RTX Telecom A/S

RTX Telecom A/S
Company Outlook, December 2007
CEO Tage Rasmussen, tra@rtx.dk
Important notice
This presentation contains statements regarding expectations for the
future development of RTX Telecom A/S (“RTX Telecom” or the
“Company”), in particular the direction of future product development,
future sales, operating profits and business expansion.
Such statements are subject to risks and uncertainties as various
factors, many of which are outside the control of RTX Telecom, may
cause the actual development and results to differ materially from the
expectations expressed directly or indirectly in this presentation.
Factors that might affect such expectations include, among others,
rapid technological changes and evolving markets, overall economic
and business conditions, fluctuations in currencies, demand for RTX
Telecom’s services, competitive factors in the market and uncertainties
concerning possible investments.
Agenda
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•
•
•
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Highlights 2006/07
Market focus
2006/07 in numbers
Outlook for 2007/08
Risks & opportunities
Highlights 2006/07
Highlights 2006/07
• Actual result:
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•
•
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Turnover: DKK 216.1 million
EBIT: DKK -68.7 million DKK -30.0 million write-off
EBIT: DKK -98.7 million
Cash and cash equivalents: DKK 115.7 million
Turn-around Indicators
RTX Telecom turnover and EBIT
Million DKK
• Employees: 215 (276)
RTX Consumer Products
Million DKK
Enforced Market Focus
• Changes in organization
• The staff of RTX America is now referring directly to
the business units
• RTX Consumer Products is now a full value-chain
operation managed out of Hong Kong
• Business Unit focus
• Preferred technology partner for major brands
• Supplier of ODM products to major brands in the
professional telecom market
• Supplier of wireless IP network infrastructure
• Remote monitoring of patients with chronic diseases
Business Units
Achievements and Future Outlook
RTX Technology
Your Trusted R&D Partner
WIRELESS ENGINEERING EXPERTS
DESIGN
SERVICES
RTX is a full-blown onestop-shop for advanced
wireless product
development services
RTX offers custom
design services within
DECT, Bluetooth, RF
and acoustics
VOIP IN THE HOME
GATEWAY
PRODUCTION
TEST SYSTEMS
RTX is actively pushing high
quality voice into the gateway
that delivers Internet access
Reliable test-equipment
for high-volume
manufacturing
Achievements and Future Outlook
RTX Technology
• Development and ODM production of specialty
products for leading brands
• Maintain and extend cooperation with key
accounts
• Develop leadership in DECT into leadership in
CAT-iq
• VoIP in Home Gateway
• Cooperation with SiTel extended
RTX Consumer Products
Products for humans
HIGH END
DECT PHONES
VOIP VIA
SKYPE AND SIP
We are the natural partner
when it comes to designing
and manufacturing high-end
products for quality brands
We can provide your
next Skype or SIP
cordless phone with
instant web content
CORDLESS PBX
HANDSETS
MORE THAN 50
OEM/ODM
PRODUCTS
Appealing cordless
handsets for PBX
systems
Cordless phones, corded
phones, security products,
etc.
Achievements and Future Outlook
RTX Consumer Products
• Full value-chain in Hong Kong operation
• Management, sales & administration
• Mechanics & electronics product development
• Production in Chinese factories
• ODM sale
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•
•
•
•
PBX handsets (Low, mid and high end)
Phones for VoIP via Skype or SIP
High end designer DECT phones
Standard corded phones
Repeaters and TLEs
RTX Network Systems
Cost effective and scalable wireless IP network systems
FIXED LINE
OPERATORS
HOSTED PBX
PROVIDER
Complete IP telephony
and wireless broadband
network system
We make your existing
hosted PBX wireless and
more competitive
HOUSEHOLD
CLUSTERS
COST-EFFECTIVE
SOLUTION
All in a box: Fast
wireless Internet access
and VoIP calls at very
low rates
Our solution costs
as little as EUR 100
per subscriber
Achievements and Future Outlook
RTX Network Systems
• Latin America, Eastern Europe and Africa
primary markets for public systems and
standalone solutions
• Europe primary market for hosted PBX
solutions
• We have customers in place in all our
focus markets and segments
RTX Healthcare
Your trusted telehealth partner
TELEHEALTH
MONITORING
INTERACTIVE
TELEHEALTH
RTX provides wireless
home devices to monitor
chronically ill patients
RTX3370 sends the data
directly to your clinical
information system
CUSTOM
SERVICES
LOYAL
CUSTOMERS
RTX offers OEM/ODM
medical products supply
and design services
Nonin Medical, Inc.
Transoma Medical
Alere Medical
Achievements and Future Outlook
RTX Healthcare
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CE approval and FDA registration
ISO 13485:2003 certification
Continued ODM sales to Alere
Vitaphone, ICW, Medgate and IntraMed have
signed delivery contracts for RTX3370
• Clinical test at Danish hospital towards COPD
patients on-going
• Several other major European and US telehealth
companies are in process of evaluating and buying
RTX Healthcare products
2006/07 in Numbers
2006/07 in Numbers
Net turnover:
EBIT:
Profit after tax:
Cash and cash
equivalents:
DKK 216.1 million
DKK -98.7 million
DKK -47.3 million
(2005/06: DKK 285.1 million)
(2005/06: DKK -63.0 million)
(2005/06: DKK -64.7 million)
DKK 115.7 million
(2005/06: DKK 106.9 million)
Profit and Loss Account
DKKm
2005/06
2006/07
Change
Net turnover
285.1
216.1
-69.0
Cost of goods sold
132.8
117.8
-15.0
Gross profit
152.3
98.3
-54.0
Staff costs
138.3
110.1
Other external expenses
62.3
76.2
Depreciation
14.7
10.7
-63.0
-98.7
Net financial items
-1.5
68.4
Profit before tax
-64.5
-30.3
Tax for the year
-0.2
-17.0
Profit after tax
-64.7
-47.3
Operating profit
-28.2
Write down of
receivable DKK
30.0 Mio.
included
13.9
-4.0
-35.7
Gain on sale of
shares in
LitePoint DKK
72.6 included
69.9
34.2
Write down of
non-recognised
deferred tax
asset DKK 16.7
included
-16.8
17.4
Net Turnover
DKKm
2005/06
Share
2006/07
Share
Development projects
46.9
16%
38.2
18%
Royalty
25.8
9%
27.5
13%
Own products etc.
212.4
75%
150.4
69%
Total turnover
285.1
100%
216.1
100%
246.8
87%
171.6
80%
8.8
3%
26.6
12%
27.6
10%
17.0
8%
1.9
0%
0.9
0%
285.1
100%
216.1
100%
Type of income
Technologies
Cordless etc.
Cellular
Bluetooth
Other income
Total turnover
Net Turnover Analysis for 5 Years
250
220,7
212,4
200
150,4
DKK mio.
150
Development projects
Royalty
104,7
Sale of products etc.
94,2
100
78,9
75,6
50,6 49,4
46,9
50
38,2
23,1
20,9
2003/04
2004/05
25,8
27,5
2005/06
2006/07
0
2002/03
Net Turnover Analysis
for 2006/07 (2005/06)
Denmark 20% (14%)
North America
24% (19%)
Asia and Australia
10% (11%)
Other European
countries 46% (56%)
By geografical area
Net Turnover Analysis
for 2006/07 (2005/06)
Development projects
18% (16%)
Denmark 20% (14%)
North America
24% (19%)
Asia and Australia
10% (11%)
Sale of products
69% (75%)
Other European
countries 46% (56%)
By geografical area
By type of income
Royalty
13% (9%)
Balance Sheet
DKKm
2005/06
2006/07
Intangible assets
11.7
9.8
Tangible assets
103.0
95.8
Other long-term assets
40.2
12.0
Total long-term assets
154.9
117.6
Inventories
41.9
41.6
Trade receivables
91.4
61.3
Other receivables
13.8
7.0
Cash and cash equivalents
106.9
115.7
Total short-term assets
254.0
225.6
Total assets
408.9
343.2
Equity
304.6
257.0
Long-term liabilities
26.2
24.3
Short-term liabilities
78.1
61.9
Total liabilities
104.3
86.2
Total equity and liabilities
408.9
343.2
Cash Flow Statement
DKKm
2005/06
2006/07
-63.0
-98.7
14.7
10.7
0.2
-0.5
-10.9
-1.4
Other items with no effects on cash flow
14.3
39.8
Net interest
-1.5
-4.9
-46.2
-55.0
Acquisition of enterprises and activities
-7.9
0.0
Purchase/Sale of short-term securities
56.7
18.3
-15.0
82.2
0.0
0.0
Instalments on mortgage loans
-1.9
-1.9
Proceeds from share issue etc.
2.6
0.0
Purchase/Sale of own shares
0.0
-1.5
-11.7
42.1
1.3
43.4
Operating profit
Depreciation
Income tax paid
Working capital changes
Cash flow from operations
Other investments
Financing
Increase/Decrease in cash and cash equivalents
Cash and cash equivalents at 30 September
Cash and cash equivalents
DKKm
2005/06
2006/07
Cash at bank and in hand
21.2
48.3
Short-term current asset investment
85.7
67.4
106.9
115.7
Cash and cash equivalents at 30 September
Outlook for 2007/2008
Achievements and Future Outlook
The RTX Group
• Enforced market focus in all our
operations
• Strong focus on core competencies in
business units
• Penetration of Latin America and African
continent for wireless IP network systems
• Streamlined operation to cover actual
business needs
Guidance for 2007/08
• Turnover: DKK 240 – 300 million
• EBIT: DKK -30 – 0 million
Risks & Opportunities
Risks & Opportunities
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Slower penetration of new markets
Long lead-time on key components
Keeping key employees
New disruptive technologies
Revitalizing of Skype market
Faster roll-out of Healthcare and Network
Solutions
Questions...