Nordic Semiconductor Asa · OSL:NOD

Nordic Semiconductor Asa — Nordic Semiconductor Ord — Q3 2024 Earnings Presentation

21 slides from Nordic Semiconductor Asa's earnings presentation, Oct 24, 2024

1. Slide 1: Quarterly Presentation Q3 2024

   © Nordic Semiconductor Quarterly Presentation Q3 2024 October 24, 2024

2. Slide 2: Disclaimer

   © Nordic Semiconductor Disclaimer The following presentation is being made only to, and is only directed at, persons to whom such presentation may lawfully be communicated (“relevant persons”). Any person who is not a relevant person should not act or rely on this presentation or any of its contents

3. Slide 3: Today's presenters

   © Nordic Semiconductor Today’s presenters Vegard Wollan Pål Elstad CEO CFO 3

4. Slide 4: Revenue recovery as guided

   © Nordic Semiconductor Revenue recovery as guided Quarterly revenue development (USDm) Q3 2024: § Revenue of USD 159 million, marking a return to year-on-year growth § Sequential improvement from Q2 supported by seasonality § Gross margin of 50%, EBITDA USD 16m Q4 2024 guidance: § Revenue of USD 130

5. Slide 5: Top-10 and broad market split stabilizing

   © Nordic Semiconductor Top-10 and broad market split stabilizing Bluetooth revenue composition (USDm) 700 600 63% 60% 58% 57% 56% 500 50% § High priority to regain 400 44% traction in the broad 40% 38% 39% 38% 300 34% market 29% 200 § Maintaining strong relationships with the key 100 customers 0 201

6. Slide 6: Remaining the clear design winner

   © Nordic Semiconductor Remaining the clear design winner >40% market share, 5x the number of designs compared to #2 Bluetooth Low Energy end-product certifications, Last 12 Months Nordic end-product certifications Q3’24 112 designs 41% mkt share LTM Q3’24 509 designs 42% mkt share Competitors *Sourc

7. Slide 7: New customer product launches in Q3 2024

   © Nordic Semiconductor New customer product launches in Q3 2024 CoolR Anona Security Tech. Arendi Saluswear Corp Raytac coolers, freezers, and Matter over Wi-Fi Auracast™ Audio TV Location and fall tracking Wi-Fi module shelves monitoring smart lock streamer nRF9160 + nPM1300 + nRF7002 nRF52840 nRF5

8. Slide 8: nRF54 Series launching in Q4

   © Nordic Semiconductor nRF54 Series launching in Q4 Qualification and preparing for volume production § Launching the first products in our nRF54 Series at Electronica in Bringing the market leading Germany in mid-November nRF52 Series to the next level § Key customers and many broad market customer

9. Slide 9: Signed LOI for possible acquisition of Novelda

   © Nordic Semiconductor Signed LOI for possible acquisition of Novelda § Strong tech position in ultra wideband, which is complementary to Nordic’s wireless technologies § Due diligence ongoing and expected to be concluded by the end of November 9

10. Slide 10: Financials

    © Nordic Semiconductor Financials Pål Elstad, CFO

11. Slide 11: Revenue by technology

    © Nordic Semiconductor Revenue by technology Bluetooth revenue (USDm) Proprietary revenue (USDm) Long-range revenue (USDm) Quarterly Quarterly Quarterly 11

12. Slide 12: Consumer leading the revenue recovery

    © Nordic Semiconductor Consumer leading the revenue recovery Revenue for the individual markets excludes ASICs and consulting revenue 12

13. Slide 13: Gross margin

    © Nordic Semiconductor Gross margin § Stable underlying development § Changes mainly reflecting customer and product mix § Expecting gross margin around 50% for Q4 2024 § Reiterating long-term ambition to maintain gross margin >50% * Note: Gross margin for Q2 2024 excludes a USD 10 million writedown

14. Slide 14: Operating model performance Q3 2024

    © Nordic Semiconductor Operating model performance Q3 2024 14

15. Slide 15: Cash cost development

    © Nordic Semiconductor Cash cost development Cash OPEX* (USDm) § Cost effect of workforce reductions neutralized by salary increases § Higher provisions for variable pay § Other costs stable § Continuous focus on adjusting spending to improve margins *Cash OPEX: Operating expenses, excl. capitalized

16. Slide 16: Underlying capex intensity remains low

    © Nordic Semiconductor Underlying capex intensity remains low Capex (USDm) § Continued low Capex spending * Q4 2023 excluding Atlazo IP acquisition 16

17. Slide 17: Focus on cash spending

    © Nordic Semiconductor Focus on cash spending Cash position and Cash Flow Q3 2024 (USDm) § Operating cash flow of USD 13.8m in Q3 § NWC/Revenue LTM remains high at 45%, mainly due to increased inventory § Low capex spending and continued focus on cash spending § Other items mainly reflecting financi

18. Slide 18: Summary and Outlook

    © Nordic Semiconductor Summary and Outlook Vegard Wollan, CEO

19. Slide 19: Profitable growth outlook

    © Nordic Semiconductor Profitable growth outlook Clear market leader in a recovering market § Outlook for Short-range business § Ambition to grow faster than our markets over time, driven by new product launches § Modest growth with only limited effect of nRF54 in 2025 § Growth set to accelerate fro

20. Slide 20: Q4 expected to show continued y/y growth

    © Nordic Semiconductor Q4 expected to show continued y/y growth Q4 2024 guidance Revenue Gross margin § Year-on-year revenue growth outlook reflecting higher underlying demand USDm 130-150m ~50% § Sequential decline from Q3’24 reflecting seasonal effects +20% to +39% -18% to -6% y-o-y q-o-q § Gross

21. Slide 21: Q&A

    © Nordic Semiconductor Q&A

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