Nordic Semiconductor Asa · OSL:NOD
Nordic Semiconductor Asa — Q2 2023 Earnings Presentation
21 slides from Nordic Semiconductor Asa's earnings presentation, Jul 11, 2023
Slide 1: Quarterly Presentation Q2 2023
Quarterly Presentation Q2 2023 July 11, 2023
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 3: Solid revenue in challenging market
© Nordic Semiconductor Solid revenue in challenging market Q2 2023: Quarterly revenue development (USDm) § Revenue of USD 154m (-23% y/y, +6% q/q) 200 202 § Bluetooth USD 143m (-15% y/y, +9% q/q) 191 § Gross margin 53% and EBITDA margin of 18% 154 145 Outlook: § Guiding for revenue of USD 145-165 mi
Slide 4: Tier-1s revenue share continue to increase
© Nordic Semiconductor Tier-1s revenue share continue to increase Bluetooth revenue composition (USDm) 700 63% 60% 600 58% 50% 50% 500 43% 38% 39% 40% 38% 400 29% 34% § Top-10 accounted for ~50% of 300 Bluetooth revenue LTM 200 100 0 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 LTM Q2’23 T
Slide 5: Steady and high certification market share
© Nordic Semiconductor Steady and high certification market share Significantly increasing value per design Bluetooth Low Energy end-product certifications, last 12 months Nordic 1500 end-product certifications 1200 Other Q2’23 Qualcomm 43% 46% 108 designs 43% Infineon 900 40% 40% 41% 41% 41% mkt sh
Slide 6: New customer product launches in Q2
© Nordic Semiconductor New customer product launches in Q2 Rulo OPUM Technologies Casio 7Sense Innomar Ocean Tech Industrial connectivity Digital Knee® Sport Watch Irrigation Sensor Smart Buoy solution nRF52840 nRF52833 nRF9160 nRF9160 nRF9160 6
Slide 7: Cellular IoT
© Nordic Semiconductor Cellular IoT Cellular IoT revenue last 12 months (USDm) § Solid and healthy inflow of projects into pipeline, no signs of slowdown in design 23 activity 21 § Good conversion rate through the pipeline, large base of ~370 commercial projects § Lifetime value of designs is increa
Slide 8: Launching significant uplift of cellular offering
© Nordic Semiconductor Launching significant uplift of cellular offering Full product + services solution from device to cloud Saving our customers from dealing with More devices… today’s fragmented cellular IoT supply chains World's first devices supporting both cellular and DECT NR+ § nRF9161 SiP,
Slide 9: Wide launch of the nPM1300
© Nordic Semiconductor Wide launch of the nPM1300 The most intelligent PMIC on the market § Nordic takes care of energy efficiency from battery to antenna § Unique power and system management features Ultra-high Accurate, ultra-low-power Unique system efficiency fuel gauge management features § Repl
Slide 10: Nordic one of Europe's Climate Leaders 2023
© Nordic Semiconductor Nordic one of Europe's Climate Leaders 2023 Compiled by Financial Times and Statista § Nordic ranked number 26, making it the highest-ranked Norwegian company on the prestigious list of 500 companies § The methodology for this list was tightened to reflect on companies' enviro
Slide 11: Financials
Financials Pål Elstad, CFO
Slide 12: Bluetooth driving the q-o-q upturn
© Nordic Semiconductor Bluetooth driving the q-o-q upturn Bluetooth revenue (USDm) Proprietary revenue (USDm) Cellular IoT revenue (USDm) Quarterly Quarterly Quarterly 200 179 168 172 150 150 143 50 50 131 40 40 100 30 26 30 25 20 20 50 13 12 8 9 10 6 10 7 5 5 5 3 0 0 0 Q1 Q2 Q3 Q4 Q1 Q2 Q1 Q2 Q3 Q4
Slide 13: Revenue by markets
© Nordic Semiconductor Revenue by markets Group Consumer Industrial Healthcare Others USDm USDm USDm USDm USDm 154.2 84.4 29.9 34.5 3.7 -23% +6% -33% +21% -38% -34% +106% +47% -52% -33% 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 150 126 126 Others 2% 125 109 100 84 Healthcare 23% 75
Slide 14: Gross margin
© Nordic Semiconductor Gross margin 70% 60% § Stable and solid q-o-q margin 57.3% 55.4% development 52.7% 53.3% 53.0% § Expecting gross margin >52% 50% for Q3 2023 § Reiterating long-term ambition to 40% maintain gross margin >50% 30% Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 16
Slide 15: Operating model performance Q2 2023
© Nordic Semiconductor Operating model performance Q2 2023 Gross margin 53.0% Q2 2023 Q2 2022 Δ USD USD Revenue -23.0% Demand slowdown in 2023 R&D 154.2m 200.2m short-range 12.3% 53.0% 55.4% Gross margin -2.4pp Stable adjusted for price increase effects in 2022 USD 81.7m USD 110.8m R&D cellular IoT
Slide 16: Balancing investments and cost awareness
© Nordic Semiconductor Balancing investments and cost awareness Cash OPEX* (USDm) Flat cash costs vs. Q2’22 Salary +2.1%: 42 45 § Employees increased by 17% y-o-y to 1,520 37 38 38 § Currency reduced payroll cost in Q2’23 by USD ~2m compared to Q2’22 rates Continuing work to adjust cost base to prot
Slide 17: Capex intensity remains low
© Nordic Semiconductor Capex intensity remains low Capex (USDm) 10 8 6 4.4 % § Capex of USD 4.8 million in Q2 3.6 % 3.8 % 4 3.1 % § Overall capex intensity 3.7 % LTM 2.2 % 2 0 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Capex Capex/Revenue 19
Slide 18: Strong cash position
© Nordic Semiconductor Strong cash position Cash position and Cash Flow Q2 2023 (USDm) 22 1 8 252 233 -8 § Cash flow from operations adjusted for -5 capitalized development expenses of USD 25 million § q-o-q decrease of NWC § NWC/Revenue LTM of 29.0% § Other items mainly impacted by increased refund
Slide 19: Summary and Outlook
Summary and Outlook Svenn-Tore Larsen, CEO
Slide 20: Expecting Q3 revenue in line with Q2
© Nordic Semiconductor Expecting Q3 revenue in line with Q2 Q3 2023 guidance Revenue Gross margin § Stable q-o-q revenue development expected from Q2 to Q3 USDm 145-165m >52% § Clear growth opportunities but cautious customers -28% to -18% -6% to +7% y-o-y q-o-q § Low visibility and wide range of ou
Slide 21: Nordic Semiconductor
NORDIC SEMICONDUCTOR