WIRELESS WISDOM INTO SOLUTIONS - Presentation by CEO Peter Røpke Copenhagen | 15 March 2019 - RTX
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Copenhagen | 15 March 2019
TRANSFORMING
WIRELESS WISDOM
I N TO S O LU T I O N S
Presentation by
CEO Peter Røpke
DISCLAIMER
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.
Presentation Danske Bank Micro event - 15 March 2019 2
STRENGTH PROFILE
RTX has a:
• Market-leading position in wireless solutions.
• Proven ability to develop, innovate and manufacture customized solutions.
• Dedicated growth strategy - focus on 4 business areas: Enterprise, Headset, ProAudio and Healthcare.
• Solid business model with high degree of recurring revenue from loyal customers.
• High profitability, that can be maintained with the right product mix.
• Leverage opportunity within the current business setup.
• Sustained focus on shareholder value - CFFO invested in value creation or paid back to the shareholders.
Presentation Danske Bank Micro event - 15 March 2019 3
AGENDA
1. RTX @ a glance
2. Focused strategy
3. Q1 results according to plan
4. Outlook 2018/19 maintained
5. Q&A session
Peter Røpke
President & CEO
Presentation Danske Bank Micro event - 15 March 2019 4
RTX @ A GLANCE RTX Presentation FY 2017/18 - 30 November 2018 5
RTX @ A GLANCE
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.
1993 Founded in 1993 and
headquarter in Denmark +1,000 Projects
completed 264 FTE employees by 30
September 2018 ISO 9001 Globally certified
since 2017
REVENUE & GROWTH EBITDA & EBITDA-MARGIN EBIT & EBIT-MARGIN
DKKm % DKKm % DKKm %
500 25 100 20 100 20
400 20 80 19 80 15
300 15 60 18 60
10
200 10 40 17 40
100 5 20 16 20 5
0 0 0 15 0 0
2013/14 2014/15 2015/16 2016/17 2017/18 2013/14 2014/15 2015/16 2016/17 2017/18 2013/14 2014/15 2015/16 2016/17 2017/18
Revenue Growth % EBITDA EBITDA % EBIT EBIT-margin
Presentation Danske Bank Micro event - 15 March 2019 6
K E Y FA C T S 2 0 1 7 / 1 8
REVENUE EBITDA EBIT EBITDA-MARGIN EQUITY RATIO
DKK 475m DKK 83m DKK 75m 17% 74%
(+10% growth) (+8% growth) (+4% growth)
REVENUE BY GEOGRAPHY
REVENUE BY BUSINESS AREA REVENUE
EUROPE
REVENUE
NORTH AMERICA
DKK 291 m
(-4% growth)
DKK 73 m
REVENUE
(+21% growth) ASIA AND PACIFIC
ENTERPRISE HEADSETS PROAUDIO HEALTHCARE
DKK 323m DKK 2m DKK 123m DKK 27m DKK 105 m
REVENUE (+63% growth)
AFRICA
BUSINESS COMMUNICATIONS DESIGN SERVICES DKK m6
(+26% growth)
DKK 325m DKK 150m
(+12% growth) (+4% growth)
Presentation Danske Bank Micro event - 15 March 2019 7
W H AT W E D O
Enterprise ProAudio
In the Enterprise segment, RTX designs, develops, With years of experience in ProAudio
and supplies wireless IP telephony solutions used design, development and
in communication systems for professional use, manufacturing, RTX has gained the
e.g. in office environments, call centers, retail or expertise to deliver incredible sound
storage facilities etc. The wireless IP telephony quality in high-density RF
solutions are supplied on both an ODM and an environments as well as in challenging
OEM / white label basis. radio environments having high inter-
symbol interference.
Healthcare
In the Healthcare segment, RTX is involved
Headsets in the development, design and supply of
The RTX headset range for call centers wireless modules and products used for
& offices consists of several different continuous patient monitoring in hospitals
models from high-end to low-end, as well as the design of wireless solutions
supporting customer demand for high for projects in assisted living such as hearing
quality and deep integration. aid accessories.
Presentation Danske Bank Micro event - 15 March 2019 8
HOW WE WORK
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.
SPECIFICATION AND DEVELOPMENT AND TESTING AND PRODUCTION AND SUPPLY
DESIGN INTEGRATION CERTIFICATION CHAIN MANAGEMENT
At RTX, we start by converting Following agile development Based on years of experience, Using a well-established
customers’ requirements and user practices, we develop prototypes our in-house pretest services network of ISO9001, SO14001,
needs into a Product Requirement to evaluate system performance in- reduce your time to market and ISO13485, TS16949 and AS9100
Specification. Our engineering teams house. We integrate each design at lower approval and certification certified manufacturers,
then design a solution that is based on system level so that every costs. If required, we can also we guarantee a production
the right combination of mechanics, component and sub-system works handle the full type approval through the entire product life-
hardware and software. Combined with perfectly, evaluating performance service for our customers. cycle.
our list of patented solutions and in- against test cases for the fully
house developed protocols, we promise integrated system.
our customer a compelling result.
Presentation Danske Bank Micro event - 15 March 2019 9
WHO WE WORK FOR
Presentation Danske Bank Micro event - 15 March 2019 10F O C U S E D S T R AT E G Y
RTX Presentation FY 2017/18 - 30 November 2018 11F O C U S E D S T R AT E G Y
Expand leadership in Enterprise
Establish a presence in Headsets
Secure unique position in Proaudio
Strengthen position within Healthcare
Presentation Danske Bank Micro event - 15 March 2019 12E X PA N D L E A D E R S H I P I N E N T E R P R I S E
“ In Enterprise Communications, we will supply
wireless product solutions to large enterprises
and SMEs in the Telco market. RTX already has a
strong position and by retaining our focus on
developing new product platforms, we are
confident that we will be able to continue to win
market share and further consolidate our
market-leading position as a supplier of
enterprise handsets.
Presentation Danske Bank Micro event - 15 March 2019 13E S TA B L I S H A P R E S E N C E I N H E A D S E T S
“Business Headsets is an adjacency
expansion, leveraging on our strong position
within the Enterprise segment. By adding
headsets to the existing RTX portfolio, we
are enabling deep integration into our
partner’s Enterprise Communication
solutions. Additionally, we expect to attract
new customers with RTX’s highly efficient
ODM model. All in all, we believe that the
business headset segment will become a
growth engine for RTX in the coming years.
Presentation Danske Bank Micro event - 15 March 2019 14SECURE UNIQUE POSITION IN PROAUDIO
“We have developed wireless solutions for the
Professional Audio segment for many years. Our
key focus is on solutions for microphones &
stage equipment, intercom systems and gaming.
Over the coming years, we expect to develop our
position further, both via our traditional design
service offerings of full custom solutions and via
more modularized platforms, which enable
shorter time-to-market and lower entry barriers
for our partners.
Presentation Danske Bank Micro event - 15 March 2019 15STRENGTHEN POSITION WITHIN
H E A LT H C A R E
“In Healthcare, we are involved in the
development, design and supply of different
wireless modules and products used primarily
for continuous patient monitoring. We expect to
rely on this cornerstone to continue to deliver
steady growth in our healthcare niche business;
working with both existing and new partners.
Presentation Danske Bank Micro event - 15 March 2019 16Q 1 R E S U LT S
A C C O R D I N G TO P L A N
RTX Presentation FY 2017/18 - 30 November 2018 17Q 1 R E S U LT S A C C O R D I N G TO P L A N
Enterprise: Mass production of handset started for major
framework agreement signed in Q3 2017/18.
Headset: Good momentum in headset production and
sales with major customer launch in December 2018.
ProAudio: Good progress in e-sport offerings. Corsair made a public
launch of their first product based on our gaming platform.
Healthcare: Initiated projects develop as expected.
Presentation Danske Bank Micro event - 15 March 2019 18
RTX Presentation FY 2017/18 - 30 November 2018 18GROUP HIGHLIGHTS FROM Q1 2018/19
REVENUE EBITDA EBIT EBITDA-MARGIN EQUITY RATIO
DKK 116m DKK 11m DKK 8m 9% 78%
REVENUE EBITDA EBIT
DKKm DKKm DKKm
120 20 20
100 15
15
80
60 10 10
40 5
5
20
0 0 0
Q1 Q1 Q1 Q1 Q1 Q1 Q1 Q1 Q1 Q1 Q1 Q1 Q1 Q1 Q1
2014/15 2015/16 2016/17 2017/18 2018/19 2014/15 2015/16 2016/17 2017/18 2018/19 2014/15 2015/16 2016/17 2017/18 2018/19
Presentation Danske Bank Micro event - 15 March 2019 19O U T LO O K 2 0 1 8 / 1 9
M A I N TA I N E D
RTX Presentation FY 2017/18 - 30 November 2018 20O U T LO O K 2 0 1 8 / 1 9 M A I N TA I N E D
DKK million Result 2014/15 Result 2015/16 Result 2016/17 Result 2017/18 Outlook 2018/19
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
• As described 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.
Presentation Danske Bank Micro event - 15 March 2019 21WHY INVEST
RTX has a:
• Market-leading position in wireless solutions.
• Proven ability to develop, innovate and manufacture customized solutions.
• Dedicated growth strategy - focus on 4 business areas: Enterprise, Headset, ProAudio and Healthcare.
• Solid business model with high degree of recurring revenue from loyal customers.
• High profitability, that can be maintained with the right product mix.
• Leverage opportunity within the current business setup.
• Sustained focus on shareholder value - CFFO invested in value creation or paid back to the shareholders.
Presentation Danske Bank Micro event - 15 March 2019 22Q&A SESSION Presentation Danske Bank Micro event - 15 March 2019 23
NEW CFO AS OF APRIL 1, 2019
Morten Axel Petersen
Morten Axel Petersen has been appointed CFO at RTX
A/S from April 1, 2019. Morten has a master degree in
Strategy and Management from Aarhus School of
Business, and he comes from a position as Group Chief
Finance & Strategy Officer at Bladt Industries A/S.
Presentation Danske Bank Micro event - 15 March 2019 24T H A N K YO U F O R YO U R AT T E N T I O N
Further information, please contact
President and CEO Peter Røpke at +45 9632 2300
Presentation Danske Bank Micro event - 15 March 2019 25You can also read
