COPENHAGEN | 30 AUGUST 2019 RTX PRESENTATION Q3 2018/19 PRESENTATION BY CEO PETER RØPKE & CFO MORTEN AXEL PETERSEN WIRELESS WISDOM WORKS IN ANY ENVIRONMENT
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 uncerta inties concerning possible investments. 2 RTX Presentation Q3 18/19 - 30 Aug 2019
AGENDA 1. 1. RTX BUS BUSINESS S MODEL 9:00 :00 – 9:15 :15 2. FINANCIAL RESULTS Q3 AND 9M 2018/19 9:15 – 9:30 3. BUSINESS UPDATE Q3 2018/19 9:30 – 9:40 4. OUTLOOK 2018/19 9:40 – 9:45 5. Q&A SESSION 9:45 – 10:00 3 RTX Presentation Q3 18/19 - 30 Aug 2019
STRENGTH PROFILE RTX has has a: a: • Mark arket-leading pos positio ion in wireless solutions. • Proven abil ability to develop, innovate and manufacture customized solutions. • Ded Dedicated gr growth strategy - focus on 4 business areas: Enterprise, Headset, ProAudio and Healthcare. • Soli Solid bu business ss mod odel with high degree of recurring revenue from loyal customers. • High pr Hig profitabilit ity, that can be maintained with the right product mix. • Le Leverage opp opportunity within the current business setup. • Sustained foc Sus ocus on on sha shareholder valu lue - CFFO invested in value creation or paid back to the shareholders. 4 RTX Presentation Q3 18/19 - 30 Aug 2019
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. Globally certified 264 ISO 9001 1993 +1,000 Projects Founded in 1993 and FTE employees by 30 according to headquarter in Denmark completed September 2018 ISO 9001:2015 EBITDA & EB & EB EBITDA-MARGIN EB EBIT & & EB EBIT-MARGIN REVENUE & & GRO ROWTH DKKm % DKKm % DKKm % 500 25 100 20 100 20 400 20 80 80 15 15 300 15 60 60 10 10 200 10 40 40 5 5 100 5 20 20 0 0 0 0 0 0 201 013/1 3/14 201 014/1 4/15 201 015/1 5/16 201 016/1 6/17 201 017/1 7/18 201 013/1 3/14 201 014/1 4/15 201 015/1 5/16 201 016/1 6/17 201 017/1 7/18 201 013/1 3/14 201 014/1 4/15 201 015/1 5/16 201 016/1 6/17 201 017/1 7/18 Revenue Growth % EBITDA EBITDA % EBIT EBIT-margin 5 5 RTX Presentation Q3 18/19 - 30 Aug 2019
WHAT WE DO ProAudio Enterprise In the Enterprise segment, RTX designs, develops, With years of experience in ProAudio and supplies wireless IP telephony solutions used design, development and manufacturing, RTX has gained the in communication systems for professional use, e.g. in office environments, call centers, retail or expertise to deliver incredible sound quality in high-density RF storage facilities etc. The wireless IP telephony 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 As an Enterprise adjacency, the RTX wireless modules and products used for headset range for call centers & offices continuous patient monitoring in hospitals consists of several different models as well as the design of wireless solutions from high-end to low-end, supporting for projects in assisted living such as hearing customer demand for high quality and aid accessories. deep integration. 6 RTX Presentation Q3 18/19 - 30 Aug 2019
HOW WE WORK: MOVING FROM DESIGN TO PRODUCTS TO GENERATE RECURRING REVENUE 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 INTEGRATION CERTIFICATION CHAIN MANAGEMENT DESIGN At RTX, we start by combining 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 with our wireless know-how into to evaluate system performance in- reduce your time to market and ISO13485, TS16949 and AS9100 a Product Requirement Specification. house. We integrate each design at lower approval and certification certified manufacturers, Our engineering teams then design a system level so that every costs. If required, we can also we guarantee a production solution that is based on the right component and sub-system works handle the full type approval through the entire product life- combination of mechanics, hardware perfectly, evaluating performance service for our customers. cycle. and software. Combined with our list of against test cases for the fully patented solutions and in-house integrated system. developed protocols, we promise our customers a compelling result. 7 RTX Presentation Q3 18/19 - 30 Aug 2019
RTX BUSINESS MODEL HAS INHERENT TIME-LAG FOR RECURRING REVENUE Illustrative RTX Business Case by Product Life Cycle Effort & Revenue Revenue Engineering Effort ODM/OEM Revenue NRE Revenue Yea ears Y1 Y2 Y3 Y4 Y5 Y6 Y7 End of Development Ramp Phase Main Phase Life RTX Presentation Q3 18/19 - 30 Aug 2019 8
WITH SIMULTANEOUS DEVELOPMENTS, THE EFFECT OF TIME-LAG MAY BE COMPOUNDED Customer X: Project Xxx Customer C: Project Charlie Customer B: Project Bravo Customer A: Project Alpha (Illustrative) Effort & Re Ef Revenue Revenue Engineering Effort ODM/OEM Revenue NRE Revenue Years Y1 Y2 Y3 Y4 Y5 Y6 Y7 9 RTX Presentation Q3 18/19 - 30 Aug 2019
FOCUSED GROWTH STRATEGY RTX Foc ocus Seg egments RTX Growth Str trateg egy Total = 475m Strengthen position in Hea ealtchcare 6% 6% Hea ealthcare • Increase share-of-wallet Design Services Utilize unique position in ProAudio 26% 26% ProA oAudio • Leverage unique technology into recurring revenues • Lead the transition into digital wireless Expand leadership and grow into adjacencies in En Enterp rprise En Enterpri rise Business 68% 68% • Continue to gain share and consolidate market Commu- (wireless IP & telephony and headsets) nications • Recurring revenue from long-term customer agreements • Leverage position to establish a presence Hea eadsets as an adjacency • Utilize system integration as competitive advantage Revenues 2017/18 10 RTX Presentation Q3 18/19 - 30 Aug 2019
WHO WE WORK FOR 11 RTX Presentation Q3 18/19 - 30 Aug 2019
AGENDA 1. RTX BUSINESS MODEL 9:00 – 9:15 2. 2. FI FINANCIAL RE RESU SULTS Q3 Q3 AN AND 9M 9M 20 2018 18/19 19 9:1 9:15 5 – 9:3 9:30 3. BUSINESS UPDATE Q3 2018/19 9:30 – 9:40 4. OUTLOOK 2018/19 9:40 – 9:45 5. Q&A SESSION 9:45 – 10:00 12 RTX Presentation Q3 18/19 - 30 Aug 2019
GROUP HIGHLIGHTS FROM Q3 2018/19 REVENUE EBITDA EBIT EBITDA-MARGIN EQUITY RATIO CFFO DKK 26 m DKK 149 m DKK 30 m 20 % 73 % DKK 34 m EBITDA EB EBIT EB REVENUE DKKm DKKm DKKm 160 35 35 140 30 30 120 25 25 100 20 20 80 15 15 60 10 10 40 5 5 20 0 0 0 Q3 3 14 14/1 /15 Q3 3 15 15/1 /16 Q3 3 16 16/1 /17 Q3 3 17 17/1 /18 Q3 3 18 18/1 /19 Q3 3 14 14/1 /15 Q3 3 15 15/1 /16 Q3 3 16 16/1 /17 Q3 3 17 17/1 /18 Q3 3 18 18/1 /19 Q3 3 14 14/1 /15 Q3 3 15 15/1 /16 Q3 3 16 16/1 /17 Q3 3 17 17/1 /18 Q3 3 18 18/1 /19 13 13 RTX Presentation Q3 18/19 - 30 Aug 2019
Recommend
More recommend
