RTX A/S · OMXCOP:RTX
RTX A/S — RTX Telecom — H1 2003/04 Earnings Presentation
45 slides from RTX A/S's earnings presentation, May 2004
Slide 1: Company presentation based on 1st half year 2003/04
Company presentation based on 1st half year 2003/04 May 2004 CEO Jorgen Elbaek je@rtx.dk Stroemmen 6 . DK-9400 Noerresundby . Aalborg . Denmark . www.rtx.dk www.rtx.dk
Slide 2: Important Notice
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
Slide 3: Agenda
Agenda Highlights 1st half 2003/04 Areas with special focus this year RTX Wireless VoIP Initiative (in depth) H1 2003/04 in Numbers Outlook full year 2003/04 Short Intro to RTX+ misc. (for reference in handouts) www.rtx.dk
Slide 4: Highlights 1st half Year 2003/04
Highlights 1st half Year 2003/04 Net sales: MDKK 72.9 (MDKK 95.5 H1 2002/03) EBIT: MDKK -23.2 (MDKK -1.9 H1 2002/03) Profit after tax: MDKK -13.0 (MDKK 1.3 H1 2002/03) Agreement made with a Korean cellular phone manufacturer for the development of an advanced GSM/GPRS cellular phone with bui
Slide 5: Areas with special focus this year
Areas with special focus this year Development of cordless niche products at the Group’s own expense negative impact on operations this financial year positive impact on operations the coming financial years 6.1 MDKK included in the balance sheet (unusual) One of these products will have p
Slide 6: RTX Wireless VoIP Initiative
RTX Wireless VoIP Initiative ■ Enabling VoIP for the masses ■ Launched first Wireless VoIP product at CTIA – Least Cost Routing Cordless Phone ■ Began Marketing Initiative for wireless VoIP concept platforms www.rtx.dk
Slide 7: Why VoIP for the Consumer Market?
Why VoIP for the Consumer Market? ■ Cable Operators and Tier 2/3 Carriers are Driving Consumer VoIP (Tier 1 reacting?) ■ VoIP technology ready to compete with PSTN for quality, reliability ■ Internet telephony operators providing alternative low cost, feature rich service to consumers ■ MSN, AOL, Ya
Slide 8: Wireless VoIP for the masses
Wireless VoIP for the masses Mission To make Voice over IP technology available to the consumer market Objective Develop high quality wireless VoIP platforms to enable new services to expanded consumer markets “ RTX Wireless technology and expertise are key enablers for consumer VoIP ” www.rtx.dk
Slide 9: Wireless VoIP to the masses
Wireless VoIP to the masses Strategy Deliver real ”Plug & Dial”, high quality (measured by audio quality and low power consumption), low cost products to allow OEMs to differentiate their products with usable, customized VoIP enhancements, and Service Providers to differentiate their VoIP offerings
Slide 10: Why VoIP?
Why VoIP? Short Term: Cheaper ■ Reduced telephone bills ■ Reduced total cost of ownership Long Term: Better ■ Compelling new services to enhance end-user productivity & satisfaction ■ More efficient network utilization www.rtx.dk
Slide 11: Barriers – VoIP made simple
Barriers – VoIP made simple ■ Reuse of old phones ■ As easy to use as normal phones ■ As good quality (audio & usage time) as normal phones ■ Can call everybody and be called by anyone ■ 100% Interoperable with any vendor and operator www.rtx.dk
Slide 12: Why choose RTX as your VoIP product development partner?
Why choose RTX as your VoIP product development partner? ■ Wireless Plug & Dial ■ Long Standby and Talk Time ■ High Audio Quality ■ Low BOM ■ Engineering Experts www.rtx.dk
Slide 13: VoIP Product roadmap
VoIP Product roadmap New Product Least Cost Routing Cordless Phone – VoIP/PSTN Product Concepts VoIP Analog Phone Adapter VoIP Cordless Phone VoIP Cordless Phone Line Extender WiFi VoIP Phone www.rtx.dk
Slide 14: OEM Least Cost Routing Cordless Phone - VoIP/PSTN
We offer to Expand your product portfolio with an OEM Least Cost Routing Cordless Phone - VoIP/PSTN www.rtx.dk
Slide 15: VoIP Analog Phone Adapter
We offer to Expand your product portfolio with a VoIP Analog Phone Adapter www.rtx.dk Product Concept
Slide 16: VoIP Cordless Phone
We offer to Expand your product portfolio with a VoIP Cordless Phone www.rtx.dk Product Concept
Slide 17: VoIP Cordless Phone Line Extender
We offer to Expand your product portfolio with a VoIP Cordless Phone Line Extender www.rtx.dk Product Concept
Slide 18: WiFi VoIP Phone
We offer to Expand your product portfolio with a WiFi VoIP Phone www.rtx.dk Product Concept
Slide 19: VoIP Sales Channels
VoIP Sales Channels www.rtx.dk
Slide 20: First six months of 2003/04 in numbers
First six months of 2003/04 in numbers
Slide 21: What was predicted?
What was predicted ? December 2003: ”First half year at a low level, expected improvement in second half, based on increased revenue from own products, increasing royalty and project income” www.rtx.dk
Slide 22: Profit and loss account
Profit and loss account DKK (million) First six First six First six months months months 2001/02 2002/03 2003/04 Net turnover / Nettoomsætning 98.1 95.5 72.9 -24% Cost of sales / Vareforbrug 20.0 14.5 18.9 Gross profit / Bruttoresultat 78.1 81.0 54.0 Staff costs / Personaleomkostninger 52.7 56.3 48.
Slide 23: Net turnover – first six months
Net turnover – first six months DKKm 2002/03 Share 2003/04 Share Type of income Development tasks 40.4 42% 31.9 44% -21% Royalties 25.4 27% 12.3 17% Own products etc. 29.7 31% 28.7 39% Total turnover 95.5 100% 72.9 100% DKKm 2002/03 Share 2003/04 Share Technologies Cordless 27.8 29% 23.4 32% Cellula
Slide 24: Balance sheet
Balance sheet DKK (million) First six First six First six months months months 2001/02 2002/03 2003/04 Land and buildings / Grunde og bygninger 95.6 93.3 91.5 Other fixed assets / Øvrige anlægsaktiver 31.2 40.4 42.4 Fixed assets / Anlægsaktiver 126.8 133.7 133.9 Trade receivables / Debitorer 44.1 33
Slide 25: Cash flow highlights
Cash flow highlights DKK (million) First six First six First six months months months 2001/02 2002/03 2003/04 Cash flows from operations / Pengestrømme fra drift 22.8 38.0 -2.3 Cash flows from investments / Pengestrømme fra investeringer -43.7 -0.9 -9.2 Cash flows from financing / Pengestrømme fra f
Slide 26: Outlook 2003/04
Outlook 2003/04 Intensive development efforts in ”Own Product” development. The target is to supplement the NRE projects. New product introductions expected during 2003/04, but major earnings impact not until the following years Continued work on TD-SCDMA with Tier 1 Semiconductor Manufacturer i
Slide 27: Thank you for listening
Thank you for listening www.rtx.dk
Slide 28: RTX in Short
RTX in Short . f
Slide 29: Facts
Facts Founded 1993: Revenue 180MDKK, Market cap app. 400MDKK, Cash app. 260MDKK The ’Growth Company of the Year’ in Denmark 1998 (1EUR=7.43DKK) Listed on the Copenhagen Stock Exchange in 2000 Over 300 projects completed Sales representatives in USA and South Korea 215 employees Average
Slide 30: From Chipset...to finished Product
From Chipset...to finished Product A Wireless Product Development Company GSM/GPRS CDMA20001x TD-SCDMA Bluetooth DECT 2.4GHz Cordless 5.8GHz Cordless WLAN www.rtx.dk Development Certification Testing Production Delivery
Slide 31: Our Vision
Our Vision “ to be the preferred partner in the development of advanced wireless communication IP and solutions ” Cellular Phones Cellular Modules (M2S) Bluetooth Headsets Bluetooth Access Points “RTX INSIDE”: Cordless Phones (Chips, HW & SW) Telephone Line Extenders www.rtx.dk Combina
Slide 32: Technologies/Markets
Technologies/Markets
Slide 33: Cordless
Cordless RTX has best technology/expertise in the business This is a definite advantage when the applications are complex (business handsets) or challenging (new application areas) But sometimes ”Good Enough” is best (or least expensive) The CVM (Cordless Voice Module) has been designed to a
Slide 34: Cellular
Cellular First RTX GSM Customer has now started production in Russia Using Motorola Semiconductor chip set Texas Instruments GSM chipset introduced as alternative Development of GSM/GPRS module started CDMA450 Wireless Local Loop (WLL) terminal with built-in DECT BS Targeting East Europe
Slide 35: Bluetooth
Bluetooth RTX designed Bluetooth Headsets still dominate the market (GN Netcom) Motorola brand, Siemens brand, Jabra brand National Semiconductor chips (based on RTX IP) will be used by major car manufacturers next year (Telematics) RTX is delivering IP for National Semiconductor 3rd generat
Slide 36: Own Products
Own Products DECT Repeater Bluetooth RF Tester (Agilent E1852B) RTX Healthcare Access Points etc. CVM-module (NSC) Telephone Line Extender (TLE) (FOXTEL) New specialized product (Expected to be introduced in 2004) New specialized product (Expected to be introduced in 2004) New specia
Slide 37: Telephone Line Extender (TLE)
Telephone Line Extender (TLE) www.rtx.dk Wireless return channel for modem signal from digital settop boxes and satellite receivers. Used to enable Pay-Per-View and Digital Services.
Slide 38: RTX Healthcare - Wireless Transfer of Medical Data
RTX Healthcare - Wireless Transfer of Medical Data • Blood Pressure • Pulse Rate • Weight Bluetooth/PSTN • etc. or Bluetooth/GPRS Gateway www.rtx.dk
Slide 39: Wireless devices...
Wireless devices... Wireless transmission A&D Medical (Bluetooth) UA-767-BT Standard 3rd party devices ”Plug’n Play” installation A&D Medical UC-321-BT Easy-to-use for the patient ? Other devices Air-data is protected with will follow... encryption and authentication www.rtx.dk
Slide 40: RTX Wireless VoIP Initiative
RTX Wireless VoIP Initiative ■ More details of VoIP Products Roadmap www.rtx.dk
Slide 41: Dual use cordless phone – USB/PSTN
Dual use cordless phone – USB/PSTN Cordless stack Base Switch Call routing PSTN if USB if 2.4GHz air-interface USB Power (audio, control) adapter PC PSTN Phone Interface VoIP application Internet VoIP stack Broadband internet access (Cable, ADSL, ..) www.rtx.dk
Slide 42: Analog Phone Adapter
Analog Phone Adapter PSTN application VoIP stack Voice coder PSTN stack Ethernet if PSTN if Power adapter PSTN Ethernet Broadband Cable / ADSL modem Internet internet access www.rtx.dk
Slide 43: VoIP Cordless Phone
VoIP Cordless Phone 2.4GHz Cordless stack air-interface VoIP Voice stack coder Ethernet if Power adapter Ethernet Cable / ADSL Broadband internet modem Internet access www.rtx.dk
Slide 44: VoIP telephone line extender
VoIP telephone line extender Call routing 2.4GHz air-interface VoIP Voice stack coder Ethernet if Power adapter Router LAN/VoIP Internet Ethernet Cable / ADSL Broadband internet modem Internet access z H 4G 2. www.rtx.dk PSTN
Slide 45: VoFi (Voice over WiFi) Handset
VoFi (Voice over WiFi) Handset 802.11 802.11 MMI / Appl Campus AP air-interface VoIP/ Voice stack coder network 802.11 WLAN MAC AP WLAN RF Designed by vertical 802.11 AP 802.11 AP Internet 802.11 AP Hotspot 802.11 AP Residential wireless router www.rtx.dk