Nordic Semiconductor Asa · OSL:NOD

Nordic Semiconductor Asa — Nordic Semiconductor Ord — Q1 2024 Earnings Presentation

22 slides from Nordic Semiconductor Asa's earnings presentation, Apr 24, 2024

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
Slide 4: Q1 – Revenue as guided
© Nordic Semiconductor Q1 – Revenue as guided Q1 2024: Quarterly revenue development (USDm) § Revenue of USD 74 million § Actively adjusted inventory in the distribution channel, significantly higher sell-through from distributors 145 154 § Gross margin of 48% 135 115-135 § EBITDA of USD -23 million
Slide 5: Reorganizing with four new business units
© Nordic Semiconductor Reorganizing with four new business units Short-range, Long-range, Wi-Fi & Power Management (PMIC) § Strengthening executive management team and improving accountability and autonomy § Sharpening the focus or products and Short-range Long-range Øyvind Strøm Øyvind Birkenes dev
Slide 6: 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% 58% 500 50% § Strong customer 44% 400 40% relationships with tier-1s, 38% 39% 38% 300 34% working to regain 29% 200 traction in the broad market 100 0 2012 2013 2014 2015 201
Slide 7: Nordic gaining design win market share
© Nordic Semiconductor Nordic gaining design win market share Outpacing the total market Bluetooth Low Energy end-product certifications, last 12 months 1500 Nordic end-product 1200 certifications Other 46% Qualcomm 43% 900 41% 42% 42% 41% 43% Infineon Q1’24 39% 33% Dialog 113 designs TI 42% mkt sha
Slide 8: New customer product launches in Q1 2024
© Nordic Semiconductor New customer product launches in Q1 2024 Withings Quanta Storage Inc Calliope Inventia Controlant Bluetooth LE hybrid Bluetooth LE and Educational development Battery-powered Asset tracking smartwatch Wi-Fi module kit for kids industrial data logger nRF9160 nRF52840 nRF5340 +
Slide 9: Asset tracking device uses Nordic cIoT
© Nordic Semiconductor Asset tracking device uses Nordic cIoT Bringing end-to-end visibility across the pharmaceutical supply chain § The Controlant Saga Card - ensure that medication and vaccines reach patients at the right time and place and with the right quality § In pilot phase with early adopt
Slide 10: Nordic expands cellular IoT offering
© Nordic Semiconductor Nordic expands cellular IoT offering Strengthening our end-to-end solution with nRF9151 SiP § Reducing both power consumption and size § Specifically designed for cellular IoT and DECT NR+ applications § Confirms our dedication to providing cutting-edge long-range IoT solution
Slide 11: Nordic collaboration with Google
© Nordic Semiconductor Nordic collaboration with Google Support for Google’s ‘Find My Device’ into the nRF Connect SDK § nRF Connect SDK allows third-party device makers to build products using Google’s “Find My Device” network for the Android ecosystem § Customers have already built commercial prod
Slide 13: Revenue by technology
© Nordic Semiconductor Revenue by technology Bluetooth revenue (USDm) Proprietary revenue (USDm) Cellular IoT revenue (USDm) Quarterly Quarterly Quarterly -52% 200 150 143 15 -23% 15 131 120 -20% 10 10 100 90 10 10 8 63 6 6 6 5 50 5 5 4 4 3 0 0 0 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q1 2023 Q2 20
Slide 14: Inventory adjustment across all markets
© Nordic Semiconductor Inventory adjustment across all markets Group Consumer Industrial Healthcare Others USDm USDm USDm USDm USDm 74.5 50.8 16.7 3.6 2.5 -49% -31% -27% -25% -63% -9% -85% -81% -55% +1% y-o-y q-o-q y-o-y q-o-q y-o-y q-o-q y-o-y q-o-q y-o-y q-o-q 100 84 Healthcare Others 3% 81 5% 75
Slide 15: Gross margin
© Nordic Semiconductor Gross margin 70% § Main drivers in Q1 § Changes in customer mix 60% § Effects of inventory management 53.3% 53.0% § Negative effect of write-downs and 52.0% 50.5% 50% 48.0% overhead costs being allocated to low revenue base 40% § Expecting gross margin around 50% for Q2 2024 3
Slide 16: Operating model performance Q1 2024
© Nordic Semiconductor Operating model performance Q1 2024 Gross margin 48.0% Q1 2024 Q1 2023 Δ USD USD Revenue -48.8% Revenue as guided 74.5m 145.4m R&D short-range 31.8% 48.0% 53.3% Customer mix, inventory management, and lower Gross margin -5.3pp USD 35.8m USD 77.6m revenue base to allocate overh
Slide 17: Balancing investments and cost awareness
© Nordic Semiconductor Balancing investments and cost awareness Cash OPEX* (USDm) § Savings initiatives reducing workforce y-o-y by 7% in addition to 2023 salary freeze 44 45 43 38 38 § Continuing to focus on spending adjustments to improve margins 25 20 20 20 19 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2
Slide 18: Underlying capex intensity remains low
© Nordic Semiconductor Underlying capex intensity remains low Capex (USDm) 10 8 6 § Capex of USD 1.0m in Q1, which will 3.8 % 4 3.1 % 4.4 %* * normalize in coming quarters 2 1.5 % 1.3 % 0 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Capex Capex/Revenue * Excluding Atlazo IP acquisition 18
Slide 19: Cash spending focus
© Nordic Semiconductor Cash spending focus Cash position and Cash Flow Q1 2024 (USDm) 291.0 § Low capex spending while scrutinizing all -27.6 -2.5 -3.3 -0.7 -2.8 235.0 -1.9 -3.8 -6.0 spending areas -7.4 § NWC/Revenue LTM of 50% § Bond interest payments started in Q1 § Other items mainly impacted by
Slide 21: Expecting return to sequential growth
© Nordic Semiconductor Expecting return to sequential growth Q2 2024 guidance Revenue Gross margin USDm § Q2 revenue supported by improved 115-135m ~50% demand and seasonality -25% to -12% +54% to +81% § Gross margin expected to rebound to y-o-y q-o-q the 50% level Capital Markets Day event set for

Nordic Semiconductor Ord — Q1 2024 Earnings Presentation on 6ix

Nordic Semiconductor Asa — Nordic Semiconductor Ord — Q1 2024 Earnings Presentation

Slide 1: Quarterly Presentation Q1 2024

Slide 2: Disclaimer

Slide 3: Today's presenters

Slide 4: Q1 – Revenue as guided

Slide 5: Reorganizing with four new business units

Slide 6: Top-10 and broad market split stabilizing

Slide 7: Nordic gaining design win market share

Slide 8: New customer product launches in Q1 2024

Slide 9: Asset tracking device uses Nordic cIoT

Slide 10: Nordic expands cellular IoT offering

Slide 11: Nordic collaboration with Google

Slide 12: Financials

Slide 13: Revenue by technology

Slide 14: Inventory adjustment across all markets

Slide 15: Gross margin

Slide 16: Operating model performance Q1 2024

Slide 17: Balancing investments and cost awareness

Slide 18: Underlying capex intensity remains low

Slide 19: Cash spending focus

Slide 20: Summary and Outlook

Slide 21: Expecting return to sequential growth

Slide 22: Q&A