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Nordic Semiconductor
Investor Presentation • Apr 29, 2025
3680_rns_2025-04-29_7d05f6fb-0c40-4f8b-87e0-49464126d1da.pdf
Investor Presentation
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Quarterly presentation
Q1 2025
April 29, 2025 Copyright © 2025 Nordic Semiconductor. All rights reserved
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.
This presentation does not constitute an offering of securities or otherwise constitute an invitation or inducement to any person to underwrite, subscribe for or otherwise acquire securities in Nordic Semiconductor ASA (The Company). The release, publication or distribution of this presentation in certain jurisdictions may be restricted by law, and therefore persons in such jurisdictions into which this presentation is released, published or distributed should inform themselves about, and observe, such restrictions.
This presentation includes and is based, inter alia, on forward-looking information and contains statements regarding the future in connection with The Company's growth initiatives, profit figures, outlook, strategies and objectives. All forward-looking information and statements in this presentation are based on current expectations, estimates and projections about global economic conditions, the economic conditions of the regions and industries that are major markets for The Company. These expectations, estimates and projections are generally identifiable by statements containing words such as "expects", "believes", "estimates" or similar expressions.
Important factors may lead to actual profits, results and developments deviating substantially from what has been expressed or implied in such statements. Although The Company believes that its expectations and the presentation are based upon reasonable assumptions, it can give no assurance that those expectations will be achieved or that the actual results will be as set out in the presentation.
The Company is making no representation or warranty, expressed or implied, as to the accuracy, reliability or completeness of the presentation, and neither The Company nor any of its directors, officers or employees will have any liability to you or any other persons resulting from your use.
This presentation was prepared in connection with the Q1 results released on April 29, 2025. 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
Strong performance in Q1
Q1 2025
- § Revenue of USD 155 million
- ¡ High growth from a Q1'24 affected by significant inventory adjustments
- ¡ Healthy underlying demand
- ¡ Positively impacted by orders from individual large customers
- ¡ Gross margin of 50%
- § EBITDA USD 15 million
Q2 2025 guidance
- § Revenue of USD 145 165 million
- ¡ Increased macro uncertainty
- § Gross margin expected to remain at ~50%
Quarterly revenue development (USDm)
Navigating macroeconomic uncertainty
- § Nordic has been well positioned to capitalize on the gradual market recovery over the past year
- § Trade policy changes affecting the complex semiconductor value chains
- § Continuing to develop a diversified and resilient supply chain, maintaining close collaboration with our customers
- § Too early to conclude on potential indirect effects
Top-10 share stabilizing
- § Solid revenue increases with both top-10 and broad market customers
- § Maintained strong relationships with key customers
- § High priority to regain traction in the broad market
Remaining the clear design win leader 34% share certifications, 4x of the runner up
nRF54 Series gains market traction Engagement from key and broad market customers
High design activity with both existing and new customers
On track with innovative roadmap expanding our addressable market
Limited 2025 revenue effect, accelerating growth from 2026
nRF9151 expanding to satellite communication Targeting remote infrastructure and globally roaming products
- § Software update will enable nRF9151 to operate on both cellular networks and nonterrestrial networks, or combination
- § Supporting both LEO (Low Earth Orbit) and GEO (Geostationary satellites)
- § Customer support starting second half of 2025
Strategic partnerships Unlocking global IoT connectivity with nRF9151
| Deutsche Telecom (DT) | Skylo |
|---|---|
| Seamless connectivity with nRF9151 across DT´s extensive network and roaming partners |
nRF9151 certified for commercial satellite via Skylo NTN network |
| Keysight | NR+ Interest Group |
10
Product launch: nPM2100 PMIC For end-products with non-rechargeable batteries
- § Enabling ultra-low power Bluetooth LE applications
- § Optimized for power efficiency and system performance
- § Expanding target market to meet the demand for primary/nonrechargeable cell batteries
Application examples
Personal health monitoring
Consumer applications
Industrial sensors Other
Power Product category winner of the Electronics Excellence Awards, Embedded World, 2025
Financials
Pål Elstad, CFO
Copyright © 2025 Nordic Semiconductor. All rights reserved
Revenue by technology
Strong momentum across key markets
* Note: Gross margin for Q2 2024 excludes a USD 10 million writedown of inventory in Long-range
Copyright © 2025 Nordic Semiconductor. All rights reserved 15
Gross margin
- § Stable underlying development
- § Year-on-year improvement reflecting customer and product mix, and low revenue in Q1'24
- § Expecting gross margin around 50% also in Q2 2025
- § Reiterating long-term ambition to maintain gross margin >50%
Operating model performance Q1 2025
| Gross Margin 49.5% | Q1 2025 | Q1 2024 | |||||
|---|---|---|---|---|---|---|---|
| 16.5% R&D Short-range |
Revenue | USD 155.1 m |
USD 74.498.4 |
+108.1 % | Gradual recovery, partly driven by orders from large customers |
||
| Gross | 49.5% | 48.0% | |||||
| margin | USD 76.8 m | USD 35.8 m | +1.5pp | Close to target Gross Margins | |||
| R&D | 16.5% | 31.8% | Cost focus offset by less | ||||
| R&D Long-range | 6.5% | Short-range | USD 25.6 m | USD 23.7 m | -15.3pp | capitalization | |
| R&D Wi-Fi 2.3% |
R&D | 6.5% | 15.7% | Effects of reprioritizations | |||
| Long-range | USD 10.1 m | USD 11.7 m | -9.2pp | ||||
| R&D Wi-Fi | 2.3% | 5.4% | Costs managed closely | ||||
| SG&A | 14.7% | USD 3.5 m | USD 4.0 m | -3.1pp | |||
| SG&A | 14.7% | 25.9% | -11.2pp | High activity related to product | |||
| USD 22.8 m | USD 19.3 m | launches | |||||
| EBITDA | 9.5% | EBITDA | 9.5% | -30.7% | +40.2pp | Moving toward target operating model |
|
| USD 14.7m | USD -72.8m | ||||||
| 01 วันวิท |
Cash cost development
- § Flat cash cost y-o-y with cost focus mitigating inflationary pressures
- § Headcount down 4% vs. Q4 2024, 6% vs. Q1 2024
- § Continuous focus on spending to improve margins
Cash OPEX (USDm)
Capex intensity remains low
Capex (USDm)
Focus on cash spending
- § Operating cash flow of USD 34.9m in Q1
- § NWC/Revenue (LTM) reduced to 26%, driven by low inventory and high collections
- § Capex spending remain tightly managed
- § Currency translation relates to the natural cash hedge of the bond
- § Share buyback completed in Q1
- § Other items reflects mainly payout of variable pay
Cash position and cash flow Q1 2025 (USDm)
Summary and outlook
Vegard Wollan, CEO
Copyright © 2025 Nordic Semiconductor. All rights reserved
On track with product portfolio renewal
| Short-range | Launched the first nRF54 products late 2024 |
|---|---|
| Established | Launching 2-4 nRF54 product families on 22nm per year |
| Long-range | Launched the new nRF9151 in second half of 2024 |
| Scale-up | New nRF92 on 22nm in 2026 |
| Wi-Fi Early-stage |
New nRF71 on 22nm in 2026 |
| PMIC | Launched the new nPM2100 early 2025 |
| Early-stage | Launching 2-3 new products per year |
Committed to our long-term ambitions
Group level ambitions Deliver average annual revenue growth above 20% through the decade
Moving towards target operating model profitability of ~25% EBITDA within five years
Q2 2025 guidance Y/Y revenue growth amidst higher uncertainty
| Revenue | Gross margin | ||
|---|---|---|---|
| USDm 145-165m |
~50% | ||
| +13% to +29% -6% to +6% y-o-y q-o-q |
- § Order inflow and customer forecasting indicates continued year-on-year revenue growth in Q2
- § Gross margin expected to remain around ~50% in Q2
April 29, 2025