RTX IS PROUD TO DESIGN AND PRODUCE ADVANCED WIRELESS SOLUTIONS FOR A RANGE OF INTERNATIONAL CUSTOMERS FROM ALL AROUND THE WORLD

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1 PRESENTATION Q1 2014/15 ABG Sundal Collier 5 February 2015 Flemming Hynkemejer, CEO Jacob Vittrup, CFO Strømmen 6 DK-9400 Noerresundby info@rtx.dk tel:

2 RTX IS PROUD TO DESIGN AND PRODUCE ADVANCED WIRELESS SOLUTIONS FOR A RANGE OF INTERNATIONAL CUSTOMERS FROM ALL AROUND THE WORLD Customers include amongst others: Agfeo Agilent Technologies Alcatel Lucent Enterprise Audio-Technica Avaya Broadcom Dialog EDF LG-Ericsson Gigaset GN ReSound Intelbras Microsoft Mitel NEC Nintendo Panasonic Philips Plantronics Qualcomm Samsung Sennheiser Shoretel Snom Sonova Toshiba Unify 2

3 RTX OEM & design partner for global customers Solid knowledge and know-how in developing advanced wireless short range radio systems and products wireless wisdom Dedicated and high skilled staff: Working globally from locations in Denmark (HQ), Hong Kong and US The average engineer has more than 12 years seniority Strong and global customer base with well known brands Easy scalable operation setup in South China. 3

4 RTX DIVISIONS AND SEGMENTS 4

5 Income Statement Q1 2014/15 DKK Million Q1 2013/14 Q1 2014/15 Revenue 68,6 76,7 Cost of Sale -30,5-32,0 Gross profit 38,1 44,7 Gross margin 55,6% 58,3% Revenue growth 11,9% E&V + 12,0% Design Services + 11,1% Improved margins Other external expenses -6,4-7,4 Staff cost -20,6-24,8 Value of work transferred to assets - 0,3 Depreciation and amortization -2,3-1,6 EBIT 8,8 11,2 Net financial items -1,2 1,5 Taxes 0,1 - Impact from discontinued operations 0,7 - Profit for the period 8,5 12,7 Capacity cost on par with Q4 2013/14 Increase in EBIT 5

6 Quartly performance Revenue (mio. DKK) Q1 Q2 Q3 Q4 2012/ / /15 EBIT (mio. DKK) Q1 Q2 Q3 Q4 2012/ / /15 Product in assisted living product segment 6

7 REVENUE PER SEGMENT Q1 DKK million Q1 2013/14 Q1 2014/15 Enterprise & VoIP 45,2 50,2 12,0% Design Services 22,7 25,2 11,1% Other 0,7 0,8 28,6% Total 68,6 76,7 11,9% INDUSTRIAL SENSORS RTX offered to develop battery driven sensors that connect to the existing DECT infrastructure. Taking the battery lifetime into consideration we chose a version of the Ultra Low Energy (ULE) technology. The final solution was adopted to the customer s mechanics and delivered in a preliminary batch for testing. After a succesfull field test EDF plans to implement the solution in all 56 nuclear plants. 7

8 RTX DIVISIONS AND SEGMENTS 8

9 DESIGN SERVICES BUSINESS HIGHLIGHTS Q1 2014/15 Revenue amounted to DKK 25,2 million. A growth of 11% compared to last year Growth in the core engineering design. Significant growth in core business (NRE and Royalty) up with more than 20% A significant foodprint in Q1 within audio segment. Continued work for a number of longstanding customers where RTX plays the role as domain expert maintaining and developing the wireless solutions. Expected decline in tester business. Revenue per product group NRE & Royalty ODM PTE/Test Revenue split Q1 2014/15 PTE/Test; 13% ODM; 22% Q1 2013/14 Q1 2014/15 NRE & Royalty; 65% 9

10 RTX DIVISIONS AND SEGMENTS 10

11 ENTERPRISE & VOIP BUSINESS HIGHLIGHTS Q1 2014/15 Revenue was DKK 50.6 million an increase of 12%. Driven by a strong product-and tech portfolio: Enterprise systems grew 27% VoIP systems on par with last year Assisted living depends on one customer but new projects in the pipeline Other wireless increased Focus on customer driven R&D combined with a strong and wellestablished bridge head in Hong Kong for production in China. Revenue per product group Entreprise VoIP Assisted living Revenue split Q1 2014/15 Assisted living; 0% VoIP; 24% Other wireless; 12% Other wireless Q1 2013/14 Q1 2014/15 Enterprise; 58% 11

12 BALANCE SHEET Q1 2014/15 DKK million Assets Q1 2013/14 Q1 2014/15 Total intangible assets 15,9 11,5 Total tangible assets 74,9 75,5 Other longterm assets 19,9 39,3 Inventories 12,4 11,1 Receivables 54,3 64,5 Short-term current asset investments 35,1 34,4 Cash 40,1 75,5 Total assets 252,7 311,8 Liabilities Equity 185,6 238,2 Long term liabilities 14,4 11,1 Short term liabilities 52,7 62,6 Total liabilities 252,7 311,8 Equity ratio 73,4 76,4 RTX has in accordance with the international accounting standards (IFRS) capitalized deferred tax. Increased activity but inventory and receivables are stable. Increased cash on hand. Equity impacted by current share buy back program. Strong equity ratio. 12

13 CASH FLOW Q1 2014/15 DKK million Q1 2013/14 Q1 2014/15 Cashflows : from operations 5,3 5,8 from investments -1,6-0,9 from financing activities -0,3-3,5 Discontinued Opr 0,7 RTX delivered technology for this year s entrepreneurial company elected at CES 2014 Airtameis a small newly established innovative Danish company that has achieved a position and a brand in the market for wireless video via HDMI and screen duplication for professional use. Airtamechose RTX because we also have the insight in the interface between software and hardware, Change in cashand cash equivalents 4,1 1,4 Growth impacted the working capital and thereby also the cash flow from operations Share buy back programme impacted financing activities with DKK 3,2 million 13

14 QUARTERLY INVESTMENTS IN R&D Development and maintenance cost financed by RTX DKKm % 9,0 8,0 7,0 6,0 5,0 4,0 3,0 2,0 1,0 - Q1 2010/11 Q1 2011/12 Q1 2012/13 Q1 2013/14 Q1 2014/15 18,0% 16,0% 14,0% 12,0% 10,0% 8,0% 6,0% 4,0% 2,0% 0,0% Significant R&D activities within the wireless area is carried out with our partners. SOPHISTICATED MOBILE DECT/Wi-Fi HANDSET NEC s new G966 SmartDECT handset combines the latest IP DECT communications with the flexibility of Wi-Fi-based Android application support that enables tight integration with business specific applications. The G966 s Wi-Fi capabilities and Android OS expand on this by providing users with access to their vital business applications, integration with NEC UC platforms Reducing the risk in R&D projects by increased customer commitment and funding in earlier stages of the development projects. 14

15 Shareholder related activivities 2014/15 AGM January 2015 approved : A share repurchase program of DKK 12 million. 15

16 OUTLOOK FY 2014/15 DKK million Result 2013/14 Outlook 2014/15 Target 2015/16 Net revenue Approx. 350 EBIT EBITDA Min 16% 16

17 IMPORTANT NOTICE This presentationcontainsstatements regardingexpectationsfor the future development of RTX A/S, in particular the direction of future product development, future sales, operating profits and business expansion. Suchstatements aresubjectto risksand uncertaintiesas variousfactors, manyof whichareoutsidethe controlof RTX, maycausethe actual development and results to differ materially from the expectations expressed directly or indirectly in this presentation. Factors thatmightaffectsuchexpectationsinclude, amongothers, rapid technologicalchangesand evolvingmarkets, overall economicand business conditions, fluctuations in currencies, demand for RTX s services, competitive factors in the market and uncertainties concerning possible investments. 17

18 Q&A SESSION Contact Flemming Hynkemejer, President& CEO Tel: Strømmen 6 DK-9400 Noerresundby info@rtx.dk tel: