Quarterly Presentation Q3 2024

October 24, 2024

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This presentation was prepared in connection with the Q3 results released on October 24, 2024. Information contained herein will not be updated. The following slides should also be read and considered in connection with the information given orally during the presentation.

Today's presenters

Vegard Wollan CEO

Pål Elstad

CFO

Revenue recovery as guided

Q3 2024:

§ Revenue of USD 159 million, marking a return to year-on-year growth
§ Sequential improvement from Q2 supported by seasonality
§ Gross margin of 50%, EBITDA USD 16m

Q4 2024 guidance:

§ Revenue of USD 130-150 million
- § Higher demand Y/Y
- § Sequential decline due to seasonality
§ Gross margin expected at ~50%

Quarterly revenue development (USDm)

Top-10 and broad market split stabilizing

Bluetooth revenue composition (USDm)

§ High priority to regain traction in the broad market
§ Maintaining strong relationships with the key customers

Remaining the clear design winner

>40% market share, 5x the number of designs compared to #2

New customer product launches in Q3 2024

nRF54 Series launching in Q4

Qualification and preparing for volume production

§ Launching the first products in our nRF54 Series at Electronica in Germany in mid-November
§ Key customers and many broad market customers already designing with the nRF54 Series
§ Beginning to ship both nRF54L and nRF54H in volumes in Q4

Bringing the market leading nRF52 Series to the next level

Revolutionary multiprotocol System-on-Chip (SoC)

Signed LOI for possible acquisition of Novelda

§ Strong tech position in ultra wideband, which is complementary to Nordic's wireless technologies
§ Due diligence ongoing and expected to be concluded by the end of November

Financials Pål Elstad, CFO

Revenue by technology

Consumer leading the revenue recovery

Group		Consumer		Industrial		Healthcare		Other
		158,8 USDm						3.0 USDm
18% y-o-y	25% q-o-q	35% y-o-y	31% - a-o-q	8% - y-o-y	-3% - q-o-q	-21% - y-o-V	41% q-o-q	-10% - y-o-y	4% q-o-q

Revenue for the individual markets excludes ASICs and consulting revenue 12

Gross margin

§ Stable underlying development
- § Changes mainly reflecting customer and product mix
§ Expecting gross margin around 50% for Q4 2024
§ Reiterating long-term ambition to maintain gross margin >50%

Operating model performance Q3 2024

Gross Margin 49.5%			Q3 2024	Q3 2023	△
R&D Short-range	15.7%	Revenue	USD 158.8 m	USD 135.0 m	+17.6 %	Bluetooth uptick in Consumer and Healthcare, higher Proprietary sales
		Gross margin	49.5%	50.5%	-1.0pp	Customer and product mix
			USD 78.7 m	USD 68.2 m
		R&D	15.7%	15.6%		High investments in products
R&D Long-range 7.7%	Short-range	USD 24.9 m	USD 21.1 m	+0.1pp	launched during Q4
		R&D	7.7%	8.6%	-0.9pp
R&D Wi-Fi	2.8%	Long-range	USD 12.2 m	USD 11.6 m
SG&A	13.2%	R&D Wi-Fi	2.8%	3.0%	-0.2pp
			USD 44 m	USD 4.0 m
		SG&A	13.2%	13.7%	-0.5pp
EBITDA	10.2%		USD 21.0 m	USD 18.5 m
		EBITDA	10.2%	9.5%		Improvement reflecting revenue
			USD 16.2m	USD 12.8m	+0.7pp	recovery

Cash cost development

§ Cost effect of workforce reductions neutralized by salary increases
§ Higher provisions for variable pay
§ Other costs stable
§ Continuous focus on adjusting spending to improve margins

Cash OPEX* (USDm)

Underlying capex intensity remains low

Capex (USDm)

§ Continued low Capex spending

Focus on cash spending

Cash position and Cash Flow Q3 2024 (USDm)

§ Operating cash flow of USD 13.8m in Q3
§ NWC/Revenue LTM remains high at 45%, mainly due to increased inventory
§ Low capex spending and continued focus on cash spending
§ Other items mainly reflecting financial income and payment of lease liabilities

Summary and Outlook Vegard Wollan, CEO

Profitable growth outlook

Clear market leader in a recovering market

§ Outlook for Short-range business
- § Ambition to grow faster than our markets over time, driven by new product launches
- § Modest growth with only limited effect of nRF54 in 2025
- § Growth set to accelerate from 2026 onwards
§ Group level ambitions:
- § Deliver average annual revenue growth above 20% through the decade
- § Move towards ~25% EBITDA margin within five years

Q4 expected to show continued y/y growth

Q4 2024 guidance

Revenue	Gross margin
USDm 130-150m	~50%
+20% to +39% -18% to -6% y-o-y q-o-q

§ Year-on-year revenue growth outlook reflecting higher underlying demand
§ Sequential decline from Q3'24 reflecting seasonal effects
§ Gross margin expected at ~50%, on par with the previous quarter

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