RTX — Annual Report 2024

Nov 28, 2024

RTX A/S Annual Report 2023/24

RTX A/S • Stroemmen 6 • DK-9400 Noerresundby • CVR no. 17 00 21 47
1 October 2023 – 30 September 2024

Helping people perform at their best

Visit our website to learn more about our turn-key solutions →

Wireless communication is an integral part of all our lives. It seamlessly helps us connect and communicate – in our work as well as in our spare time. RTX’s purpose is to help people perform at their best by providing our customers with the best possible wireless communications solutions.

RTX Annual Report 2023/24

• Our Growth Strategy
• Global Industry Structure
• Our Customer Partnerships
• How we Work
• Enterprise
• ProAudio
• Healthcare

Business & Strategy

• Remuneration Report
• Sustainability Report
• Introduction

RTX at a Glance

2023/24 Highlights

Letter from the Chairmanship

Financial Highlights for the Group

Group and Parent Financial Statements

• Income Statement
• Statement of Comprehensive Income
• Balance Sheet 30 September
• Equity Statement for the Group
• Equity Statement for the Parent
• Cash Flow Statement
• Notes

Statements

• Management’s Statement
• Independent Auditor’s Report

The long-term financial ambitions of RTX are to realize significant revenue and earnings growth in the coming years.

The 2023/24 RTX reporting suite

• Business & Strategy
• Our Growth Strategy
• Global Industry Structure
• Our Customer Partnerships
• How we work
• Enterprise
• ProAudio

• Healthcare

• Sustainability

• Our Sustainability Focus
• Performance 2023/24
• Performance

• Quarterly Financial Highlights

• Governance

• Corporate Governance
• Risk Management
• Capital Structure and Allocation
• The RTX Share

• Board of Directors and Executive Board

• 2023/24 Performance

• Quarterly financial Highlights
• Performance
• Corporate Governance Report
• 2023/2024 Performance
• Business & Strategy
• Financial Statements
• Management Review

Contents

RTX Annual Report 2023/24

RTX at a Glance

RTX innovates, designs, and manufactures wireless communication solutions within Enterprise, Healthcare, and ProAudio. Working in close partnership with our customers, we offer customized, ‘turn-key’, end-to-end solutions with full product lifecycle management designed to make a difference in the market.

We provide the crucial wireless communication infrastructure that you can embed seamlessly and reliably into a broad spectrum of high-tech medical devices, including multi-parametric patient monitoring.

47 DKK million in revenue
9% of share group

In the world of commercial wireless audio solutions, good business depends on transmitting and receiving high-quality sound reliably so that those listening can hear clearly and comfortably.

120 DKK million in revenue
24% of share group

Focusing on making sure all the component systems integrate seamlessly and reliably, we design, develop and manufacture wireless IP telephony products and sub-systems.

331 DKK million in revenue
67% of share group

Enterprise

ProAudio

Healthcare

Our purpose is to help people perform at their best. We provide our customers with the best possible wireless communications solutions, allowing their customers to seamlessly connect and communicate.

MÅ IKKE SLETTET

Introduction

2023/24 Highlights

	LY 2023/24	LY 2022/23
Sustainability highlights
Board gender diversity
Members elected by AGM (end year)	17%	20%
Female
Scope 1 & 2 emissions
CO₂e tons (location-based)	290	316
Energy consumption MWh	1,428	1,410
Employee absence %	2.3
Financial highlights
Revenue DKKm	498	783
EBITDA DKKm	3	108
Gross margin %	46.7	45.8
EBIT DKKm	-34	68

Introduction

Peter Thostrup

Chair

Henrik Schimmell

Deputy Chair

Letter from the Chairmanship

Temporary slowdown but unchanged potential for RTX

At the beginning of the year, we anticipated that demand in 2023/24 would not reach the record level of 2022/23, which was a year positively influenced by market recovery after a period of supply chain constraints and shortages of key components. As the year progressed, it became evident that customers in both our Enterprise and ProAudio segments continued to hold high levels of inventory, resulting in lower than expected demand for our products and services. Consequently, we adjusted our full-year financial guidance in June 2024.

We ended the fiscal year 2023/24 with a revenue of DKK 498 million, EBITDA of DKK 3 million and EBIT of DKK -34 million. Both revenue and earnings were within the ranges of our adjusted guidance. Although a lower revenue in 2023/24 was expected, we are disappoint-ed by the weak pick-up in demand in the second half of the fiscal year. However, we are reassured that this is not due to a loss of market share, but rather a result of changing market dynamics throughout the value chain, right down to the end-users. It is also encouraging that our customer base continues to grow and become more diverse.

Our products and solutions continue to set industry standard with consistently positive feedback from customers and partners. This is further supported by important commercial achievements during the year. In our Enterprise segment, we saw growth in solutions for the retail market, partly stemming from the launch of a new product range targeting the retail market by one customer. In the latter part of the year, we also saw encouraging re-order patterns from a long-standing European customer.

In ProAudio, we expanded our partnership network with a North American distribu-tor, focusing on enabling professional audio solutions through the sale of audio modules. The modular approach offers customers cost-effective and short time to market, while providing RTX with scalability.

In Healthcare, we reached a significant milestone by signing a strategic collaboration agreement with a major global healthcare company to develop and launch a new generation of wireless infrastructure solutions for hospitals. Significant progress, including successful field tests at a large US hospital chain, has been made on this important agreement, supporting our long-term ambitions in the Healthcare segment.

Looking ahead

The return to what we initially saw as more ‘normal’ market dynamics did not occur, and short-term we are still impacted by high stock levels at our customers. The industry as a whole is facing significant short-term uncertainty, compounded by macro-economic and geopolitical factors, which has resulted in an un-precedented lack of visibility for both RTX and our customers. This lack of visibility is reflected in our financial outlook for 2024/25 where we expect revenue in the range of DKK 490-520 million with an EBITDA of DKK 0-20 million and an EBIT of DKK -35 to -15 million.

The long-term potential of RTX remains un-changed, as does our strategic direction. We continue to leverage our wireless expertise to drive revenue as an ODM/OEM supplier under long-term framework agreements with customers in the B2B Enterprise, ProAudio, and Healthcare seg-ments, while advancing our strategic shift towards a more scalable product- and solution-based business model. Our long-term ambition of reaching total revenue of DKK 1 billion and an EBITDA margin above 16% through growth in all three business segments remains intact. However, we must recognize that achieving these milestones in 2025/26, which was the original aspiration, is no longer realis-tic. The current uncertainty and lack of visibility prevents us from setting a new specific year for achieving the ambition at this stage.

Sustainability

At RTX, we understand that our impact on people, the environment, and communities extends beyond our wireless solutions. Acting responsibly means working to minimize any potential harm from our operations. Since adopting the UN Global Compact in 2014, we have committed to its principles on human rights, labor, the environment, and anti-corruption.

In 2023/24, we continued to strengthen our sustainability insight and knowledge, focusing on products and people. We have made a Double Materiality Assessment in order to understand key sustainability issues for RTX first, and secondly prepare a good foundation for CSRD reporting requirement. Products remain our largest area of envi-ronmental impact, while our employees and partners are key to shaping and driving these initiatives forward.

Sustainability Report → Read more about our sustainability focus areas and actions in our Sustainability report.

Management

In May 2024, CEO Peter Røpke announced his resigna-tion, effective 30th November 2024. Peter has made significant contributions to the development of RTX since joining in 2016, and we wish him all the best in his future endeavors. As announced in November, Henrik Mørck Mogensen has been appointed as new CEO, joining the com-pany no later than 1st of March 2024. Henrik Mørck Mogensen brings a strong technical background combined with a considerable commercial and strategic experience. Until Henrik Mørck Mogensen starts, the Executive Management Team consisting of Mille Tram Lux, Jens Christian Lindof, Peter Christensen, Peter Jeggesen and Hans Henrik Petersen with the support from the Board of Directors will cover the CEO respon-sibilities.

The Board is confident that RTX’s scalable business model, which generates revenue from long-term framework agreements with globally recognized B2B customers, will ensure long-term profitable growth. We also recognize that people are RTX’s most important asset. Therefore, we would like to sincerely thank all our employees for their efforts and dedication, and for adapting to the challenges and changes we have faced during the year. We also thank our customers, share-holders and other stakeholders for their continued trust and support.# RTX Annual Report 2023/24

Introduction

Peter Thostrup Henrik Schimmell
Chair of the Board Deputy Chair

Financial Highlights for the Group

Amounts in DKK million

	2023/24	2022/23	2021/22	2020/21	2019/20
Key ratios (percentage)
Growth in net turnover	-36.3	18.0	45.1	-17.8	-0.8
Gross margin	46.7	45.8	46.6	52.3	55.6
Profit margin	-6.8	8.7	6.9	1.3	15.0
Return on invested capital	-5.1	28.7	25.6	10.7	54.1
Return on equity	-8.8	13.2	10.9	1.1	18.1
Equity ratio	65.8	65.2	59.6	59.5	66.0
Employment
Average number of full-time employees (1)	291	299	282	286	292
Average number of FTE employed directly (1)	256	267	249	257	264
Revenue per employee (DKK '000)	1,713	2,618	2,352	1,598	1,904
Operating profit per employee (DKK '000)	-117	227	162	21	286
Shares (number of shares in thousands)
Average number of shares in distribution	8,084	8,200	8,169	8,243	8,376
Average number of diluted shares	8,056	8,195	8,198	8,302	8,503
Share data (DKK per share at DKK 5)
Profit/loss for the year (EPS), per share	-3.8	5.7	4.2	0.4	7.5
Profit/loss for the year, diluted (DEPS), per share	-3.8	5.7	4.1	0.4	7.4
Dividends, per share	-	-	-	-	2.5
Equity value, per share	40.5	45.9	40.5	35.4	42.2
Listed price, per share	82.6	83.6	115.0	165.0	216.0

(1) Employees employed in RTX legal entities are defined as “employed directly”. Employees employees through service partner in countries where we have no legal entity, comprise the remaining employees.
(2) These represent internal development costs. The investment of DKK 21.9 million in intellectual property in strategic collaboration with a large global Healthcare company regarding a new generation of wireless infrastructure for patient monitoring solutions for the hospital healthcare sector, is not included in these figures. For more information see note 2.5 and 3.1

Note: The Group's financial year runs from 1 October to 30 September. The calculation of the financial highlights is described on page 97. IFRS 9 and IFRS 15 were implemented in 2018/19. Figures prior to 2019/20 have not been restated to reflect new accounting policy IFRS 16, implemented in 2019/20.

Amounts in DKK million

	2023/24	2022/23	2021/22	2020/21	2019/20
Income statement items
Revenue	498.3	782.8	663.3	457.2	555.9
Gross Profit	232.9	358.4	309.3	239.1	309.3
EBITDA	3.1	107.5	85.4	37.3	108.2
EBITDA %	0.6%	13.7%	12.9%	8.2%	19.5%
Operating profit/loss (EBIT)	-34.1	67.9	45.6	6.1	83.6
Net financials	-4.2	-8.7	-3.4	-6.6	-3.4
Profit/loss before tax	-38.3	59.2	42.3	-0.6	80.2
Profit/loss for the year	-30.7	46.7	33.9	3.6	63.1
Balance sheet items
Net liquidity position (1)	107.7	137.7	73.8	120.4	194.8
Total inventory	78.3	102.2	102.5	32.4	15.2
Total assets	491.3	578.1	556.8	485.3	533.6
Equity	323.4	377.1	331.6	288.5	352.2
Liabilities	167.8	201.0	225.2	196.8	181.4
Other key figures
Total development cost incurred (2)	65.5	33.2	30.6	42.3	43.8
Capitalized own development cost (2)	19.9	13.5	15.8	24.9	28.7
Depreciation, amortization and impairment	37.2	39.6	39.7	31.3	24.6
Cash flow from operations	21.5	97.0	-0.0	44.5	70.6
Cash flow from investments	-22.5	-26.7	30.5	9.7	-37.1
Investment in property, plant and equipment	1.4	10.2	11.4	18.6	7.9
Increase/decrease in cash and cash equivalents	-28.3	62.5	24.9	-22.4	-33.7

(1) Equals total of cash and current asset investments.

8

Business & Strategy

Our Growth Strategy

• Reaping economies of scale from product sales under long-term framework agreements
• Investing into products, platforms and technologies
• Building scalable processes and capabilities
• Optimizing partner network

We deploy our wireless capabilities across multiple attractive B2B markets in an ODM/OEM model to secure profitable growth via increased revenue and scalability. RTX continues to target long-term profitable growth by deploying our wireless capabilities across B2B markets in an ODM/OEM model, focusing on increasing revenue and scalability. We do this via long-term framework agreements with global B2B customers in three attractive market segments: Enterprise, ProAudio, and Healthcare. We will continue to invest in product- and platform development, both with customers and through RTX funded strategic initiatives. Our focus is product- and system solutions with long lifecycles, which help maximize value of existing long-term framework agreements and secure new ones. Scaling existing agreements will be a key growth driver. Our uniform business model and go-to-market approach will help us achieve economies of scale via robust, scalable processes and continuously upgrading of our technological capabilities. We will also continue to optimize our supplier network and strengthen the value chain to support growth.

• Expand leadership position
• Utilize unique position
• Strengthen position

Global Industry Structure

In the global industry structure, RTX’s primary role, as an ODM/OEM, is development
In the evolving technology landscape, companies contribute across different layers based on their role. As an ODM/OEM, RTX primarily focuses on development, working closely with customers and EMS partners. While our core role is in development, we also engage in manufacturing and brand-related activities, offering product customization, technology integration, and full lifecycle management. As a pure-play solutions provider, we don’t market directly to end-users. Instead, we focus on being a long-term ODM/OEM partner, tying our success to that of our customers by developing unique products and solutions that help them succeed in their markets.

Our Customer Partnerships

Our mission is to help our customers make a difference in their markets. Therefore, understanding the needs of our customers is at the very core of our approach to customer partnerships. RTX’s wireless solutions enable B2B customers to market reliable, secure, and scalable systems with seamless integration to meet their specific communication and monitoring needs and respond to market demands. We do this across three attractive market segments: Enterprise, ProAudio, and Healthcare. Our Enterprise solutions provide modular, scalable communication systems with reliable wireless connectivity and tailored features for businesses of all sizes. Our ProAudio solutions support multiple device connections and ensure clear, low-latency audio even in dynamic environments. Our Healthcare solutions support real-time patient monitoring with secure data handling, enhancing care quality. Our vast wireless expertise and end-to-end solutions set us apart from the competition and enable us to deliver customized products and solutions with agility and high quality. We help technology brands make a difference in the market by optimizing wireless technology in their product portfolios.

How we work

1. IDEA
2. Concepts and planning
3. Design and specifications
4. Development and integration
5. Testing and verification
6. Manufacturing and logistics
7. Post-sales processes

Enterprise

67%

Share of Group revenue 2023/24

	2019/20	2020/21	2021/22	2022/23	2023/24
Enterprise	331	382	308	493	527
0	100	200	300	400	500
600

Our business In RTX Enterprise, we help our B2B customers, primarily large global companies, deliver advanced wireless communication solutions for their customers. The solutions are used in different environments, such as retail, healthcare, warehouses, offices, call centers, public buildings, and more demanding commercial and industrial settings, where equipment certified as explosion- or waterproof is required. We ensure seamless integration and reliability across all system components. Our expertise spans the design, development, and manufacturing of wireless IP telephony products and subsystems, including headsets, handsets, base stations, repeaters, location beacons, and advanced cloud-based deployment and device management tools. With deep technical expertise and specialized services, we help our customers secure contracts with innovative wireless communication solutions. These solutions are modular and scalable to evolving needs and are known for their reliability and high audio quality. Solutions include location detection, unique safety and alarm features, and easy integration with other systems and hardware.

Market trends
Within the global enterprise communications market, more and more businesses are moving enterprise telephony to the cloud to enable digital transformation, greater agility, and better support for a distributed workforce. This shift drives demand for new endpoints, particularly handsets and headsets, replacing traditional corded desktop phones. There is also an ongoing consolidation in handset manufacturing which RTX continues to drive and benefit from. This consolidation is driven by increased outsourcing of handset development and production, especially for pure-play ODM/ OEM providers like RTX. According to Frost & Sullivan, the global professional market for wireless handsets is estimated at USD 850 million or 4 million units annually, with DECT technology comprising over 3 million units. The global wireless professional headsets market is estimated at over USD 1 billion or 8 million headsets annually.

RTX also gained new SME customers and advanced our self-financed product lines and our cloud-based deployment and device management tools.

14# Enterprise growth strategy

RTX aims to expand its leadership position in Enterprise products and solutions by continuing to drive market consolidation and gain market share. Our pure-play ODM/OEM model ensures that customers will not face channel conflicts with RTX-branded products and solutions. This enables us to benefit from customer outsourcing and ensures revenue through long-term framework agreements with large global clients. Focusing on system integration as a competitive advantage, supported by cloud-based deployment and management tools, we enhance customer solutions and increase RTX’s share of the wallet. A key growth driver will be the continued scaling of partnerships tied to major Enterprise agreements.

2023/24 highlights

In 2023/24, revenue was impacted by high customer stock levels and shorter order lead times (from 18 to 3 months) as markets normalized after three volatile years with COVID-related production restrictions and component shortages. As customers reduced inventories, RTX experienced lower order intake and revenue. However, some customers have resumed ordering, and long-term confidence in our product range remains strong, with no discontinued products and ongoing demand for new features.

5-year Enterprise revenue

DKK million

As organizations grow and diversify, managing wireless headsets across different teams and environments becomes increasingly complex. From call centres to remote workers, ... → Read more at rtx.dk

Simplifying Wireless Headset Management - Policy Controls with RTX Cloud Services

EX (ATEX) technology plays a crucial role in modern industrial environments ensuring worker safety without compromising the need for advanced communication solutions ... → Read more at rtx.dk

Securing industrial communications with RTX EX (ATEX) solutions

Insights

Enterprise

Enterprise 15

RTX Annual Report 2023/24

Business & Strategy

ProAudio

Our business

In RTX ProAudio, we help B2B customers design, develop, and manufacture wireless audio solutions, from modules and circuit boards to full ODM products, all powered by RTX software. Examples of solutions include microphone and instrument connectivity, wireless gaming headsets and peripherals, conference systems, content creation solutions, intercom systems for restaurants, construction sites, or more complex systems for TV productions and large sporting events, etc. RTX-patented methods help customers cope with harsh environments and achieve optimal sound quality through resilient wireless connectivity, low latency, high capacity, and distortion-free audio. With our proven platforms, Sheerlink™ and TeamEngage™, we enable faster, hassle-free, cost-effective development and delivery of professional-grade audio solutions. RTX simplifies the creation of high-quality wireless audio devices for our customers.

Market trends

The professional audio solutions market is fragmented and expanding, with new applications emerging and existing ones shifting to digital wireless, driven by the demand for mobility and wireless connectivity. Our platform-driven approach allows us to cover this market effectively with a few select, well-defined hardware modules and software assets. Our platforms align well with key industry trends, including the need for higher capacity, automatic configuration, and ease of use. Wireless solutions are a significant and growing part of professional audio applications. Arizton Advisory & Intelligence estimates global sales of professional wireless microphones at over 2 million units annually. There is additional growth opportunity from wireless instruments and DJ products, and within the global intercom market, valued at USD 6 billion, more than 50% is wireless.

2023/24 highlights

In 2023/24, revenue from full products was impacted by high customer stock levels and shorter order lead times (from 18 to 3 months) as markets normalized after three volatile years with COVID-related disruptions and component shortages. As customers reduced inventories, RTX experienced lower order intake and revenue. However, we continued expanding our module business by onboarding several new customers and ramping up existing customers. To support future Share of Group revenue 2023/24 ProAudio 24% 16 Business & Strategy RTX Annual Report 2023/24

	2019/20	2020/21	2021/22	2022/23	2023/24
DKK million	186	120	128	103	114

growth, we enhanced our Sheerlink™ and TeamEngage™ platforms with new features and expanded our partnership network with a North American distributor.

ProAudio growth strategy

In ProAudio, we want to lead the transition to digital wireless in professional audio markets and generate revenue from our unique technology. We achieve this by refining and productizing our technology into flexible platforms like Sheerlink™ and TeamEngage™, supported by RTX modules and select custom ODM/OEM products. This modular approach offers customers a short time to market and cost-effective entry while providing RTX with scalability and revenue through framework agreements. A key growth driver will be the continued market expansion with our Sheerlink™ and TeamEngage™ platforms and modules.

5-year ProAudio revenue

DKK million

Sheerlink™ by RTX sets a standard for wireless performance, empowering artists and audio professionals to create greater experiences through its robust radio technology, high-quality audio, and low latency ... → Read more at rtx.dk

Enhance work efficiency and save time by letting the wireless communication setup adapt to the location and role of team members ... → Read more at rtx.dk

Elevating Wireless Performance with RTX Sheerlink™

Improving Teamwork Efficiency

ProAudio ProAudio 17

RTX Annual Report 2023/24

Business & Strategy

Healthcare

Our business

In RTX Healthcare, we help B2B customers integrate wireless technology into critical patient care solutions. Our wireless technology enables seamless and reliable patient monitoring infrastructure and devices. Through collaboration with our customers, the RTX technology platform offers plug-and-play infrastructure access points, repeaters, and modules that can be embedded in customers’ solutions, including patient-worn devices and near-patient monitors. RTX’s wireless solutions are designed, manufactured, and delivered as standards-compliant modules, allowing for quick and easy integration. This helps our customers develop and market commercially and technically attractive healthcare solutions faster.

Market trends

In healthcare, it is essential to monitor patient’s vitals closely and be alerted to any change in their condition. Accurate and timely data leads to improved patient outcomes and more efficient use of healthcare resources. Wireless technology plays a key role in transferring patient critical data from an increasing number of devices and sensors directly to a centralized monitoring station while allowing for patient mobility and independence. IHS Markit estimates the continuous patient monitoring market at 1.8 million units, valued at over USD 4 billion. This market includes centralized systems for critical care and decentralized systems for post-acute, ambulatory, home, or small and field hospital settings, with both segments expected to grow. While Healthcare is relatively recession-proof, it is also a conservative market where products often have long lifecycles. This makes new product introductions slow, but they provide stable revenue streams once established.

2023/24 highlights

In November 2023, we reached a significant milestone: RTX signed a strategic collaboration agreement with a major global healthcare company to develop and launch a new generation of wireless infrastructure solutions for hospitals. Our focus has been on developing the product portfolio and preparing for this transition. This agreement is expected to boost revenue and gross margin in the Healthcare segment over the coming years.

Share of Group revenue 2023/24

Healthcare 9%

	2019/20	2020/21	2021/22	2022/23	2023/24
DKK million	70	47	46	47	56

18

Business & Strategy

RTX Annual Report 2023/24

Healthcare growth strategy

RTX aims to grow our Healthcare business in wireless solutions for continuous patient monitoring by broadening and deepening our offerings. This strategy focuses on three interrelated dimensions:

• Continue growing our existing centralized continuous patient monitoring business, including increased share-of-wallet with our long-term blue-chip healthcare customer.
• Expanding our value chain share via a broadened portfolio and increased production of sub-assemblies and infrastructure.
• Expansion into decentralized continuous patient monitoring.

A key growth driver will be the continued execution of strategic collaboration agreements with major global healthcare company.

5-year Healthcare revenue

DKK million

RTX help B2B customers in the healthcare sector by integrating wireless technology into critical patient care solutions. Our wireless technology enables seamless and reliable patient monitoring infrastructure and devices ... → Read more at rtx.dk

Wireless Patient Monitoring

Healthcare Healthcare 19

RTX Annual Report 2023/24

Business & Strategy

Sustainability

Our Sustainability Focus

20 Sustainability

RTX Annual Report 2023/24

Our Sustainability Focus

At RTX, we are committed to responsible actions, aiming to contribute to a sustainable future for society. Our approach is guided by our dedication to the ten principles of the UN Global Compact, focusing on areas where we can make an impact. RTX develops and delivers advanced wireless communication solutions that help people perform at their best. Beyond the immediate advantages of wireless connectivity, our solutions contribute to global sustainability by reducing the need for travel and minimizing physical infrastructure such as cables.# RTX Annual Report 2023/24

Sustainability

We recognize that our impact on people, the environment, and communities worldwide extends beyond our direct product benefits. That’s why we are committed to minimizing any potential harm while responsibly addressing the needs of our stakeholders. The most important elements in our sustainability efforts are products and people. Products because they are where we have the biggest impact. People, both employees and partners, because they are essential in shaping and advancing our improvement efforts. This section is an extract of RTX’s work with Sustainability. The complete statutory report pursuant to section 99a and 107d of the Danish Financial Statements Act appears in the RTX Sustainability Report.

Sustainability Report → Further reading

This section is an extract of RTX’s work with Sustainability. The complete statutory report pursuant to section 99a and 107d of the Danish Financial Statements Act appears in the RTX Sustainability Report, which can be downloaded from RTX’s website: https://www.rtx.dk/about-rtx/csr/

Our approach to sustainability

Our sustainability efforts are rooted in two key commitments: Our membership of the UN Global Compact, since 2014, which upholds principles on human rights, labor, environment, and anti-corruption, and our materiality assessment, which identifies the sustainability issues – impacts, risks, and opportunities (IROs) – most material to RTX and its stakeholders.

Our material stakeholders include our partners on both the customer- and supplier side. Our customers in all business segments, Enterprise, ProAudio, and Healthcare, strongly influence our sustainability priorities. We support their sustainability targets and plan to integrate them into our own targets in the coming years. We actively engage with customers to explore ways to reduce their product footprints across design, development, production, use, and life extension phase. Our suppliers, primarily global EMS (electronic manufacturing services) providers, manufacture products designed and developed by RTX in corporation with our customers. We collaborate with global EMS partners who have clear and ambitious sustainability goals, which they report on regularly. Employees and shareholders are also key stakeholders. Sustainability is increasingly important for attracting and retaining talented employees, while shareholders view it as a critical factor in investment decisions. Although we have other stakeholders, their impact is more indirect and less significant in our materiality assessment.

Our sustainability approach is integrated into our business practices and reflected in our policies, including staff policy, supplier code of conduct, remuneration policy, whistleblower program, and tax policy, etc. To track progress, we measure and report on key environmental, social, and governance (ESG) metrics, using KPIs to guide improvements. This includes measurement of our carbon emissions according to the Greenhouse Gas Protocol and reporting to the Carbon Disclosure Project (CDP). In our annual sustainability report for 2023/24 (which also serves as our COP report for 2024), we describe the actions and due diligence approach taken on the sustainability risks and the issues most important to RTX - including index mapping to the UN Global Compact principles and UN Sustainable Development Goals (SDGs).

Double materiality

RTX is subject to EU Corporate Sustainability Reporting Directive (CSRD), with reporting requirements taking effect for our 2025/26 Annual Report. To prepare, we have this year conducted our first double materiality assessment (DMA). Our double materiality assessment, aligned with CSRD and associated European Sustainability Reporting Standards (ESRS), followed four key steps: 1. Identify ESG topics, 2. Collect data, 3. Evaluate impacts, risks, and opportunities (IROs), and 4. Scope reporting requirements. A total of nine topics are considered material for RTX: Three topics with both financial- and impact materiality and six additional topics with impact materiality only. The double materiality assessment triggered 14 out of 37 ESRS sub-topics for RTX’s CSRD reporting, with 231 data points deemed material. This number excludes value chain datapoints subject to a 3-year grace period, datapoints gradually phased in for reporting, and voluntary data points. Going forward, we continue to prepare for CSRD by outlining and implementing reporting processes, systems, and controls for our ESRS disclosures as defined by our DMA. In the near-term, this includes finalizing our already ongoing data gap assessment on individual datapoints / reporting requirements, onboarding data owners, and assigning roles and responsibilities.

Double Materiality matrix for RTX Group

Environment topics	Social topics	Governance topics
Climate change mitigation and energy use E1-a	Employee engagement, development, and DEI S1-a	Business conduct, incl. corruption and brief G1-a
Climate change adaptation E1-b	Employee health and well-being S1-b	Political influence and lobbying G1-b
Resource use, circularity, and waste E5	Responsible supply chain management S2	Data privacy and cybersecurity CS
Water management E3	Health and safety of consumers S4-a
Biodiversity and ecosystems E4	Social inclusion of consumers S4-b
Microplastics polution E2-b
Substances of concern E2-a
Pollution of air, water, and soil E2-c
Impact on local communities S3

Focus areas and activities

In RTX, we develop products within the framework of standards like, e.g., REACH, RoHS, ecodesign etc., which regulates the use of conflict minerals and regulated substances, take lifecycle impact into consideration and work with repairability and circularity of products. We do this in collaboration with large multinational customers and suppliers, who set ambitious sustainability goals. We will continue to work closely with these partners, firstly to gather data and establish a reporting baseline, secondly to set common improvement targets and execute on these. Our aim is to always act responsibly and proactively help build a better future.

Environment

We have continued our focus on understanding our climate impact and use of resources. We exceeded our 10% reduction target for this year’s carbon emissions from electricity, with a decrease of 16%, partly driven by decreased consumption in Denmark and China and our total scope 2 emissions (location-based) also decreased. We are in the process of outlining our scope 3 emissions across our supply chain in collaboration with external consultants. This process is not yet completed, and consequently scope 3 data is not included in this report. In connection with this expansion to scope 3, we are using a new system with improved carbon conversion data. This data improvement also impacts our historical figures. Because of this, and to correct errors related to carbon conversion for heating in prior years, we choose to restate our historical scope 2 data.

We have also continued our focus on sustainability when developing products and services. With millions of products shipped globally on an annual basis, it is via the products that RTX has the largest opportunity to make a positive difference on the sustainability front. Ecodesign principles continue as a key focus area for RTX and several ecodesign principles have already been incorporated into our product design and development processes and are used on all new products being designed. We completed three product carbon life cycle assessments (LCAs) which provided transparency on the carbon footprint of the selected product types. In collaboration with our customers and suppliers, we plan to use these insights to enhance sustainability of future product designs. Together with our partners, we also introduced our ‘zero plastics in packaging’ ambition, building on prior efforts and initial lessons on how best to replace plastic bags in our packaging. We have also worked with suppliers and customers to explore how best to leverage recycled plastics in product designs with the aim to reduce customers’ product footprints.

Social

As a knowledge-based company, employee satisfaction and -development are critical to success and key parameters remain positive. Surveys confirmed high levels of motivation and commitment among RTX employees, general satisfaction with both their physical and mental work environments, and employee absence remained below our target KPI of 2.5%. Per our double materiality assessment, product safety and supply chain management are material topics for RTX. We have our Code of Conduct for suppliers and other supply chain specific requirements, including REACH, RoHS, conflict minerals, and further requirements as risk management measures. Robust management governance is required to ensure compliance by RTX Group and its suppliers, thereby addressing the most common risks associated with supply chain and product safety, and we continue to strengthen this area. In 2024, we established the RTX Product Compliance Board and launched our new RTX Cyber Security Board.

Governance

RTX has a corporate governance policy. We prepare annual reporting on our compliance in line with the recommendations on corporate governance. We have zero tolerance towards corruption and bribery and have a whistleblower reporting system in place. There is no history of incidents involving RTX, and no incidents were reported through the whistleblower system in 2023/24.

Diversity

According to the Danish Financial Statement Act section 99b, we disclose diversity figures and targets on page 24. RTX strives to attract and retain a balanced representation of men and women.# RTX Annual Report 2023/24

Sustainability ESG Reporting Table

KPI	Unit	2023/24	2022/23	2021/22	2020/21	Target
Environment data
Energy consumption (absolute)	MWh	1,428	1,410	1,431	1,430	Targets for energy consumption and carbon emissions to be determined following completion of already ongoing scope 3 assessment.
Energy consumption (relative)	MWh/average FTE	4.9	4.7	5.1	5.0
Scope 1 carbon emissions (absolute)	CO₂e tons	22	23	27	23
Scope 2 carbon emissions (location-based, absolute)	CO₂e tons	268	293	302	301
Scope 2 carbon emissions (market-based, absolute)	CO₂e tons	469	434	433	425
Scope 1 and 2 carbon emissions (relative)	CO₂e tons/average FTE	1.0	1.1	1.2	1.1
Social data
Full-time workforce average FTE	FTE	291	299	282	286	NA
Employee absence ratio	%	2.3	2.2	2.5	1.1	2.5% or below
Employee turnover ratio	%	15.0	8.5	13.7	13.6	NA
Women as share of all employees	%	19	18	20	17	NA
Persons in other management levels	no	25	24	24	24	NA
Women as share of other management levels	%	28%	25%	25%	25%	25% or above by 2027
Governance data
Whistleblower reports	no	0	0	0	0	0
Members of the Board of Directors (elected by AGM)	no	6	5	6	5	4-6 members
Women as share of the Board of Directors (elected by AGM)	%	17%	20%	33%	0	40% or above by 2026
Attendance at ordinary board meetings	%	98	97	98	98	100%
Attendance at extraordinary board meetings	%	98	83	88	100	100%

Performance

2023/24 was characterized by a lower demand than expected, particularly in the Enterprise and ProAudio sectors, due to high customer inventory levels and a shift back to shorter ordering cycles. To bridge this temporary period with lower demand, while customers reduce their inventory levels, RTX has taken steps to reduce capacity costs. At the same time, we are carefully balancing cost management with strategic efforts to drive future revenue and diversify our customer portfolio.

Revenue by segment

DKK million	Healthcare	ProAudio	Enterprise
	47	120	331

Revenue from product sales & royalty % of total revenue

Share of revenue from product sales and royalty	Revenue 2023/24
Enterprise (DKK)	331 million
ProAudio (DKK)	120 million
Healthcare (DKK)	47 million

Revenue

At the beginning of the year, we anticipated that demand in 2023/24 would not reach the record level of 2022/23, a year positively influenced by market recovery after a period of supply chain constraints and shortages of key components. As the year progressed, it became evident that customers in both our Enterprise and ProAudio segments continued to hold high levels of inventory, resulting in lower than expected demand for our products and services. Consequently, we adjusted our full-year financial guidance in June 2024. We ended the fiscal year 2023/24 with a revenue of DKK 498 million. Although a lower revenue in 2023/24 was expected, we are disappointed by the weak pick-up in demand in the second half of the fiscal year. The average exchange rate realized on US dollar was lower than expected for the year, particularly in the last quarter. However, compared to last years currency rate, there is no significant impact when comparing year on year. RTX revenue in the Enterprise segment amounted to DKK 331 million, a decrease of DKK 196 million compared to 2022/23. Revenue from some of our large key customers was significantly lower than expected, in part driven by high customer inventory levels combined with a return to shorter order horizons. We have also seen significant growth with new customers in the retail segment, but it does not compensate for the lower demand from our large long-term enterprise customers. Some of these large key customers have also resumed ordering, and long-term confidence in our product range remains strong, with no discontinued products and ongoing demand for new features. In the ProAudio segment, RTX realized revenue of DKK 120 million, a decrease of DKK 66 million compared to 2022/23. The significant reduction is a reflection of our two full product customers experiencing lower than anticipated demand, combined with our strategic efforts to increase sales focus on ProAudio modules. Healthcare revenue reached DKK 47 million compared to DKK 70 million in 2022/23, a decrease of DKK 23 million. This is a result of two main factors: In 2022/23, revenue included DKK 20 million in income for development projects on the new, next generation, product portfolio. Also, we are currently in a transition phase towards next generation products, and consequently we see the effect in lower product sales ahead of the transition period.

Gross profit

The gross profit of RTX is impacted by the revenue level and reached DKK 233 million (2022/23: DKK 358 million). The gross margin in 2023/24 was 46.7% compared to 45.8% in the previous financial year. The gross margin is positively impacted by the product mix combined with dedicated efforts to improve gross margin on key products. The gross margin is negatively impacted by the lower total revenue compared to last year.

Gross Profit DKK million (%)	Gross Profit	Gross margin (%)
	233	46.7%

Capacity costs

Capacity costs (staff costs and other external expenses) amounted to DKK 250 million in 2023/24, a decrease from DKK 264 million in 2022/23. The variance arising primarily from cost cautiousness. The average number of employees was 291 in 2023/24, compared to 299 in 2022/23. By 30 September 2024, 187 were employed in Denmark (September 2023: 198) and 98 were employed internationally (September 2023: 100). Employee bonus will not be granted in 2023/24 as financial performance did not reach the target. External costs decreased in 2023/24, as a result of cost cautiousness across the company.

Employees

FTEs	Average FTEs (no.)
	291

Financial outlook & results 2023/24

DKK million	Realized	Outlook Jun 2024	Outlook Nov 2023
Revenue	498	500-510	580-630
EBITDA	3	0-10	45-60
EBIT	-34	-40 to -30	5-20

Earnings per share (EPS)

DKK per share

Capitalized development projects, depreciation, and amortization

During 2023/24, RTX has continued to invest in the development of product platforms and solutions for the various segments – including, ProAudio platforms and associated modules and product development and integration of the next generation for the Healthcare segment. Own development costs of DKK 20 million were capitalized in 2023/24 compared to DKK 14 million in 2022/23. The level of R&D costs reflects RTX’s strategy to extend the product portfolio to meet customer requirements. In line with this strategy, depreciation, amortization, and impairment, was, as expected, DKK 37 million in 2023/24.

Operating profits – EBITDA and EBIT

RTX earnings were significantly impacted by the lower revenue. RTX’s business model is based on product sales and scalability in volumes, so when volumes do not materialize, profitability is impacted significantly. EBITDA for 2023/24 reached DKK 3 million (2022/23: DKK 108 million), whereas EBIT reached DKK -34 million (2022/23: DKK 68 million). Despite challenging market conditions for all parties, management considers this result as unsatisfactory.

EBITDA and EBITDA margin

DKK million (%)	EBITDA	EBITDA margin
	3	0.6%

EBIT and EBIT margin

DKK million (%)	EBIT	EBIT margin
	-34	-6.8%

Equity

DKK million
491

Return on invested capital (ROIC)

%
-9.2

Cash flow from operations (CFFO)

DKK million
-18

Assets, equity, and liabilities

The total assets of RTX amounted to DKK 491 million at the end of 2023/24 (2022/23: DKK 578 million). The main changes are seen on inventory, receivables, and cash, which have all been reduced compared to last year. The Group’s total net liquidity position (total cash funds plus current securities less bank debt) decreased to DKK 108 million at the end of 2023/24 (2022/23: DKK 152 million). Inventory, normalized and components in stock were used for finished products, reaching DKK 78 million by the end of the year. Receivables fell due to the lower activity level and payables were impacted by inventory reductions and changes in provision for income tax. The negative earnings in the period had an impact of DKK -34 million. Cash was invested into future growth, via investments in capitalized development projects and fixed assets for a total amount of DKK 23 million (2022/23: DKK 27 million).

Financial items, tax, net profit, and EPS

Net financials amounted to an expense of DKK 4 million in 2023/24 compared to an expense of DKK 9 million in 2022/23.# RTX Annual Report 2023/24

Performance

The net expense was primarily caused by the USD/DKK exchange rate variance. Given the net financials and taxes recognized, net profit after tax amounted to DKK -31 million (2022/23: DKK 47 million). Earnings per Share (EPS) were DKK -3.8 in 2023/24 compared to DKK 5.7 last year. Cash Flow Cash flow from operations (CFFO) in 2023/24 was impacted by a decrease in working capital, share buy back program of DKK 20 million, and negative earnings for the year. Inventory increased during the first quarter in 2023/24 and hereafter decreased, as the supply situation DKK 138 million), positively impacted by the reduced working capital and negatively impacted by earnings. At the end of 2023/24, total equity was DKK 323 million (2022/23: DKK 377 million) corresponding to an equity ratio of 65.8% (2022/23: 65.2%). RTX thus continues to have a strong balance sheet and a suffi- cient cash position. Trade payables are on par with last year, whereas other payables are reduced, primarily due to tax provision. Furthermore, liabilities are impacted by deferred revenue on healthcare investment.

Parent company

The comments above relate to the development and performance of the Group. The development and perfor- mance of the parent company, RTX A/S, are in all mate- rial aspects similar to the descriptions for the Group.

Quarterly Financial Highlights

Q4 2023/24 – fourth quarter meeting expectations

RTX revenue for the fourth quarter of the financial year reached DKK 149 million and was thus the best performing quarter of the year. A lower exchange rate on the USD, impacted revenue for Q4 negatively by DKK 3 million, compared to last years exchange rate. Revenue of Q4 reflects an improvement compared to Q3, however still significantly below Q4 2022/23, which had a record high revenue of DKK 225 million. Revenue in the quarter is impacted by lower than expected demand, due to high inventory levels with our customers in both Enterprise and ProAudio. Healthcare revenue is impacted by the transition from existing to new products, integration of purchased development and change in business model, as a consequence of the agreement signed in November 2023 with a large Healthcare provider. The gross margin in Q4 2023/24 amounted to 51.3% compared to 44.9% in Q4 last year. The mix between segments impacts gross margin as well as the product portfolio which renders higher gross margin in all three segments in Q4 2023/24, compared to last year. Capacity costs in Q4 amounted to DKK 57.1 million compared to DKK 62.7 million in Q4 2022/23 mainly related to lower staff related costs. EBITDA for the quarter reached DKK 23.3 million in Q4 2023/24 (Q4 2022/23: DKK 43.4 million). EBIT amounted to DKK 16.5 million in Q4 (Q4 2022/23 DKK 33.1 million).

2023/24 vs. 2022/23 Financial Highlights

Amounts in DKK million	Q1	Q2	Q3	Q4	Full year	Q1	Q2	Q3	Q4	Full year
Income statement items
Revenue	81.9	125.2	141.9	149.3	498.3	207.5	180.0	169.9	225.4	782.8
Gross Profit	31.9	57.1	67.7	76.2	232.9	101.5	74.2	81.9	100.8	358.4
Gross Margin	38.9%	45.6%	47.7%	51.0%	46.7%	48.9%	41.1%	48.2%	44.7%	45.8%
EBITDA	-30.5	0.9	9.4	23.3	3.1	42.0	7.8	14.3	43.4	107.5
EBITDA %	0.4%	0.0%	6.6%	15.6%	0.6%	20.2%	4.3%	8.4%	19.3%	13.7%
Operating profit/loss (EBIT)	-41.2	-9.6	0.2	16.5	-34.1	32.3	-1.9	4.4	33.1	67.9
Net financials	-3.2	1.8	0.7	-3.5	-4.2	-9.8	-1.8	-0.5	3.4	-8.7
Profit/loss before tax	-44.4	-7.8	0.8	13.1	-38.3	22.5	-3.7	3.9	36.5	59.2
Profit/loss for the year	-34.6	-6.1	0.6	9.4	-30.7	17.5	-2.9	3.1	29.0	46.7
Segment information
Enterprise revenue	44.5	80.9	103.0	103.0	331.4	154.8	115.7	107.3	149.3	527.1
ProAudio revenue	23.8	40.8	27.0	28.7	120.3	38.6	52.8	33.7	60.9	186.0
Healthcare revenue	13.5	3.5	12.0	17.7	46.7	14.1	11.5	28.9	15.2	69.7
Balance sheet items
Cash and current asset investments	115.5	87.2	100.4	107.7	107.7	91.5	96.3	91.6	137.7	137.7
Total Inventory	107.7	99.8	90.7	78.3	78.3	117.6	112.7	121.7	102.2	102.2
Total assets	470.0	467.1	488.3	491.3	491.3	556.8	547.0	560.5	578.1	578.1
Equity	338.8	325.6	320.8	323.4	323.4	349.2	346.5	350.0	377.1	377.1
Liabilities	131.2	141.5	167.5	167.9	167.9	207.6	200.5	210.5	201.0	201.0
Cash flow items
Cash flow from operations	-18.6	-4.3	26.8	17.6	21.5	22.1	14.5	6.7	53.7	97.0
Paid dividend	0.0	0.0	0.0	0.0	0.0	0.0	0.0	0.0	0.0	0.0
Acquisition of treasury shares	45,236	99,804	53,376	32,418	230,834	0.0	0.0	0.0	0.0	0.0

Outlook & Ambitions

Outlook 2024/25

The anticipated return to “normal” market dynamics did not materialize, and high customer stock levels continue to impact RTX in the short term. The industry faces uncertainty due to macroeconomic and geopolitical factors, resulting in a lack of visibility for RTX and our customers. This uncertainty is reflected in our 2024/25 financial outlook, with expected revenue of DKK 490 to 520 million, EBITDA of DKK 0 to 20 million.

Revenue outlook

The order horizon and industry uncertainty impact the revenue outlook, where RTX has limited visibility beyond six months. The main uncertainty for the year will be the impact of macroeconomic volatility and customer inventory replenishment rate. RTX continues to expand the customer portfolio, in order to diversify the risk and building a more robust portfolio across segments. The revenue expectation for 2024/25 of DKK 490 to 520 million, is based on and subject to the following main assumptions:

• Macroeconomic uncertainty is assumed to be high in the outlook for 2024/25 as is customer demand.
• Customer focus on avoiding inventory, which is reflected in short order horizons.
• No material changes in competitive situation and market landscape.
• RTX revenue driven by a combination of product sales to existing customers and ramp up of new products to both existing and new customers.
• USD/DKK currency development, as the majority of revenue and direct costs are in USD.

Revenue	490 - 520 DKKm
Outlook for 2024/25

Earnings outlook

EBITDA is expected to be impacted by the revenue lev- el combined with focus on capacity costs. The outlook is based on the revenue outlook above, and subject to the same assumptions as the revenue outlook, with the addition of the following assumptions:

• Component and logistic costs are expected to have limited overall impact as the supply situation is normalizing, and we continue to focus on cost optimization.
• Capacity costs are expected to be impacted by inflationary pressures but counterbalanced by cost savings.

Based on the above assumptions, the EBITDA outlook for 2024/25 is DKK 0 - 20 million.

EBITDA	0-20 DKKm
Outlook for 2024/25

FX (USD) sensitivity

Average USD/DKK rate 2023/24	6.86
USD/DKK rate (1 Oct 2024)	6.70
Impact of 5% USD/DKK rate change
on Revenue	DKK +/-24 million
EBITDA	DKK +/- 10 million

Long-term ambition

The long-term potential of RTX remains unchanged, as does our strategic direction. We continue to leverage our wireless expertise to drive revenue as an ODM/ OEM supplier under long-term framework agreements with customers in the B2B Enterprise, ProAudio, and Healthcare segments, while advancing our strategic shift towards a more scalable product- and solu- tion-based business model. Our long-term ambition of reaching total revenue of DKK 1 billion and an EBITDA margin above 16% through growth in all three business segments remains intact. However, we must recognize that achieving these mile- stones in 2025/26, which was the original aspiration, is no longer realistic. The current uncertainty and lack of visibility prevent us from setting a new specific year for achieving the ambition at this stage.

	Actual 2023/24	Outlook 2024/25
Revenue	498	490-520
EBITDA	3	0-20
EBIT	-34	-35 to -15

Governance

Corporate Governance

Risk Management

Capital Structure and Allocation

The RTX Share

Board of Directors and Executive Board

Governance model

RTX’s corporate governance framework is based on a two-tier system in which the Board of Directors and Group Executive Management together form the governing body of RTX but have two distinct roles. The ultimate authority over the company rests with the shareholders at the annual general meeting. Rules and deadlines applying to annual general meetings are stipulated in the Articles of Association of RTX, which are available at www.rtx.dk. The Board of Directors appoints and controls the Executive Board and defines the overall strategy and objectives in close collaboration with Group Executive Management.

Shareholders
	Executive Board
	Chairmanship
	Audit Committee
	Independent Auditor
	Nomination & Remuneration Committee
	Board of Directors

Corporate Governance: Ensuring the active, transparent and accountable management of RTX as well as compliance with applicable legislation, rules and recommendations.# Governance

The Executive Board and Group Executive Management are responsible for the operational and tactical management of the company, for ensuring progress on the outlined strategic direction, for daily risk management and for ensuring compliance with relevant legislation and procedures as well as for submitting reports on performance, strategy and budget suggestions etc. to the Board of Directors. At present, the Executive Board consists of two members and Group Executive Management consists of six members (including the Executive Board).

Composition of Board of Directors

The Board of Directors consists of four to six members, which are elected individually at the annual general meeting for terms of one year and may stand for re-election. The number of board members and the composition of the board, in terms of professional experience and relevant competencies is considered by the Chair and Deputy Chair as well as by the full Board of Directors on an ongoing basis and is considered to be appropriate. The competencies of the members of the Board of Directors cover, among others, general international management as well as business development, sales, operations, technology, R&D and financial management in a variety of industries relevant to RTX. At the beginning of 2023/24, the board consisted of five general assembly elected members and three employee representatives. In January 2024, one shareholder elected board member resigned and two new members were elected at the general assembly, Katja Millard and Mogens Vedel Hestbæk. Pursuant to the Danish Companies Act, three additional board members are elected by the employees for a term of four years with the latest election held in January 2023. The employee representatives serving on the board hold the same rights and obligations as the shareholder-elected members.

Find more information on the Board of Directors and the Executive Management on our website: www.rtx.dk

Read more
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actions, both for RTX’s target market segments and for the enabling functional areas within RTX, based on presentations by Group Executive Management.

Board committees

Audit Committee

The Audit Committee of RTX operates according to its terms of reference approved by the Board of Directors and refers to the Board of Directors. Four Audit Committee meetings are held per year and the committee consists of three members. The main tasks of the Audit Committee are to supervise financial reporting, accounting policies and estimates, internal controls, risk management, overseeing any whistleblower reports, external audit and to recommend to the Board of Directors the approval of financial statements and the appointment of external auditors. During the year, the Audit Committee additionally focused specifically on Sustainability reporting, IT and cyber security and risks, updated policies, election and onboarding of new auditors for the coming financial year as required by regulation. In 2023/24, there have been no incidents reported to RTX’s whistleblower system.

Nomination & Remuneration Committee

The Nomination & Remuneration Committee refers to the Board of Directors. The Nomination and Remuneration Committee consists of three members. The main tasks of the committee include succession planning at the Board of Directors and Group Executive Management levels, suggesting appropriate management remuneration and incentive programs and planning the evaluation process of the Board of Directors.

Recommendations on corporate governance

General, RTX complies with the Danish Recommendations on Corporate Governance. The recommendations applicable for the financial year 2023/24 were issued on 2 December 2020, and it is the first RTX reporting period for which these newest recommendations are applicable.

In 2023/24, RTX complies with all of the 40 recommendations of the Danish Committee on Corporate Governance.

In connection with the annual report, RTX publishes the statutory report on corporate governance, cf. section 107b of the Danish Financial Statements Act. The full statutory report is available at: www.rtx.dk.

During the fall of 2024, The Board of Directors conducted a self-evaluation of the work in the board as well as of the cooperation between the Board of Directors and the Executive Board. The evaluation showed that the board members are considered professional, committed, and eager to offer their knowledge and experiences. The Board has taken steps to add even more value, in the future, by focus on leveraging board seats better by distributing the committee work to more members, revisiting the board composition, and continue securing that the board has the right balance between time spent on strategic issues and operational matters. The Board of Directors follows this up annually with internal evaluations and after each regular board meeting time is set aside for the Board of Directors to have a discussion solely among themselves.

Board meetings

At least four ordinary board meetings are held per year. In 2023/24, six ordinary board meetings were held and six extraordinary board meetings. Extraordinary board meetings are held according to need. In 2023/24, a total of 12 board meetings were held. The attendance of board members at board meetings in 2023/24 was 98% of full attendance at ordinary board meetings and 98% of full attendance at extraordinary board meetings. One of the board meetings is the annual strategy seminar where the Board of Directors has in-depth discussions of and approves the strategic direction and

Board of Directors 2023/24 focus areas

Focus Area	Description
Business and Strategy	• Review, discuss and approve the Company’s strategy plans
	• Monitor and discuss market developments
	• Supplier footprint and optimization
	• Monitor macroeconomic impact (e.g. inflation)
	• Financial performance, reporting and budgets
	• Capital structure and distributions to shareholders
Governance and Remuneration	• Risk management and internal controls
	• Selection of and dialogue with external auditor
	• Evaluating work in the board and in executive management
	• Onboarding new board members
	• Executive remuneration and incentive programs
	• Review, discuss and approve governance policies

---

RTX compliance with Danish recommendations on corporate governance

Complies with recommendation	Does not comply with recommendation
40	0

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RTX Annual Report 2023/24
Governance

→ Our Growth Strategy
→ Global Industry Structure
→ Our Customer Partnerships
→ How we Work
→ Enterprise
→ ProAudio
→ Healthcare
Business & Strategy
Remuneration Report
→
→ 2023/24 Performance
→ Quarterly financial Highlights
Performance
Corporate Governance Report
→ Further reading

Our separate reports on Corporate Governance and Remuneration are available from RTX’s website:

Remuneration

Remuneration of the Board of Directors and the Executive Board is carried out in accordance with the RTX Remuneration Policy as adopted at the Annual General Meeting in 2024. As stated in the Remuneration Policy, the overall objectives of the policy are to attract, motivate and retain qualified members of management; to ensure alignment of interests between management, company and shareholders; and to promote long-term value creation in RTX and support RTX’s business strategy. To align interests for RTX’s shareholders and management, and to meet both short-term and long-term goals, the policy further defines appropriate limits on incentive programs and longer-term share-based remuneration programmes for management. The policy is available at RTX’s website at www.rtx.dk.

Remuneration of the Board of Directors and the Executive Board is reported in the separate RTX Remuneration Report for 2023/24 prepared and published in accordance with section 139b of the Danish Companies Act. The report details remuneration of the Board of Directors and the Executive Board. It also explains the structure and performance criteria of incentive programs. The Remuneration Report is available at RTX’s website at www.rtx.dk. At the Annual General Meeting in 2024, the Remuneration Report for 2022/23 was presented and approved in an advisory vote. For details on the accounting treatment of remuneration for the Board of Directors and the Executive Board see note 2.4 later in this annual report.

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RTX Annual Report 2023/24
Governance

Diversity

It is the objective of RTX to attract and retain highly qualified and motivated employees, and RTX strives to have a good representation of both male and female candidates and employees, even though we operate in an industry with a very high share of male candidates. RTX encourages female and international applicants to apply for vacant positions. RTX has an objective of minimum 40% as the proportion of the under-represented gender (currently women) of the total shareholder-elected members on the Board of Directors by 2026. Beginning of 2023/24, 20% (1 of 5) shareholder-elected members of the Board of Directors was female. At the end of the year the female representation was 17%, as one female had resigned, and two new members were elected, one male and one female.

This section is an extract of RTX’s work with Sustainability. The complete statutory report, which includes RTX’s policy and objectives on diversity, according to the Danish Financial Statements Act sections 99b, can be downloaded from RTX’s website: www.rtx.dk

Data ethics

Statement on data ethics, cf. Section 99d of the Danish Financial Statements Act. During 2021/22, RTX adopted a Data Ethics Policy, which was reviewed in 2023/24 without leading to any changes. The purpose of this new Data Ethics Policy is to describe the principles under which RTX works with ethical use of data and new technology as well as to raise awareness of our data ethical principles. Our Data Ethics Policy is available at RTX’s website at www.rtx.dk.# RTX Annual Report 2023/24

Governance

RTX uses data related to employees, customers, suppliers, and visitors to our website and it includes both personal and non-personal data. Our data ethics principles are based on security, transparency and responsibility. During the year, RTX has upgraded its IT security infrastructure and has updated employees’ understanding of potential cyber security threats in order to strive to maintain a high level of IT security to protect confidential information and personal data handled by RTX against unauthorized use and publication. Also, RTX strives to act responsibly by considering whether any collection and processing of data is warranted and legitimate and ensuring that it does not violate fundamental privacy or other rights. Further, RTX does not sell any data to any third parties. RTX will periodically review and revise our data ethics principles to reflect evolving technologies, regulatory requirements, stakeholder expectations and based on an understanding of the risks and benefits to individuals and society from the use and processing of data.

Beginning 2023/24, the female share of members on the RTX Board of Directors elected by the annual general meeting was 20% (1 of 5). At the end of the year the female representation was 17%, as one female had resigned, and two new members were elected, one male and one female. The target remains to reach 40% by 2026.

Sustainability Report

Read more about our diversity policy and targets in our Sustainability Report.

Risk Management

Identifying, monitoring and mitigating risks are key parts of RTX’s governance model, and the latest years we have seen the emergence of a variety of risks, component scarcity and recovery, as well as macroeconomic and geopolitical instability. RTX operates as an international provider of technological ODM/OEM products and solutions and is therefore exposed to various risks inherent to our business operations. Managing these risks is an integrated part of our management activities. At RTX, risks are defined as “an occurrence caused by external or internal events which hinders us in meeting our objectives”. The risk management approach is based on risk identification and assessment followed by defining mitigating actions and implementing those mitigating actions which are deemed relevant and attractive. Mitigating actions are planned and conducted to decrease the likelihood of a risk occurring and/or to decrease the impact of a risk if occurring.

Group Executive Management is responsible for reviewing the overall risk exposure of RTX on an ongoing basis. Once risks have been identified, assessed and mitigating actions defined, executive management evaluates the risk exposure to ensure that appropriate plans are in place. The Board of Directors is ultimately responsible for risk management, and it has appointed the Audit Committee to supervise the risk profile evaluation on a quarterly basis. Significant risks are reported to the Board of Directors at least on a quarterly basis. During 2023/24, risks stemming from the global component and supply chain challenges as well as from the significant geopolitical and macroeconomic uncertainty have been in particular focus in this process.

RTX takes out statutory insurances as well as the insurances deemed to be relevant in order to eliminate or reduce unwanted and insurable risks. At regular intervals, RTX conducts a review of the insurances and their coverage in cooperation with external advisers. The Group’s insurances are reviewed periodically by the Audit Committee. For an overview of financial risks and RTX’s handling of such refer to note 5.6 to the financial statements in this annual report.

The risk management process

The risk management process at RTX includes the interlinked processes of risk identification, assessment and mitigation managed by Group Executive Management and reported to and supervised by the Board of Directors.

• Identification
• Mitigation
• Reporting
• Assessment

Risks are assessed using a two-dimensional risk matrix – estimating the impact on RTX earnings and “license to operate” and the estimated likelihood of a risk materializing.

	Lower Estimated likelihood	Higher Estimated likelihood
Lower Potential Impact
Higher Potential Impact

Arrows show directional risk movement since the previous financial year

• A Macroeconomy
• B Supply chain
• C Components
• D Customer partnerships
• E Politics and regulations
• F HR and talent
• G Technology
• H IPR
• I IT & Cyber security
• J Climate Change

Macroeconomy

Risk description
Macroeconomic uncertainty and adverse economic conditions with low rates of economic growth may lead to a reduced demand from end users and thereby from RTX’s customers thus impacting the activity level and financial results of RTX. Fluctuations in currency exchange rates – especially USD/DKK exchange rate – impact RTX revenue and operating profits measured in DKK. Given the high solidity and the liquidity position RTX does not have risk related to external providers of interest-bearing debt.

Mitigation
To safeguard against the potential impact of low economic growth rates, RTX has, over the past years, enlarged its customer base – e.g. through further long-term framework agreements – to increase the likelihood of an underlying growth in RTX’s activity level regardless of any lower economic growth. Also, RTX operates in different industrial sectors/segments to reduce the exposure to any one sector. While the strong and enlarged customer relationships through framework agreements create significant opportunities for RTX, we have maintained a cautious approach to our capacity cost base in light of the macroeconomic uncertainty in 2024 (inflation and recession risk). Regarding foreign exchange risk, RTX’s trading and currency policy with customers and suppliers is, to the greatest possible extent, to attempt to match the currencies of its purchase and sales. If deemed appropriate, RTX may enter into transactions for the purpose of reducing net currency exposures. During 2023/24, RTX has continued to hedge part of the future (expected) net inflow of USD to reduce such exposure.

Risk assessment 2023/24
Likelihood: High / Impact: High

During 2023/24, RTX experienced that customers in both Enterprise and ProAudio segment continued to hold high level of inventories, resulting in lower than expected demand. Thus the global uncertainty seems to be shifting from a supply uncertainty to a demand uncertainty. The USD has decreased compared to 2023/24 which has had a negative impact on RTX financials compared to expectations.

Supply chain

Risk description
The Group’s production is handled by suppliers (contract manufacturers), which are located both in Asia and Europe with the majority of sourced volume from Asia. The Group depends on the ability of these suppliers to produce and supply the planned volume at the agreed time and quality, and thus significant fluctuations in revenue and gross profit may arise if some suppliers fail to supply as agreed.

Mitigation
RTX is in ongoing close contact with its suppliers in order to plan and monitor supplies, quality assurance systems and production. To reduce our reliance on any single supplier, RTX operates with more than one supplier where possible, while in other cases it may be necessary to reduce the delivery uncertainty with a buffer inventory. A 12-month rolling forecast is managed by RTX from customers through RTX to suppliers, which increases the ability of suppliers to plan operations in order to meet RTX’s demand. RTX cooperates with major contract manufacturers that operate multiple factories across countries and continents, which means that production can be transferred from one factory to another should one of the sites temporarily be out of operation for a prolonged period.

Risk assessment 2023/24
Likelihood: High / Impact: High

The significant disruptions to the global flow of goods seen in the previous years, have normalized by the beginning of 2023/24. The supply situation with component scarcity in the global electronics industry normalized, but fluctuating demand impact our production partners as well as customers preferences on location of supplier. RTX’s Supply Chain organization has continued to work even closer with its suppliers in 2023/24 to jointly ensure efficient production and on-time quality deliveries to our customers.

Components

Risk description
Component lead times and availability of components (i.e. component suppliers not fulfilling the full demand) may impact revenue, gross profits and gross margins – especially via postponements (and only to a lesser degree cancellations). The issue has historically been pertinent for certain electronics components from time to time.

Mitigation
RTX request a 12-month rolling forecast process from customers, which we use to plan production with RTX’s manufacturing partners. To the extent possible, we hereby mitigate missing supply of components and ensure that components are received on time. When necessary, the RTX Supply Chain organization works closely and directly with suppliers of components (by-passing, but in agreement, with our manufacturing partners) to increase allocations of components. This involves making spot buys to fill short-term gaps while working with suppliers to ensure allocation and prioritization, however much less than previous years, and only when evaluated necessary to ensure availability of key components.

Risk assessment 2023/24
Likelihood: Medium / Impact: Medium

Availability of many electronics components has normalized during 2023/24, and we have seen a significant reduction in component stock towards the end of the year.# RTX Annual Report 2023/24 Governance

Customer partnerships

Politics and regulations

Risk description
A significant part of RTX’s business is based on long-term partnerships with leading international companies in the market segments where RTX operates. The cooperation with these customers is based on long-term framework agreements, and RTX’s products are an integrated part of these customers’ solutions and offerings. The company’s top four customers represent more than 50% of 2023/24 revenue. It would have a considerable impact on RTX’s organizational setup as well as its financial performance, if key customers – for any given reason – face financial challenges, if RTX and a given customer are not able to be successful together or if the market situation were to significantly change.

Risk description
International trade barriers out of protectionism or for other reason could influence the ability of RTX to export products from certain countries to e.g. the US. Further, geo- political disturbances can have an indirect effect on economic growth (see risk section on “Macroeconomy”) or could impact RTX’s ability to utilize supply chains in certain countries. Also, RTX is subject to product safety and increasing compliance and reporting regula- tions. Failure to comply with these may harm RTX’s reputation and license to operate.

Mitigation
Considerable resources have been invested in the technical integration of RTX’s tech- nology and products into the customers’ solutions and replacing RTX would accordingly trigger substantial switching cost for the customers. Also, RTX is expanding the base of significant customers through additional framework agreements as announced over the past years which will reduce RTX’s reliance on indi- vidual customers. In general, RTX’s large customers are large and well-reputed international companies. To further mitigate financial consequences from any possible customer specific occurrenc- es, RTX takes out credit insurance on customers to the extent possible.

Mitigation
RTX is engaging with several internationally oriented suppliers with operations across multiple countries and continents, which provide an agile setup in case of significant trade barriers or geopolitical disturbances. RTX operates in different industrial sectors/segments to reduce the exposure to any one sector. Regarding product safety, RTX’s management system, supplier agreements and compliance frameworks are designed to deal with customer and regulatory requirements. The management system is subject to both internal and external reviews and audits.

Risk assessment 2023/24
* Likelihood: High
* Impact: High

RTX’s largest customers still carry inventory and experience low visibility in future market demand, across the industry. The recovery to a normalized level is still not visible, and thus impacting the focus of key customers. RTX continues with close cooperation with new and existing customers, optimizing and expanding product portfolio.

Risk assessment 2023/24
* Likelihood: High
* Impact: Medium

Regulation and reporting requirements continue to grow, particularly in Europe. The geopolitical instability in the world has increased over the past years and the potential consequences may spill over to other areas or have an impact on the global electronics production, and can thus pose an indirect risk also to RTX.

HR and talent

Risk description
RTX is a knowledge intensive company and to develop innovative products and solutions and to ensure our competitive position, it is essential to attract, develop and retain the right talent. Failure to do so may ultimately hinder RTX’s ability to successfully execute our strategy and thereby reduce our competitiveness.

Mitigation
RTX’s goal is to be an attractive workplace. This is achieved e.g. through attractive work- ing conditions, employee and manager development dialogue, employee satisfaction surveys, social gatherings and incentive programs. RTX maintains close cooperation with leading universities close to RTX knowledge hubs both regarding student assignments, PH.D dissertations and regarding recruiting. RTX monitors employee turnover and retention on an ongoing basis.

Risk assessment 2023/24
* Likelihood: Medium
* Impact: Medium

After a challenging year, where we have seen a higher employee turnover, for several reasons, we begin to see a normalization. RTX recognizes the need to increase focus on employee satisfaction and development in order to retain and attract skilled employees.

Technology

Risk description
A significant part of RTX’s business is based on its unique knowledge within advanced wireless radio systems. Therefore, technological changes may affect future business opportunities for RTX. A revolution of the wireless communication standards and competence platforms, which RTX currently incorporates into its products and solutions, may lead to lost business opportunities, especially longer term.

Mitigation
Through close relationships with leading international customers, RTX has a solid under- standing of the customers’ future product development plans. The close relations enable RTX to predict and react to changes in technologies requested by the customers on an ongoing basis. Via innovation projects, RTX develops the technological competencies that will enable RTX to offer products and solutions based on a wider range of technological opportuni- ties. This reduces the dependence on single technologies. RTX’s corporate technology office works on this continuously and also team up with leading research institutions for specific innovation projects. Further, RTX monitors and impacts technological standards through active participation in highly reputed industry organizations worldwide.

Risk assessment 2023/24
* Likelihood: Low
* Impact: Medium

The CTO Office of RTX scouts emerging technologies and evaluates technologies with potential implications (opportunities or threats) for RTX especially within wireless and audio platforms and protocols.

IPR

Risk description
Operating in a highly IPR protected industry, RTX’s freedom of action may from time to time be limited by patents from third parties. Further, RTX holds and has applied for patents within selected key areas. There may be a risk that RTX inadvertently infringes on third party rights. Further, RTX’s practices for protecting the company’s intellectual property rights may be inadequate so that competitors may develop similar technologies. This can lead to loss of business opportunities for RTX.

Mitigation
The company’s model for development projects includes a review of the project to as- sess if there is a risk that RTX may infringe on or is limited by third party rights. It is also a formal point of our project model that the project is considered for relevant patents. RTX has competences within design, development and manufacturing of wireless solu- tions and combinations of wireless technologies. The number of wireless technologies, that RTX has competences within, are expanded over time to avoid dependency on a single technology. RTX is a member of ETSI (European Telecommunications Standards Institute) and other technology forums. Such memberships ensure that RTX stays up to date on relevant issues in the industry, including e.g. frequency bands, that may affect RTX’s business or infringe on third party rights.

Risk assessment 2023/24
* Likelihood: Low
* Impact: Low

RTX CTO Office has continued its increased focus on screening for potential IPR in- fringements and screening for potential opportunities for taking out relevant patents and the number of patent applications made by RTX is increasing.

IT and cyber security

Risk description
RTX’s business depends to a large and increasing extent on reliable and secure IT systems. Severe breaches of IT security or system outages may have a negative effect on RTX’s knowledge base, reputation and/or competitive position, and thus may cause financial losses, lost business opportunities or lack of ability to meet contractual obliga- tions.

Mitigation
While these risks cannot be fully eradicated, RTX is continuously working to reduce the risks via regular adjustments of technical security controls and guidelines and policies for IT security. This is done centrally from corporate IT rolling out centrally managed solu- tions to reduce the number of applications in use. This allows for central management of platforms, master data and security functions, where possible. Additionally, IT security Board has been established identifying key security matters, ensuring ownership and management focus on the topic. Furthermore, RTX conducts internal employee awareness campaigns regarding IT security. The outsourcing of RTX’s production to a number of different suppliers also in the short- term protects delivery performance in case of shorter duration unavailability of IT service at RTX.

Risk assessment 2023/24
* Likelihood: Medium
* Impact: High

Globally, the number of cyber security attacks continues to be very high and the risk of IT security breaches thus remains significant. RTX has continued to implement IT infra- structure upgrades to increase the resilience of our systems and have mandatory cyber security training for all personnel.

Climate Change

Risk description
The European Sustainability Reporting Standards (ESRS) require companies to disclose their assessment of climate-related risks. For RTX, significant risks and opportunities stem from climate impacts on component and material sourcing for product production.# RTX Annual Report 2023/24

Governance

Capital Structure and Allocation

Maintaining flexibility to invest into growth opportunities, displaying robustness for long-term framework agreements and optimizing return for shareholders.

Capital allocation policy principles

The guiding principle for the policy on capital alloca- tion and structure of RTX is to: (i) maintain sufficient financial flexibility to realize RTX’s strategic objectives, including investments into growth opportunities as well as balance sheet robustness needed for long-term framework agreements, which is needed to support operations. At the same time (ii) ensuring a financial structure maximizing the return for our shareholders. Thereby, any excess capital after the funding of growth opportunities and after ensuring such robustness, should be returned to shareholders.

RTX targets a net liquidity position (total cash funds plus current securities less any bank debt) of DKK 80- 100 million. However, interim deviations to the target cash level can occur depending on specific growth opportunities or other operational or strategic consid- erations.

RTX strives to maintain a reasonable balance between distributions to shareholders via dividends and via share buy-back programs, however modifications to the capi- tal structure will primarily be done via share buy-backs. Depending on the growth opportunities at hand or other operational or strategic considerations, RTX may devi- ate from the above payout ratio in a specific year.

Dividends and Share buy back 2023/24

During 2023/24, RTX decided to launch a share buy back program of DKK 20 million. The program was initiated in November 2023 and completed in August 2024, under Safe Harbour principles.

Distribution to shareholders 2023/24

	2023/24	2022/23	2021/22	2020/21	2019/20
Dividends per share (DKK)	0.00*	0.00	0.00	0.00	2.50
Dividends, total (DKK million)	0.0*	0.0	0.0	0.0	20.7
Pay-out ratio (%)	0.0%*	0.0%	0.0%	0.0%	32.8%
Share buy-back (DKK million)	20.0	0.0	0.0	50.0	40.6

• Based on recommended dividend

Recommendation to Annual General Meeting

In light of the financial results of 2023/24 and in order to proceed with caution in light of the macroeconomic uncertainty, the Board of Directors will recommend to the Annual General Meeting in January 2025 that no dividends be distributed based on the financial year 2023/24 and no share buy back programs will be initiated.

20 DKKm A share buyback program amounting to DKK 20 million was executed during the financial year 2023/24

The RTX Share

Share price development and trading activity 2023/24

Turnover of shares (left)
RTX A/S closing prices (right)
Nasdaq Mid-Cap index (rebased) (right)

		30 Sep. 2024	30 Sep. 2023
Stock Exchange	Nasdaq Copenhagen A/S
ISIN Code	DK0010267129
Index	Mid-Cap (OMXCMCGI)
Restriction in voting rights	None
Share price (DKK per share)		82.6	83.6
Market capitalization (DKK million)		699	713
Average daily turnover (DKK million)		1.1	0.6
Shares issued (no.)		8,467,838	8,467,838
Treasury shares (no.)		489,362	258,528
Earnings per share (DKK)		-3.8	5.7
Price/earnings		-21.8	14.7

The share capital of RTX is comprised of 8,467,838 shares.

Financial Calendar

• 31 January 2025: Annual General Meeting
  • Deadline to submit proposals for items on the agenda is 19 December 2024
• 31 January 2025: Interim report Q1 2024/25
• 8 May 2025: Interim report Q2 2024/25
• 28 August 2025: Interim report Q3 2024/25
• 27 November 2025: Annual report 2024/25

Shareholder composition

At 30 September 2024, RTX had more than 4,700 shareholders registered by name, including custodian banks, constituting approximately 85% of the compa- ny’s share capital. According to registered addresses, the majority of shareholders are based in Denmark, but with a sizeable share of shareholders being based internationally.

Approximately 59% of the share capital was held or managed by the 25 largest shareholders registered by name.

In accordance with section 55 of the Danish Compa- nies Act, the following investors have reported holdings of more than 5% of RTX’s share capital:

• Jens Hansen: 8.0%
• Fundamental Invest Stock Pick and related Fundamental Invest Stock Pick II Acc: 7.8%
• ATP: 6.8%
• Jens Toftgaard Petersen: 5.3%

Treasury shares

In a share buy back program, RTX acquired 230,834 shares, according to the Boards authorization for RTX to acquire treasury shares for a nominal value of up to DKK 4,233,919 (equivalent to approximately 10% of the Company’s share capital at the time of the authorization) during the period until 25 January 2028. The Company’s holding of treasury shares after the acquisition must not exceed 10% of the share capital from time to time, while the acquisition price must not deviate by more than 10% from the share price at Nas- daq Copenhagen at the time of the acquisition.

At the General Meeting on 25th of January 2024, the Board of Directors were authorized to increase the company’s share capital one or more times with a maximum of nominally DKK 4,233,919 shares without pre-emptive rights for the Company’s existing share- holders and the Articles of Association were updated accordingly. The authorization is valid until 25 January 2028.

Investor relations

RTX aims to maintain an open dialogue with investors and analysts about the company’s business model, strategic priorities and financial performance. RTX further aims to ensure equal, timely and adequate information for all investors by publishing company an- nouncements in Danish and English on the RTX website and by release to Nasdaq Copenhagen.

In addition to financial reports and other company announcements, RTX’s Executive Board uses investor meetings, road- shows and conference calls as the primary channels when communicating with stakeholders. RTX’s website provides information about analyst cov- erage and access to investor-related materials etc.

Share capital and treasury shares

As of 30 September 2024, RTX’s share capital had a nominal value of DKK 42,339,190 comprising 8,467,838 shares each with a nominal value of DKK 5. All shares carry equal rights and they are not divided into classes.

RTX holds a total of 489,362 treasury shares corresponding to 5.8 % of the share capital. The treasury shares are held to fulfil obligations arising from share-based incentive programs to management and key employees as well as to adjust the capital structure from time to time.

Shareholder composition

	30 September 2024
Danish Shareholders	57%
International Shareholders	22%
RTX A/S (treasury shares)	6%
Shareholders not registered by name	15%

Board of Directors and Executive Board

Board of Directors

• Peter Thostrup Chair
• Directorships and other management positions: Chair of the boards of: Power Stow A/S, Transmedica A/S and Kongsberg Automotive ASA; Member of the board of directors of A/S Th. Wessel & Vett, Magasin du Nord
  • Competencies: Finance, corporate governance in listed companies, management experience from international technology and consumer firms.
• Henrik Schimmell Deputy Chair
  • Directorships and other management positions: Chair of the board of directors of LRE Medical.
  • Competencies: General and solid board experience.
• Jesper Mailind Board member
  • Directorships and other management positions: Chair of the board of directors of Aidian Oy; Member of the boards of directors of Etac AB and Contour Design A/S
  • Competencies: General management within medical device/diagnostics and hearing instrument industries.
• Lars Christian Tofft Board member
  • Directorships and other management positions: CEO BlueMind Advisory
  • Competencies: Competencies within strategic planning, lean business operations & M&A.
• Katja Millard Board member
  • Directorships and other management positions: Chair of the Board of Sternula A/S
  • Competencies: General management within medical device/diagnostics and hearing instrument industries.
• Mogens Vedel Hestbæk Board member
  • Directorships and other management positions: Vice President, Critical Communica- tion Solution, Motorola Group
  • Competencies: Competencies within strategic planning, lean business operations & M&A.# RTX Annual Report 2023/24 Governance

General management and transition management from global industries including life science, medtech, diagnostics, technology and manufacturing. General management with speciality in sales & marketing, transformation and digitalisation. International executive experience from global technology leaders and expertise on wireless communications and space tech. International management background – software and hardware with deep knowledge of the electronics industry. Experience covers sales, marketing, innovation and product development. Finance, corporate governance in listed companies. Group CFO and executive management experience form listed companies.

Education
M.Sc. Economics and Finance, 1987. MBA, 1986. Ph.D. from Danish Technical University, 1992. M.Sc. in Electrical Engineering, 1986. Graduate Diploma in Business Administration, 1982. MBA, 1984. M.Sc. in Business Administration and Business Law, 1990. Executive education at INSEAD, Colombia University and Boston University. CBA from AVT Business School 2007. International Trade and Marketing 2002. M. Sc. Economics and finance 1998.

Committees
Audit Committee, Chair
Nomination & Remuneration Committee
Audit Committee, Nomination & Remuneration Committee
Nomination & Remuneration Committee Chair
Audit Committee.

Meeting attendance
Ordinary: 6 of 6, Extraordinary: 6 of 6
Ordinary: 6 of 6, Extraordinary: 6 of 6
Ordinary: 6 of 6, Extraordinary: 6 of 6
Ordinary: 5 of 6, Extraordinary: 6 of 6
Ordinary: 6 of 6, Extraordinary: 5 of 6
Ordinary: 6 of 6, Extraordinary: 6 of 6

Elected period
Since 2009
Since 2019
2009-2009 and since 2013
Since 2017
Since 2024
Since 2024

Considered independent
No (due to duration of elected term)
Yes
Yes
Yes
Yes
Yes

Nationality
Danish
Danish
Danish
Danish
Danish
Danish

Year of birth & gender
1960, male
1962, male
1956, male
1966, male
1978, female
1972, male

RTX Annual Report 2023/24 Governance

Board members elected by the employees

Title	Project Engineer, RTX A/S	Team Lead, RTX A/S	Senior Project Manager, RTX A/S	President and CEO	CFO
Executive Board
Camilla Sembach Munk	Board member
Kevin Harritsø		Board member
Kurt Heick Rasmussen			Board member
Peter Røpke				CEO
					CFO
Education	M.Sc. in Wireless Communications Systems, 2016.	M.Sc. in Electrical Engineering 2009.	B.Sc. in Engineering, 2000.	Graduate Diploma in Business Administration, 2009.	M.Sc. in Electrical Engineering, 1992. BA in Finance & Accounting, 2000. Graduate Diploma in Accounting, 2005.
Directorships	none	none	none	none	Chair of the boards of directors of Scandinavian Medical Solutions A/S;
Meeting attendance	Ordinary: 6 of 6, Extraordinary: 6 of 6	Ordinary: 6 of 6, Extraordinary: 6 of 6	Ordinary: 6 of 6, Extraordinary: 6 of 6	Ordinary: 5 of 6, Extraordinary: 6 of 6	Ordinary: 6 of 6, Extraordinary: 5 of 6
Elected/appointed period	Since 2023	Since 2019	Since 2015	Since 2016	Since 2023
Term of office expires	2027	2027	2027	2027	2027
Nationality	Danish	Danish	Danish	Danish	Danish
Year of birth and gender	1989, female	1984, male	1974, male	1966, male	1975, female

50 RTX Annual Report 2023/24 Governance

→ Group and Parent Financial Statements → Notes → Statements

Financial Statements 2023/24

MÅ IKKE SLETTET

Group and Parent Financial Statements

52 Financial Statements RTX Annual Report 2023/24

Contents

• Group and Parent Financial Statements
  • Income Statement 54
  • Statement of Comprehensive Income 54
  • Balance Sheet 30 September 55
  • Equity Statement for the Group 56
  • Equity Statement for the Parent 57
  • Cash Flow Statement 58
• Notes 59
  • Section 1 Basis of Preparation
    • 1.1 Basis of preparation and changes in accounting principles 59
    • 1.2 Uncertainties, estimates and judgements 60
  • Section 2 Results for the Year
    • 2.1 Segment information 62
    • 2.2 Revenue 63
    • 2.3 Cost of sales 64
    • 2.4 Staff costs and remuneration 65
    • 2.5 Development costs 69
    • 2.6 Fees to auditors elected at the annual general meeting 69
    • 2.7 Financial income and expenses 70
    • 2.8 Derivatives 70
    • 2.9 Income taxes 71
  • Section 3 Invested Capital
    • 3.1 Intangible assets 73
    • 3.2 Leases 75
    • 3.3 Tangible assets 77
    • 3.4 Investments in subsidiaries 79
    • 3.5 Deposits 80
    • 3.6 Prepaid expenses 80
  • Section 4 Working Capital
    • 4.1 Inventories 81
    • 4.2 Trade receivables 81
    • 4.3 Contract development projects in progress 83
    • 4.4 Provisions 84
    • 4.5 Deferred revenue 85
    • 4.6 Other payables 85
  • Section 5 Capital Structure and Financing
    • 5.1 Current asset investments 86
    • 5.2 Share capital 87
    • 5.3 Treasury shares 88
    • 5.4 Earnings per share 88
    • 5.5 Dividend 88
    • 5.6 Financial risks and financial instruments 89
  • Section 6 Other Disclosure Requirements
    • 6.1 Contingent liabilities, collateral and contractual obligations 94
    • 6.2 Other items with no effects on cash flow 95
    • 6.3 Related parties 95
    • 6.4 Events after the balance sheet date 95
    • 6.5 Accounting principles applied 96
• Statements
  • Management’s Statement 99
  • Independent Auditor’s Report 100

53 Financial Statements RTX Annual Report 2023/24

Income Statement

Group Parent
Amounts in DKK '000	Note	2023/24	2022/23	2023/24
Revenue	2.1 - 2.2	498,340	782,777	498,340
Value of own work capitalized	2.5	19,937	13,525	19,937
Cost of sales	2.3	-265,430	-424,346	-265,430
Other external expenses	2.5 - 2.6	-71,063	-72,419	-110,979
Staff costs	2.4 - 2.5	-178,667	-192,013	-143,873
Operating profit/loss before depreciation and amortization (EBITDA)		3,117	107,524	-2,005
Depreciation, amortization and impairment	3.1 - 3.3	-37,219	-39,628	-35,220
Operating profit/loss (EBIT)		-34,102	67,896	-37,225
Financial income	2.7	6,434	3,840	6,412
Financial expenses	2.7	-10,633	-12,569	-12,841
Profit/loss before tax		-38,301	59,167	-43,654
Tax on profit/loss	2.9	7,616	-12,452	8,235
Profit/loss for the year		-30,685	46,715	-35,419
Earnings per share
Earnings per share (DKK)	5.4	-3.8	5.7
Earnings per share, diluted (DKK)	5.4	-3.8	5.7
Attributable to:
Shareholders of the parent		-30,685	46,715	-30,685

Statement of Comprehensive Income

Group Parent	Amounts in DKK '000	Note	2023/24	2022/23	2023/24	2022/23
Profit/loss for the year			-30,685	46,715	-35,419	43,151
Items that can be reclassified subsequently to the income statement
Exchange rate adjustments of foreign subsidiaries			-2,076	-3,289	-	-
Fair value adjustment relating to hedging instruments			71	1,852	71	1,852
Tax on hedging instruments			-16	-407	-16	-407
Fair value of hedging instruments reclassified to the income statement			222	-27	222	-27
Tax on hedging instruments reclassified			-49	6	-49	6
Other comprehensive income, net of tax			-1,848	-1,865	228	1,424
Comprehensive income for the year			-32,533	44,850	-35,191	44,575
Attributable to:
Shareholders of the parent			-32,533	44,850	-32,533	44,850

54 Financial Statements RTX Annual Report 2023/24

Balance Sheet 30 September

Group Parent	Amounts in DKK '000	Note	2023/24	2022/23	2023/24	2022/23
Assets
Own completed development projects		3.1	8,686	27,356	8,686	27,356
Own development projects in progress		3.1	63,132	19,714	63,132	19,714
Software		3.1	668	1,015	668	1,015
Goodwill		3.1	7,797	7,797	-	-
Intangible assets			80,283	55,882	72,486	48,085
Right-of-use assets (lease assets)		3.2	49,342	51,155	44,156	49,152
Plant and machinery		3.3	13,638	20,285	13,638	20,285
Other fixtures, tools and equipment		3.3	2,853	4,165	2,740	3,926
Leasehold improvements		3.3	9,235	10,665	9,235	10,665
Tangible assets			75,068	86,270	69,769	84,028
Investments in subsidiaries		3.4	-	-	39,350	39,206
Deposits		3.5	6,605	6,757	5,925	5,925
Deferred tax assets		2.9	5,435	2,161	3,375	-
Other non-current assets			12,040	8,918	48,650	45,131
Total non-current assets			167,391	151,070	190,905	177,244
Inventories		4.1	78,271	102,167	78,271	102,167
Trade receivables		4.2	123,595	168,343	123,595	168,343
Contract development projects in progress		4.3	3,681	4,819	3,681	4,819
Income taxes		2.9	298	-	241	-
Other receivables			4,049	8,464	3,445	7,931
Prepaid expenses		3.6	6,298	5,526	6,027	4,997
Receivables		5.6	137,921	187,152	136,989	186,090
Current asset investments in the trading portfolio		5.1	33,698	31,029	33,698	31,029
Current asset investments		5.1	33,698	31,029	33,698	31,029
Cash at bank and in hand			73,987	106,671	70,230	102,690
Total current assets			323,877	427,019	319,188	421,976
Total assets			491,268	578,089	510,093	599,220
Equity and liabilities
Share capital		5.2	42,339	42,339	42,339	42,339
Share premium account			170,439	170,439	170,439	170,439
Currency adjustments			6,775	8,851	-	-
Cash flow hedging			-65	-293	-65	-293
Reserve related to development costs			-	-	56,018	36,715
Retained earnings			103,931	155,769	39,821	115,694
Equity			323,419	377,105	308,552	364,894
Lease liabilities		5.6	48,167	49,517	44,641	49,517
Deferred tax liabilities		2.9	-	6,154	-	6,154
Provisions		4.4	969	1,389	969	1,389
Deferred revenue		4.5	21,935	-	21,935	-
Other payables		4.6	2,775	724	-	724
Non-current liabilities			73,846	57,784	67,545	57,784
Lease liabilities		5.6	7,041	6,896	5,144	4,777
Prepayments received from customers			8,823	16,113	8,823	16,113
Trade payables			57,402	57,599	57,179	57,307
Contract development projects in progress		4.3	3,370	3,817	3,370	3,817
Payables to subsidiaries			-	-	45,740	44,553
Income taxes		2.9	98	17,779	-	17,566
Provisions		4.4	1,110	2,716	1,110	2,716
Other payables		2.8, 4.6	16,159	38,280	12,630	29,693
Current liabilities			94,003	143,200	133,996	176,542
Total liabilities			167,849	200,984	201,541	234,326
Total equity and liabilities			491,268	578,089	510,093	599,220

55 Financial Statements RTX Annual Report 2023/24

Equity Statement for the Group

Amounts in DKK ‘000	Share capital	Share premium	Currency adjust- ments	Cash flow hedging	Retained earnings	Total Equity
Equity at 1 October 2022	42,339	170,439	12,140	-1,717	108,439	331,640
Profit/loss for the year	-	-	-	-	46,715	46,715
Exchange rate adj.	-	-	-	-
## RTX Annual Report 2023/24

Equity Statement for the Group

Amounts in DKK ‘000

Share capital	Share premium	Currency adjust- ments	Cash flow hedging	Retained earnings	Total
Equity at 1 October 2023	42,339	170,439	8,851	-293	155,769
Profit/loss for the year	-	-	-	-	-30,685
Exchange rate adj. of foreign subsidiaries	-	-	-2,076	-	-
Fair value adjustment relating to hedging instruments	-	-	-	71	-
Tax on hedging instruments	-	-	-	-16	-
Fair value of hedging instruments reclassified to the income statement	-	-	-	222	-
Tax on hedging instruments reclassified	-	-	-	-49	-
Other comprehensive income, net of tax	-	-	-2,076	228	-
Comprehensive income for the year	-	-	-2,076	228	-30,685
Share-based remuneration	-	-	-	-	-1,063
Current tax on equity transactions	-	-	-	-	-
Deferred tax on equity transactions	-	-	-	-	100
Acquisitions of treasury shares	-	-	-	-	-20,190
Other transactions	-	-	-	-	-21,153
Equity at 30 September 2024	42,339	170,439	6,775	-65	103,931

Equity Statement for the Parent

Amounts in DKK ‘000

Share capital	Share premium	Cash flow hedging	Reserve related to deve- lopment costs (1)	Retained earnings	Total
Equity at 1 October 2023	42,339	170,439	-293	36,715	115,694
Profit/loss for the year	-	-	-	-	-35,419
Fair value adjustment relating to hedging instruments	-	-	71	-	-
Tax on hedging instruments	-	-	-16	-	-
Fair value of hedging instruments reclassified to the income statement	-	-	222	-	-
Tax on hedging instruments reclassified	-	-	-49	-	-
Other comprehensive income, net of tax	-	-	228	-	-
Comprehensive income for the year	-	-	228	-	-35,419
Share-based remuneration	-	-	-	-	-1,063
Current tax on equity transactions	-	-	-	-	-
Deferred tax on equity transactions	-	-	-	-	100
Annulment of treasury shares	-	-	-	-	-
Acquisition of treasury shares	-	-	-	-	-20,188
Development costs, net of tax	-	-	-	19,303	-19,303
Other transactions	-	-	-	19,303	-40,454
Equity at 30 September 2024	42,339	170,439	-65	56,018	39,821

(1) In accordance with the Danish Financial Statements Act a reserve equivalent to the capitalized development costs net of tax is recognized in equity. The reserve is reduced as the capitalized development costs are depreciated.

Amounts in DKK ‘000

Share capital	Share premium	Cash flow hedging	Reserve related to deve- lopment costs (1)	Retained earnings	Total
Equity at 1 October 2022	42,339	170,439	-1,717	43,391	65,239
Profit/loss for the year	-	-	-	-	43,151
Fair value adjustment relating to hedging instruments	-	-	1,852	-	-
Tax on hedging instruments	-	-	-407	-	-
Fair value of hedging instruments reclassified to the income statement	-	-	-27	-	-
Tax on hedging instruments reclassified	-	-	6	-	-
Other comprehensive income, net of tax	-	-	1,424	-	-
Comprehensive income for the year	-	-	1,424	-	44,575
Share-based remuneration	-	-	-	-	689
Current tax on equity transactions	-	-	-	-	642
Deferred tax on equity transactions	-	-	-	-	-703
Annulment of treasury shares	-	-	-	-	-
Development costs, net of tax	-	-	-	-6,676	6,676
Other transactions	-	-	-	-6,676	7,304
Equity at 30 September 2023	42,339	170,439	-293	36,715	115,694

(1) In accordance with the Danish Financial Statements Act a reserve equivalent to the capitalized development costs net of tax is recognized in equity. The reserve is reduced as the capitalized development costs are depreciated.

Cash Flow Statement

Group

Amounts in DKK '000

Note	2023/24	2022/23
Operating profit/loss (EBIT)	-34,102	67,896
Reversal of items with no effects on cash flow
Depreciation, amortization and impairment	37,219	39,628
Other items with no effects on cash flow	6.2	813
Change in working capital
Change in inventories	21,276	8,243
Change in receivables	50,009	35,891
Change in trade payables, etc.	-28,004	-31,410
Financial income received	3,803	2,991
Financial expenses paid	-9,758	-12,944
Income taxes paid	2.9	-19,756
Cash flow from operating activities	21,500	96,992
Investments in own development projects	-21,808	-15,442
Acquisition of intangible assets	-	-1,040
Acquisition of property, plant and equipment	-1,361	-10,236
Deposits on leaseholds	152	60
Acquisition / sale of current asset investments in the trading portfolio, net	-38	-97
Dividends from subsidiaries	-	-
Sale of tangible assets	533	49
Cash flow from investment activities	-22,522	-26,706

Parent

Amounts in DKK '000

Note	2023/24	2022/23
Operating profit/loss (EBIT)	-37,225	64,631
Reversal of items with no effects on cash flow
Depreciation, amortization and impairment	35,220	36,680
Other items with no effects on cash flow	6.2	2,804
Change in working capital
Change in inventories	21,276	8,243
Change in receivables	49,732	35,264
Change in trade payables, etc.	-24,465	-32,220
Financial income received	3,781	2,983
Financial expenses paid	-12,051	-13,840
Income taxes paid	2.9	-19,001
Cash flow from operating activities	20,071	92,169
Investments in own development projects	-21,808	-15,442
Acquisition of intangible assets	-	-1,040
Acquisition of property, plant and equipment	-1,361	-10,045
Deposits on leaseholds	-	-2
Acquisition / sale of current asset investments in the trading portfolio, net	-38	-946
Dividends from subsidiaries	-	937
Sale of tangible assets	-	49
Cash flow from investment activities	-23,207	-26,489

Group

Amounts in DKK '000

Note	2023/24	2022/23
Repayment of lease liabilities	5.6	-7,115
Acquisition of treasury shares	5.3	-20,190
Paid dividend	5.5	-
Cash flow from financing activities	-27,305	-7,822
Increase/decrease in cash and cash equivalents	-28,327	62,464
Exchange rate adjustments on cash	-4,357	482
Cash and cash equivalents at 1 October	106,671	43,725
Cash and cash equivalents at 30 September	73,987	106,671

Parent

Amounts in DKK '000

Note	2023/24	2022/23
Repayment of lease liabilities	5.6	-4,776
Acquisition of treasury shares	5.3	-20,190
Paid dividend	5.5	-
Cash flow from financing activities	-24,966	-4,539
Increase/decrease in cash and cash equivalents	-28,102	61,141
Exchange rate adjustments on cash	-4,358	495
Cash and cash equivalents at 1 October	102,690	41,054
Cash and cash equivalents at 30 September	70,230	102,690

Cash and cash equivalents at 30 September are composed as follows:

	Group		Parent
	2023/24	2022/23	2023/24	2022/23
Cash at bank and in hand	73,987	106,671	70,230	102,690
Cash and cash equivalents at 30 September	73,987	106,671	70,230	102,690

Section 1 Basis of Preparation

NOTES

1.1 Basis of preparation and changes in accounting principles

RTX A/S is a Danish public limited company. The annual report of RTX for 2023/24, including both the consolidated financial statements and the Parent financial statements, is presented in accordance with International Financial Reporting Standards (IFRS) as adopted by the EU and additional Danish disclosure requirements for annual reports of listed companies, with reference to the disclosure requirements of listed companies from Nasdaq Copenhagen A/S and the Danish Executive Order on IFRS Adoption issued in accordance with the Danish Financial Statements Act. The consolidated financial statements and the separate financial statements are presented in DKK, which is the presentation currency for the Group’s activities and the functional currency for the Parent Company. The annual report is based on historical cost prices, except items where IFRS require measurement at fair value. Except for the implementation of new and amended standards as described below, the accounting policies have been applied consistently in the preparation of the consolidated financial statements for all the years presented. The Board of Directors considered and approved the 2023/24 Annual Report of RTX on 30 November 2024, and it will be submitted to the shareholders of RTX A/S for approval at the Annual General Meeting on 24 January 2025.

Group financial statement

The consolidated financial statement includes the Parent Company, RTX A/S, and the entities (subsidiaries) controlled by the Parent. The Parent Company is considered to have control when it directly or indirectly holds more than 50% of the voting rights or otherwise controls or actually exercises control. RTX A/S and its subsidiaries are collectively referred to as the Group.

Consolidation principles

The consolidated financial statements are prepared on the basis of financial statements of the Parent Company and its subsidiaries by combining accounting items of a uniform nature, with subsequent elimination of intercompany income and expenses, shareholdings, intercompany balances, dividends as well as unrealized profit and losses on transactions between the consolidated entities in the Group. The accounts used for consolidation are prepared in accordance with the Group’s accounting principles.

Acquisitions of subsidiaries

On acquisition of subsidiaries the acquisition method is applied whereby the acquired identifiable assets, liabilities and contingent liabilities are recognized and measured at fair value. Newly acquired subsidiaries are consolidated from the date of acquisition. The acquisition date is the date on which control of the subsidiary is effectively transferred. Sold or liquidated subsidiaries are recognized in income until the sale or liquidation. The date of sale is the date on which control of the subsidiary is effectively transferred to a third party. Transaction costs are recognized as operating costs as they incur.

Foreign currency

The financial statement items for each of the Group’s subsidiaries are measured in the currency used in the country of which the subsidiary operates, while the functional currency of the Parent Company is Danish kroner (DKK). The consolidated financial statement of the Group is presented in Danish kroner (DKK). Transactions in currencies different of the functional currency in the Parent Company (DKK), are translated into the functional currency at the exchange rate of the transaction date.

1.2 Uncertainties and estimates

Financial Statements
RTX Annual Report 2023/24
59

60

Notes# Monetary items in foreign currencies that have not been settled at the balance sheet date are translated at the closing rate. Exchange rate differences between the transaction date and the date of payment, the balance sheet date respectively, are recognized in the income statement as financial items. On recognition in the consolidated financial statements of entities that report in a functional currency other than Danish kroner (DKK), income statements are translated at average exchange rates for the months. Balance sheet items are translated at the closing exchange rates. Goodwill is considered to belong to the acquired entity and translated at the closing rate at the balance sheet date. Exchange rate differences between foreign subsidiaries’ balance sheet items and income statement items are recognized in other comprehensive income. Similarly, exchange rate differences arising as a result of changes made directly in the foreign subsidiaries’ equity are also recognized in other comprehensive income. Other foreign exchange rate gains and losses are recognized in the income statement under financial items.

The effect of amendments to existing standards

IASB has published a number of amendments to existing standards and interpretations in effect for the financial year 2023/24. None of the amended accounting standards and interpretations have had significant impact on recognition, measurement or disclosure in the consolidated financial statements of 2023/24.

New accounting standards not yet adopted

New and revised accounting standards and interpretations issued by IASB in effect for fiscal years commencing on 1 January 2024 or later have not been incorporated in the financial statements. None of the new standards or interpretations are expected to have a significant impact on the financial statements of RTX.

1.2 Uncertainties, estimates and judgements

The Group’s accounting policy described in the following notes requires that Management makes assessments, judgements and estimates and outlines the assumptions for the recognition and measurement.

Judgements in applying accounting policies

In the application of the accounting policies the following management judgements are highlighted as having the most significant effect on the amounts recognised in the financial statements:

Recognition of revenue: assessment of when control is transferred to the customer

RTX collaborates closely with key customers to develop customized products tailored to their specific needs and requirements. Revenue from these products is recognized in accordance with IFRS 15, based on the agreed terms and conditions defined in each contract. This means that production of products is based on purchase orders from customers and revenue is recognized when control of the products is transferred to the customer, which typically aligns with the delivery of goods.

In respect of a specific vendor managed inventory agreement with one customer, control over the products is judged to be transferred at the point of delivery to a distribution hub, despite this occurring before the legal transfer of ownership rights. Control is deemed to have passed to the customer at the point of deliver to the distribution hub because the customer cannot reject the products once they arrive at the distribution hub, the distribution hub is leased by the customer, and the customer accepts to insure the products while in storage at the distribution hub.

Presentation of deferred revenue

Deferred revenue is related to a strategic collaboration with a large global Healthcare partner to develop new product systems. The new product systems are expected to generate future revenue for both RTX and the partner. The agreement provides RTX with consideration from the partner for performing the development work and equal consideration to the partner from RTX for the use of the partner’s Intelletual Property. Since these two amounts are equal and arise at the same time, they are deemed simultaneously settled without the actual transfer of cash. Based on judgement, management has deemed it appropriate for RTX both to capitalize the consideration for use of the partner’s Intellectual Property as part of the development project, and recognize deferred revenue (DKK 21.9 million as capitalized in 2023/24) for the consideration effectively received from the partner as a contribution to the development work which shall ultimately result in RTX obtaining an asset from which it will derive economic benefits in the future. Both the deferred revenue and the capitalized payments for use of the partner’s Intellectual

Property will be amortized to the income statement over the expected useful life of the developed development project.

Determination of lease term

Lease liabilities on buildings of DKK 48.9 million, primarily consists of rental of office space in Denmark under a contract commitment until 2033, with an option to extend it for 10 years. Management have included the contractually committed period in the determination of the lease term, as it has been concluded that RTX is not reasonably certain to exercise the extension option.

Material estimates

Several financial statement items cannot be measured with certainty but can only be estimated. Such estimates comprise assessments made on the basis of the latest information available at the time of the financial reporting. The estimates and assumptions are evaluated on an ongoing basis. Changes to the accounting estimates are included in the financial period in which the changes take place, and in future financial periods in the event that the changes have effect both in the actual period and future financial periods.

In relation to the practical application of the accounting policies described, Management performs material accounting estimates and assessments which may have a significant impact on the annual report’s assets and liabilities at the balance sheet date. Management bases its estimates on historical experiences as well as assumptions which are assessed as being reasonable under the given circumstances. The result thereof forms the basis for the reported carrying amounts of assets and liabilities as well as the reported income and expenses which are not directly disclosed in other documentation. The realized results may deviate from these estimates recognized at the balance sheet date.

The following accounting estimates are likely to be significant for the Group and the Parent Company’s financial report:

Recognition of contract development projects: estimating the percentage of completion

Contracts with customer financed development giving the customers full or partial exclusivity for the outcome are classified as development projects with customer financing being recognized in line with the finalization for the project. The percentage of completion method is the basis for the ongoing recognition of revenue in the Company’s use of the production method for contracts. Management estimates the percentage of completion using the ratio between the Company’s used resources (primarily internal engineering/development time and secondarily any external costs) compared to latest total estimate of required resources. The percentage of completion is estimated on an ongoing basis by the responsible employees, and Management carefully follows the development and makes judgements to adjusts the estimates if deemed necessary.

The revenue from contract development projects in progress at others’ expense amounts to DKK 19.6 million in 2023/24 (2022/23: DKK 52.4 million).

Capitalized (own) development projects

Development costs are generally recognized as expenses in the income statement when incurred. In cases where it is likely that the development projects financed by RTX will be marketed in the form of new products with likely revenue over time, and where development projects are clearly defined (including establishment of technical and commercial project plans and the availability of adequate technical, financial and other resources, the existence of a market for the intangible asset and the ability to reliably measure the expenditure attributable to the development), the development costs are capitalized and recognized as an asset.

The product’s lifetime is estimated when development costs are capitalized. Management has assessed that the main revenue lifetime of a typical RTX product is three years, which is therefore the typical amortization period. Based on the estimations and assessments, Management makes an estimate on the capitalization. In the balance sheet the development projects amount to DKK 71.8 million as at 30 September 2024 (DKK 47.1 million as at 30 September 2023).

---

Section 2 Results for the Year

NOTES

• 2.1 Segment information

• 2.2 Revenue

• 2.3 Cost of sales

• 2.4 Staff costs and remuneration

• 2.5 Development costs

• 2.6 Fees to auditors elected at the annual general meeting

• 2.7 Financial income and expenses

• 2.8 Derivatives

• 2.9 Income taxes

2.1 Segment information

In accordance with internal reporting, RTX reports on the three target market segments; Enterprise, ProAudio and Healthcare. Costs are reported by allocating costs directly attributable to the three reportable market segments whereas common functions costs which cannot be allocated directly to a segment (primarily other external expenses, staff costs and depreciations related to IT, finance, overall management, joint facilities, joint technology projects, and supply chain management) are allocated based on allocation keys related to relative revenue split in accordance with internal reporting.# Financial Statements

2.1 Segment information (continued)

The full allocation to segments is implemented during 2023/24 and comparative figures for 2022/23 are presented below. For a presentation of the events within the segments in the financial year and the development compared to 2022/23, please refer to the Management Review. Information relating to the Group’s segments:

Amounts in DKK ‘000

	Enterprise	ProAudio	Healthcare	Group
2023/24
Revenue	331,395	120,273	46,672	498,340
EBITDA	-6,396	5,327	4,186	3,117
2022/23
Revenue	527,078	186,058	69,642	782,777
EBITDA	64,740	14,224	28,561	107,524

62 Financial Statements RTX Annual Report 2023/24

Management comments

In the financial year 2023/24, two customers in Enterprise each represent a revenue higher than 10% of Group revenue. The largest customer in 2023/24 represents 12.8% (2022/23: 22.0%) of revenue, the second largest 2023/24 customer represents 10.7% (2022/23: 14.2%).

The Group’s revenue from customers is specified below.

Amounts in DKK ‘000

	2023/24	2022/23	2023/24	2022/23
Group			Parent
Denmark	57,238	12,370	57,238	12,370
France	66,327	116,908	66,327	116,908
Germany	59,669	86,215	59,669	86,215
Great Britain	50,030	34,811	50,030	34,811
Other Europe	50,819	64,134	50,819	64,134
USA	115,466	261,330	115,466	261,330
Hong Kong	18,664	93,546	18,664	93,546
Other Asia and Pacific	79,129	110,413	79,129	110,413
Other	998	3,050	998	3,050
Total	498,340	782,777	498,340	782,777

Revenue distributed to geographic area according to the geographical location of the customer entity being invoiced. As posted in the balance sheet, all significant assets in the Group are owned by the Parent Company in Denmark and the majority hereof is located in Denmark.

2.2 Revenue Accounting policies

Revenue comprises sale of products, development projects and royalties etc. attributable to the fiscal year. Revenue is calculated net of VAT, duties, etc. collected on behalf of a third party. Revenue from sale of products is recognized at the point in time when transfer of control to the customer has taken place. Revenue from development projects at the expense of customers and services are recognized over time as the projects are performed according to the percentage of completion method and as agreed services are delivered. Usually, the percentage of completion is estimated as the ratio between the company’s used resources compared to latest total estimate of required resources. Contract costs are expensed when incurred. The transaction price of a development contract is measured at the expected consideration the Group will be entitled to and allocated to the performance obligations of the contract. If the outcome of a development project in progress cannot be estimated reliably, revenue is recognized equivalent to the incurred project costs in the period to the extent that it is probable that these costs will be recovered. Royalty and license fees are recognized as revenue in the period they concern. If the income depends on future events including the customers’ sale of the products containing the technology developed by RTX, the royalty is recognized in the income statement after this event. If an arrangement contains multiple deliverables, these are divided into separate deliveries addressed individually to the extent that they have been separately quoted, that the promise to transfer the good or service under each deliverable is distinct within the contract, that the customer can benefit from each deliverable on its own and that the fair value of each deliverable can be measured reliably.

63 Financial Statements RTX Annual Report 2023/24

2.2 Revenue (continued)

Revenue by type of income:

Amounts in DKK ‘000

	2023/24	2022/23	2023/24	2022/23
Group			Parent
Products, etc.	467,230	718,202	467,230	718,202
Development projects	20,024	52,441	20,024	52,441
Royalty and license fees	9,762	11,535	9,762	11,535
Other services	1,324	599	1,324	599
Total	498,340	782,777	498,340	782,777

Management comments

Revenue mainly arises from sale of products, development projects as well as from royalties and license fees. A contract for a development project is typically followed by a supply agreement for the products developed or a royalty agreement. Royalty and license fees arises from ProAudio segment and Development projects revenue arises evenly from Enterprise and ProAudio segment.

The sale of products comprises sale of ODM/OEM products and customized modules at fixed prices. Sale of products normally constitutes one performance obligation and revenue is recognized at the point in time when transfer of control occurs. RTX is usually entitled to payment at delivery which in the majority of cases coincide with transfer of control. Due to the nature of the products, return rights is not applicable.

Development projects carried out at the expense of customers are predominantly characterized by a fixed price contract and a duration less than two years. A development project is usually considered a single performance obligation as different elements of the contract are interdependent in most cases. Revenue is recognized over time applying the percentage of completion method based on the ratio between the Company’s used resources (primarily internal engineering/development time and secondarily any external costs) compared to latest total estimate of required resources. The ratio between the Company’s used resources compared to the latest estimate of total required resources is deemed to provide a faithful depiction of the transfer of the development services to the customer as internal progress on development is driven by primarily by the consumption of internal hours: periods of higher consumption of internal hours result in more significant development progress. Upon contract signature, RTX is often entitled to a down payment from the customer. The remaining contract amount is invoiced and becomes due at completion of defined milestones as the project progresses.

Royalties are generated by licenses of intellectual property granted to customers. The majority of royalties are recognized in the period the customer reports them as they are sales-based and occur after all performance obligations have been satisfied. Royalties from a license granted without a sales-based element are recognized when the customer is provided with access to the intellectual property. Entitlement to payment for royalties usually follows the revenue recognition. Licenses that are granted for a period of time against a fixed fee for that period are recognized over time proportionally over the period.

The Group uses standard forward contracts to partially or fully hedge expected net USD cash in flow. Hedging had a negative net effect of DKK 0.2 million on recognized revenue in 2023/24 (2022/23: net effect of DKK 0.0 million).

2.3 Cost of sales

Accounting policies

Cost of sales comprises cost paid in order to generate revenue in the financial year, including consumables, freight, customs and write-downs on inventories. Direct cost of sales represents the expenses consumed in inventories throughout the year.

	2023/24	2022/23	2023/24	2022/23
Group			Parent
Direct cost of sales	259,116	418,951	259,116	418,951
Write-down on inventories	3,397	-7,916	3,397	-7,916
Other sales related costs	2,917	13,311	2,917	13,311
Total	265,430	424,346	265,430	424,346

Other sales related costs include freight, warranties, commissions, quality assurance etc.

64 Financial Statements RTX Annual Report 2023/24

2.4 Staff costs and remuneration

Accounting policies

Staff costs comprise wages and salaries, share-based remuneration as well as social security costs, pension contributions etc. for the company’s management and staff. Employees employed in RTX legal entities are defined as “employed directly”. Employees through service partners in countries where we have no legal entity, comprise the remaining employees.

Share-based incentive schemes in the form of restricted share rights (RSU and Accelerated RSU), where the employees are awarded shares in the Parent (equity-settled share-based payment scheme), are measured at fair value of the rights at the time of issue and are recognized in the income statement under staff costs for the period during which the employees achieve final right to the shares. The setoff entry is recognized directly in equity. On initial recognition of the restricted share rights, an estimate is made regarding the number of rights for which the employees are expected to acquire final right. Subsequently, adjustments are made for changes to this estimate whereby final recognition of the cost corresponds to the actual number of acquired rights to shares. The fair value of the restricted share rights is computed by using the Black & Scholes model for valuation of European call options with the parameters shown overleaf.

	2023/24	2022/23	2023/24	2022/23
Group			Parent
Remuneration of the Board of Directors	2,790	2,763	2,790	2,763
Wages and salaries	164,846	176,304	131,873	142,087
Defined contribution pension plans	10,890	10,942	9,711	9,759
Other social security costs, etc.	2,111	2,465	1,614	2,108
Public grants related to staff costs	-927	-1,091	-927	-958
Staff costs before share-based remuneration	179,710	191,383	145,061	155,759
Share-based remuneration	-1,043	630	-1,188	503
Total	178,667	192,013	143,873	156,262
Number of full-time employees at 30 September	285	298	187	198
Average number of full-time employees	291	299	190	199
Average number of full-time employees employed directly	256	267	190	199

65 Financial Statements RTX Annual Report 2023/24

Management comments

Public grants related to staff costs

Public grants cover customary wages compensation.

The Group has entered into defined contribution pension plans

The Group finances defined contribution plans through regular payments to independent pension and insurance companies, which are responsible for the pension obligations.After payment of pension contributions to defined contribution plans, the Group has no further pension obligations to current or former employees with regard to future developments in interest rates, inflation, mortality, disability, etc. in respect of the amount eventually to be paid to the employee. Remuneration to the Board of Directors, the Executive Board and other key management:

Amounts in DKK ‘000
	Board of directors	Executive Board	Other key management	Board of directors	Executive Board	Other key management
	2023/24	2023/24	2023/24	2022/23	2022/23	2022/23
Group
Wages, salaries and fees	2,790	6,587	7,865	2,763	6,763	8,048
Bonus	-	-	340	-	2,768	1,808
Pensions	-	133	355	-	143	302
Total	2,790	6,380	7,942	2,763	9,674	10,158
Share-based remuneration	-	-	986	-	-	119
Total remuneration	2,790	5,394	7,823	2,763	9,657	10,396
Parent
Wages, salaries and fees	2,790	6,587	5,095	2,763	6,763	5,026
Bonus	-	-	340	-	2,768	1,715
Pensions	-	133	355	-	143	302
Total	2,790	6,380	5,173	2,763	9,674	7,043
Share-based remuneration	-	-	986	-	-	133
Total remuneration	2,790	5,394	5,040	2,763	9,657	7,367

The remuneration for each member of the Board of Directors is as follows:

Parent	Amounts in DKK ‘000
	2023/24	2022/23
Peter Thostrup, Chair	675	675
Henrik Schimmell, Deputy Chair	434	400
Jesper Mailind	296	450
Lars Christian Tofft	225	225
Mogens V. Hestbæk (from 25 Jan 2024), Chair of the Audit Committee	267	0
Katja Haukohl Millard (from 27 Jan 2022 until 7 March 2023 and from 25 Jan 2024)	154	113
Kurt Heick Rasmussen, employee representative	225	225
Kevin Harritsø, employee representative	225	225
Camilla Munk, employee representative (from 26 Jan 2023)	225	150
Flemming Vendbjerg Andersen, employee representative (until 26 Jan 2023)	0	75
Ellen Andersen (from 28 Jan 2022 to 13 Jan 2024)	64	225
Total	2,790	2,763

Management comments

RSU program:

The Board of Directors at RTX has in 2021/22, 2022/23 and 2023/24 granted restricted share units (RSU) to management as well as key employees as part of the Company’s long-term incentive program. The granted restricted share units are earned and matured over a three-year period and cannot vest before the Annual General Meetings in January 2025, January 2026 and January 2027 respectively. Once vested, the employees can freely dispose of the shares. The grant is conditioned by defined targets for share price and EBITDA achieved in the three years’ mature period as well as requirements on employment. If the restrictions for the RSU’s are fulfilled, they are finally transferred at a price of DKK 0.

66 Financial Statements RTX Annual Report 2023/24

2.4 Staff costs and remuneration (continued)

The grant is in accordance with the company’s Remuneration Policy. Besides the Executive Board and three other key management employees, 62 key employees have been granted restricted stock units in 2023/24 under the same terms as the terms for the Executive Board. The total number of RSU’s is covered by the treasury shares of RTX A/S. Due to the weaker financial performance in 2023/24 and declining share price in 2023/24, the number of Restricted Share Units (RSUs) outstanding for the RSU programs issued in 2021/22 was lapsed for all participants.

Fair value of RSU’s, conditions:

	RSUs granted in	RSUs granted in	RSUs granted in
	2023/24	2022/23	2021/22
Vesting period	Feb 2024 - Jan 2027	Feb 2023 - Jan 2026	Feb 2022 - Jan 2025
Price per share	72.0	145.8	174.4
Volatility	0.49	0.58	0.56
Expected dividend	0.84%	0.83%	0.69%
Risk-free interest rate	2.42%	2.52%	-0.44%
The expected maturity	3 years	3 years	3 years
Fair value (Black-Scholes) per RSU	69.33	137.38	107.45

Number of RSU’s in RTX A/S:

	Executive manage- ment	Other key employees	Board	Total
Granted in 2020/21	13,712	11,978	24,400	50,090
Granted in 2021/22	18,605	15,261	33,400	67,266
Granted in 2022/23	8,316	11,388	25,750	45,454
Granted in 2023/24	19,686	18,736	50,900	89,322
Granted as per September 30 2024	60,319	57,363	134,450	252,132
Regulations - ceased employments / lapsed 2020/21	-2,057	-1,797	-4,408	-8,262
Regulations - ceased employments 2021/22	-	-2,436	-10,491	-12,927
Regulations - ceased employments / lapsed 2022/23	-15,369	-9,588	-19,996	-44,953
Regulations - ceased employments / lapsed 2023/24	-36,701	-15,820	-29,718	-82,249
Outstanding as per September 30 2024	6,192	27,722	69,837	103,741

Accelerated RSU program:

The Board of Directors at RTX has in 2020/21 and 2021/22 granted accelerated restricted share units (Accelerated RSU) to group executive management in addition to the regular RSU programs as part of the Company’s long-term incentive program. The granted restricted share units are earned and matured over a three-year period and cannot vest before the Annual General Meeting in January 2025. Once vested, the employees can freely dispose of the shares. The grant is conditioned by defined highly ambitious targets for revenue, EBITDA and share price achieved in year two or three of the vesting period as well as requirements on employment. If the restrictions for the RSU’s are fulfilled, they are finally transferred at a price of DKK 0.

The fair value of the Accelerated RSU’s according to IFRS 2 (i.e. the basis for any cost recognition if applicable) are (per Accelerated RSU) DKK 149.67 (2020/21 program)

67 Financial Statements RTX Annual Report 2023/24

2.4 Staff costs and remuneration (continued)

and DKK 114.54 (2021/22 program) based on the parameters in the fair value calculation as shown below and previous annual reports. If adjusting for the reduced probability of vesting due to the highly ambitious targets the fair value (Black Scholes) of each Accelerated RSU when granted was calculated to DKK 34.45 (2020/21 program) and DKK 72.33 (2021/22 program). The Accelerated RSU programs granted in 2019/20 and 2020/21 have lapsed due to the highly ambitious financial targets not having been fulfilled. The Accelerated RSU program granted in 2021/22 has lapsed in 2023/24 due to the highly ambitious financial targets not having been fulfilled. No costs has been expensed to profit and loss regarding these remuneration programs in 2023/24. The grant in 2021/22 is in accordance with the company’s Remuneration Policy. Besides the Executive Board, six other key management employees have been granted Accelerated restricted stock units in 2021/22 under the same terms as the terms for the Executive Board. No accelerated restricted stock units was granted in 2023/24. The total number of RSU’s is covered by the treasury shares of RTX A/S.

Fair value of Accelerated RSUs, conditions:

	Accelerated RSUs granted in 2023/24	Accelerated RSUs granted in 2022/23	Accelerated RSUs granted in 2021/22
Vesting period	n/a	n/a	Feb 2022 - Jan 2025
Price per share	n/a	n/a	174.4
Volatility	n/a	n/a	0.56
Expected dividend	n/a	n/a	0.69%
Risk-free interest rate	n/a	n/a	-0.44%
Adjustment for likelihood of achievement (at award)	n/a	n/a	-34%
The expected maturity	n/a	n/a	3 years
Fair value (Black-Scholes) per RSU at award	n/a	n/a	72.33
Fair value (IFRS 2) per RSU at cost recognition if applicable	n/a	n/a	114.54

Number of Accelerated RSU’s in the Group:

	Executive manage- ment	Other key employees	Board	Total
Granted in 2021/22	33,169	20,943	-	54,112
Granted in 2022/23	-	-	-	-
Granted in 2023/24	-	-	-	-
Granted as per September 30 2024	33,169	20,943	-	54,112
Regulations - ceased employments / lapsed 2022/23	-5,517	-2,420	-	-7,937
Regulations - ceased employments / lapsed 2023/24	-27,652	-18,523	-	-46,175
Outstanding as per September 30 2024	-	-	-	-

The below amounts have been expensed concerning share-based remuneration:

	Group		Parent
Amounts in DKK ‘000	2023/24	2022/23	2023/24	2022/23
RSU programs	-1,043	630	-1,188	503
Accelerated RSU programs	-	-	-	-
Share-based remuneration posted as staff costs	-1,043	630	-1,188	503

68 Financial Statements RTX Annual Report 2023/24

2.5 Development costs

Amounts in DKK ‘000	Group		Parent
	2023/24	2022/23	2023/24	2022/23
Research and development cost incurred before capitalization	65,477	33,177	65,477	33,177
Value of own work capitalized	-19,914	-11,789	-19,914	-11,789
Total amortization and impairment on own development projects	18,995	24,002	18,995	24,002
Development cost recognized in the profit and loss account	64,558	45,390	64,558	45,390

Research and development costs are recognized as follows:

	Group		Parent
	2023/24	2022/23	2023/24	2022/23
Other external expenses	6,535	6,028	6,535	6,028
Staff costs	58,942	27,149	58,942	27,149
Value of own work capitalized	-19,914	-11,789	-19,914	-11,789
Amortization on development projects	18,995	24,002	18,995	24,002
Total	64,558	45,390	64,558	45,390

Management comments

Research and development costs incurred before capitalisation of DKK 65 million includes DKK 21.9 million in intellectual property acquired as part of a strategic collaboration with a large global Healthcare company regarding a new generation of wireless infrastructure for patient monitoring solutions for the hospital healthcare sector. Total value of own work capitalized of DKK 19.9 million in 2023/24 according to the income statement includes own tangible assets of DKK 0.0 million.

2.6 Fees to auditors elected at the annual general meeting

Amounts in DKK ‘000	Group		Parent
	2023/24	2022/23	2023/24	2022/23
Total fees to statutory audit can be specified as follows:
Statutory audit	450	600	450	600
Other auditing and assurance services	65	764	65	661
Tax advisory services	-	4	-	4
Total	515	1,368	515	1,265
Fee to other auditors	591	-	591	-

Management comments

RTX elected new auditors, KPMG Statsautoriseret Revisionspartnerselskab, at the annual general assembly in 2024. Previously Deloitte had been auditors, and a change was required. Fee to other auditors amounts to DKK 0.59 million in 2023/24 and is provided by Deloitte Statsautoriseret Revisionspartnerselskab to the RTX Group, mainly consisting of fees related to advice on tax matters regarding taxable income, remuneration report, ESEF filing, and other general accounting advice.# 69 Financial Statements RTX Annual Report 2023/24

2.7 Financial income and expenses

Accounting policies

These items comprise interest income and expenses, the interests on lease liabilities recognized in accordance with IFRS 16, fair value adjustments of investments in trading portfolio (current asset investments), foreign exchange gains and losses on receivables, liabilities and transactions in foreign currency, amortization premium/allowance on financial assets and liabilities as well as tax surcharge and repayment under the Danish Tax Prepayment Scheme. Interest income and interest expenses are accrued based on the principal sum and the effective interest rate. Dividends from investments in other securities and equity investments are recognized when the right to the dividends has been finally obtained.

Group Parent	Amounts in DKK ‘000	2023/24	2022/23	2023/24	2022/23
Financial income
Exchange rate gain (net)		-	-	-	-
Dividends from subsidiaries		-	-	-	937
Fair value adjustments of investments (net)		2,631	849	2,631	849
Gain on hedging instruments (net)		351	1,094	351	1,094
Other financial income		3,452	1,897	3,430	1,889
Total financial income		6,434	3,840	6,412	4,769
Financial expenses
Interest costs to subsidiaries		-	-	2,357	1,924
Exchange rate losses (net)		7,449	8,673	7,414	8,560
Fair value adjustments of investments in trading portfolio		-	-	-	-
Loss on hedging instruments (net)		-	-	-	-
Financing element, IFRS 16		2,334	2,448	2,257	2,311
Other financial costs		850	1,448	813	1,427
Total financial expenses		10,633	12,569	12,841	14,222

Management comments

Amount disclosed as dividends from subsidiaries covers recharge of RSU cost for subsidiaries’ part of the programs.

2.8 Derivatives

Accounting policies

Derivatives are measured at fair value and recognized as other current receivables or other current liabilities, respectively. Fair value changes of derivatives which are classified as and qualifies for recognition as cash flow hedges are recognized in other comprehensive income. When the hedged item is realized, accumulated gain or loss on the hedge transaction is transferred from other comprehensive income and recognized together with the hedged item. Fair value changes of derivatives which are classified as and qualifies for fair value hedges are recognized in the income statement together with the changes in value of the hedged assets or liabilities. Any derivatives that do not qualify as hedging are recognized as financial items in the income statement. The Group uses standard forward contracts to partially or fully hedge expected net USD cash in flow.

Management comments

The Group uses commercial hedge transactions to hedge foreign currency exposure related to expected net USD in-flow against DKK. Hedging is carried out using standard forward contracts. At 30 September 2024 open hedging contracts of USD 2.9 million (30 September 2023: USD 3.5 million) are recognized in other current liabilities at a negative fair value of DKK 0.0 million (2022/23: negative fair value of DKK 0.8 million). The 14 open contracts mature gradually over three months from the balance sheet date.

2.9 Income taxes

Accounting policies

Tax for the year consisting of current tax for the year and changes in deferred tax, is recognized in the income statement by the portion attributable to the profit/loss for the year and classified directly as equity by the portion attributable to entries directly on equity. The current tax payable or receivable is recognized in the balance sheet, stated as tax calculated on this year’s taxable income, adjusted for prepaid tax. When calculating the current tax for the year, the tax rates in effect at the balance sheet date are used. Deferred tax is recognized applying the liability method on all temporary differences between the carrying amount and tax based value of assets and liabilities. Deferred tax is calculated based on the planned use of each asset or the planned winding-up of each liability, respectively. Deferred tax is measured by using the tax rates and tax rules of the respective countries which are expected to apply when deferred tax is expected to be released as current tax. Deferred tax assets, including the tax base of tax loss carry-forwards, are recognized in the balance sheet at their estimated realizable value, either as a set-off against deferred tax liabilities or as net tax assets for set-off in future positive taxable income. At each balance sheet date, it is reassessed whether sufficient taxable income is likely to occur in the future for the deferred tax asset to be used.

Management comments

The 2023/24 adjustment concerning previous years primarily relates to adjustment in tax deductables for development costs according to the Danish tax code.

Group Parent	Amounts in DKK ‘000	2023/24	2022/23	2023/24	2022/23
Tax on profit/loss for the year
Current tax on profit/loss for the year		-611	-10,450	-	-9,803
Change in deferred tax		9,427	-1,926	9,429	-2,105
Adjustment concerning previous years
Current tax		-1,200	-113	-1,194	-119
Deferred tax		-	37	-	-
Total		7,616	-12,452	8,235	-12,027
Reconciliation of the effective tax percentage
Result before tax		-38,301	59,167	-43,651	55,178
Calculated tax at a tax percentage of 22.0%		8,426	-13,017	9,603	-12,139
Effect of different tax percentages for foreign companies		347	337	-	-
Tax value of not tax-deductible costs/taxable income		43	152	-174	-7
Adjustment concerning previous years		-1,200	76	-1,194	119
		7,616	-12,452	8,235	-12,027
Effective tax percentage (%)		19.9%	21.0%	18.9%	21.8%

Group Parent	Amounts in DKK ‘000	2023/24	2022/23	2023/24	2022/23
Deferred Tax
Deferred tax, net at 1 October		-3,993	-1,196	-6,154	-3,347
Adjustment of deferred tax concerning previous years		-	37	-	-
Foreign exchange adjustment		-99	-185	-	-
Change in deferred tax on profit/loss for the year		9,427	-1,933	9,429	-2,105
Change in deferred tax on equity for the year		100	-716	100	-702
Deferred tax, net at 30 September		5,435	-3,993	3,375	-6,154
Specification of deferred tax:
Intangible assets		-15,800	-10,356	-15,800	-10,356
Plant, equipment and leasehold improvements		2,110	1,725	2,029	1,629
Inventories		1,495	914	1,495	914
Receivables		1,014	238	1,014	238
Non-current liabilities		1,238	1,813	457	903
Tax loss carryforwards		8,898	-	8,898	-
Defered revenue		4,826	-	4,826	-
Share-based remuneration		1,654	1,673	456	518
Total		5,435	-3,993	3,375	-6,154
Which can be specified as follows:
Deferred tax assets		5,435	2,161	3,375	-
Deferred tax liability		-	-6,154	-	-6,154
Total		5,435	-3,993	3,375	-6,154

2.9 Income taxes (continued)

Group Parent	Amounts in DKK ‘000	2023/24	2022/23	2023/24	2022/23
Tax paid/received during the year		19,756	3,400	19,001	2,481
Income taxes, net
Income taxes on 1 October, net		-17,779	-11,049	-17,566	-10,766
Current tax on profit/loss for the year		-611	-10,450	-	-9,803
Tax paid during the year
Current year		18,698	2,225	17,944	1,532
Previous years, net		24	1,636	8	1,636
Adjustment of current tax concerning previous years, net		-70	-399	-75	-405
Current tax of changes in equity		-70	240	-70	240
Exchange rate adjustments		8	18	-	-
Income taxes at 30 September, net		200	-17,779	241	-17,566
Which can be specified as follows:
Income tax receivable		298	-	241	-
Income tax payable		-98	-17,779	-	-17,566
Total		200	-17,779	241	-17,566

Section 3 Invested Capital

• 3.1 Intangible assets 73
• 3.2 Leases 75
• 3.3 Tangible assets 77
• 3.4 Investments in subsidiaries 79
• 3.5 Deposits 80
• 3.6 Prepaid expenses 80

3.1 Intangible assets

Accounting policies

Own completed development projects and projects in progress

Development projects financed by RTX are recognized as intangible assets to the extent that it is likely that the product will generate future financial benefits for the Group, and the development costs associated with each asset can be measured reliably. Development projects are measured initially at cost. The cost of development projects comprises costs directly attributable to the development projects. Completed development projects are amortized over the expected lifetime. The amortization period is usually three to five years on a straight-line basis. For development projects protected by intellectual property rights, the maximum amortization period is the remaining term of the rights. Ongoing development projects recognized in the balance sheet are not amortized, but tested at least annually for impairment.

Software

Software are measured initially at cost and afterwards amortized over the expected lifetime. The amortization period is usually three years on a straight-line basis.

Goodwill

Goodwill arisen in relation to business combinations is recognized and measured initially as the difference between the cost of the acquisition and the fair value of the acquired assets, liabilities and contingent liabilities. On recognition of goodwill the amount is allocated, at the time of acquisition, to the cash-generating units which are expected to obtain financial advantages from the acquisition. The determination of cash-generating units follows the management structure, internal financial management and financial reporting in the Group. Goodwill is not amortized, but the carrying amount is tested for impairment at least once a year and more frequently if indications of impairment exist. If the carrying amount of an asset exceeds its recoverable amount, it is written down to its recoverable amount.

3.1 Intangible assets (continued)

The carrying amount of goodwill is allocated as follows to the respective cash-generating units:

Group Amounts in DKK ‘000	2023/24	2022/23
Enterprise	7,797	7,797

As the cash generating activities of the business acquired with RTX Hong Kong Ltd. are integrated into the Enterprise segment, it has been determined that the carrying amount of goodwill is allocated to the Enterprise segment as the cash-generating unit.# Financial Statements RTX Annual Report 2023/24

3.1 Intangible assets (continued)

Goodwill is tested for impairment at least once a year, or more frequently if there are indications of impairment. The annual impairment test has not resulted in any impairment of goodwill in the financial year. The recoverable amounts for the individual cash-generating units to which the goodwill amounts have been allocated are calculated on the units’ present value of expected cash flows (value-in-use). Management assesses reasonably possible changes to the assumptions will not result in the recoverable amount of goodwill being lower than the carrying amount. The cash-generating unit net present value is calculated using the cash flows stated in the budget and strategy plan for the next three financial years and terminal peiod where the growth rate is 1.0 (2022/23 1.0). The fixed discount rates reflect market asessments of the time value of money, expressed as a risk-free interest rate, and the specific risks which are associated with the cash generating unit. Discount rate are determined on an ‘after tax’ basis on the estimated weighted average cost of capital (WACC). WACC after tax is 13.5% (2022/23: 14.2%) and WACC before tax is 13.9% (2022/23: 14.6%)

Development projects

Other intangible assets are regarded as having determinable useful lives over which the assets are amortized.

	Software	Goodwill	Own completed development projects in progress	Acquired development rights	Amounts in DKK ‘000
Cost at 1 October 2022	8,269	104,304	16,896	3,598	-
Internal additions	-	-	15,442	-	1,040
External additions	-	-	-	-	-
Transfer at completion	-	12,624	-12,624	-	-
Disposals	-	-	-	-	-
Cost at 30 September 2023	8,269	116,928	19,714	3,598	1,040
Amortization and impairment at 1 October 2022	-472	-65,570	-	-3,598	-
Amortization for the year	-25	-24,002	-	-	-
Reversal relating to disposals	-	-	-	-	-
Amortization and impairment at 30 September 2023	-472	-89,572	-	-3,598	-25
Carrying amount at 30 September 2023	7,797	27,356	19,714	-	1,015
Cost at 1 October 2023	8,269	116,928	19,714	3,598	1,040
Internal additions	-	-	21,808	-	-
External additions	-	-	21,935	-	-
Transfer at completion	-	325	-325	-	-
Disposals	-	-	-	-3,598	-
Cost at 30 September 2024	8,269	117,253	63,132	-	1,040
Amortization and impairment at 1 October 2023	-472	-89,572	-	-3,598	-25
Amortization for the year	-347	-18,995	-	-	-
Reversal relating to disposals	-	-	3,598	-	-
Amortization and impairment at 30 September 2024	-472	-108,567	-	-	-372
Carrying amount at 30 September 2024	7,797	8,686	63,132	-	668

Group and Parent figures are the same except for goodwill which only relates to Group.

Uncertainties and estimates

For calculating the recoverable amount of the cash generating units and own development projects, Management’s latest budgets and strategy plans for the coming three to five years are used. These are the inputs for estimating cash flows from the assets over their expected lifetime, and the cash flows (value-in-use) are used in net present value calculations to determine the recoverable amount. Management estimates that changes that are likely to oc- cur to the assumptions will not cause the financial value of development projects to exceed the recoverable amount. Main uncertainties in this connection are associated with the determination of the discount rate and growth rates as well as expected changes in sales prices and production costs in the budget periods. The determined discount rate reflects market evaluations of the time value of money, reflected in risk free interest and the specific risks connected to the individual cash-generating unit or own development project. The pre-tax discount rate used in the calculation of recoverable amount is 13.9% (in 2022/23: 14.6%). The determined growth rates are based on approved budgets, internal strategy plans and forecast for the coming- three to five years. Estimated changes in selling prices and production costs are based on historical experiences as well as expectations for future changes in the market. The prognoses are based on a specific business evaluation of the expected sales prices and production costs. The changes in sales prices and costs are individually assessed and aresubstantially similar to the ones used in the calculations in 2022/23.

Management comments

Development projects is tested for impairment at least once a year, or more frequently if there are indications of impairment. The cash-generating unit net present value is calculated using the cash flows stated in the budget and strategy plan for the next three financial years and terminal peiod where the growth rate is 1.0 (2022/23 1.0). No impairment loss has been recognized in the income statement for 2023/24 (2022/23: no impairment loss). No impairments have been reversed in 2023/24 and in 2022/23.

3.2 Leases

Accounting policies

Right-of-use assets and lease liabilities arising from a lease contract are recognized at the lease commencement date. The right-of-use asset is initially measured at a cost equal to the corresponding lease liability adjusted for any initial direct costs and restoration costs. The lease liability is measured at the present value of the future lease payments discounted using an appropriate RTX incremental borrowing rate. In determining the lease term, extension or termination options are included if exercise of the options are considered reasonably certain. Service components separable from leasing components are excluded from the lease liability. Low value leases and leases with a lease term of 12 months or less are not recognized as a right-of-use asset and lease liability, but expensed on a straight-line basis in profit or loss. At subsequent measurement, the right-of-use assets are measured at cost less accumulated depreciation and impairment losses, adjusted for any remeasurement of the lease liability. The right-of-use assets are depreciated following a straight-line basis over the term of the lease contract. The lease liabilities are measured at amortized cost adjusted for any remeasurements or modifications to the contract.

Group

	Other fixtures, tools and equipment	Buildings	Amounts in DKK ‘000
Cost at 1 October 2022	1,377	69,314
Foreign exchange adjustments	-392	-
Disposals	-292	-
Additions	882	4,369
Cost at 30 September 2023	1,967	73,291
Depreciation and impairment at 1 October 2022	-899	-15,408
Foreign exchange adjustments	-	-
Depreciation for the year	-472	-7,567
Reversal relating to disposals	243	-
Depreciation and impairment at 30 September 2023	-1,128	-22,975
Carrying amount at 30 September 2023	839	50,316
Cost at 1 October 2023	1,967	73,291
Foreign exchange adjustments	-	-
Disposals	-	-520
Additions	-	5,911
Cost at 30 September 2024	1,967	78,682
Depreciation and impairment at 1 October 2023	-1,128	-22,975
Foreign exchange adjustments	-92	-
Depreciation for the year	-411	-6,701
Reversal relating to disposals	-	-
Depreciation and impairment at 30 September 2024	-1,539	-29,768
Carrying amount at 30 September 2024	428	48,914

Parent

	Other fixtures, tools and equipment	Buildings	Amounts in DKK ‘000
Cost at 1 October 2022	1,377	60,966
Disposals	-292	-
Additions	882	4,369
Cost at 30 September 2023	1,967	65,335
Depreciation and impairment at 1 October 2022	-899	-12,290
Reversal relating to disposals	243	-
Depreciation for the year	-472	-4,732
Depreciation and impairment at 30 September 2023	-1,128	-17,022
Carrying amount at 30 September 2023	839	48,313
Cost at 1 October 2023	1,967	65,335
Disposals	-	-
Additions	-	267
Cost at 30 September 2024	1,967	65,602
Depreciation and impairment at 1 October 2023	-1,128	-17,022
Reversal relating to disposals	-	-
Depreciation for the year	-411	-4,852
Depreciation and impairment at 30 September 2024	-1,539	-21,874
Carrying amount at 30 September 2024	428	43,728

Uncertainties and estimates

In accounting for lease contracts, Management’s assessments are applied in determining the lease term, the likely use of extension or termination options and the incremental borrowing rate.

Management comments

Right-of-use assets mainly relate to lease contracts on buildings. The additions for 2022/23 mainly relates to recalculation of lease of office buildings in Denmark (rent adjustment) and new lease contract regarding building in Hong Kong.

	Group		Parent		Amounts in DKK ‘000
	2023/24	2022/23	2023/24	2022/23
Expenses relating to short term leases	278	347	278	347
Expenses relating to leases of low-value assets	99	107	61	62
Financing element of lease liabilities	2,334	2,448	2,257	2,311
Total cash outflow on lease arrangements	9,449	10,270	7,033	6,850

3.3 Tangible assets

Accounting policies

Plant and equipment are measured at cost less accumulated depreciation and impairment losses. The basis of depreciation is cost less estimated residual value after the end of useful life. Straight-line depreciation is made on the basis of the following estimated useful lives of the assets:

• Plant and machinery: 4 to 10 years
• Other fixtures and fittings, tools and equipment, including IT equipment: 3 to 7 years
• Leasehold improvements: Lease period

Depreciation methods, useful lives and residual amounts are reassessed annually. Plant and equipment are written down to the lower of recoverable amount and carrying amount.# RTX Annual Report 2023/24

Financial Statements

Note 3.3 Tangible assets (continued)

	Group			Amounts in DKK ‘000
	Plant and machinery	Fixtures, tools and equipment	Leasehold improvements
Cost at 1 October 2022	46,282	27,218	15,748
Foreign exchange adjustments	-	-	-212	-89
Additions	5,153	1,994	900
Internal additions	2,189	-	-
Disposals	-12,832	-10,928	-
Cost at 30 September 2023	40,792	18,072	16,559
Depreciation and impairment at 1 October 2022	-29,558	-22,643	-4,475
Foreign exchange adjustments	-	183	89
Depreciation for the year	-3,781	-2,375	-1,508
Reversal relating to disposals	12,832	10,928	-
Depreciation and impairment at 30 September 2023	-20,507	-13,907	-5,894
Carrying amount at 30 September 2023	20,285	4,165	10,665
Cost at 1 October 2023	40,792	18,072	16,559
Foreign exchange adjustments	-	-142	-50
Additions	571	626	131
Internal additions	33	-	-
Disposals	-	-	-
Cost at 30 September 2024	41,396	18,556	16,640
Depreciation and impairment at 1 October 2023	-20,507	-13,907	-5,894
Foreign exchange adjustments	-	126	50
Depreciation for the year	-7,251	-1,922	-1,561
Reversal relating to disposals	-	-	-
Depreciation and impairment at 30 September 2024	-27,758	-15,703	-7,405
Carrying amount at 30 September 2024	13,638	2,853	9,235

	Parent			Amounts in DKK ‘000
	Plant and machinery	Fixtures, tools and equipment	Leasehold improvements
Cost at 1 October 2022	46,282	24,229	14,566
Additions	5,153	1,803	900
Internal additions	2,189	-	-
Disposals	-12,832	-10,928	-
Cost at 30 September 2023	40,792	15,104	15,466
Depreciation and impairment at 1 October 2022	-29,558	-19,852	-3,293
Depreciation for the year	-3,781	-2,254	-1,508
Reversal relating to disposals	12,832	10,928	-
Depreciation and impairment at 30 September 2023	-20,507	-11,178	-4,801
Carrying amount at 30 September 2023	20,285	3,926	10,665
Cost at 1 October 2023	40,792	15,104	15,466
Additions	571	626	131
Internal additions	33	-	-
Disposals	-	-	-
Cost at 30 September 2024	41,396	15,730	15,597
Depreciation and impairment at 1 October 2023	-20,507	-11,178	-4,801
Depreciation for the year	-7,251	-1,812	-1,561
Reversal relating to disposals	-	-	-
Depreciation and impairment at 30 September 2024	-27,758	-12,990	-6,362
Carrying amount at 30 September 2024	13,638	2,740	9,235

3.4 Investments in subsidiaries

Accounting policies
Investments in subsidiaries are measured at cost or a lower recoverable amount.

	Parent		Amounts in DKK ‘000
		2023/24	2022/23
Cost at 1 October		39,206	39,078
Additions		144	128
Cost at 30 September		39,350	39,206
Value adjustment at 1 October		-	-
Value adjustment at 30 September		-	-
Carrying amount at 30 September		39,350	39,206

Management comments
Additions to investment in subsidiaries are capital contributions due to Group RSU programs covering employees in the subsidiaries. Investments in subsidiaries comprise the following entities at 30 September 2024:

Name and registered offices	Profit for the year	Nominal share capital	Owner- ship	Equity	DKK ‘000
RTX America, Inc., USA	T. USD 500	100%	6,482	580
RTX Hong Kong Ltd., Hong Kong	T. HKD 23,325	100%	39,942	4,155
Total				46,425	4,735

Subsidiaries’ addresses and time for establishment: RTX America, Inc., San Diego, California, USA, established in March 2004. RTX Hong Kong Ltd., Hong Kong, acquired in January 2006. RTX America, Inc., is not subject to statutory audit. RTX Hong Kong Ltd., is subject to statutory audit and audited by Deloitte.

3.5 Deposits

Accounting policies
Deposits are measured at cost. Deposits are not depreciated.

	Group		Parent		Amounts in DKK ‘000
	2023/24	2022/23	2023/24	2022/23
Rent and other deposits
Cost at 1 October	6,757	6,817	5,925	5,923
Exchange rate adjustments	-37	-68	-	-
Additions for the year	150	12	-	2
Disposals for the year	-265	-4	-	-
Cost at 30 September	6,605	6,757	5,925	5,925
Carrying amount at 30 September	6,605	6,757	5,925	5,925

3.6 Prepaid expenses

Accounting policies
Prepaid expenses are measured at cost.

Management comments
Prepaid expenses comprise incurred costs related to subsequent financial year.

Section 4 Working Capital

4.1 Inventories

Accounting policies
Inventories are measured at cost using the FIFO method, or net realizable value if this is lower. The net realizable value of inventories is calculated as the estimated selling price less costs of completion and necessary sales costs.

	Group		Parent		Amounts in DKK ‘000
	2023/24	2022/23	2023/24	2022/23
Raw materials and consumables	68,019	90,863	68,019	90,863
Finished goods	10,252	11,304	10,252	11,304
Total inventories	78,271	102,167	78,271	102,167
Write-down of inventories for the year	2,621	-7,916	2,621	-7,916

4.2 Trade receivables

Accounting policies
Receivables comprise trade receivables, receivables from project contracts as well as other receivables. Receivables are financial assets with fixed or determinable payments which are not listed at an active market and which are not derivatives. On initial recognition, receivables are measured at fair value and subsequently at amortized cost less allowance for receivables not expected recovered. Allowances for receivables not expected recovered are recognized in the income statement as other external expenses.

RTX applies the simplified expected credit loss approach of IFRS 9 whereby an expected loss allowance is created upon initial recognition of a receivable. The loss model used for determining the expected loss allowance is based on historic information and consider forward looking inputs. In the loss model, receivables are grouped using credit risk characteristics like obtained credit insurance, customer bankruptcy etc. and days past due in determining the al- lowance. Subsequent to initial recognition, receivables are assessed individually in the event that specific indicators point to further allowance for bad debts or other situations were a receivable is not expected recovered.

	Group		Parent		Amounts in DKK ‘000
	2023/24	2022/23	2023/24	2022/23
Receivables, gross	125,017	169,698	125,017	169,698
Provision for expected losses	-1,422	-1,355	-1,422	-1,355
Carrying amount at 30 September	123,595	168,343	123,595	168,343
Provision for the year	67	-1,870	67	-1,870
Provisions account at 1 October	1,355	3,225	1,355	3,225
Losses recorded for the year	-	-	-	-
Reversed provisions	-437	-2,699	-437	-2,699
Provisions for expected losses for the year	504	829	504	829
Provisions account at 30 September	1,422	1,355	1,422	1,355

The Group and Parent company have no overdue trade receivables for which no write-down is recognized, with the exception of receivables where sufficient collateral have been attained. RTX uses following loss rates for expected credit loss; Not due (0.1%), less than 30 days overdue (0.2%), between 30 and 60 days (1.0%), between 60 and 90 days (10.0%) and above 90 days (20%). Changes in forward looking information will have an insignificant impact.

Uncertainties and estimates
The Group’s credit risks related to trade receivables are assessed on an ongoing basis. It is RTX’s experience that at times the credit risk is relatively high, as a substantial part of the outstanding amounts often can be related to a relatively small number of partners and customers.

Management comments
For sale on credit RTX makes use of credit evaluations, credit insurance and bank guarantees to secure the debts. On the date of the balance sheet, approximately 45% (2022/23: 50%) of the company’s outstanding debts is secured through credit insurance. The group’s payment terms comprise short-term credits averaging approximately 60 days. No sales with significant long payment terms exists. In general, RTX has experienced limited risk of loss on accounts receivables. During the past 5 years only three cases resulted in a loss being recorded and for a total cost equal to less than 0.1% of revenue in the five-year period. Cal- culated provision for the expected credit loss showed an insignificant difference to already recorded provisions. Bad debts provision for the year primarily relates to receivables due between 90 and 120 days. Please refer to note 5.6 for a list of the outstanding debts sorted by maturity. RTX is closely monitoring any effects from COVID-19 and the current macroeconomic uncertainty on customers’ ability to pay, however only limited negative impact has been observed as of 30 September 2024.

4.3 Contract development projects in progress

Accounting policies
Contract development projects are measured at selling price of the work performed at the balance sheet date (per- centage of completion) less on account invoicing. The selling price is measured based on the percentage of completion on the balance sheet date and the total estimated revenue (total selling price at completion) from each development project. Usually, the percentage of completion is estimated as the ratio between the company’s used resources compared to latest total estimate of required resources. Project costs are recognized as expenses in the income statement when incurred. If the outcome of a development project cannot be estimated reliably, the development project is measured at costs incurred to the extent these can be recovered. When total project costs are likely to exceed total project income for a development project, the expected loss is immediately recognized as costs. The individual development project in progress is recognized in the balance sheet under receivables or liabilities, depending on whether net value is a receivable or a liability.# Financial Statements RTX Annual Report 2023/24

Note 4.3

Amounts in DKK ‘000

Group	Parent
2023/24	2022/23
Construction cost plus recognized profit to date	19,408
Invoiced on account	-19,097
Contract development projects in progress, net	311
Which are recognized in the balance sheet as follows:
Receivables	3,681
Current liabilities	-3,370
Contract development projects in progress, net	311
Total sales value of uncompleted contracts	24,109
Sales value hereof of performed work recognized as income	-19,408
Sales value of non-performed work	4,701
Sales value of non-performed work at the balance sheet date in % of total volume of orders, etc	19%

Revenue recognized that was included in the contract liability balance at the beginning of 2023/24: DKK 0.1 million (2022/23: DKK 1.2 million). The 19% of the uncompleted contracts contained in development projects in progress, all contracts are expected to be completed during 2024/25.

4.4 Provisions

Accounting policies

Provisions are recognized when the Group has a legal or constructive obligation as a result of events in this or previ- ous financial years, and repayment of the liability is likely to result in an outflow of the Group’s financial resources. Provisions are measured as the best estimate of costs expected for the obligation to be settled on the balance sheet date. Warranty obligations comprise commitments to remedy defects and deficiencies on goods sold within the warranty period. The liabilities are based on historical experiences. Provisions on dismissed employees are recognized at the date of the employee’s dismissal and are measured as the amount of the salary paid to the employees without any demand for services in return.

Amounts in DKK ‘000

Group	Parent
2023/24	2022/23
Provision for warranty obligations
Provisions at 1 October	4,105
Provisions made during the year	716
Provisions used during the year	-3,136
Provisions at 30 September	1,685
Provisions for other obligations
Provisions at 1 October	-
Provisions made during the year	394
Provisions used during the year	-
Provisions at 30 September	394
Total provisions at 30 September	2,079

Provisions are recognized in the balance sheet as follows:

	1,110	2,716	1,110	2,716
Current liabilities (less than 1 year)
Non-current liabilities (between 1 and 2 years)	969	1,389	969	1,389
Total	2,079	4,105	2,079	4,105

4.6 Other payables

Amounts in DKK ‘000

Group	Parent
2023/24	2022/23
Wages and salaries, personal income taxes, social security costs, holiday pay, etc.	8,742
Holiday allowance, etc.	4,814
Other costs payable	2,603
Current liabilities	16,159
Wages and salaries, personal income taxes, social security costs, holiday pay, etc.	2,775
Other costs payable	-
Non-current liabilities	2,775
Total	18,934

Management comments

Carrying amount of due items concerning wages and salaries, personal income taxes, social security costs, holiday pay etc. and other expenses due etc. equals the fair value of the liabilities. The holiday allowance obligations represent the Group’s obligations to pay salary during holiday periods which the employees have earned the right to hold in subsequent financial years at the balance sheet date.

4.4 Provisions (continued)

Uncertainties and estimates

The warranty obligations are prepared based on previous years’ experience. The expenses are expected to be paid in the period 1 October 2024 – 30 September 2026 (2022/23: 1 October 2023 – 30 September 2025).

Management comments

The warranty obligations concern estimated return obligations for any faulty products. The warranty period can be up to two years. Other obligations are primarily related to obligations for employees dismissed and disemployed.

4.5 Deferred revenue

Deferred Revenue arises from a strategic collaboration with a leading global healthcare company. Through this part- nership, RTX has been engaged to perform development work on a comprehensive product that RTX will ultimately take ownership of under the terms of the agreement. This work reflects a significant milestone in the collaboration, as it lays the foundation for long-term product delivery and market success. The deferred revenue, amounting to DKK 21.9 million for the financial year 2023/24, is directly linked to this development activity. This amount will be recognized straight-line as income in alignment with the product systems’ launch and subsequent sales to customers, ensuring revenue recognition corresponds with the utilization of the development project. This approach underlines RTX’s commitment to delivering innovative solutions while fostering enduring partnerships within the healthcare sector.

Section 5 Capital Structure and Financing

NOTES

5.1 Current asset investments 86
5.2 Share capital 87
5.3 Treasury shares 88
5.4 Earnings per share 88
5.5 Dividend 88
5.6 Financial risks and financial instruments 89

5.1 Current asset investments

Accounting policies

The Group’s portfolio of current asset investments is managed and evaluated on a fair value basis as reflected in the internal information provided to management. The portfolio is measured at fair value through profit and loss as required by IFRS 9 for a business model with these characteristics. Current assets in the trading portfolio The Group’s available funds are invested via mutual funds in Danish bonds with a solid credit rating with low risk with the purpose to support environmental and social characteristics. RTX has engaged Danske Bank to provide active investment management of the Group’s portfolio of securities.

Amounts in DKK ‘000

Group	Parent
2023/24	2022/23
Cost at 1 October	34,798
Additions for the year	32,455
Disposals for the year	-32,417
Cost at 30 September	34,836
Value adjustment at 1 October	-3,769
Value adjustments for the year	2,631
Disposals for the year	-
Value adjustment at 30 September	-1,138
Carrying amount at 30 September	33,698

The underlying bonds invested in via mutual funds have the below characteristics:

	3.6	4.4	3.6	4.4
Average expected maturity of (years)
Average effective rate of interest of	3.2%	4.2%	3.2%	4.2%

Bonds are expected to be redeemed within the following periods from the balance sheet date:

	7,751	4,034	7,751	4,034
Less than one year
Between one and three years	10,783	10,240	10,783	10,240
Between three and five years	5,055	4,965	5,055	4,965
After five years	10,109	11,790	10,109	11,790
Total	33,698	31,029	33,698	31,029

5.2 Share capital

The share capital of DKK 42,339,190 (2022/23: 42,339,190) consists of 8,467,838 (2022/23: 8,467,838) shares of DKK 5. The Group holds 489,362 treasury shares at 30 September 2024 (258,528 shares at 30 September 2023). There are no shares with special rights.

Amounts in DKK ‘000

Parent	2023/24	2022/23
Development in share capital:
Share capital at 1 October	42,339	42,339
Annulment of treasury shares	-	-
Share capital at 30 September	42,339	42,339
Number of shares at DKK 5 at 30 September	8,467,838	8,467,838

5.3 Treasury shares

Accounting policies

Acquisition and selling prices of treasury shares as well as dividends on these are recognized directly as equity under retained earnings.

Parent
		Number	%	Trans-	Nominal	Amounts in DKK ‘000
		of shares	of share	action	value
				price	at DKK 5
2023/24
Shareholding at 1 October 2023		258,528	3.1%	50,242
Purchase for the year		230,834	2.7%	20,206
Disposal treasury shares		-	-	-	-	-
Annulment of treasury shares		-	-	-	-	-
Shareholding at 30 September 2024		489,362	5.8%	70,448
Fair value of shareholding at 30 September 2024, DKK ‘000						40,421
2022/23
Shareholding at 1 October 2022		284,924	3.4%	55,204
Disposal treasury shares		-26,396	-0.3%	-4,962
Annulment of treasury shares		-	0.0%	-	-	-
Shareholding at 30 September 2023		258,528	3.1%	50,242
Fair value of shareholding at 30 September 2023, DKK ‘000						21,613

5.4 Earnings per share

The calculation of earnings per share is based on the following:

Amounts in DKK ‘000

Group	2023/24	2022/23
1,000 shares
Average number of shares	8,468	8,468
Average number of treasury shares	-384	-268
Average number of shares in circulation	8,084	8,200
Average diluted effect on outstanding RSU	-28	-5
Average diluted number of shares	8,056	8,195
Profit/loss for the year in DKK ‘000	-30,685	46,715
Earnings per share (DKK)	-3.8	5.7
Diluted earnings per share (DKK)	-3.8	5.7

5.5 Dividend

No dividends will be recommended for financial year 2023/24 (2022/23: no dividend). RTX did not pay dividends during 2023/24 (2022/23: No dividends paid). Dividends for the shareholders in RTX have no tax related consequences to RTX A/S.# Financial Statements

RTX Annual Report 2023/24

Note 5.3 - 5.5

5.6 Financial risks and financial instruments

Categories of financial instruments

	Group	Group	Parent	Parent
Amounts in DKK ‘000	2023/24	2022/23	2023/24	2022/23
Trade receivables	123,595	168,343	123,595	168,343
Other receivables	10,645	13,990	9,713	12,928
Cash at bank and in hand	73,987	106,671	70,230	102,690
Total receivables and cash measured at amortized cost	208,227	289,004	203,538	283,961
Current asset investments	33,698	31,029	33,698	31,029
Financial assets at fair value through income statement	33,698	31,029	33,698	31,029
Lease liabilities	55,208	56,413	49,785	54,294
Payables to subsidiaries	-	-	45,740	44,553
Trade payables	57,402	57,599	57,179	57,307
Other payables	18,912	38,242	12,608	29,655
Financial liabilities measured at amortized cost	131,522	152,254	165,312	185,809
Financial instruments (hedging)	22	762	22	762
Financial liabilities at fair value through other comprehensive income	22	762	22	762

Management comments

Financial risk management policy

As a consequence of its operations, investments and financing, RTX is primarily exposed to changes in exchange rates and the level of interest. The Parent manages the Group’s financial risks and coordinates the Group’s cash management including financing and investment of surplus liquidity. The Group can use derivatives to some extent. It is the Group’s policy not to conduct active speculation in financial risks, but only hedge future net cash flows The Group’s financial management is directed towards management and reduction of financial risks which is a direct consequence of the Group’s operations, investments and financing. The objective is that the Group’s financial man-agement will contribute to increasing the predictability of the financial performance, including reducing the impact of foreign exchange rate fluctuations on the income statement.

Liquidity risks

The Group ensures sufficient cash resources through cash flow monitoring and control as well as through the Group’s portfolio of current asset investments. In order to reduce the risk on deposits, RTX only places deposits in banks with a high credit worthiness and invest-ments in short-term bonds. Bank deposits carry a floating rate. The liquidity reserve in the Group is composed as follows:

	Group	Group	Parent	Parent
Amounts in DKK ‘000	2023/24	2022/23	2023/24	2022/23
Current asset investments in the trading portfolio	33,698	31,029	33,698	31,029
Cash at bank and in hand	73,987	106,671	70,230	102,690
Total	107,685	137,700	103,928	133,719

5.6 Financial risks and financial instruments (continued)

The maturity dates on financial liabilities are specified below. Other than the carrying amounts, the specified amounts represent the amounts due including interests etc.

Group

Amounts in DKK ‘000	Carrying amount	Total cash flow, including interest	Between one and five years	After five years
Lease liabilities	55,208	65,834	9,096	30,325
Trade payables	57,402	57,402	57,402	-
Other payables	18,934	18,934	16,159	2,775
Total	131,544	142,170	82,657	29,188

Parent

Amounts in DKK ‘000	Carrying amount	Total cash flow, including interest	Between one and five years	After five years
Lease liabilities	49,785	60,115	7,024	26,678
Trade payables	57,179	57,179	57,179	-
Other payables	12,630	12,630	12,630	-
Total	119,594	129,924	76,833	26,413

Management comments

Credit risks

The Group’s primary credit risk is related to trade receivables. The Group’s credit risks are assessed on an ongoing basis concerning the trade receivables. By experience, a relatively large credit risk may occur from time to time as a large part of receivables often relates to a relatively small number of counterparties and customers. The level of risk related to the trade receivables is highly correlated with the financial status of the debtor. RTX uses credit insurance to the extent possible to secure the outstanding amounts. RTX has three significant trade debtors responsible for 13 %, 14 % and 16 % of total accounts receivables (2022/23: two significant trade debtors re-sponsible for 16 % and 27 %), for whom it has not been possible to obtain credit insurance. These debtors has been a close partner to RTX for a number of years and has until date not resulted in any losses.

Trade receivables not written down can be specified as follows:

	Group	Group	Parent	Parent
Amounts in DKK ‘000	2023/24	2022/23	2023/24	2022/23
Amounts not due	111,097	141,904	111,097	141,904
Amounts due with up to 30 days	5,930	23,045	5,930	23,045
Due between 30 and 60 days	6,298	1,191	6,298	1,191
Due between 60 and 90 days	185	705	185	705
Due between 90 and 120 days	85	1,498	85	1,498
Due with more than 120 days	-	-	-	-
Total	123,595	168,343	123,595	168,343

Approx. 45% (2022/23: 50%) of the company’s receivables are secured by credit insurance on the balance sheet date. Provisions for loss on trade receivables are specified in note 4.2. Approximately 27% of amounts due at the balance sheet date have been collected during October and November 2024 (2022/23: 77%). For description of the group’s payment terms refer to note 4.2.

Specification of the Group’s risks in foreign currencies:

Amounts in DKK ‘000	Net currency position	Hypothetical effect on Net asset (of the year before tax)	Expected change in exchange rate	Hypothetical effect before tax on equity
Group
EUR	724	840	-32	1,532
USD	71,079	233,415	-50,619	-18,980
Other	1,447	-	-12,495	-
Total at 30 September 2024	73,250	234,255	-63,146	-18,980
EUR	447	3,848	-125	-
USD	102,908	175,756	-56,505	-24,637
Other	1,031	-	-10,867	-
Total at 30 September 2023	104,386	179,604	-67,497	-24,637
Specification of the Parent’s risks in foreign currencies:
Parent
EUR	562	840	-32	-
USD	68,929	233,415	-46,824	-18,980
HKD	-	-	-47,922	-
Other	3	-	-41	-
Total at 30 September 2024	69,494	234,255	-94,819	-18,980
EUR	278	3,848	-125	-
USD	100,120	175,756	-57,361	-24,637
HKD	-	-	-42,801	-
Other	6	-	-49	-
Total at 30 September 2023	100,404	179,604	-100,336	-24,637

5.6 Financial risks and financial instruments (continued)

Management comments

Currency risks

The Group is exposed to exchange rate fluctuations as the individual Group entities make investments, conduct purchase and sales transac-tions and have receivables and payables in foreign currencies. The Group’s revenue to customers outside Denmark has been more than 98% of total revenue over the past several years. Moreover, the majority of the Group’s purchase of products etc. from sub-suppliers is paid in foreign currencies. The Group can enter into commercial hedging transactions, to the extent considered appropriate, to lower any currency exposure. In 2023/24 the Group used commercial hedging transactions to lower the foreign curren-cy risk of expected net USD in-flow against DKK. The sensitivity – the hypothetical effect om result of the year (and on equity) before tax – for the various currencies are calculated as the net position multiplied by the expected change in currency exchange rates.

5.6 Financial risks and financial instruments (continued)

Management comments

Interest rate risk

The Group is primarily exposed to interest rate risks through interest-bearing assets and liabilities. The overall objec-tive of controlling the interest rate risk is to reduce the negative impacts of interest rate fluctuations on earnings and the balance sheet. The Group is only directly exposed to interest rate risks on bank deposits and indirectly on excess liquidity invested in short term liquid bonds in DKK with a strong credit rating. Please refer to note 5.1 on current asset investments.

Uncertainties and estimates

Fluctuations in the interest rate level affect the Group’s bond portfolios and bank deposits. An increase in the inter-est rate level of 1% point per annum compared to the interest rate level at the balance sheet date will expectedly have a positve/negative impact of DKK +/-0.7 million (30 September 2023: positive/negative impact of DKK +/- 1.1 million) before tax on the Group’s income statement and equity. The calculation is based on a) the Group’s cash position multiplied by the increased interest rate assumed and b) the effect of the assumed interest rate increase on the fair value of the current asset investments as calculated by the Company’s bank which manages the investment portfolio.

Management comments

Capital structure

The Group’s capital structure is characterized by a considerable equity share. The business conditions for RTX A/S are characterized by a high degree of uncertainty, which requires a substantial equity, among other things to implement large and long-term development projects at the Group’s own expense, for instance in connection with the set-up of technology platforms or by cultivating new business areas and markets. RTX now targets a net liquidity position of DKK 80-100 million, according to the Capital Policy, revised August 2023. The Group’s equity share amounted to 65.8% at the end of the financial year 2023/24 compared to 65.2% in 2022/23.

Management comments

Financial gearing

The Company’s Board of Directors reviews the Group’s capital structure in connection with the announcements of in-terim reports and annual reports. As part of these reviews, the Board of Directors reviews the Group’s cost of capital and the risks related to the various types of capital.## Financial Statements RTX Annual Report 2023/24

Financial Gearing

The financial gearing in the Group, calculated as the ratio of interest-bearing net debt to equity, can be calculated at the balance sheet date as follows:

Amounts in DKK ‘000	Additions to beginning of year	Cash flow effects	Currency interests	Disposals	Lease liabilities	End of year
Lease liabilities	56,413	-9,449	-151	2,334	6,061	55,208
Current asset investments in the trading portfolio	-31,029	-33,698
Cash at bank and in hand	-106,671	-73,987
Interest-bearing net debt	-81,287	-52,477
Equity	377,105	323,419
Financial gearing	-0.22	-0.16

Compliance with loan agreement terms

The Group has not neglected or been in breach of loan agreements in the financial year or the comparative year.

Fair value hierarchy for financial instruments

The below indicates the classification of the financial instruments divided in accordance with the fair value hierarchy:

• Listed prices in an active market for the same type of instrument (level 1)
• Listed prices in an active market for similar assets or liabilities or other valuation methods, where all significant input is based on observable market data (level 2)
• Valuation methods, where any significant input is not based on observable market data (level 3)

Group	Amounts in DKK ‘000	Level 1	Level 2	Level 3	Total
Financial instruments (hedging), liability			-22		-22
Bonds listed on the stock exchange, in the trading portfolio		33,698			33,698
Financial net assets at fair value at 30 September 2024		33,698	-22		33,676
Financial instruments (hedging), liability			-762		-762
Bonds listed on the stock exchange, in the trading portfolio		31,029			31,029
Financial net assets at fair value at 30 September 2023		31,029	-762		30,267

Financial hedging instruments comprise standard foreign exchange forward contracts. The calculation of fair value for these standard hedging instruments are made by the Company’s bank with the USD/DKK spot vs. forward exchange rate as the main elements affecting the fair value of the contracts.

5.6 Financial risks and financial instruments (continued)

---

Section 6 Other Disclosure Requirements

6.1 Contingent liabilities, collateral and contractual obligations

Accounting policies

Contingent liabilities

The Group has not incurred any guarantee commitments and has not undertaken any warranty and supply obligations other than the obligations and guarantees relating to the services and products developed by the Group.

Contractual obligations

As part of the Group’s business the usual customer and supplier agreements etc. have been concluded, letters of intent have been issued to cooperative partners, and moreover, agreements have been entered into on normal business terms.

---

6.2 Other items with no effects on cash flow

Group	Amounts in DKK ‘000	2023/24	2022/23	2023/24	2022/23
Parent
Change in write-down to net realizable value of current assets		2,458	-7,964	2,458	-7,964
Change in provisions		-2,026	457	-2,026	457
Share-based remuneration		-1,063	688	-1,207	560
Unrealized exchange rate adjustments etc.		1,444	-3,084	3,579	-95
Total		813	-9,903	2,804	-7,042

6.3 Related parties

Transactions between related parties

Related parties with significant interest in RTX include the company’s Board of Directors, Executive Board and other key management as well as these persons’ related nearest family members. In addition, related parties comprise Group entities. An overview of Group entities is disclosed in note 3.4.

Board of Directors and Executive Board

Management’s remuneration and share-based remuneration are stated in note 2.4. Three members of the Board of Directors (the employee representatives) are employed in RTX A/S and for their employment they receive a salary equivalent to their position on market-based terms. In 2023/24, the amount totaled DKK 2.2 million (2022/23: DKK 2.2 million).

Subsidiaries

In 2023/24, trade etc. between RTX A/S and related parties amounted to DKK 56.3 million (2022/23: DKK 57.1 million). There have been no transactions between the subsidiaries in 2023/24. Transactions with subsidiaries have comprised the following:

Parent	Amounts in DKK ‘000	2023/24	2022/23
Purchase of services from subsidiaries		56,257	57,146
Received dividends from subsidiaries (recharge of RSU costs)		-	937
Additions to subsidiaries (RSU costs)		144	128
Interest costs for subsidiaries		2,357	1,924
Payables to subsidiaries		45,740	44,553

Transactions with subsidiaries are eliminated in the consolidated financial statements in accordance with the applied accounting policies. In addition, intra-Group balances with subsidiaries comprise intra-Group loans as well as ordinary business balances regarding purchase and sale of services. Purchase and sale of services from related parties are made on net 30 days. During the year no transactions were performed between RTX and the Board of Directors, Executive Board, other key management, large shareholders or other related parties, apart from payment of normal management remuneration as disclosed in note 2.4.

6.4 Events after the balance sheet date

No material events with effect for the annual report have occurred after the balance sheet date.

---

6.5 Accounting principles applied

Accounting policies

In addition to the descriptions in Notes 1.1 - 6.4, the accounting principles are as described below.

Income statement

Other external costs

Other external costs include costs for premises, marketing and sales, administration, loss of debtors, etc. Other external costs also include external costs of development for own financed projects that does not meet the criteria for capitalization.

Balance sheet

Impairment of tangible and intangible assets and capital shares in subsidiaries

The carrying values of tangible and intangible assets with definite life-time, as well as the Parent Company’s capital shares in subsidiaries, are reviewed at the balance sheet date to determine whether there are indications of impairment. If there are indications of impairment, the recoverable value is estimated in order to establish the need for any write-down and the extent thereof. For ongoing development projects and goodwill, the recoverable value is estimated annually, regardless of whether there are indications of impairment. If the individual assets do not generate cash flows independently of other assets, the recoverable amount is estimated for the smallest cash-generating unit to which the asset belongs. The recoverable amount is the higher of an asset’s fair value less sales costs and capital value. The recoverable amount is determined as the present value of the discounted future net cash flow from the activities goodwill relates to. In calculating the present value, the discount rate applied reflects a risk-free rate added an asset specific risk premium. If the recoverable value is estimated to be less than the carrying amount, the recoverable amount is used. Impairment losses are recognized in the income statement. On any subsequent reversal of impairments, the carrying value is increased to the adjusted estimate of the recoverable amount. However, this cannot exceed the carrying amount that the asset would have had in case of a non-impairment. Impairment of goodwill is not reversed.

Other financial liabilities

Other financial liabilities, including bank loans, trade payables and payables to public authorities, etc., are initially measured at fair value, corresponding to the proceeds received net of any transaction costs. Liabilities are subsequently measured at amortized cost using the effective interest method, whereby the difference between the proceeds and the nominal value is recognized as financial costs over the term of the loan.

Cash flow statement

The cash flow statement is prepared using the indirect method divided into operating, investing and financing activities and the impact of how these cash flows have affected the cash position for the year. Cash flows from operations are calculated as net operating profit adjusted for non-cash operating items and changes in working capital, less net financial income and expenses and the financial corporation tax. Cash flows from investing activities include payments in connection with acquisition and divestment of companies and financial assets as well as acquisition, development, improvement and sale of intangible and tangible assets. Cash flows from financing activities comprise changes in the Parent Company’s share capital and related costs as well as the raising and repayment of loans, repayment of interest-bearing debt and lease liabilities, acquisition and disposal of treasury shares and payment of dividends. Cash and cash equivalents comprise cash.

---

Ratio definitions and calculation formulae

Earnings per Share (EPS) and Diluted Earnings per Share (DEPS) are calculated in accordance with IAS 33.# Statements

Ratio definitions and calculation formulae

The other ratios have been calculated as follows:

• Operating profit/loss
  1. Profit/loss before financial income and expenses
• Growth in net turnover
  1. 1. (Revenue in year n - revenue in year n - 1) * 100 / Revenue in year n – 1
• Profit margin
  1. Operating profit/loss * 100 / Revenue
• Return on invested capital (ROIC including goodwill)
  1. Operating profit/loss before amortization (EBITA) * 100 / Average invested capital including goodwill
• Return on equity
  1. Profit/loss from ordinary activities after tax * 100 / Average equity
• Equity ratio
  1. Equity at year-end * 100 / Total assets at year-end
• Revenue per employee
  1. Revenue / Average number of full-time employees
• Operating profit per employee
  1. Operating profit/loss / Average number of full-time employees
• Earnings per share (EPS)
  • Profit/loss from ordinary activities after tax / Average number of shares in circulation each at a nominal value of DKK 5
• Diluted earnings per share (DEPS)
  • Profit/loss from ordinary activities after tax / Average number of diluted shares each at a nominal value of DKK 5
• Equity value per share
  1. Equity at year-end / Number of shares in circulation at year-end
• Dividends per share
  • Total dividends paid / Average number of issued shares each at a nominal value of DKK 5

1) Key ratios have been calculated on the basis of items comprising the Group’s continuing operations.
2) Not defined by the Danish Association of Financial Analysts. Computation of earnings per share and diluted earnings per share is specified in note 5.4.

Management’s Statement

The Board of Directors and the Executive Board have today considered and approved the annual report of RTX A/S for the financial year 1 October 2023 - 30 September 2024. The annual report is prepared in accordance with International Financial Reporting Standards as adopted by the EU and Danish disclosure requirements for listed companies.

In our opinion, the consolidated financial statements and the parent financial statements give a true and fair view of the Group’s and the Parent’s financial position at 30 September 2024 and of the results of their operations and cash flows for the financial year 1 October 2023 - 30 September 2024.

In our opinion, the annual report of RTX A/S for the financial year 1 October to 30 September with the file name RTX-2024-09-30-en.zip is prepared, in all material respects, in compliance with the ESEF Regulation.

In our opinion, the management commentary contains a fair review of the development of the Group’s and the Parent’s business and financial matters, the results for the year and of the Parent’s financial position and the financial position as a whole of the entities included in the consolidated financial statements, together with a description of the most significant principal risks and elements of uncertainties facing the Group and the Parent.

We recommend the annual report for adoption at the Annual General Meeting.

Executive Board
Peter Røpke
President and CEO

Mille Tram Lux
CFO

Board of Directors
Peter Thostrup
Chair of the Board

Henrik Schimmell Nielsen
Deputy Chair

Lars Christian Tofft
Mogens Vedel Hestbæk
Kurt Heick Rasmussen
Kevin Harritsø
Employee Representative
Employee Representative
Jesper Mailind
Employee Representative

Katja Haukohl Millard
Camilla Sembach Munk

Noerresundby, 28 November 2024

Independent Auditor’s Report

To the shareholders of RTX A/S

Report on the audit of the Consolidated Financial Statements and Parent Company Financial Statements

Opinion

In our opinion, the consolidated financial statements and the Parent Company financial statements give a true and fair view of the Group’s and the Parent Company’s assets, liabilities and financial position at 30 September 2024 and of the results of the Group’s and Parent Company’s operations and cash flows for the financial year 1 October 2023 – 30 September 2024 in accordance with the IFRS Accounting Standards as adopted by the EU and additional requirements in the Danish Financial Statements Act.

Our opinion is consistent with our reporting to the Board or Directors and the Audit Committee.

Audited financial statements

RTX A/S’ consolidated financial statements and parent company financial statements for the financial year 1 October 2023 – 30 September 2024 comprise the income statement, statement of comprehensive income, balance sheet, statement of changes in equity, statement of cash flows and notes, including summary of material accounting policy information, for the Group as well as for the Parent Company (the financial statements).

The financial statements are prepared in accordance with the IFRS Accounting Standards as adopted by the EU and additional requirements in the Danish Financial Statements Act.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (ISAs) and the additional requirements applicable in Denmark. Our responsibilities under those standards and requirements are further described in the “Auditor’s responsibilities for the audit of the financial statements” section of our report. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Independence

We are independent of the Group in accordance with the International Ethics Standards Board for Accountants’ International Code of Ethics for Professional Accountants (IESBA Code) and the additional ethical requirements applicable in Denmark, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the IESBA Code.

We declare, to the best of our knowledge and belief, that we have not provided any prohibited non-audit services, as referred to in Article 5(1) of the Regulation (EU) 537/2014 and that we remained independent in conducting the audit.

We were appointed auditors of RTX A/S for the first time on 25 January 2024 for the financial year 2023/24. We have been re-appointed by resolutions passed by the annual general meeting for a total uninterrupted engagement period of 1 year up to and including the financial year ending 30 September 2024.

Key audit matters

Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the financial statements for 2023/24. These matters were addressed in the context of our audit of the financial statements as a whole, and in the forming of our opinion thereon. We do not provide a separate opinion on these matters.

| Key audit matters | How our audit addressed the key audit matter # RTX Annual Report 2023/24 Statements

We performed risk assessment procedures to understand the processes in relation to the recognition of development projects and evaluated whether the information systems appropriately support the recognition and measurement in accordance with the accounting policies. We identified relevant controls addressing the risk of inappropriate recognition of expenses and unreasonableness of the assumption of future cash flows. We evaluated the design of the controls and determined whether the controls have been implemented as designed. We performed substantive procedures over the significant individual additions to the development projects in the current year and evaluated Management’s assessment of fulfilling the criteria in IAS 38 and tested the accuracy of the recognized amounts. Moreover, we assessed the reasonableness of the future cash flows as estimated by Management based on known future expectations for the industry and the client-specific factors and ensured the consistency of the used assumptions with other data points such as the approved budgets. Finally, we assessed the appropriateness of disclosures including assumptions applied in the impairment assessment of development projects in the consolidated and parent company financial statements.

Statement on the Management’s review

Management is responsible for the Management’s review. Our opinion on the financial statements does not cover the Management’s review, and we do not express any form of assurance conclusion thereon. In connection with our audit of the financial statements, our responsibility is to read the Management’s review and, in doing so, consider whether the Management’s review is materially inconsistent with the financial statements or our knowledge obtained during the audit, or otherwise appears to be materially misstated. Moreover, it is our responsibility to consider whether the Management’s review provides the information required by relevant law and regulations. Based on the work we have performed, we conclude that the Management’s review is in accordance with the financial statements and has been prepared in accordance with relevant law and regulations. We did not identify any material misstatement of the Management’s review.

Management’s responsibility for the financial statements

Management is responsible for the preparation of financial statements that give a true and fair view in accordance with the IFRS Accounting Standards as adopted by the EU and additional requirements in the Danish Financial Statements Act and for such internal control that Management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, Management is responsible for assessing the Group’s and the Parent Company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless Management either intends to liquidate the Group or the Parent Company or to cease operations, or has no realistic alternative but to do so.

Auditor’s responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance as to whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs and the additional requirements applicable in Denmark will always detect a material misstatement when it exists. Misstatements may arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

As part of an audit conducted in accordance with ISAs and the additional requirements applicable in Denmark, we exercise professional judgement and maintain professional scepticism throughout the audit. We also:

• identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error as fraud may involve collusion, forgery, intentional omissions, misrepresentations or the override of internal control.
• obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Group’s and the Parent Company’s internal control.
• evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by Management.
• conclude on the appropriateness of Management’s use of the going concern basis of accounting in preparing the financial statements and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Group’s and the Parent Company’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the Group and the Parent Company to cease to continue as a going concern.
• evaluate the overall presentation, structure and contents of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that gives a true and fair view.
• obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the Group to express an opinion on the consolidated financial statements.

We are responsible for the direction, supervision and performance of the group audit. We remain solely responsible for our audit opinion. We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, actions taken to eliminate threats or safeguards applied.

From the matters communicated to those charged with governance, we determine those matters that were of most significance in the audit of the financial statements of the current period and therefore the key audit matters. We describe these matters in our auditor’s report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determined that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.

Aalborg, 28 November 2024
KPMG Statsautoriseret Revisionspartnerselskab
CVR no. 25 57 81 98

Steffen S. Hansen
State Authorised Public Accountant
mne32737

Niklas R. Filipsen
State Authorised Public Accountant
mne47781

Report on compliance with the ESEF Regulation

As part of our audit of the Consolidated Financial Statements and Parent Company Financial Statements of RTX A/S we performed procedures to express an opinion on whether the annual report of RTX A/S for the financial year 1 October 2023 – 30 September 2024 with the file name RTX-2024-09-30-en.zip is prepared, in all material respects, in compliance with the Commission Delegated Regulation (EU) 2019/815 on the European Single Electronic Format (ESEF Regulation) which includes requirements related to the preparation of the annual report in XHTML format and iXBRL tagging of the Consolidated Financial Statements.

Management is responsible for preparing an annual report that complies with the ESEF Regulation. This responsibility includes:

• The preparing of the annual report in XHTML format;
• The selection and application of appropriate iXBRL tags, including extensions to the ESEF taxonomy and the anchoring thereof to elements in the taxonomy, for financial information required to be tagged using judgement where necessary;
• Ensuring consistency between iXBRL tagged data and the Consolidated Financial Statements presented in human readable format; and
• For such internal control as Management determines necessary to enable the preparation of an annual report that is compliant with the ESEF Regulation.

Our responsibility is to obtain reasonable assurance on whether the annual report is prepared, in all material respects, in compliance with the ESEF Regulation based on the evidence we have obtained, and to issue a report that includes our opinion. The nature, timing and extent of procedures selected depend on the auditor’s judgement, including the assessment of the risks of material departures from the requirements set out in the ESEF Regulation, whether due to fraud or error.# Auditor's report on audited financial statements

The procedures include:
* Testing whether the annual report is prepared in XHTML format;
* Obtaining an understanding of the company’s iXBRL tagging process and of internal control over the tagging process;
* Evaluating the completeness of the iXBRL tagging of the Consolidated Financial Statements;
* Evaluating the appropriateness of the company’s use of iXBRL elements selected from the ESEF taxonomy and the creation of extension elements where no suitable element in the ESEF taxonomy has been identified;
* Evaluating the use of anchoring of extension elements to elements in the ESEF taxonomy; and
* Reconciling the iXBRL tagged data with the audited Consolidated Financial Statements.

In our opinion, the annual report of RTX A/S for the financial year 1 October 2023 – 30 September 2024 with the file name RTX-2024-09-30-en.zip is prepared, in all material respects, in compliance with the ESEF Regulation.

105 RTX Annual Report 2023/24

Statements

We aim to strengthen our customers’ competitiveness by delivering ‘turnkey’ customized solutions that make a difference in the market. Visit our website to learn more about our turn-key solutions →

106 RTX Annual Report 2023/24

Subsidiaries

RTX Hong Kong Ltd.
8/F Corporation Square
8 Lam Lok Street
Kowloon Bay
Hong Kong
Phone: +852 2487 3718
Fax: +852 2480 6121
rtx.hk

RTX America, Inc.
10620 Treena St, Suite 230
San Diego CA 92131
USA
Phone: +1 858 935 6152
rtx.dk

Head office

RTX A/S
Stroemmen 6
9400 Noerresundby
Denmark
Phone: +45 9632 2300
Fax: +45 9632 2310
VAT no: 17 00 21 47
rtx.dk

107 RTX Annual Report 2023/24

Design and production: Noted
RTX A/S
Stroemmen 6
9400 Noerresundby
Denmark
rtx.dk

Annual report

Auditor's report on audited financial statements

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