Nordic Semiconductor

Investor Presentation • Oct 22, 2019

Short-range update

Director of Product Management, Kjetil Holstad

Nordic pioneered short-range low power IoT

Bluetooth Low Energy driving short-range IoT

Total Bluetooth Low Energy shipments (million units)

Source: IHS Markit | Technology, now part of Informa Tech, Wireless IoT Connectivity Intelligence Service, 2019

~1 billion

units to be shipped in 2021

Have surpassed all other short-range low-power technologies

~26%

unit CAGR 2019-2023

• Continued growth in consumer segments
• Accelerated uptake in non-consumer segments

Opportunity for expansion in 802.15.4

> 250 million

units to be shipped in 2020*

• Basis for Thread, ZigBee and Proprietary protocols built on top of 802.15.4
• Smart Home and Industrial/Enterprise Automation

Multi-protocol Value add opportunity

• Bluetooth/Thread/Zigbee combo ICs
• Higher end SoCs
• Innovation and value in Software

Locks & security systems Switches, plugs and lights Household appliances, HVAC, Cleaning, cooking Buttons Sensors

Hubs/speakers/remotes/ voice assistants

Smart Home gateways

App stores

Extremely diverse market space

• Many market verticals with complimentary requirements
• Next 5Y; healthy mix of existing large markets and new high-growth markets

Opportunity for value add and differentiation

Nordic Connectivity stacks Nordic libraries and drivers Open Thread System modules MCU Boot MOU Manager OS and middleware Nordic Application frameworks & reference designs Platform that scale at customers Rapid, targeted expansion Identifying commonalities General purpose vs specifics Framework on top of IC platform Portability across ICs ICs Software Markets First IC Lower cost ICs Higher value ICs ASP Connectivity Embedded processing Security Software Increase value per design

Scalability across technologies, markets and customers

• Investments in platforms
• Maximize R&D value

nRF52 Series – a winning family

Total Bluetooth LE listings January-September 2019

• Market proven
  • Unique market insight through our customer base and design win share
• nRF52 Series allow us to tactically move in the right direction(s)
• Further expansion through new software

nRF52 Series – a winning family

• Platform that will continue to grow over the coming years
• From low-end to high-end and still expanding through active customer engagements
• Recent additions to nRF52 Series has strengthened ASP for our Bluetooth LE

Value

Broad product range maximizes value

Introducing nRF52833 SoC

In the higher end of the series

• Extended temperature range up to 105oC
• Bluetooth 5.1, Thread and ZigBee multi-protocol
• Same architecture and software as the rest of the nRF52 Series for ease of adoption

nRF53 – The new flagship SoC Coming soon

Builds on top of nRF52 Series Pushing boundaries upwards

• Significantly lower power
• Significant performance increase
• Security advancements

Further aligned with nRF91 Series Architecture and Software platform

• Large overlapping customer-base for shortand long-range, increases scalability
• Accelerated uptake in non-consumer segment

Significant ongoing software investment

Unifying

• Support for all Nordic ICs (>nRF52 Series)
• Support for all Nordic wireless technologies (Bluetooth LE, Thread, ZigBee, LTE, NB-IOT)
• Complete solution from board to cloud

Modern

• RTOS integration for complex designs
• Open source when and where it makes sense
• Modern development and distribution model

Scalable

• For low and high complexity applications
• For single core and multi-core SoCs

nRF52 made stronger through partnerships

Direction Finding Mesh Cloud Locationing

Quuppa RTLS platform supports nRF52 Series

Wirepas mesh solution runs on nRF52 Series

nRF52840 qualified for Amazon FreeRTOS platform

Tile integration in nRF52 SDK from Nordic

Audio partnership with Cirrus Logic

Strong established partnership Combining excellence of both companies

• Nordic a world leader in low-power RF and Bluetooth
• Cirrus Logic a world leader in audio and voice processing ICs

Demonstration vehicle

Full end-to-end audio over Bluetooth Low Energy

• Industry leading ultra low power consumption
• Active customer evaluations

• 1. Significant opportunities in the short-range wireless landscape
• 1. Continued investments in nRF52 and nRF53 Series to accelerate growth
• 1. Expanding our reach with strategic partnerships