Annual Report
2021/22
CVR NO. 17 00 21 47
Helping people
perform at their best
Visit our website
to learn more
about our turn-key
solutions
Wireless communication is an integral
part of all our lives. It seamlessly helps us
connect and communicate – in our work
as well as in our spare time. RTX’ s purpose
2
RTX Annual Report 2021/22
Corporate Social
Responsibility
and ESG report
2022 COP Report for RTX Group
CVR NO. 17 00 21 47
CVR No.: 17 00 21 47
Remuneration Report
2021/22
Transforming
Wireless Wisdom
into Solutions
Contents
2021/2022
Performance
Letter from the
Chair & the CEO
Management review
Introduction
RTX - at a Glance 4
2021/22 highlights 5
Letter from the Chair and the CEO 6
Financial Highlights 10
Performance
2021/22 Performance 24
Quarterly Financial Highlights 28
Capital Structure and Allocation 30
Our Sustainability Focus 32
Governance
Corporate Governance 35
Risk Management 40
The RTX Share 46
Board of Directors and Executive Board 48
Financial Statements
Group and Parent Financial Statements
Income Statement 52
Statement of Comprehensive Income 52
Balance Sheet 53
Group Equity Statement 54
Parent Equity Statement 55
Cash Flow Statement 56
Notes 57
Statements
Management Statement 97
Independent Auditor’s Report 98
The long-term financial ambitions
of RTX are to realize significant
revenue and earnings growth in
the coming years.
The 2021/22 RTX
reporting suite
Business, Strategy and Outlook
Our Growth Strategy 12
Enterprise 14
ProAudio 16
Healthcare 18
Outlook 2022/23 20
Long-Term Financial Ambitions 22
page 22
page 6
page 24
Remuneration report
Corporate Governance
Financial Year: 1 October 2021 - 30 September 2022
Statutory report on Corporate Governance
According to section 107b of e Danish Financial Statements Act
CVR No.: 17 00 21 47
3
RTX Annual Report 2021/22
Contents
RTX –
at a Glance
RTX delivers turnkey, customized
wireless communications solutions
to globally recognized B2B customers.
Rooted in a unique combination of software and hard-
ware capabilities – our Wireless Wisdom – we help
customers turn ideas into solutions. We take responsi-
bility and create value throughout the value chain: From
conceptualization of ideas, design and development,
testing and certification to manufacturing and deliver-
ies of modules and end products to customers.
Our key competences within wireless technology
combined with our end-to-end, turnkey offering set us
apart and enable us to customize each solution to meet
individual requirements and end-user configurations.
Working in long-term partnerships with customers in a
well-proven ODM/OEM-model, understanding market
needs and trends, and acting as a professional partner
are integral parts of how we do business.
Who we are
People
Our unique capabilities reside with
our 294 dedicated employees in
Europe, Asia, and North America.
Heritage
Our expertise and knowledge in
designing and manufacturing short-
range digital wireless systems and
products has been the backbone of our
business for close to 30 years.
Investment Case
By increasing product sales to large
customers, through framework
agreements, we aim to increase
recurring revenues and strengthen
resource scalability.
Mission
Our mission is to help customers
make a difference in their markets.
We aim to strengthen our customers’
competitiveness by delivering turn-key
customized solutions.
Purpose
Our purpose is to help people perform at their best. We provide our
customers with the best possible wireless communications solutions,
allowing their customers to seamlessly connect and communicate.
How We Work
Specification and Design
Turning user needs and customer
requirements into solutions
Production and
Supply Chain Management
Delivery throughout the entire product
life-cycle via certified manufacturers
Testing and Certification
Ensuring and validating performance
Development and Integration
From software and hardware into fully
integrated products
Introduction
4
RTX Annual Report 2021/22 Introduction
RTX – the Big Picture
Employee absence
%
2.5
+ 1.4%-points
Energy consumption
MWh
707 -2.2%
EBIT
DKKm
46
+ 653%
2021/22 Highlights
Financial highlights
ESG highlights
Market segments
Revenue
DKKm
Board gender diversity
Members elected by AGM
EBITDA
DKKm
663
4/2
85
+ 45% / (+30%
FX corrected)
-1 male
+2 female
+ 129%
Outlook 2022/23
Male Female
493
Revenue
DKK million
60%
YOY Gowth
114
Revenue
DKK million
12%
YOY Growth
56
Revenue
DKK million
20%
YOY Growth
Enterprise
Healthcare
ProAudio
74%
Share of Group
revenue
17%
Share of Group
revenue
9%
Share of Group
revenue
5
RTX Annual Report 2021/22 Introduction
2020/21 at a Glance
Letter from the Chair & the CEO
Returning to
our Growth Track
Demand increased strongly in 2021/22 and led to record high revenue.
Component and supply chain challenges impacted revenue and gross margin
throughout the year, but there were signs of component availability improving
towards the end of the financial year. RTX expects further growth for 2022/23.
“I am pleased that RTX
returned to our long-term
growth trajectory in 2021/22
and that we achieved our
highest single year revenue
ever. When I look ahead, I
see many macroeconomic
and geopolitical challeng-
es and uncertainties. But
I firmly believe that RTX
is strongly positioned for
further growth. Our busi-
ness model and strategy for
generating recurring revenue
from the partnerships with
our customers who are glob-
al leaders in their respective
industries are strong founda-
tions for realizing our future
ambitions.”
Peter Røpke, CEO
Global conditions were unstable, yet again, in 2021/22.
While the COVID-19 pandemic subsided in importance
and impact, geopolitical tension and outright warfare
as well as macroeconomic shifts marked the world
in 2021/22. Given such challenging times, RTX is
satisfied with the performance in 2021/22. Revenue
increased 45% and reached an all-time high of DKK
663 million with very strong demand for RTX products.
Earnings also increased significantly. EBITDA increased
by 129% to DKK 85 million and EBIT increased by
653% to DKK 46 million aided by the growth in reve-
nue. Both revenue and earnings surpassed our original
expectations for the year and the outlook for 2021/22
was revised upwards twice during the year.
Supply challenges such as component scarcity and
logistic impediments impacted deliveries during the
year. Without such challenges, revenue could have
been even higher. However, towards the end of the
financial year there are signs that the component scar-
city in the global electronics industry begins to improve.
Record demand but global supply challenges
RTX experienced very strong demand for our products
and services in 2021/22. The preceding year, 2020/21,
was impacted demand-wise by COVID-19, however
demand started to increase towards the end of that
year. This strong demand development continued and
accelerated in 2021/22 and was the basis for RTX ex-
ceeding the original revenue expectations for the year.
Demand increased in all segments. The Enterprise
segment saw very strong growth especially from
RTX’s large framework agreement customers – both
long-standing and newer framework agreement cus-
tomers. In the ProAudio segment, demand for RTX’s
products and product solutions increased strongly.
Also, the conversion of customers and revenue from
an hourly-based engineering services to a recurring
revenue product sales business model continued.
Therefore, revenue from engineering services declined
in 2021/22 in line with the strategy. RTX Health-
care segment demand and revenue also increased in
2021/22.
Since the beginning of 2021 a number of different
supply chain challenges have impacted societies and
businesses around the world. RTX has been no excep-
tion. A significant shortage of electronics components
– especially semiconductors – has been seen. Shipping
and port capacity issues as well as electricity scarcity
and COVID-19 lockdowns in China have also impacted
global supply chains – and also RTX’s supply chain.
These supply chain challenges have impacted RTX in
various ways in 2021/22. First, they have led to post-
ponement of deliveries to customers and thus of rev-
enue from one period into the next. The situation with
postponed deliveries worsened over the first half of
2021/22 primarily due to worsened component avail-
ability. In the third quarter of 2021/22 the situation
Letter from the Chair & the CEO
6
RTX Annual Report 2021/22 Introduction
Peter ostrup
Chair of the Board
Peter Røpke
President & CEO
stabilized and towards the end of the financial year the
situation began to improve somewhat with increased
component availability. All in all, the effect on 2021/22
has been negative with a net postponement of revenue
in the year, however, the improvement towards year-
end provides some ground for optimism for 2022/23.
Second, the component scarcity has also impacted costs
and gross margin in 2021/22. The scarcity impacts which
products can be produced and thus the product mix. The
tight component markets have also led to higher compo-
nent prices on many components. RTX has been able to
partially offset this with higher sales prices. The difficulty
in securing components have also made it necessary to
procure components in the spot buy market and through
other channels at higher costs than list prices.
Finally, start-up and ramp-up of production of new
products have been more time consuming as it has
been more difficult than usual for our engineers and
supply chain professionals to travel across borders to
assist in the troubleshooting of new production lines
due to continued travel restrictions especially in Asia.
The impact of supply challenges is still tangible as we
move into in 2022/23 and will continue to impact the
year to a degree. However, as mentioned, there are
signs that the situation may be improving especially
regarding availability of components.
7
RTX Annual Report 2021/22 Introduction
Corporate Social
Responsibility
and ESG report
2022 COP Report for RTX Group
CVR NO. 17 00 21 47
RTX strategy for profitable growth
The strong growth in 2021/22 and the return to our
long-term growth track have confirmed the belief we
have in our strategic direction: We deploy our wireless
capabilities to create recurring revenue as an ODM/
OEM supplier via long-term framework agreements
with our customers in the B2B Enterprise, ProAudio
and Healthcare markets.
Over the past five years we have grown revenues organ-
ically by 9% per year on average despite the challenges
of COVID-19 and global supply chain impediments
impacting the last three of these years. In total, this
corresponds to more than 50% growth for the five-year
period. Growth in 2021/22 has especially been fueled
by our largest framework agreement customers and
these customers continue to invest into joint product
development activities with us. Together with our own
investments into RTX products and product solutions
for our three segments, these development activities
create the basis for further growth for RTX.
While we are satisfied with the growth in both reve-
nue and earnings in 2021/22, we have seen the gross
margin decline. Part of this is as planned. As we have
moved from our previous business model which in-
cluded selling hourly based engineering services to the
current model focusing on generating recurring revenue
from product sales via long-term framework agree-
ments, the gross margin declines solely for accounting
reasons. The main costs of engineering services are the
salaries of engineers which are part of capacity costs
and not part of cost of goods sold. Another reason
for the declining gross margin in 2021/22 is the tight
electronics component supply markets where the costs
for securing components have risen significantly. An
important focus area for RTX in the coming years will
therefore be to ensure a normalization of component
costs as the supply-demand balance in the component
markets also becomes more normal.
Capital policy and allocation
The guiding principle for the policy on capital alloca-
tion and structure of RTX is to (i) maintain sufficient
financial flexibility to realize RTX’s strategic objectives
including investments into growth opportunities as
well as balance sheet robustness needed for long term
framework agreements and needed to support oper-
ations, while at the same time (ii) ensuring a financial
structure maximizing the return for our shareholders.
Thus, any excess capital after the funding of growth op-
portunities and after ensuring such robustness should
be returned to shareholders. RTX targets a net liquidity
position (total cash funds plus current securities less
any bank debt) of approximately 25-30% of revenues.
However, interim deviations to the target cash level can
occur depending on specific growth opportunities or
other operational or strategic considerations.
At the end of 2021/22, the net liquidity position of
RTX corresponds to 11% of revenue and is thus lower
than the target ratio primarily due to increased working
capital. During 2021/22, inventories and receiva-
bles have increased to secure growth and as result
of growth. Inventories have helped to ensure better
component availability and have thus helped to secure
the growth in 2021/22 while higher receivables are a
result of the revenue growth. Over the coming financial
years, the net liquidity ratio is expected to be brought
back to the target position via the cash generated by
RTX operations.
To proceed with caution, the Board of Directors will
recommend to the Annual General Meeting on 26
January 2023 that no dividends be distributed based
on the financial year 2021/22. However, at the Annual
General Meeting, the Board of Directors will seek a
new authorization to conduct share buy-backs when
the current authorization expires during January 2023
so that the Board of Directors can initiate a share buy-
back program during 2022/23 if the circumstances
warrant this.
Acting responsibly
RTX develops and delivers wireless communication
solutions that help people perform at their best. In ad-
dition to the direct benefits of wireless interconnectivi-
ty, such solutions can contribute to a sustainable global
development reducing the need for travel and the need
for physical infrastructure such as cables etc. At RTX,
we recognize that our impact on people, environment
and communities globally is broader than the direct
impact of our wireless solutions. Acting responsibly
therefore also means to strive for reducing any poten-
tial harm that operations may cause.
Read more about our
sustainability focus areas
and actions in our CSR
and ESG report.
Read more
8
RTX Annual Report 2021/22 Introduction
RTX has been a member of the UN Global Compact for
many years and we remain committed to the ambitions
of the Global Compact. We work on furthering the UN
Sustainable Development Goals especially where we
see that RTX can make the largest contributions. RTX
uses a materiality assessment to identify the main
focus areas for our sustainability and ESG efforts and
these focus areas include product safety and trace-
ability, a sustainable supply chain, employee working
conditions and corporate governance.
The separate CSR and ESG report of RTX details these
focus areas and our efforts. It includes the materiality
assessment, policies for key areas such as environment,
human rights and labor as well as KPI reporting for key
ESG areas including employee and diversity related
KPIs, energy consumption and carbon (CO
2
) footprint.
Our CSR and ESG report also serves as our Commu-
nication of Progress for the UN Global Compact. The
report can be found at www.rtx.dk/corporate/csr.
Looking ahead to 2022/23 and beyond
As mentioned, the strong growth in 2021/22 under-
lines the belief that our strategy will drive profitable
growth for RTX. The potential in the framework agree-
ments we have signed with key customers and in the
scaling effect from increased recurring revenue remains
significant for RTX.
The macroeconomic and geopolitical turmoil creates
higher than usual uncertainty for the coming years. The
impact of the current economic uncertainty is especial-
ly strong for consumer businesses and RTX is almost
exclusively operating on business-to-business markets.
But possible recessions in Western economies could
also impact RTX in shorter time periods. However,
over the longer run we are confident that the growth
potential inherent in RTX’s framework agreements
with leading global players in their respective industries
outweighs the shorter term fluctuations.
Therefore, we believe that 2022/23 will be the next
step on the long-term growth track for RTX – but with
relatively high uncertainty for the year. Management
expects revenue of DKK 700-760 million, EBITDA of
DKK 85-105 million and EBIT of DKK 45-65 million for
the 2022/23 financial year. The width of the outlook
interval reflects an uncertainty especially around
the impact of the macroeconomic developments on
customer demand. Secondly, the developments on the
global supply markets – including the availability and
costs of electronics components – also create some
uncertainty for the year.
The promising prospects for the future of RTX are due
to the strong work by our employees in the present. The
past year has yet again been challenging with supply
markets that have made planning and execution diffi-
cult – and we express our gratitude to our employees
for managing these circumstances very well. We also
thank our customers and other stakeholders for their
cooperation and support during the year.
Peter Thostrup Peter Røpke
Chair President & CEO
9
RTX Annual Report 2021/22 Introduction
Financial Highlights for the Group
Amounts in DKK million 2021/22 2020/21 2019/20 2018/19 2017/18
Key ratios (percentage)
Growth in net turnover 45.1 -17.8 -0.8 17.9 9.7
Profit margin 6.9 1.3 15.0 15.5 15.7
Return on invested capital 25.6 10.7 54.1 75.1 69.5
Return on equity 10.9 1.1 18.1 21.6 20.2
Equity ratio 59.6 59.5 66.0 75.0 73.8
Employment
Average number of full-time employees 282 286 292 277 246
Average number of FTE employed directly 249 257 264 253 226
Revenue per employee (DKK '000) 2,352 1,598 1,904 2,023 1,932
Operating profit per employee (DKK '000) 162 21 286 313 304
Shares (number of shares in thousands)
Average number of shares in distribution 8,169 8,243 8,376 8,545 8,556
Average number of diluted shares 8,198 8,302 8,503 8,633 8,691
Share data (DKK per share at DKK 5)
Profit/loss for the year (EPS), per share 4.2 0.4 7.5 8.4 7.0
Profit/loss for the year, diluted (DEPS), per share 4.1 0.4 7.4 8.3 6.9
Dividends, per share - - 2.5 2.5 2.0
Equity value, per share 40.5 35.4 42.2 41.0 36.4
Listed price, per share 115.0 165.0 216.0 164.0 179.6
Note: The Group's financial year runs from 1 October to 30 September. The calculation of the financial highlights is described on page 95.
Figures prior to 2018/19 have not been restated to reflect new accounting policies, IFRS 9 and IFRS 15, implemented in 2018/19. Figures prior to 2019/20
have not been restated to reflect new accounting policy IFRS 16, implemented in 2019/20.
Amounts in DKK million 2021/22 2020/21 2019/20 2018/19 2017/18
Income statement items
Revenue 663.3 457.2 555.9 560.3 475.3
Gross Profit 309.3 239.1 309.3 316.9 264.8
EBITDA 85.4 37.3 108.2 100.2 83.1
EBITDA % 12.9% 8.2% 19.5% 17.9% 17.5%
Operating profit/loss (EBIT) 45.6 6.1 83.6 86.7 74.9
Net financials -3.4 -6.6 -3.4 4.6 1.4
Profit/loss before tax 42.3 -0.6 80.2 91.3 76.3
Profit/loss for the year 33.9 3.6 63.1 71.4 60.0
Balance sheet items
Net liquidity position
(1)
73.8 120.4 194.8 226.7 182.6
Total assets 556.8 485.3 533.6 463.3 422.7
Equity 331.6 288.5 352.2 347.4 312.0
Liabilities 225.2 196.8 181.4 115.8 110.7
Other key figures
Development cost financed by
RTX before capitalization 30.6 42.3 43.8 39.0 34.3
Capitalized development cost 15.8 24.9 28.7 16.8 16.3
Depreciation, amortization and impairment 39.7 31.3 24.6 13.5 8.3
Cash flow from operations -0.0 44.5 70.6 107.7 95.7
Cash flow from investments 30.5 9.7 -37.1 -52.4 -29.2
Investment in property, plant and equipment 11.4 18.6 7.9 5.4 8.4
Increase/decrease in cash and cash equivalents 24.9 -22.4 -33.7 10.9 30.3
(1) Equals total of cash and current asset investments.
Financial Highlights for the Group
10
RTX Annual Report 2021/22 Introduction
Enterprise
Healthcare
ProAudio
Our Growth Strategy
Our Growth Strategy
Investments into products, platforms and technologies (“Wireless Wisdom”)
Building scalable processes and capabilities
Optimizing partner network
Reaping economies of scale from product sales
under long-term framework agreements
Deploying our Wireless Wisdom across multiple attractive B2B
markets in an ODM/OEM model to secure profitable growth via
increased recurring revenue and scalability.
RTX continues to target long-term profitable growth, as we deploy our wireless capabilities to
generate recurring revenue from long-term framework agreements with globally recognized B2B
customers in three attractive market segments: Enterprise, ProAudio and Healthcare.
Across segments, we will continuously invest into products and product platforms, both
together with customers and through strategic investments funded by RTX. We aim at devel-
oping products with a long lifecycle to exploit the full potential in current long-term framework
agreements as well as entering into new customer agreements. Ramping up existing long-term
framework agreements will be an important growth driver.
We will build on our uniform business model and go-to-market approach to further reap econo-
mies of scale. Focus will be on establishing robust and scalable processes across RTX as well as
consolidating our technological capabilities and continuously upgrade these.
Finally, we will continue to optimize our supplier network and strengthen the value chain to
further capitalize on our growth.
Recurring revenue
Expand
leadership
position in
Enterprise
Utilize unique
position in
ProAudio
Strengthen
position in
Healthcare
12
RTX Annual Report 2021/22 Business, Strategy and Outlook
13
RTX Annual Report 2021/22 Business, Strategy and Outlook
Enterprise
Our business
In Enterprise, we help our B2B customers, primarily
large global players, provide better wireless commu-
nication solutions for their customers. The solutions
are used in places like retail operations, healthcare
facilities, warehouses, offices, call centers, and public
buildings, and in even the most demanding commercial
and industrial environments where equipment certified
as explosion-proof and water-proof is crucial.
Focusing on making sure all the component systems
integrate seamlessly and reliably, we design, develop
and manufacture wireless IP telephony products and
sub-systems that include headsets, handsets, base
stations, repeaters, location beacons, and advanced
cloud-based tools.
We provide the know-how, services, and specialist
capabilities that help our customers win contracts for for-
ward-thinking enterprise wireless communication instal-
lations: Scalable to changing requirements, connections
with very high stability, high audio quality everywhere,
and easy integration with other systems and hardware.
Market trends
Within the global enterprise communications market
more and more businesses are moving enterprise
telephony to the cloud to enable digital transforma-
tion, greater agility, and better support of distributed
workforce. This transition often prompts organizations
to refresh their existing endpoints and thus drives a
demand for new endpoints - especially handsets and
headsets which are replacing the more traditional
corded desktop phones. There is also an ongoing con-
solidation in the manufacturing of handsets which RTX
continues to both drive and benefit from. This consol-
idation is driven by increased outsourcing of handset
development and production, especially to pure play
ODM/OEM providers like RTX. In 2021, RTX was again
Enterprise
Enterprise
14
RTX Annual Report 2021/22 Business, Strategy and Outlook
2021/222017/18 2018/19 2019/20 2020/21
493
325
387
382
308
0
100
200
300
400
500
the largest manufacturer of multi-cellular handsets
globally, according to MZA, with a share of 22% which
has increased steadily for several years.
The total global professional market for wireless
handsets is, according to Frost & Sullivan, estimated
at USD 900 million or 4 million units annually. DECT
technology handsets constitute 3 million units and are
expected to grow 3% p.a. from 2021 to 2025 driven
by its mobile nature, superior performance, and cost
effectiveness. RTX is experiencing additional demand
upside in DECT, primarily from large players in the USA
market, an enterprise market which traditionally has
been focused on Wi-Fi/VoWLAN handsets. The total
global wireless professional headsets market is, by
Frost & Sullivan, estimated at USD 1 billion or almost
10 million headsets annually with growth expectation of
12% p.a. from 2021 to 2025.
2021/22 highlights
During 2021/22 we accelerated the ramp-up of product
deliveries under the two newest major Enterprise frame-
work agreements; both customers are leading global
brands with strong sales channels. Also, the work on tai-
loring the wireless headset platform, developed by RTX
to potential customers and on commercial agreements,
has continued as planned and holds further growth
potential. RTX also continued the development of own
Our pure play model ensures our ODM/OEM customers,
that they will not experience channel conflicts with RTX
branded products and solutions in the market. Via this
model, and with focus on system integration as compet-
itive advantage, we benefit from customer outsourcing
of products and solutions, which ensures recurring
revenue via long-term framework agreements with large
global customers. The unique system integration across
RTX products in the enterprise space, supported by our
cloud-based deployment and device management tools,
benefits our customers and their end users and facili-
tates increasing share-of-wallet for RTX.
Important growth drivers in the coming years will be
continued ramping of the partnerships associated with
the major Enterprise framework agreements signed
over the past couple of years.
Communication systems
for any requirements
RTX Enterprise systems are modular,
scalable solutions that provide reliable,
high-quality audio connections for
communication devices in various
industries. The devices used by the
individual, such as handsets and
headsets, connect via a wireless link to
USB dongles or base stations within the
building or area where the individuals
are operating. Repeaters linked to
base stations extend the range for the
individual’s operational area – even
outside. This eliminates poor audio or
calls dropping out when people move
around and ensure people can perform
at their best by staying connected
everywhere. The systems include other
additional features, such as location
detection of devices, unique safety- and
alarm features, as well as cloud-based
deployment and device management
tools. Enterprise systems are ideal
for all sizes of enterprises. Systems
can ensure reliable coverage for 20 to
15,000+ users, making the system and
its capabilities easily scalable to meet
customers’ exact needs.
financed product ranges, e.g., new versions of handsets
and base stations as well as our cloud-based deployment
and device management tools. Multiple customers have
launched the tools in their organizations and additional
customers are in the pilot phase.
RTX’s Enterprise segment saw significant growth in
2021/22, driven by strong demand for RTX products
and solutions and in particular strong growth among the
large framework agreement customers. The segment
was also impacted by increasing component costs, the
global component shortages and other supply chain
challenges, though the situation improved towards the
end of 2021/22.
Enterprise growth strategy
RTX aims to expand its leadership position in Enterprise
products and solutions by continuing to gain share and
drive market consolidation.
Share of
Group revenue
2021/22
5-year Enterprise revenue
DKK million
74%
Enterprise
15
RTX Annual Report 2021/22 Business, Strategy and Outlook
ProAudio
Our business
In ProAudio, we help our B2B customers design,
develop, and manufacture wireless audio solutions,
with products ranging from modules, to circuit boards,
and to full ODM products; all featuring RTX software.
Examples of final products and solutions include con-
nectivity of microphones or instruments; conference
systems; content creation solutions; intercom systems
for restaurants, construction sites, or more complex
systems for TV productions or large sporting events
etc.; wireless gaming headsets, controllers, mice,
keyboards etc.
When customers need the optimal sound quality in
products for professional environments, our unique
capabilities help them raise the bar via resilient wireless
connectivity, low latency, high capacity, zero-distortion
high quality audio, and patented methods for cop-
ing with harsh environments. Building on our proven
platforms – e.g., Sheerlink
TM
and TeamEngage
TM
– and
associated modules, we enable customers in getting
attractive professional audio solutions to market faster,
with less hassle, and at a lower investment. RTX makes
it easy for our customers to provide unique quality and
professional-grade wireless audio devices for their
customers.
Market trends
The market for professional audio solutions is ever-ex-
panding and relatively fragmented. New application
areas arise, and existing ones convert to modern digital
wireless. Our platform driven approach enables us to
provide broad coverage of this attractive market with
a few select, but well defined, hardware modules and
software assets. Additionally, there is a strong match
between our platforms and key industry trends – desire
for more capacity (number of users and audio chan-
nels), automatic configuration, and ease of use; all
features we can help address via our platforms.
ProAudio
ProAudio
16
RTX Annual Report 2021/22 Business, Strategy and Outlook
17%
2021/222017/18 2018/19 2019/20 2020/21
114
124
145
128
103
0
30
60
90
120
150
Market areas dependent on live performances were still
impacted demand-wise by COVID-19 during 2021/22,
though less than prior years and improving throughout
the period. Across the RTX ProAudio application areas
there are sizable and growing wireless shares. Arizton
estimates annual global sales of professional wireless
microphones at more than 2 million units and on top
of this comes growth opportunity from instruments,
DJ products etc. where wireless transmission also is
relevant. The global intercom market is estimated at
approximately USD 6 billion of which more than half is
wireless.
2021/22 highlights
In 2021/22 we successfully continued implementation
of our ProAudio productization strategy. The aim is
to transition from non-recurring revenue to recurring
revenue via product platforms – e.g., Sheerlink™ and
TeamEngage™ – and associated modules as well as full
products for the professional audio market. In line with
our strategy, revenue from one-off engineering services
decreased compared to last year, while recurring reve-
nue from product sales and royalty increased over last
year.
We saw growth in product sales from RTX’s product
platforms and associated modules and beginning
pick-up in business dependent on live performances
after the COVID-19 pandemic. Additionally, our major
ProAudio framework agreement customer, a large inter-
national group and a leading brand in the professional
audio space, launched its marketing activities for the
product suite focused on audio conference systems.
The agreement has thereby moved into the ramp
phase where product deliveries are expected to start
to increase gradually. The ProAudio segment was also
impacted by increasing component costs as well as the
global component shortages – directly via deliveries
of RTX products and indirectly via royalty customers’
volumes – though the situation improved towards the
end of 2021/22.
ProAudio growth strategy
In ProAudio we want to lead the transition to digital
wireless in professional audio markets and leverage our
unique technology into recurring revenue.
This is being accomplished by refining and productiz-
ing our existing technology base into flexible product
platforms – e.g., Sheerlink™ and TeamEngage™ – with
dedicated RTX modules and select full product custom
ODM/OEM. For RTX customers this modular and
flexible platform approach results in attractive value
propositions, namely short time to market and attractive
cost of entry. For RTX this results in increased scalability
through recurring revenue via framework agreements.
An important growth driver in the coming years will be
continued ramping of our major ProAudio framework
agreement as well as continued market expansion with
our Sheerlink™ and TeamEngage™ platforms and modules.
Connecting audio devices
in any environment
RTX ProAudio systems provide
audio solutions for connecting
multiple devices at once in a wide
range of environments. Based on
RTX modules, the systems provide a
robust connection with low latency
that can intelligently adapt to the
environment. The technology within
the modules ensures clear audio
without connection interference
and dropouts. The RTX modules
are incorporated into customers’
products creating a system of
devices connected via wireless links.
The combination of products and
number of devices can variate de-
pending on the specific setting from
two devices to a base station, such
as microphones on a stage, up to 10
devices group-connected creating
an ideal communication setup for
example for firefighters. The small
size of the modules makes very
compact product solutions possible,
so devices can be small enough
to fit the mobility and freedom in
movement, the user needs to per-
form in the best way.
5-year ProAudio revenue
DKK million
Share of
Group revenue
2021/22
ProAudio
17
RTX Annual Report 2021/22 Business, Strategy and Outlook
Healthcare
Our business
In Healthcare, we help our B2B customers build
wireless technology into modern healthcare services.
We make it easy for RTX customers to provide better
patient monitoring solutions and devices for their
customers, by providing the wireless communication
infrastructure which they can embed seamlessly and
reliably into patient monitoring and other high-tech
medical devices.
In corporation with customers, the RTX technology
platform enables plug-and-play delivery of infrastruc-
ture access points, repeaters, and modules to embed
within the full solutions offered by our customers
and in endpoints such as patient-worn devices and
near-patient monitors. The wireless solutions, that
RTX provides, are designed, manufactured, assem-
bled, and delivered as compatible, standards-com-
pliant modules that customers can quickly and easily
integrate into their own products and systems. As a
result, we help customers get commercially and tech-
nically attractive healthcare solutions to market faster.
Market trends
In healthcare, it is crucial to know exactly what is hap-
pening with each patient – and to be informed as soon
as the patient’s condition changes. Better awareness
and more reliable data about a patient’s condition pave
the way to more cost-effective deployment of health-
care resources, as well as more effective care. Those
using healthcare technology in these markets often de-
pend heavily on the wireless transfer of key data about
patients, pulled in from increasing numbers of devices,
monitoring sensors and other appropriate data points.
Modern healthcare technology opens up new vistas
for patient mobility and independence, and for hospital
patient monitoring as well as treatment.
Healthcare
Healthcare
18
RTX Annual Report 2021/22 Business, Strategy and Outlook
9%
2021/222017/18 2018/19 2019/20 2020/21
56
27
29
46
47
0
10
20
30
40
50
60
IHS Markit estimates the continuous patient monitor-
ing market at 1.8 million in units and more than USD 4
billion in value. The market includes both centralized
systems, used in critical care settings in hospitals, and
decentralized systems, used for post-acute bedside,
ambulatory, home patient, or small and field hospital
installation, and both are expected to grow. While
Healthcare is a relatively recession-proof market, one
need to remember that it also is a very conservative
business, with products living for a decade or more.
This makes introduction of new products a lengthy
process, but once a foothold is established, it of course
also serves as a source of stable revenue.
2021/22 highlights
During 2021/22 we continued, as planned, the ongoing
development activities on the next generation of the
full ODM product, a wireless transmission product, in
close collaboration with our long-term global blue-
chip healthcare customer. We also continued, in close
cooperation with existing RTX customers, development
on a new wireless product solutions aimed at increasing
the ease of installation of wireless monitoring systems
for healthcare.
RTX’s Healthcare segment saw solid growth in
2021/22. The growth was partly driven by higher
volumes of the full ODM products supplied to our
global blue-chip healthcare customer and partly driven
by higher volumes of the modules and accessories
supplied by RTX. The segment was also impacted by
increasing component costs, the global component
shortages and other supply chain challenges, though
the situation improved towards the end of 2021/22.
Healthcare growth strategy
RTX aims to expand our existing Healthcare business,
currently focused on wireless solutions for centralized
continuous patient monitoring, by both broadening and
deepening our offerings and presence in continuous
patient monitoring.
This is to be accomplished by focusing on three differ-
ent but interrelated dimensions:
• Continued expansion of our existing centralized
continuous patient monitoring business, including
increased share-of-wallet with our long-term blue-
chip healthcare customer.
• Expanding share of value chain via broadened port-
folio and increased production of subassemblies and
infrastructure.
• Expansion into decentralized continuous patient
monitoring.
Ensuring effective
critical patient care
RTX Healthcare systems constitute
an infrastructure of access points,
repeaters, and modules to integrate
within devices such as patient-worn
devices and near-patient monitors. The
system is based on a technology that
supports secure handling of data to
provide enhanced reliable connections
and reduce downtime in hospitals and
other healthcare settings. By allowing
concurrent measurement over a single
connection, the system provides a
wireless connection handling data types
such as; heart rate, blood pressure,
body temperature, and ECG, as well
as side-channel information, such as;
signal strength, battery levels, etc.,
at the same time. The system is ideal
for effective patient monitoring in all
aspects of healthcare. As healthcare
staff is provided with patient data at all
times, the individuals can act on alarms
and oversee the patient to secure
effective care.
5-year Healthcare revenue
DKK million
Share of
Group revenue
2021/22
Healthcare
19
RTX Annual Report 2021/22 Business, Strategy and Outlook
Outlook 2022/23
Revenue growth is expected in 2022/23 based on a strong order book and
a partial normalization of the global component shortages. Macroeconomic
volatility creates uncertainty regarding demand, and component costs are
expected to remain at a high level. As opposed to recent years, 2022/23 is not
expected to be backloaded.
Revenue Outlook
Revenue is expected to grow and reach DKK 700-760
million in 2022/23. The revenue outlook is based on a
strong order book going into the year and an expecta-
tion of a partial normalization of the global electronics
component shortages seen since 2021. The main
uncertainty for the year will be the impact of macroe-
conomic volatility and potential recessions on customer
demand and inventory replenishment. The revenue
expectation is based on and subject to the following
assumptions:
• While macroeconomic uncertainty is assumed to be
high in the outlook for 2022/23 and also have some
impact on RTX, it is not assumed that it will lead to
larger decreases in customer demand 2022/23.
• Improved product availability compared to 2021/22
with a partial normalization of the global component
shortages and other supply chain challenges seen in
2021/22.
• RTX growth mainly driven by product sales and
mainly to existing customers.
• Currency exchange rates against DKK – especially
USD/DKK – in line with current level (11 November
2022).
• No impact on product availability due to geopolitical
upheaval or COVID-19 related lockdowns and no
major demand impact from COVID-19 lockdowns.
700-760
DKKm
Revenue expectation for
2022/23 based on a strong
order book and an assumed
partial normalization of the
global electronics component
shortages, however with
uncertainty regarding demand
due to the macroeconomic
volatility.
Forward-looking
statements
This Annual Report includes forward-looking
statements on various matters such as future
product development, future expected reve-
nue and earnings as well as future strategies
and potential business expansion. Such state-
ments are subject to risks and uncertainties
as various factors, many of which are outside
the control of RTX, may cause the actual
development and results to differ materially
from the expectations expressed directly or
indirectly in this Annual Report. Such factors
include, but are not limited to, economic and
geopolitical conditions and developments,
changes in demand for RTX’s products and
services, competition, technological changes,
fluctuations in currencies and interest rates,
component availability and fluctuations in
sub-contractor supplies as well as legislative
and/or regulatory changes.
Outlook 2021/22
20
RTX Annual Report 2021/22 Business, Strategy and Outlook
85-105
DKKm
2022/23 EBITDA expecta-
tion based on the revenue
expectation and component
costs at a relatively high but
stable level and a higher
share of revenue from
product sales.
• No other material changes in competitive situation,
market landscape etc.
As the normalization of the supply situation and thus
improved product availability is expected to continue
in the beginning of 2022/23, the revenue and earnings
distribution over 2022/23 is not expected to be back-
loaded as it has been in recent years.
Earnings outlook
EBITDA is expected to be DKK 85-105 million and
EBIT is expected to be DKK 45-65 million in 2022/23.
These expectations are based on the revenue outlook
above. They are also based on and subject to the same
assumptions as the revenue outlook with the addition
of the following assumptions:
• Component and logistic costs overall are not
assumed to increase as the effects of inflationary
pressures are expected to be neutralized by lower
costs for securing components through spot buys
and a price normalization for certain electronics
components.
FX (USD) sensitivity
Average USD/DKK rate 2021/22 6.88
Current USD/DKK rate (11 Nov 2022) 7.22
Impact of 5% USD/DKK rate increase on
Revenue DKK 34 to 37 million
EBITDA and EBIT DKK 15 to 17 million
• The revenue mix will continue to shift towards prod-
uct sales which in turn impacts gross margin.
• Higher capacity costs are expected due to infla-
tionary pressures and due to investments into e.g.
product management, sourcing, and specialized
R&D capabilities.
As mentioned for the revenue outlook, earnings are also
not expected to be backloaded this year as opposed to
what they have been in recent years.
Main sensitivities
While different outcomes on one or more of the
assumptions stated for the outlook for 2022/23 can
cause the actual financial results of RTX to differ from
the outlook, the outlook is subject to unusually high un-
certainty related to the demand impact of the macroe-
conomic conditions and the risk of recession. Second-
arily, the outlook is subject to uncertainty related to the
supply situation, especially if the component shortages
do not normalize and/or if component costs continue
to increase also in 2022/23. Lastly the USD/DKK
exchange rate can impact the actual results in 2021/22
if its deviates materially from expectations.
Outlook 2022/23
(DKK million)
Actual
2021/22
Outlook
2022/23
Revenue 663 700-760
EBITDA 85 85-105
EBIT 46 45-65
21
RTX Annual Report 2021/22 Business, Strategy and Outlook
Long-Term
Financial Ambitions
The growth strategy of RTX is expected to lead to continued
profitable growth and RTX confirms our long-term financial ambitions
for the financial year 2023/24.
Revenue ambition
Based on the strategy of deploying RTX’s “wireless wis-
dom” in selected B2B target markets for growth via re-
curring revenue, and based on execution of long-stand-
ing and newer framework agreements, it is the ambition
of RTX to grow revenues organically to reach at least
DKK 800 million in the financial year 2023/24.
Earnings ambition
Given the long-term revenue growth ambitions and
given the leverage effect of increased recurring revenue
on the scalability of human resources and other costs,
it is the ambition of RTX to reach EBITDA of at least
DKK 145 million in 2023/24.
Current status
The strong growth of RTX after the pandemic under-
lines the growth potential in the business model of RTX
and re-confirms the belief in realizing the ambitions
for 2023/24, subject to the assumptions below. With
realized revenue in 2021/22 of DKK 663 million the
ambitions for 2023/24 corresponds to an average
annual revenue growth rate of approximately 10%.
To realize the earnings ambition, a full or partial nor-
malization of component costs will be necessary given
the higher than usual costs for securing component in
2021/22. If such a normalization should not occur, a
higher revenue will be needed to realize the earnings
ambition. With realized EBITDA in 2021/22 of DKK 85
million the ambitions for 2023/24 corresponds to an av-
erage annual EBITDA growth rate of approximately 32%.
Profitability
EBITDA >
145 DKKm
in 2023/24
Organic revenue growth
Revenue >
800 DKKm
in 2023/24
Assumptions
The long-term financial ambitions are based on
constant currencies with the ambitions being
especially sensitive to the USD/DKK exchange
rate. They are also based on the current mac-
roeconomic and political climate, where major
developments may impact the ambitions. Spe-
cifically, it is expected that potential recessions
do not have a large impact on customer de-
mand in 2023/24 and that COVID-19 and the
resulting global economic consequences will
have no material effect on demand and supply
in 2023/24. Further, it is expected that the
global component shortages and supply chain
and logistic impediments will normalize at least
before 2023/24. The ambitions are also based
on component costs returning to their long-
term trend lines (i.e., that the increased costs
seen on certain components normalize before
2023/24).
Long-Term Financial Ambitions
22
RTX Annual Report 2021/22 Business, Strategy and Outlook
2021/222017/18 2018/19 2019/20 2020/21
0
100
200
300
400
500
600
700
800
2021/222017/18 2018/19 2019/20 2020/21
70
75
80
85
90
95
100
2021/222017/18 2018/19 2019/20 2020/21
0
50
100
150
200
250
300
350
0
10
20
30
40
50
60
2021/22 Performance
RTX returned to our growth track in 2021/22 with 45% revenue growth
leading to significantly higher earnings. Both revenue and earnings were
stronger than the original expectations for the year.
Revenue
The RTX Group revenue increased by 45% and reached
DKK 663 million in 2021/22, (2020/21: DKK 457
million). The post-pandemic normalization of demand
continued in 2021/22 and the order book developed
stronger than originally expected. Revenue was nega-
tively impacted by the global electronics component
shortage and supply chain impediments affecting the
global flow of goods. However, the situation began to
improve towards the end of the financial year. The US
dollar strengthened over 2021/22 and contributed to
the growth – FX corrected growth was 30%.
The revenue realized in 2021/22 exceeded the original
expectations and the revenue outlook was therefore
upgraded twice during 2021/22. A strong demand
situation and order book especially in the Enterprise
segment were key reasons behind the higher than ex-
pected revenue. Towards the end of the financial year, a
stronger than expected delivery performance driven by
a beginning improvement in the situation with compo-
nent scarcity also contributed to the revenue realized.
In the beginning of the year, the supply situation with
component scarcity worsened which caused increas-
es in postponed revenue from one quarter into the
next, but the situation improved later in the financial
year. All in all, revenue of approx. DKK 65 million was
postponed from 2021/22 into 2022/23 – an increase
from approx. DKK 45 million postponed from 2020/21
into 2021/22 and therefore a net negative impact of
approx. DKK 20 million on revenue in 2021/22.
The deplorable Russian invasion of Ukraine has not had
any direct impact on 2021/22 for the Group. RTX has
not had any material business relations with Russia,
Belarus and Ukraine and has ceased all sales to Russia
and Belarus which has only accounted for 0.1% of reve-
nue in recent years.
Revenue by segment
(DKK million)
Healthcare
ProAudio
Enterprise
Recurring revenue streams, products and royalty
(% of total revenue)
Share of revenue from product
sales and royalty
Gross profit
(DKK million) (%)
Gross Profit
Gross margin (%)
2021/22 Performance
24
RTX Annual Report 2021/22 Performance
2021/222017/18 2018/19 2019/20 2020/21
0
50
100
150
200
250
300
350
46.6% compared to 52.3% in the previous financial
year. The gross margin development is impacted by the
revenue mix with a lower share of revenue from engi-
neering services, which is as planned given the Group’s
strategy to focus on generating recurring revenue from
product sales.
Further, the margin is impacted by the tight component
markets in 2021/22 with scarcity on especially semi-
conductors but also on other electronics components.
These tight component markets have impacted the re-
alized product mix given the specific component short-
ages in the year, and they have caused higher compo-
nent costs in the year both via higher general prices and
via higher costs for securing components through e.g.
spot buys. Finally, the tight component markets have
also led to customers paying for the additional costs to
secure certain components, however such additional
payments yield approximately zero margin for RTX.
Capacity costs
Capacity costs (staff costs and other external expens-
es) amounted to DKK 240 million in 2021/22 – an
increase from DKK 227 million in 2020/21. The average
total headcount of 282 in 2021/22 was close to 286 in
2020/21. Towards the end of 2021/22, RTX has added
capacity and capabilities and has grown the number
Employees
(FTEs)
Average FTEs
(no.)
RTX revenue in the Enterprise segment amounted to
DKK 493 million and increased by 60% over last year
(2020/21: DKK 308 million). The significant growth is
due to strong demand for RTX products and solutions
in the segment and is especially driven by strong growth
among the large framework agreement customers.
Corrected for the FX impact of the stronger US dollar,
revenue in 2021/22 increased by 44%.
In the ProAudio segment, RTX posted revenue of
DKK 114 million – an increase of 11% (2020/21: DKK
102 million). Recurring revenue from product sales
increased in the segment after the COVID-19 pan-
demic while revenue from one-off engineering services
declined in line with the strategy to focus on generating
recurring revenue. Corrected for the stronger US dollar,
the two opposite developments in revenue from prod-
uct sales and engineering services combined to yield a
close to flat revenue development with FX corrected
revenue growth of -4%.
Healthcare revenue increased by 20% to DKK 56
million in 2021/22 (2020/21: DKK 47 million). The
growth is driven by growth in revenue from the full
ODM products and secondarily from the wireless
modules supplied by RTX in the segment. FX corrected
revenue growth was 10%.
Gross profit
Driven by the higher revenue in 2021/22, the gross
profit of RTX increased to DKK 309 million (2020/21:
DKK 239 million). The gross margin in 2021/22 was
Revenue 2021/22
Enterprise (DKK)
493 million
ProAudio (DKK)
114 million
Healthcare (DKK)
56 million
Financial expectations and results 2021/22
(DKK million)
Realized
2
nd
updated guidance
19 Sep 2022
1
st
updated guidance
7 Jul 2022
Original guidance
30 Nov 2021
Revenue 663 Around 650 550-610 Above 520
EBITDA 85 Around 80 50-70 Above 50
EBIT 46 Around 40 10-30 Above 10
25
RTX Annual Report 2021/22 Performance
2021/222017/18 2018/19 2019/20 2020/21
0
20
40
60
80
100
120
0
3
6
9
12
15
18
2021/222017/18 2018/19 2019/20 2020/21
0
20
40
60
80
100
0
4
8
12
16
20
2021/222017/18 2018/19 2019/20 2020/21
0
2
4
6
8
10
which are recorded directly in the balance sheet and are
thus not capitalized through the P&L statement.
The level of R&D costs reflects RTX’s strategy to create
increased recurring revenue by turning the Group’s wire-
less and audio capabilities into products and product
platforms. In line with this strategy, depreciation, amorti-
zation and impairment, as expected, increased to DKK
40 million (2020/21: DKK 31 million) of which 15 million
were depreciations (2020/21: DKK 13 million) and 25
million were amortizations and impairment (2020/21:
DKK 18 million in amortizations and impairment).
Operating profits – EBITDA and EBIT
RTX earnings increased substantially in 2021/22 driven
by the revenue growth. EBITDA increased by 129% to
DKK 85 million (2020/21: DKK 37 million) correspond-
ing to an EBITDA margin of 12.9% (2020/21: 8.2%).
EBIT increased by 653% to DKK 46 million (2020/21:
DKK 6 million) also impacted by the higher depreciation
and amortization as a result of the increased in-house
development of products and product platforms over
the latest years.
Financial items, tax, net profit and EPS
Net financials amounted to an expense of DKK 3
million in 2021/22 compared to an expense of DKK
7 million in 2020/21. The net expense was primarily
caused by the fair value adjustment of investments in
the trading portfolio due to the increasing interest rates
on bonds over the year and by the calculated financing
EBITDA and EBITDA margin
(DKK million) (%)
EBITDA
EBITDA margin
EBIT and EBIT margin
(DKK million) (%)
EBIT
EBIT margin
of employees from 280 FTEs at the end of 2020/21
to now 294 at the end of 2021/22. Hereof 194 are
employed in Denmark (2020/21: 183) and 100 are em-
ployed internationally (2020/21: 97). Employee bonus
costs are higher in 2021/22 than last year where no bo-
nusses were earned due to the financial performance.
External costs for development work assisted by hired-
in consultants (as freelancers or via outsourcing to e.g.
Eastern Europe) increased in 2021/22 to add R&D ca-
pacity in tight recruiting markets. Compared to last year,
costs for utilities increased and there were additional
costs for a new RTX website and additional IT equip-
ment and licenses. Also, costs for travel and fairs began
to normalize somewhat in 2021/22 after COVID-19.
Capitalized development projects,
depreciation and amortization
During 2021/22, RTX has continued to invest in the
development of product platforms and solutions for the
various segments – including, for instance, cloud-based
deployment and administration tools, ProAudio product
platforms, updated Enterprise handsets and product
development for the Healthcare segment. Development
costs of DKK 16 million were capitalized in 2021/22
compared to DKK 25 million in 2020/21. The level of
capitalized development costs in 2021/22 is lower due
to a slower start of certain new development projects
impacting Q1 2021/22 capitalizations, due to a high fo-
cus on direct customer related development tasks and
due to a part of the development work being assisted
by external consultants (instead of inhouse resources)
Earnings per share (EPS)
(DKK per share)
Earnings per share
(EPS)
26
RTX Annual Report 2021/22 Performance
2021/222017/18 2018/19 2019/20 2020/21
-20
0
20
40
60
80
100
120
cost element from capitalized leases according to IFRS
16. Conversely, the strengthening of the US dollar in
2021/22 increased exchange rate gains partially offset
by the value developments of the Group’s FX hedging
arrangements.
Given the net financials and taxes recognized, net profit
after tax amounted to DKK 34 million (2020/21: DKK 4
million). Therefore, Earnings per Share (EPS) increased
to DKK 4.2 in 2021/22 compared to DKK 0.4 last year.
Cash flow
Cash flow from operations (CFFO) in 2021/22 were
impacted by increased working capital with increased
receivables due to the revenue growth and with signif-
icantly increased inventories. The higher inventories
are due to higher finished goods inventory with more
goods in transit towards customers and due to higher
component buffer stocks for key components where
possible due to the tight component markets. The
higher earnings and the higher working capital largely
cancelled each other out and yielded CFFO of DKK 0
million in 2021/22 (2020/21: DKK 45 million). The
operating cash flows generated were re-invested into
future growth via investments in capitalized develop-
ment projects and fixed assets for a total amount of
DKK 30 million (2020/21: DKK 40 million).
Assets, equity and liabilities
The total assets of RTX amounted to DKK 557 million
at the end of 2021/22 (2020/21: DKK 485 million).
Receivables are higher than last year with the higher
revenue in Q4 and inventories are significantly higher
both for finished goods in transit towards customers
and component buffer stocks. The Group’s total net
liquidity position (total cash funds plus current securi-
ties less bank debt) decreased to DKK 74 million at the
end of 2021/22 (2020/21: DKK 120 million) positively
impacted by the earnings in 2021/22 and negatively
impacted by increased working capital and by invest-
ments into development projects and fixed assets.
At the end of 2021/22, total equity was DKK 332
million (2020/21: DKK 289 million) corresponding to
an equity ratio of 59.6% (2020/21: 59.5%). RTX thus
continues to have a strong balance sheet and a strong
cash position. Trade payables are higher than last year
due to the increased activity level. Other payables are
lower due to additional payments of salary taxes etc. in
2021/22 after the postponements hereof in 2020/21
as part of the liquidity enhancing schemes enacted by
the Danish government to counteract COVID-19.
The Group’s return on invested capital (ROIC) in-
creased significantly in 2021/22 to 26% compared to
11% in 2020/21 due to the higher earnings.
Parent company
The comments above relates to the development and
performance of the Group. The development and perfor-
mance of the parent company, RTX A/S, are in all mate-
rial aspects similar to the descriptions for the Group.
Cash flow from operations (CFFO)
(DKK million)
Cash flow from operations
(CFFO)
2021/222017/18 2018/19 2019/20 2020/21
0
20
40
60
80
Return on invested capital (ROIC)
(%)
Return on invested capital
(ROIC)
2021/222017/18 2018/19 2019/20 2020/21
0
50
100
150
200
250
300
350
400
Equity
(DKK million)
Equity
27
RTX Annual Report 2021/22 Performance
Quarterly Financial Highlights
Q4 2021/22 – record quarter to end the year
RTX revenue increased by 27.4% in Q4 2021/22 to DKK 237.8 million (Q4
2020/21: DKK 186.8 million). FX corrected revenue growth in Q4 was 8.5% com-
pared to last year. The revenue growth in Q4 was driven by the Enterprise segment
with growth of 42.7%, while ProAudio segment revenue decreased by 14.8% and
Healthcare revenue increased by 1.0 % in Q4.
The component scarcity in the global electronics industry still impacted revenue,
however, the scarcity showed signs of improving in Q4 2021/22. Therefore, revenue
of approx. DKK 65 million was postponed from Q4 2021/22 into Q1 2022/23.
As similar supply challenges had postponed revenue of approx. DKK 90 million from
Q3 into Q4, the net effect on Q4 2021/22 from supply challenges was a positive
revenue impact of approx. DKK 25 million.
The gross margin in Q4 2021/22 amounted to 46.3% compared to 52.5% in Q4
last year due to a lower share of revenue from engineering services, due to higher
component costs including costs for spot buys, and due to customer payments for
extraordinarily expensive components at zero margin for RTX. Capacity costs in Q4
amounted to DKK 61.1 million compared to DKK 50.8 million in Q4 2020/21 with
a higher provision for staff bonuses than last year due to the stronger than expected
full year financial performance and with higher costs for travel, fairs, utilities and IT
equipment and licenses.
With the higher revenue and lower gross margin, EBITDA increased by 5.1% to DKK
52.6 million in Q4 2021/22 (Q4 2020/21: DKK 50.0 million). EBIT amounted to
DKK 42.8 million in Q4 (Q4 2020/21 DKK 39.7 million).
2021/22 2020/21
Amounts in DKK million Q1 Q2 Q3 Q4 Full year Q1 Q2 Q3 Q4 Full year
Income statement items
Revenue 126.4 134.3 164.8 237.8 663.3 61.3 88.5 120.6 186.7 457.2
Gross Profit 60.3 67.0 71.9 110.1 309.3 30.5 49.8 60.8 98.0 239.1
EBITDA 5.0 11.7 16.1 52.6 85.4 -18.8 -4.0 10.1 50.0 37.3
EBTIDA % 4.0% 8.7% 9.7% 22.1% 12.9% -30.6% -4.5% 8.3% 26.8% 8.2%
Operating profit/loss (EBIT) -4.8 1.7 5.9 42.8 45.6 -25.3 -11.3 3.0 39.7 6.1
Net financials 0.7 -4.4 -4.1 4.4 -3.4 -2.0 -3.0 -1.1 -0.5 -6.6
Profit/loss before tax -4.1 -2.7 1.8 47.3 42.3 -27.3 -14.3 1.9 39.1 -0.6
Profit/loss for the year -3.2 -2.3 1.4 38.0 33.9 -21.4 -11.3 1.4 34.9 3.6
Segment information
Enterprise revenue 89.8 84.0 131.3 188.0 493.1 35.5 58.6 82.1 131.7 307.9
ProAudio revenue 25.6 35.2 22.6 30.7 114.1 19.1 21.6 25.8 36.0 102.5
Healthcare revenue 11.1 15.1 10.8 19.1 56.1 6.8 8.4 12.7 18.9 46.8
Balance sheet items
Cash and current
asset investments 128.6 118.3 104.2 73.8 73.8 207.0 123.3 117.8 120.4 120.4
Total assets 475.3 471.7 512.7 556.8 556.8 470.4 415.6 436.1 485.3 485.3
Equity 287.6 286.8 290.9 331.6 331.6 323.2 268.5 257.2 288.5 288.5
Liabilities 187.8 185.0 221.9 225.2 225.2 147.1 147.1 178.8 196.8 196.8
Cash flow items
Cash flow from operations 14.3 6.6 -0.2 -20.7 -0.0 30.7 -20.8 22.1 12.5 44.5
Paid dividend 0.0 0.0 0.0 0.0 0.0 0.0 -20.7 0.0 0.0 -20.7
Acquisition of treasury shares 0.0 0.0 0.0 0.0 0.0 -7.0 -23.8 -14.0 -5.2 -50.0
Quarterly Financial Highlights
28
RTX Annual Report 2021/22 Performance
29
RTX Annual Report 2021/22 Performance
Capital Structure
and Allocation
Maintaining flexibility to invest into growth opportunities,
displaying robustness for long-term framework agreements
and optimizing return for shareholders.
Capital Allocation Policy
As stated in the Group’s capital policy, the guiding
principle for RTX’s capital allocation and structure is
to (i) maintain sufficient financial flexibility to realize
RTX’s strategic objectives including investments into
growth opportunities as well as balance sheet robust-
ness needed for long term framework agreements and
needed to support operations, while at the same time
(ii) ensuring a financial structure maximizing the return
for our shareholders. Therefore, any excess capital
after the funding of growth opportunities and after
ensuring such robustness should be returned to share-
holders. RTX targets a net liquidity position (total cash
funds plus current securities less any bank debt) of
approximately 25-30% of revenues; interim deviations
to the target cash level can occur depending on specific
growth opportunities or other operational or strategic
considerations.
Subject to the guiding principle for the capital struc-
ture, RTX aims to pay out a dividend corresponding to
approximately 25-35% of the annual net results (i.e.
profit for the year after tax) and will initiate share buy-
back programs when deemed appropriate and contin-
gent upon authorization granted by the shareholders.
RTX strives to maintain a reasonable balance between
distributions to shareholders via dividends and via share
buy-back programs, however modifications to the capi-
tal structure will primarily be done via share buy-backs.
Depending on the growth opportunities at hand or other
Capital Structure and Allocation
30
RTX Annual Report 2021/22 Performance
0
10
20
30
40
50
60
70
80
2021/22
Proposed 2023
2017/18 2018/19 2019/20 2020/21
operational or strategic considerations, RTX may devi-
ate from the above payout ratio in a specific year.
RTX has a net liquidity position of DKK 74 million at the
end of 2021/22 corresponding to 11% of revenue in
2021/22. While the net liquidity position is impacted
by the higher working capital in 2021/22 (inventories
and receivables) which have helped to secure the
strong growth of RTX in the year, the liquidity remains
solid and is expected to be brought back to the target
position for net liquidity according to the capital policy
gradually over the coming financial years.
Dividends and share buy-back
In recent years, RTX has paid out significant distri-
butions to shareholders through dividends and share
buy-back programs. Given the financial performance
in the preceding financial year (2020/21) no dividends
for 2020/21 were paid out and a new share buy-back
program was not commenced.
The Board of Directors will monitor
developments during 2022/23 and
intends – if the actual developments
are in line with the expectations – to
initiate a share buy-back program
during 2022/23.
Distribution to shareholders
2021/22 2020/21
Dividends per share (DKK) 0.00* 0.00
Dividends, total (DKK million) 0.0* 0.0
Pay-out ratio (%) 0.0%* 0.0%
Share buy-back (DKK million) 0.0 50.0
* Based on recommended dividend
Dividend payments and share buy-backs
(DKK million)
Dividends paid Share Buy-Back
To proceed with caution in light of the macroeconomic
uncertainty and the liquidity position of RTX, the Board
of Directors will recommend to the Annual General
Meeting in January 2023 that no dividends be distrib-
uted based on the financial year 2021/22.
However, at the Annual General Meeting, the Board
of Directors will seek a new authorization to conduct
share buy-backs in the coming years when the current
authorization expires during January 2023 so that
the Board of Directors can initiate a share buy-back
program during 2022/23 if the circumstances warrant
this.
Capital structure adjusted in 2021/22
To adjust and optimize the capital structure of RTX, the
share capital was reduced during 2021/22 by nominal
DKK 875,000 via cancellation of 175,000 treasury
shares acquired through share buy-back programs. The
capital reduction was decided by the general meeting
in 2022 and was completed and registered on 7 April
2022 (cf. company announcement 10/2022).
31
RTX Annual Report 2021/22 Performance
Our Sustainability
Focus
At RTX, we strive to act responsibly in all we do, and by doing
so we want to contribute to a sustainable future for our society.
We base our approach on our commitment to the ten principles
of the UN Global Compact and the UN’s 17 Sustainable
Development Goals.
RTX develops and delivers wireless communication
solutions that help people perform at their best. In
addition to the direct benefits of wireless interconnec-
tivity, such solutions can contribute to a sustainable
global development by reducing the need for travel and
the need for physical infrastructure such as cables etc.
But we recognize that our impact on people, environ-
ment and communities across the globe is broader
than the direct impact of our wireless solutions. We
therefore constantly strive for reducing any potential
harm, while at the same time maximizing the benefits
for our stakeholders.
Corporate social responsibility (CSR) is an integral
part of the way we work at RTX. We have aligned our
business priorities and values with the ten principles of
the United Nations Global Compact (UNGC) and the
UN Sustainable Development Goals. For several years,
we have reported on CSR by way of a Communication
of Progress (COP) and we report in compliance with
sections 99a, 99b and 107 of the Danish Financial
Statements Act.
Our CSR approach
Our approach to sustainability is based on the belief
that, as a business, RTX influences and impacts peo-
ple, environments and communities around the globe
and we must always act responsibly in this regard. The
starting points for our CSR approach and efforts are
our commitment to the UN Global Compact and to the
UN Sustainable Development Goals most relevant for
RTX as well as to an assessment of which CSR issues
and risks are most material to RTX and to our stake-
holders.
The focus for our sustainability due diligence and risk
management is related to the areas with the highest
materiality to our stakeholders and to RTX. Our annual
CSR/ESG report for 2021/22 (which is also our COP
report for 2022) details our policies for handling CSR
issues and risks including due diligence, risk manage-
ment, CSR-related actions and KPIs especially for the
CSR issues and risks with the highest materiality.
Focus areas and activities
The most material CSR issues identified include
product safety, REACH, RoHS, traceability, supply
Further reading
Our separate CSR and ESG report
which also serves as our Commu-
nication on Progress (COP) and
which reports in compliance with
sections 99a, 99b, 107d of the
Danish Financial Statements Act can
be downloaded from RTX’s website:
www.rtx.dk/corporate/csr
CSR and ESG
Corporate Social
Responsibility
and ESG report
2022 COP Report for RTX Group
CVR NO. 17 00 21 47
32
RTX Annual Report 2021/22 Performance
CSR AND ESG REPORTING
KPI Unit 2021/22 2020/21
Environment data
Energy consumption (absolute) MWh 707 723
Energy consumption (relative) MWh/average FTE 2.51 2.53
Scope 1 carbon emissions (absolute)
(1)
CO
2
e tons 26.8 22.9
Scope 2 carbon emissions (location-based, absolute)
(1)
CO
2
e tons 523.8 519.6
Scope 2 carbon emissions (market-based, absolute)
(1)
CO
2
e tons 648.4 677.9
Scope 1 and 2 carbon emissions (relative)
(1)
CO
2
e tons/average FTE 1.93 1.84
Social data
Employee absence ratio % 2.5 1.1
Employee turnover ratio % 13.6 13.6
Gender diversity
Women as share of all employees % 20 17
Women as share of Group Executive Management % 0 0
Women as share of Board of Directors (elected by AGM) % 33 0
Governance data
Whistleblower reports no. 0 0
Attendance at ordinary board meetings % 98 98
Attendance at extraordinary board meetings % 88 100
(1)
Measured for 2021 and 2020 respectively
chain management and employee working conditions.
We have standardized processes for handling product
safety and product regulations as well as materials
and components used. A significant part of RTX’s CSR
footprint occurs throughout our supply chain as man-
ufacturing is outsourced to suppliers and we therefore
work on CSR issues together with our supply chain. Our
Code of Conduct for suppliers is central to this work
and outlines our expectations to suppliers on a range
of CSR issues based on the principles of the UN Global
Compact. CSR compliance is an important parameter
in supplier selection.
The welfare of our employees and their working condi-
tions are other highly material CSR issues for RTX. We
conduct annual employee satisfaction surveys which
in general display high satisfaction, and we measure
and follow up on KPIs such as employee absence and
employee turnover.
Other material CSR issues include corporate gov-
ernance, diversity, environmentally friendly products
and sustainable packaging. We also measure our CO
2
emissions according to the Greenhouse Gas Protocol
and report this measurement to the Carbon Disclosure
Project (CDP).
During 2021/22, we have taken a variety of actions to
continue to advance our sustainability agenda. We have
decreased our electricity consumption and have fo-
cussed on LED lighting, motion sensors and innovative
lighting to reduce the consumption. We have continued
our work on making our packaging more sustainable
by reducing surplus packaging space allowing for more
sustainable transportation and by substituting plastic
bags inside the packaging with sustainable cardboard
boxes. The female share of board members elected by
the annual general meeting increased to 33% during
the year and thus met our target for the representa-
tion of the under-represented gender on our Board of
Directors. We have now set a new and more ambitious
target. Regarding corporate governance, we also adopt-
ed an updated tax policy and a new data ethics policy.
0
Whistleblower
reports
2.5%
Employee
absence ratio
707 MWh
Energy consumption
(absolute)
33
RTX Annual Report 2021/22 Performance
Corporate Governance
Ensuring the active, transparent and accountable management of RTX as well
as compliance with applicable legislation, rules and recommendations.
Governance model
RTX’s corporate governance framework is based on
a two-tier system in which the Board of Directors
and Group Executive Management together form the
governing body of RTX but have two distinct roles.
The ultimate authority over the company rests with
the shareholders at the annual general meeting. Rules
and deadlines applying to annual general meetings are
stipulated in the Articles of Association of RTX, which
are available at www.rtx.dk.
The Board of Directors appoints and controls the
Executive Board and Group Executive Management
and defines the overall strategy and objectives in close
collaboration with Group Executive Management. The
Executive Board and Group Executive Management are
responsible for the operational and tactical manage-
ment of the company, for ensuring progress on the
outlined strategic direction, for daily risk management
and for ensuring compliance with relevant legislation
and procedures as well as for submitting reports on
performance, strategy and budget suggestions etc.
to the Board of Directors. At present, the Executive
Board consists of two members and Group Executive
Management consists of six members (including the
Executive Board).
Composition of Board of Directors
The Board of Directors consists of nine members, six of
which are elected at the annual general meeting. Share-
holder-elected members are elected individually and
for terms of one year and may stand for re-election.
The number of board members and the composition
of the board, in terms of professional experience and
relevant competencies is considered by the Chair and
Deputy Chair as well as by the full Board of Directors
on an ongoing basis and is considered to be appropri-
ate. The competencies of the members of the Board
of Directors cover, among others, general international
management as well as business development, sales,
operations, technology, R&D and financial management
in a variety of industries relevant to RTX.
During 2021/22, two new members were elected to
the Board of Directors – Ellen Andersen and Katja
Millard – replacing Christian Engsted who did not seek
re-election. Through these new members the board
added further competencies within areas such as
management of IT, IoT, digital development as well as
sales, marketing, and product development within the
hardware and electronics industries.
RTX governance model
Shareholders
Executive Board
Chairmanship
Audit Committee
Independent Auditor
Nomination & Remuneration Committee
Board of Directors
Find more information on the
Board of Directors and the
Executive Management on our
website: www.rtx.dk
Corporate Governance
Read more
35
RTX Annual Report 2021/22 Governance
Board committees
The Audit Committee of RTX operates according to its
terms of reference approved by the Board of Directors
and refers to the Board of Directors. Four Audit Com-
mittee meetings are held per year and the committee
consists of three members. The main tasks of the
Audit Committee are to supervise financial reporting,
accounting policies and estimates, internal controls,
risk management, overseeing any whistleblower
reports, external audit and to recommend to the Board
of Directors the approval of financial statements and
the appointment of external auditors. During the year,
the Audit Committee additionally focused specifically
on CSR and ESG reporting, IT and cyber security and
risks, the updated tax policy, as well as a new policy on
data ethics. In 2021/22, there have been no incidents
reported to RTX’s whistleblower system.
The Nomination & Remuneration Committee refers to
the Board of Directors. The Nomination and Remuner-
ation Committee consists of two members. The main
tasks of the committee include succession planning at
the Board of Directors and Group Executive Man-
agement levels, suggesting appropriate management
remuneration and incentive programs and planning the
evaluation process of the Board of Directors.
Recommendations on corporate governance
In general, RTX complies with the Danish Recommen-
dations on Corporate Governance. The recommenda-
tions applicable for the financial year 2021/22 were
issued on 2 December 2020, and it is the first RTX
reporting period for which these newest recommenda-
tions are applicable.
RTX complies with all of the 40 recommendations of
the Danish Committee on Corporate Governance in
2021/22. In connection with the annual report, RTX
publishes the statutory report on corporate govern-
ance, cf. section 107b of the Danish Financial State-
ments Act. The full statutory report is available at:
www.rtx.dk/CorporateGovernance.
Remuneration
Remuneration of the Board of Directors and the Exec-
utive Board is carried out in accordance with the RTX
Remuneration Policy as adopted at the Annual General
Meeting in 2020. As stated in the Remuneration Policy,
the overall objectives of the policy are to attract, moti-
vate and retain qualified members of management; to
ensure alignment of interests between management,
Pursuant to the Danish Companies Act, three addi-
tional board members are elected by the employees
for a term of four years with the latest election held in
January 2019. The employee representatives serving on
the board hold the same rights and obligations as the
shareholder-elected members.
The Board of Directors conducts a self-evaluation of
the work in the board and of the cooperation between
the Board of Directors and the Executive Board. This
evaluation was carried out with external assistance dur-
ing the autumn of 2020 and is followed up by internal
evaluations by the board. The result of these evalua-
tions did not give rise to any significant observations
and validated the appropriateness of the composition
of the Board of Directors.
Board meetings
At least four ordinary board meetings are held per
year. In 2021/22, seven ordinary board meetings were
held. Extraordinary board meetings are held according
to need. In 2021/22, a total of ten board meetings
were held. The attendance of board members at board
meetings in 2021/22 was 98% of full attendance at
ordinary board meetings and 88% of full attendance at
extraordinary board meetings. One of the board meet-
ings is the annual strategy seminar where the Board of
Directors has in-depth discussions of and approves the
strategic direction and actions, both for RTX’s target
market segments and for the enabling functional areas
within RTX, based on presentations by Group Executive
Management.
RTX compliance with Danish
recommendations on corporate
governance
Complies with recommendation 40
Does not comply with recommendation 0
Board of Directors
2021/22 focus areas
Business and Strategy
• Review, discuss and
approve the Company’s
strategy plans
• Monitor and discuss market
developments
• Component scarcity and
supply chain challenges
• Monitor macroeconomic
impact (e.g. inflation)
• Financial performance,
reporting and budgets
• Capital structure and distri-
butions to shareholders
Governance and
Remuneration
• Risk management and
internal controls
• Selection of and dialogue
with external auditor
• Evaluating work in the
board and in executive
management
• Onboarding new board
members
• Executive remuneration
and incentive programs
• Updated tax policy
• New policy on data ethics
36
RTX Annual Report 2021/22 Governance
company and shareholders; and to promote long-term
value creation in RTX and support RTX’s business
strategy. To align interests for RTX’s shareholders and
management, and to meet both short-term and long-
term goals, the policy further defines appropriate limits
on incentive programs and longer-term share-based
remuneration programmes for management. The policy
is available at RTX’s website at www.rtx.dk/Remuner-
ationPolicy.
Remuneration of the Board of Directors and the Exec-
utive Board is reported in the separate RTX Remuner-
ation Report for 2021/22 prepared and published in
accordance with section 139b of the Danish Companies
Act. The report details remuneration of the Board of
Directors and the Executive Board. It also explains the
structure and performance criteria of incentive pro-
grams. The Remuneration Report is available at RTX’s
website at www.rtx.dk/RemunerationReport. At the
Annual General Meeting in 2022, the Remuneration
Report for 2020/21 was presented and approved in an
advisory vote. For details on the accounting treatment
of remuneration for the Board of Directors and the
Executive Board see note 2.4 later in this annual report.
Diversity
It is the objective of RTX to attract and retain highly
qualified and motivated employees, and RTX strives to
have a reasonable split between male and female can-
didates and employees, even though we operate in an
industry with a very high share of male candidates. RTX
encourages female and international applicants to apply
Further reading
Our separate reports on
Corporate Governance and
Remuneration are available
from RTX’s website:
CVR No.: 17 00 21 47
Remuneration Report
2021/22
Transforming
Wireless Wisdom
into Solutions
Remuneration report
Corporate Governance report
Corporate Governance
Financial Year: 1 October 2021 - 30 September 2022
Statutory report on Corporate Governance
According to section 107b of e Danish Financial Statements Act
CVR No.: 17 00 21 47
37
RTX Annual Report 2021/22 Governance
Corporate Social
Responsibility
and ESG report
2022 COP Report for RTX Group
CVR NO. 17 00 21 47
for vacant positions. RTX’s objective of minimum 20%
as the proportion of the under-represented gender (cur-
rently women) of the total shareholder-elected mem-
bers on the Board of Directors by 2024 was met already
in 2021/22. Currently 33% (2 of 6) shareholder-elected
members of the Board of Directors are female. With
the fulfilment of the previous objective, the Board of
Directors have set a new objective of 40% of the of
shareholder-elected members on the Board of Directors
being of the under-represented gender by 2026.
For further information regarding RTX’s policy and
objectives on diversity and for our report pursuant to
sections 99b (target for gender distribution) and 107d
(diversity) of the Danish Financial Statements Act,
please refer to our CSR and ESG report, which is avail-
able for download at www.rtx.dk/corporate/csr.
Data ethics
Statement on data ethics, cf. Section 99d of the Danish
Financial Statements Act.
During 2021/22, RTX has increased our focus on data
ethics and the Board of Directors has adopted a Data
Ethics Policy. The purpose of this new Data Ethics
Policy is to describe the principles under which RTX
works with ethical use of data and new technology as
well as to raise awareness of our data ethical principles.
Our Data Ethics Policy is available at RTX’s website at
RTX uses data related to employees, customers,
suppliers, and visitors to our website and it includes
both personal and non-personal data. Our data ethics
principles are based on security, transparency and
responsibility. During the year, RTX has upgraded its IT
security infrastructure and has updated employees’ un-
derstanding of potential cyber security threats in order
to strive to maintain a high level of IT security to protect
confidential information and personal data handled by
RTX against unauthorized use and publication. Also,
RTX strives to act responsibly by considering whether
any collection and processing of data is warranted and
legitimate and ensuring that it does not violate funda-
mental privacy or other rights. Further, RTX does not
sell any data to any third parties.
RTX will periodically review and revise our data ethics
principles to reflect evolving technologies, regulatory
requirements, stakeholder expectations and based on
an understanding of the risks and benefits to individuals
and society from the use and processing of data.
During 2021/22, the female
share of members on the RTX
Board of Directors elected by the
annual general meeting increased
from 0% to 33% (2 of 6) and
thus met our target. Subsequent-
ly, the Board of Directors has set
an even more ambitious target.
Read more about our
diversity policy and targets
in our CSR and ESG report.
Read more
38
RTX Annual Report 2021/22 Governance
39
RTX Annual Report 2021/22 Governance
Risk Management
Identifying, monitoring and mitigating risks are key parts of RTX’s governance model,
and the latest years have seen the emergence of a variety of risks – lockdowns,
component scarcity as well as macroeconomic and geopolitical instability.
RTX operates as an international provider of technolog-
ical ODM/OEM products and solutions and is therefore
exposed to various risks inherent to our business oper-
ations. Managing these risks is an integrated part of our
management activities.
At RTX, risks are defined as “an occurrence caused by
external or internal events which hinders us in meet-
ing our objectives”. The risk management approach is
based on risk identification and assessment followed
by defining mitigating actions and implementing those
mitigating actions which are deemed relevant and at-
tractive. Mitigating actions are planned and conducted
to decrease the likelihood of a risk occurring and/or to
decrease the impact of a risk if occurring.
Group Executive Management is responsible for re-
viewing the overall risk exposure of RTX on an ongoing
basis. Once risks have been identified, assessed and
mitigating actions defined, executive management
evaluates the risk exposure to ensure that appropriate
plans are in place. The Board of Directors is ultimately
responsible for risk management, and it has appoint-
ed the Audit Committee to supervise the risk profile
evaluation on a quarterly basis. Significant risks are re-
ported to the Board of Directors at least on a quarterly
basis. During 2021/22, risks stemming from the global
COVID-19 pandemic, from the global component and
supply chain challenges as well as from the significant
geopolitical and macroeconomic uncertainty have been
in particular focus in this process.
RTX takes out statutory insurances as well as the
insurances deemed to be relevant in order to eliminate
or reduce unwanted and insurable risks. At regular
intervals, RTX conducts a review of the insurances and
their coverage in cooperation with external advisers.
The Group’s insurances are reviewed periodically by the
Audit Committee.
The risk management process
The risk management process at RTX includes the
interlinked processes of risk identification, assess-
ment and mitigation managed by Group Executive
Management and reported to and supervised by the
Board of Directors.
For an overview of financial risks
and RTX’s handling of such refer
to note 5.6 to the financial state-
ments in this annual report.
Risk Management
Identification
Mitigation
Reporting Assessment
40
RTX Annual Report 2021/22 Governance
Lower Estimated likelihood Higher
Lower Potential Impact Higher
A
C
D
Partnerships
I
Cyber
Supply chain
B
Tech
G
HR
F
Politics
E
IPR
H
Macroeconomy
Components
Macroeconomy
Risk description Macroeconomic uncertainty and adverse economic conditions with low rates of eco-
nomic growth may lead to a reduced demand from end users and thereby from RTX’s
customers thus impacting the activity level and financial results of RTX.
Fluctuations in currency exchange rates – especially USD/DKK exchange rate – impact
RTX revenue and operating profits measured in DKK. Given the high solidity and the
liquidity position RTX does not have risk related to external providers of interest-bearing
debt.
Mitigation To safeguard against the potential impact of low economic growth rates, RTX has, over
the past years, enlarged its customer base – e.g. through further long-term framework
agreements – to increase the likelihood of an underlying growth in RTX’s activity level
regardless of any lower economic growth. Also, RTX operates in different industrial sec-
tors/segments to reduce the exposure to any one sector. While the strong and enlarged
customer relationships through framework agreements create significant growth oppor-
tunities for RTX, we have maintained a cautious approach to our capacity cost base in
light of the macroeconomic uncertainty in 2022 (inflation and recession risk).
Regarding foreign exchange risk, RTX’s trading and currency policy with customers and
suppliers is, to the greatest possible extent, to attempt to match the currencies of its
purchase and sales. If deemed appropriate, RTX may enter into transactions for the pur-
pose of reducing net currency exposures. During 2021/22, RTX has continued to hedge
part of the future (expected) net inflow of USD to reduce such exposure.
Risk assessment
2021/22
Likelihood: High / Impact: High
During 2021/22, RTX was positively impacted by the demand rebound after COV-
ID-19. However, the high inflation in many countries and the risk of recession creates
high uncertainty regarding the global demand levels in the near future. Thus the global
uncertainty seems to be shifting from a supply uncertainty to a demand uncertainty. The
USD has strengthened over 2021/22 which has had a positive impact on RTX financials
compared to last year.
Risk heat map
Risks are assessed using a two-dimensional risk matrix – estimating the
impact on RTX earnings and “license to operate” and the estimated likeli-
hood of a risk materializing.
A
Macroeconomy
B
Supply chain
C
Components
D
Customer partnerships
E
Politics and regulations
F
HR and talent
G
Technology
H
IPR
I
IT and cyber security
Arrows show directional
risk movement since the
previous financial year
A
41
RTX Annual Report 2021/22 Governance
Supply chain Components
Risk description The Group’s production is handled by suppliers (contract manufacturers), which are lo-
cated both in Asia and Europe with the majority of sourced volume from Asia. The Group
depends on the ability of these suppliers to produce and supply the planned volume at
the agreed time and quality and thus significant fluctuations in revenue and gross profit
may arise if some suppliers fail to supply as agreed.
Risk description Increasing component lead times and temporary allocation of components (i.e. compo-
nent suppliers not fulfilling the full demand) may impact revenue, gross profits and gross
margins – especially via postponements (and only to a lesser degree cancellations). The
issue has historically been pertinent for certain electronics components from time to
time.
Mitigation RTX is in ongoing close contact with its suppliers in order to plan and monitor supplies,
quality assurance systems and production. To reduce our reliance on any single supplier,
RTX operates with more than one supplier where possible, while in other cases it may be
necessary to reduce the delivery uncertainty with a buffer inventory.
A 12-month rolling forecast is managed by RTX from customers through RTX to sup-
pliers, which increases the ability of suppliers to plan operations in order to meet RTX’s
demand.
RTX cooperates with major contract manufacturers that operate multiple factories
across countries and continents, which means that production can be transferred from
one factory to another should one of the sites temporarily be out of operation for a
prolonged period.
Mitigation RTX has a well-established 12-month rolling forecast process in place, from customers
via RTX to its manufacturing partners. This has ensured a long planning horizon for com-
ponents and production, and thereby has, to the extent possible, de-risked component
allocation to secure that components are received on time.
When necessary, the RTX Supply Chain organization works, closely and directly with
suppliers of components (by-passing, but in agreement, with our manufacturing
partners) to increase allocations of components. This involves making spot buys to fill
short-term gaps while working with suppliers to ensure allocation and prioritization.
Further, component buffer stocks may be built where possible and attractive to ensure
availability of key components.
Risk assessment
2021/22
Likelihood: High / Impact: High
The significant disruptions to the global flow of goods seen in 2020/21 continued in
2021/22 with for instance, production shutdowns in China due to COVID-19 lock-
downs and temporary electricity cut-offs, container shipping impediments leading to
prolonged transportation times and long-lead time for components (also see risk section
on components). While some of these disruptions still occur and the supply chain risk
thus overall remains high, improvements have been seen towards the end of 2021/22
with an improved flow of goods.
RTX’s Supply Chain organization has continued to work even closer with its suppliers
in 2021/22 to always have a detailed overview of the delivery situation and assist the
supply base in improving the situation where possible. Further, buffer stocks have been
built for important components and products where possible.
Risk assessment
2021/22
Likelihood: High / Impact: Medium
Lead time for many electronics components has been very high in 2021/22 and certain
components have been under allocation – especially semiconductors. This has had a
significant impact on the timing of deliveries and thus revenue for RTX with revenue
being postponed from one period into the next – but it is primarily postponements not
cancellations. The impact increased in the first half of 2021/22, then stabilized before
improving somewhat towards the end of the financial year. So, while the component risk
remains high, there are signs that the situation may be gradually improving.
B C
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RTX Annual Report 2021/22 Governance
Customer partnerships Politics and regulations
Risk description A significant part of RTX’s business is based on long-term partnerships with leading
international companies in the market segments where RTX operates. The cooperation
with these customers is based on long-term framework agreements, and RTX’s products
are an integrated part of these customers’ solutions and offerings.
The company’s top three customers represent 52% of 2021/22 revenue. It would have
a considerable impact on RTX’s organizational setup as well as its financial performance,
if key customers – for any given reason – face financial challenges, if RTX and a given
customer are not able to be successful together or if the market situation were to signif-
icantly change.
Risk description International trade barriers out of protectionism or for other reason could influence the
ability of RTX to export products from certain countries to e.g. the US. Further, geo-
political disturbances can have an indirect effect on economic growth (see risk section
on “Macroeconomy”) or could impact RTX’s ability to utilize supply chains in certain
countries.
The countermeasures against pandemics (e.g. COVID-19) are often politically decided
and may lead to a temporary decrease in customer demand within RTX specific sub-seg-
ments or in supply with any lockdowns affecting production (e.g. in China).
Also, RTX is subject to product safety regulations such as e.g. REACH and RoHS and
failure to comply with these may harm RTX’s reputation and license to operate.
Mitigation Considerable resources have been invested in the technical integration of RTX’s tech-
nology and products into the customers’ solutions and replacing RTX would accordingly
trigger substantial switching cost for the customers.
Also, RTX is expanding the base of significant customers through additional framework
agreements as announced over the past years which will reduce RTX’s reliance on indi-
vidual customers.
In general, RTX’s large customers are large and well-reputed international companies. To
further mitigate financial consequences from any possible customer specific occurrenc-
es, RTX takes out credit insurance on customers to the extent possible.
Mitigation RTX is engaging with several internationally oriented suppliers with operations across
multiple countries and continents, which provides an agile setup in case of significant
trade barriers or geopolitical disturbances.
RTX operates in different industrial sectors/segments to reduce the exposure to any one
sector.
Regarding product safety, RTX’s management system, supplier agreements and compli-
ance frameworks are designed to deal with customer and regulatory requirements. The
management system is subject to both internal and external reviews and audits.
Risk assessment
2021/22
Likelihood: Low / Impact: Medium
Some of RTX’s largest customers have had higher than average revenue growth with RTX
and therefore the share of revenue from the largest customers have increased which
would cause a slightly larger impact if these customers are not able to perform. Howev-
er, at present there are no indications of a heightened risk.
Risk assessment
2021/22
Likelihood: High / Impact: Medium
Overall, the risk related to any disruptive pandemic countermeasures has reduced
compared to last year. However, the geopolitical instability in the world has increased
with the Russian invasion of Ukraine. While RTX does not have any activities in Russia,
Belarus or Ukraine, the markets have in no way been important markets for RTX (ac-
counting for less than 0.1% of revenue over the latest years) and all business in Russia
and Belarus has been discontinued, the increased geopolitical instability may spill over to
other geographies and can thus pose an indirect risk also to RTX.
D E
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RTX Annual Report 2021/22 Governance
HR and talent Technology
Risk description RTX is a knowledge intensive company and to develop innovative products and solutions
and to ensure our competitive position, it is essential to attract, develop and retain the
right talent. Failure to do so may ultimately hinder RTX’s ability to successfully execute
our strategy and thereby reduce our competitiveness.
Risk description A significant part of RTX’s business is based on its unique knowledge within advanced
wireless radio systems. Therefore, technological changes may affect future business
opportunities for RTX.
A revolution of the wireless communication standards and competence platforms, which
RTX currently incorporates into its products and solutions, may lead to lost business
opportunities, especially longer term.
Mitigation RTX’s goal is to be an attractive workplace. This is achieved e.g. through attractive work-
ing conditions, employee and manager development dialogue, employee satisfaction
surveys, social gatherings and incentive programs.
RTX maintains close cooperation with leading universities close to RTX knowledge hubs
both regarding student assignments, PH.D dissertations and regarding recruiting.
RTX monitors employee turnover and retention on an ongoing basis.
Mitigation Through close relationships with leading international customers, RTX has a solid under-
standing of the customers’ future product development plans. The close relations enable
RTX to predict and react to changes in technologies requested by the customers on an
ongoing basis.
Via innovation projects, RTX develops the technological competencies that will enable
RTX to offer products and solutions based on a wider range of technological opportuni-
ties. This reduces the dependence on single technologies. RTX’s corporate technology
office works on this continuously and also team up with leading research institutions for
specific innovation projects.
Further, RTX monitors and impacts technological standards through active participation
in highly reputed industry organizations worldwide.
Risk assessment
2021/22
Likelihood: Medium / Impact: High
The tight labor market which was seen last financial year, has been gradually loosened
over 2021/22. So, while employee turnover still has been relatively high compared to
long-term historic levels, it has stabilized in 2021/22 and the opportunities for attract-
ing new employees have improved during 2021/22.
Risk assessment
2021/22
Likelihood: Low / Impact: Medium
The CTO Office of RTX scouts emerging technologies and evaluates technologies with
potential implications (opportunities or threats) for RTX especially within wireless and
audio platforms and protocols. In 2021/22, the CTO Office has prepared the founda-
tion for the future operating system for RTX software and products.
F
G
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RTX Annual Report 2021/22 Governance
IPR IT and cyber security
Risk description Operating in a highly IPR protected industry, RTX’s freedom of action may from time
to time be limited by patents from third parties. Further, RTX holds and has applied for
patents within selected key areas.
There may be a risk that RTX inadvertently infringes on third party rights. Further, RTX’s
practices for protecting the company’s intellectual property rights may be inadequate
so that competitors may develop similar technologies. This can lead to loss of business
opportunities for RTX.
Risk description RTX’s business depends to a large and increasing extent on reliable and secure IT
systems. Severe breaches of IT security or system outages may have a negative effect
on RTX’s knowledge base, reputation and/or competitive position, and thus may cause
financial losses, lost business opportunities or lack of ability to meet contractual obliga-
tions.
Mitigation The company’s model for development projects includes a review of the project to as-
sess if there is a risk that RTX may infringe on or is limited by third party rights. It is also
a formal point of our project model that the project is considered for relevant patents.
RTX has competences within design, development and manufacturing of wireless solu-
tions and combinations of wireless technologies. The number of wireless technologies,
that RTX has competences within, are expanded over time to avoid dependency on a
single technology.
RTX is a member of ETSI (European Telecommunications Standards Institute) and other
technology forums. Such memberships ensure that RTX stays up to date on relevant
issues in the industry, including e.g. frequency bands, that may affect RTX’s business or
infringe on third party rights.
Mitigation While these risks cannot be fully eradicated, RTX is continuously working to reduce the
risks via regular adjustments of technical security controls and guidelines and policies for
IT security. This is done centrally from corporate IT rolling out centrally managed solu-
tions to reduce the number of applications in use. This allows for central management of
platforms, master data and security functions, where possible.
Additionally, RTX conducts internal employee awareness campaigns regarding IT
security. The Group also assesses and tests the IT infrastructure and security level in
collaboration with external experts from time to time.
The outsourcing of RTX’s production to a number of different suppliers also in the short-
term protects delivery performance in case of shorter duration unavailability of IT service
at RTX.
Risk assessment
2021/22
Likelihood: Low / Impact: Low
RTX CTO Office has continued its increased focus on screening for potential IPR in-
fringements and screening for potential opportunities for taking out relevant patents and
the number of patent applications made by RTX is increasing.
Risk assessment
2021/22
Likelihood: High / Impact: Medium
Globally, the number of cyber security attacks continues to be very high and the risk
of IT security breaches thus remains significant. RTX has continued to implement IT
infrastructure upgrades to increase the resilience of our systems and have during 2022
instituted mandatory cyber security training for all personnel.
H
I
45
RTX Annual Report 2021/22 Governance
Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug
0
10
20
30
40
50
Sep
0
50
100
150
200
250
(DKK million) (DKK per share)
The RTX Share
Despite better than expected financial
performance of RTX, the share price decreased
over 2021/22 in a difficult general stock market.
The share
RTX shares were priced at DKK 115 per share at the end
of the financial year at 30 September 2022, corre-
sponding to a market capitalization of DKK 974 million.
The stock market in general has been declining in 2022
and the RTX share has seen the same development.
Despite upgraded RTX expectations over the financial
year, the RTX share price has decreased by 30.3% dur-
ing 2021/22 while the Nasdaq Copenhagen mid-cap
index (OMXCMCGI), which includes the RTX share,
decreased by 18.4% over the same period.
Share capital and treasury shares
As of 30 September 2022, RTX’s share capital
had a nominal value of DKK 42,339,190 comprising
8,467,838 shares each with a nominal value of DKK 5.
All shares carry equal rights and they are not divided
into classes. RTX holds a total of 284.924 treasury
The RTX Share
Share price development and trading activity 2021/22
Turnover of shares (left)
RTX A/S closing prices (right)
Nasdaq Mid-Cap index (rebased) (right)
Stock Exchange
Nasdaq Copenhagen A/S
ISIN Code
DK0010267129
Index
Mid-Cap (OMXCMCGI)
Restriction in voting rights
None
30 Sep. 2022 30 Sep. 2021
Share price (DKK per share) 115 165
Market capitalization (DKK million) 974 1,426
Average daily turnover (DKK million) 1.1 2.3
Shares issued (no.) 8,467,838 8,642,838
Treasury shares (no.) 284,924 502,906
Earnings per share (DKK) 4.2 0.4
Price/earnings 27.7 372.8
With the completion of the
capital reduction in April
2022, the share capital
of RTX is comprised of
8,467,838 shares.
The RTX Share
46
RTX Annual Report 2021/22 Governance
54%
25%
3%
17%
Financial Calendar
26 January 2023
Annual General Meeting
Deadline to submit proposals
for items on the agenda is
14 December 2022
26 January 2023
Interim report Q1 2022/23
2 May 2023
Interim report Q2 2022/23
29 August 2023
Interim report Q3 2022/23
30 November 2023
Annual report 2022/23
Shareholder composition
At 30 September 2022, RTX had more than 4,700
shareholders registered by name, including custodian
banks, constituting approximately 83% of the compa-
ny’s share capital. According to registered addresses,
the majority of shareholders are based in Denmark,
but with a sizeable share of shareholders being based
internationally. Approximately 56% of the share capital
was held or managed by the 20 largest shareholders
registered by name.
In accordance with section 55 of the Danish Compa-
nies Act, the following investors have reported holdings
of more than 5% of RTX’s share capital:
• Jens Hansen: 8.0%
• Fundamental Invest Stock Pick and related
Fundamental Invest Stock Pick II Acc: 7.5%
• ATP: 6.8%
• Jens Toftgaard Petersen: 5.3%
Authorizations granted
to the Board of Directors
At the 2018 Annual General Meeting, the Board
of Directors was granted the right to authorize the
Company to acquire treasury shares for a nominal
value of DKK 4,400,000 (equivalent to approximately
10% of the Company’s share capital at the time of the
authorization) during the period until 24 January 2023.
The Company’s holding of treasury shares after the
acquisition must not exceed 10% of the share capital
from time to time, while the acquisition price must
not deviate by more than 10% from the share price at
Nasdaq Copenhagen at the time of the acquisition. The
Board of Directors expects to seek approval from the
Annual General Meeting in January 2023 for a renewed
right to acquire treasury shares.
At the 2019 Annual General Meeting, the Board of
Directors was authorized to increase the Company’s
share capital in one or more issues of new shares up
to a maximum of nominal value of DKK 8,900,000
without pre-emption rights for the Company’s exist-
ing shareholders. The right may not be utilized for an
amount exceeding 20% of the outstanding share capi-
tal at the time of the exercise of the authorization. The
authorization is valid until 23 January 2024.
Investor relations
RTX aims to maintain an open dialogue with investors
and analysists about the company’s business model,
strategic priorities and financial performance. RTX
further aims to ensure equal, timely and adequate
information for all investors by publishing company an-
nouncements in Danish and English on the RTX website
and by release to Nasdaq Copenhagen. In addition to
financial reports and other company announcements,
RTX’s Executive Board uses investor meetings, road-
shows and conference calls as the primary channels
when communicating with stakeholders.
RTX’s website provides information about analyst cov-
erage and access to investor-related materials etc.
shares corresponding to 5.8% of the share capital. The
treasury shares are held to fulfil obligations arising from
share-based incentive programs to management and
key employees as well as to adjust the capital structure
from time to time. In 2022, the Board of Directors
proposed, and the general meeting approved, a capital
reduction of 175,000 shares at a nominal value of DKK
875,000 by cancellation of RTX treasury shares. The
capital reduction was completed in April 2022.
Shareholder Composition
30 September 2022
(% of shares)
Danish Shareholders
International Shareholders
RTX A/S (treasury shares)
Shareholders not registered by name
47
RTX Annual Report 2021/22 Governance
Board of Directors and Executive Board
Board of
Directors
Peter Thostrup
Chair
Jesper Mailind
Deputy Chair
Ellen Andersen
Board member
Katja Millard
Board member
Henrik Schimmell
Board member
Lars Christian Tofft
Board member
Title Professional board member Professional board member Professional board member Vice President, Enterprise Products,
Motorola Solutions
President, Radiometer
Senior Advisor TMT industry
Professional Board Member
Education M.Sc. Economics and Finance, 1987.
MBA, 1986.
Graduate Diploma in Business
Administration, 1982.
MBA, 1984.
Executive education at IMD, INSEAD
and London Business School among
others 2007-2015.
CBA from AVT Business School 2007.
International Trade and Marketing
2002.
Ph.D. from Danish Technical University,
1992.
M.Sc. in Electrical Engineering, 1986.
M.Sc. in Business Administration and Business
Law, 1990. Executive education at INSEAD,
Colombia University and Boston University.
Directorships Chair of the boards of directors of Holm-
ris B8 A/S, Power Stow A/S and Linstol
LLC; Member of the board of directors of
A/S Th. Wessel & Vett, Magasin du Nord
Chair of the board of directors of Aidian
Oy; Deputy Chair Leo Pharma A/S;
Member of the boards of directors of
Etac AB and Contour Design A/S
Chair of the boards of directors of
HemoCue AB, Radiometer Medical,
several Radiometer subsidiaries; Chair
of Danaher European Board
Member of the board of directors of
Sternula A/S
Competencies In-depth knowledge of finance, corpo-
rate governance in listed companies,
management experience from interna-
tional technology and consumer firms.
General and solid board experience.
General management and transition
management from global industries
including life science, medtech, diag-
nostics, technology and manufacturing.
International management experience
within IT, IoT and digital development
from large global and listed companies.
Substantial experience in managing
large development teams across multi-
ple international locations.
International tech management
background – software and hardware
with deep knowledge of the electronics
industry incl. two-way radio systems and
devices. Experience covers sales, market-
ing, innovation and product development.
General management within medical
device/diagnostics and hearing
instrument industries. Additionally,
competencies within strategic planning,
lean business operations, M&A and
process development.
General management with specialty in
sales & marketing, transformation and
digitalization. International experience from
global market leader in the ICT space.
Specific technology expertise in 4G/5G
technology, Internet of Things (IoT) and AI.
Committees Member of the Audit Committee and
Chair of the Nomination &
Remuneration Committee
Member of the Audit Committee and
of the Nomination & Remuneration
Committee
Chair of the Audit Committee
Meeting
attendance
Ordinary: 7 of 7
Extraordinary: 3 of 3
Ordinary: 7 of 7
Extraordinary: 3 of 3
Ordinary: 5 of 5
Extraordinary: 2 of 2
Ordinary: 5 of 5
Extraordinary: 2 of 2
Ordinary: 7 of 7
Extraordinary: 2 of 3
Ordinary: 6 of 7
Extraordinary: 2 of 3
Elected period Since 2009 2009-2009 and since 2013 Since 2022 Since 2022 Since 2019
Since 2017
Considered
independent
No (due to duration of elected term) Yes Yes Yes Yes
Yes
Nationality Danish Danish Danish Danish Danish
Danish
Y.O.B & gender 1960, male 1956, male 1967, female 1978, female 1962, male
1966, male
Board of Directors and Executive Board
48
RTX Annual Report 2021/22 Governance
Board Members
Elected by the
Employees
Executive Board
Flemming V. Andersen
Board member
Kevin Harritsø
Board member
Kurt Heick Rasmussen
Board member
Peter Røpke
Morten Axel Petersen
Title RF Manager, RTX A/S Team Lead, RTX A/ S Senior Project Manager, RTX A/ S President and CEO CFO
Education M.Sc. in Electrical Engineering, 1999.
Graduate Diploma in Business Adminis-
tration, 2008.
M.Sc. in Electrical Engineering 2009. B.Sc. in Engineering, 2000. Graduate
Diploma in Business Administration,
2009.
M.Sc. in Electrical, Electronics and
Communications Engineering, 1992.
M.Sc. in Business Administration
and Management, 1999.
Directorships Member of the boards of directors of
DEIF A/S and Audientes A/S.
Meeting attendance Ordinary: 7 of 7
Extraordinary: 3 of 3
Ordinary: 7 of 7
Extraordinary: 3 of 3
Ordinary: 7 of 7
Extraordinary: 2 of 3
Elected/appointed period Since 2015 Since 2019 Since 2015 Since 2016 Since 2019
Term of office expires 2023 2023 2023
Nationality Danish Danish Danish Danish Danish
Year of birth and gender 1973, male 1984, male 1974, male 1966, male 1974, male
49
RTX Annual Report 2021/22 Governance
Contents
Group and Parent
Financial Statements
Income Statement 52
Statement of Comprehensive Income 52
Balance Sheet 53
Group Equity Statement 54
Parent Equity Statement 55
Cash Flow Statement 56
Statements
Management Statement 97
Independent Auditor’s Report 98
Notes
Section 1
Basis of preparation
1.1 Basis of Preparation and Changes
in Accounting Principles 57
1.2 Uncertainties and Estimates 59
Section 2
Results for the year
2.1 Segment Information 60
2.2 Revenue 61
2.3 Cost of Sales 62
2.4 Staff Costs and Remuneration 63
2.5 Development Costs 67
2.6 Fee to Auditors Elected at
the Annual General Meeting 67
2.7 Financial Income and Expenses 68
2.8 Derivatives 68
2.9 Income Taxes 69
Section 3
Invested Capital
3.1 Intangible Assets 71
3.2 Leases 73
3.3 Tangible Assets 75
3.4 Investments in Subsidiaries 77
3.5 Deposits 78
Section 4
Working Capital
4.1 Inventories 79
4.2 Trade Receivables 79
4.3 Contract Development Projects in Progress 81
4.4 Provisions 82
4.5 Other Payables 83
Section 5
Capital Structure and Financing
5.1 Current Asset Investments 84
5.2 Share Capital 85
5.3 Treasury Shares 86
5.4 Earnings per Share 86
5.5 Dividend 86
5.6 Financial Risks and Financial Instruments 87
Section 6
Other Disclosure Requirements
6.1 Contingent Liabilities, Collateral
and Contractual Obligations 92
6.2 Other Items with no Effect on Cash Flow 93
6.3 Related Parties 93
6.4 Events after the Balance Sheet Date 93
6.5 Accounting Principles Applied 94
51
RTX Annual Report 2021/22 Financial Statements
Financial Contents
Group Parent
Amounts in DKK '000 Note 2021/22 2020/21 2021/22 2020/21
Revenue 2.1 - 2.2 663,289 457,157 663,289 457,157
Value of own work capitalized 2.5 15,759 24,899 15,759 24,899
Cost of sales 2.3 -354,037 -218,068 -354,037 -218,059
Other external expenses 2.5 - 2.6 -62,376 -55,336 -102,457 -90,772
Staff costs 2.4 - 2.5 -177,280 -171,341 -142,923 -141,524
Operating profit/loss before depreciation
and amortization (EBITDA) 85,355 37,311 79,631 31,701
Depreciation, amortization and impairment 3.1 - 3.3 -39,714 -31,251 -37,283 -29,297
Operating profit/loss (EBIT) 45,641 6,060 42,348 2,404
Financial income 2.7 13,480 1,617 15,319 4,202
Financial expenses 2.7 -16,846 -8,251 -17,353 -8,563
Profit/loss before tax 42,275 -574 40,314 -1,957
Tax on profit/loss 2.9 -8,359 4,222 -7,848 3,728
Profit/loss for the year 33,916 3,648 32,466 1,771
Earnings per share
Earnings per share (DKK) 5.4 4.2 0.4
Earnings per share, diluted (DKK) 5.4 4.1 0.4
Attributable to:
Shareholders of the parent 33,916 3,648
Income statement Statement of
Comprehensive Income
Group Parent
Amounts in DKK '000 2021/22 2020/21 2021/22 2020/21
Profit/loss for the year 33,916 3,648 32,466 1,771
Items that can be reclassified subsequently to
the income statement
Exchange rate adjustments of foreign subsidiaries 6,168 179 - -
Fair value adjustment relating to hedging instruments -4,904 -59 -4,904 -59
Tax on hedging instruments 1,079 13 1,079 13
Fair value of hedging instruments reclassified to
the income statement 2,965 62 2,965 62
Tax on hedging instruments reclassified -652 -14 -652 -14
Other comprehensive income, net of tax 4,656 181 -1,512 2
Comprehensive income for the year 38,572 3,829 30,954 1,773
Attributable to:
Shareholders of the parent 38,572 3,829
52 Financial Statements
RTX Annual Report 2021/22
Income statement Statement of Comprehensive Income
Balance Sheet 30 September
Group Parent
Amounts in DKK '000 Note 2021/22 2020/21 2021/22 2020/21
Assets
Own completed development projects 3.1 38,734 49,551 38,734 49,551
Own development projects in progress 3.1 16,896 12,643 16,896 12,643
Goodwill 3.1 7,797 7,797 - -
Intangible assets 63,427 69,991 55,630 62,194
Right-of-use assets (lease assets) 3.2 54,384 57,461 49,154 52,592
Plant and machinery 3.3 16,724 12,305 16,724 12,305
Other fixtures, tools and equipment 3.3 4,575 4,157 4,377 4,029
Leasehold improvements 3.3 11,273 11,840 11,273 11,814
Tangible assets 86,956 85,763 81,528 80,740
Investments in subsidiaries 3.4 - - 39,078 38,167
Deposits 3.5 6,817 6,836 5,923 6,082
Deferred tax assets 2.9 2,151 1,452 - -
Other non-current assets 8,968 8,288 45,001 44,249
Total non-current assets 159,351 164,042 182,159 187,183
Inventories 4.1 102,494 32,371 102,494 32,371
Trade receivables 4.2 195,485 148,893 195,485 148,893
Contract development projects in progress 4.3 8,037 10,163 8,037 10,163
Income taxes 2.9 - 562 - 435
Other receivables 13,103 4,912 12,525 4,406
Prepaid expenses 4,545 3,954 3,836 3,341
Receivables 5.6 221,170 168,484 219,883 167,238
Current asset investments in the trading portfolio 5.1 30,083 100,952 30,083 100,952
Current asset investments 5.1 30,083 100,952 30,083 100,952
Cash at bank and in hand 43,725 19,461 41,054 16,419
Total current assets 397,472 321,268 393,514 316,980
Total assets 556,823 485,310 575,673 504,163
Group Parent
Amounts in DKK '000 Note 2021/22 2020/21 2021/22 2020/21
Equity and liabilities
Share capital 5.2 42,339 43,214 42,339 43,214
Share premium account 170,439 203,714 170,439 203,714
Currency adjustments 12,140 5,972 - -
Cash flow hedging -1,717 -205 -1,717 -205
Reserve related to development costs - - 43,391 48,511
Retained earnings 108,439 35,838 65,239 -11,118
Equity 331,640 288,533 319,691 284,116
Lease liabilities 5.6 52,896 55,539 49,598 52,325
Deferred tax liabilities 2.9 3,347 6,581 3,347 6,581
Provisions 4.4 1,855 1,149 1,855 1,149
Other payables 4.5 13,389 13,272 13,389 13,272
Non-current liabilities 71,487 76,541 68,189 73,327
Lease liabilities 5.6 6,300 5,857 4,196 4,160
Prepayments received from customers 8,169 1,540 8,169 1,540
Trade payables 80,517 61,562 80,034 61,375
Contract development projects in progress 4.3 7,515 1,724 7,515 1,724
Payables to subsidiaries - - 45,909 33,883
Income taxes 2.9 11,049 160 10,766 -
Provisions 4.4 1,793 1,909 1,793 1,909
Other payables 2.8; 4.5 38,353 47,484 29,411 42,129
Current liabilities 153,696 120,236 187,793 146,720
Total liabilities 225,183 196,777 255,982 220,047
Total equity and liabilities 556,823 485,310 575,673 504,163
53 Financial Statements
RTX Annual Report 2021/22
Balance Sheet 30 September
Equity Statement for the Group
Amounts in DKK ‘000
Share
capital
Share
premium
Currency
adjust-
ments
Cash flow
hedging
Retained
earnings Total
Equity at 1 October 2020 43,214 203,714 5,793 -207 99,678 352,192
Profit/loss for the year - - - - 3,648 3,648
Exchange rate adjustments of foreign
subsidiaries - - 179 - - 179
Fair value adjustment relating to hedging
instruments - - - -59 - -59
Tax on hedging instruments - - - 13 - 13
Fair value of hedging instruments reclas-
sified to the income statement - - - 62 - 62
Tax on hedging instruments reclassified - - - - 14 - -14
Other comprehensive income, net of tax - - 179 2 - 181
Comprehensive income for the year - - 179 2 3,648 3,829
Share-based remuneration - - - - 4,093 4,093
Deferred tax on equity transactions - - - - -822 -822
Paid dividend for 2019/20 - - - - -20,710 -20,710
Acquisition of treasury shares - - - - -50,049 -50,049
Other transactions - - - - -67,488 -67,488
Equity at 30 September 2021 43,214 203,714 5,972 -205 35,838 288,533
Amounts in DKK ‘000
Share
capital
Share
premium
Currency
adjust-
ments
Cash flow
hedging
Retained
earnings Total
Equity at 1 October 2021 43,214 203,714 5,972 -205 35,838 288,533
Profit/loss for the year - - - - 33,916 33,916
Exchange rate adjustments of foreign
subsidiaries - - 6,168 - - 6,168
Fair value adjustment relating to hedging
instruments - - - -4,904 - -4,904
Tax on hedging instruments - - - 1,079 - 1,079
Fair value of hedging instruments reclas-
sified to the income statement - - - 2,965 - 2,965
Tax on hedging instruments reclassified - - - -652 - -652
Other comprehensive income, net of tax - - 6,168 -1,512 - 4,656
Comprehensive income for the year - - 6,168 -1,512 33,916 38,572
Share-based remuneration - - - - 4,865 4,865
Current tax on equity transactions - - - - 1,302 1,302
Deferred tax on equity transactions - - - - -1,612 -1,612
Annulment of treasury shares -875 -33,275 - - 34,130 -20
Other transactions -875 -33,275 - - 38,685 4,535
Equity at 30 September 2022 42,339 170,439 12,140 -1,717 108,439 331,640
54 Financial Statements
RTX Annual Report 2021/22
Equity Statement for the Group
Equity Statement for the Parent
Amounts in DKK ‘000
Share
capital
Share
premium
Cash flow
hedging
Reserve
related
to deve-
lopment
costs
(1)
Retained
earnings Total
Equity at 1 October 2021 43,214 203,714 -205 48,511 -11,118 284,116
Profit/loss for the year - - - - 32,466 32,466
Fair value adjustment relating to hedging
instruments - - -4,904 - - -4,904
Tax on hedging instruments - - 1,079 - - 1,079
Fair value of hedging instruments reclas-
sified to the income statement - - 2,965 - - 2,965
Tax on hedging instruments reclassified - - -652 - - -652
Other comprehensive income, net of tax - - -1,512 - - -1,512
Comprehensive income for the year - - -1,512 - 32,466 30,954
Share-based remuneration - - - - 4,865 4,865
Current tax on equity transactions - - - - 1,302 1,302
Deferred tax on equity transactions - - - - -1,526 -1,526
Annulment of treasury shares -875 -33,275 - - 34,130 -20
Development costs, net of tax - - - -5,120 5,120 -
Other transactions -875 -33,275 - -5,120 43,891 4,621
Equity at 30 September 2022 42,339 170,439 -1,717 43,391 65,239 319,691
(1)
In accordance with the Danish Financial Statements Act a reserve equivalent to the capitalized development costs net of tax is recognized in equity. The
reserve is reduced as the capitalized development costs are depreciated.
Amounts in DKK ‘000
Share
capital
Share
premium
Cash flow
hedging
Reserve
related
to deve-
lopment
costs
(1)
Retained
earnings Total
Equity at 1 October 2020 43,214 203,714 -207 45,866 56,845 349,432
Profit/loss for the year - - - - 1,771 1,771
Fair value adjustment relating to hedging
instruments - - -59 - - -59
Tax on hedging instruments - - 13 - - 13
Fair value of hedging instruments reclas-
sified to the income statement - - 62 - - 62
Tax on hedging instruments reclassified - - -14 - - -14
Other comprehensive income, net of tax - - 2 - - 2
Comprehensive income for the year - - 2 - 1,771 1,773
Share-based remuneration - - - - 4,093 4,093
Deferred tax on equity transactions - - - - -423 -423
Paid dividend for 2019/20 - - - - -20,710 -20,710
Acquisition of treasury shares - - - - -50,049 -50,049
Development costs, net of tax - - - 2,645 -2,645 -
Other transactions - - - 2,645 -69,734 -67,089
Equity at 30 September 2021 43,214 203,714 -205 48,511 -11,118 284,116
55 Financial Statements
RTX Annual Report 2021/22
Equity Statement for the Parent
Group Parent
Amounts in DKK '000 Note 2021/22 2020/21 2021/22 2020/21
Operating profit/loss (EBIT) 45,641 6,060 42,348 2,404
Reversal of items with no effects on cash flow
Depreciation, amortization and impairment 39,714 31,251 37,283 29,297
Other items with no effects on cash flow 6.2 15,051 2,703 8,766 1,773
Change in working capital
Change in inventories -73,498 -17,911 -73,498 -17,911
Change in receivables -55,579 14,050 -55,411 14,252
Change in trade payables, etc. 22,361 19,437 30,504 24,058
Cash flow from operating activities -6,310 55,590 -10,008 53,873
Financial income received 13,968 2,144 14,130 2,110
Financial expenses paid -6,962 -3,309 -7,469 -3,720
Income taxes paid 2.9 -724 -9,920 322 -10,558
Cash flow from operations -28 44,505 -3,025 41,705
Investments in own development projects -19,064 -21,669 -19,064 -21,669
Acquisition of property, plant and equipment -11,415 -18,563 -11,262 -18,518
Deposits on leaseholds 19 1,102 159 1,084
Acquisition / sale of current asset investments in
the trading portfolio, net 60,985 48,721 60,985 48,721
Dividends from subsidiaries - - 1,566 2,586
Sale of tangible assets 24 107 24 107
Cash flow from investments 30,549 9,698 32,408 12,311
Group Parent
Amounts in DKK '000 Note 2021/22 2020/21 2021/22 2020/21
Repayment of lease liabilities 5.6 -5,660 -5,815 -4,131 -3,867
Acquisition of treasury shares 5.3 - -50,049 - -50,049
Paid dividend 5.5 - -20,710 - -20,710
Cash flow from financing activities -5,660 -76,574 -4,131 -74,626
Increase/decrease in cash and cash equivalents 24,861 -22,371 25,252 -20,610
Exchange rate adjustments on cash -597 1,047 -617 1,061
Cash and cash equivalents at 1 October 19,461 40,785 16,419 35,968
Cash and cash equivalents at 30 September 43,725 19,461 41,054 16,419
Cash and cash equivalents at 30 September
are composed as follows:
Cash at bank and in hand 43,725 19,461 41,054 16,419
Cash and cash equivalents at 30 September 43,725 19,461 41,054 16,419
Cash Flow Statement
56 Financial Statements
RTX Annual Report 2021/22
Cash Flow Statement
Section 1
Basis of preparation
NOTES
1.1 Basis of preparation and changes in accounting principles 57
1.2 Uncertainties and estimates 59
Notes
1.1 Basis of preparation and changes in accounting principles
RTX A/S is a Danish public limited company. The annual report of RTX for 2021/22, including both the consolidat-
ed financial statements and the Parent financial statements, is presented in accordance with International Financial
Reporting Standards (IFRS) as adopted by the EU and additional Danish disclosure requirements for annual reports of
listed companies, with reference to the disclosure requirements of listed companies from Nasdaq Copenhagen A/S
and the Danish Executive Order on IFRS Adoption issued in accordance with the Danish Financial Statements Act.
The consolidated financial statements and the separate financial statements are presented in DKK, which is the pres-
entation currency for the Group’s activities and the functional currency for the Parent Company. The annual report is
based on historical cost prices, except items where IFRS require measurement at fair value. Except for the implemen-
tation of new and amended standards as described below, the accounting policies have been applied consistently in
the preparation of the consolidated financial statements for all the years presented.
The Board of Directors considered and approved the 2021/22 Annual Report of RTX on 29 November 2022, and it
will be submitted to the shareholders of RTX A/S for approval at the Annual General Meeting on 26 January 2023.
Group financial statement
The consolidated financial statement includes the Parent Company, RTX A/S, and the entities (subsidiaries)
controlled by the Parent. The Parent Company is considered to have control when it directly or indirectly holds more
than 50% of the voting rights or otherwise controls or actually exercises control.
RTX A/S and its subsidiaries are collectively referred to as the Group.
Consolidation principles
The consolidated financial statements are prepared on the basis of financial statements of the Parent Company and
its subsidiaries by combining accounting items of a uniform nature, with subsequent elimination of intercompany
income and expenses, shareholdings, intercompany balances, dividends as well as unrealized profit and losses on
transactions between the consolidated entities in the Group. The accounts used for consolidation are prepared in
accordance with the Group’s accounting principles.
57 Financial Statements
RTX Annual Report 2021/22
Section 1 Basis of preparation Note 1
Acquisitions of subsidiaries
On acquisition of subsidiaries the acquisition method is applied whereby the acquired identifiable assets, liabilities
and contingent liabilities are recognized and measured at fair value. Newly acquired subsidiaries are consolidated
from the date of acquisition. The acquisition date is the date on which control of the subsidiary is effectively trans-
ferred. Sold or liquidated subsidiaries are recognized in income until the sale or liquidation. The date of sale is the
date on which control of the subsidiary is effectively transferred to a third party. Transaction costs are recognized as
operating costs as they incur.
Foreign currency
The financial statement items for each of the Group’s subsidiaries are measured in the currency used in the country
of which the subsidiary operates, while the functional currency of the Parent Company is Danish kroner (DKK). The
consolidated financial statement of the Group is presented in Danish kroner (DKK).
Transactions in currencies different of the functional currency in the Parent Company (DKK), are translated into the
functional currency at the exchange rate of the transaction date.
Monetary items in foreign currencies that have not been settled at the balance sheet date are translated at the clos-
ing rate. Exchange rate differences between the transaction date and the date of payment, the balance sheet date
respectively, are recognized in the income statement as financial items.
On recognition in the consolidated financial statements of entities that report in a functional currency other than
Danish kroner (DKK), income statements are translated at average exchange rates for the months. Balance sheet
items are translated at the closing exchange rates. Goodwill is considered to belong to the acquired entity and trans-
lated at the closing rate at the balance sheet date.
Exchange rate differences between foreign subsidiaries’ balance sheet items and income statement items are rec-
ognized in other comprehensive income. Similarly, exchange rate differences arising as a result of changes made di-
rectly in the foreign subsidiaries’ equity are also recognized in other comprehensive income. Other foreign exchange
rate gains and losses are recognized in the income statement under financial items.
The effect of amendments to existing standards
IASB has published a number of amendments to existing standards and interpretations in effect for the financial year
2021/22. None of the amended accounting standards and interpretations have had significant impact on recogni-
tion, measurement or disclosure in the consolidated financial statements of 2021/22.
Implementation of the now prolonged amendment to IFRS 16, Leases COVID-19-Related Rent Concessions, is
optional, and RTX has chosen not to implement the amendment as it was assessed to have no impact on the consoli-
dated financial statements.
New accounting standards not yet adopted
New and revised accounting standards and interpretations issued by IASB in effect for fiscal years commencing
on 1 January 2022 or later have not been incorporated in the financial statements. None of the new standards or
interpretations are expected to have a significant impact on the financial statements of RTX.
1.1 Basis of preparation and changes in accounting principles (continued)
58 Financial Statements
RTX Annual Report 2021/22
1.2 Uncertainties and estimates
The Group’s accounting policy described in the following notes requires that Management makes assessments and
estimates and outlines the assumptions for the financial value of assets and liabilities that cannot be concluded from
other sources. Several financial statement items cannot be measured with certainty but only be estimated. Such
estimates comprise assessments made on the basis of the latest information available at the time of the financial
reporting. The estimates and assumptions are evaluated on an ongoing basis. Changes to the accounting estimates
are included in the financial period in which the changes take place, and in future financial periods in the event that
the changes have effect both in the actual period and future financial periods. The most significant estimates and
assessments are introduced below.
Material accounting estimates
In relation to the practical application of the accounting policies described, Management performs material account-
ing estimates and assessments which may have a significant impact on the annual report’s assets and liabilities at
the balance sheet date. Management bases its estimates on historical experiences as well as assumptions which are
assessed as being reasonable under the given circumstances. The result thereof forms the basis for the reported car-
rying amounts of assets and liabilities as well as the reported income and expenses which are not directly disclosed
in other documentation. The realized results may deviate from these estimates recognized at the balance sheet date.
The following accounting estimates are likely to be significant for the Group and the Parent Company’s financial
report.
Recognition of contract development projects
Contracts with customer financed development giving the customers full or partial exclusivity for the outcome are
classified as development projects with customer financing being recognized in line with the finalization for the
project. The percentage of completion method is the basis for the ongoing recognition of revenue in the Company’s
use of the production method for contracts and determined by the ratio between the Company’s used resources (pri-
marily internal engineering/development time and secondarily any external costs) compared to latest total estimate
of required resources. The percentage of completion is estimated on an ongoing basis by the responsible employees,
and Management carefully follows the development and adjusts the estimates if deemed necessary. The revenue
from contract development projects in progress at others’ expense amounts to DKK 33.0 million in 2021/22
(2020/21: DKK 43.6 million).
Capitalized (own) development projects
Development costs are generally recognized as expenses in the income statement when incurred. In cases where
it is likely that the development projects financed by RTX will be marketed in the form of new products with likely
revenue over time, and where development projects are clearly defined (including establishment of technical and
commercial project plans), the development costs are capitalized and recognized as an asset. The product’s lifetime
is estimated when development costs are capitalized. Management has assessed that the lifetime of a typical RTX
product is three years, which is therefore the typical amortization period. In the balance sheet the development
projects amount to DKK 55.6 million as at 30 September 2022 (DKK 62.2 million as at 30 September 2021).
59 Financial Statements
RTX Annual Report 2021/22
Note 1.2
Section 2
Results for the year
NOTES
2.1 Segment Information 60
2.2 Revenue 61
2.3 Cost of Sales 62
2.4 Staff Costs and Remuneration 63
2.5 Development Costs 67
2.6 Fee to Auditors Elected at the Annual General Meeting 67
2.7 Financial Income and Expenses 68
2.8 Derivatives 68
2.9 Income Taxes 69
2.1 Segment information
In accordance with internal reporting, RTX reports on the three target markets segments; Enterprise, ProAudio and
Healthcare. Costs are reported by allocating costs directly attributable to the three reportable market segments
whereas common functions costs etc. (primarily other external expenses, staff costs and depreciations related to IT,
finance, overall management, joint facilities, joint technology projects, and supply chain management) are reported
as non-allocated in accordance with internal reporting.
For a presentation of the events within the segments in the financial year and the development compared to
2020/21, please refer to the Management Review
Information relating to the Group’s segments:
Amounts in DKK ‘000 Enterprise ProAudio Healthcare
Non-
allocated Group
2021/22
Revenue 493,141 114,056 56,092 - 663,289
EBITDA 173,128 47,776 8,886 -144,435 85,355
EBIT 153,161 40,194 8,014 -155,728 45,641
2020/21
Revenue 307,924 102,470 46,763 - 457,157
EBITDA 104,394 32,534 16,667 -116,284 37,311
EBIT 93,441 25,199 15,862 -128,442 6,060
60 Financial Statements
RTX Annual Report 2021/22
Section 2 Results for the year Note 2.1
2.1 Segment information (continued)
Management comments
In the financial year 2021/22 three customers in Enterprise each represent a revenue higher than 10% of Group
revenue. The largest customer in 2021/22 represents 24.6% (2020/21: 20.6%) of revenue, the second largest
2021/22 customer represents 17.2% (2020/21: less than 10%), and the third largest customer in 2021/22
represents 10.6% (2020/21: 10.0%).
The Group’s revenue from customers is specified below.
Group Parent
Amounts in DKK ‘000 2021/22 2020/21 2021/22 2020/21
Denmark 4,016 7,241 4,016 7,241
France 168,999 100,804 168,999 100,804
Germany 63,109 27,513 63,109 27,513
Other Europe 98,869 92,587 98,869 92,587
USA 139,635 125,127 139,635 125,127
Hong Kong 114,277 32,783 114,277 32,783
Other Asia and Pacific 68,219 67,346 68,219 67,346
Other 6,165 3,756 6,165 3,756
Total 663,289 457,157 663,289 457,157
Revenue distributed to geographic area according to the geographical location of the customer entity being invoiced.
As posted in the balance sheet, all significant assets in the Group are owned by the Parent Company in Denmark and
the majority hereof is located in Denmark.
2.2 Revenue
Accounting policies
Revenue comprises sale of products, development projects and royalties etc. attributable to the fiscal year. Reve-
nue is calculated net of VAT, duties, etc. collected on behalf of a third party.
Revenue from sale of products is recognized at the point in time when transfer of control to the customer has taken
place.
Revenue from development projects at the expense of customers and services are recognized over time as the
projects are performed according to the percentage of completion method and as agreed services are delivered.
Contract costs are expensed when incurred.
The transaction price of a development contract is measured at the expected consideration the Group will be
entitled to and allocated to the performance obligations of the contract. If the outcome of a development project in
progress cannot be estimated reliably, revenue is recognized equivalent to the incurred project costs in the period to
the extent that it is probable that these costs will be recovered.
Royalty and license fees are recognized as revenue in the period they concern. If the income depends on future
events including the customers’ sale of the products containing the technology developed by RTX, the royalty is
recognized in the income statement after this event.
If an arrangement contains multiple deliverables, these are divided into separate deliveries addressed individually to
the extent that they have been separately quoted, that the promise to transfer the good or service under each deliv-
erable is distinct within the contract, that the customer can benefit from each deliverable on its own and that the fair
value of each deliverable can be measured reliably.
Costs of securing contracts are recognized in the income statement when incurred.
61 Financial Statements
RTX Annual Report 2021/22
Note 2.2
2.2 Revenue (continued)
Revenue by type of income:
Group Parent
Amounts in DKK ‘000 2021/22 2020/21 2021/22 2020/21
Products, etc. 612,930 391,531 612,930 391,531
Development projects 32,971 43,569 32,971 43,569
Royalty and license fees 16,613 21,326 16,613 21,326
Other services 775 731 775 731
Total 663,289 457,157 663,289 457,157
Management comments
Revenue mainly arises from sale of products, development projects as well as from royalties and license fees. A con-
tract for a development project is typically followed by a supply agreement for the products developed or a royalty
agreement.
The sale of products comprises sale of ODM/OEM products and customized modules at fixed prices. Sale of prod-
ucts normally constitutes one performance obligation and revenue is recognized at the point in time when transfer of
control occurs. RTX is usually entitled to payment at delivery which in the majority of cases coincide with transfer of
control.
Development projects carried out at the expense of customers are predominantly characterized by a fixed price con-
tract and a duration less than two years. A development project is usually considered a single performance obligation
as different elements of the contract are interdependent in most cases. Revenue is recognized over time applying
the percentage of completion method based on the ratio between the Company’s used resources (primarily internal
engineering/development time and secondarily any external costs) compared to latest total estimate of required
resources. Upon contract signature, RTX is often entitled to a down payment from the customer. The remaining
contract amount is invoiced and becomes due at completion of defined milestones as the project progresses.
Royalties are generated by licenses of intellectual property granted to customers. The majority of royalties are
recognized in the period the customer report them as they are sales-based and occur after all performance obliga-
tions have been satisfied. Royalties from a license granted without a sales-based element are recognized when the
customer is provided with access to the intellectual property and as performance obligations are satisfied. Entitle-
ment to payment for royalties usually follows the revenue recognition. Licenses that are granted for a period of time
against a fixed fee for that period are recognized over time proportionally over the period.
The Group uses standard forward contracts to partially or fully hedge expected net USD cash in flow. Hedging had
a negative net effect of DKK 3.0 million on recognized revenue in 2021/22 (2020/21: negative net effect of DKK
0.1 million).
2.3 Cost of sales
Accounting policies
Cost of sales comprises cost paid in order to generate revenue in the financial year, including consumables, freight,
customs and write-downs on inventories.
Group Parent
Amounts in DKK ‘000 2021/22 2020/21 2021/22 2020/21
Direct cost of sales 332,109 207,636 332,109 207,636
Write-down on inventories 3,375 722 3,375 722
Other sales related costs 18,553 9,710 18,553 9,701
Total 354,037 218,068 354,037 218,059
Other sales related costs include freight, warranties, commissions, quality assurance etc.
62 Financial Statements
RTX Annual Report 2021/22
Note 2.3
2.4 Staff costs and remuneration
Accounting policies
Staff costs comprise wages and salaries, share-based remuneration as well as social security costs, pension contri-
butions etc. for the company’s management and staff.
Share-based incentive schemes in the form of restricted share rights (RSU and Accelerated RSU), where the em-
ployees are awarded shares in the Parent (equity-settled share-based payment scheme), are measured at fair value
of the rights at the time of issue and are recognized in the income statement under staff costs for the period during
which the employees achieve final right to the shares. The setoff entry is recognized directly in equity.
On initial recognition of the restricted share rights, an estimate is made regarding the number of rights for which the
employees are expected to acquire final right. Subsequently, adjustments are made for changes to this estimate
whereby final recognition of the cost corresponds to the actual number of acquired rights to shares.
The fair value of the restricted share rights is computed by using the Black & Scholes model for valuation of Europe-
an call options with the parameters shown overleaf.
Group Parent
Amounts in DKK ‘000 2021/22 2020/21 2021/22 2020/21
Remuneration of the Board of Directors 2,483 2,350 2,483 2,350
Wages and salaries 159,781 153,954 126,644 125,231
Defined contribution pension plans 10,027 10,316 8,893 9,299
Other social security costs, etc. 2,164 2,001 1,771 1,797
Public grants related to staff costs -2,103 -1,373 -822 -422
Staff costs before share-based remuneration 172,352 167,248 138,969 138,255
Share-based remuneration 4,928 4,093 3,954 3,269
Total 177,280 171,341 142,923 141,524
Number of full-time employees at 30 September 294 280 194 183
Average number of full-time employees 282 286 181 189
Average number of full-time employees employed directly 249 257 181 189
Management comments
Public grants related to staff costs
The Group has received wages compensation of DKK 1.4 million in 2021/22 (DKK 1.0 million in 2020/21) as part
of a public COVID-19 support package in Hong Kong related to the Group entity RTX Hong Kong Ltd. Other public
grants cover customary wages compensation.
63 Financial Statements
RTX Annual Report 2021/22
Note 2.4
2.4 Staff costs and remuneration (continued)
The Group has entered into defined contribution pension plans
The Group finances defined contribution plans through regular payments to independent pension and insurance
companies, which are responsible for the pension obligations. After payment of pension contributions to defined
contribution plans, the Group has no further pension obligations to current or former employees with regard to future
developments in interest rates, inflation, mortality, disability, etc. in respect of the amount eventually to be paid to
the employee.
Remuneration to the Board of Directors, the Executive Board and other key management:
2021/22 2020/21
Amounts in DKK ‘000
Board of
directors
Executive
Board
Other key
manage-
ment
Board of
directors
Executive
Board
Other key
manage-
ment
Group
Wages, salaries and fees 2,483 5,848 7,997 2,350 5,492 6,091
Bonus - 1,164 1,808 - - -
Pensions - 144 331 - 137 238
Total 2,483 7,156 10,136 2,350 5,629 6,329
Share-based remuneration - 1,472 1,162 - 1,112 1,060
Total remuneration 2,483 8,628 11,298 2,350 6,741 7,389
Parent
Wages, salaries and fees 2,350 5,848 4,475 2,350 5,492 3,188
Bonus - 1,164 948 - - -
Pensions - 144 331 - 137 238
Total 2,350 7,156 5,754 2,350 5,629 3,426
Share-based remuneration - 1,472 577 - 1,112 483
Total remuneration 2,350 8,628 6,331 2,350 6,741 3,909
Management comments
On dismissal by the company, the Executive Board shall be entitled to salary in the period of notice and severance
pay totaling up to 12 months’ salary and incentive pay, equivalent to DKK 7.3 million (DKK 7.0 million in 2020/21).
The remuneration for each member of the Board of Directors is as follows:
Group
Amounts in DKK ‘000 2021/22 2020/21
Peter Thostrup, Chair 600 600
Jesper Mailind, Deputy Chair 400 400
Lars Christian Tofft 200 200
Henrik Schimmell, Chair of Audit Committee (from 27 Jan 2022) 300 200
Katja Haukohl Millard (from 27 Jan 2022) 133 -
Ellen Andersen (from 27 Jan 2022) 133 -
Christian Engsted (until 27 Jan 2022), Chair of the Audit Committee 117 350
Flemming Vendbjerg Andersen, employee representative 200 200
Kurt Heick Rasmussen, employee representative 200 200
Kevin Harritsø, employee representative 200 200
Total 2,483 2,350
Management comments
RSU program:
The Board of Directors at RTX has in 2019/20, 2020/21 and 2021/22 granted restricted share units (RSU) to
management as well as key employees as part of the Company’s long-term incentive program. The granted restrict-
ed share units are earned and matured over a three-year period and cannot vest before the Annual General Meetings
in January 2023, January 2024 and January 2025 respectively. Once vested, the employees can freely dispose of
the shares.
64 Financial Statements
RTX Annual Report 2021/22
2.4 Staff costs and remuneration (continued)
The grant is conditioned by defined targets for share price and EBITDA achieved in the three years’ mature period as
well as requirements on employment. If the restrictions for the RSU’s are fulfilled, they are finally transferred at a
price of DKK 0.
The grant is in accordance with the company’s Remuneration Policy. Besides the Executive Board and five other key
management employees, 48 key employees have been granted restricted stock units in 2021/22 under the same
terms as the terms for the Executive Board. The total number of RSU’s is covered by the treasury shares of RTX
A/S.
Due to the weaker financial performance in 2020/21, the number of Restricted Share Units (RSUs) outstanding
for the RSU programs issued in 2019/20 and 2020/21 was reduced (lapsed) for all participants. No such lapsing
occurred based on the financial performance in 2021/22.
Fair value of RSU’s, conditions:
RSUs granted in
2021/22 2020/21 2019/20
Vesting period Feb 2022
- Jan 2025
Feb 2021
- Jan 2024
Feb 2020
- Jan 2023
Price per share 174.4 201.0 225.0
Volatility 0.56 0.50 0.38
Expected dividend 0.69% 1.20% 1.34%
Risk-free interest rate -0.44% -1.40% -0.78%
The expected maturity 3 years 3 years 3 years
Fair value (Black-Scholes) per RSU is calculated to 107.45 136.18 178.33
Number of RSU’s in RTX A/S:
Executive
Board
Other key
manage-
ment
Other
employees Total
Granted in 2018/19 9,699 12,195 21,088 42,982
Granted in 2019/20 9,870 8,039 18,225 36,134
Granted in 2020/21 13,712 11,978 24,400 50,090
Granted in 2021/22 18,605 15,261 33,400 67,266
Granted as per September 30 2022 51,886 47,473 97,113 196,472
Regulations - ceased employments 2018/19 - - - -
Regulations - ceased employments 2019/20 - - - -
Regulations - ceased employments / lapsed 2020/21 -3,538 -3,003 -7,647 -14,188
Regulations - ceased employments 2021/22 - -2,436 -14,303 -16,739
RSU's vested in 2021/22 -9,699 -12,195 -21,088 -42,982
Outstanding as per September 30 2022 38,649 29,839 54,075 122,563
Management comments
Accelerated RSU program:
The Board of Directors at RTX has in 2019/20, 2020/21 and 2021/22 granted accelerated restricted share units
(Accelerated RSU) to top management in addition to the regular RSU programs as part of the Company’s long-term
incentive program. The granted restricted share units are earned and matured over a three-year period (for the pro-
grams granted in 2019/20 and 2021/22) respectily a two-year period (for the period granted in 2020/21) , and
cannot vest before the Annual General Meeting in January 2023 and January 2025. Once vested, the employees
can freely dispose of the shares.
The grant is conditioned by defined highly ambitious targets for revenue, EBITDA and share price achieved in year
two or three of the vesting period as well as requirements on employment. If the restrictions for the RSU’s are
65 Financial Statements
RTX Annual Report 2021/22
2.4 Staff costs and remuneration (continued)
fulfilled, they are finally transferred at a price of DKK 0. The fair value of the Accelerated RSU’s according to IFRS 2
(i.e. the basis for any cost recognition if applicable) are (per Accelerated RSU) DKK 178.33 (2019/20 program),
DKK 149.67 (2020/21 program) and DKK 114.54 (2021/22 program) based on the parameters in the fair value
calculation as shown below. If adjusting for the reduced probability of vesting due to the highly ambitious targets
the fair value (Black Scholes) of each Accelerated RSU when granted was calculated to DKK 40.44 (2019/20
program), DKK 34.45 (2020/21 program) and DKK 72.33 (2021/22 program). The Accelerated RSU programs
granted in 2019/20 and 2020/21 have lapsed due to the highly ambitious financial targets not having been ful-
filled. The Accelerated RSU program granted in 2021/22 is currently considered more likely not to vest. Therefore,
no cost has been expensed to profit and loss regarding these remuneration programs in 2021/22.
The grant is in accordance with the company’s Remuneration Policy. Besides the Executive Board, six other key man-
agement employees have been granted Accelerated restricted stock units in 2022/22 under the same terms as the
terms for the Executive Board. The total number of RSU’s is covered by the treasury shares of RTX A/S.
Fair value of Accelerated RSUs, conditions:
Accelerated RSUs granted in
2021/22 2020/21 2019/20
Vesting period Feb 2022
- Jan 2025
Feb 2021
- Jan 2023
Feb 2020
- Jan 2023
Price per share 174.4 201.0 225.0
Volatility 0.56 0.46 0.38
Expected dividend 0.69% 1.20% 1.34%
Risk-free interest rate -0.44% -0.77% -0.78%
Adjustment for likelihood of achievement (at award) -34% -77% -77%
The expected maturity 3 years 2 years 3 years
Fair value (Black-Scholes) per RSU at award 72.33 34.45 40.44
Fair value (IFRS 2) per RSU at cost recognition if applicable 114.54 149.67 178.33
Number of Accelerated RSU’s in the Group:
Executive
Board
Other key
manage-
ment
Other
employees Total
Granted in 2019/20 52,176 29,127 - 81,303
Granted in 2020/21 65,086 34,193 - 99,279
Granted in 2021/22 33,169 20,943 - 54,112
Granted as per September 30 2022 150,431 84,263 - 234,694
Regulations - ceased employments 2019/20 - - - -
Regulations - ceased employments / lapsed 2020/21 -52,176 -29,127 - -81,303
Regulations - ceased employments / lapsed 2021/22 -65,086 -34,193 - -99,279
Outstanding as per September 30 2022 33,169 20,943 - 54,112
The below amounts have been expensed concerning share-based remuneration:
Group Parent
Amounts in DKK ‘000 2021/22 2020/21 2021/22 2020/21
RSU programs 4,928 4,093 3,954 3,269
Accelerated RSU programs - - - -
Share-based remuneration posted as staff costs 4,928 4,093 3,954 3,269
66 Financial Statements
RTX Annual Report 2021/22
2.5 Development costs
Group Parent
Amounts in DKK ‘000 2021/22 2020/21 2021/22 2020/21
Research and development cost incurred before capitalization 30,568 42,349 30,568 42,349
Value of own work capitalized -12,401 -24,899 -12,401 -24,899
Total amortization and impairment on
own development projects 25,627 18,279 25,627 18,279
Development cost recognized in the profit and loss account 43,794 35,729 43,794 35,729
Development costs are recognized as follows:
Other external expenses 1,849 5,660 1,849 5,660
Staff costs 28,719 36,689 28,719 36,689
Value of own work capitalized -12,401 -24,899 -12,401 -24,899
Amortization on development projects 25,627 18,279 25,627 18,279
Total 43,794 35,729 43,794 35,729
Management comments
Total value of own work capitalized of DKK 15.8 million in 2021/22 according to the income statement includes
own tangible assets of DKK 3.4 million.
2.6 Fees to auditors elected at the annual general meeting
Group Parent
Amounts in DKK ‘000 2021/22 2020/21 2021/22 2020/21
Total fees to Deloitte can be specified as follows:
Statutory audit 600 575 600 575
Other auditing and assurance services 205 138 100 50
Tax advisory services 48 33 48 33
Total 853 746 748 658
Management comments
Fee for services other than statutory audit of the financial statements provided by Deloitte Statsautoriseret Revi-
sionspartnerselskab to the RTX Group amounts to DKK 0.3 million in 2021/22 mainly consisting of fees related
to advice on tax matters regarding taxable income, remuneration report, ESEF filing, and other general accounting
advice.
67 Financial Statements
RTX Annual Report 2021/22
Note 2.6Note 2.5
2.7 Financial income and expenses
Accounting policies
These items comprise interest income and expenses, the interests on lease liabilities recognized in accordance with
IFRS 16, fair value adjustments of investments in trading portfolio (current asset investments), foreign exchange
gains and losses on receivables, liabilities and transactions in foreign currency, amortization premium/allowance on
financial assets and liabilities as well as tax surcharge and repayment under the Danish Tax Prepayment Scheme.
Interest income and interest expenses are accrued based on the principal sum and the effective interest rate. Div-
idends from investments in other securities and equity investments are recognized when the right to the dividends
has been finally obtained.
Group Parent
Amounts in DKK ‘000 2021/22 2020/21 2021/22 2020/21
Financial income
Exchange rate gain (net) 9,502 - 9,775 -
Dividends from subsidiaries - - 1,566 2,586
Other financial income 3,978 1,617 3,978 1,616
Total financial income 13,480 1,617 15,319 4,202
Financial expenses
Interest costs to subsidiaries - - 721 495
Exchange rate losses (net) - 605 - 506
Fair value adjustments of investments in trading portfolio 9,884 4,337 9,884 4,337
Loss on hedging instruments (net) 3,793 96 3,793 96
Financing element, IFRS 16 2,387 2,524 2,190 2,454
Other financial costs 782 689 765 675
Total financial expenses 16,846 8,251 17,353 8,563
Management comments
Amount disclosed as dividends from subsidiaries covers recharge of RSU cost for subsidiaries’ part of the pro-
grams.
2.8 Derivatives
Accounting policies
Derivatives are measured at fair value and recognized as other current receivables or other current liabilities, respec-
tively.
Fair value changes of derivatives which are classified as and qualifies for recognition as cash flow hedges are rec-
ognized in other comprehensive income. When the hedged item is realized, accumulated gain or loss on the hedge
transaction is transferred from other comprehensive income and recognized together with the hedged item.
Fair value changes of derivatives which are classified as and qualifies for fair value hedges are recognized in the
income statement together with the changes in value of the hedged assets or liabilities.
Any derivatives that do not qualify as hedging are recognized as financial items in the income statement.
Management comments
The Group uses commercial hedge transactions to hedge foreign currency exposure related to expected net USD
in-flow against DKK. Hedging is carried out using standard forward contracts.
At 30 September 2022 open hedging contracts of USD 8.6 million (30 September 2021: USD 3.9 million) are
recognized in other current liabilities at a negative fair value of DKK 4.8 million (2020/21: negative fair value of DKK
0.6 million). The 82 open contracts mature gradually over twelve months from the balance sheet date with 39%,
30%, 24% and 7% of the total amount hedged maturing in Q1, Q2, Q3 and Q4 of FY 2022/23 respectively.
68 Financial Statements
RTX Annual Report 2021/22
Note 2.7 -2.8
2.9 Income taxes
Accounting policies
Tax for the year consisting of current tax for the year and changes in deferred tax, is recognized in the income
statement by the portion attributable to the profit/loss for the year and classified directly as equity by the portion
attributable to entries directly on equity.
The current tax payable or receivable is recognized in the balance sheet, stated as tax calculated on this year’s
taxable income, adjusted for prepaid tax. When calculating the current tax for the year, the tax rates in effect at the
balance sheet date are used.
Deferred tax is recognized applying the liability method on all temporary differences between the carrying amount
and tax based value of assets and liabilities.
Deferred tax is calculated based on the planned use of each asset or the planned winding-up of each liability, respec-
tively. Deferred tax is measured by using the tax rates and tax rules of the respective countries which are expected to
apply when deferred tax is expected to be released as current tax.
Deferred tax assets, including the tax base of tax loss carry-forwards, are recognized in the balance sheet at their
estimated realizable value, either as a set-off against deferred tax liabilities or as net tax assets for set-off in future
positive taxable income. At each balance sheet date, it is reassessed whether sufficient taxable income is likely to
occur in the future for the deferred tax asset to be used.
Management comments
The 2020/21 adjustment concerning previous years primarily relates to the temporarily increased tax deductibles
for development costs according to the Danish tax code.
Group Parent
Amounts in DKK ‘000 2021/22 2020/21 2021/22 2020/21
Tax on profit/loss for the year
Current tax on profit/loss for the year -12,733 -206 -12,210 -
Change in deferred tax 5,002 2,650 5,014 2,304
Adjustment concerning previous years
Current tax -883 2,051 -398 1,384
Deferred tax 255 -273 -254 40
Total -8,359 4,222 -7,848 3,728
Reconciliation of the effective tax percentage
Result before tax 42,275 -574 40,314 -1,957
Calculated tax at a tax percentage of 22.0% -9,301 126 -8,869 431
Effect of different tax percentages
for foreign companies 251 286 - -
Tax value of not tax-deductible costs/taxable income 1,319 2,032 1,673 1,873
Adjustment concerning previous years -628 1,778 -652 1,424
-8,359 4,222 -7,848 3,728
Effective tax percentage (%) 19.8% -735.5% 19.5% -190.5%
69 Financial Statements
RTX Annual Report 2021/22
Note 2.9
Group Parent
Amounts in DKK ‘000 2021/22 2020/21 2021/22 2020/21
Deferred Tax
Deferred tax, net at 1 October -5,129 -6,694 -6,581 -8,500
Adjustment of deferred tax concerning previous years 255 -273 -254 40
Foreign exchange adjustment 286 11 - -
Change in deferred tax on profit/loss for the year 5,002 2,650 5,014 2,304
Change in deferred tax on equity for the year -1,610 -823 -1,526 -425
Deferred tax, net at 30 September -1,196 -5,129 -3,347 -6,581
Specification of deferred tax:
Intangible assets -12,239 -13,386 -12,239 -13,386
Plant, equipment and leasehold improvements 2,791 2,673 2,642 2,594
Inventories 2,032 1,324 2,032 1,324
Receivables 2,260 181 2,260 181
Non-current liabilities 1,655 1,947 802 673
Tax loss carryforwards - 199 - 195
Share-based remuneration 2,305 1,933 1,156 1,838
Total -1,196 -5,129 -3,347 -6,581
Which can be specified as follows:
Deferred tax assets 2,151 1,452 - -
Deferred tax liability -3,347 -6,581 -3,347 -6,581
Total -1,196 -5,129 -3,347 -6,581
2.9 Income taxes (continued)
Group Parent
Amounts in DKK ‘000 2021/22 2020/21 2021/22 2020/21
Tax paid/received during the year 724 9,920 -322 10,558
Income taxes, net
Income taxes on 1 October, net 402 -11,352 435 -11,508
Current tax on profit/loss for the year -12,733 -206 -12,210 -
Tax paid during the year
Current year 477 326 6 -
Previous years, net -16 9,554 -327 10,558
Adjustment of current tax concerning previous years, net -883 2,051 -398 1,385
Current tax of changes in equity 1,728 - 1,728 -
Exchange rate adjustments -24 29 - -
Income taxes at 30 September, net -11,049 402 -10,766 435
Which can be specified as follows:
Income tax receivable - 562 - 435
Income tax payable -11,049 -160 -10,766 -
Total -11,049 402 -10,766 435
70 Financial Statements
RTX Annual Report 2021/22
Section 3
Invested Capital
NOTES
3.1 Intangible Assets 71
3.2 Leases 73
3.3 Tangible Assets 75
3.4 Investments in subsidiaries 77
3.5 Deposits 78
3.1 Intangible assets
Accounting policies
Own completed development projects and projects in progress
Development projects financed by RTX are recognized as intangible assets to the extent that it is likely that the
product will generate future financial benefits for the Group, and the development costs associated with each asset
can be measured reliably.
Development projects are measured initially at cost. The cost of development projects comprises costs directly
attributable to the development projects.
Completed development projects are amortized over the expected lifetime. The amortization period is usually three
years. For development projects protected by intellectual property rights, the maximum amortization period is the
remaining term of the rights.
Ongoing development projects recognized in the balance sheet are not amortized, but tested at least annually for
impairment.
Goodwill
Goodwill arisen in relation to business combinations is recognized and measured initially as the difference between
the cost of the acquisition and the fair value of the acquired assets, liabilities and contingent liabilities.
On recognition of goodwill the amount is allocated, at the time of acquisition, to the cash-generating units which are
expected to obtain financial advantages from the acquisition. The determination of cash-generating units follows the
management structure, internal financial management and financial reporting in the Group.
Goodwill is not amortized, but the carrying amount is tested for impairment at least once a year and more frequently
if indications of impairment exist. If the carrying amount of an asset exceeds its recoverable amount, it is written
down to its recoverable amount.
71 Financial Statements
RTX Annual Report 2021/22
Note 3.1
Section 3 Invested Capital
3.1 Intangible assets (continued)
The carrying amount of goodwill is allocated as follows to the respective cash-generating units:
Group
Amounts in DKK ‘000 2021/22 2020/21
Enterprise 7,797 7,797
As the cash generating activities of the business acquired with RTX Hong Kong Ltd. are integrated into the Enterprise
segment, it has been determined that the carrying amount of goodwill is allocated to the Enterprise segment as the
cash-generating unit.
The recoverable amounts for the individual cash-generating units to which the goodwill amounts have been allocated
are calculated on the units’ present value of expected cash flows.
Other intangible assets
Other intangible assets are regarded as having determinable useful lives over which the assets are amortized.
Group
Amounts in DKK ‘000
Own
completed
development
projects
Own
development
projects in
progress
Acquired
license
rights Goodwill
Cost at 1 October 2020 43,729 36,738 6,763 8,269
Internal additions - 21,669 - -
Transfer at completion 45,765 -45,765 - -
Cost at 30 September 2021 89,494 12,642 6,763 8,269
Amortization and impairment at 1 October 2020 -21,664 - -6,763 -472
Amortization for the year -16,892 - - -
Impairment for the year -1,387 - - -
Amortization and impairment at 30 September 2021 -39,943 - -6,763 -472
Carrying amount at 30 September 2021 49,551 12,642 - 7,797
Cost at 1 October 2021 89,494 12,642 6,763 8,269
Internal additions - 19,064 - -
Transfer at completion 14,810 -14,810 - -
Disposals - - -3,165
Cost at 30 September 2022 104,304 16,896 3,598 8,269
Amortization and impairment at 1 October 2021 -39,943 - -6,763 -472
Amortization for the year -25,627 - - -
Reversal relating to disposals 3,165
Amortization and impairment at 30 September 2022 -65,570 - -3,598 -472
Carrying amount at 30 September 2022 38,734 16,896 - 7,797
Group and Parent figures are the same except for goodwill which only relates to Group.
72 Financial Statements
RTX Annual Report 2021/22
3.1 Intangible assets (continued)
Uncertainties and estimates
For calculating the recoverable amount of the cash generating units and own development projects, Management’s
latest budgets and strategy plans for the coming three years are used. These are the inputs for estimating cash
flows from the assets over their expected lifetime, and the cash flows are used in net present value calculations to
determine the recoverable amount. Management estimates that changes that are likely to occur to the assumptions
will not cause the financial value of goodwill or development projects to exceed the recoverable amount. Major
uncertainties in this connection are associated with the determination of the discount rate and growth rates as well
as expected changes in sales prices and production costs in the budget periods.
The determined discount rate reflects market evaluations of the time value of money, reflected in risk free interest
and the specific risks connected to the individual cash-generating unit or own development project. The pre-tax
discount rate used in the calculation of recoverable amount is 13.5% (in 2020/21: 12.5%).
The determined growth rates are based on approved budgets, internal strategy plans and forecast for the coming
three years. Estimated changes in selling prices and production costs are based on historical experiences as well
as expectations for future changes in the market. The prognoses are based on a specific business evaluation of the
expected sales prices and production costs. The changes in sales prices and costs are individually assessed and are
substantially similar to the ones used in the calculations in 2020/21.
Management comments
No impairment loss has been recognized in the income statement for 2021/22 (2020/21: impairment loss of DKK
1.4 million recognized regarding two development projects due to the products developed not gaining the expected
traction in sales partly due to COVID-19). No impairments have been reversed in 2021/22 and in 2020/21.
3.2 Leases
Accounting policies
Right-of-use assets and lease liabilities arising from a lease contract are recognized at the lease commencement
date. The right-of-use asset is initially measured at a cost equal to the corresponding lease liability adjusted for
any initial direct costs and restoration costs. The lease liability is measured at the present value of the future lease
payments discounted using an appropriate RTX incremental borrowing rate.
In determining the lease term, extension or termination options are included if exercise of the options are considered
reasonably certain. Service components separable from leasing components are excluded from the lease liability.
Low value leases and leases with a lease term of 12 months or less are not recognized as a right-of-use asset and
lease liability, but expensed on a straight-line basis in profit or loss.
At subsequent measurement, the right-of-use assets are measured at cost less accumulated depreciation and
impairment losses, adjusted for any remeasurement of the lease liability. The right-of-use assets are depreciated
following a straight-line basis over the term of the lease contract. The lease liabilities are measured at amortized
cost adjusted for any remeasurements or modifications to the contract.
73 Financial Statements
RTX Annual Report 2021/22
Note 3.2
3.2 Leases (continued)
Group
Amounts in DKK ‘000 Buildings
Other fixtures,
tools and equipment
Cost at 1 October 2020 53,960 918
Foreign exchange adjustments 18 -
Disposals -3,482 -83
Additions 14,509 676
Cost at 30 September 2021 65,005 1,511
Depreciation and impairment at 1 October 2020 -5,614 -347
Foreign exchange adjustments -10 -
Depreciation for the year -6,245 -404
Reversal relating to disposals 3,482 83
Depreciation and impairment at 30 September 2021 -8,387 -668
Carrying amount at 30 September 2021 56,618 843
Cost at 1 October 2021 65,005 1,511
Foreign exchange adjustments 959 -
Disposals - -244
Additions 3,350 110
Cost at 30 September 2022 69,314 1,377
Depreciation and impairment at 1 October 2021 -8,387 -668
Foreign exchange adjustments -88 -
Depreciation for the year -6,933 -475
Reversal relating to disposals - 244
Depreciation and impairment at 30 September 2022 -15,408 -899
Carrying amount at 30 September 2022 53,906 478
Parent
Amounts in DKK ‘000 Buildings
Other fixtures,
tools and equipment
Cost at 1 October 2020 50,229 918
Disposals -287 -83
Additions 9,694 676
Cost at 30 September 2021 59,636 1,511
Depreciation and impairment at 1 October 2020 -3,833 -347
Reversal relating to disposals 287 83
Depreciation for the year -4,341 -404
Depreciation and impairment at 30 September 2021 -7,887 -668
Carrying amount at 30 September 2021 51,749 843
Cost at 1 October 2021 59,636 1,511
Disposals - -244
Additions 1,330 110
Cost at 30 September 2022 60,966 1,377
Depreciation and impairment at 1 October 2021 -7,887 -668
Reversal relating to disposals - 244
Depreciation for the year -4,403 -475
Depreciation and impairment at 30 September 2022 -12,290 -899
Carrying amount at 30 September 2022 48,676 478
74 Financial Statements
RTX Annual Report 2021/22
3.2 Leases (continued)
Uncertainties and estimates
In accounting for lease contracts, Management’s assessments are applied in determining the lease term, the likely
use of extension or termination options and the incremental borrowing rate.
Management comments
Right-of-use assets mainly relate to lease contracts on buildings. The additions for 2021/22 mainly relates to
recalculation of lease of office buildings in Denmark (rent adjustment) and new lease contract regarding building in
Hong Kong.
Group Parent
Amounts in DKK ‘000 2021/22 2020/21 2021/22 2020/21
Expenses relating to short term leases 139 22 139 22
Expenses relating to leases of low-value assets 106 99 61 58
Financing element of lease liabilities 2,387 2,524 2,190 2,454
Total cash outflow on lease arrangements 8,047 8,270 6,321 6,321
3.3 Tangible assets
Accounting policies
Plant and equipment are measured at cost less accumulated depreciation and impairment losses. The basis of
depreciation is cost less estimated residual value after the end of useful life.
Straight-line depreciation is made on the basis of the following estimated useful lives of the assets:
Plant and machinery 4 to 10 years
Other fixtures and fittings, tools and equipment, including IT equipment 3 to 7 years
Leasehold improvements Lease period
Depreciation methods, useful lives and residual amounts are reassessed annually. Plant and equipment are written
down to the lower of recoverable amount and carrying amount.
75 Financial Statements
RTX Annual Report 2021/22
Note 3.3
3.3 Tangible assets (continued)
Group
Amounts in DKK ‘000
Plant and
machinery
Other fixtures,
tools and equipment
Leasehold
improvements
Cost at 1 October 2020 31,767 21,992 5,293
Foreign exchange adjustments - 12 7
Additions 3,740 2,210 9,384
Internal additions 3,230 - -
Cost at 30 September 2021 38,737 24,214 14,684
Depreciation and impairment at 1 October 2020 -22,644 -18,034 -2,150
Foreign exchange adjustments - -12 -4
Depreciation for the year -3,788 -2,011 -690
Depreciation and impairment at 30 September 2021 -26,432 -20,057 -2,844
Carrying amount at 30 September 2021 12,305 4,157 11,840
Cost at 1 October 2021 38,737 24,214 14,684
Foreign exchange adjustments - 431 179
Additions 1,119 2,711 885
Internal additions 6,700 - -
Disposals -274 -138 -
Cost at 30 September 2022 46,282 27,218 15,748
Depreciation and impairment at 1 October 2021 -26,432 -20,057 -2,844
Foreign exchange adjustments - -408 -175
Depreciation for the year -3,126 -2,305 -1,456
Reversal relating to disposals - 127 -
Depreciation and impairment at 30 September 2022 -29,558 -22,643 -4,475
Carrying amount at 30 September 2022 16,724 4,575 11,273
Parent
Amounts in DKK ‘000
Plant and
machinery
Other fixtures,
tools and equipment
Leasehold
improvements
Cost at 1 October 2020 31,767 19,645 4,297
Additions 3,740 2,164 9,384
Internal additions 3,230 - -
Cost at 30 September 2021 38,737 21,809 13,681
Depreciation and impairment at 1 October 2020 -22,644 -15,844 -1,209
Depreciation for the year -3,788 -1,936 -658
Depreciation and impairment at 30 September 2021 -26,432 -17,780 -1,867
Carrying amount at 30 September 2021 12,305 4,029 11,814
Cost at 1 October 2021 38,737 21,809 13,681
Additions 1,119 2,558 885
Internal additions 6,700 - -
Disposals -274 -138 -
Cost at 30 September 2022 46,282 24,229 14,566
Depreciation and impairment at 1 October 2021 -26,432 -17,780 -1,867
Depreciation for the year -3,126 -2,199 -1,426
Reversal relating to disposals - 127 -
Depreciation and impairment at 30 September 2022 -29,558 -19,852 -3,293
Carrying amount at 30 September 2022 16,724 4,377 11,273
76 Financial Statements
RTX Annual Report 2021/22
3.4 Investments in subsidiaries
Accounting policies
Investments in subsidiaries are measured at cost or a lower recoverable amount.
Parent
Amounts in DKK ‘000 2021/22 2020/21
Cost at 1 October 38,167 37,342
Additions 911 825
Cost at 30 September 39,078 38,167
Value adjustment at 1 October - -
Value adjustment at 30 September - -
Carrying amount at 30 September 39,078 38,167
Management comments
Additions to investment in subsidiaries are capital contributions due to Group RSU programs covering employees in
the subsidiaries.
Investments in subsidiaries comprise the following entities at 30 September 2022:
Name and registered office
Nominal
share capital
Owner-
ship
Equity
DKK ‘000
Profit for
the year
DKK ‘000
RTX America, Inc., USA T.USD 500 100% 6,300 -33
RTX Hong Kong Ltd., Hong Kong T.HKD 23,325 100% 36,931 2,784
Total 43,231 2,751
Subsidiaries’ addresses and time for establishment:
RTX America, Inc., San Diego, California, USA, established in March 2004.
RTX Hong Kong Ltd., Hong Kong, acquired in January 2006.
77 Financial Statements
RTX Annual Report 2021/22
Note 3.4
3.5 Deposits
Accounting policies
Deposits are measured at cost. Deposits are not depreciated.
Group Parent
Amounts in DKK ‘000 2021/22 2020/21 2021/22 2020/21
Rent and other deposits
Cost at 1 October 6,836 7,938 6,082 7,166
Exchange rate adjustments 135 3 - -
Additions for the year 282 6,089 102 6,082
Disposals for the year -436 -7,194 -261 -7,166
Cost at 30 September 6,817 6,836 5,923 6,082
Carrying amount at 30 September 6,817 6,836 5,923 6,082
78 Financial Statements
RTX Annual Report 2021/22
note 3.5
Section 4
Working Capital
NOTES
4.1 Inventories 79
4.2 Trade Receivables 79
4.3 Contract development projects in progress 81
4.4 Provisions 82
4.5 Other payables 83
4.1 Inventories
Accounting policies
Inventories are measured at cost using the FIFO method, or net realizable value if this is lower. The net realizable
value of inventories is calculated as the estimated selling price less costs of completion and necessary sales costs.
Group Parent
Amounts in DKK ‘000 2021/22 2020/21 2021/22 2020/21
Raw materials and consumables 63,530 13,121 63,530 13,121
Finished goods 38,964 19,250 38,964 19,250
Total inventories 102,494 32,371 102,494 32,371
Write-down of inventories for the year 3,375 722 3,375 722
4.2 Trade receivables
Accounting policies
Receivables comprise trade receivables, receivables from project contracts as well as other receivables. Receivables
are financial assets with fixed or determinable payments which are not listed at an active market and which are not
derivatives.
On initial recognition, receivables are measured at fair value and subsequently at amortized cost less allowance for
receivables not expected recovered. Allowances for receivables not expected recovered are recognized in the income
statement as other external expenses. The expected credit loss approach was applied for receivables other than
trade receivables.
79 Financial Statements
RTX Annual Report 2021/22
Note 4.1 - 4.2
Section 4 Working Capital
4.2 Trade receivables (continued)
RTX applies the simplified expected credit loss approach of IFRS 9 whereby an expected loss allowance is created
upon initial recognition of a receivable. The loss model used for determining the expected loss allowance is based
on historic information and consider forward looking inputs. In the loss model, receivables are grouped using credit
risk characteristics like obtained credit insurance, customer bankruptcy etc. and days past due in determining the al-
lowance. Subsequent to initial recognition, receivables are assessed individually in the event that specific indicators
point to further allowance for bad debts or other situations were a receivable is not expected recovered.
Group Parent
Amounts in DKK ‘000 2021/22 2020/21 2021/22 2020/21
Receivables, gross 198,710 149,879 198,710 149,879
Provision for expected losses -3,225 -986 -3,225 -986
Carrying amount at 30 September 195,485 148,893 195,485 148,893
Provision for the year 2,239 268 2,239 268
Provisions account at 1 October 986 718 986 718
Losses recorded for the year - -198 - -198
Provisions for expected losses for the year 2,239 466 2,239 466
Provisions account at 30 September 3,225 986 3,225 986
The Group and Parent company have no overdue trade receivables for which no write-down is recognized, with the
exception of receivables where sufficient collateral have been attained.
Uncertainties and estimates
The Group’s credit risks related to trade receivables are assessed on an ongoing basis.
It is RTX’s experience that at times the credit risk is relatively high, as a substantial part of the outstanding amounts
often can be related to a relatively small number of partners and customers.
Management comments
For sale on credit RTX makes use of credit evaluations, credit insurance and bank guarantees to secure the debts.
On the date of the balance sheet, approximately 46% (2020/21: 57%) of the company’s outstanding debts is
secured through credit insurance.
In general, RTX has experienced limited risk of loss on accounts receivables. During the past 5 years only three cases
resulted in a loss being recorded and for a total cost equal to less than 0.1% of revenue in the five-year period. Cal-
culated provision for the expected credit loss showed an insignificant difference to already recorded provisions.
Bad debts provision for the year primarily relates to receivables due more than 120 days. Please refer to note 5.6
for a list of the outstanding debts sorted by maturity. RTX is closely monitoring any effects from COVID-19 and
the current macroeconomic uncertainty on customers’ ability to pay, however only limited negative impact has been
observed as of 30 September 2022.
80 Financial Statements
RTX Annual Report 2021/22
4.3 Contract development projects in progress
Accounting policies
Contract development projects are measured at selling price of the work performed at the balance sheet date (per-
centage of completion) less on account invoicing.
The selling price is measured based on the percentage of completion on the balance sheet date and the total
estimated revenue (total selling price at completion) from each development project. Usually, the percentage of
completion is estimated as the ratio between the company’s used resources compared to latest total estimate of
required resources.
Project costs are recognized as expenses in the income statement when incurred.
If the outcome of a development project cannot be estimated reliably, the development project is measured at costs
incurred to the extent these can be recovered.
When total project costs are likely to exceed total project income for a development project, the expected loss is
immediately recognized as costs.
The individual development project in progress is recognized in the balance sheet under receivables or liabilities,
depending on whether net value is a receivable or a liability.
Group Parent
Amounts in DKK ‘000 2021/22 2020/21 2021/22 2020/21
Construction cost plus recognized profit to date 47,625 56,685 47,625 56,685
Invoiced on account -47,103 -48,246 -47,103 -48,246
Contract development projects in progress, net 522 8,439 522 8,439
Which are recognized in the balance sheet as follows:
Receivables 8,037 10,163 8,037 10,163
Current liabilities -7,515 -1,724 -7,515 -1,724
Contract development projects in progress, net 522 8,439 522 8,439
Total sales value of uncompleted contracts 77,273 76,822 77,273 76,822
Sales value hereof of performed work recognized as income -47,625 -56,685 -47,625 -56,685
Sales value of non-performed work 29,648 20,137 29,648 20,137
Sales value of non-performed work at the balance sheet date
in % of total volume of orders, etc 38% 26% 38% 26%
Revenue recognized that was included in the contract liability balance at the beginning of 2021/22: DKK 1.7 million
(2020/21: DKK 1.3 million).
The 38% share of total volume of orders that is non-performed at the balance sheet date is expected to be realized as
revenue within 12 months from the balance sheet date.
81 Financial Statements
RTX Annual Report 2021/22
Note 4.3
4.4 Provisions
Accounting policies
Provisions are recognized when the Group has a legal or constructive obligation as a result of events in this or previ-
ous financial years, and repayment of the liability is likely to result in an outflow of the Group’s financial resources.
Provisions are measured as the best estimate of costs expected for the obligation to be settled on the balance sheet
date.
Warranty obligations comprise commitments to remedy defects and deficiencies on goods sold within the warranty
period. The liabilities are based on historical experiences.
Provisions on dismissed employees are recognized at the date of the employee’s dismissal and are measured as the
amount of the salary paid to the employees without any demand for services in return.
Group Parent
Amounts in DKK ‘000 2021/22 2020/21 2021/22 2020/21
Provision for warranty obligations
Provisions at 1 October 2,880 3,065 2,880 3,065
Provisions made during the year 1,856 1,440 1,856 1,440
Provisions used during the year -1,575 -1,625 -1,575 -1,625
Provisions at 30 September 3,161 2,880 3,161 2,880
Provisions for other obligations
Provisions at 1 October 178 300 178 300
Provisions made during the year 487 178 487 178
Provisions used during the year -178 -300 -178 -300
Provisions at 30 September 487 178 487 178
Total provisions at 30 September 3,648 3,058 3,648 3,058
Provisions are recognized in the balance sheet as follows:
Current liabilities (less than 1 year) 1,793 1,909 1,793 1,909
Non-current liabilities (between 1 and 2 years) 1,855 1,149 1,855 1,149
Total 3,648 3,058 3,648 3,058
82 Financial Statements
RTX Annual Report 2021/22
note 4.4
4.5 Other payables
Group Parent
Amounts in DKK ‘000 2021/22 2020/21 2021/22 2020/21
Wages and salaries, personal income taxes,
social security costs, holiday pay, etc. 27,767 37,738 20,935 34,044
Holiday allowance, etc. 5,495 6,742 3,803 5,413
Other costs payable 5,091 3,004 4,673 2,672
Current liabilities 38,353 47,484 29,411 42,129
Holiday allowance 13,389 13,272 13,389 13,272
Non-current liabilities 13,389 13,272 13,389 13,272
Total 51,742 60,756 42,800 55,401
Management comments
Carrying amount of due items concerning wages and salaries, personal income taxes, social security costs, holiday
pay etc. and other expenses due etc. equals the fair value of the liabilities.
The holiday allowance obligations represent the Group’s obligations to pay salary during holiday periods which the
employees have earned the right to hold in subsequent financial years at the balance sheet date.
4.4 Provisions (continued)
Uncertainties and estimates
The warranty obligations are prepared based on previous years’ experience. The expenses are expected to be paid in
the period 1 October 2022 – 30 September 2024 (2020/21: 1 October 2021 – 30 September 2023).
Management comments
The warranty obligations concern estimated return obligations for any faulty products. The warranty period can be up
to two years. Other obligations are primarily related to obligations for employees dismissed and disemployed.
83 Financial Statements
RTX Annual Report 2021/22
Note 4.5
Section 5
Capital Structure
and Financing
NOTES
5.1 Current asset investments 84
5.2 Share capital 85
5.3 Treasury shares 86
5.4 Earnings per share 86
5.5 Dividend 86
5.6 Financial risks and financial instrument 87
5.1 Current asset investments
Accounting policies
The Group’s portfolio of current asset investments is managed and evaluated on a fair value basis as reflected in
the internal information provided to management. The portfolio is measured at fair value through profit and loss as
required by IFRS 9 for a business model with these characteristics.
Current assets in the trading portfolio
The Group’s available funds are invested via mutual funds in Danish bonds with a solid credit rating – primarily in
Danish mortgage bonds (59% at the balance sheet date) and secondarily in Danish government bonds (41% at
the balance sheet date). RTX has engaged Danske Bank to provide active investment management of the Group’s
portfolio of securities.
84 Financial Statements
RTX Annual Report 2021/22
Section 5 Capital Structure and Financing Note 5.1
5.1 Current asset investments (continued)
Group Parent
Amounts in DKK ‘000 2021/22 2020/21 2021/22 2020/21
Cost at 1 October 102,680 152,423 102,680 152,423
Additions for the year 724 1,797 724 1,797
Disposals for the year -68,703 -51,540 -68,703 -51,540
Cost at 30 September 34,701 102,680 34,701 102,680
Value adjustment at 1 October -1,728 1,587 -1,728 1,587
Value adjustments for the year -9,884 -4,337 -9,884 -4,337
Disposals for the year 6,994 1,022 6,994 1,022
Value adjustment at 30 September -4,618 -1,728 -4,618 -1,728
Carrying amount at 30 September 30,083 100,952 30,083 100,952
The underlying bonds invested in via mutual funds have
the below characteristics:
Average expected maturity of (years) 4.3 4.9 4.3 4.9
Average effective rate of interest of 3.8% 0.1% 3.8% 0.1%
Bonds are expected to be redeemed within the following
periods from the balance sheet date:
Less than one year 1,805 36,343 1,805 36,343
Between one and three years 14,741 7,067 14,741 7,067
Between three and five years 1,504 11,105 1,504 11,105
After five years 12,033 46,437 12,033 46,437
Total 30,083 100,952 30,083 100,952
5.2 Share capital
The share capital of DKK 42,339,190 (2020/21: 43,214,190) consists of 8,467,838 (2020/21: 8,642,838)
shares of DKK 5.
The Group holds 284,924 treasury shares at 30 September 2022 (502,906 shares at 30 September 2021).
There are no shares with special rights.
Parent
Amounts in DKK ‘000 2021/22 2020/21
Development in share capital:
Share capital at 1 October 43,214 43,214
Annulment of treasury shares -875 -
Share capital at 30 September 42,339 43,214
Number of shares at DKK 5 at 30 September 8,467,838 8,642,838
85 Financial Statements
RTX Annual Report 2021/22
Note 5.2
5.3 Treasury shares
Accounting policies
Acquisition and selling prices of treasury shares as well as dividends on these are recognized directly as equity under
retained earnings.
Parent
Amounts in DKK ‘000
Nominal
value
Number
of shares
at DKK 5
%
of share
capital
Trans-
action
price
2021/22
Shareholding at 1 October 2021 2,515 502,906 5.8% 96,455
Disposal treasury shares -215 -42,982 -0.5% -7,121
Annulment of treasury shares -875 -175,000 -2.0% -34,130
Shareholding at 30 September 2022 1,425 284,924 3.4% 55,204
Fair value of shareholding at 30 September 2022, DKK ‘000 32,766
2020/21
Shareholding at 1 October 2020 1,508 301,522 3.5% 55,286
Purchase for the year 1,288 257,520 3.0% 50,049
Disposal treasury shares -281 -56,136 -0.6% -8,880
Shareholding at 30 September 2021 2,515 502,906 5.8% 96,455
Fair value of shareholding at 30 September 2021, DKK ‘000 82,979
5.4 Earnings per share
The calculation of earnings per share is based on the following:
Group
Amounts in DKK ‘000 2021/22 2020/21
1,000 shares
Average number of shares 8,558 8,643
Average number of treasury shares -389 -400
Average number of shares in circulation 8,169 8,243
Average diluted effect on outstanding RSU 29 59
Average diluted number of shares 8,198 8,302
Profit/loss for the year in DKK ‘000 33,916 3,648
Earnings per share (DKK) 4.2 0.4
Diluted earnings per share (DKK) 4.1 0.4
5.5 Dividend
No dividends will be recommended for financial year 2021/22 (2020/21: no dividend). RTX did not pay dividends
during 2021/22 (2020/21: Dividends of DKK 20.7 million were paid in January 2021 equivalent to a dividend per
share of DKK 2.50).
Dividends for the shareholders in RTX have no tax related consequences to RTX A/S.
86 Financial Statements
RTX Annual Report 2021/22
Note 5.3 - 5.5
5.6 Financial risks and financial instruments
Categories of financial instruments
Group Parent
Amounts in DKK ‘000 2021/22 2020/21 2021/22 2020/21
Trade receivables 195,485 148,893 195,485 148,893
Other receivables 17,648 9,428 16,361 8,182
Cash at bank and in hand 43,725 19,461 41,054 16,419
Total receivables and cash measured at amortized cost 256,858 177,782 252,900 173,494
Current asset investments 30,083 100,952 30,083 100,952
Financial assets at fair value through income statement 30,083 100,952 30,083 100,952
Lease liabilities 59,196 61,396 53,794 56,485
Payables to subsidiaries - - 45,909 33,883
Trade payables 80,517 61,562 80,034 61,375
Other payables 46,984 60,178 38,042 54,823
Financial liabilities measured at amortized cost 186,697 183,136 217,779 206,566
Financial instruments (hedging) 4,758 578 4,758 578
Financial liabilities at fair value through
other comprehensive income 4,758 578 4,758 578
Management comments
Financial risk management policy
As a consequence of its operations, investments and financing, RTX is primarily exposed to changes in exchange
rates and the level of interest. The Parent manages the Group’s financial risks and coordinates the Group’s cash
management including financing and investment of surplus liquidity. The Group can use derivatives to some extent.
It is the Group’s policy not to conduct active speculation in financial risks, but only hedge future net cash flows
The Group’s financial management is directed towards management and reduction of financial risks which is a direct
consequence of the Group’s operations, investments and financing. The objective is that the Group’s financial man-
agement will contribute to increasing the predictability of the financial performance, including reducing the impact of
foreign exchange rate fluctuations on the income statement.
Liquidity risks
The Group ensures sufficient cash resources through cash flow monitoring and control as well as through the
Group’s portfolio of current asset investments.
In order to reduce the risk on deposits, RTX only places deposits in banks with a high credit worthiness and invest-
ments in short-term bonds. Bank deposits carry a floating rate.
The liquidity reserve in the Group is composed as follows:
Group Parent
Amounts in DKK ‘000 2021/22 2020/21 2021/22 2020/21
Current asset investments in the trading portfolio 30,083 100,952 30,083 100,952
Cash at bank and in hand 43,725 19,461 41,054 16,419
Total 73,808 120,413 71,137 117,371
87 Financial Statements
RTX Annual Report 2021/22
Note 5.6
5.6 Financial risks and financial instruments (continued)
The maturity dates on financial liabilities are specified below. Other than the carrying amounts, the specified
amounts represent the amounts due including interests etc.
Group
Amounts in DKK ‘000
Carrying
amount
Total
cash flow,
including
interest
Within
one year
Between
one and
five years
After five
years
Lease liabilities 59,196 70,556 9,071 25,751 35,734
Trade payables 80,517 80,517 80,517 - -
Other payables 51,742 51,742 38,353 13,389 -
Total 191,455 202,815 127,941 39,140 35,734
Parent
Amounts in DKK ‘000
Carrying
amount
Total
cash flow,
including
interest
Within
one year
Between
one and
five years
After five
years
Lease liabilities 53,794 66,006 6,231 24,041 35,734
Trade payables 80,034 80,034 80,034 - -
Other payables 42,800 42,800 29,411 13,389 -
Total 176,628 188,840 115,676 37,430 35,734
Management comments
Credit risks
The Group’s primary credit risk is related to trade receivables. The Group’s credit risks are assessed on an ongoing
basis concerning the trade receivables. By experience, a relatively large credit risk may occur from time to time as a
large part of receivables often relates to a relatively small number of counterparties and customers.
The level of risk related to the trade receivables is highly correlated with the financial status of the debtor. RTX uses
credit insurance to the extent possible to secure the outstanding amounts. RTX has one single significant trade debt-
or responsible for 18% of total accounts receivables (2020/21: 22%), for whom it has not been possible to obtain
credit insurance. This debtor has been a close partner to RTX for a number of years and has a solid payment history
which has until date not resulted in any losses.
Trade receivables not written down can be specified as follows:
Group Parent
Amounts in DKK ‘000 2021/22 2020/21 2021/22 2020/21
Amounts not due 184,430 134,799 184,430 134,799
Amounts due with up to 30 days 7,204 7,954 7,204 7,954
Due between 30 and 60 days 1,693 3,940 1,693 3,940
Due between 60 and 90 days - 26 - 26
Due between 90 and 120 days 931 - 931 -
Due with more than 120 days 1,227 2,174 1,227 2,174
Total 195,485 148,893 195,485 148,893
Approx. 48% (2020/21: 57%) of the company’s receivables are secured by credit insurance on the balance sheet
date. Provisions for loss on trade receivables are specified in note 4.2. Approximately 75% of amounts due at the
balance sheet date have been collected during October 2022 (2020/21: more than 70%).
88 Financial Statements
RTX Annual Report 2021/22
Specification of the Group’s risks in foreign currencies:
Sensitivity
Amounts in DKK ‘000
Cash and
current asset
investments Receivables Liabilities Hedging
Net
position
Expected
change in
currency
exchange rate
Hypothetical
effect on
result of the
year before
tax
Hypothetical
effect before
tax on equity
Group
EUR 723 4,004 31 - 4,758 1% 48 48
USD 34,565 205,279 -82,040 -65,225 92,579 10% 9,258 9,258
Other 1,441 - -14,289 - -12,828 5% -642 -642
Total at 30 September 2022 36,729 209,283 -96,298 -65,225 84,489
EUR 7,948 3,699 -39 - 11,608 1% 116 116
USD 9,375 146,818 -48,138 -24,885 83,170 10% 8,317 8,317
Other 1,169 - -10,645 - -9,476 5% -474 -474
Total at 30 September 2021 18,492 150,517 -58,822 -24,885 85,302
Specification of the Parent’s risks in foreign currencies:
Parent
EUR 554 4,004 31 - 4,589 1% 46 46
USD 33,495 205,279 -82,682 -65,225 90,867 10% 9,087 9,087
HKD - - -44,015 - -44,015 10% -4,402 -4,402
Other 9 - 20 - 29 5% 1 1
Total at 30 September 2022 34,058 209,283 -126,646 -65,225 51,470
EUR 7,748 3,699 -39 - 11,408 1% 114 114
USD 7,692 146,818 -48,546 -24,885 81,079 10% 8,108 8,108
HKD - - -33,231 - -33,231 10% -3,323 -3,323
Other 12 - 16 - 28 5% 1 1
Total at 30 September 2021 15,452 150,517 -81,800 -24,885 59,284
5.6 Financial risks and financial instruments (continued)
Management comments
Currency risks
The Group is exposed to exchange rate fluctuations as the individual
Group entities make investments, conduct purchase and sales transac-
tions and have receivables and payables in foreign currencies. The Group’s
revenue to customers outside Denmark has been more than 98% of total
revenue over the past several years. Moreover, the majority of the Group’s
purchase of products etc. from sub-suppliers is paid in foreign currencies.
The Group can enter into commercial hedging transactions, to the extent
considered appropriate, to lower any currency exposure. In 2021/22 the
Group used commercial hedging transactions to lower the foreign curren-
cy risk of expected net USD in-flow against DKK.
The sensitivity – the hypothetical effect om result of the year (and on
equity) before tax – for the various currencies are calculated as the net
position multiplied by the expected change in currency exchange rates.
89 Financial Statements
RTX Annual Report 2021/22
5.6 Financial risks and financial instruments (continued)
Management comments
Interest rate risk
The Group is primarily exposed to interest rate risks through interest-bearing assets and liabilities. The overall objec-
tive of controlling the interest rate risk is to reduce the negative impacts of interest rate fluctuations on earnings and
the balance sheet.
The Group is only directly exposed to interest rate risks on bank deposits and indirectly on excess liquidity invested in
short term liquid bonds in DKK with a strong credit rating. Please refer to note 5.1 on current asset investments.
Uncertainties and estimates
Fluctuations in the interest rate level affect the Group’s bond portfolios and bank deposits. An increase in the inter-
est rate level of 1% point per annum compared to the interest rate level at the balance sheet date will expectedly
have a positve impact of DKK 0.2 million (30 September 2021: negative impact of DKK 3.3 million) before tax on
the Group’s income statement and equity. The calculation is based on a) the Group’s cash position multiplied by
the increased interest rate assumed and b) the effect of the assumed interest rate increase on the fair value of the
current asset investments as calculated by the Company’s bank which manages the investment portfolio.
A decline in the interest rate level will expectedly have a larger positive impact on the income statement and equity.
Management comments
Capital structure
The Group’s capital structure is characterized by a considerable equity share. The business conditions for RTX
A/S are characterized by a high degree of uncertainty, which requires a substantial equity, among other things to
implement large and long-term development projects at the Group’s own expense, for instance in connection with
the set-up of technology platforms or by cultivating new business areas and markets. Please refer to the section on
Capital Structure and Allocation in the Management Review.
The Group’s equity share amounted to 59.6% at the end of the financial year 2021/22 compared to 59.5% in
2020/21.
Management comments
Financial gearing
The Company’s Board of Directors reviews the Group’s capital structure in connection with the announcements of in-
terim reports and annual reports. As part of these reviews, the Board of Directors reviews the Group’s cost of capital
and the risks related to the various types of capital.
The financial gearing in the Group, calculated as the ratio of interest-bearing net debt to equity, can be calculated at
the balance sheet date as follows:
Group
Amounts in DKK ‘000
Beginning
of year
Cash
flow
Currency
effects
Lease
interests
Additions
and
disposals
End of
year
Lease liabilities 61,396 -8,047 153 2,387 3,308 59,196
Current asset investments
in the trading portfolio -100,952 -30,083
Cash at bank and in hand -19,461 -43,725
Interest-bearing net debt -59,017 -14,612
Equity 288,533 331,640
Financial gearing -0.20 -0.04
Compliance with loan agreement terms
The Group has not neglected or been in breach of loan agreements in the financial year or the comparative year.
90 Financial Statements
RTX Annual Report 2021/22
Fair value hierarchy for financial instruments
The below indicates the classification of the financial instruments divided in accordance with the fair value hierarchy:
• Listed prices in an active market for the same type of instrument (level 1)
• Listed prices in an active market for similar assets or liabilities or other valuation methods, where all significant
input is based on observable market data (level 2)
• Valuation methods, where any significant input is not based on observable market data (level 3)
Group
Amounts in DKK ‘000 Level 1 Level 2 Level 3 Total
Financial instruments (hedging), liability - -4,758 - -4,758
Bonds listed on the stock exchange,
in the trading portfolio 30,083 - - 30,083
Financial net assets at fair value at 30 September 2022 30,083 -4,758 - 25,325
Financial instruments (hedging), liability - -578 - -578
Bonds listed on the stock exchange,
in the trading portfolio 100,952 - - 100,952
Financial net assets at fair value at 30 September 2021 100,952 -578 - 100,374
Financial hedging instruments comprise standard foreign exchange forward contracts. The calculation of fair value
for these standard hedging instruments are made by the Company’s bank with the USD/DKK spot vs. forward
exchange rate as the main elements affecting the fair value of the contracts.
5.6 Financial risks and financial instruments (continued)
91 Financial Statements
RTX Annual Report 2021/22
Section 6
Other Disclosure
Requirements
NOTES
6.1 Contingent Liabilities, Collateral
and Contractual Obligations 92
6.2 Other Items with no Effect on Cash Flow 93
6.3 Related Parties 93
6.4 Events after the Balance Sheet Date 93
6.5 Accounting Principles Applied 94
6.1 Contingent liabilities, collateral and contractual obligations
Accounting policies
Contingent liabilities
The Group has not incurred any guarantee commitments and has not undertaken any warranty and supply obliga-
tions other than the obligations and guarantees relating to the services and products developed by the Group.
In 2021/22, RTX A/S has not provided payment guarantees etc. which was also the case in 2020/21.
Contractual obligations
As part of the Group’s business the usual customer and supplier agreements etc. have been concluded, letters of in-
tent have been issued to cooperative partners, and moreover, agreements have been entered into on normal business
terms.
92 Financial Statements
RTX Annual Report 2021/22
Note 6.1Section 6 Other Disclosure Requirements
6.2 Other items with no effects on cash flow
Group Parent
Amounts in DKK ‘000 2021/22 2020/21 2021/22 2020/21
Change in write-down to net realizable value
of current assets 3,767 872 3,767 872
Change in provisions 590 -307 590 -307
Share-based remuneration 4,866 4,093 3,955 3,268
Unrealized exchange rate adjustments etc. 5,828 -1,955 454 -2,060
Total 15,051 2,703 8,766 1,773
6.3 Related parties
Transactions between related parties
Related parties with significant interest in RTX include the company’s Board of Directors, Executive Board and other
key management as well as these persons’ related nearest family members. In addition, related parties comprise
Group entities. An overview of Group entities is disclosed in note 3.4.
Board of Directors and Executive Board
Management’s remuneration and share-based remuneration are stated in note 2.4. Three members of the Board of
Directors (the employee representatives) are employed in RTX A/S and for their employment they receive a salary
equivalent to their position on market-based terms. In 2021/22 the amount totaled DKK 2.3 million (2020/21:
DKK 2.2 million).
Subsidiaries
In 2021/22 trade etc. between RTX A/S and related parties amounted to DKK 54.1 million (2020/21: DKK 46.2
million). There have been no transactions between the subsidiaries in 2021/22.
Transactions with subsidiaries have comprised the following:
Subsidiaries
Amounts in DKK ‘000 2021/22 2020/21
Purchase of services from subsidiaries 54,149 46,221
Received dividends from subsidiaries (recharge of RSU costs) 1,566 2,586
Interest costs for subsidiaries 721 495
Payables to subsidiaries 45,909 33,883
Transactions with subsidiaries are eliminated in the consolidated financial statements in accordance with the applied
accounting policies.
In addition, intra-Group balances with subsidiaries comprise intra-Group loans as well as ordinary business balances
regarding purchase and sale of services.
During the year no transactions were performed between RTX and the Board of Directors, Executive Board, other key
management, large shareholders or other related parties, apart from payment of normal management remuneration
as disclosed in note 2.4.
6.4 Events after the balance sheet date
No material events with effect for the annual report have occurred after the balance sheet date.
6.3 Related parties (continued)
93 Financial Statements
RTX Annual Report 2021/22
Note 6.2 - 6.4
6.5 Accounting principles applied
Accounting policies
In addition to the descriptions in Notes 1.1 - 6.4, the accounting principles are as described below.
Income statement
Other external costs
Other external costs include costs for premises, marketing and sales, administration, loss of debtors, etc. Other
external costs also include external costs of development for own financed projects that does not meet the criteria
for capitalization.
Balance sheet
Impairment of tangible and intangible assets and capital shares in subsidiaries
The carrying values of tangible and intangible assets with definite life-time, as well as the Parent Company’s
capital shares in subsidiaries, are reviewed at the balance sheet date to determine whether there are indications of
impairment. If there are indications of impairment, the recoverable value is estimated in order to establish the need
for any write-down and the extent thereof. For ongoing development projects and goodwill, the recoverable value is
estimated annually, regardless of whether there are indications of impairment.
If the individual assets do not generate cash flows independently of other assets, the recoverable amount is estimat-
ed for the smallest cash-generating unit to which the asset belongs.
The recoverable amount is the higher of an asset’s fair value less sales costs and capital value. The recoverable
amount is determined as the present value of the discounted future net cash flow from the activities goodwill relates
to. In calculating the present value, the discount rate applied reflects a risk-free rate added an asset specific risk
premium.
If the recoverable value is estimated to be less than the carrying amount, the recoverable amount is used. Impair-
ment losses are recognized in the income statement.
On any subsequent reversal of impairments, the carrying value is increased to the adjusted estimate of the recovera-
ble amount. However, this cannot exceed the carrying amount that the asset would have had in case of a non-impair-
ment. Impairment of goodwill is not reversed.
Other financial liabilities
Other financial liabilities, including bank loans, trade payables and payables to public authorities, etc., are initially
measured at fair value, corresponding to the proceeds received net of any transaction costs. Liabilities are sub-
sequently measured at amortized cost using the effective interest method, whereby the difference between the
proceeds and the nominal value is recognized as financial costs over the term of the loan.
Cash flow statement
The cash flow statement is prepared using the indirect method divided into operating, investing and financing activi-
ties and the impact of how these cash flows have affected the cash position for the year. Cash flows from operations
are calculated as net operating profit adjusted for non-cash operating items and changes in working capital, less net
financial income and expenses and the financial corporation tax.
Cash flows from investing activities include payments in connection with acquisition and divestment of companies
and financial assets as well as acquisition, development, improvement and sale of intangible and tangible assets.
Cash flows from financing activities comprise changes in the Parent Company’s share capital and related costs as
well as the raising and repayment of loans, repayment of interest-bearing debt and lease liabilities, acquisition and
disposal of treasury shares and payment of dividends.
Cash and cash equivalents comprise cash less any overdraft facilities that are an integral part of the Group’s cash
management.
94 Financial Statements
RTX Annual Report 2021/22
Note 6.5
Ratio definitions and calculation formulae
Earnings per Share (EPS) and Diluted Earnings per Share (DEPS) are calculated in accordance with IAS 33.
e other ratios have been calculated in accordance with the latest version of “Recommendations & Financial Ra-
tios” issued by the Danish Society of Financial Analysts, unless otherwise indicated.
Operating profit/loss
1)
Profit/loss before financial income and expenses
Growth in net turnover
1) 2)
(Revenue in year n - revenue in year n - 1) * 100
Revenue in year n – 1
Profit margin
1)
Operating profit/loss * 100
Revenue
Return on invested capital Operating profit/loss before amortization (EBITA) * 100
(ROIC including goodwill)
1)
Average invested capital including goodwill
Return on equity Profit/loss from ordinary activities after tax * 100
Average equity
Equity ratio
2)
Equity at year-end * 100
Total assets at year-end
Revenue per employee
2)
Revenue
Average number of full-time employees
Operating profit per employee
2)
Operating profit/loss
Average number of full-time employees
Earnings per share (EPS) Profit/loss from ordinary activities after tax
Average number of shares in circulation each at a nominal value of DKK 5
Diluted earnings per share (DEPS) Profit/loss from ordinary activities after tax
Average number of diluted shares each at a nominal value of DKK 5
Equity value per share
2)
Equity at year-end
Number of shares in circulation at year-end
Dividends per share Total dividends paid
Average number of issued shares each at a nominal value of DKK 5
1)
Key ratios have been calculated on the basis of items comprising the Group’s continuing operations.
2)
Not defined by the Danish Association of Financial Analysts.
Computation of earnings per share and diluted earnings per share is specified in note 5.4.
95 Financial Statements
RTX Annual Report 2021/22
Ratio definitions and calculation formulae
Management’s Statement
Executive Board
Board of Directors
97
RTX Annual Report 2021/22 Statements
Managements Statement
Independent Auditor’s Report
Report on the consolidated financial statements and
the parent financial statements
Opinion
Basis for opinion
Key audit matters
98
RTX Annual Report 2021/22 Statements
Independent Auditors Report
Statement on the management commentary
Management’s responsibilities for the consolidated financial statements
and the parent financial statements
Auditor’s responsibilities for the audit of the consolidated financial
statements and the parent financial statements
99
RTX Annual Report 2021/22 Statements
100
RTX Annual Report 2021/22 Statements
Report on compliance with the ESEF Regulation
CVR No. 33963556
MNE no mne 10052
MNE no mne34492
101
RTX Annual Report 2021/22 Statements
We aim to strengthen our customers’
competitiveness by delivering ‘turn-key’ customized
solutions that make a difference in the market.
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RTX Annual Report 2021/22
Helping people perform at their best
Subsidiaries
RTX Hong Kong Ltd.
8/F Corporation Square
8 Lam Lok Street
Kowloon Bay
Hong Kong
Phone: +852 2487 3718
Fax: +852 2480 6121
rtx.hk
RTX America, Inc.
10620 Treena St, Suite 230
San Diego
CA 92131
USA
Phone: +1 858 935 6152
rtx.dk
Head office
RTX A/ S
Phone: +45 9632 2300
Fax: +45 9632 2310
VAT no: 17 00 21 47
rtx.dk
103
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Design and production: Noted
rtx.dk