RTX PRESENTATION Q2 2018/19 PRESENTATION BY CEO PETER RPKE & - - PowerPoint PPT Presentation

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RTX PRESENTATION Q2 2018/19 PRESENTATION BY CEO PETER RPKE & - - PowerPoint PPT Presentation

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COPENHAGEN | 3 MAY 2019 RTX PRESENTATION Q2 2018/19 PRESENTATION BY CEO PETER RPKE & CFO MORTEN AXEL PETERSEN WIRELESS WISDOM WORKS IN ANY ENVIRONMENT DISCLAIMER This presentation contains statements regarding expectations for the

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SLIDE 1

WIRELESS WISDOM WORKS IN ANY ENVIRONMENT

RTX PRESENTATION Q2 2018/19

COPENHAGEN | 3 MAY 2019

PRESENTATION BY CEO PETER RØPKE & CFO MORTEN AXEL PETERSEN

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SLIDE 2

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, overall economic and business conditions, fluctuations in currencies, demand for RTX’s services, competitive factors in the market and uncertainties concerning possible investments.

RTX Presentation Q2 18/19 - 3 May 2019

2

DISCLAIMER

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SLIDE 3

AGENDA

1. 1. RTX @ A A GLA LANCE 11:45 :45 – 12:00 :00 2. FINANCIAL RESULTS Q2 AND H1 2018/19 12:00 – 12:15 3. BUSINESS UPDATE Q2 2018/19 12:15 – 12:30 4. OUTLOOK 2018/19 12:30 – 12:35 5. Q&A SESSION 12:35 – 12:45

RTX Presentation Q2 18/19 - 3 May 2019

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SLIDE 4

RTX Presentation Q2 18/19 - 3 May 2019

4

STRENGTH PROFILE

RTX has has a: a:

  • Sus

Sustained foc

  • cus on
  • n sha

shareholder valu lue - CFFO invested in value creation or paid back to the shareholders.

  • Le

Leverage opp

  • pportunity within the current business setup.
  • Proven abil

ability to develop, innovate and manufacture customized solutions.

  • Mark

arket-leading pos positio ion in wireless solutions.

  • Hig

High pr profitabilit ity, that can be maintained with the right product mix.

  • Soli

Solid bu business ss mod

  • del with high degree of recurring revenue from loyal customers.
  • Ded

Dedicated gr growth strategy - focus on 4 business areas: Enterprise, Headset, ProAudio and Healthcare.

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SLIDE 5

RTX is a global company with 25 years of extensive experience and knowledge in design of advanced wireless short-range radio systems and products. Our heritage has provided us with a unique combination of software and hardware capabilities through which RTX manages projects for globally recognized customers, from conceptualization to finished products and modules.

5

RTX @ A GLANCE

100 200 300 400 500 201 013/1 3/14 201 014/1 4/15 201 015/1 5/16 201 016/1 6/17 201 017/1 7/18 5 10 15 20 25 Revenue Growth %

REVENUE & & GRO ROWTH

5 DKKm %

20 40 60 80 100 201 013/1 3/14 201 014/1 4/15 201 015/1 5/16 201 016/1 6/17 201 017/1 7/18 5 10 15 20 EBITDA EBITDA %

EB EBITDA & & EB EBITDA-MARGIN

DKKm %

5 10 15 20 201 013/1 3/14 201 014/1 4/15 201 015/1 5/16 201 016/1 6/17 201 017/1 7/18 20 40 60 80 100 EBIT EBIT-margin

EB EBIT & & EB EBIT-MARGIN

DKKm

1993 +1,000 264

ISO 9001

Founded in 1993 and headquarter in Denmark Projects completed FTE employees by 30 September 2018 Globally certified according to ISO 9001:2015

%

RTX Presentation Q2 18/19 - 3 May 2019

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SLIDE 6

6

WHAT WE DO

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 / white label basis.

Headsets

The RTX headset range for call centers & offices consists of several different models from high-end to low-end, supporting customer demand for high quality and deep integration.

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 having high inter- symbol interference.

Healthcare

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

RTX Presentation Q2 18/19 - 3 May 2019

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SLIDE 7

HOW WE WORK: MOVING FROM DESIGN TO PRODUCTS

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.

7

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

At RTX, we start by converting customers’ requirements and user needs into a Product Requirement

  • Specification. Our engineering teams

then design a solution that is based on the right combination of mechanics, hardware and software. Combined with

  • ur list of patented solutions and in-

house developed protocols, we promise

  • ur customer a compelling result.

Following agile development practices, we develop prototypes to evaluate system performance in-

  • house. We 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 your time to market and lower approval and certification

  • costs. If required, we can also

handle the full type approval service for our customers. Using a well-established network of ISO9001, SO14001, ISO13485, TS16949 and AS9100 certified manufacturers, we guarantee a production through the entire product life- cycle. RTX Presentation Q2 18/19 - 3 May 2019

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SLIDE 8

Expand leadership in Enter erpris ise

8

FOCUSED STRATEGY

Strengthen position within He Healt lthcare Establish a presence in He Headsets Secure unique position in Proaudio

RTX Presentation Q2 18/19 - 3 May 2019

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SLIDE 9

RTX Presentation Q2 18/19 - 3 May 2019

9

WHO WE WORK FOR

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SLIDE 10

AGENDA

1. RTX @ A GLANCE 11:45 – 12:00 2. 2. FI FINANCIAL RE RESU SULTS Q2 Q2 AN AND H1 1 20 2018 18/19 19 12 12:00 :00 – 12 12:15 :15 3. BUSINESS UPDATE Q2 2018/19 12:15 – 12:30 4. OUTLOOK 2018/19 12:30 – 12:35 5. Q&A SESSION 12:35 – 12:45

RTX Presentation Q2 18/19 - 3 May 2019

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SLIDE 11

11

GROUP HIGHLIGHTS FROM Q2 2018/19

REVENUE

11 DKKm

EB EBITDA

DKKm

Q2 Q2 201 014/1 4/15 Q2 Q2 201 015/1 5/16 Q2 Q2 201 016/1 6/17 Q2 Q2 201 017/1 7/18 Q2 Q2 201 018/1 8/19 5 10 15 20 25

EB EBIT

DKKm

DKK 138m

REVENUE

DKK 23m

EBITDA EBIT

77%

EQUITY RATIO

17%

EBITDA-MARGIN

DKK 20m

Q2 Q2 201 014/1 4/15 Q2 Q2 201 015/1 5/16 Q2 Q2 201 016/1 6/17 Q2 Q2 201 017/1 7/18 Q2 Q2 201 018/1 8/19 20 40 60 80 100 120 140 Q2 Q2 201 014/1 4/15 Q2 Q2 201 015/1 5/16 Q2 Q2 201 016/1 6/17 Q2 Q2 201 017/1 7/18 Q2 Q2 201 018/1 8/19 5 10 15 20 25 RTX Presentation Q2 18/19 - 3 May 2019

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SLIDE 12

GROUP P&L Q2 AND H1 2018/19

12

DK DKK mil million Q2 2018/19 Q2 2017/18 H1 H1 2018/19 H1 H1 2017/18

Revenue 137.9 106.8 254.4 207.7 Cost of sale

  • 59.6
  • 41.9
  • 109.3
  • 85.9

Gross profit 78.3 64.8 145.1 121.8

Gross margin. % 56.8% 60.7% 57.0% 58.6%

Other external cost

  • 15.1
  • 11.9
  • 31.8
  • 23.0

Staff cost

  • 45.3
  • 37.8
  • 88.7
  • 73.6

Value of own work transferred to assets 5.1 6.3 9.1 9.7 EBI EBITDA 23.1 .1 21.4 .4 33.7 .7 34.9 .9 Depreciation and amortization

  • 3.4
  • 1.8
  • 6.3
  • 3.2

Ope perating Profit (EBIT (EBIT) 19 19.6 .6 19 19.6 .6 27 27.4 .4 31 31.7 .7

  • Net

t revenue increased by 29.2% in Q2 to DKK 137.9 million. Both Business Communications (+33.4%) and Design Services (+21.5%) achieved revenue

  • growth. In Business Communications both the handset related product ranges

and the new strategic focus area within the headset product ranges grew. Within Design Services growth was seen from both ODM product sales as a strategic focus area and from continued high activity for customer financed

  • projects. H1 growth was 22.5 % from last year (Business Communications

+25.6% and Design Services +16.8%).

  • The revenue growth in Q2 and H1 was positively affected by the USD exchange

rate with FX corrected revenue growth of 21.1% and of 16.9% respectively as well as by the implementation of IFRS15.

  • The

he Gross s Margin in H1 was 1.6 %-points below last year due to changes in the product mix.

  • Capacity cost
  • sts increased as planned 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. Thus, the average number of FTEs increased to 270 in H1 2018/19

compared to 239 in H1 2017/18.

  • Oper

perating per performance in Q2 improved with EBI BITDA increasing by 7.8% while EBI EBIT was at a similar level as the same period last year. In H1, EBITDA decreased by 3.6% and EBIT by 13.7% due to the effect of the planned capacity cost ramp- up and higher depreciation and amortization.

RTX Presentation Q2 18/19 - 3 May 2019

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SLIDE 13

GROUP BALANCE SHEET

  • Intangible assets increased primarily due to the continued investments in
  • wn financed development projects
  • Other long term assets decreased, utilizing the deferred tax assets.
  • Inventories decreased due to IFRS15 implementation.
  • Receivables increased as a consequence of the higher revenue, timing of

sales and IFRS15 implementation.

  • Cash and cash equivalents increased by DKK 32.3 million compared to last

year due to the cash flow generated from operations. Further, the shareholder initiatives (dividends and share buy-back programme) affects the cash position.

  • Equity increased by DKK 41.7 million compared to last year with the profits

generated, however, affected by the shareholder initiatives.

  • Short term liabilities increased as a result of higher activity level.
  • Still a very solid equity ratio of 76.9%.

13

DK DKK mil million 31 Ma Mar 2018/19 31 Ma Mar 2017/18 Change

Asset ssets

Total intangible assets 49.1 35.9 +37.0% Total tangible assets 14.4 13.8 +4.6% Other longterm assets 11.5 23.8

  • 51.9%

Inventories 15.4 24.2

  • 36.6%

Receivables 144.0 98.8 +45.7% Cash and cash equivalents 171.1 138.8 +23.3% Tot

  • tal assets

40 405.5 5.5 33 335.3 5.3 +2 +20.9 0.9%

Li Liab abilities es

Equity 311.9 269.2 +15.8% Long term liabilities 0.9 0.3 +250.8% Short term liabilities 92.7 65.8 +40.8% Tot

  • tal equity

quity and nd liab abilit litie ies 40 405.5 5.5 33 335.3 5.3 +2 +20.9 0.9%

Equity ratio 76.9% 80.3%

RTX Presentation Q2 18/19 - 3 May 2019

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SLIDE 14

GROUP CASH FLOW

14

DK DKK mil million H1 H1 2018/19 H1 H1 2017/18

Cash flow from operations (CFFO) 28.0 38.1 Cash flow from investments(1)

  • 43.4
  • 14.2

Cash flow from financing activities

  • 28.0
  • 36.2

Cha hange in in cas ash

  • 43

43.5 .5

  • 12

12.2 .2

  • Continued cash generation from operations - reduced level of cash flow from
  • perations is primarily a result of lower operating profit (EBIT) compared to last

year and higher working capital from increased activity level.

  • Cash flow from investments primarily impacted by acquisition of current

securities in the trading portfolio, while the underlying investment level in tangible and intangible assets is similar to last year.

  • Change in cash flow from financing compared to last year relates to different

timing of shareholder related activities (share buy-back programme) with one completed in January 2018 while the current one was initiated in January 2019 and is continuing after Q2. In total cash flow from shareholder related initiatives (dividends and share buy-back programme) impacts cash flow by DKK -28.0 million in H1 2018/19.

(1) Including acquisition of current securities in the trading portfolio – with impact H1 2018/19 of DKK -32.2 million (H1 2017/18: DKK -0.5 million).

RTX Presentation Q2 18/19 - 3 May 2019

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SLIDE 15

AGENDA

1. RTX @ A GLANCE 11:45 – 12:00 2. FINANCIAL RESULTS Q2 AND H1 2018/19 12:00 – 12:15 3. 3. BUS BUSINESS UPDATE Q2 Q2 2018/19 12:15 :15 – 12:30 :30 4. OUTLOOK 2018/19 12:30 – 12:35 5. Q&A SESSION 12:35 – 12:45

RTX Presentation Q2 18/19 - 3 May 2019

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SLIDE 16

BUSINESS UPDATE

RTX Presentation Q2 18/19 - 3 May 2019

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  • Q2 and H1 results according to plan - full year guidance maintained.
  • Executing on growth strategy
  • Increased momentum in headset sales.
  • Continued growth in ProAudio ODM product sales.
  • Sales of handsets started for major framework agreement signed in Q3 17/18.
  • Building the organization and infrastructure necessary for further growth.
  • Management team completed with new Head of Supply Chain and new CFO.

RTX Presentation Q2 18/19 - 3 May 2019

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SLIDE 17

ANNOUNCED SHARE BUY-BACK PROGRAMME CONTINUES

17

  • RTX will buy back shares for an amount up to DKK

20 million from 25 January 2019 to 30 June 2019.

  • As of 25 April RTX has bought back shares for an

amount of DKK 14.7 million under the programme (cf. company announcement 22/2019), which continues as announced.

RTX Presentation Q2 18/19 - 3 May 2019

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SLIDE 18

AGENDA

1. RTX @ A GLANCE 11:45 – 12:00 2. FINANCIAL RESULTS Q2 AND H1 2018/19 12:00 – 12:15 3. BUSINESS UPDATE Q2 2018/19 12:15 – 12:30 4. 4. OUTLOOK 20 2018 18/19 19 12 12:30 :30 – 12 12:35 :35 5. Q&A SESSION 12:35 – 12:45

RTX Presentation Q2 18/19 - 3 May 2019

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SLIDE 19
  • 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.

  • With the above major risk element in mind Executive Management expects a revenue in the range of DKK 520-550 million, EBITDA in

the range of DKK 85-100 million and EBIT in the range of DKK 65-80 million for the financial year 2018/19.

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OUTLOOK 2018/19 MAINTAINED

DK DKK mill illion Resu esult 20 2014 14/15 Resu esult 20 2015 15/16 Resu esult 20 2016 16/17 Resu esult 20 2017 17/18 Outl utlook 20 2018 18/19

Net Revenue 349.5 395.6 433.5 475.3 520-550 EBITDA 59.0 70.0 77.2 83.1 85-100 EBIT 52.3 65.8 72.3 74.9 65-80

RTX Presentation Q2 18/19 - 3 May 2019

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SLIDE 20

AGENDA

1. RTX @ A GLANCE 11:45 – 12:00 2. FINANCIAL RESULTS Q2 AND H1 2018/19 12:00 – 12:15 3. BUSINESS UPDATE Q2 2018/19 12:15 – 12:30 4. OUTLOOK 2018/19 12:30 – 12:35 5. 5. Q&A Q&A SE SESS SSION 12 12:35 :35 – 12 12:45 :45

RTX Presentation Q2 18/19 - 3 May 2019

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SLIDE 21

RTX Presentation Q2 18/19 - 3 May 2019

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Q&A SESSION

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SLIDE 22

RTX Presentation Q2 18/19 - 3 May 2019

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THANK YOU FOR YOUR ATTENTION

Further information please contact CEO Peter Røpke at 91230000