Rtx A/s · OMXCOP:RTX
Rtx A/s — RTX Telecom — Investor Presentation (December 2001)
42 slides from Rtx A/s's investor presentation, December 2001
Slide 1: RTX Telecom Company Presentation based on 2000/01 results
RTX Telecom Company Presentation based on 2000/01 results December 2001 Stroemmen 6 0 DK9400 Noerresundby Denmark 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: • Fiscal Year 2000/01 in general • RTX Telecom, brief introduction • Market Projections in RTX technology areas • The Fiscal Year in numbers • RTX Technology area activities: • DECT / DCT2.4GHz • Bluetooth • CDMA • TD-SCDMA • IEEE802.11a • Own Products (OEM Service) • Outlook 2001/02 2
Slide 4: Fiscal Year 2000/01 in general
Fiscal Year 2000/01 in general Pre-amble: • The Internet Bubble Bursts • Cellular Operators have overinvested (?) in 3G Licenses • Cellular Phone Suppliers have overestimated the market by 20% Impact: • Cost Cutting in many large Telecom/IT companies • General slow down in world economies • Slow dow
Slide 5: Fiscal Year 2000/01 for RTX
Fiscal Year 2000/01 for RTX A year made up of a first half following the expectations and a second half very much below expectations. • Sales +4.6% to 175.9MDKK [175MDKK] • EBIT: -21.9MDKK [-25MDKK] • Net result -4.3MDKK [-5MDKK] • Focused efforts within the Bluetooth, CDMA and TD-SCDMA technology a
Slide 6: Share price 2000/01
Share price 2000/01 RTX Telecom share vs. KVX and Nasdaq (June 8, 2000 = Index 100) 350 300 250 200 KVX RTX 150 Nasdaq 100 50 0 June 8, 2000 September 30, 2001 5
Slide 7: RTX Telecom
RTX Telecom • RTX delivers IP and Services to the Wireless Market • RTX Telecom can develop the Wireless Products today that the Customers need tomorrow • Focus areas: • Cordless IP and products (e.g. Cordless telephones according to the DECT standard or 2.4GHz FHSS). • Bluetooth IP and products • C
Slide 8: Geographical Location(s)
Geographical Location(s) AALBORG [190] - Noerresundby (RTX Telecom A/S) Penell A/S [20] (An RTX Company) Aarhus [20] (RTX Telecom A/S) Sales offices in Tokyo NEW and San Jose 7
Slide 9: Official list of Customers
Official list of Customers RTX is capable of delivering Development Services and Turn Key Services to leading companies and brand name customers Some of them are: Typically customers do not want to have their name disclosed 8
Slide 10: Basic Skills & Technologies
Basic Skills & Technologies DECT Radio DCT2.4GHz Bluetooth Frequency n t m e e g Baseband 4 Leading technological position Software na and Acoustics 4“Turn-Key” designs Ma 4 Short delivery time c t 4 Competitive prices je oIS-95 r P CDMA2000 Silicon IP IEEE 802.11a TD-SCDMA NEW 9
Slide 11: DECT Market Forecasts
DECT Market Forecasts DECT Device Shipments [Millions] 70 60 50 40 DECT Device Shipments [DECT Forum] 30 20 10 0 94 95 96 97 98 99 00 01 02 03 04 05 19 19 19 19 19 19 20 20 20 20 20 20 10
Slide 12: US Cordless Market Forecasts
US Cordless Market Forecasts US Cordless Market Size (Millions) excl. ITADS (except for 2.4GHz) 60 50 40 2.4GHz Digital ITAD 2.4GHz Digital 2.4GHz Analog 30 900MHz Digital 900MHz Analog 20 50MHz Analog 10 0 Source: RTX Customers 2000 2001 2002 2003 2004 11
Slide 13: Bluetooth Market Forecasts
Bluetooth Market Forecasts Bluetooth Device Shipments [Millions] (Forecasts) 1400 1200 Bluetooth Devices [Frost & 1000 Sullivan] Bluetooth Handsets [ARC Group] 800 Bluetooth Headsets [ARC Group] 600 Bluetooth IC shipments [IDC] 400 Bluetooth IC shipments [Micrologic Research] 200 0 2001 2002 2003 20
Slide 14: CDMA Market Forecasts
CDMA Market Forecasts CDMA Subscriber Base Forecast [IMS] (Million Units) 300 250 2000 2001 2002 200 2003 2004 150 2005 2006 100 2007 2008 50 2009 0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 Qualcomm official forecast for handsets shipped in 2002: 85 - 95 M Units 13
Slide 15: WLAN Market Forecasts
WLAN Market Forecasts WLAN 2.4GHz and 5GHz Shipments [000] 9000 8000 7000 6000 5000 WLAN 2,4GHz Shipments [IDC] 4000 WLAN 5 GHz Shipments [IDC] 3000 2000 1000 0 2001 2002 2003 2004 14
Slide 16: Profit and loss account
Profit and loss account DKKm 1996/97 1997/98 1998/99 1999/00 2000/01 Net turnover 40.8 65.7 122.9 168.1 175.9 Cost of goods sold 0.0 0.0 30.4 45.4 49.8 Gross profit 40.8 65.7 92.5 122.7 126.1 Staff costs 17.3 26.6 39.9 57.1 95.0 Other external expenses 9.1 12.3 21.4 25.1 45.6 Depreciation 1.0 1.8 3.
Slide 17: Turnover
Turnover Turnover by business areas DKKm 1998/99 Share 1999/00 Share 2000/01 Share Development projects 55.0 45% 82.1 49% 88.2 50% Royalties 19.1 16% 22.5 13% 12.1 7% Own products etc. 48.8 39% 63.5 38% 75.6 43% Total turnover 122.9 100% 168.1 100% 175.9 100% • R&D investments in own product develop
Slide 18: Cash flow highlights
Cash flow highlights DKKm 1996/97 1997/98 1998/99 1999/00 2000/01 Operating profit 13.4 25.0 28.1 36.0 -21.9 Depreciation 1.0 1.8 3.1 4.5 7.3 Company tax paid -0.6 -6.9 -9.5 -9.9 -16.1 Change in working capital -3.1 -5.4 1.2 -29.9 -2.7 Net interest 0.4 -0.4 -0.4 4.9 15.8 Cash flow from operating act
Slide 19: Balance sheet
Balance sheet DKKm 1996/97 1997/98 1998/99 1999/00 2000/01 Land and buildings 0.0 13.5 27.8 39.2 56.6 Other fixed assets 5.1 5.8 7.6 10.9 31.1 Total fixed assets 5.1 19.3 35.4 50.1 87.7 Debtors 9.4 13.8 17.3 50.4 51.2 Other current assets 1.7 4.2 3.6 15.0 24.8 Securities 0.0 0.0 0.0 207.1 210.3 Cash
Slide 20: Number of employees
Employees 250 30 225 25 Number of employees 200 175 20 150 125 15 100 10 75 50 5 25 0 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 1994/95 1995/96 1996/97 1997/98 1998/99 1999/00 2000/01 Number of employees at year-end (September) Years of experience within t
Slide 21: DECT / DCT2.4GHz
DECT / DCT2.4GHz 4 DECT product lines updated for several customers 4 DCT2.4GHz product family designed for the US market, now in volume production Going Forward: 4 Update of Technology Platforms 4 Update of Customer product lines 4 Innovative Application Areas 20
Slide 22: Bluetooth, so far (1)
BluetoothTM, so far (1) 4 RTX Bluetooth Core (VHDL) and full Bluetooth SW-Stack licensed to National Semiconductor 4 Deliveries over the year of E1852A Bluetooth RF Tester for Agilent. (has received Bluetooth Qualification to both rev. 1.0B and 1.1) 4 Turn-key development agreements signed based on
Slide 23: Bluetooth, so far (2)
BluetoothTM, so far (2) 4 RTX Bluetooth Software Stack qualified to rev. 1.1 4 RTX Bluetooth Core & Stack adapted to run with ARM-family microprocessors 4 Many Profiles implemented, others added as needed (GAP, SPP, Service Discovery, Headset, Dial-up Networking, Cordless Telephone, Intercom, Lan Ac
Slide 24: Bluetooth, going forward
BluetoothTM, going forward 4 Turn Key designs also based on NSC Chips based on RTX Core & Stack 4 IP-sales (Bluetooth Core & Stack) continues 4 Royalty income starting to grow 4 Innovative applications driven by RTX (Incl. Penell) 4 Deliveries starting of E1852B Bluetooth RF Tester for Agilent (Enha
Slide 25: RTX Bluetooth IP Core
RTX Bluetooth IP Core Bluetooth Baseband Core 4kx8 Header processing, Data Receiver De-whitening, DC offset comp. Analog/digital Data RAM Decryption Symbol timing received data Data & address Data Transmitter bus Arbitration Header processing, GMSK GMSK/digital Whitening, Encryption transmit data Co
Slide 26: CDMA, so far
CDMA, so far 4 Full IS-95 platform developed for US TriMode (Verizon) 4 CDG 1, CDG 2, SAR and FCC passed - Now testing at Verizon 4 Full MMI software developed including Tegic T9 and Openwave browser 4 LSI Logic and Maxim chipset has proven to be fully functional for CDMA/AMPS 4 Verizon has told RTX
Slide 27: CDMA, going forward
CDMA, going forward China/India: 4 RTX is developing low-cost CDMA2000 1x CDMA 800 platform for India and China 4 Lowest cost box-build BOM 4 Based on LSI CBP 4.0 and Maxim radio 4 Optional MP3-player, color-display, melody ringer ... Americas: 4Lowest cost Tri-Mode box-build BOM 4GPS: 4 Small foot-
Slide 28: IMT-2000 Radio Standards
IMT-2000 Radio Standards CDMA TDMA FDMA IMT-DS IMT-MC IMT-TC IMT-SC IMT-FT Direct Multi Time Single Frequency Spread Carrier Code Carrier Time è UTRA FDD (W- è CDMA2000 è UTRA TDD è UWC-136 è DECT CDMA) è TD-SCDMA (“TDMA”) (TDD-LCR) (+) (-) (-) Opportunity RTX Focus Today 27
Slide 29: TD-SCDMA RF
TD-SCDMA RF 3G Frequency plan and RF bands Field trials in China GSM 1800 GSM UL GSM DL & European TDD frequencies 3GPP, TDD (C) C* 3GPP, TDD (B) B* B* 3GPP, TDD (A) A A CWTS TSM 1 2 3, 4 5 6 7, 8 9 3GPP, FDD (A) FDD, UL(A) FDD, DL(A) 3GPP, FDD (B) FDD, UL (B*) FDD, DL (B*) 80 10 80 05 50 19 0 19 0
Slide 30: TD-SCDMA
TD-SCDMA 4TD-SCDMA is the name for the radio interface. On the TD-SCDMA radio interface either TSM or TDD-LCR protocols can be used 4TSM is defined as the variant of the GSM protocols TSM standard is maintained by CWTS and written by Siemens, Datang and CATT 4TDD-LCR is the 3GPP version of the proto
Slide 31: RTX and TD-SCDMA
RTX and TD-SCDMA < RTX has proven experience in GSM and CDMA technology < RTX has proven experience in low-power baseband chip design < Pre-project on platform architecture done together with Siemens < Manufacturers have to share development cost in TD-SCDMA 4Otherwise no chance competing to W-CDMA
Slide 32: RTX Strategy in TD-SCDMA handset development
RTX Strategy in TD-SCDMA handset development < Dual-mode GPRS/TD-SCDMA operation is a simple necessity < Go for head on competition to a standard GSM/GPRS handset < Secure a smooth evolution from GSM/GPRS to TD-SCDMA < Voice will be primary application - and important to optimise accordingly < High
Slide 33: Best case network roll out time-schedule
Best case network roll out time-schedule 2002 2003 2004 2005 2006 2007 FDD Network roll out FDD Handset introduction TDD Network roll out TDD Handset introduction TSM Field tests TSM Network roll out TSM Handset introduction TSM BER tests Chipset RTX development plans development TSM Handset develop
Slide 34: RTX development platform - BER test terminal
RTX development platform - BER test terminal (2001-2) GSM DSP FPGA 33
Slide 35: IEEE802.11a
IEEE802.11a • RTX Agreement with Resonext • Sale of Design-kits to Customers • Development and Sale of Turn-Key Designs for Customers • Possible opportunities for Development of Test- instrumentation and Own Products. • Opportunity to drive new applications 34
Slide 36: IEEE802.11a Customer Resonext
IEEE802.11a Customer $ Chips Royalty $ NRE $ Custom Design kit Design $ Resonext Chip Info RTX Design Kit NRE $ Business model RTX / Resonext 35
Slide 37: Own products
Own products • DECT Repeater • ISDN DECT terminal • BluetoothTM RF Tester • Possible new Product Introductions ? RTX Telecom is a supplier of own Customer branded products within selected niche36 areas
Slide 38: Outlook 2001/02 in General
Outlook 2001/02 in General • Cost Cutting perhaps over the Peak • Surplus Cellular Phones have been sold • Production running again • Operators starting to plan on how to get return on investments • Phase 1 (adaptation phase) could be almost over for many companies (?) • Phase 2 (execution phase) wi
Slide 39: Outlook 2001/02 for RTX
Outlook 2001/02 for RTX Continued investment and focus: • Bluetooth • CDMA (incl. CDMA2000 1x) • TD-SCDMA • IEEE802.11a • Continuous Platform optimization on DECT and DCT2.4GHz • Sale of OEM products on same level as last year • Increase in Royalty Income • Total Sales expected: Around 200MDKK • Tot
Slide 40: Outlook for RTX
Outlook for RTX Ready for the Upturn • We have established Sales offices in San Jose and Tokyo • We are passing through the Bluetooth & CDMA Technology Phase-in and are ready and fully capable of exploiting the market opportunities • We are in the investment phase of TD-SCDMA, hunting for early IP-
Slide 41: RTX Telecom's latest announcements
RTX Telecom’s latest announcements • RTX Telecom starts shipment of E1852B, a Bluetooth RF Tester with additional features, such as Audio Tests and GPIB (IEEE-488.2) control interface • RTX Telecom signs agreement with Resonext Communications on development of IEEE802.11a wireless network cards • RT
Slide 42: Thank you for listening
Thank you for listening 41