Quarterly Presentation Q4 2020 February 4, 2021

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This presentation was prepared in connection with the Q4 results released on February 4, 2021. 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.

Accelerating growth through 2020

Strong demand across all end-user markets

Revenue		Gross margin
USDm 127.1			52.7%
+52.9% y-o-y	+6.5% q-o-q	+1.1%p y-o-y	-1.4%p q-o-q

Bluetooth revenue USD 97.6m (+49%)
Proprietary revenue USD 25.3m (+55%)
Cellular IoT revenue USD 2.7m
Gross margin of 52.7%
Continued high volumes of advanced high-margin SoCs

Order backlog at new and higher level

Backlog (USDm)

Order backlog of USD 492m, +361% y-o-y
Bluetooth Low Energy and multiprotocol solutions account for 84%
Shift in customer mix with several major tier-1s placing high-volume orders
Technology shifts and accelerated technology adoption for tier-1s
Order inflow boosted by customers placing early orders
Order backlog stretching out through 2021

Fortifying the broad market leadership

Continued high certification market share

Developer kit shipments continue to grow

Kit shipments

Total kit shipments +9% in 2020

High installed base of reusable kits

Shipped >50K kits in H2 2020

Significant contribution from nRF52840 development kits

Cellular IoT accounting for ~12% of kit shipments

New product launches in Q4

Multiprotocol SoCs enabling smart homes

Eve Systems launching the first smart home products to take advantage of Apple HomeKit's new Thread functionality
New 'Eve Thermo' is powered by Nordic's nRF52840 SoC, which supports both Bluetooth 5, Thread and Zigbee

Nordic inside COVID-19 home tester

Nordic's nRF52810 Bluetooth LE SoC powers new COVID-19 Home Test kit from Ellume
Authorized by the FDA under an emergency use authorization, easy-to-use 15 minutes test for SARS-CoV-2 infection
Automatically transmitting results via Smartphone to secure cloud connection
Available over-the-counter
Ellume expects demand in tens of millions

nRF5340 in volume production Taking IoT to the next level

"Laird sees Nordic as the premier Bluetooth LE SoC vendor and the nRF5340 is pushing that envelope even further,"

- Jonathan Kaye, Laird Connectivity"

The world's first dual Arm Cortex-M33 wireless SoC
High performance high efficiency no trade-offs
Advanced features and security required for highly complex IoT applications
LE Audio
Advanced wearables
Professional lighting
Chosen by Laird Connectivity for new module for demanding IoT applications

Cellular IoT progressing

Regulatory certifications overview for nRF9160:

Carrier certifications for AT&T Bell Canada KDDI Softbank LGU+

Strong APAC carrier coverage with three new major certifications in Q4:
KDDI (Japan)
Softbank (Japan)
LGU+ (S. Korea)
New IoT solution designs and partners help scale our business
Introduced unique cellular power measurement tools with the Power Profiler Kit II

Nordic expands global cellular IoT coverage Partnering with Arkessa to provide global LTE-M/NB-IoT service

"Arkessa is delighted to partner with Nordic to give their customers access to our global footprints for both NB-IoT and LTE-M - Andrew Orrock, Arkessa

Leader in virtual SIM (eSim/eUICC)
Eliminates need for Nordic customers to negotiate IoT data contracts with individual carriers
Extensive European and global LTE-M/NB-IoT coverage
Arkessa will offer technical support and access for connectivity testing and evaluation

nRF9160 in Ericsson/Sigma reference design Enabling rapid IoT development for industrial customers

Ericsson & Sigma Connectivity nRF9160 + nRF52840 'ARDESCO' reference design

Ericsson and Sigma chose nRF9160 and nRF52840 for joint 'ARDESCO' reference design
Integrates accelerometer and temperature, humidity, air quality, air pressure and light sensors
Suitable for broad range of cellular IoT product verticals, including logistics, environmental monitoring, metering and asset tracking
Supports Ericsson's 'IoT Accelerator' suite, providing Cloud-based connectivity and device management out-of-the-box

nRF9160 in new modules & turn-key products Enabling rapid IoT development for industrial customers

Avnet Asia integrating nRF9160 and nRF52840 for the smallest available module combining LTE-M/NB-IoT, Bluetooth and GPS
Braveridge in Japan using nRF9160 for new 'Sonicboard' development kit
Dutch SODAQ using nRF9160 in turn-key solutions for miniaturized asset trackers, including solar-powered battery-less version
Light sensor, accelerometer, temperature sensor and status LEDs with GPS, Wi-Fi and cellular -powered by 0.5W solar panel

Wi-Fi to complete the connectivity portfolio

Wi-Fi development team with 80 people + IP tech assets/patents across Wi-Fi 4/5/6
Nordic positioned to create first platform unifying low-power Bluetooth, Wi-Fi and cellular IoT
Significant expansion of the addressable market

Securing the 'missing link' in the connectivity portfolio

Financials Pål Elstad, CFO

Revenue growth of 53% in Q4

Growth in all technologies in Q4…
Bluetooth accounting for 77% total revenue, after increasing 49% y-o-y to USD 97.6 million
Proprietary +55% to USD 25.3 million
Cellular IoT USD 2.7 million (USD 0.2 million)
…and for the full year 2020
Bluetooth +43% to USD 316.0 million
Proprietary +27% to USD 76.1 million
Cellular IoT +524% to USD 6.5 million

Revenue growth in all markets

Group	Consumer Electronics	Wearables	Building/ Retail	Healthcare	Others
USDm	USDm	USDm	USDm	USDm	USDm
127.1	53.7	18.1	27.0	10.6	13.5
+52.9%	+59.0%	+12.3%	+62.3%	+113.2%	+30.3%
+6.5%	-3.0%	-6.7%	+17.8%	+36.0%	+26.6%
y-o-y	y-o-y	y-o-y	y-o-y	y-o-y	y-o-y
q-o-q	q-o-q	q-o-q	q-o-q	q-o-q	q-o-q

Year-on-year growth across the markets
Strong but seasonally slower for Consumer Electronics and Wearables
Building/Retail, Healthcare and modules securing growth from Q3 to Q4

Gross margin remaining at high level

Gross margin (%)

Gross margin at 52.7%

Continued favorable product mix, with high share of complex high value SoCs
Decline from reported Q3-margin, as Q3 was supported by USD 2 million (1.7 pp) in reversal of cost of goods from the previous quarter
Gross margin expected at 50-51 % in Q1 2021
Reiterating medium-term gross margin range of 48%-50% for the short-range business

Operating model performance Q4 2020

Gross margin 52.7%		Q4 2020	Q4 2019
R&D short	Revenue	USD 127.1m	USD 83.1m	+52.9%	Growth in all technologies and markets
range 13.7% R&D	Gross margin	52.7% USD 67.0m	51.6% USD 42.9m	+1.1pp	Product mix and unit costs
cellular IoT 7.9%	R&D short-range	13.7% USD 17.4m	14.4% USD 12.0m	-0.7pp	Continued investment growth but high operational leverage
SG&A 10.0%	R&D cellular IoT	7.9% USD 10.1m	9.1% USD 7.6m	-1.2pp	Continued investment growth but high operational leverage
EBITDA 21.1%	SG&A	10.0% USD 12.7m	13.4% USD 11.1m	-3.4pp	Continued growth in no. of employees but high operation leverage
	EBITDA	21.1% USD 26.9m	14.7% USD 12.2m	+6.5pp	High operational leverage, solid cost control

Cash operating expenses

Cash cost increase of 23%, mainly due to increased number of employees and bonus accruals

Salary:

Number of employees increased by 17% to 897** over the past last 12 months

Other Opex:

Varies with pace of product introductions
Sharp focus on cost containment
Reduced travelling in 2020

Cash OPEX* (USDm)

Other Opex Salary

• ** Excluding 81 employees included from Wi-Fi business acquired December 31, 2020 21

^• Operating expenses, excl. capitalized R&D, depreciation and amortization and option expenses

Year-on-year EBITDA improvement

EBITDA (USDm) and margin (%), quarterly EBITDA (USDm) and margin (%), LTM

Capex development

Capex (USDm)

Capex of USD 5.4 million in Q4, mainly delivery of new manufacturing testers
2020 Capex intensity of 4% of revenue, down from 7% in 2019
Expect 2021 Capex intensity level similar to 2020 level

Continued strong cash position

Cash position and Cash Flow Q4 2020 (USDm)

Operating cash flow of USD 51.0m

NWC/Revenue LTM at 19.4%, compared to 24.3% at end of 2019

Continued disciplined cash strategy

Tight cash management and optimized cash conversion

Strengthened cash balance

Cash balance at ~2.7x last 12 months R&Dspend, up from ~1.4x at end of 2019

2020 Cashflow

USD 40m generated in 2020 from operations, excluding capex/intangibles

Summary and Outlook Svenn-Tore Larsen, CEO

Nordic is on a long-lasting growth journey

Proprietary/ASICs Bluetooth LE

A strong and resilient operating model

engagement model

Bluetooth acceleration + proprietary revival

Bluetooth +43% in 2020
Well above the indicated mid-term 20%-30% growth range
CAGR of 19%-29% over the past 5-6 years*
Proprietary revenue +27% in 2020
Solid demand from major customers
Significantly better than expected

Bluetooth LE

Proprietary/ASICs

Demand shift supports long-term growth plan