Nordic Semiconductor Asa · OSL:NOD
Nordic Semiconductor Asa — Investor Day (October 2019)
28 slides from Nordic Semiconductor Asa's investor day presentation, Oct 22, 2019
Slide 1: Capital Markets Day
Capital Markets Day October 22, 2019
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: Market leader in IoT
Market leader in IoT CEO, Svenn-Tore Larsen
Slide 4: Agenda
© Nordic Semiconductor Agenda 12:00-12:10 Q3 2019 Highlights – Svenn-Tore Larsen, CEO 12:10-12:30 A market leader in IoT – Svenn-Tore Larsen, CEO 12:30-13:05 Go-to-market strategy - Geir Langeland, Sales Director 13:05-13:30 FedEx – Delivering the future – Ole Petter Skaaksrud, FedEx 13:30
Slide 5: Q3 2019 highlights
Q3 2019 highlights
Slide 6: Q3 as guided – solid growth outlook for Q4
© Nordic Semiconductor Q3 as guided – solid growth outlook for Q4 Q3 2019 Q4 2019 guidance Revenue Gross margin Revenue Gross margin USDm USDm 82.2 49.8% 75-79 ~50% +4.4% +16.5% -0.5%p -1.5%p +23%-29% -4%-9% -1%p Flat y-o-y q-o-q y-o-y q-o-q y-o-y q-o-q y-o-y q-o-q 6
Slide 7: Customer wins fuel backlog development
© Nordic Semiconductor Customer wins fuel backlog development Backlog, USDm Stronger customer inroads have turned 120 around the backlog development 100 Q3’19 +45% compared to end of Q3’18 Seeing volume orders coming in from 80 new tier-1 customers 60 40 20 0 Q3 14 Q3 15 Q3 16 Q3 17 Q3 18 Q3 1
Slide 8: A market leader in IoT
A market leader in IoT
Slide 9: Nordic Semiconductor at a glance
© Nordic Semiconductor Nordic Semiconductor at a glance A market leader in the IoT space Fabless semiconductor company - specialized in low power wireless connectivity and embedded processing for IoT Market leader in Bluetooth Low Energy - expanding into Founded in 1982, Headquartered in Norwa
Slide 10: A long-lasting growth journey
© Nordic Semiconductor A long-lasting growth journey Revenue, USDm 300 Market opportunities have come in waves 250 Emerging IoT markets → 200 Wearables → 150 100 PC peripherals → 50 Game controllers → 0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 20
Slide 11: Clear market leader in Bluetooth Low Energy
© Nordic Semiconductor Clear market leader in Bluetooth Low Energy Bluetooth Low Energy end-product certifications, number of products* Consistent leader in terms of end-product 1,600 43% 42% 40% 39% certifications 1,400 32% 33% Nordic 44% market share in Q3 1,200 588 TI Nordic technology 1,00
Slide 12: Our success is built on 6 strategic pillars
© Nordic Semiconductor Our success is built on 6 strategic pillars 1 Lead on connectivity Low power, high performance, feature-rich, reliable and robust 2 Excite developers Ease-of-use, value-add integration and solutions 3 Customer engagement Combined broad market and tier-1 customer engagement mod
Slide 13: Lead on connectivity
Lead on connectivity Low power, high performance, feature-rich, reliable and robust
Slide 14: Lead on connectivity
© Nordic Semiconductor Lead on connectivity Strong low power wireless connectivity and applications offering Low power short-range IoT Low power cellular IoT Bluetooth, 802.15.4/Thread, Zigbee and 2.4GHz RF SoCs Multimode LTE-M / NB-IoT connected SiPs Decades of low power connectivity experience Ent
Slide 15: Award winning technologies and solutions
© Nordic Semiconductor Award winning technologies and solutions “Nordic Semiconductor low power cellular IoT solution named as 2019 CES Innovation Awards Honoree” “The nRF52840 wins RF/Microwave category of Electronic Products magazine's "Product of the Year" awards” “nRF9160 cellular IoT modu
Slide 16: Excite developers
Excite developers Ease-of-use, value-add integration and solutions
Slide 17: Excite developers and drive engagement
© Nordic Semiconductor Excite developers and drive engagement Leading the developer experience from A - Z devzone.nordicsemi.com is the leading community in the industry >80,000 developers and 2.4m annual site visits Strong tech support team Nordic Tech Tours Tutorials and webinars Blogs
Slide 18: Strong growth in development kit shipments
© Nordic Semiconductor Strong growth in development kit shipments Developer kit shipments, units Cellular development 90,000 kits and Thingy: 91 80,000 account for ~10% 70,000 of total development kit 60,000 shipments YTD 50,000 40,000 30,000 20,000 10,000 0 2013 2014 2015 2016 2017 2018 LTM 18
Slide 19: Customer engagement
Customer engagement Combined broad market and tier-1 customer engagement model
Slide 20: Customer engagement
© Nordic Semiconductor Customer engagement Combining broad market and Tier 1 customer engagement Engaging the broad Broad market market through active engineering community Consumer Electronics Wearables Building/ Retail Healthcare Others and distributors Vertical Tier 1s Working closely with ve
Slide 21: Scalability
Scalability Scalability across technologies, markets and customers
Slide 22: Scalability: Increase value per design
© Nordic Semiconductor Scalability across technologies, markets and customers Connectivity Embedded processing Power, performance Power, performance, features and reliability memory and I/O Increase value per design Security Software Transport and Connectivity and application application 22
Slide 23: Increased ASP in a declining ASP market
© Nordic Semiconductor Increased ASP in a declining ASP market ASP development, illustration Overall short-range ASP increasing with higher share of Bluetooth LE revenue Bluetooth ASP turned around in 2018- 2019, in a market with declining prices Outlook going forward: +14% More complex appl
Slide 24: Investing early
Investing early Investing early and growing with high-growth markets
Slide 25: Investing early! – in high growth markets
© Nordic Semiconductor Investing early! – in high growth markets R&D expenses by technology, USDm Investing into a massive long-term market opportunity 80 R&D Cellular IoT 70 R&D Short-range GSMA (Feb 2019): 25.2bn IoT connections by 2025 60 IDC (June, 2019): 41.6bn IoT 50 devices by 2025 40 B
Slide 26: Strong outlook for Bluetooth
© Nordic Semiconductor Strong outlook for Bluetooth IHS: Bluetooth LE market outlook, million units Solid organic growth in 1 629 many established CAGR 26% verticals 1 320 Potentially disruptive 1 050 growth in several areas 812 Smart homes 642 Smart lighting 542 424 Medical devices 334
Slide 27: Confident in long-term cellular IoT outlook
© Nordic Semiconductor Confident in long-term cellular IoT outlook ABI: Cellular M2M shipments, million units Volumes and revenues 800 pushed out in time No. of NB-IOT units > No. of LTE-M units Carrier and industry 700 LTE-M unit values >> NB-IOT unit values ecosystem maturation 600 Software
Slide 28: Our aspiration:
© Nordic Semiconductor Our aspiration: Building a USD 1bn company within 5 years Growth of 20%-30% for Bluetooth and multi-protocol products Gradual build-up of the cellular IoT business to a similar size as the short-range business in 5 years 28