Investor Presentation • Oct 20, 2022
Investor Presentation
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Cellular IoT revenue of USD 9 million (+61%)
Continued strong gross margin of 57%
| Q3 | 01.01-30.09 | ||||||
|---|---|---|---|---|---|---|---|
| Amount in USD million | 2022 | 2021 | Change | 2022 | 2021 | Change | |
| Revenue | 202.1 | 148.5 | 36.1% | 585.4 | 439.3 | 33.2% | |
| Gross profit | 115.7 | 78.8 | 46.9% | 335.9 | 225.8 | 48.8% | |
| Gross margin % | 57.3% | 53.1% | 4.2 p.p. | 57.4% | 51.4% | 6 p.p. | |
| EBITDA | 60.1 | 28.3 | 112.4% | 166.8 | 82.4 | 102.5% | |
| EBITDA % | 29.8% | 19.1% | 10.7 p.p. | 28.5% | 18.7% | 9.7 p.p. | |
| Operating profit (EBIT) | 48.5 | 18.9 | 156.7% | 134.6 | 54.7 | 146.1% | |
| Operating profit % (EBIT) | 24.0% | 12.7% | 11.3 p.p. | 23.0% | 12.4% | 10.5 p.p. | |
| Net profit after tax | 24.2 | 13.6 | 77.9% | 90.9 | 44.3 | 105.0% | |
| Cash and cash equivalents | 352.8 | 246.0 | 43.4% | ||||
| Order backlog | 1 092.6 | 1 315.6 | -17.0% | ||||
| LTM Opex excluding depreciation / LTM revenue |
30.1% | 32.4% | -2.3 p.p. | ||||
| Net working capital / LTM revenue | 22.5% | 19.0% | 3.5 p.p. | ||||
| Equity ratio | 74.4% | 78.0% | -3.6 p.p. | ||||
| Number of employees | 1 384 | 1 155 | 19.8% |
Revenue of USD 202.1 million in the third quarter 2022 and USD 585.4 million for the first nine months, corresponding to year-on-year growth of 36% and 33%, respectively. Bluetooth revenue increased by 44% year-on-year although delivery capacity remains capped by limited supply of wafers. However, demand slowdown and inventory adjustments at distributors generated a 29% year-on-year decline in Proprietary revenue. Cellular IoT revenue increased by 61%, reflecting that the component issues holding back production in the first half of the year have been resolved.
Industrial and logistical value chains remain under pressure due to persistent Covid-19 challenges in Asia and the war in the Ukraine, although Nordic and its suppliers and distributors overall have remained fully operational.
Nordic Semiconductor continues to be affected by a wafer shortage limiting delivery capabilities for the company's Bluetooth Low Energy products. Wafer deliveries in the third quarter were higher than in the previous quarter, although further increases are unlikely in the coming quarter. Bluetooth revenue capacity in the fourth quarter will ultimately depend on the timing of wafer deliveries.
Nordic is progressing with a cross-technology development program which will involve new process technologies and strengthen supply security from 2024. Nordic's own backend production capacity and in-house testing capabilities can handle significantly higher volumes.
Nordic's proprietary products are based on a different node technology and do not face the same supply constraints as our Bluetooth Low Energy products. However, as the company stated in the interim report for the first half year, demand for PC accessories and other home office equipment has been exceptionally strong throughout the Covid-19 period and could face lower demand with a generally weaker macroeconomic outlook and consumer sentiment and return-tooffice policies.
In line with this, Nordic experienced lower proprietary demand from smaller proprietary customers and significant inventory adjustments at its distributors in the third quarter, whereas end-user demand from tier-1 customers held up well. Proprietary products' share of revenue is expected to decline going forward, as more customers are migrating to other technologies such as Bluetooth Low Energy.
The order backlog stood at USD 1.1 billion at the end of the third quarter. As described in previous interim reports, the order backlog has reflected a supply/ demand imbalance, and Nordic has over the past year worked to better align order inflow with actual delivery capacity. During the third quarter the company has also begun to see customer order cancellations, particularly in consumer verticals that are sensitive to the near-term economic outlook. Booked orders and forecasts from the company's tier-1 customers in the Bluetooth segment remain firm.
Bluetooth design certifications and product launches Nordic had a market share of 40% of new design certifications in the Bluetooth Low Energy (Bluetooth LE) market for the third quarter 2022 and 41% for the past 12 months, according to FCC and Bluetooth SIG data compiled by DNB Markets.
The total number of new Bluetooth LE design certifications was 283 in the third quarter 2022, of which 112 had Nordic inside.
As always, Nordic customers launched a wide variety of new products powered by the company's Bluetooth Low Energy SoCs (System-On-Chip) in the third quarter. New Bluetooth product launches included a drone ID and location system, an air purifier, a smart plant grower, beacons, utility access, game dices, a panic button, and an ECG heart monitor.
Nordic joined the Board of Connectivity Standards Alliance as a Promoter Member, the highest level of membership, in late September. This allows the company to further shape the Alliance's continued development of standards such as 'Matter', which will ensure interoperability between smart home devices and accelerate the mainstream adoption of smart home technologies.
The Connectivity Standards Alliance Board includes representatives from a range of leading IoT companies across several industries, including Apple, Amazon, Google and Samsung.
Nordic is seeking to open the broad market for cellular IoT solutions with a scalable and flexible model combining leading-edge ultra-low power hardware, open-source software, strong technical support through DevZone and distributors, an expanding Partner Program as well as global carrier certification.
Nordic's end-customers are working on more than 250 different cellular IoT projects across a wide variety of verticals, including smart cities, logistics and asset tracking, industrial and agricultural monitoring systems, metering, parking, and payment systems, etc.
While several of these projects have gained good commercial traction, the currently tougher economic climate enhances the risks related to demand forecasts, project timing and customer project financing.
In the first half, product deliveries within Cellular IoT were affected by the unavailability of a specially adapted filter. This issue was resolved towards the end of the first half, and the delivery capacity increased significantly from the second to the third quarter.
New product launches with Nordic's nRF9160 SiP in the third quarter included a wearable location tracker, and a child tracker system combining wireless and Bluetooth technology.
In August, Nordic announced the nRF7002 dual-band Wi-Fi 6 chip, marking its entry into the Wi-Fi wireless IoT market. The nRF7002 is a 'companion IC' designed to provide seamless Wi-Fi connectivity and Wi-Fi based locationing when used alongside Nordic's existing products and can also be used together with non-Nordic host devises.
This makes Nordic one of few companies globally to offer the world's three most popular wireless IoT technologies: Bluetooth, Wi-Fi, and Cellular IoT.
During the third quarter, Nordic also launched the second product in its power management portfolio, the nPM6001. Following the nPM1100 PMIC which was launched last year, the nPM6001 is a dedicated PMIC designed to supervise and supply the power requirements of complex IoT hardware. The nPM6001 can be used to power Nordic's new nRF7002 ultra-low power, dual-band Wi-Fi 6 companion IC as well as the nRF52 and nRF53 Series SoCs.
In the third quarter Nordic also recorded the first commercial revenues from its cellular services offering.
Nordic is investing to expand its scope and opportunity pipeline, with new technologies, new products, and new business models. As part of this process, the company in early July announced an agreement to acquire Mobile Semiconductor. The Seattle-based company specializes in highly optimized embedded memory technology for microcontrollers (MCUs) and Systems-on-Chip (SoCs) and has long provided the RAM memory used in Nordic's nRF52 and 53 Series Bluetooth SoCs and the nRF9160 cellular IoT SiPs. Regulatory approval and closing of the transaction is expected before the end of 2022.
Nordic was in September assigned an 'A' rating in Position Green's annual "ESG 100" report. The rating reflects that Position Green found Nordic's 2021 ESG reporting to be in line with best practice and standards.
| Q3 | 01.01-30.09 | ||||||
|---|---|---|---|---|---|---|---|
| Amounts in USD thousand | 2022 | 2021 | Change | 2022 | 2021 | Change | |
| Bluetooth | 179 179 | 124 342 | 44.1% | 497 178 | 367 151 | 35.4% | |
| Proprietary wireless | 12 870 | 18 149 | -29.1% | 63 643 | 56 710 | 12.2% | |
| Short range wireless components | 192 050 | 142 491 | 34.8% | 560 821 | 423 861 | 32.3% | |
| Cellular IoT | 8 606 | 5 344 | 61.0% | 20 321 | 11 149 | 82.3% | |
| ASIC components | 714 | 656 | 8.8% | 2 750 | 3 903 | -29.6% | |
| Consulting services | 0 | 0 | —% | 0 | 400 | -100.0% | |
| Other | 718 | 0 | —% | 1 469 | 0 | —% | |
| Total revenue | 202 087 | 148 491 | 36.1% | 585 360 | 439 313 | 33.2% |
Nordic reported total revenue of USD 202.1 million in the third quarter 2022, which was an increase of 36% from USD 148.5 million in the third quarter 2021. Revenue was 1% higher than the previous quarter. The growth compared to last year mainly reflects higher prices and higher supply of wafers.
Nordic classifies its revenues into the following technologies: Short-range wireless components, long range (cellular IoT) wireless components, ASIC components, Consulting services and other. Other revenues include PMIC sales and development tool sales. Short-range wireless components are in turn split between Bluetooth and Proprietary solutions.
Bluetooth revenue amounted to USD 179.2 million in the third quarter 2022, an increase of 44% from USD 124.3 million in the third quarter 2021. The revenue increase mainly reflected higher supply of wafers and higher prices. Bluetooth share of total revenue was 89% in Q3 2022.
Proprietary revenue was USD 12.9 million in Q3 2022, which was a decrease of 29% year-on-year and down 50% from the previous quarter. The decline is mainly due to lower demand from smaller PC accessories producers as well as inventory adjustments at the distribution channel.
Cellular IoT reported revenue of USD 8.6 million in Q3 2022, which was an increase of 61% from Q3 2021 and 67% higher than the previous quarter. The previously communicated component issues have now been resolved.
ASIC component revenues amounted to USD 0.7 million in Q3 2022, compared with USD 0.7 million in Q3 2021 and USD 1.0 million in the previous quarter.
For the first nine months of 2022, revenue amounted to USD 585.4 million, an increase of 33% from USD 439.3 million in the first nine months of 2021. Bluetooth revenue increased by 35.4% to USD 497.2 million, whereas proprietary wireless revenue increased by 12% to USD 63.6 million. Cellular IoT revenues increased by 82% in the first nine months of the year, to USD 20.3 million.
| Q3 | 01.01-30.09 | |||||
|---|---|---|---|---|---|---|
| Revenues by end-product markets Amounts in USD thousand |
2022 | 2021 | Change | 2022 | 2021 | Change |
| Consumer | 126 242 | 104 104 | 21.3% | 374 893 | 293 161 | 27.9% |
| Industrial | 51 815 | 32 224 | 60.8% | 139 804 | 103 436 | 35.2% |
| Healthcare | 14 374 | 6 496 | 121.3% | 45 320 | 25 358 | 78.7% |
| Other | 8 942 | 5 010 | 78.5% | 22 594 | 13 055 | 73.1% |
| Total revenue excl. ASIC & Consulting | 201 373 | 147 835 | 36.2% | 582 611 | 435 010 | 33.9% |
As described in the interim report for the fourth quarter 2021, Nordic has changed the end-market reporting structure to better mirror the internal sales and reporting structures and the underlying verticals. The new classification now also includes cellular IoT revenues.
The company reports on four end-user markets: Consumer, Industrial, Healthcare, and Others.
Note that the revenue developments across these verticals reflect customer allocations from Nordic as well the as underlying demand.
Consumer hence accounted for 63% of revenue, having grown by 21% year-on-year to USD 126.2 million in Q3 2022. The main growth drivers in the period were consumer asset tracking solutions, home automation applications, and continued high demand for PC accessories for home offices and gaming. For the first nine months of 2022, Consumer revenue increased by 28% to USD 374.9 million.
Industrial accounted for 26% of revenues, having grown by 61% year-on-year to USD 51.8 million. The main drivers have been industrial automation, utility sensors, asset tracking solutions, and retail solutions. For the first nine months of 2022, Industrial revenue increased by 35% to USD 139.8 million.
Revenue in the professional Healthcare vertical increased 121% year-on-year to USD 14.4 million, whereas Other revenue increased 78% to USD 8.9 million. For the first nine months of 2022, Healthcare increased by 79% to USD 45.3 million and Other increased by 73% to USD 22.6 million.
Revenue - Consumer electronics Revenue - Healthcare
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| Q3 | 01.01-30.09 | ||||||
|---|---|---|---|---|---|---|---|
| Amounts in USD thousand | 2022 | 2021 | Change | 2022 | 2021 | Change | |
| Gross profit | 115 737 | 78 808 | 46.9% | 335 900 | 225 810 | 48.8% | |
| Gross margin | 57.3% | 53.1% | 4.2% | 57.4% | 51.4% | 6.0% | |
| Operating expenses excl. depreciation and amortization |
55 603 | 50 499 | 10.1% | 169 104 | 143 441 | 17.9% | |
| EBITDA | 60 135 | 28 309 | 112.4% | 166 796 | 82 369 | 102.5% | |
| EBITDA % | 29.8% | 19.1% | 10.7% | 28.5% | 18.7% | 9.7% | |
| Depreciation and amortization | 11 627 | 9 409 | 23.6% | 32 215 | 27 680 | 16.4% | |
| EBIT | 48 508 | 18 900 | 156.7% | 134 581 | 54 689 | 146.1% |
Gross profit was USD 115.7 million in Q3 2022, up 47% from USD 78.8 million in Q3 2021, with the gross margin increasing to 57.3% from 53.1% in the same quarter last year.
The strong gross margin comes as a result of a continued positive effect of product and customer mix. Compared to last quarter gross margins are up as Bluetooth is a larger share of the total technology mix.
For the first nine months of 2022, gross profit increased by 49% to USD 335.9 million, with the gross margin increasing to 57.4% from 51.4% in the same period last year.
Operating expenses amounted to USD 55.6 million in Q3 2022, excluding depreciation and amortization, an increase of 10% compared to USD 50.5 million in Q3 2021. The increase primarily reflects a higher activity level and a 20% growth in the workforce to 1 384
employees over the past year, offset by currency effects. Due to the weakening of NOK and EUR compared to USD, Nordic has had a positive currency impact on payroll of more than USD 6 million compared to Q3 2021. Adjusted for the currency effect, operating expenses are up more than 20%.
R&D costs amounted to USD 38.2 million, compared to USD 35.7 million in Q3 2021. USD 23.1 million related to the short-range business, USD 11.5 million to cellular R&D and USD 3.6 million to Wi-Fi.
Nordic capitalized a total of USD 2.1 million in development expenses in Q3 2022, compared to USD 1.0 million in Q3 2021.
USD 1.3 million of this related to Wi-Fi investments and USD 0.8 million to the short-range business. Expenses related to equity compensation were USD 2.3 million in Q3 2022.
Total cash operating expenses amounted to USD 55.3 million in Q3 2022, when adding back capitalized development expenses and deducting depreciation and equity-based compensation from total operating expenses. This compares to USD 49.1 million in Q3 2021.
USD 38.3 million of the cash operating expenses were related to payroll expenses, compared to USD 36.5 million in Q3 2021. The company continues to invest and add new employees to support a higher activity level, strengthen customer relations, and continue its technology innovation. The number of employees in R&D has increased 17% over the past year to 1043. The Sales & Marketing staff increased 17% to 158, whereas the supply chain organization increased 26% to 87 employees.
Other cash operating expenses were USD 17.0 million in Q3 2022, compared to USD 12.6 million in Q3 2021. The increase of 35% is explained by higher activity level, with more tape-outs, higher consulting fees and increased travel expenses.
For the first nine months of 2022, operating expenses amounted to USD 169.1 million, excluding depreciation and amortization, up from USD 143.4 million in the first nine months of 2021. Cash operating expenses increased to USD 112.9 million from USD 94.4 million in the first nine months.
With both revenue and gross profit at record high levels and continued strong cost control, EBITDA more than doubled to USD 60.1 million in Q3 2022 from USD 28.3 million in Q3 2021. The reported EBITDA margin hence increased to 29.8% from 19.1% in the same quarter last year.
Short-Range EBITDA was USD 72.7 million in Q3 2022, and the EBITDA margin for the short-range business 37.6%. This compares to USD 41.5 million and 29.0% in Q3 2021. These figures exclude the cellular IoT business and the Wi-Fi business.
For the first nine months of 2022, EBITDA was USD 166.8 million, compared to USD 82.4 million in the same period last year. The reported EBITDA margin increased to 28.5% from 18.7% in the first nine months of 2021.
Depreciation and amortization increased to USD 11.6 million in Q3 2022, compared to USD 9.4 million in Q3 2021. The increase mainly reflects higher amortization of cellular IoT and Wi-Fi intangibles. Amortization of internally developed R&D overall amounted to USD 3.8 million and amortizing of leased assets to USD 1.4 million.
Operating profit (EBIT) was USD 48.5 million in Q3 2022, more than doubling from USD 18.9 million in Q3 2021. For the first nine months of 2022, EBIT increased to USD 134.6 million from USD 54.7 million in the same period last year.
Net financial income was USD 2.8 million in Q3 2022, compared to a net financial cost of USD 0.6 million in Q3 2021.
Profit before tax was USD 51.3 million in Q3 2022, compared to a profit before tax of USD 19.5 million in Q3 2021. Tax expense was USD 27.1 million or an effective tax rate of 53%, compared to tax expense of USD 5.9 million in Q3 2021. The company's statutory tax rate is 22%. The company presents its accounts in USD, with profits translated into NOK for taxation purposes. During Q3, Nordic had significant currency gains in the NOK accounts. Net profit was hence USD 24.2 million in Q3 2022, compared to a net profit of USD 13.6 million in Q3 2021.
For the first nine months of 2022, profit before tax was USD 142.4 million and net profit was USD 90.9 million. This compares to USD 54.7 million and USD 44.3 million, respectively, in the first nine months of last year.
| Amounts in USD thousand | 30.09.2022 | 31.12.2021 | 30.09.2021 |
|---|---|---|---|
| Capitalized development expenses | 28 172 | 31 542 | 33 403 |
| Total non-current assets | 98 419 | 108 844 | 111 991 |
| Inventory | 88 681 | 54 943 | 51 896 |
| Cash and cash equivalents | 352 801 | 279 331 | 246 001 |
| Total current assets | 638 840 | 487 973 | 439 592 |
| Total assets | 737 259 | 596 817 | 551 583 |
| Total equity | 548 379 | 458 209 | 430 117 |
| Equity percentage | 74.4% | 76.8% | 78.0% |
| Total liabilities | 188 879 | 138 608 | 121 466 |
| Total equity and liability | 737 259 | 596 817 | 551 583 |
Total shareholders' equity amounted to USD 548.4 million at the end of Q3 2022, up from USD 430.1 million at the end of Q3 2021 and USD 458.2 million at the end of 2021.
The Group equity ratio was 74.4% of a total asset base of USD 737.3 million.
Cash and cash equivalents amounted to USD 352.8 million, compared to USD 246.0 million at the end of Q3 2021.
Net working capital increased to USD 170.1 million at the end of Q3 2022, up from USD 107.4 million at the end Q3 2021. Measured as a percentage of last 12 months revenue, net working capital increased to 22.5% from 19.0% at the end of Q3 2021. The increase is mainly driven by higher accounts receivables.
The changes in net working capital mainly reflect an increase in accounts receivable to USD 183.5 million from USD 131.2 million at the end of Q3 2021. This increase comes as a result of significantly higher revenue. Inventory increased to USD 88.7 million from USD 51.9 million.
Total current assets amounted to USD 638.8 million at the end of Q3 2022, up from USD 439.6 million at the end of the Q3 2021.
Non-current assets amounted to USD 98.4 million at the end of Q3 2022, compared to USD 112.0 million at the end of Q3 2021.
Current liabilities amounted to USD 177.4 million, compared to USD 103.4 million at the end of Q3 2021. The increase mainly reflects increased taxes payable and public duties, as well as a moderate increase in accounts payable and other current liabilities.
Non-current liabilities amounted to USD 11.5 million, compared to USD 18.1 million at the end of Q3 2021. Non-current liabilities mainly consist of lease liabilities. Nordic had no interest-bearing debt at the end of Q3 2022.
| Q3 | 01.01-30.09 | ||||
|---|---|---|---|---|---|
| Amounts in USD thousand | 2022 | 2021 | 2022 | 2021 | |
| Cash flows from operations | 44 784 | 25 487 | 106 574 | 53 346 | |
| Cash flows from investing activities | -9 242 | -4 995 | -21 181 | -24 065 | |
| Cash flows from financing activities | -1 489 | -1 609 | -9 279 | -25 553 | |
| Change in cash and cash equivalents | 32 951 | 18 568 | 73 471 | 3 454 | |
| Cash and cash equivalents at the end of the period | 352 801 | 246 001 | 352 801 | 246 001 |
Cash flow from operating activities was USD 44.8 million in Q3 2022, compared to USD 25.5 million in Q3 2021. The strong operating cash flow is a result of profits generated in the quarter, only partly offset by increase working capital.
Cash flows from investing activities was an outflow of USD 9.2 million in Q3 2022, compared to an outflow of USD 5.0 million in Q3 2021. Capital expenditures -including software- amounted to USD 7.2 million, up from USD 4.0 million in the second quarter last year, whereas capitalized development expenses increased to USD 2.1 million from USD 1.0 million in the same period last year.
Capex over the past years has been investments in lab equipment and purchase of test equipment to secure higher capacity when the wafer shortage eases. Higher capex during Q3 is mainly related to investments in IT infrastructure.
Cash flows from financing activities was an outflow of USD 1.5 million relating to lease liabilities. This compares to an outflow of USD 1.6 million in Q3 2021.
For the first nine months of 2022, cash flow from operating activities amounted to USD 106.6 million compared to USD 53.3 million in the same period last year, whereas cash outflow for investing activities was USD 21.2 million compared to USD 24.1 million in the same period last year. Net cash flow from financing activities was an outflow of USD 9.3 million, compared to USD 25.6 million in the same period last year, which included USD 20.8 million related to cash settlement of options contracts
The Group's cash position was USD 352.8 million at the end of Q3 2022, compared to USD 246.0 million at the end of Q3 2021 and USD 279.3 million at the end of 2021. The cash is mainly kept in the Group's functional currency USD to minimize the impact of currency fluctuations.
Available cash including credit and overdraft facilities amounted to USD 502.5 million, including Nordic's right to borrow USD 150 million under sustainability linked RCF.
As described in the Annual Report for 2021, the company has identified four major groups of risk: Strategic, Operational, Financial and Legal & Compliance. Some of these risks are outside of Nordic's control, including industry and specific cyclical risks. The supply of and demand for semiconductors and electronic products is sensitive to global economic conditions and international trade flows. While the underlying long-term market trends point towards increasing demand for Nordic's products, the operations are exposed to a variety of factors with real or perceived impact on the economy. The current macroeconomic headwinds have accentuated these risk factors.
Please refer to the Annual Report for 2021 for a thorough review of the company's main strategic risks and external factors, including geopolitical risk and trade tensions, the coronavirus, climate change and natural disasters, changes in the competitive landscape, risks related to the Bluetooth and cellular IoT technologies, and risks related to the dependency on key personnel.
The Annual Report also provides a review of operational risks related to product availability, quality, safety, and integrity, risks related to product ramp, and IT and cyber risk.
Nordic is continuing to monitor potential implications of geo-political risks, such as the Russian invasion of Ukraine, the increased tension between China and Taiwan, as well the ongoing efforts by the United States to protect its national security by imposing export controls related to China with potential implications for the global supply chain of semiconductors. At the time of publication of the quarterly report, there is no indication of significant impact to revenue nor upstream supply.
Nordic's growth is dependent on demand for its customers' end products, primarily within the IoT, consumer, healthcare, and industrial sectors. Industry downturns that adversely affect the Group's customers or their customers could adversely affect demand for the Group's products. Additionally, global or regional economic slowdowns affecting business and consumer confidence generally could cause demand for semiconductor products to decline.
Although restrictions related to Covid-19 have been lifted in most countries, the pandemic continues to affect the availability and transportation logistics for a variety of components and products, particularly for shipments in and out of Chinese ports. Nordic's main suppliers and distributors are fully operational, although local restrictions and lockdowns temporarily have affected and can in the future affect production and shipments in some areas.
Nordic has a capital light business model, operating as a fabless semiconductor company with sales predominantly through third-party distributors, and with R&D and people as both its main resources and its main cost components. Nordic is exposed to third-party suppliers' ability to deliver the wafer volumes required to facilitate the company's sales volumes.
Nordic is in continuous dialog with its suppliers, distributors, and customers about the effects of the capacity constraints, and is doing its utmost both to secure additional wafers and help its customers manage the challenges brought about by the value chain imbalances.
The company has been working to establish additional sources and has entered into contracts that will improve access to material from 2024 onwards.
Nordic's module-based cellular IoT product is dependent on a large number of third-party supplier, and shortage of one component impacted delivery capacity in the first half of the year. This has now been resolved.
The company has seen no major changes to the financial risk compared to the statements given in the Annual Report 2021. Nordic maintains a sharp focus on cost and cash flows and navigates from a strong position. Nordic's strategy and growth ambitions require an adequate cash position to fund the R&D activities needed to drive the technology and product roadmaps forward. The Group's cash position was USD 352.8 million at the end of the third quarter 2022. The Board of Directors continue to assess the liquidity risk as low.
Nordic holds no interest-bearing debt, and the direct risk associated with interest rate fluctuations is considered low. The company also assesses the credit risk as low.
Nordic is exposed to foreign exchange risk. Revenue and direct production costs are almost entirely nominated in USD. Payroll is predominantly nominated in other currencies than USD, where the largest currencies in Q3 are NOK (more than 50%) and EUR (more than 20%). Other operating expenses are nominated primarily in USD but also a range of other currencies. The company presents its accounts in USD, with profits translated into NOK for taxation purposes.
Nordic Semiconductor delivered 36% revenue growth to USD 202 million in the third quarter 2022, and 33% to USD 585 million for the first nine months. Demand for Bluetooth products remains solid, with revenue up 44% despite the continued limited availability of wafers. Cellular IoT generated year-on-year revenue growth of around 61%
Proprietary product revenue showed a year-on-year decline of 29% in the third quarter. This primarily reflects inventory adjustments among distributors and lower demand from smaller enterprises, whereas demand from tier-1 customers is holding up well. The demand outlook for home office and gaming equipment such as keyboards and mice is softening after two years of strong growth, and demand for Nordic's proprietary products is also expected to be impacted by technology migration to i.e. Bluetooth Low Energy. Proprietary revenue will account for less than 10% of revenue this year, and its share of revenue is hence expected to decline further going forward.
Committed wafer allocations for Bluetooth products allow Nordic to guide for a revenue level of USD 190-210 million in the fourth quarter, considering both lower proprietary demand and increased short-term uncertainty for cellular IoT. Nordic's Bluetooth low energy business remains impacted by the wafer shortage, and revenue for the quarter will ultimately depend on the timing of wafer deliveries during Q4.
The company has seen a shift in the revenue composition during 2022, with significantly increased sales to tier-1 customers in the US and Europe and relatively lower sales to small and medium companies in other regions.
Overall demand for Bluetooth low energy products remains firm, with continued high forecasts from tier-1 customers. Combined with an order backlog of USD 1.1 billion, this provides good coverage for the company's overall 2023 revenue target of USD 1 billion. Wafer supply constraints do however represent an increasing risk factor, as lower demand for proprietary products implies that additional supplies of wafers will be needed for Bluetooth products to pick up the shortfall. Sourcing of material from alternative sources will improve the situation from 2024 onwards.
Nordic continues to invest in accordance with its longerterm ambitions to more than double revenue from 2023 to 2026. These ambitions are leaning on assumptions of economic growth and increasing product demand from both consumers and industrial customers. The company will adapt its investment plans as deemed necessary to reflect any persistent major changes in economic conditions and/or customer behavior.
Newly imposed US export controls related to China are currently not expected to impact neither overall revenue or supply to any significant extent.
Gross profit was 57% both in the third quarter and for the first nine months, with the strong gross margin reflecting a continued tight market situation in the Bluetooth Low Energy market. The company expects the customer and product mix to allow for a gross margin of more than 54% also in the fourth quarter 2022.
The company's medium-term target is to continue to generate gross margins above 50%, allowing for changes in the customer mix and a relatively lower share of proprietary products and higher share of revenue from Cellular IoT.
Jan Frykhammar Birger Steen Anita Huun Board member Chair Board member
Board member Board member, employee Board member
Oslo, October 19, 2022
Inger Berg Ørstavik Svenn-Tore Larsen Endre Holen Board member Chief Executive Officer Board member
Øyvind Birkenes Jon Helge Nistad Annastiina Hintsa
Anja Dekens Gro Fykse Morten Dammen Board member, employee Board member, employee Board member, employee
| Q3 | 01.01-30.09 | Full year | ||||
|---|---|---|---|---|---|---|
| Amounts USD thousand | Note | 2022 | 2021 | 2022 | 2021 | 2021 |
| Total revenue | 4 | 202 087 | 148 491 | 585 360 | 439 314 | 610 528 |
| Cost of materials | -86 350 | -69 675 | -249 460 | -213 033 | -283 415 | |
| Direct project costs | — | -8 | — | -471 | -472 | |
| Gross profit | 115 737 | 78 808 | 335 900 | 225 810 | 326 640 | |
| Payroll expenses | -39 479 | -38 074 | -118 634 | -106 505 | -149 824 | |
| Other operating expenses | -16 123 | -12 425 | -50 470 | -36 936 | -52 098 | |
| EBITDA | 60 135 | 28 308 | 166 796 | 82 369 | 124 718 | |
| Depreciation and amortization | 6 | -11 627 | -9 409 | -32 215 | -27 680 | -37 798 |
| Operating Profit | 48 508 | 18 900 | 134 581 | 54 689 | 86 920 | |
| Net interest income | 782 | -260 | 884 | -730 | -399 | |
| Net foreign exchange gains (losses) | 1 985 | 873 | 6 906 | 782 | 739 | |
| Profit before tax | 51 275 | 19 514 | 142 372 | 54 742 | 87 260 | |
| Income tax expense | -27 113 | -5 929 | -51 469 | -10 407 | -16 089 | |
| Net profit after tax | 24 162 | 13 585 | 90 904 | 44 335 | 71 170 | |
| Earnings per share | ||||||
| Ordinary earning per share (USD) | 0.126 | 0.071 | 0.475 | 0.232 | 0.373 | |
| Fully diluted earning per share (USD) | 0.125 | 0.070 | 0.472 | 0.230 | 0.369 | |
| Weighted average number of shares | ||||||
| Basic | 191 562 | 190 963 | 191 288 | 190 960 | 190 961 | |
| Fully diluted | 192 720 | 192 790 | 192 738 | 193 131 | 193 042 | |
| Net profit after tax | 24 162 | 13 585 | 90 904 | 44 335 | 71 170 | |
| Other comprehensive income not to be reclassified to profit or loss in subsequent periods: |
||||||
| Actuarial gains (losses) on defined benefit plans (before tax) |
-163 | |||||
| Income tax effect | 36 | |||||
| Other comprehensive income that may be reclassified to profit or loss in subsequent periods: |
||||||
| Currency translation differences | -1 202 | -303 | -2 760 | -692 | -1 186 | |
| Total comprehensive income | 22 960 | 13 282 | 88 144 | 43 643 | 69 857 |
| Amounts USD thousand | Note | 30.9.22 | 31.12.21 | 30.9.21 |
|---|---|---|---|---|
| ASSETS | ||||
| Non-current assets | ||||
| Goodwill | 2 265 | 2 386 | 2 385 | |
| Capitalized development expenses | 5/6 | 28 172 | 31 542 | 33 403 |
| Software and other intangible assets | 5/6 | 13 261 | 15 764 | 16 478 |
| Deferred tax assets | 5 074 | 6 331 | 3 810 | |
| Fixed assets | 6 | 32 504 | 33 885 | 33 401 |
| Right-of-use assets | 6 | 17 143 | 18 935 | 22 515 |
| Total non-current assets | 98 419 | 108 844 | 111 991 | |
| Current assets | ||||
| Inventory | 88 681 | 54 943 | 51 896 | |
| Accounts receivable | 183 453 | 141 748 | 131 170 | |
| Current financial assets | 567 | — | 284 | |
| Other current receivables | 13 338 | 11 951 | 10 241 | |
| Cash and cash equivalents | 352 801 | 279 331 | 246 001 | |
| Total current assets | 638 840 | 487 973 | 439 592 | |
| Total assets | 737 259 | 596 817 | 551 583 | |
| EQUITY | ||||
| Share capital | 317 | 317 | 317 | |
| Treasury shares | -2 | -2 | -2 | |
| Share premium | 235 448 | 235 448 | 235 448 | |
| Other equity | 312 615 | 222 443 | 194 354 | |
| Total equity | 548 379 | 458 209 | 430 117 | |
| LIABILITIES | ||||
| Non-current liabilities | ||||
| Pension liability | 485 | 580 | 376 | |
| Non-current lease liabilities | 10 975 | 14 281 | 17 740 | |
| Total non-current liabilities | 11 460 | 14 861 | 18 115 | |
| Current liabilities | ||||
| Accounts payable | 42 250 | 28 392 | 26 151 | |
| Income taxes payable | 57 480 | 17 427 | 11 653 | |
| Public duties | 4 160 | 7 599 | 5 441 | |
| Current lease liabilities | 4 576 | 5 594 | 5 780 | |
| Current financial liabilities | — | 520 | — | |
| Other current liabilities | 68 953 | 64 215 | 54 326 | |
| Total current liabilities | 177 419 | 123 747 | 103 351 | |
| Total liabilities | 188 879 | 138 608 | 121 466 | |
| Total equity and liability | 737 259 | 596 817 | 551 583 |
| Amount in USD thousand | Share capital |
Treasury shares |
Share premium |
Other paid in capital |
Currency translation reserve |
Retained earnings |
Total equity |
|---|---|---|---|---|---|---|---|
| Equity as of 1.1.22 | 317 | -2 | 235 448 | 1 829 | -806 | 221 421 | 458 209 |
| Net profit for the period | 90 904 | 90 904 | |||||
| Other comprehensive income | -2 760 | -2 760 | |||||
| Share based compensation | 6 267 | 6 267 | |||||
| Option exercise | -4 278 | -4 278 | |||||
| RSU and PSU exercise | 1 | -203 | -202 | ||||
| Board compensation (shares) | 0 | 241 | 241 | ||||
| Equity as of 30.9.22 | 317 | -2 | 235 448 | 3 855 | -3 566 | 312 325 | 548 379 |
| Equity as of 1.1.21 | 317 | -2 | 235 448 | 15 980 | 379 | 150 368 | 402 492 |
| Net profit for the period | 44 335 | 44 335 | |||||
| Other comprehensive income | -692 | -692 | |||||
| Share based compensation | 4 804 | 4 804 | |||||
| Option exercise | -20 821 | -20 821 | |||||
| Equity as of 30.9.21 | 317 | -2 | 235 448 | -38 | -313 | 194 703 | 430 117 |
| Q3 | 01.01-30.09 | Full year | ||||
|---|---|---|---|---|---|---|
| Amount in USD thousand | Note | 2022 | 2021 | 2022 | 2021 | 2021 |
| Cash flows from operating activities | ||||||
| Profit before tax | 51 275 | 19 514 | 142 372 | 54 742 | 87 260 | |
| Taxes paid for the period | -2 564 | -269 | -10 195 | -2 257 | -6 332 | |
| Depreciation and amortization | 11 627 | 9 409 | 32 215 | 27 680 | 37 798 | |
| Change in inventories, trade receivables and payables |
-17 250 | -9 198 | -61 441 | -29 680 | -41 043 | |
| Share-based compensation | 2 122 | 1 812 | 6 364 | 4 502 | 6 670 | |
| Movement in pensions | -17 | -310 | -83 | -310 | 134 | |
| Other operations related adjustments | -409 | 4 530 | -2 658 | -1 330 | 11 332 | |
| Net cash flows from operating activities | 44 784 | 25 487 | 106 574 | 53 346 | 95 818 | |
| Cash flows used in investing activities | ||||||
| Capital expenditures (including software) | 6 | -7 191 | -4 017 | -15 704 | -19 035 | -25 050 |
| Capitalized development expenses | 6 | -2 050 | -977 | -5 479 | -5 030 | -5 644 |
| Net cash flows used in investing activities | -9 242 | -4 995 | -21 181 | -24 065 | -30 693 | |
| Cash flows from financing activities | ||||||
| Cash settlement of options contract | — | — | -4 727 | -20 758 | -20 758 | |
| Repayment of lease liabilities | -1 489 | -1 609 | -4 552 | -4 795 | -6 493 | |
| Net cash flows from financing activities | -1 489 | -1 609 | -9 279 | -25 553 | -27 250 | |
| Effects of exchange rate changes on cash and cash equivalents |
-1 102 | -316 | -2 642 | -273 | -1 090 | |
| Net change in cash and cash equivalents | 32 951 | 18 568 | 73 471 | 3 454 | 36 784 | |
| Cash and cash equivalents beginning of period |
319 850 | 227 434 | 279 331 | 242 547 | 242 547 | |
| Cash and cash equivalents at end of period | 352 801 | 246 001 | 352 801 | 246 001 | 279 331 |
The Board of Directors approved the condensed third quarter interim financial statements for the three months ended September 30, 2022 for publication on October 19, 2022.
Nordic Semiconductor is a Norwegian fabless semiconductor company specializing in wireless communication technology that powers the Internet of Things (IoT). Nordic was established in 1983 and has close to 1,400 employees across the globe. The company's award-winning Bluetooth Low Energy solutions pioneered ultra-low power wireless, making it the global market leader. Nordic's technology range was later supplemented by ANT+, Thread and Zigbee, and in 2018 Nordic launched its low power, compact LTE-M/ NB-IoT cellular IoT solutions to extend the penetration of the IoT. The Nordic portfolio was further complemented by Wi-Fi technology in 2021.
Nordic Semiconductor ASA is listed on the Oslo Stock Exchange under the ticker NOD, and is a public limited liability company registered in Norway. The parent company's head office is located at Otto Nielsens veg 12, 7052 Trondheim.
The Group financial statements for Nordic Semiconductor ASA and its wholly owned subsidiaries, together called "The Group" have been prepared in accordance with IAS 34 Interim Financial Statements. The interim financial statements for Q3 2022 do not include all the information required for the full year financial statements and shall be read in conjunction with the Group Annual Accounts for 2021.
The financial statements are presented in thousand USD, unless otherwise stated. As a result of rounding adjustments, the figures in one or more rows or columns included in the financial statements may not add up to the total of that row or column.
In the interim financial statements for 2022, judgments, estimates and assumptions have been applied that may affect the use of accounting principles, book values of assets and liabilities, revenues and expenses. Actual values may differ from these estimates. The major assumptions applied in the interim financial statements for 2022 and the major sources of uncertainty in the statements are similar to those found in the Financial Statements for 2021.
Significant accounting principles are described in the Group Financial Statement for 2021. The group accounts for 2021 were prepared in accordance with International Financial Reporting Standards (IFRS), relevant interpretations of this, as well as additional Norwegian disclosure requirements described in the Norwegian GAAP and the Norwegian Securities Trading Act.
New standards, amendments to standards, and interpretations have been published, but are not effective at December 31, 2022 and have not been applied in preparing these condensed financial statements. The Group intends to adopt these standards, if applicable, when they become effective.
In accordance with IFRS 8, the Group has only one business segment, which is the design and sale of integrated circuits and related solutions.
The Group classifies its revenues into the following technologies: Short range wireless components, long range (cellular IoT), ASIC components and consulting services. Within Wireless components, the Group reports its revenues based on the markets to which its components communicate. These include: Consumer Electronics, Industrial, Healthcare, and Others.
The Group also reports its short range Wireless component revenue by proprietary wireless and Bluetooth protocols.
The Group recognizes intangible assets in the balance sheet if it is likely that the expected future economic benefits attributable to the asset will accrue to the Group and the assets acquisition cost can be measured reliably.
Intangible assets with finite lives are amortized over the useful economic life and assessed for impairment whenever there is an indication that the intangible asset may be impaired. The amortization period and the amortization method for an intangible asset with a finite useful life are reviewed at least at the end of each reporting period. Changes in the expected useful life or the expected pattern of consumption of future economic benefits embodied in the asset are considered to modify the amortization period or method, as appropriate, and are treated as changes in accounting estimates.
| Note 6: Capitalization, depreciation and amortization | |||||||||
|---|---|---|---|---|---|---|---|---|---|
| Q3 | 01.01-30.09 | Full year | |||||||
| Specification of capital expenditures, balance sheet | 2022 | 2021 | 2022 | 2021 | 2021 | ||||
| Capitalized development expenses (payroll expenses) | 1 205 | 847 | 3 434 | 3 571 | 4 121 | ||||
| Capitalized acquired development expenses | 845 | 130 | 2 045 | 1 458 | 1 523 | ||||
| Capital expenditures (including software) | 7 191 | 4 017 | 15 704 | 19 035 | 24 996 | ||||
| Right-of-use assets (non-cash) | 536 | 1 059 | 2 454 | 1 915 | -100 | ||||
| Currency adjustments | -253 | -209 | -589 | -355 | -467 | ||||
| Total | 9 525 | 5 845 | 23 048 | 25 624 | 30 073 | ||||
| Depreciation and amortization | |||||||||
| Capitalized development expenses | 3 799 | 2 048 | 8 863 | 6 191 | 8 666 | ||||
| Software and other intangible assets | 1 680 | 1 705 | 5 128 | 5 391 | 7 238 | ||||
| Fixed assets | 4 723 | 4 192 | 13 978 | 11 755 | 16 018 | ||||
| Right-of-use assets | 1 425 | 1 465 | 4 245 | 4 343 | 5 875 | ||||
| Total | 11 627 | 9 409 | 32 215 | 27 680 | 37 798 |
The Group has a sustainability linked revolving credit facility, which enables it to borrow up to USD 150 million with an interest rate equal to SOFR + margin. The line of credit expires in June 2025, with option to extend. As of September 30, 2022, the Group had not drawn on the credit facility. The security for the credit line is provided by inventory, receivables and operating equipment.
Equity ratio shall not be lower than 40%.
Nordic has a stock option program for employees and management. Please see the annual report for 2021 for information about the program.
| 01.01-30.09 | Full year | |||
|---|---|---|---|---|
| 2022 | 2021 | 2021 | ||
| Outstanding options beginning of period | 545 203 | 2 548 589 | 2 548 589 | |
| Granted | — | — | — | |
| Forfeited | 705 | 26 329 | 28 992 | |
| Exercised (cash settlement due to cap being reached) | 544 498 | 1 974 394 | 1 974 394 | |
| Expired | — | — | — | |
| Outstanding end of period | — | 547 866 | 545 203 |
With reference to the Annual general meeting held on April 28, 2022, Nordic Semiconductor, on May 6, 2022, granted 517 053 RSUs and performance shares to employees, including management. The shares vest over two and three years. The Annual General Meeting of Nordic Semiconductor ASA approved the issue of up to 550 000 Restricted Stock Units (RSUs) and Performance Shares, equivalent to approximately 0.3% of the company's outstanding share capital.
| 01.01-30.09 | Full year | |||
|---|---|---|---|---|
| 2022 | 2021 | 2021 | ||
| Outstanding RSUs beginning of period | 1 058 947 | 690 617 | 690 617 | |
| Granted | 486 677 | 423 383 | 423 383 | |
| Forfeited | 46 802 | 13 244 | 55 053 | |
| Released | 492 780 | — | — | |
| Outstanding end of period | 1 006 042 | 1 100 756 | 1 058 947 |
| 01.01-30.09 | Full year | |||
|---|---|---|---|---|
| 2022 | 2021 | 2021 | ||
| Outstanding performance shares beginning of period | 142 990 | 114 020 | 114 020 | |
| Granted | 30 376 | 28 970 | 28 970 | |
| Forfeited | 7 921 | — | — | |
| Performance adjusted | 55 813 | — | — | |
| Released | 111 626 | — | — | |
| Outstanding end of period | 109 632 | 142 990 | 142 990 |
Nordic is exposed to several risks, including currency risk, interest rate risk, liquidity risk and credit risk. For a detailed description of these risks and how the Group manages these risks, please see the annual report for 2021.
No events have occurred since September 30, 2022 with any significant effect that will impact the evaluation of the submitted accounts.
■ February 7, 2023 - 4th Quarter 2022
The financial information is prepared in accordance with International Financial Reporting Standards (IFRS) as adopted by EU. Additionally, it is management's intent to provide alternative performance measures (APM) that are regularly reviewed by management to enhance the understanding of the Group's performance.
The Group has identified the following APMs used in reporting (amount in USD million): Gross margin. Gross profit divided by Total revenue. Gross margin is presented as it is the main financial KPI to measure the Group's operational performance.
| Q3 | 01.01-30.09 | Full year | |||
|---|---|---|---|---|---|
| 2022 | 2021 | 2022 | 2021 | 2021 | |
| Gross profit | 115.7 | 78.8 | 335.9 | 225.8 | 326.6 |
| Total revenue | 202.1 | 148.5 | 585.4 | 439.3 | 610.5 |
| Gross margin | 57.3% | 53.1% | 57.4% | 51.4% | 53.5% |
EBITDA terms are presented as they are commonly used by investors and financial analysts.
■ EBITDA. Earnings before interest, taxes, depreciation and amortization.
| Q3 | 01.01-30.09 | Full year | |||
|---|---|---|---|---|---|
| 2022 | 2021 | 2022 | 2021 | 2021 | |
| Operating Profit | 48.5 | 18.9 | 134.6 | 54.7 | 86.9 |
| Depreciation and amortization | 11.6 | 9.4 | 32.2 | 27.7 | 37.8 |
| EBITDA | 60.1 | 28.3 | 166.8 | 82.4 | 124.7 |
■ EBITDA margin. EBITDA divided by Total Revenue.
| Q3 | 01.01-30.09 | Full year | |||
|---|---|---|---|---|---|
| 2022 | 2021 | 2022 | 2021 | 2021 | |
| EBITDA | 60.1 | 28.3 | 166.8 | 82.4 | 124.7 |
| Total revenue | 202.1 | 148.5 | 585.4 | 439.3 | 610.5 |
| EBITDA margin | 29.8% | 19.1% | 28.5% | 18.7% | 20.4% |
| Q3 | 01.01-30.09 | Full year | |||
|---|---|---|---|---|---|
| 2022 | 2021 | 2022 | 2021 | 2021 | |
| Payroll expenses | 39.5 | 38.1 | 118.6 | 106.5 | 149.8 |
| Other operating expenses | 16.1 | 12.4 | 50.5 | 36.9 | 52.1 |
| Depreciation and amortization | 11.6 | 9.4 | 32.2 | 27.7 | 37.8 |
| Total operating expenses | 67.2 | 59.9 | 201.3 | 171.1 | 239.7 |
■ Total Operating Expenses. Sum of payroll expenses, other operating expenses, depreciation and amortization.
■ Cash operating Expenses. Total payroll and other operating expenses adjusted for non-cash related items including option expenses, receivable write-off and capitalization of development expenses. Nordic management believes that this measurement best captures the expenses impacting the cash flow of the Group.
| Q3 | 01.01-30.09 | Full year | |||
|---|---|---|---|---|---|
| 2022 | 2021 | 2022 | 2021 | 2021 | |
| Total operating expenses | 67.2 | 59.9 | 201.3 | 171.1 | 239.7 |
| Depreciation and amortization | -11.6 | -9.4 | -32.2 | -27.7 | -37.8 |
| Option expense | -2.3 | -2.4 | -6.4 | -5.0 | -7.6 |
| Capitalized expenses | 2.1 | 1.0 | 5.5 | 5.0 | 5.6 |
| Cash operating expenses | 55.3 | 49.1 | 168.2 | 143.5 | 199.9 |
| Q3 | 01.01-30.09 | Full year | |||
|---|---|---|---|---|---|
| 2022 | 2021 | 2022 | 2021 | 2021 | |
| Reported EBITDA | 60.1 | 28.3 | 166.8 | 82.4 | 124.7 |
| Long range (cellular IoT) EBITDA loss | 8.9 | 9.9 | 29.5 | 27.8 | 38.5 |
| Wi-Fi expense | 3.6 | 3.3 | 9.7 | 8.5 | 12.3 |
| Adjusted EBITDA | 72.7 | 41.5 | 205.9 | 118.7 | 175.6 |
| Total revenue (excluding cellular IoT revenue) | 193.5 | 143.1 | 565.0 | 428.2 | 593.5 |
| Adjusted EBITDA margin | 37.6% | 29.0% | 36.4% | 27.7% | 29.6% |
■ Last twelve months operating expenses excluding depreciation and amortization divided by last twelve months revenue. Nordic's business is seasonal and by dividing last twelve months operating expenses excl. depreciation by last twelve months revenue, management is able to track cost level trends in relation to revenue. As a growth business it is key to keep cost level under control while still growing the business, and this ratio keeps track on that.
| Q3 2022 | Q3 2021 | |
|---|---|---|
| Total operating expenses | 269.9 | 219.5 |
| Depreciation and amortization | -42.3 | -35.9 |
| Operating expenses excluding depreciation and amortization | 227.6 | 183.6 |
| Total revenue LTM | 756.6 | 566.4 |
| LTM opex / LTM revenue | 30.1% | 32.4% |
■ Net working capital divided by last twelve months revenue. Net working capital is a measure of both a company's efficiency and its short-term financial health, and by dividing the measure by last twelve months, seasonal effects are excluded. Nordic management uses this ratio to report on liquidity management to the financial market and internally to track performance.
| Q3 2022 | Q3 2021 | |
|---|---|---|
| Current assets | 638.8 | 439.6 |
| Cash and cash equivalents | -352.8 | -246.0 |
| Current financial assets | -0.6 | -0.3 |
| Current liabilities | -177.4 | -103.4 |
| Current financial liabilities | — | — |
| Current lease liabilities | 4.6 | 5.8 |
| Income taxes payable | 57.5 | 11.7 |
| Net working capital | 170.1 | 107.4 |
| Total revenue LTM | 756.6 | 566.4 |
| NWC / LTM revenue | 22.5% | 19.0% |
Norway | TRONDHEIM
Norway | OSLO Karenlyst Alle 5 0213 Oslo, Norway Phone: +47 22 51 10 50
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