Nordic Semiconductor Asa · OSL:NOD
Nordic Semiconductor Asa — Q3 2015 Earnings Presentation
25 slides from Nordic Semiconductor Asa's earnings presentation, Oct 16, 2015
Slide 1: Q3 2015 Investor Presentation
October 16, 2015 Q3 2015 Investor Presentation Svenn-Tore Larsen, CEO Pål Elstad, CFO
Slide 2: Summary – Q3 2015
2 Summary – Q3 2015: Q3 2015 Investor Presentation Record MUSD 53.9 revenue in quarter despite the previously announced guidance Strong Bluetooth Smart Sales at MUSD 34.2 Improvements in manufacturing drives margins above 50% nRF 52 progresses as planned with volume shipments expected in Q4
Slide 3: Financial Highlights
3 Q3 2015 Investor Presentation Financial Highlights Pål Elstad, CFO
Slide 4: Q3 2015 Financial Highlights
4 Q3 2015 Financial Highlights Q3 2015 Investor Presentation MUSD Financial objectives Q3 2015 Q2 2015 Q3 2014 Comments Growth Record high revenue despite lower proprietary Revenue 53,9 52,6 49,0 sales Order Inflow 43,1 60,2 43,7 Seasonal reduction in orders Profitability Gross Margin % 50,2 % 49,5
Slide 5: Group Revenues
Group Revenues 5 Q3 2015 Investor Presentation Q3 2015 Revenue of MUSD 53.9 (10% increase from prior year) BT Smart Revenue of MUSD 34.2 (63.4% of total revenue) Revenue split by technology, 2012 – Q3 2015 (MUSD) 60 55 50 45 40 35 Proprietary wireless 30 Bluetooth Smart ASIC’s / Consulting 25 20
Slide 6: Bluetooth Smart Revenues – Drives Growth
6 Bluetooth Smart Revenues – Drives Growth Q3 2015 Investor Presentation 2014-2015 More than 100% Year over Year Total Nordic revenue from Bluetooth Smart Quarterly comparison 2014/2015 (MUSD) 90 82,1 80 70 60 50 2014 40,0 40 2015 34,2 30,1 30 17,9 18,4 20 12,2 9,3 10 0 Q1 Q2 Q3 YTD Q3
Slide 7: Order inflow / order backlog
7 Order inflow / order backlog Q3 2015 Investor Presentation Order inflow of MUSD 43.1 in Q3 2015 Order backlog of MUSD 30.3 at quarter-end Nordic will effective from December 31, 2015 cease to report orders and only report backlog at end of Quarter Order Inflow and Backlog 2012 – Q3 2015 (MUS
Slide 8: Growth Markets
8 Growth Markets Q3 2015 Investor Presentation • Growth of 6 % compared to Q3 last year. • Marginal decline compared to Q3 last year • Decline of 11.4% compared to last quarter • Growth of 8.2 % compared to last quarter • Growth compared to last year driven by design wins • Accelerated sales momentu
Slide 9: Emerging Markets
9 Emerging Markets Q3 2015 Investor Presentation • Growth of 18.1 % revenues compared to Q3 2014. • Strong growth from previous periods (45.2 % Shift from RFID to Beacons and Home Automation compared to last quarter) • Growth of 8.6 % compared to last quarter • Strong sales compared to Q3 2014 is dr
Slide 10: Other Markets
10 Other Markets Q3 2015 Investor Presentation • Others reflects products which do not map into our • Decline of 54 % compared to Q3 last year. four main markets, hence revenues generated here • Decline of 10.1 % compared to last quarter. will fluctuate on a regular basis. Modules is the • Nordic ar
Slide 11: Gross Margin
11 Gross Margin Q3 2015 Investor Presentation Gross margin of 50.2 % in Q3 2015 Gross margin improved from last quarter, due to improved manufacturing Expected to stabilize around 50% in 2H-2015 Gross Margin % of revenue 2013 – Q3 2015 60% 50% 40% 30% Q1/13 Q2/13 Q3/13 Q4/13 Q1/14 Q2/14 Q3/14
Slide 12: Operating Expenses
12 Operating Expenses Q3 2015 Investor Presentation Operating expenses (incl. depreciation) of MUSD 16.2 in Q3 2015 Total operating expenses excluding depreciation and adjusted for options and capitalized R&D increased from MUSD 15.9 in Q2 2015 to MUSD 17.0 in Q3 2015 – higher number of employee
Slide 13: Group Employees
Group Employees 13 Q3 2015 Investor Presentation 430 389 360 273 239 257 227
Slide 14: Operating profit (EBIT %)
14 Operating profit (EBIT %) Q3 2015 Investor Presentation Operating profit in Q3 2015 of MUSD 10.9 Q3 2015 Margin excluding Finland at 26.5% Operating Profit Margin (%) by quarter 2012 – Q3 2015 (MUSD) 30 28 26.3% 26.5% 26 24 22 20 18.7% 18 16 17.9% 17.6% 14 12 10 12.6% 8 10.3% 6 4 2 0 Q1/12 Q2
Slide 15: Q3 2015 Financial Summary
15 Q3 2015 Financial Summary Q3 2015 Investor Presentation Group revenue of MUSD 53.9 (MUSD 49.0) – Bluetooth Smart sales grow to MUSD 34.2 , or Revenue growth 63.4% Strong diversification in Bluetooth Smart customers EBIT of MUSD 10.9 (MUSD 9.8) – Higher revenues and gross margin drives EBIT
Slide 16: Business Outlook
16 Q3 2015 Investor Presentation Business Outlook Svenn-Tore Larsen, CEO
Slide 17: High Sales of Bluetooth Smart
17 High Sales of Bluetooth Smart Q3 2015 Investor Presentation Q3 Bluetooth Smart revenues of 34.2 MUSD, taking the total for Q3 YTD to MUSD 82.1 Total Nordic revenue from Bluetooth Smart, 2012 – Q3 2015 (MUSD) 34 32 30 28 26 24 22 20 18 16 14 12 10 8 6 4 2 0 Q1/12 Q2/12 Q3/12 Q4/12 Q1/13 Q2/13 Q3
Slide 18: Bluetooth Smart Active Customers
18 Bluetooth Smart Active Customers Q3 2015 Investor Presentation Number of active BT Smart customers continues to grow More than 100% growth in active customers in 2015 Number of “Active” Bluetooth Smart customers*, 2013 – 2015 2014 2015 * Definition of “Active” Customer: An end customer which
Slide 19: Addressing a bigger market
19 Presentation Q3 2015 Investor Addressing a bigger market More things around us than we wear and carry 28 billion internet connected things in 2020 (Source: hbr.org)
Slide 20: Emerging Markets: Asset Tracking
20 Presentation Q3 2015 Investor Emerging Markets Asset Tracking- Development driven by cheap sensors and low battery consumption Hospitals – locate equipment/persons Inventory – Inventory Optimization Shipments –BLE combined with GPS/GSM Tools/materials – where is it when we need it? Constr
Slide 21: Emerging Markets: Wireless Charger
21 Presentation Q3 2015 Investor Emerging Markets Wireless Charger – Cutting the last wire Massive Market Opportunity Mobile Devices Chargers Covers / Battery Packs Rechargable Devices Success factors for Nordic Broad adoption of wireless charging Success of Rezence Maintain and streng
Slide 22: Nordic Semiconductor Finland operations
22 Nordic Semiconductor Finland operations Q3 2015 Investor Presentation progressing great and according to plan Nine months since Finland office kicked off • Teams fully staffed in Oulu and Turku Finland teams highly integrated with Norway operations • Also contributed to the nRF52 Tape-Out early t
Slide 23: nRF52 World Tour
Q3 2015 Investor 23 Presentation nRF52 World Tour
Slide 24: Business Outlook
24 Business Outlook Presentation Q3 2015 Investor Growth in revenues driven by Bluetooth Smart sales nRF 52 family will contribute from Q4 Gross margin of approximately 50% We see new products in other segments growing with a broader diversity of customers Expanding operations into mainlan
Slide 25: For more information on Nordic
25 For more information on Nordic Presentation Q3 2015 Investor Sign up for a Nordic MyPage account on our website - www.nordicsemi.com Provides latest company and investor news directly to your Email address • Wireless Quarterly magazine – learn more about Nordic’s products and markets • Direct l