RTX — Earnings Release 2017

Nov 28, 2017

SUBSTANTIAL GROWTH IN REVENUE AND PROFIT IN Q4

The Board of Directors of RTX A/S has today considered and adopted the Group’s
interim report for the fourth quarter of 2016/17 (covering the period
01.07.2017 – 30.09.2017)

SUMMARY FOR THE FOURTH QUARTER OF 2016/17 FOR THE RTX GROUP

-- Net revenue increased in Q4 by 17.6% to DKK 113.8 million corresponding to
a revenue growth of DKK 17.1 million
compared to Q4 of 2015/16. Revenue growth in Q4 of 2016/17 was negatively
affected by the development in the US dollar exchange rate, and corrected
for this effect the growth in revenue was 22.5%
-- Revenue apportioned accross RTX’s business units as follows:
-- Business Communications increased revenue by DKK 11.7 million to DKK
75.9 million corresponding to an increase of 18.1% compared to Q4 of
2015/16.
-- Design Services increased revenue by DKK 5.4 million to DKK 37.9 million
corresponding to a revenue growth of 16.7% compared to Q4 of 2015/16.
-- Gross profit increased by 23.6% to DKK 64.2 million in Q4 of 2016/17
compared to the same period last year. Due to the revenue mix the gross
margin increased to 56.4% compared to the 53.7% in Q4 of 2015/16.
-- In Q4 of 2016/17, capacity costs increased by 3.7% due to more investments
in own financed development projects and increased staff to meet the higher
level of activity in both business units. The increased number of own
financed development projects has resulted in capitalization of DKK 6.3
million in Q4 of 2016/17.
-- Operating profit (EBIT) increased to DKK 28.7 million compared to DKK 13.1
million in the same period last year. The improved operating profit (EBIT)
is primarily a result of the increased revenue and gross profit compared to
the same period last year.
-- Cash flows from operating activities amounted to DKK 23.7 million in Q4 of
2016/17 compared to DKK 12.5 million in Q4 of 2015/16.

SUMMARY OF THE FINANCIAL YEAR 2016/17 FOR THE RTX GROUP

-- In the financial year 2016/17, RTX realized net revenue of DKK 433.5
million equivalent to an increase of 9.6% compared to DKK 395.6 million
last year. Revenue apportioned in the business units as follows:
-- Business Communications increased by DKK 21.2 million equivalent to an
increase of 7.9%.
-- Design Services increased revenue by 17.7 million equivalent to an
increase of 14.0%.
-- Gross profit increased from DKK 229.4 million to DKK 238.5 million and as a
consequence of the revenue mix, the gross profit declined from 58.0% to
55.0%.
-- The increased demand for RTX’s competencies has resulted in considerable
more staff during the financial year. Thus the average number of employees
were 34 higher in 2016/17 than in 2015/16. In 2016/17, the capacity costs
include the full effect of the increased costs for external lease after the
sale of the premises. Investments in development of own financed product
series within headsets for office environments and the gaming segment have
resulted in increased capacity costs . On this background capacity costs
increased by 11.4% compared to the same period last year.
-- In the financial year, RTX has invested in the development of new product
series complementing the company’s existing communication solutions. These
investments have resulted in the capitalization of DKK 17.4 million in
2016/17.
-- Operating profit (EBIT) amounted to DKK 72.3 million compared to DKK 65.8
million in 2015/16, equivalent to an increase of 9.9%.
-- Cash flows from operating activities amounted to DKK 46.7 million compared
to DKK 53.4 million in the same period last year.
-- In the financial year 2016/17, RTX has allocated DKK 71.0 million to
dividend and share repurchase programmes compared to DKK 44.9 million in
the same period last year.
-- The Board of Directors will propose to the Annual General Meeting in
January 2018 a dividend of DKK 2.00 per share. At the same time the Board
of Directors proposes a reduction of the company’s share capital by
nominally DKK 1.0 million by annulment of 200,000 treasury shares. RTX
expects to finalize the share buy-back programme approved by the Annual
General Meeting in 2017 with the acquisition of treasury shares up to DKK
19 million.

OUTLOOK FOR 2017/18

-- Combined with the continued investment in a broader product portfolio and
technology platform, Management expects revenue between DKK 460-490
million, EBITDA between DKK 72-87 million and Operating Profit (EBIT)
between DKK 58-73 million, where especially EBIT should be seen in the
light of an increased investment level supporting the newly defined
strategic directions of RTX.

RTX A/S

PETER THOSTRUP
Chairman

PETER RØPKE
President & CEO