Rtx A/S : Announcement 56-2016

RTX INTERIM REPORT FOR THE THIRD QU ARTER OF 2015/16 1/14

Nørresundby, 25 August 2016 Announcement no. 56/2016 No. of pages: 14

INTERIM REPORT

FOR Q3 2015/16

(THE PERIOD 01 APRIL - 30 JUNE 2016)

Growth in revenue and EBIT

The Supervisory Board of RTX A/S has today considered and adopted the Group's interim report for the third quarter of the

2015/16 financial year (covering the period 01.04.2016 - 30.06.2016).

• Net revenue amounted to DKK 104.3 million in the third quarter of the 2015/16 financial year corresponding to a revenue increase of 8.9% compared to last year's net revenue of DKK 95.8 million. Growth over the quarter was negatively

  affected by the exchange rate for USD, and at the same time it was negatively af- fected by the ceased income from leaseholders, as the premises in Nørresundby was sold. Adjusted for the mentioned effects, revenue growth was 12%. Revenue apportioned across RTX's business units was as follows:

  • Business Communications rose by DKK 8.2 million corresponding to an increase of 12.7% (after exchange effect 15.0%).

  • Design Services increased revenue by DKK 1.2 million corresponding to an in- crease of 4.1% (after exchange effect 5.7%).

• The Group's gross profit increased from DKK 52.8 million to DKK 61.6 million and as a consequence of the revenue mix, the Group's gross margin increased from 55.1% to 59.1%.

• Capacity costs were affected by increased external lease costs as a consequence of the sale of the premises in Nørresundby (see announcement 76/2015) and in- creased staff costs as a consequence of the higher level of activity.

• Operating profit (EBIT) totalled DKK 18.8 million compared to DKK 16.1 million last year corresponding to a growth of 16.8%.

  REVENUE PER QUARTER

  million DKK

  110

  90

  70

  50

  30

  Q1 Q2 Q3 Q4

  2014/15 2015/16

  EBIT PER QUARTER

  million DKK

  24

  18

  12

  6

  0

  Q1 Q2 Q3 Q4

  2014/15 2015/16

  RTX A/S

  Strømmen 6

  DK-9400 Nørresundby

  Denmark

  Tel +45 96 32 23 00

  Fax +45 96 32 23 10

  VAT DK 17 00 21 47

  Web www.rtx.dk E-mail info@rtx.dk

  RTX INTERIM REPORT FOR THE THIRD QU ARTER OF 2015/16 2/14

• Result after tax amounted to DKK 15.8 million compared to DKK 14.7 million last

  year corresponding to an increase of 7.3%.

• The Group's cash flow from operating activities for the third quarter was DKK

  22.6 million compared to DKK 13.5 million for the same period last year.

  ENQUIRIES AND FURTHER INFORMATION:

  Acting CEO

  Jacob Vittrup,

  tel +45 96 32 23 00

  SUMMARY OF THE FIRST THREE QUARTERS YEAR TO DATE OF 2015/16 FOR THE RTX GROUP

• Net revenue amounted to DKK 298.8 million in the first three quarters of 2015/16

  equivalent to an increase of 13.0% compared to last year's revenue of DKK 264.4 million. Adjusted for the exchange rate and lease income effects, the growth in revenue was 9.0%. Revenue apportioned across RTX's business units was as fol- lows:

  • Business Communications increased by DKK 25.8 million corresponding to an increase of 14.5% (after exchange effect 8.2%).

  • Design Services increased revenue by DKK 10.3 million corresponding to an in- crease of 12.3% (after exchange effect 10.6%).

Interim report for Q3 2015/16 comprising:

• Group financial highlights and

  key ratios

• Management report

• Group income statement

• Statement of comprehensive income

• Group balance sheet

• Group equity statement

• Group cash flow statement

• Notes

  • The Group's gross profit increased from DKK 148.2 million to DKK 177.5 million

    and as a consequence of the revenue mix, the Group's gross margin increased

    from 56.0% to 59.4%.

  • Capacity costs were affected by increased staff costs and higher lease costs.

  • Operating profit (EBIT) totalled DKK 52.7 million compared to DKK 41.7 million last year corresponding to a growth of 26.2%.

  • Result after tax amounted to DKK 42.1 million, which was on par with last year's result.

  • The Group's cash flow from operating activities for the first three quarters was DKK 42.5 million compared to DKK 40.0 million for the same period last year.

  • RTX maintains the announced expectations to the financial year 2015/16 in which we expect revenue in the range of DKK 385-400 million, EBIT in the range of DKK 60-67 million and an EBITDA in the range of DKK 64-71 million.

  • In accordance with announcement no 41/2016 Peter Røpke has been appointed CEO in RTX. Peter Røpke will join RTX on 1 September 2016.

RTX A/S

Peter Thostrup Jacob Vittrup

Chairman Acting CEO

On Friday, 26 August 2016 at

12 am, RTX will hold a meeting for investors and analysts at

ABG Sundal Collier, Forbindelsesvej 12,

2100 Copenhagen.

At this meeting, the Company's management will comment on

the Group's interim report for the third quarter of 2015/16. To register for the meeting, please email hannah.larsen@abgsc.dk.

RTX INTERIM REPORT FOR THE THIRD QU ARTER OF 2015/16 3/14

GROUP FINANCIAL HIGHLIGHTS AND KEY RATIOS

(NON-AUDITED)

Note: The Group's financial year runs from 1 October to 30 September.

Definitions of the key ratios used are stated in the annual report for 2014/15 in the accounting policies.

1) Not annualized.

RTX INTERIM REPORT FOR THE THIRD QU ARTER OF 2015/16 4/14

MANAGEMENT REPORT

COMMENTS ON DEVELOPMENTS FOR THE THIRD QUARTER

OF THE 2015/16 FINANCIAL YEAR

The Group posted revenue of DKK

104.3 million for the third quarter of the 2015/16 financial year compared to DKK 95.8 million for the same peri- od last year, which corresponds to an

increase of 8.9%. Revenue in the quar- ter is negatively affected both by the USD exchange rate and the sale of the premises as per 1 January 2016, which has negatively affected revenue by DKK

0.9 million. Adjusted for these effects

the increase in revenue in the quarter

was 12.0%.

Business Communications posted

a revenue increase of DKK 8.2 mil- lion, corresponding to 12.7%, for the third quarter 2015/16. Corrected for exchange rate effects the increase amounted to 15.5%. In the quarter, the sale increased to both major custom- ers as well as small and medium-sized customers. In the quarter an agree- ment was reached to develop a 2.4

GHz based communication system for a major Chinese distributor. In contrast to DECT, 2.4 GHz is used all over the

world, so the system will help Business Communications in the future to deliver communication solutions for new geo- graphical markets, where DECT based solutions are not applicable. The system is launched in cooperation with the customer in the second half of the next financial year. Furthermore, at the end of this financial year and in the coming

year, the business unit will invest in the development of a new product range complementing the existing communi- cation solutions. The target group for

these new products is the business

unit's existing customers.

Design Services posted revenue of DKK 31.6 million for the third quarter, corresponding to an increase of 4.1% compared to last year. Corrected for exchange rate effects the increase amounted to 5.7%. The increase mainly comes from the demand for RTX's customer-financed development projects, and during the quarter new

significant development contracts have been signed within the audio segment, which will affect the next financial year positively. In the quarter, the business unit has finalized an innovation project within one of the core technological ar- eas. The innovation project is expected to attract a new customer group to the business unit during the coming years.

The revenue growth resulted in an in- crease in gross profit of DKK 8.9 million for the third quarter 2015/16, and as

a consequence of the revenue mix, the Group's gross margin increased from 55.1% to 59.1% for the third quarter of 2015/16.

Overhead costs (i.e. other external

costs and staff costs) amounted to DKK

42.1 million, which is DKK 5.8 million higher than last year. There are two main reasons for the increase. As a

consequence of the increased activity level and the growing order book in both business units, RTX has increased staff by 23 new employees compared

to last year. After the sale of the prem- ises as per 1 January 2016, capacity costs now include costs for external lease of the building.

Development costs totalled DKK 6.9 million for the third quarter compared to last year's figure of DKK 6.3 million.

As planned, depreciation fell from DKK 1.7 million in the third quarter of 2014/15 to DKK 0.7 million for the

third quarter of 2015/16, primarily be- cause of the sale of the premises.

Operating profit (EBIT) for the third quarter of 2015/16 was DKK 18.8 mil- lion against DKK 16.1 million for the same period last year.

Net financial income resulted in an income of DKK 1.6 million compared to the same period last year when net

financial income resulted in an expense of DKK 1.4 million. The changes are the result of exchange rate fluctuations for USD and income from the company's securities portfolio.

Profit before tax for the third quarter of 2015/16 amounted to DKK 20.4 million compared to a profit of DKK 14.7 mil- lion for the same period last year.

Profit after tax for the third quarter of 2015/16 amounted to DKK 15.8 million compared to DKK 14.7 million for the same period last year.

In the third quarter, the company used the authorization from the Annual Gen- eral Meeting to undertake further share buybacks during the quarter, which had a negative impact on equity. The equity ratio amounted to 80.7% at the end of the third quarter compared to 74.5% last year. The Group's balance sheet to- tal was DKK 346.3 million at the end of the third quarter. This is a decrease of DKK 3.8 million compared to the same time last year.