Nordic Semiconductor Asa · OSL:NOD

Nordic Semiconductor Asa — Nordic Semiconductor Ord — Q4 2024 Earnings Presentation

23 slides from Nordic Semiconductor Asa's earnings presentation, Feb 5, 2025

1. Slide 1: Quarterly Presentation Q4 2024

   © Nordic Semiconductor Quarterly Presentation Q4 2024 February 5, 2025

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: Today's presenters

   © Nordic Semiconductor Today’s presenters Vegard Wollan Pål Elstad CEO CFO 3

4. Slide 4: Continued revenue recovery in Q4

   © Nordic Semiconductor Continued revenue recovery in Q4 Q4 2024: § Revenue of USD 150 million Quarterly revenue development (USDm) § +39% from a Q4’23 affected by inventory adjustments § Sequential decline reflecting underlying seasonal demand patterns § Gross margin of 49% § EBITDA USD 9m (USD -7m

5. Slide 5: Laid solid foundation for profitable growth

   © Nordic Semiconductor Laid solid foundation for profitable growth § Putting the groundwork in place § Nordic 2.0 – set course with strategic clarity § Reorganized to enhance efficiency and cut costs § Launched the nRF54 Series in Short-range § Launched the nRF9151 SiP in Long-range § Maturing our n

6. Slide 6: Top-10 and broad market split stabilizing

   © Nordic Semiconductor Top-10 and broad market split stabilizing Bluetooth revenue composition (USDm) 700 600 63% 60% 58% 57% 58% § Maintained strong 500 50% relationships with 400 44% 40% key customers 38% 39% 38% 300 34% § High priority to 29% 200 regain traction in 100 the broad market 0 2012 201

7. Slide 7: Remaining the clear design win leader

   © Nordic Semiconductor Remaining the clear design win leader 35% share of certifications, 4x the number of #2 Bluetooth Low Energy end-product certifications, Last 12 Months Nordic end-product certifications Q4’24 82 designs 26% share 2024 437 designs 35% share Competitors *Source: Nordic Semiconduc

8. Slide 8: Unique growth opportunity

   © Nordic Semiconductor Unique growth opportunity Driven by the launch of nRF54 Product launches supporting growth through the decade § Ramp-up of the nRF54 Series set to drive growth Ramp-up of more product families through the decade § Gradual transition from current nRF52 Series Ramp-up of the ini

9. Slide 9: Launched three nRF54L variants at Electronica

   © Nordic Semiconductor Launched three nRF54L variants at Electronica 4x more nRF54L development kits shipped vs. nRF52 launch § nRF54 – fully integrated 22nm wireless SoC - built on Nordic proprietary ultra-low power technology and IP § Strong customer feedback on low power performance, integrated m

10. Slide 10: Kicking off the year at CES 2025

    © Nordic Semiconductor Kicking off the year at CES 2025 Nordic showcased groundbreaking products § High activity at the booth – main focus on nRF54 Series for use in existing and new end-user applications § Several customers demonstrated end-products using nRF54 Series SoCs § 12 different module mak

11. Slide 11: nRF54H – Focus on key customers and early adopters

    © Nordic Semiconductor nRF54H – Focus on key customers and early adopters Accelerating time to mass production of end-products § High design activity with key customers – working to provide the software support required to enable design and mass production of end-products § Key customers recognize t

12. Slide 12: Nordic powers next-gen AI/ML products

    © Nordic Semiconductor Nordic powers next-gen AI/ML products 12

13. Slide 13: Financials

    © Nordic Semiconductor Financials Pål Elstad, CFO

14. Slide 14: Revenue by technology

    © Nordic Semiconductor Revenue by technology Bluetooth revenue (USDm) Proprietary revenue (USDm) Long-range revenue (USDm) Quarterly Quarterly Quarterly 14

15. Slide 15: Consumer leading the revenue recovery

    © Nordic Semiconductor Consumer leading the revenue recovery Revenue for the individual markets excludes ASICs and consulting revenue 15

16. Slide 16: Gross margin

    © Nordic Semiconductor Gross margin § Stable underlying development § Changes mainly reflecting customer and product mix § Expecting gross margin around 50% for Q1 2025 § Reiterating long-term ambition to maintain gross margin >50% * Note: Gross margin for Q2 2024 excludes a USD 10 million writedown

17. Slide 17: Operating model performance Q4 2024

    © Nordic Semiconductor Operating model performance Q4 2024 17

18. Slide 18: Cash cost development

    © Nordic Semiconductor Cash cost development Cash OPEX* (USDm) § Cost effect of workforce reductions neutralized by salary increases after salary freeze in 2023 § Number of employees reduced by 9% year over year § Other costs stable § Continuous focus on adjusting spending to improve margins *Cash O

19. Slide 19: Underlying capex intensity remains low

    © Nordic Semiconductor Underlying capex intensity remains low Capex* (USDm) * Q4 2023 excluding Atlazo IP acquisition 19

20. Slide 20: Focus on cash spending

    © Nordic Semiconductor Focus on cash spending Cash position and Cash Flow Q4 2024 (USDm) § Operating cash flow of USD 49.2m in Q4 § NWC/Revenue LTM remains high at 34%, mainly due to high inventory § Low capex spending and continued focus on cash spending § Currency translation relates to the natura

21. Slide 21: Summary and Outlook

    © Nordic Semiconductor Summary and Outlook Vegard Wollan, CEO

22. Slide 22: Revenue recovery continuing in Q1

    © Nordic Semiconductor Revenue recovery continuing in Q1 Q1 2025 guidance § Strong year-on-year revenue growth outlook for Q1, reflecting both higher Revenue Gross margin demand and significant inventory USDm adjustments in Q1’24 140-160m ~50% § Orders from individual customers set to +88% to +115%

23. Slide 23: Q&A

    © Nordic Semiconductor Q&A

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