2020

“Older” / “legacy” framework agreements Framework agreements announced during 2017/18 Framework agreements announced Q4 2018/19 DEVELOPMENT PHASE

• 7. ProAudio
• 8. Enterprise

PROLONGATION/RENEWAL MAIN PHASE RAMP PHASE

• 5. Enterprise (headset)
• 6. Enterprise
• 1. Enterprise
• 2. Enterprise
• 3. Enterprise
• 4. Healthcare

Reasonably stable customer forecasts from established customers; some, but lower, quarter-on-quarter fluctuations in product sales Customer forecasts not yet stable in ramp phase; quarter-

• n-quarter fluctuations in

product sales No product sales in development phase (some NRE revenue)

Note: The life cycle stage will vary for individual products for the same customer, the above is therefore an approximation for the “average” life cycle stage for each framework agreement

WHO WE WORK FOR

7 I IR Presentation June 2020

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

8 I IR Presentation June 2020

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%

Further execution of growth strategy expected to lead to profitable growth from 2018/19 to 2021/22

LONG-TERM FINANCIAL AMBITIONS

9 I IR Presentation June 2020

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 a relatively stable

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.

10 I IR Presentation

Q&A SESSION

June 2020

APPENDIX

11 I IR Presentation

• 1. RTX Introduction and Investment Case
• 2. RTX Growth Strategy
• 3. Recent Financial Highlights

June 2020

12

I IR Presentation

RTX INTRODUCTION AND INVESTMENT CASE

June 2020

WHY INVEST

13 I IR Presentation June 2020

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.

WHAT WE DO

14 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.

June 2020

Taking a customer-centric approach, understanding market trends and acting as a professional partner is an integral part of how we do business at RTX. We believe that we provide a true value proposition and best results when collaborating closely with our customers – either through projects or in ODM or OEM solutions.

HOW WE WORK: FROM DESIGN TO PRODUCTS AND PRODUCTION

15 I IR Presentation June 2020

SPECIFICATION AND DESIGN DEVELOPMENT AND INTEGRATION TESTING AND CERTIFICATION PRODUCTION AND SUPPLY CHAIN MANAGEMENT

At RTX, we start by truly understanding customer requirements and user needs. This is accomplished by focusing on the ‘why’ and not only the ‘what’. We combine this insight with our wireless know-how into a Product Requirement

• Specification. Our engineering teams

then design the optimal solution based

• n a combination of software, hardware

and mechanics. Combined with our list

• f patented solutions and in-house

developed protocols, we ensure our customers a compelling result. In close collaboration with our customers, following agile development practices, we develop prototypes to evaluate system performance in-house. We build on

• ur extensive wireless and audio

capabilities and integrate each design at system level so that every component and sub-system works perfectly, evaluating performance against test cases for the fully integrated system. Based on years of experience,

• ur in-house pretest services

reduce time to market and decrease approval and certification costs for our

• customers. If required, we can

also handle the full type approval service for our customers. Using a well-established network

• f ISO9001, ISO14001, ISO13485,

TS16949 and AS9100 certified manufacturers, we guarantee production through the entire product life-cycle.

16 I IR Presentation

RTX GROWTH STRATEGY

June 2020

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

17 I IR Presentation June 2020

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%

• 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

18

ENTERPRISE: MARKET TRENDS

I IR Presentation June 2020

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%

EXPAND LEADERSHIP AND GROW INTO ADJACENCIES

19

ENTERPRISE: RTX GROWTH STRATEGY

I IR Presentation June 2020

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

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

20

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

I IR Presentation June 2020

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

PRO AUDIO MARKET TRANSITION CREATES RTX GROWTH OPPORTUNITIES

21

PROAUDIO: MARKET TRENDS

I IR Presentation June 2020

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

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

22

PROAUDIO: RTX GROWTH STRATEGY

I IR Presentation June 2020

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

STRENGTHEN POSITION IN HEALTHCARE

23

HEALTHCARE: MARKET TRENDS & RTX GROWTH STRATEGY

I IR Presentation June 2020

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 OUR LONG-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.

24 I IR Presentation

RECENT FINANCIAL HIGHLIGHTS

June 2020

SUSTAINED EPS GROWTH AND SOLID YIELD FROM DISTRIBUTIONS TO SHAREHOLDERS

25 I IR Presentation June 2020

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 19/2 9/20

Distribution to shareholders increased over 2019/20

• Dividend paid in January

2020 – increased 25% to 2.5 DKK/share

• Share-buy back

programmes ongoing in 2019/20, suspended on 13 Mar 2020 as a precautionary measure. DKK 40.6 million acquired under programmes by time of suspension

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 21.0 40.6 61.5

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

26 I IR Presentation November 2019 26 I 26

FY Y 18 18/19

I IR Presentation June 2020

475 560

17/18 18/19

HIGHLIGHTS 2018/19

27 I IR Presentation June 2020 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 27 27 27

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

72.8 DKKM

through programme completed Dec 2019 and additional programme from Jan 2020 CONTINUED SHARE BUY-BACK 2019/20

REVENUE SPLIT

DKK million

BUSINESS COMMUNICATIONS DESIGN SERVICES

356 387 31 174 145 29 FY Y 18 18/19

• Q2 revenue and earnings below plan. Primarily due to postponed revenues into

Q3 in Business Communications as a result of COVID-19 related shutdown in China in continuation of Chinese New Year impacting quarterly capacity at Chinese suppliers (providers of Electronic Manufacturing Services) and thereby postponing deliveries into RTX Q3.

• Further, lower revenues from engineering services (NRE) due to prolonged

finalization of certain engineering projects and as engineering resources shift towards increasing recurring revenue through product sales in line with strategy. Increased revenues from royalties and product sales in Design Services covering the ProAudio and Healthcare segments.

• To ensure employee safety during COVID-19 pandemic, majority of RTX

employees work from home but focus remain on ensuring full progress on development work related to the new and renewed large framework agreements.

• Careful cost management and suspension of share buy-back program as

precautionary measures.

BUSINESS UPDATE Q2 2019/20

28 I IR Presentation November 2019 28 28

Q2 2 19 19/20

I IR Presentation June 2020

RTX WELL-POSITIONED TO MANEUVER THROUGH COVID-19 PANDEMIC

29 I IR Presentation June 2020

• Working from home where possible (DK in March to May) and using face masks at office (HK)
• Enhanced safety precautions for staff working at RTX

Employee Health & Safety

• Chinese supply chain impacted in February and March, postponing deliveries and revenues into Q3
• All RTX production sites (outsourced) fully operational from late March onwards

Supply Chain

• Mixed impact with increased demand with Healthcare (patient monitoring in intensive care) and headsets (working at home) positively

impacting coming quarters. Within ProAudio negative impact from reduced life events

• Refer to subsequent slide on customer/demand impact

Customer Demand & End-Markets

• RTX maintains full progress on “high-impact” development activities especially for the large framework agreements – remote teams,

coupled with test and prototype work at RTX. Resources shifted internally to maintain focus while avoiding additional recruiting

Development Activities

• Strong balance sheet and net cash position. Share buy-back program suspended on 13 March as a precautionary measure
• Careful cost management and lower cost increase than planned

Financial Preparedness

Q2 2 19 19/20

GLOBAL COVID-19 PANDEMIC AFFECTING RTX CUSTOMER DEMAND AND BUSINESS IN VARIOUS WAYS

30

Historic impact (Q2 19/20):

• Delayed opening of suppliers of manufacturing

services in China postponing significant part of March deliveries into Q3 19/20

• Thus also postponing revenues into Q3 19/20 –

however, solely intra-year postponement

Near-term impact

• Increased demand for critical patient monitoring

(Healthcare) and headsets for working from home

• Reduced demand for ProAudio linked to large

scale events

Mid- to longer term impact

• Uncertainty remains as to impact on global economic growth

and as to shape of recovery

• Critical patient monitoring and headsets still expected to benefit
• structurally. Also Enterprise products for hospitals
• Products related to retail (Enterprise) and large scale events

(ProAudio) may be disadvantaged structurally

• Underlying RTX growth from additional added framework

agreements will counteract negative effects to an extent Q2 2 19 19/20

I IR Presentation June 2020

31

GROUP FINANCIAL HIGHLIGHTS Q2 2019/20

REVENUE

31 DKKm

EB EBITDA

DKKm

Q2 2 15 15/1 /16 Q2 2 16 16/1 /17 Q2 2 17 17/1 /18 Q2 2 18 18/1 /19 Q2 2 19 19/2 /20 5 10 15 20 25

EB EBIT

DKKm

DKK 113m

REVENUE

DKK 11m

EBITDA EBIT

70%

EQUITY RATIO

10.0%

EBITDA-MARGIN

DKK 6m

Q2 2 15 15/1 /16 Q2 2 16 16/1 /17 Q2 2 17 17/1 /18 Q2 2 18 18/1 /19 Q2 2 19 19/2 /20 20 40 60 80 100 120 140 Q2 2 15 15/1 /16 Q2 2 16 16/1 /17 Q2 2 17 17/1 /18 Q2 2 18 18/1 /19 Q2 2 19 19/2 /20 5 10 15 20 25

DKK 24m

CFFO

DKK 241m

REVENUE

DKK 33m

EBITDA EBIT

DKK 62m

DIVIDEND & BUY-BACKS

13.6%

EBITDA-MARGIN

DKK 22m DKK 30m

CFFO

Q2 Q2 H1 H1

Q2 2 19 19/20

I IR Presentation June 2020

GROUP P&L Q2 & H1 2019/20

32

• Re

Revenue decreased by 18.3% compared to last year reaching DKK 112.7 million. Mainly driven by postponed revenues into Q3 in Business Communications as a result

• f COVID-19 related shutdown in China impacting quarterly capacity at Chinese

suppliers thus postponing deliveries into RTX Q3. Solid underlying H1 growth in Business Communications.

• Secondarily revenue impacted by decrease in revenues from engineering services

(NRE) in Design Services due to prolonged finalization of certain engineering projects and as engineering resources shift towards increasing recurring revenue through product sales. Increased revenues from royalties and product sales in the ProAudio and Healthcare segments.

• FX corrected revenue growth of –20.2% due to positive impact, of limited magnitude,

from the USD exchange rate.

• The

he Gro ross Ma Margin in Q2 increased by 2.0 %-points over last year due to changes in the revenue mix.

• The average number of FTEs has increased from 272 in Q2 last year to 292 this year in

line with the strategy - for ramping-up capacity in order to execute the new framework agreements announced over the last couple of years. Sta taff Cos

• st thus

increased by 6.5.%. However, during the quarter costs have been managed carefully in response to COVID-19 including fewer new employees than planned and internal reorganization of engineering resources. Other r capaci city (exte ternal) cos

• sts decreased

compared to last year due to implementation of IFRS 16 (capitalization of leasing).

• Due to the lower revenue, EB

EBITDA decreased by 51% in Q2. For H1, EBITDA is 2.8% lower than last year. Similarly, EBI EBIT decreased from DKK 27.4 million H1 of last year to DKK 22.0 million H1 current year. DKK million Q2 19/20 Q2 18/19 H1 19/20 H1 18/19

Revenue 112.7 137.9 241.0 254.4 Cost of sale

• 46.5
• 59.6
• 99.2
• 109.3

Gross profit 66.3 78.3 141.8 145.1

Gross margin % 58.8% 56.8% 58.8% 57.0%

Other external cost

• 12.7
• 15.1
• 27.1
• 31.8

Staff cost

• 48.3
• 45.3
• 94.9
• 88.7

Value of own work transferred to assets 6.0 5.1 12.9 9.1 EBITDA 11.3 23.1 32.7 33.7 Depreciation and amortization

• 5.6
• 3.4
• 10.7
• 6.3

Operating Profit (EBIT) 5.7 19.6 22.0 27.4

Q2 2 19 19/20

I IR Presentation June 2020

GROUP BALANCE SHEET

• Inta

ntangible assets ts increased due to the continued investments in own financed development projects.

• Tangible assets have increased with the implementation of IFRS 16

(capitalization of leasing) – adding approx. DKK 38 million to assets.

• Oth

ther non non-cu curr rrent assets decreased compared to last year as the deferred tax asset in the parent has now been fully utilized.

• Re

Rece ceivables decreased with lower sales in the latter part of Q2 compared to last year.

• Cash and

nd cash equ quivalents ts increased compared to last year due to cash flow from operations generated during the period and decreased with distributions to shareholders (dividends and share buy-backs).

• Equ

Equity positively impacted by the profits of the past year and negatively by dividend payment and the various share buy-back programs in 2019 and 2020.

• Non
• n-cu

current liabilities increased due to implementation of IFRS 16 (adding calculated leasing debt of approx. DKK 35 million)

• Cur

urrent liabiliti ties decreased with lower trade payables and increased due to implementation of IFRS 16 (adding calculated leasing debt of approx. DKK 6 million)

• A solid equ

quity ra rati tio despite dividend payments and share buy-backs and effects of implementation of IFRS 16 with increasing debt.

33

DKK million 31 Mar 19/20 31 Mar 18/19

Assets Total intangible assets 58.3 49.1 Total tangible assets 54.4 14.4 Other non-current assets 9.6 11.5 Inventories 17.5 15.4 Receivables 118.2 144.0 Cash and cash equivalents 172.3 171.1 Total assets 430.2 405.5 Liabilities Equity 299.8 311.9 Non-current liabilities 45.4 0.9 Current liabilities 85.1 92.7 Total equity and liabilities 430.2 405.5

Equity ratio

69.7% 76.9% Q2 2 19 19/20

I IR Presentation June 2020

GROUP CASH FLOW H1 2019/20

34

DKK million H1 19/20 H1 18/19

Cash flow from operations (CFFO) 30.1 28.0 Cash flow from investments(1)

• 17.7
• 43.4

Cash flow from financing activities

• 64.3
• 28.0

Change in cash

• 51.9
• 43.5
• Continued cas

ash h generation fr from op

• perations, aided by working

capital fluctuations (lower receivables due to lower sales during latter part of quarter). Increased tax payments during H1 compared to last year.

• Cas

ash flo flows s fr from in investments primarily investments into capitalized development activities (intangibles) plus into some tangible assets.

• Cas

ash flo flow fr from fina financing acti activities s primarily impacted by higher dividend payment and higher share buy-back program in H1 2019/20 compared to last year with total payment of DKK 61.5 million (last year: DKK 28.0 million). Share buy-back program suspended on 13 March 2020 as a precautionary

• measure. Additional impact from IFRS 16 re-classifying part of

lease payments as repayment of calculated lease liabilities.

(1) Including acquisition of current securities in the trading portfolio – with impact H1 2019/20 of DKK -1.0 million (H1 2018/19: DKK -32.2 million).

Q2 2 19 19/20

I IR Presentation June 2020

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 MAINTAINED

A S S U M I N G N O M A J O R S U P P LY D I S R U P T I O N S A N D L I M I T E D F U R T H E R D E M A N D I M PA C T F R O M C O V I D - 1 9

35 I IR Presentation June 2020

Given the unprecedented nature of the COVID-19 situation an uncertainty as to a potential future impact from COVID-19 on RTX’s financial year 2019/20 must be

• acknowledged. The outlook for the financial year assumes that RTX can maintain production and logistics flows at current and forecasted levels without major

supply disruptions and that additional near-term impact from COVID-19 on customer demand is limited. As described in the 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 distribution over 2019/20 will be relatively backloaded towards the end of the year – as also described in the annual report.

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

THANK YOU FOR YOUR ATTENTION

36 I IR Presentation June 2020