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Presentation on theme: "NORDIC SEMICONDUCTOR ASA Q4 - 2004 PRESENTATION Svenn-Tore Larsen CEO 17th of February, 2005 RECORD REVENUES."— Presentation transcript:


2 - 1 - Nordic Semiconductor MAIN ACHIEVEMENTS IN 2004 Delivered on our strategy Record revenue Record earnings Established as the leader in 2.4GHz ISM band devices Established as a leader in the sports equipment segment and targetting audio Grown share price 362 %

3 - 2 - Nordic Semiconductor AGENDA Financial Update Sales Update Product Division Status

4 - 3 - Nordic Semiconductor KEY FIGURES Revenues Operating profit Earnings before taxes (EBT) Earnings per share (28% tax) Booking Backlog Q4, ,8 -0,8 -5,5 -0,13 53,6 74,4 Q4, ,0 -1,2 -1,4 -0,11 52,1 64,9 Change 108% - 3% 15% ,1 21,7 16,2 0,37 244,5 74, ,3 -18,4 -16,6 -0,40 137,0 64,9 Change 113% - 78% 15%

5 - 4 - Nordic Semiconductor PROFIT AND LOSS ACCOUNT-UPDATE MNOK, % Revenues Components Revenues Consulting Total operating revenue Cost of goods sold Direct project costs Gross Profit Payroll expenses Accrued social security tax (options) Other operating expenses Depreciation Operating Profit (EBIT) EBIT margin (%) Net financial items Profit before taxes (EBT) EBT margin (%) Taxes Profit after taxes Q4, ,7 18,1 74,8 -32,5 -5,2 37,1 -19,1 -8,9 -9,4 -0,5 -0,8 -1% -4,7 -5,5 -7% 1,5 -4,0 Q4, ,0 20,0 36,0 -10,5 -2,9 22,6 -13,0 -3,7 -5,7 -1,4 -1,2 -3% -0,2 -1,4 -4% 0,7 -0, ,1 58,2 110,3 -34,2 -8,8 67,3 -47,3 -3,7 -29,4 -5,3 -18,4 -17% 1,8 -16,6 -15% 4,4 -12,2 Change % 12% 113% 167% 55% 93% 23% 6% -49% 170,1 65,0 235,1 -91,3 -13,6 130,2 -58,0 -16,6 -31,2 -2,7 21,7 9% -5,5 16,2 7% -4,5 11, Change Q4-Q4 254% -9% 108% 210% 79% 64% 47% 65% -64%

6 - 5 - Nordic Semiconductor BALANCE SHEET Non-current assets Inventories Accounts receivables Other receivables Cash and cash equivalents Total assets Shareholders Equity Long term liabilities Current liabilities Sum equity and liabilities MNOKQ ,3 16,4 38,3 8,1 62,9 151,0 102,3 10,4 38,3 151,0 Q ,7 15,3 18,7 2,0 37,1 105,8 79,4 3,6 22,8 105,8 Change in equity- MNOK Equity as of Net income Capital increase Equity as of end of period Q ,4 11,7 11,2 102,3 Q ,6 -12,2 0,0 79,4

7 - 6 - Nordic Semiconductor STRONG CASH FLOW GENERATION 37,9 62,9 CASH MNOK 70% Net cashflow Operational activities17,9-16,0 Investment activities -1,3 -0,5 Financial activities 9,2 0,0 Net change in cash25,8-16,5 Cash beginning of period37,1 53,6 Cash – end of period62,9 37,1 Cash flow overview – end of year

8 - 7 - Nordic Semiconductor STRONG GROWTH IN REVENUE AND ACCUMULATED 33 MNOK IN PROFIT IN 2004 EXCLUDING SOCIAL SECURITY TAX (OPTIONS) Quarterly Operating Income And Earnings MNOK Operating income Earnings before taxes, excluding social security tax (options)

9 - 8 - Nordic Semiconductor HEAVY R&D INVESTMENT IN 4TH QUARTER Operating Expenses MNOK Operating expenses Depreciations Increased spending on R&D in 4th quarter to 9.9 MNOK to release more standard components and increase our competitiveness nRF2401A nRF24Z1 nRF24AP1 Accrued social security tax increased significantly as a result of share price growth Pensions, tax and bonuses to employees and board member reflected in higher than normal operating expenses in 4th quarter R&D Accrued social security tax

10 - 9 - Nordic Semiconductor GROSS MARGIN IN 4TH QUARTER INFLUENCED BY COGS ADJUSTMENTS MNOK Gross Margin Increase throughout year. 4th Quarter reported lower than actual gross margin due to accounting adjustments for Cost of Goods Sold Restating Q1-Q3 results would have led to similar lower margin. Nordic Semiconductor believe in sustainable margins going forward 54,7%

11 Nordic Semiconductor MAIN SHAREHOLDERS/STOCK OPTIONS (31. Dec 2004) Odin Funds9,7% Ferd Invest 6,0% Arne Græe5,8% Alden AS5,2% Tore Engebretsen4,4% Velox AS4,3% Fidelity3,6% Arne Kristian Mæland3,5% Kjell Bråthen2,7% Foreign investors (26 shareholders)12,3% Employees4,6% Board members10,7% Stock options to board members0,7% Stock options to CEO2,6% Stock options to employees8,5% Total number of shareholders: 792

12 Nordic Semiconductor STRONG GROWTH IN SHARE PRICE Share Price Last 12 Month Share Price NOK

13 Nordic Semiconductor DELIVERED ON OUR STRATEGY (I) Summary of 2002 Strategic Plan Nordic, a semiconductor company Limit the portfolio of products Strengthen relationships with industry players Resources will be adjusted accordingly Only invest in core products IP, SoC, and Standard Simplify products and messages Acknowledge our position as a small player and act accordingly Strengthen our partner network Focus forwardActions

14 Nordic Semiconductor DELIVERED ON OUR STRATEGY (II) Summary of 2002 Strategic Plan Market driven product development Market strategy Customer service mindset Strong sales partner network Customers, sales and marketing organization will take the lead in defining new products Productize and sell existing solutions Focus on target customers ( 60%, 40%) World class sales and technical support Build long term customer relationships, (60%, 40%) Enhance current network, (90%, 10%) Continuously motivate and train partners Nordic local presence in key markets ShortcomingsActions

15 Nordic Semiconductor COMPANY ACHIEVEMENTS DURING 2004 Record revenue of 235 MNOK, 113% higher than 2003 Profits excluding social security tax (options) of 33 MNOK Actual revenue was 30% higher than ambitions Sales of standard components 90% higher than ambitions 12.3 Million devices shipped High customer satisfaction, delivered on-time throughout 2004 No existing design-wins lost, business to continue...

16 Nordic Semiconductor AGENDA Financial Update Sales Update Product Division Status

17 Nordic Semiconductor STANDARD COMPONENTS DOMINATE REVENUE Revenue Split (1) SoC Projects excluding components sold (1)

18 Nordic Semiconductor GLOBAL CHIP SALES FLAT THROUGH QUARTER (I) Slight Decline In Capacity Utilization Source:World Semiconductor Trade Statistics / SIA Monthly WW Semiconductor Sales (BUSD)

19 Nordic Semiconductor GLOBAL CHIP SALES FLAT THROUGH QUARTER (II) Semiconductor Market Per Region Source:World Semiconductor Trade Statistics / SIA Monthly WW Semiconductor Sales (BUSD) Asia-Pacific Japan Europe Americas

20 Nordic Semiconductor RECORD REVENUE, SEASONAL BOOKINGS Quarterly Operating Income, Booking And Backlog MNOK

21 Nordic Semiconductor LARGE SEASONAL SALES EFFECT FOR CONSUMER ELECTRONICS Revenues per Quarter MUSD (Mad Catz) MUSD (Logitech)

22 Nordic Semiconductor REFLECTED IN WEAKER SEMICONDUCTOR SALES MUSD (STM) MUSD (Philips) (1) (1) Consumer and Microcontroller market segment

23 Nordic Semiconductor EXPECT TO SEE SEASONAL IMPACT ON Q1 Increased overall business from standard components and consumer customers Seasonal demand from consumer customers in Q1 Booking in 4th quarter will drive revenue in Q1 Expect good booking for current and future quarters In line to meet five year plan in 2005 February 2002 plan

24 Nordic Semiconductor AGENDA Financial Update Sales Update Product Division Status

25 Nordic Semiconductor HIGH DEMAND FOR OUR 2.4GHz PRODUCTS Standard Components Status Quarterly growth: Q to Q ; 23% versus 20% Q2-Q3 Revenue/Booking 48.2 MNOK Revenue 31.2 MNOK Booking Book/Bill: 0.65 High turns on orders due to Christmas build Low Book to Bill ratio is affected by following Seasonal demand for consumer products Introduction of new components, order book opened in January Price negotiations with major customer 216 new evaluation kits sold this quarter, total of 1078 all year Launched the nRF2401A, nRF24Z1, nRF24AP1 and the green versions of nRF24XX family

26 Nordic Semiconductor NEW COST-OPTIMIZED PRODUCT LOWERS END CUSTOMER COST WHILE SUSTAINING MARGINS The nRF2401A is a new component to replace the existing nRF2401 Offers Customers lower cost and improved performance Developed to solidify our leadership in the market and to give our customer a cost advantage

27 Nordic Semiconductor nRF24Z1 THE WORLD FIRST AUDIO STREAMER RELEASED MegaZtream ™ features -Full Quality of Service (QoS) for fault free reception -Connect/reconnect supporting different power down modes -Extensive built in signalling features betweenmaster and slave for control of headset/speaker -Programmable low latency 2-18mS -Control data stream up to 50Kbit/s bi- directional -Extremely few external components Applications -Compact Disk, CD headset -W ireless speakers -W ireless surround speakers -Audio streaming from PC soundcard -to HiFi system -MP3 audio headset -Mini Disk, MD audio headset -Download MP3 files from PC to MP3 player

28 Nordic Semiconductor THE nRF24AP1 WITH BUILT IN ADVANCED PROTOCOL Nordic Semiconductor Launches the nRF24AP1 – an Ultra-low Power 2.4GHz Transceiver Embedded with Dynastream’s ANT Protocol for Wireless Personal Area Networks (PAN) The nRF24AP1 embeds Dynastream Innovations Inc.’s production-proven ANT wireless protocol with Nordic’s 2.4GHz RF transceiver. The nRF24AP1 is a complete drop-in, wireless personal area network (PAN) solution that eliminates the need for 3rd party protocol stacks The nRF24AP1 targets product applications in the sport/recreation, medical, industrial and other emerging wireless application marketplaces.

29 Nordic Semiconductor STABLE ACTIVITY OF CUSTOMER PROJECTS SoC Project Status Full utilization of project organization Large proportion of engineers devoted to new Standard Components One new project initiated Three projects taped out Component deliveries expected in 2005

30 Nordic Semiconductor GOOD QUARTER FOR SOC COMPONENTS SoC Components Status Quarterly growth: Q to Q ; 27% Revenue/Booking 8.5 MNOK Revenue 13.7 MNOK Booking Book/Bill: 1.61 New components released for production Good component booking for delivery in coming quarters

31 Nordic Semiconductor GOOD QUARTER FOR DATA CONVERTER IP Quarterly growth: Q to Q ; -26% Revenue/Booking 6.2 MNOK Revenue 7.8 MNOK Booking Book/Bill: 1.26 Strong bookings due to sales of new product families

32 Nordic Semiconductor BEYOND EXPECTATIONS (I) Grew revenue from 110 to 235 MNOK Strong positive cash flow during the year Adjusted for option tax; 32.8 MNOK in operating profits Our focus area standard components grew 393 % from 2003 Strong base of customers in production IP business stronger than ever with revenue growth of 40 %. High customer satisfaction rate

33 Nordic Semiconductor BEYOND EXPECTATIONS (II) Nordic established as world leader in 2.4GHz ISM band supplier for game pads Strong presence in Mouse and Keyboard segment World class product portfolio Aggressive R&D efforts. 19% of revenue invested in new leading products, opening up for next business triggers 2.4GHz ISM band Audio 2.4GHz ISM band Sport

34 Nordic Semiconductor OUTLOOK FOR 2005 Will continue to expand standard components business into new segments and new customers Deepen relationships with existing customer base Well positioned product portfolio to meet competitive offerings Expect to see major push into intelligent sports equipment Expansion of existing business in the wireless keyboard and mouse market Revenue expectations between 380 and 450MNOK

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