RTX PRESENTATION FY 2017/18 - PRESENTATION BY CEO PETER RØPKE & CFO KRISTIAN FREDERIKSEN
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COPENHAGEN | 30 NOVEMBER 2018
R T X P R E S E N TAT I O N
FY 2017/18
PRESENTATION BY
CEO PETER RØPKE &
CFO KRISTIAN FREDERIKSEN
WIRELESS WISDOM
WORKS IN ANY
ENVIRONMENT
AGENDA
1. RTX @ A GLANCE
2. FINANCIAL RESULTS Q4 & FY 2017/18
3. BUSINESS UPDATE & FOCUS AREAS
4. SHAREHOLDER INFORMATION
PETER RØPKE KRISTIAN FREDERIKSEN
5. OUTLOOK 2018/19 PRESIDENT & CEO CFO
6. Q&A SESSION
RTX Presentation FY 2017/18 - 30 November 2018 2
RTX @ A GLANCE RTX Presentation FY 2017/18 - 30 November 2018 3
R T X AT A G L A N C E
RTX is a global company with 25 years of extensive At RTX, we develop, innovate and manufacture RTX is well positioned in the market with a great
experience and knowledge in design of advanced wireless customized solutions, which provide effortless wireless mix of customer-financed development projects
short-range radio systems and products. Our heritage has communication for large corporations or people across combined with internally-financed development
provided us with a unique combination of software and the globe. Developing wireless products and solutions projects, where ODM/OEM products or software
hardware capabilities through which RTX manages can be complex. At RTX, we pride ourselves on making are resold to several customers across the globe.
projects for globally recognized customers, from products that are complex on the inside and look simple We provide innovative and customized solutions
conceptualization to finished products and modules. on the outside. to world-leading brands.
1993 Founded in 1993 and
headquarter in Denmark
REVENUE
EUROPE
Projects
REVENUE
NORTH AMERICA DKK 291m
+1,000 completed
DKK73 m
(+21% growth)
(-4% growth)
REVENUE
264 FTE employees by 30
September 2018
ASIA AND PACIFIC
DKK 105m
REVENUE
(+63% growth)
AFRICA
ISO 9001 Globally certified
since 2017 DKK m6
(+26% growth)
RTX Presentation FY 2017/18 - 30 November 2018 4
KEY ACHIEVEMENTS 1993-2018
REVENUE
DKKm 100 Revenue reached
1999 San Diago 2015 EBIT reached
DKK 100m
USA office DKK 50m
Complete 2004 ISO 9001
1998 Hong Kong 2017
Bluetooth IP certified
office
1993 NASDAQ globally
2000 2006
OMX listed
Founded
Microsoft X-box Qualcomm
2004 development 2012 Authorized 2018
partner Design Center
1994 First DECT phone
prototype Home Automation
2003 802.11a reference 2010 2016 RTX reached
and Smart Metering
design (Wi-Fi) 200 FTEs
DECT Ultra Low
2002 ISO 9001 certified 2009 Energy FTEs
in Denmark
200
RTX Presentation FY 2017/18 - 30 November 2018 5
MAIN EVENTS 2017/18
GAMING PLATFORM EXPANDED FOCUS ON INTERCOM EXPANDING INTO MAJOR FRAMEWORK RENEWED HANDSET NEW VOIP SYSTEM
LAUNCHED PROAUDIO (SHEERLINK) CRITICAL COMMUNICATIONS AGREEMENT ON AGREEMENT WITH DELIVERIES TO NEW
HEADSETS SIGNED LONG-TERM PARTNER CUSTOMER
The RTX super low latency and ’The ProAudio business initiated In 2017/18, RTX utilized its strong
robust communication gaming in-depth R&D and market position within Intercom solutions The framework agreement RTX strengthened its The new system delivery
platform was launched. This is research to further leverage on to expand into the market of signed on headsets includes a position in the Enterprise contract includes the full
a very flexible platform e.g. if the super low latency codec Critical Communication. A platform full range of wired and DECT market by renewing range of RTX VoIP products
the radio frequency Sheersound™ invented by RTX particularly suited for first wireless headsets customized and adding new products to on infrastructure and
environment is harsher than last year. The objective is to responders and others requiring to fit specific customer needs. the contract with one of our handsets, Multicell, single
usually experienced a small widen RTX’s offerings for the communication systems with the The customer is expected to long-term partners. The new cell, repeater, full range of
amount of latency can be professional audio market by highest possible robustness and roll-out the headsets through handset agreement includes handsets in the customer’s
treated for increased showcasing a range of more flexibility has been introduced to existing and well-established products for location own ODM design. The new
robustness. Likewise, the standardized products the market. This unique concept sales channels globally. detection, alarming and OEM customer will bring the
platform supports various complementing the range of and platform requires no fixed healthcare applications. branded solutions to one of
combinations of point to point, custom solutions. The product infrastructure and features the world’s most well-
point to multipoint or portfolio is named Sheerlink™ dynamic self-reconfiguration, as established sales channels
multipoint to point and the first products being users enter and leave the coverage globally.
connections to satisfy almost introduced will connect stage area. This ensures that the highest
anybody’s needs. guitars wirelessly to the possible degree of communication
amplifier. can be maintained between groups
handling an emergency.
RTX Presentation FY 2017/18 - 30 November 2018 6
F I N A N C I A L R E S U LT S
Q4 & YTD 2017/18
RTX Presentation FY 2017/18 - 30 November 2018 7
FINANCE RESULTS
GROUP P&L Q4 2017/18
DKK million Q4 2017/18 Q4 2016/17
Revenue 153.5 113.8 • Net revenue increased in Q4 by 34.9% to DKK 153.5 million
corresponding to a revenue growth of DKK 37.7 million compared
Cost of sale -73.8 -49.6
to Q4 of 2016/17
Gross profit 79.7 64.2
Gross margin, % 51.9% 56.4% • The composition of product mix together with year end
Other external cost -14.2 -10.7 components write-down and warranty obligations impacted
Gross Margin negatively
Staff cost -34.8 -29.7
Value of own work transferred to assets 1.8 6.3 • Capacity cost increased in Q4 2017/18, driven by additional FTEs
EBITDA 32.5 30.1 and additional development and administration costs
Depreciation and amortization -2.9 -1.4 • EBIT increased by 3.2% to DKK 29.6 million compared to DKK 28.7
Operating Profit (EBIT) 29.6 28.7 million in the same period last year, mainly due to the increased
revenue
Net financial 0.7 -0.3
Tax -6.2 -2.3
Profit for the period 24.1 26.1
RTX Presentation FY 2017/18 - 30 November 2018 8
K E Y FA C T S 2 0 1 7 / 1 8
REVENUE GROWTH EBIT REVENUE
DKKm 475
434
475 +10% 75 288
350
396
DKKm DKKm
2013/14 2014/15 2015/16 2016/17 2017/18
REVENUE BY SEGMENT
EBITDA
Business Communications Design Services DKKm 77
83
70
59
46
DKK 325 m DKK 150 m
2013/14 2014/15 2015/16 2016/17 2017/18
REVENUE BY BUSINESS AREA
EBIT
DKKm 75
72
66
52
37
ENTERPRISE PROAUDIO HEADSET HEALTHCARE
DKKm DKKm DKKm DKKm
323 123 2 27 2013/14 2014/15 2015/16 2016/17 2017/18
RTX Presentation FY 2017/18 - 30 November 2018 9
FINANCE RESULTS
D E TA I L E D G R O U P P & L F U L L Y E A R 2 0 1 7 / 1 8
DKK million FY 2017/18 FY 2016/17 Absolute Index
deviation
• Net revenue increased by 9.6% to DKK 475.3 million
Revenue 475.3 433.5 41.8 109.6 compared to DKK 433.5 million in 2016/17
Cost of sale -210.5 -195.0 -15.5 107.9
• Business Communications increased by 12.2% to DKK 325.0
Gross profit 264.8 238.5 26.3 111.0 million driven by the VoIP segment
Gross margin, % 55.7% 55.0% 0.7% 101.3
Other external cost -51.0 -47.4 -3.6 107.6 • Design Services increased revenue by 4.4% to DKK 150.3
million, primarily driven by increased customer projects
Staff cost -147.0 -131.3 -15.7 111.9
and module sales
Value of own work transferred to assets 16.4 17.4 -1.1 93.6
EBITDA 83.1 77.2 5.9 108.7 • Gross Margin positively impacted by the composition of
sales and the product mix
Depreciation and amortization -8.3 -4.9 -3.3 167.8
Operating Profit (EBIT) 74.9 72.3 2.6 103.6 • Capacity cost increased in the period, primarily driven by
Net financial 1.4 -1.9 3.3 additional FTEs to support continued growth
Tax -16.3 -12.2 -4.1 133.6
• EBIT amounted to DKK 74.9 million compared to DKK 72.3
Profit for the period 60.0 58.2 1.8 103.1 million in the same period last year
RTX Presentation FY 2017/18 - 30 November 2018 10FINANCE RESULTS
HIGHLIGHTS FROM 2017/18
DKK 475.3m DKK 74.9m 17.5% DKK 60.0 m
Revenue EBIT EBITDA margin Profit for the year
DKK 95.7 m 73.8% DKK 36.2 m DKK 7.0
Cash flow from operations Solvency ratio Cash flow for shareholder activities Earnings per share (EPS) (DKK per share)
REVENUE BY SEGMENT GROSS PROFIT CASH FLOW FROM OPERATIONS
DKK million DKK million DKK million
500 25% 500 59% 100
400 20% 400 58%
80
57%
300 15% 300 60
56%
200 10% 200
55% 40
100 5% 100 54%
20
0 0% 0 53%
2013/14 2014/15 2015/16 2016/17 2017/18 2013/14 2014/15 2015/16 2016/17 2017/18 0
2013/14 2014/15 2015/16 2016/17 2017/18
BC DS Other Growth Cost of sales Gross profit Gross margin
RTX Presentation FY 2017/18 - 30 November 2018 11FINANCE RESULTS
GROUP HIGHLIGHTS FROM 2017/18
DKK million Indicator 2017/18 2016/17 2015/16 2014/15 2013/14
Revenue 475.3 433.5 395.6 349.5 288.3
EBITDA 83.1 77.2 70.0 59.0 45.6
EBITDA, % 17.5% 17.8% 17.7% 16.9% 15.8%
EBIT 74.9 72.3 65.8 52.3 37.0
Profit after tax 60.0 58.2 49.5 48.9 55.5
Cash flow from operations 95.7 46.7 53.4 53.2 53.8
EPS (DKK per share) 7.0 6.7 5.6 5.7 6.5
Average Number of Full-Time-Employees 246 227 193 171 155
RTX Presentation FY 2017/18 - 30 November 2018 12FINANCE RESULTS
GROUP BALANCE SHEET
DKK million FY 2017/18 FY 2016/17 • Intangible assets increased primarily due to the rise in
Assets investments in own financed development projects within
Handset, Headsets and various modules.
Total intangible assets 43,3 26.9
Total tangible assets 15.5 12.3 • Tangible assets increased due to investments in tooling and IT
Other long-term assets 14.3 28.9 infrastructure.
Inventories 22.1 24.1
• Other long-term assets decreased driven by the utilization of
Receivables 145.0 109.5 deferred tax asset.
Cash and cash equivalents 182.6 151.3
Total assets 422.7 353.0 • Receivables increased as a consequence of the higher revenue
and timing hereof.
Liabilities
Equity 312.0 283.0 • Short-term liabilities increased driven by a high year-end activity
Long-term liabilities 0.9 0.2 level as compared to last year, reflected as increased develop-
ment in Payables.
Short-term liabilities 109.8 69.8
Total liabilities 110.7 70.0
Equity ratio 73.8 80.2 RTX Presentation FY 2017/18 - 30 November 2018 13FINANCE RESULTS
G R O U P C A S H F LO W
DKK million FY 2017/18 FY 2016/17 • Cash flow increased by DKK 91.7 million compared to FY 2016/17.
Cash flow from operations 95.7 46.7
• The increase in cash flow from operations is caused by a high year-
Cash flow from investments -29.2 -37.0 end activity level increasing receivables and payables accordingly.
Cash flow from financing activities -36.2 -71.0
Change in cash 30.3 -61.4 • Cash-flow from investments decreased slightly driven by a
different approach for managing excess liquidity, reflecting a
higher cash position as compared to last year.
• The positive development in cash flow from financing activities is
caused by the repurchase program not being prolonged, as
management currently explores non-organic growth
opportunities.
RTX Presentation FY 2017/18 - 30 November 2018 14B U S I N E S S U P D AT E
& FOCUS AREAS
RTX Presentation FY 2017/18 - 30 November 2018 15BUSINESS MODEL
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.
RTX Presentation FY 2017/18 - 30 November 2018 16S T R AT E G Y
EXPAND LEADERSHIP IN ENTERPRISE
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.
ESTABLISH A PRESENCE IN HEADSETS
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.
SECURE 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.
STRENGTHEN POSITION WITHIN HEALTHCARE
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.
RTX Presentation FY 2017/18 - 30 November 2018 17BUSINESS AREAS
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 manufacturing,
in communication systems for professional use,
RTX has gained the expertise to deliver
e.g. in office environments, call centers, retail or
incredible sound quality in high-density RF
storage facilities etc. The wireless IP telephony
environments as well as in challenging radio
solutions are supplied on both an ODM and an
environments having high inter-symbol
OEM / white label basis.
interference.
Healthcare
In the Healthcare segment, RTX is
involved in the development, design
Headsets and supply of wireless modules and
The RTX headset range for call centers products used for continuous patient
& offices consists of several different monitoring in hospitals as well as the
models from high-end to low-end, design of wireless solutions for
supporting customer demand for high projects in assisted living such as
quality and deep integration. hearing aid accessories.
RTX Presentation FY 2017/18 - 30 November 2018 18O U T LO O K 2 0 1 8 / 1 9
RTX Presentation FY 2017/18 - 30 November 2018 19BUSINESS & FINANCE UPDATE
O U T LO O K F Y 2 0 1 8 / 1 9
DKK million Result Result Result Result Outlook
2014/15 2015/16 2016/17 2017/18 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.
RTX Presentation FY 2017/18 - 30 November 2018 20Q&A SESSION
RTX Presentation FY 2017/18 - 30 November 2018 21I M P O R TA N T N OT I C E
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 FY 2017/18 - 30 November 2018 22T 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 91230000
CFO Kristian Frederiksen at 91230050
RTX Presentation FY 2017/18 - 30 November 2018 23FINANCIAL HIGHLIGHTS FOR THE GROUP
DKK million 2017/18 2016/17 2015/16 2014/15 2013/14 DKK million 2017/18 2016/17 2015/16 2014/15 2013/14
INCOME STATEMENT ITEMS KEY RATIOS
Revenue 475.3 433.5 395.6 349.5 288.3 Growth in net turnover (%) 9.7 9.6 13.2 21.2 19.4
Gross Profit 264.8 238.5 229.4 196.2 164.0 Profit margin (%) 15.7 16.7 16.6 15.0 12.8
EBITDA 83.1 77.2 70.0 59.0 45.6 Return on invested capital2 continuing operations (%) 69.5 92.1 81.5 53.4 41.9
EBITDA (%) 17.5% 17.8% 17.7% 16.9% 15.8% Return on equity continuing operations (%) 20.2 20.7 18.1 19.8 27.5
Operating profit/loss (EBIT) 74.9 72.3 65.8 52.3 37.0 Equity ratio 73.8 80.2 78.9 77.5 74.6
Net financials 1.4 -1.9 2.7 0.7 -1.0 EMPLOYMENT
Profit/loss before tax 76.3 70.4 68.5 53.0 35.9 Average number of full-time employees 246 227 193 171 155
Profit/loss for the year 60.0 58.2 49.5 48.9 55.5 Revene per employee (DKK ‘000) 1,932 1,910 2,050 2,044 1,860
BALANCE SHEET ITEMS Operating profit per employee (DKK ‘000) 304 318 341 306 239
Cash and current asset investments 182.6 151.3 202.5 136.9 108.8 SHARES (NUMBER OF SHARES IN THOUSANDS)
Total assets 422.7 353.0 355.4 343.1 305.2 Average number of shares in distribution 8,556 8,735 8,809 8,621 8,587
Equity 312.0 283.0 280.6 265.9 227.6 Average number of diluted shares 8,691 8,916 9,014 9,084 9,159
Liabilities 110.7 70.0 74.9 77.2 77.6 SHARE DATA, DKK PER SHARE AT DKK 5
OTHER KEY FIGURES Profit/loos for the year (EPS), per share 7.0 6.7 5.6 5.7 6.5
Development cost financed by RTX before capitalization 34.3 36.9 25.9 22.7 19.6 Profit/loss for the year, diluted (DEPS), per share 6.9 6.5 5.5 5.4 6.1
Capitalized development cost 16.3 17.4 1.0 2.7 - Dividends, per share 2.0 2.0 2.0 2.0 1.0
Depreciation, amortization and impairment 8.3 4.9 4.2 6.7 8.6 Equity value, per share 36.4 32.9 31.6 30.7 26.6
Cash flow from operations 1 95.7 46.7 53.4 53.2 53.8 Listed price, per share 179.6 180.0 113.0 87.0 49.4
Cash flow from investments -29.2 -37.0 24.4 -46.5 -4.7 Note: The Group’s financial year runs from 1 October to 30 September. The accounting principles describe the calculations of
the financial highlights.
Investment in property, plant and equipment 8.4 8.9 5.8 3.1 4.7 1 2013/14 and 2014/15 exchange rate adjustments was presented as cash flow from operations. From 2015/16
Increase/decrease in cash and cash equivalents 30.3 -61.4 27.9 -11.0 38.1 and onwards exchange rate adjustments is presented as a separate line under cash and cash equivalents.
2 Key ratios regarding previous periods were corrected.
RTX Presentation FY 2017/18 - 30 November 2018 24AT R T X , W E A R E P R O U D
TO B E C E L E B R AT I N G O U R
25TH ANNIVERSARY IN
2018
RTX Presentation FY 2017/18 - 30 November 2018 25APPENDIX
RTX Presentation FY 2017/18 - 30 November 2018 26SHAREHOLDER
I N F O R M AT I O N
RTX Presentation FY 2017/18 - 30 November 2018 27S H A R E H O L D E R I N F O R M AT I O N
• As of 30 September 2018, RTX’s share capital had a nominal value of DKK 44,714,190 comprising 8,942,838 shares each with a nominal value of DKK 5.
• RTX held 374,849 treasury shares corresponding to 4% of the issued shares at 28 September 2018, reflecting the cancellation of 200,000 treasury shares of DKK 5 as per the
company announcement 06/2018, dated 27 February 2018.
• The Board of Directors is authorized for the period up to 24 January 2023 continuously to allow the company to acquire Treasury Shares of a total nominal value of DKK 4.4
million, equivalent to approximately 10% of the share capital at the time of the authorization (25 January 2018).
PRICE DEVELOPMENT AND MONTHLY TURNOVER OF RTX A/S RTX SHARE DEVELOPMENT FROM 1 OCTOBER 2017 TO 30
SHARES FROM 1 OCTOBER 2017 TO 30 SEPTEMBER 2018 SEPTEMBER 2018
DKK million DKK DKK
80 250 240
70
200
60 190
50
150
40 140
30 100
20 90
10 50
0 40
0 okt nov dec jan feb mar apr maj jun jul aug sep
okt nov dec jan feb mar apr maj jun jul aug sep
Turnover of shares (left) RTX A/S closing prices (right) RTX A/S Nasdaq Copenhagen Small Cap (Rebased) Nasdaq Copenhagen 25 (Rebased)
RTX Presentation FY 2017/18 - 30 November 2018 28BUSINESS COMMUNICATIONS
ENTERPRISE
In the Enterprise segment RTX develops and supplies professional wireless IP telephony for PBX systems
that are used in communication systems for professional use. Ever since the first groundbreaking digital
wireless systems, RTX has supplied many unique products that combine radio frequency performance at
a very high level with high quality audio reproduction with an intuitive interface.
• In 2017/18, we focused on executing on already signed framework agreements within VoIP handsets and base
stations, which is expected to have a positive effect in the coming financial years. Additionally, our self-financed
investments in a handset program has resulted in a contract with a major new international customer.
• Enterprise has a competitive product portfolio and a multi-cell and a single-cell based VoIP system with several
product variants for SME businesses.
• Focus on continued development of new product platforms in close co-operation with existing and new customers
we believe that we will be able to gain market shares, and further consolidate our market leading position as supplier
of multi-cellular handsets.
• The market is broad and comprises verticals like healthcare, industry, mining, the service sector and retailing, which
demand customer and vertical specific robust solutions. The trend is expected to be towards further customer and
vertical specific solutions, conditions that Business Communications are targeting as an ODM supplier.
RTX Presentation FY 2017/18 - 30 November 2018 29DESIGN SERVICES
PROAUDIO
The ProAudio segment covers three business areas: Microphones & Stage equipment, Intercom Systems
and Gaming solutions.
• In 2017/18 RTX has focused on developing a modularized platform – SheerlinkTM – utilizing RTX’s super low latency
codec SheersoundTM. This approach, enables shorter time-to- market and a lower entry barrier for our partners, and
is a supplement to our full custom solutions.
• In 2017/18 RTX utilized its strong position within Intercom solutions to expand into the market of Critical
Communication; first responders, aviation, military etc.
• In the gaming and esports market RTX provides a wireless transmission solution, which circumvents the typical
wireless challenges in gaming (e.g. latency / delayed audio, poor microphone audio, inadequate use-time on the
battery etc.)
RTX Presentation FY 2017/18 - 30 November 2018 30BUSINESS COMMUNICATIONS
HEADSET
Given its already strong position as an equipment supplier to the Enterprise segment, RTX took a
strategic decision to leverage this position and expand the offering with a complete headset range.
• RTX headset business made headway on multiple fronts in 2017/18; most importantly, the first business headset
orders were shipped.
• The adjacency expansion into business headsets is expected to both deepen share-of-wallet with existing customers
and attract new customers. Based on the strong interest to date, we believe that the business headset segment will
become a growth engine for RTX in the coming years.
• The current portfolio constitutes a complete product range with both wireless and wired headsets for the
professional office use. The range covers all use cases from entry-level to high-end; enabling our partners to satisfy
any end-user need.
• By adding headsets to the existing RTX portfolio, we are enabling deep integration into our partners’ Enterprise
communication solutions – a fact appreciated by both our partners and their end-users.
RTX Presentation FY 2017/18 - 30 November 2018 31DESIGN SERVICES
H E A LT H C A R E
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.
• In 2017/18, RTX was primarily focused on executing as planned on our contracts with a large international supplier of
continuous patient monitoring systems. The new contract, from mid-2017, has broadened RTX’s delivery from sub-
components to complete box-built wireless solutions, thus further broadening our share of the value chain.
• RTX works with partners from multiple healthcare sub-sectors. Given the already mentioned long development
processes and lifecycles in healthcare, individual project engagements are often multi-year ventures.
• RTX typically provides design and development support to our healthcare partners. However, with our global partner
in continuous patient monitoring systems, RTX provides actual sub-components of the wireless solution, hence
holding a larger part of the value chain.
RTX Presentation FY 2017/18 - 30 November 2018 32I N N O VAT I O N
Innovation at RTX takes place in several dimensions across our business units. Our innovation activities are a core part of
our strategy and we systematically search for, recognize, select and incubate ideas to turn them into business
opportunities for our customers and ourselves.
BUSINESS INNOVATION TECHNOLOGY INNOVATION
To further exploit our proprietary technologies, we will In parallel with our business activities, we also work
be developing the Sheerlink™ concept in-house, systematically on new technologies, such as antenna
combining our state-of-the-art low-latency wireless designs, algorithms, wireless protocols and machine
technology with our Sharesound™ audio algorithms onto learning. We often conduct this work together with
the RTX1090 wireless module. The RTX1090 module is a partners or universities, putting our research into
novel approach for manufacturers of wireless audio real-life, practical implementations. Currently, we
equipment and music instruments to integrate wireless have five ongoing university programs across our
technology into their new and existing products in an main technology investment areas; audio algorithms,
easy and predictable way. The Sheerlink™ technology wireless protocols and indoor positioning. Projects are
overcomes many of the shortcomings of existing wireless selected based on their novelty, business potential
technology (such as Bluetooth) traditionally used for and RTX’s ability to protect our investment.
audio, gives superior performance and accelerates time-
to-market for new and existing audio brands.
RTX Presentation FY 2017/18 - 30 November 2018 33T H A N K YO U F O R
LISTENING
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