COVID-19 IN CHINA POSTPONES RTX Q2 REVENUE – OUTLOOK MAINTAINED

Announcement                             
To Nasdaq Copenhagen A/S and the press

Nørresundby, Denmark, 28 April 2020
Announcement no. 30/2020

Interim report for Q2 and H1 2019/20
(the period 01.10.2019 - 31.03.2020)

“Our Q2 was affected by deliveries moving from March and into our Q3 due to the temporary effects of the COVID-19 situation in China on our supply chain thereby postponing revenues from Q2 to Q3. With the COVID-19 situation now unfolding globally these are unprecedented times. I am impressed by the way in which our employees across the world are handling this situation with commitment to RTX and to our customers and with flexibility to find new ways of working. Coupled with the strong position of our customers and the resilience of RTX’s business model, the dedication of our employees is the basis for RTX being able to maintain our 2019/20 outlook at present. I acknowledge the fundamental uncertainty in the global business environment, and this may impact our financial year 2019/20, however, with the present visibility we are able to maintain our outlook for 2019/20.”

Peter Røpke, CEO

HIGHLIGHTS Q2 2019/20 FOR THE RTX GROUP

• Net revenue decreased by 18.3% to DKK 112.7 million in Q2 2019/20 (Q2 2018/19: DKK 137.9 million). The decline is primarily caused by the impact of the COVID-19 outbreak and countermeasures in China on RTX’s supply chain which has postponed revenue from Q2 into Q3 mainly in Business Communications.
  • Business Communications: Revenue decreased by 14.8% to DKK 78.2 million. The decline is caused by the COVID-19 outbreak and countermeasures in China which postponed the opening of RTX’s suppliers (providers of electronic manufacturing services) in China after the Chinese New Year. This has postponed production and thus deliveries from March 2020 into RTX’s Q3 of 2019/20 leading to revenues also being postponed into Q3. The underlying business performed solidly in Q2, however, with quarter-on-quarter fluctuations during the ramp phase of the large framework agreement announced during 2017/18 impacting revenues from these large framework agreements in Q2.
  • Design Services: Revenue decreased by 25.2% to DKK 34.5 million caused by lower revenues from engineering services (hourly-based engineering), partly due to delayed finalization of certain engineering projects for customers and partly as a result of the development activities in the division focusing increasingly on generating recurring revenues instead of executing pure engineering projects.

FX corrected revenue development amounted to a decrease of 20.2% as revenue compared to last year was positively impacted by the USD exchange rate development to a minor degree.