Nordic Semiconductor

Investor Presentation • Aug 13, 2025

Quarterly presentation

Q2 2025

August 13, 2025 Copyright © 2025 Nordic Semiconductor. All rights reserved

Disclaimer

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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.

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This presentation was prepared in connection with the Q2 results released on August 13, 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

Revenue growth and margin improvement

Q2 2025

• § Revenue of USD 164 million
• § Gross margin of 51%
• § EBITDA USD 21 million (13%)

Q3 2025 guidance

• § Revenue of USD 165 185 million
• § Gross margin expected at ~50%

Quarterly revenue development (USDm)

Revenue recovery

• § Nordic has capitalized on a gradual market recovery over the past year
• § Persisting macroeconomic uncertainty, with trade policy changes and tariffs potentially affecting end-user demand
• § Continuing the development of a diversified and resilient supply chain
• § Maintaining close collaboration with our customers

Revenue recovery (USDm, last 12 months rolling)

Revenue growth for both top-10 and broad market

• § Strong relationships and close collaboration with key customers
• § Regaining traction in the broad market

Clear design win leader – still based on nRF52 32% share of certifications last 12 months, 4x of the runner up

New product launches – great customer traction High design activity

Strong customer design pipeline confirming market leading nRF54L, nRF54H, nRF9151 and new PMIC offering

Multiple new innovative products to be launched within the nRF54 Series in 2H 2025

Limited 2025 revenue effect, accelerating growth from 2026

Product launch: nPM1304 PMIC Adding to the award-winning nPM1300

• § Designed for next-generation, space-constrained applications with ultra-small batteries
• § Industry's first ultra-low power, precision fuel gauging for these battery sizes, enabling accurate remaining battery life estimation
• § Complements Nordic's growing PMIC portfolio for a wide range of applications and use-cases

Application examples

Personal health monitoring

Consumer applications

Industrial sensors

Recognized by TIME magazine and Statista

Named one of the "World's Most Sustainable Companies"

Nordic climbs 200 rankings to 121st place in TIME magazine's "World's Most Sustainable Companies" for 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

Gross margin

• § Improvement reflecting customer and product mix
• § Expecting gross margin around 50% also in Q3 2025
• § Reiterating long-term ambition to maintain gross margin >50%

Operating model performance Q2 2025

Gross Margin 50.7%			Q2 2025	Q2 2024
R&D Short-range	14.6%	Revenue	USD 164.1 m	USD 127.9 m	+28.2 %	Improved demand both from key customers and broad market
		Gross margin	50.7%	42.0%	+8.7pp	Gross margins on long-term target, Q2'24 affected by write-down
			USD 83.2 m	USD 53.8 m
R&D Long-range	5.8%	R&D	14.6%	18.5%	-3.9pp	Cost focus and higher capitalization
R&D Wi-Fi	2.1%	Short-range	USD 24.0 m	USD 23.7 m
SG&A	15.5%	R&D	5.8%	9.5%	-3.7pp	Effects of reprioritizations
		Long-range	USD 9.5 m	USD 12.1 m
		R&D Wi-Fi	2.1%	3.4%	-1.3pp	Costs managed closely
			USD 3.5 m	USD 4.4 m
EBITDA		SG&A	15.5%	16.3%	-0.8pp	High M&A activity and currency effects increasing cost
	12.7%		USD 25.4 m	USD 20.8 m
		EBITDA	12.7%	-5.7%	+18.4pp	Moving towards target operating model
			USD 20.8m	USD -7.2m
	AA CAAF

Cash cost development

• § Flat cash cost y-o-y with cost focus mitigating inflationary and currency pressure
• § Headcount down 3% vs. Q4 2024, 5% vs. Q2 2024
• § Currency set to affect y-o-y comparisons also going forward
• § Acquisitions increasing quarterly OPEX base by ~USD 4 million (from Q3 2025)
• § Continuous cost focus to improve margins

Cash OPEX (USDm)

Capex intensity

• § Temporary uptick in capex in Q2 driven primarily by supply chain capacity expansions, along with IT infrastructure investments
• § Capex intensity last 12 months at 2.8% of revenue

Capex (USDm)

Strong cash flow

• § Solid cash generation from operations with EBITDA of USD 16.6m including capitalized development costs
• § NWC/Revenue (LTM) reduced to 23%, driven by low inventory and high collections
• § Not including the acquisitions made after the quarter, which were partially financed by a 12-month bridge loan

Cash position and cash flow Q2 2025 (USDm)

Closing remarks

Vegard Wollan, CEO

Copyright © 2025 Nordic Semiconductor. All rights reserved

Strategic acquisitions

A complete solutions provider– from device to cloud Expanding the strategic scope in alignment with our long-term ambitions

• § Executed two strategic acquisitions accelerating Nordic's transition from a HW company to a complete solution partner
• § Nordic the first semiconductor company to combine best-in-class hardware, software, edge AI and cloud services
• § Building, deploying and upgrading connected products to meet evolving requirements and increasing software complexity

Market leaderships across three fundamental pillars

Q3 2025 guidance

• § Customer orders and forecasts indicate continued year-on-year revenue growth in Q3
• § Gross margin expected to remain around ~50% in Q3