Nordic Semiconductor Asa · OSL:NOD

Nordic Semiconductor Asa — Nordic Semiconductor Ord — Q2 2024 Earnings Presentation

21 slides from Nordic Semiconductor Asa's earnings presentation, Aug 8, 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: Revenue recovery as guided
© Nordic Semiconductor Revenue recovery as guided Q2 2024:  Revenue of USD 128 million Quarterly revenue development (USDm)  Sharp sequential improvement  Increased underlying demand + seasonality 154  Less adverse effect of distributor inventory changes 135 128  USD 10m write-down of Long-rang
Slide 5: Progressing to plan in stabilizing market
© Nordic Semiconductor Progressing to plan in stabilizing market  See return to year-on-year growth in Q3 NOD 2.0 – addressing three main purposes  Managed downturn with key workforce and momentum intact  Maintained and developed strong portfolio of key customer partnerships, and see more broad m
Slide 6: Top-10 and broad market split stabilizing
© Nordic Semiconductor Top-10 and broad market split stabilizing Bluetooth revenue composition (USDm) 700 63% 60% 600 58% 57% 57% 50%  High priority to regain 500 44% traction in the broad 39% 40% 400 38% 34% 38% market 29% 300  Maintaining strong 200 relationships with the key customers 100 0 201
Slide 7: High and stable design win market share
© Nordic Semiconductor High and stable design win market share Outpacing the total market LTM Bluetooth Low Energy end-product certifications, last 12 months 1500 Nordic end-product 1200 certifications Other 46% Qualcomm 43% 900 40% 40% 43% 41% 41% 42% Infineon Q2’24 35% Dialog/Renesas 130 designs T
Slide 8: New customer product launches in Q2 2024
© Nordic Semiconductor New customer product launches in Q2 2024 Joint Chinese Ltd TREEL Mobility Solutions Sensry Lifeguard Digital Health Skyhawk Smart ring Tire Pressure Monitor Multi-sensor module Emergency alarm Monitoring system nRF52840 nRF52833/832/810 nRF52840 + nPM1100 nRF9160 nRF9160 8
Slide 9: Status nRF54 Series
© Nordic Semiconductor Status nRF54 Series On-track for end-of-year launches  The nRF54 Series remains on-track for end- nRF54H Series of-year launches and start of revenues, as Revolutionary multiprotocol SoCs previously communicated For new advanced IoT products GlobalFoundries® 22FDX  More than
Slide 10: Recognized by Time magazine and Statista
© Nordic Semiconductor Recognized by Time magazine and Statista Named one of the "Worlds Most Sustainable Companies"  TIME and Statista recognizing companies that prioritize sustainability, promote corporate responsibility, and advance sustainable practices 10
Slide 12: Revenue by technology
© Nordic Semiconductor Revenue by technology Bluetooth revenue (USDm) Proprietary revenue (USDm) Long-range revenue (USDm) Quarterly Quarterly Quarterly -22% 150 143 15 15 +73% 120 112 11 10 10 100 90 10 10 +45% 63 6 6 6 50 5 5 4 4 4 3 0 0 0 Q2 Q3 Q4 Q1 Q2 Q2 Q3 Q4 Q1 Q2 Q2 Q3 Q4 Q1 Q2 2023 2023 202
Slide 13: Stronger sequential performance
© Nordic Semiconductor Stronger sequential performance Group Consumer Industrial Healthcare Other 127.9 USDm 83.0 USDm 26.6 USDm 14.9 USDm 2.9 USDm -16% 73% -2% 63% -11% 59% -57% 318% -23% 16% 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 84 83 Other 81 Healthcare 2% 67 12% 51 35 30 In
Slide 14: Gross margin
© Nordic Semiconductor Gross margin 70 %  Main drivers in Q2 vs. Q1  Write-down of Long-range 60 % components of USD 10 million  Underlying sequential improvement 53.0 % 52.0 % 50.5 % 49.8% due to changes in customer and 50 % 48.0 % product mix, and higher revenue on USD 10 million write-down whi
Slide 15: Operating model performance Q2 2024
© Nordic Semiconductor Operating model performance Q2 2024 Adj. Gross Margin 49.8% Q2 2024 Q2 2023 Δ USD USD Bluetooth decline in Industrials and Revenue -17.0% 127.9 m 154.2 m Healthcare 49.8% 53.0% Customer and product mix, adverse R&D Short-range 18.5% Adj. gross -3.2pp eﬀect of inventory changes
Slide 16: Cash cost increase of ~3% year-on-year
© Nordic Semiconductor Cash cost increase of ~3% year-on-year Cash OPEX* (USDm)  Workforce reduced by 9% y-o-y, cost effect mostly neutralized by 25 19 19 salary increases 20 20  Other costs stable, reflecting savings initiatives in inflationary environment 44 43 41 38 38  Continued focus on adju
Slide 17: Underlying capex intensity remains low
© Nordic Semiconductor Underlying capex intensity remains low Capex (USDm) 4.4% 6 3.1% 4 1.5% 2.0%  Low capex of USD 0.7m in Q1 and USD 2 2.5m in Q2 1.0% 0 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Capex Capex / Revenue * Q4 2023 excluding Atlazo IP acquisition 17
Slide 18: Focus on cash spending
© Nordic Semiconductor Focus on cash spending Cash position and Cash Flow Q2 2024 (USDm)  Return to positive operating cash flow in 258.0 Q2, supported by changes in NWC 235.0 -2.1 -2.5 3.8 -2.7 3.6 -1.8 0.6  NWC/Revenue LTM remains relatively -10.2 34.3 high historically at 44%  Low capex spendi
Slide 20: Q3 - expecting return to year-on-year growth
© Nordic Semiconductor Q3 - expecting return to year-on-year growth Q3 2024 guidance Revenue Gross margin  Q3 revenue increase supported by USDm improved underlying demand and 150-170m ~50% seasonal effects +11% to +26% y-o-y +17% to +33% q-o-q Unchanged from the underlying Q2 gross margin level 

Nordic Semiconductor Ord — Q2 2024 Earnings Presentation on 6ix

Nordic Semiconductor Asa — Nordic Semiconductor Ord — Q2 2024 Earnings Presentation

Slide 1: Quarterly Presentation Q2 2024

Slide 2: Disclaimer

Slide 3: Today's presenters

Slide 4: Revenue recovery as guided

Slide 5: Progressing to plan in stabilizing market

Slide 6: Top-10 and broad market split stabilizing

Slide 7: High and stable design win market share

Slide 8: New customer product launches in Q2 2024

Slide 9: Status nRF54 Series

Slide 10: Recognized by Time magazine and Statista

Slide 11: Financials

Slide 12: Revenue by technology

Slide 13: Stronger sequential performance

Slide 14: Gross margin

Slide 15: Operating model performance Q2 2024

Slide 16: Cash cost increase of ~3% year-on-year

Slide 17: Underlying capex intensity remains low

Slide 18: Focus on cash spending

Slide 19: Summary and Outlook

Slide 20: Q3 - expecting return to year-on-year growth

Slide 21: Q&A