NORDIC VLSI ASA Q4 - 2003 PRESENTATION Svenn-Tore Larsen CEO 12. Februar, 2004.

NORDIC VLSI ASA

Q4 - 2003 PRESENTATION

Svenn-Tore LarsenCEO

12. Februar, 2004

- 2 -Investor Presentation 12-02-2004

AGENDA

Financial Update

Sales Update

Product Division Status


MAIN SHAREHOLDERS/STOCK OPTIONS

Odin-fondene 9,3%

Delphi-fondene (1) 8,0%

Nordea-fondene 7,7%

Ferd Invest 6,7%

Inak AS 6,6%

Firstnordic-fondene 5,1%

Edvin Austbø 5,0%

Arne Græe 4,9%

Velox 4,3%

Employees 5,5%

Board members 9,1%

Stock options to board members 2,6%

Stock options to CEO 2,6%

Stock options to employees 11,0%

(1): Still reporting Delphi and Storebrand separately


PROFIT AND LOSS ACCOUNT

MNOK

COMPONENTSStd. ComponentsSoC ComponentsCONSULTINGSoC ProjectsData ConverterOther operating revenue

Total operating revenue

Cost of goods soldDirect project costsPersonnel expensesDepreciationOther operating expenses

EBIT

Net financial items

EBT

Q4, 2003

9,86,2

13,86,2

0,0

36,0

10,52,9

13,01.15,0

2,5

-0,2

2,3

Q4, 2002

4,6

6,7

7,91,50.0

20,7

7,31,6

13,61,87,6

-11,2

0,8

-10,4

2003

16,2

24,5

41,59,00.1

91,3

22,517,652.4

5,928.0

-35,1

2,0

-33,0

Change Q4-Q4

113%-7%

75% x 4,1

-

74%

11%81%-4%

-39%-34%

-

-

28,0 24,1

39,518,5

0.0

110,1

34,28,8

47,35,0

29,5

-14,7

1,8

-12,9

2002


BALANCE SHEET

Fixed and long term assets

Inventories

Accounts receivables

Other receivables

Cash and cash equivalents

Total assets

Equity

Long term liabilities

Current liabilities

Sum equity and liabilities

MNOK 2003

32,7

15,3

18,7

2,0

37,1

105,8

83,1

2,0

20,7

105,8

2002

32.8

11.6

13.2

4.8

53.6

116.0

91.6

2.0

22.4

116.0

2001

21.5

7.7

16.5

32.1

80.2

133.8

115.8

2.0

16.0

133.8


-20

-10

0

10

20

30

40

Q4-01 Q1-02 Q2-02 Q3-02 Q4-02 Q1-03 Q2-03 Q3-03 Q4-03

STRONG GROWTH IN REVENUE AND POSITIVE RESULTQuarterly Operating Income And Earnings

MNOK

Operating income

Earnings before taxes


AGENDA

Financial Update

Sales Update



11.7 11.9 12.3 12.5 12.8 12.5 12.3 11.8 12.1 12.5 12.5 12.913.4

14.515.4

16.116.1

12.3

0

5

10

15

20

Jul

AugSep Oct

NovDes

Jan

Feb Mar

AprilM

ayJu

neJu

ly

AugSep Oct

NovDes

OVERALL MARKET GROWTH STRONGERSemiconductor Market

Source: World Semiconductor Trade Statistics

Monthly WW Semiconductor Sales(BUSD)


0

10

20

30

40

50

60

70

Q4-01 Q1-02 Q2-02 Q3-02 Q4-02 Q1-03 Q2-03 Q3-03 Q4-03

Revenue Booking Backlog

RECORD REVENUE, BOOKING AND BACKLOGQuarterly Operating Income, Booking And Backlog

MNOK


18 %26 %

29 %

27 %25 %14 %

10 %

16 %

68 %45 %

33 %

6 %0 %

20 %

40 %

60 %

80 %

100 %

120 %

2001 2002 2003

SoC Projects

IP-Data Con

SoC Components

Standard Components

COMPONENTS AND IP BUSINESS OUR BACKBONERevenue Split 2001-2003

(1) SoC Projects excluding components sold

(1)


FOURTH QUARTER POSITIVE RESULT AS PROMISED Summary of Financial Status

Strong quarter with record revenues and solid bottom line

• Record revenue of 36 MNOK

• Quarter to quarter growth of 25%

• 2.5 MNOK in profits, 7% of turnover

With record turnover, new booking result in record backlog

• Backlog is 65 MNOK, up 25% over last quarter

• Book/Bill : 1.45

• Book/Bill for standard components : 1.88

There is uncertainty whether Nordic shall expense the tax liability for the employee stock option program. The employees themselves are individually liable for all taxes related to their stock options. Nevertheless, there is a possibility that Nordic must expense these taxes. This will not have a cash flow impact on our business. Nordic VLSI is currently awaiting feedback from Oslo Stock Exchange. Possible impact will be 3.7MNOK


AGENDA

Financial Update

Sales Update



CONTINOUS GROWTH IN RF COMPONENTS Standard Components Status

Continued strong quarterly growth: Q3-Q4 growth; 34%

Historical high booking

• 18.4MNOK Booking

• Book/Bill: 1.88

Accelerated design-in activity for new products

Fast rampup of new products

• 35% of revenue coming from new products available since April

• Beat earlier expectations,“Revenue expectations from Q1/Q2 -04”: Investor pres. Oct. 2003

New development on track

• Launched nRF9E5 and nRF905 first week of February

• Working with major consumer companies for next generation devices

Launching new “Green” packaging technology to satisfy demands from leading consumer customers


0

1

2

3

4

5

6

7

8

9

10

Q2 Q3 Q4

BiCMOS Products

nRF24XX

OUR NEW 2.4GHZ PRODUCTS ARE CONTRIBUTING FASTRevenue Split Q2-Q4 2003

Revenue from Standard Components (MNOK)


MARKETS MOST COMPLETE LONG RANGE COMPONENTS LAUNCHED

Introducing the nRF9E5 and the nRF905

World Leading Features

System-on-Chip 0.18µm CMOS433/868/915 MHz transceiverMicrocontroller9 channel 12 bit-ADCShockBurstOn-chip voltage regulatorsDigital I/UART'sSPIRC OscillatorWatchdog “Congratulations and great success to the

Nordic Team with this excellent product. I'm convinced it will leave the competition in the dust!!!

Best regards, Jerome (Unique)”


SPEARHEADING INTO THE INDUSTRIAL MARKET

Applications

Mouse/keyboard

Joystick/gamepad

Intelligent sports equipment

Headset

Audio

nRF24XX Family

nRF24XX Perfect fit for the Consumer applications

nRF24XX Perfect fit for the Consumer applications

Applications

RF ID and Point of Sale

Remote Meter reading

Building Automation

Industrial Automation

Security

nRF9X5 Family

nRF9X5 Perfect fit for the Industrial applications

nRF9X5 Perfect fit for the Industrial applications


HIGHER ACTIVTY OF CUSTOMER PROJECTS SoC Project Status

Good coverage in project department

• Key target customers

• Future component revenues

Established a customer base in line with company strategy

• Exciting prospects in pipeline

All projects on track

Increased efficiency in development


GOOD QUARTER FOR SOC COMPONENTSSoC Components Status

Steady turnover

No new components into volume

Will release a number of new components for volume production during 2004

Expect growth to start next quarter

Finalized deal with Philips Semiconductor for the sale of the production rights for a Wireless LAN baseband device


RECORD QUARTER FOR DATA CONVERTERS IP Data Converter Status

Record quarter with quarterly revenue of 6.2MNOK

Booking of 15.2 MNOK

• Book/Bill: 2.45

New customers signed up for newly developed products

Result of strong investment into Product Development and Sales


NORDIC IS MAKING MONEY AGAINSummary

Revenue growth was 25% compared with 3rd Quarter

• Enhanced a solid revenue base

• Very strong booking, Book/Bill: 1.45

On track to deliver on the promise of becoming a leading semiconductor company

• Revenue growth

• Product portfolio growth

• Quality customer growth

No more “who the heck is Nordic”

• Major competitors fear and recognize our products and position in the market


NORDIC MANAGEMENT PROPOSE A NEW NAME FOR THE COMPANY

We believe that a new name will enhance the understanding of Nordic as a semiconductor vendor

• Statement for our customer, suppliers and employees

A new name will be proposed to the annual shareholders meeting in April

I seek your support for the new name and profile

NORDIC VLSI ASA Q4 - 2003 PRESENTATION Svenn-Tore Larsen CEO 12. Februar, 2004.

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Transcript of NORDIC VLSI ASA Q4 - 2003 PRESENTATION Svenn-Tore Larsen CEO 12. Februar, 2004.