Nordic Semiconductor Asa · OSL:NOD

Nordic Semiconductor Asa — Investor Day (October 2021)

114 slides from Nordic Semiconductor Asa's investor day presentation, Oct 21, 2021

1. Slide 1: Capital Markets Day 2021

   Capital Markets Day 2021 NORDIC’ SEMICONDUCTOR

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: Nordic Semiconductor - A globally leading IoT enabler

   Nordic Semiconductor - A globally leading IoT enabler Svenn-Tore Larsen, CEO

4. Slide 4: A globally leading IoT enabler

   © Nordic Semiconductor A globally leading IoT enabler Simplifying lives through all things connected  Leading ultra-low-power wireless connectivity solutions  Short-range, medium-range and long-range technologies Integrated circuits Embedded Development (ICs) software tools  Broad products and so

5. Slide 5: IoT offers a large and growing market

   © Nordic Semiconductor IoT offers a large and growing market Billion connected IoT devices IoT Analytics, September 2021 27  The total IoT space is a massive and growing market across hardware, connectivity and services  Strong megatrends driving growth; 11  Industrial IoT  Sustainable solutions

6. Slide 6: Industrial IoT: Connect, Compute, Analyze and Act

   © Nordic Semiconductor Industrial IoT: Connect, Compute, Analyze and Act IoT starts with connecting the ‘things’ Real-world data Gateways Cloud computing Bridging the physical and Sensors digital worlds requires AI/ML Physical Digital advanced connectivity world world solutions Data Actuators analyt

7. Slide 7: Sustainability depends on technology

   © Nordic Semiconductor Sustainability depends on technology Disruptive IoT projects can contribute immensely to UN SDGs Product Product Product Pictures pictures pictures v vv Smart Lightning 17

8. Slide 8: Platform ecosystems depend on connectivity

   © Nordic Semiconductor Platform ecosystems depend on connectivity Alignment across platforms will further fuel market growth Nordic leverages on leading broad market position and strong tier-1 relations built over many years etc… 18

9. Slide 9: Strategy based on distinctive advantages

   © Nordic Semiconductor Strategy based on distinctive advantages Ultra-low power and high performance Lead on at the right price connectivity Ease-of-use, value-add Clear strategic roadmap High Excite solutions and strong ambitions developers tech support to generate long-term profitable growth and v

10. Slide 10: Continued strong growth

    Continued strong growth

11. Slide 11: We are on a long-lasting growth journey

    © Nordic Semiconductor We are on a long-lasting growth journey 600 Innovation unlocking 550 market waves 500 450 400 Emerging IoT markets → Revenue, USDm 350 300 250 Wearables → 200 150 PC peripherals → 100 Game controllers → 50 0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

12. Slide 12: We are on a long-lasting growth journey

    © Nordic Semiconductor We are on a long-lasting growth journey 600 Innovation unlocking Widespread IoT adoption → 550 market waves 500 450 400 Emerging IoT markets → Revenue, USDm 350 300 250 Wearables → 200 150 PC peripherals → 100 Game controllers → 50 0 2000 2001 2002 2003 2004 2005 2006 2007 200

13. Slide 13: Bluetooth Low Energy set for continued growth

    © Nordic Semiconductor Bluetooth Low Energy set for continued growth Bluetooth enabled device shipments by radio version, # shipments in billion 7 6  We are the clear market leader in Bluetooth Low Energy 5 3x  Broad portfolio of multiprotocol SoCs with ’21-’25 4 Bluetooth Low Energy, Thread and Z

14. Slide 14: Order backlog reflects the market expansion

    © Nordic Semiconductor Order backlog reflects the market expansion Backlog 1,316 USDm  High-volume orders from tier-1 customers and continued strong broad market demand  Strong growth across both consumer industrial verticals 288  Supply chain bottlenecks extend 114 delivery schedules Q3’19 Q3’20

15. Slide 15: Wafer shortages pose growth challenge

    © Nordic Semiconductor Wafer shortages pose growth challenge Mitigating actions have secured growth in 2021 and the coming years Mitigating actions Challenges  Managed to advance wafer + Strong long-term demand drivers allocations through 2021 + Strengthening cyclical demand  Adjusting to increase

16. Slide 16: Solid platform for continued strong growth

    © Nordic Semiconductor Solid platform for continued strong growth Revenue outlook USDm ~30% 1bn CAGR  Stronger growth than expected, with significant pent-up demand in backlog 44% CAGR 600  Pulling our USD 1bn target one year closer, to 2023 405 288  Committed wafer supplies covering the revenue

17. Slide 17: Expanding opportunity set - Investing in innovation

    Expanding opportunity set - Investing in innovation

18. Slide 18: We are expanding the opportunity pipeline

    © Nordic Semiconductor We are expanding the opportunity pipeline New technologies + value chain migration + more applications Services Services Services Services Services Services Services Services Services Services Services Services Services Services Services Services Services Services Services Ser

19. Slide 19: Investing from technology leadership position

    © Nordic Semiconductor Investing from technology leadership position Cellular IoT Sound investment criteria across technologies, products, services and verticals Wi-Fi  Sizeable markets  Growth above industry average Cloud Services  Opportunity for healthy gross-margins  Opportunity to grow mark

20. Slide 20: Investing in technologies for the long-term

    © Nordic Semiconductor Investing in technologies for the long-term Committed to innovation Revenue LTM Q3’21 R&D Spend LTM Q3’21  R&D investment of ~USD 400 Other short-range Other short-range million* over the past 5 years 3%  Investing for the long-term: 39%  ~60% of current R&D supporting cont

21. Slide 21: Significantly broadening our market space

    © Nordic Semiconductor Significantly broadening our market space Our success depends on our innovation capabilities and execution Addressable markets, 2026 by technology Other  Investing in adjacent products and services technologies Wi-Fi – building on technology leadership Short-range  Developin

22. Slide 22: High financial ambitions

    High financial ambitions

23. Slide 23: High financial ambitions

    © Nordic Semiconductor High financial ambitions Revenue  USD 1bn revenue target in 2023 USDm >25%  Aiming to more than double CAGR revenue in 2023-2026 ~30%  Continued strong growth in CAGR short-range 1bn  Accelerating traction in cIoT 600  Early traction in Wi-Fi  Gradually increasing revenu

24. Slide 24: A globally leading IoT enabler

    A globally leading IoT enabler Strong demand and order backlog - solid platform for continued revenue growth Strong supporting megatrends - industrial IoT, sustainability, platform ecosystems Broadening the opportunity pipeline - into adjacent markets and value chain expansion High long-term financi

25. Slide 25: Strong position in an expansive market

    Strong position in an expansive market Geir Langeland, EVP Sales & Marketing

26. Slide 26: Customers are at the core of our DNA

    © Nordic Semiconductor Customers are at the core of our DNA 37

27. Slide 27: Growth built on years of investing in customers

    © Nordic Semiconductor Growth built on years of investing in customers Revenue last 12 months USDm +113% 566 Accelerating growth through 2020-2021  Strong demand across short-range markets  Ramp of long-term projects beginning to show +19% through in revenue 266 224 Strong market trends supporting

28. Slide 28: Technology- and customer-driven growth

    © Nordic Semiconductor Technology- and customer-driven growth Recent revenue growth is driven by ramp of long-term projects Covid has catalyzed the uptake of technologies previously regarded as novelties  Gaming  Digital Healthcare  Working from home  Tracking shipments  VR/AR 39

29. Slide 29: VR category leader

    © Nordic Semiconductor VR category leader “The VR market is gaining significant traction due to the incredibly immersive experience that products like Quest 2 can offer people. That’s made possible by the many technical advancements in Quest 2, including the record low latency in the wireless contro

30. Slide 30: Gaining real traction with platform ecosystems

    © Nordic Semiconductor Gaining real traction with platform ecosystems What we said at Capital Markets Day 2019; Nordic is proving to be an attractive key partner for both global leaders and the broad market players 41

31. Slide 31: We connect platform ecosystems

    © Nordic Semiconductor We connect platform ecosystems Technology Platform Application SW Support Tier-1 ecosystems 42

32. Slide 32: Matter – standardizing Smart Home connectivity

    © Nordic Semiconductor Matter – standardizing Smart Home connectivity WIRELESS BY

33. Slide 33: Amazon Sidewalk ecosystem

    © Nordic Semiconductor Amazon Sidewalk ecosystem – Beyond just Smart Home WIRELESS BY 44

34. Slide 34: Amazon Sidewalk video

    NORDIC amazon sidewalk —

35. Slide 35: Apple Find My Network

    © Nordic Semiconductor Apple Find My Network - Crowd-sourced location service WIRELESS BY 46

36. Slide 36: Clear market leader in a growing market

    © Nordic Semiconductor Clear market leader in a growing market Bluetooth LE semiconductor vendor unit market share Millions of units 753 1 594 Nordic is the clear market leader #1 in number of designs #1 in units sold Nordic 42% 38% Semiconductor 2019 2020 Source: Omdia, 2021 - Results are not an en

37. Slide 37: Launches spanning broad range of products

    © Nordic Semiconductor Launches spanning broad range of products SiBionics LEEDARSON Link Metasphere NEST iON GS1 CGM Monitoring Smart LED bulb Tracker ART Sewer IOT Power Controller nRF52832 nRF52840 nRF9160/nRF52840 nRF9160 nRF9160 Provide wireless Tunable White Bulb Pet location data to be Wastew

38. Slide 38: Balanced growth across the customer base

    © Nordic Semiconductor Balanced growth across the customer base Bluetooth revenue composition USDm 500 63%  Growing customer base and 450 60% 58% 400 increasing revenue per customer 50% 350  Managed to balance growth 300 38% 39% 38% 39% between top-10 customers and 34% 250 29% the long-tail throug

39. Slide 39: Backlog development shows the strong demand

    © Nordic Semiconductor Backlog development shows the strong demand Order backlog USDm 1,400 1 253 1 316  Current demand outstrips supply, 1,200 meaning extended lead-times 1,000  Demand strong across customer 803 types and verticals 800  Growth from both existing and new 600 customers 492  Growt

40. Slide 40: Managing the market under supply strains

    © Nordic Semiconductor Managing the market under supply strains  Challenging allocation exercise  Seeking to balance tier-1s and the long tail  Wanting to shield both high-volume customers with long commitments and seed new applications with high future potential  May be required to cap allocati

41. Slide 41: Strong prospects for our highlighted target markets

    © Nordic Semiconductor Strong prospects for our highlighted target markets  The Smart Home market playing What we said at Capital Markets Day 2019; out strongly, as expected  Many product launches and high demand for logistics/asset tracking  Smart lighting expected to flourish in post-Covid cons

42. Slide 42: Continuous glucose monitoring saves lives

    © Nordic Semiconductor Continuous glucose monitoring saves lives «Dexcom’s continuous glucose monitoring solution empowers people with diabetes to live better lives. Our G7 sensor is the next evolution in glucose monitoring. The connectivity solution provided by our partner Nordic Semiconductor help

43. Slide 43: Cellular IoT revenue beginning to ramp

    © Nordic Semiconductor Cellular IoT revenue beginning to ramp cIoT revenue last 12 months USDm 14  Built up a meaningful revenue base from multiple customers ramping up over time  Current revenue mainly from logistics/asset tracking 4 applications and industrial and environmental sensors 1 Q3’19 Q

44. Slide 44: Winning cellular IoT customers

    © Nordic Semiconductor Winning cellular IoT customers  Currently shipping into 100’s of customers cIoT projects across a variety of applications  Main focus non consumer  Industrial applications  Long design-win cycles  Positive flip-side – customers with 10-15 year product life cycles  The nu

45. Slide 45: Cellular IoT will drive digitalization of society

    © Nordic Semiconductor Cellular IoT will drive digitalization of society Nordic has invested early in a huge market opportunity  LTE-M and NB-IoT will open new 5 billion IoT devices by 2025 - via cellular access technologies markets for M2M and M2People communication at massive scale  Nordic has a

46. Slide 46: Expanding our opportunity pipeline

    © Nordic Semiconductor Expanding our opportunity pipeline  Investing in products and services that complement our portfolio Cellular IoT  Overlapping customer bases Wi-Fi  Leveraging our software and DevZone Cloud Services  Shared sales organization Power Management 57

47. Slide 47: A globally leading IoT enabler

    A globally leading IoT enabler Growth built over years Proven and attractive partner Megatrends supporting growth Disruptive applications ramping Expanding our opportunity pipeline

48. Slide 48: Innovating for IoT

    Innovating for IoT Kjetil Holstad, EVP Product Management & Svein-Egil Nielsen, CTO/EVP R&D and Strategy

49. Slide 49: Nordic is a pioneer in wireless connectivity

    © Nordic Semiconductor Nordic is a pioneer in wireless connectivity Cloud Services Innovation drives growth PMIC Leading on low-power, integration and ease-of use 4 billion units shipped Cellular IoT Zigbee Thread Bluetooth Low Energy ANT Proprietary 2.4GHz RF 2000 2001 2002 2003 2004 2005 2006 2007

50. Slide 50: Dedicated to wireless connectivity

    © Nordic Semiconductor Dedicated to wireless connectivity Broad portfolio - scalable solutions – common software platform Strong product and …for short-, medium- and long-range solutions portfolio… connectivity technologies Low-power integrated Short-range IoT Medium-range IoT Long-range cIoT circui

51. Slide 51: Award winning technologies and solutions

    © Nordic Semiconductor Award winning technologies and solutions Nordic Semiconductor winner of multiple Global Semiconductor Alliance (GSA) awards:  2015 Outstanding EMEA Semiconductor Company Award  2016, 2018, 2019, Most Respected Emerging Public Semiconductor Company Award Recent nominations an

52. Slide 52: The right products in the right markets

    The right products in the right markets

53. Slide 53: Internet of Things is becoming ubiquitous

    © Nordic Semiconductor Internet of Things is becoming ubiquitous Sustainability Platform ecosystems Industrial IoT Disruptive IoT projects Alignment across platforms Connecting the physical can contribute immensely to will further fuel market world and the digital world; UN SDGs growth Sensors – Clo

54. Slide 54: The market is growing and evolving

    © Nordic Semiconductor The market is growing and evolving Huge opportunity landscape and with ample room for innovation and differentiation 2019 Short range, SAM 2021 Short range, SAM 1.3B units 2B units Source: Nordic Semiconductor management estimates, Short-Range: Bluetooth LE, Proprietary 2.4GHz

55. Slide 55: Broad portfolio covering all applications

    © Nordic Semiconductor Broad portfolio covering all applications From cost-constrained applications to complex IoT 6.1 mm2 17.6 mm2  Single core 64MHz Arm Cortex-M4 >5x  Dual core 128MHz Arm Cortex-M33  192 kB Flash and 24 kB RAM >8x  1280 kB Flash and 576kB RAM  Basic security  Advanced secur

56. Slide 56: nRF52 Series – winning family continuing to grow

    © Nordic Semiconductor nRF52 Series – winning family continuing to grow Revenue development from introduction nRF51 and nRF52 Series, LTM USDm 500  Broad product family addressing wide range of 450 nRF52 applications – from entry level to high-end 400  Strong growth – the right products for the 35

57. Slide 57: We remain the leader in Bluetooth LE designs

    © Nordic Semiconductor We remain the leader in Bluetooth LE designs Significantly increasing average value per design Percent market share - Bluetooth Low Energy end-product certifications* End-product 60 certifications 50 with Nordic 40 LTM 30 550 42 % mkt share 20 Last 12 months rolling 10 Q3’21 Q

58. Slide 58: Expanding the opportunities

    Expanding the opportunities

59. Slide 59: Building portfolio through logical expansions

    © Nordic Semiconductor Building portfolio through logical expansions New connectivity + value chain migration + more verticals Expanding across connectivity Services Services Services Services Services solutions, software, services Services Services Services Services Services Services Services Servi

60. Slide 60: Capture more board space on customer PCB

    © Nordic Semiconductor Capture more board space on customer PCB Utilizing a market leading position in SoCs Example: Upcoming Nordic Thingy:53 Expanding opportunities adjacent to Nordic SoC by leveraging: nRF21540  Strong customer relationship  Feasibility from technical nRF5340 nPM1100 viewpoint

61. Slide 61: Expanding existing technology

    © Nordic Semiconductor Expanding existing technology Nordic strong contributor to new 5G, ETSI DECT-2020 standard WORLD’S FIRST NON-CELLULAR 5G TECHNOLOGY, ETSI DECT-2020, GETS ITU-R APPROVAL  Nordic main contributor to the physical layer and a key contributor to the medium access layer of the spec

62. Slide 62: Resulting in a broad range of opportunities

    © Nordic Semiconductor Resulting in a broad range of opportunities Evaluating new connectivity, adjacent products and ‘new frontiers’ High 3 2 1 Wi-Fi for battery Wide set of options operated devices 4 2 Power management available to Nordic: 1  Right balance of new vs 3 Front end devices existing c

63. Slide 63: Product strategy

    Product strategy

64. Slide 64: Successful short-range product strategy

    © Nordic Semiconductor Successful short-range product strategy Customer centric broadening of the portfolio  Broad portfolio of ultra-low power SoCs High-end  Multiprotocol products combining Bluetooth LE, Bluetooth mesh, ANT, NFC, Thread and Zigbee  Leading the market on power consumption, perfo

65. Slide 65: Multiple technologies, one common software solution

    © Nordic Semiconductor Multiple technologies, one common software solution Unifying Nordic Application Framework Cloud applications  Support for all Nordic ICs (>nRF52 Series) and tools Connectivity Protocols,  Support for all Nordic wireless technologies Security Libraries, DFU (Bluetooth LE, Thr

66. Slide 66: Applying proven strategy for new product lines

    © Nordic Semiconductor Applying proven strategy for new product lines Follow the successful Bluetooth product strategy Bluetooth Cellular IoT PMIC Wi-Fi High-end Entry-level 78

67. Slide 67: Committed to develop competitive PMIC line-up

    © Nordic Semiconductor Committed to develop competitive PMIC line-up Wireless = Portable, Portable = Batteries, Batteries = Power Management Expand offering where Build on technology Leverage existing and when it makes track record customer base sense We have experience in Room for innovation and Co

68. Slide 68: Wi-Fi on track for market introduction in H2 2022

    © Nordic Semiconductor Wi-Fi on track for market introduction in H2 2022 1 Harvest  Utilize newly acquired assets to get early access to Wi-Fi 6 market experience  Leverage our existing SoC position among our customers and in existing market verticals 2  Bring Wi-Fi into the Nordic IC and Softwar

69. Slide 69: Expanding into cloud-based services

    © Nordic Semiconductor Expanding into cloud-based services A new long term revenue stream for Nordic Semiconductor Location Services Future Services One-stop-shop Initial services for nRF9160 Also for short-range devices Out-of-the-box support on Nordic kits Assisted / Predictive GPS Firmware Over T

70. Slide 70: R&D Investing and growing

    R&D Investing and growing

71. Slide 71: Investing early in long life-time product families

    © Nordic Semiconductor Investing early in long life-time product families Significant investments in R&D long ahead of product profitability Sales volume Revenue Move to production Production cost Time Investment Cost Investments Time-to-Product (2-4 years) # variants First IC Revisions and Process

72. Slide 72: Continued strong commitment to innovation

    © Nordic Semiconductor Continued strong commitment to innovation >80% of current spending on products being launched beyond 2023 R&D spending Broad range of R&D projects Per technology (USDm)  Multiple short-range development projects 140  Developing and expanding the cIoT portfolio 120  Portfoli

73. Slide 73: R&D teams are located across the world

    © Nordic Semiconductor R&D teams are located across the world Significant office expansion in 2021 85

74. Slide 74: Growing to address long-term ambitions

    © Nordic Semiconductor Growing to address long-term ambitions Sixfold expansion of R&D organization since 2013 # R&D employees R&D organization grown organically apart from Wi-Fi acquisition in 2020 900 Recruitment focus on skills, experience 800 and passion, leveraging a worldwide 700 diverse workf

75. Slide 75: Amazon Sidewalk video

    (Nfs il qi il woroic’ | off tl wall & “oe i iam i 1 J meat Han UMLNN SS iss PE) mia Bley yi

76. Slide 76: People & Sustainability

    People & Sustainability Katarina Finneng, EVP People & Communication

77. Slide 77: A fabless organizational setup

    © Nordic Semiconductor A fabless organizational setup Simplifying lives through all things connected Lead on connectivity  We develop, sell and deliver integrated circuits and related High Excite ambitions developers products and services  Building on a flat organization balancing top-down and con

78. Slide 78: Building on our history for further growth

    © Nordic Semiconductor Building on our history for further growth Innovation, engagement and continuity as part of our corporate DNA  Established in 1983 by Trond Sæther, Frank Berntsen, Jan Meyer and Oddvar Aaserud, with Headquarter in Trondheim  Trond and Frank are still in the company  Average

79. Slide 79: Fast-paced organizational development

    © Nordic Semiconductor Fast-paced organizational development Maintaining a low turnover rate Employees & turnover # of employees, %-turnover 1,155 Roughly doubled our organization since 2017  Proven ability to attract people from a scarce talent pool 897  History of including established cultures

80. Slide 80: Innovation based on human capital

    © Nordic Semiconductor Innovation based on human capital Organizational ecosystem based on complementary competencies Employee composition % of total employees Organizational development and growth have R&D (%) required adjacent competencies for relevant utilization and efficiency Q3’21 Complementar

81. Slide 81: Head office and global locations

    HEAD OFFICE TRONDHEIM Age osto STOCKHOLM 3a ee ke LUND j ae BRIsToL =! = | y eReeon MASSACHUSETTS BERKSHIRE | Racy NEW JERSEY SWINDON |" = CALIFORNIA SOUTH CAROLINA eita, YOKOHAMA | , GEORGIA : ARIZONA * ote TAIPEI " FLORIDA COLORADO HYDERABAD. BANGALORE TEXAS SYDNEY y

82. Slide 82: Global organization – local presence

    © Nordic Semiconductor Global organization – local presence New R&D teams built on existing local competencies Cellular IoT Wi-Fi Digital Design Power Management IC in Oulu, Finland in Hyderabad, India in Bristol & Hatfield, UK in Swindon, UK 97

83. Slide 83: Continuing to develop sustainable ecosystems

    © Nordic Semiconductor Continuing to develop sustainable ecosystems Developing all relevant key enablers to our house Service Service Service Service Service Service Service Service Service Service Organization development with the right s s s s s sSoftwa sSoftwa sSoftwa s s ServicesSoftwaServices r

84. Slide 84: Working for a balanced organization

    © Nordic Semiconductor Working for a balanced organization Organizational awareness and efficient, relevant utilization Employee Value Proposition Fair, competitive and business EVP relevant model for compensation and reward, short- and long-term HR fundamentals Timely and efficient management Emplo

85. Slide 85: ESG

    ESG Environmental, Social and Governance

86. Slide 86: Fostering diversity and inclusion

    © Nordic Semiconductor Fostering diversity and inclusion Building capabilities for relevant competitiveness, attraction and retention 17 countries Talent Value Acquisition Compensation Proposition 57 nationalities Employer Leadership Branding Rewards Capabilities Female share  Board of Directors 43

87. Slide 87: Commitments

    © Nordic Semiconductor Potential for improvements in the value chain Increase material reuse and recycling, and reduce carbon footprint Raw material Tier-1 Distributors Customers End-users Framework Commitments suppliers subcontractors ISO 9001 ISO 14001 ISO 45001 ISO 27001 102

88. Slide 88: Large potential to make a global impact

    © Nordic Semiconductor Large potential to make a global impact A structured approach to ESG governance Our vision sets the framework: Simplifying lives through all things connected A leading vendor of wireless connectivity and embedded processing solutions for internet connected things with a sustai

89. Slide 89: IoT is crucial to deliver on UN SDGs

    © Nordic Semiconductor IoT is crucial to deliver on UN SDGs We are making ‘things’ more capable and Energy Harvesting efficient by:  Lowering power consumption  Increasing computational capability  Enabling a large variety of sustainable applications  Precision farming  Climate smart cities and

90. Slide 90: Enabling a large variety of sustainable solutions

    © Nordic Semiconductor Enabling a large variety of sustainable solutions v v v Nordic IoT and cellular Two of the winning projects Nordic cellular IoT (nRF9160 TempView employs Nordic The partnership between technology provides from the ‘ElephantEdge’ SiP) and AI combined in nRF52810 SoC to monitor

91. Slide 91: Targeting zero indirect (Scope 2) emissions by 2025

    © Nordic Semiconductor Targeting zero indirect (Scope 2) emissions by 2025 Nordic has negligible direct (Scope 1) emissions Scope 2 emissions per site and FTE  Transition to renewable energy for kt CO2e & CO2e tons per FTE operations in Trondheim HQ 0.65 0.60 significantly decreased Scope 2 0.55 gr

92. Slide 92: Creating more value for less

    © Nordic Semiconductor Creating more value for less Declining other indirect (Scope 3*) emissions per revenue unit Declining scope 3 emissions per revenue Scope 3 emissions account for ~58kt CO2 kt CO2e & CO2e tons per USDk revenue equivalents in 2020 60 55 Development closely related to production

93. Slide 93: Fundamental commitment to stakeholders

    Fundamental commitment to stakeholders Customers Employees Suppliers Owners Communities

94. Slide 94: Financials

    Financials Pål Elstad, CFO

95. Slide 95: Revenue growth exceeding expectations

    © Nordic Semiconductor Revenue growth exceeding expectations Revenue LTM1 per technology USDm CMD 2019 CMD 2021 600 Others Medium-term outlook Q3’19-Q3’21 +46% Cellular 500 CAGR Bluetooth 20%-30% CAGR +54% CAGR 400 300 Bluetooth Proprietary Modest decline +16% CAGR 200 Cellular IoT Gradual ramp-up S

96. Slide 96: Gross margins have held up strongly

    © Nordic Semiconductor Gross margins have held up strongly We expected gross margin pressure Gross margin LTM1 % Quarterly & rolling 12 months  Short-range gross margins were expected at 65% 48%-50% in the medium term, and cIoT at 35%-40 in volume production 60%  Blended gross margin would depend

97. Slide 97: R&D intensity has declined

    © Nordic Semiconductor R&D intensity has declined Our R&D outlook in 2019 was based on: R&D spending, LTM1 Per technology (USDm) and % of revenue  Increasing R&D in absolute terms, with R&D 150 intensity declining from a peak level in 2019 27% Wi-Fi R&D spending has increased… 22% Long- 100 19% ran

98. Slide 98: Operational leverage showing through

    © Nordic Semiconductor Operational leverage showing through SG&A cost, LTM1 % of revenue Our SG&A outlook in 2019 was based on: 20%  Growing the organization to capture multiple opportunities 15%  Operational leverage set to drive long-term SG&A below 10% 10% Already at ~10% due to strong revenue

99. Slide 99: Closing in on our long-term EBITDA targets

    © Nordic Semiconductor Closing in on our long-term EBITDA targets EBITDA & EBITDA margin LTM1 USDm and % 140  Outlined long-term EBITDA-margin target of 120 28% 20% at the CMD in 2019  Shown steady improvement over 100 the past 2 years 80 19% 17%  High revenue growth 60  Strong gross margin 40 9

100. Slide 100: Continuing growth journey

     Continuing growth journey Setting new long-term targets

101. Slide 101: Changing end-user market composition

     © Nordic Semiconductor Changing end-user market composition Revenue development by end-user market USDm, LTM  Consumer Electronics: Continued high Others growth, with PC accessories as largest sub- Healthcare segment Wearables  Building/Retail: Strong development for industrial and home-automation

102. Slide 102: New markets growing in importance

     © Nordic Semiconductor New markets growing in importance Revenue LTM Q3’21 Revenue 2026, illustrative 1) All technologies  Industrial IoT and advanced Short-range only connected Healthcare still in early stages  Disruptive potential in areas such as building automation, logistics/tracking, and dru

103. Slide 103: Investing in technologies for the long-term

     © Nordic Semiconductor Investing in technologies for the long-term Revenue LTM Q32’1 R&D Spend LTM Q32’1  Current revenue reflects 10+ Other short-range Other short-range years investment cycle in 3% short-range technologies  Investments in Cellular IoT, 39% Wi-Fi and other adjacent 61% technologi

104. Slide 104: Operating Model and financial outlook

     Operating Model and financial outlook

105. Slide 105: Expansion within target operating model

     © Nordic Semiconductor Expansion within target operating model Current and target operating model 52% ~50% Gross margin  Gross margin depending on technology and customer mix 10% <10% SG&A  Lower gross margins expected in cellular IoT Module business Gross margin  Higher gross margin opportunitie

106. Slide 106: Capex intensity to be maintained

     © Nordic Semiconductor Capex intensity to be maintained CAPEX LTM1 USDm, % of revenue 25 7.6% Long-term target for fabless business 20 model <5% of sales  Increased capex through 2021 to secure in- 15 house test capabilities 4.3%  During 2020 we invested in a 10 state-of-the-art lab 5 0 Q3’19 Q4’1

107. Slide 107: Sources and uses of cash since CMD 2019

     © Nordic Semiconductor Sources and uses of cash since CMD 2019 Cash flow USDm 600 Positive and increasing cash flow 500 from operations at USD 130 million 400  Strong cash conversion as net working 300 capital is reduced from 27% to 19% of revenue during the period 200  Increased cash by USD 38m a

108. Slide 108: Cash coverage of R&D

     © Nordic Semiconductor Cash coverage of R&D R&D coverage multiple Cash / R&D spending, LTM 3.0x Maintaining a sustainable cash to R&D 2.5x spending ratio  Securing long-term stability 2.0x  Continued strong commitment to 1.5x innovation 1.0x  Sustainable cash coverage level 0.5x of ~2x Q3’19 Q4’1

109. Slide 109: Capital priorities

     © Nordic Semiconductor Capital priorities Balancing growth funding requirements and shareholder distribution  Reinvesting in R&D with Cash flow improvements a long-term perspective  Exploring M&A opportunities in adjacent technologies and markets Reinvestment Strengthening Exploring M&A in growth

110. Slide 110: Summary

     Summary Svenn-Tore Larsen, CEO

111. Slide 111: High growth ambitions

     © Nordic Semiconductor High growth ambitions Revenue USDm >25% CAGR Reaching USD 1bn in 2023 under capacity constraints ~30% CAGR 1bn Aiming to more than double revenue from 600 2023-2026 2021e* 2023 2026 *2021 estimate based on mid range Q4 2021 guidance 127

112. Slide 112: A globally leading IoT enabler

     A globally leading IoT enabler Technology and customer driven growth - Strong supporting megatrends Continuing to invest in innovation - Building portfolio through logical expansions Building our organization with the right people to deliver the right outcome - Enabling sustainable IoT while minimiz

113. Slide 113: Nordic Semiconductor

     NORDIC’ SEMICONDUCTOR

114. Slide 114: Capital Markets Day

     Capital Markets Day October 21, 2021

Nordic Semiconductor — Investor Day (October 2021) on 6ix