NORDIC SEMICONDUCTOR ASA Q1 - 2004 PRESENTATION Svenn-Tore Larsen CEO 27th of April, 2004

NORDIC SEMICONDUCTOR ASA

Q1 - 2004 PRESENTATION

Svenn-Tore LarsenCEO

27th of April, 2004

- 2 -Investor Presentation 27-04-2004

AGENDA

Financial Update

Sales Update

Product Division Status


MAIN SHAREHOLDERS/STOCK OPTIONS

Odin-fondene 9,9%

Delphi-fondene 8,0%

Nordea-fondene 7,0%

Ferd Invest 6,7%

Inak AS 6,6%

Arne Græe 6,1%

Edvin Austbø 5,2%

Firstnordic-fondene 5,1%

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 8,6%


PROFIT AND LOSS ACCOUNT

MNOK

COMPONENTSStd. ComponentsSoC ComponentsCONSULTINGSoC ProjectsData ConverterOther operating revenue

Total operating revenue

Cost of goods soldDirect project costsPersonnel expenses (1)DepreciationOther operating expenses

EBIT

Net financial items

EBT

Q1, 2004

18,111,3

7,54,0

0,0

40,9

15,11,3

15,20,96,2

2,2

0,2

2,4

Q1, 2003

6,1

4,0

10,25,00.0

25,3

6,82,6

13,51,47,3

-6,3

1,1

-5,2

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 Q1-Q1

196%183%

-26% -20%

-

62%

122%-50%13%

-36%-15%

-

-

28,0 24,1

39,618,6

0.0

110,3

34,28,8

51,05,3

29,4

-18,4

1,8

-16,6

2002

(1) Option program tax Q1-04 NOK 1,3M, 2003 NOK 3,7M


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 Q1 2004

31,6

15,0

21,0

4,3

29,4

101,3

81,1

2,0

18,2

101,3

2003

32,7

15,3

18,7

2,0

37,1

105,8

79,4

2,0

24,4

105,8

2002

32.8

11.6

13.2

4.8

53.6

116.0

91.6

2.0

22.4

116.0


-15

-10

-5

0

5

10

15

20

25

30

35

40

45

Q1-02 Q2-02 Q3-02 Q4-02 Q1-03 Q2-03 Q3-03 Q4-03 Q1-04

STRONG GROWTH IN REVENUE AND POSITIVE RESULTQuarterly Operating Income And Earnings

MNOK

Operating income

Earnings before taxes


AGENDA

Financial Update

Sales Update



11,711,912,312,512,812,512,311,812,1 12,512,512,913,4

14,515,4

16,116,1

13,8

15,8

12,3

0

5

10

15

20

Jul

AugSep Oct

NovDes

Jan

Feb Mar

AprilM

ayJu

neJu

ly

AugSep Oct

NovDes

Jan

Feb

OVERALL MARKET DIPPED IN JANUARYSemiconductor Market

Source: World Semiconductor Trade Statistics / SIA

Monthly WW Semiconductor Sales(BUSD)


0

10

20

30

40

50

60

70

80

Q1-02 Q2-02 Q3-02 Q4-02 Q1-03 Q2-03 Q3-03 Q4-03 Q1-04

Revenue Booking Backlog

RECORD REVENUE AND BACKLOGQuarterly Operating Income, Booking And Backlog

MNOK


26 %

45 %

27 %25 %

27 %

10 %

16 %

10 %45 %33 %

18 %

18 %

0 %

20 %

40 %

60 %

80 %

100 %

120 %

2002 2003 Q1 - 2004

SoC Projects

IP-Data Con

SoC Components

Standard Components

COMPONENTS DOMINATE REVENUERevenue Split 2002 - Q1 2004

(1) SoC Projects excluding components sold

(1)


FIRST QUARTER - A GOOD START ON A GREAT YEAR? Summary of Financial Status

Strong quarter with record revenues and positive bottom line despite heavy investments for future growth

• Record revenue of 40.9 MNOK

• Quarter to quarter growth of 14%

• 2.4 MNOK in profits, 5.9% of turnover (9,0% exclusive tax on option program)

Record Backlog

• Backlog is 68.MNOK

• Book/Bill : 1.06

• Book/Bill for standard components : 1.94


AGENDA

Financial Update

Sales Update



nRF24XX FROM PROTOTYPES TO PRODUCTION Standard Components Status

Explosive quarterly growth: Q4- 2003 to Q1- 2004 growth; 88%

Exceptional booking

• 35.1 MNOK Booking

• Book/Bill: 1.94

Multiple end customer projects in volume production

323 new evaluation kits sold this quarter

Fast rampup of new products

• 58% of revenue coming from new products available last 12 months

• Nordic has been established as a leading technology provider to wireless game accessories

nRF9E5 and nRF905 successfully launched

• Q1 contribution 600 KNOK

• First production orders already received


0

5

10

15

20

Q2 - 2003 Q3 - 2003 Q4 - 2003 Q1 - 2004

BiCMOS Products

nRF24XX

nRF9X5

NEW PRODUCT FAMILIES ARE DOMINATING REVENUERevenue Split Q2- 2003 to Q1-2004

Revenue from Standard Components (MNOK)


FOCUS ON PRODUCTION AND TEST CAPACITY Standard Components Status

Nordic has secured wafer capacity for a strong growth

Nordic has invested in additional device test capacity

• Test equipment

• Test software

• Packaging

Invested 1,5 MNOK this quarter for future cost optimization and capacity increase


FOCUS ON DISTRIBUTION ACTIVITIES Standard Components Status

Annual European distribution training

• 55 participants

• Management

• Commercial

• Technical

Invested 500KNOK this quarter for fully trained sales channels


LOGITECH @ CEBITLogitech Chooses Nordic VLSI’s 2.4GHz RF-devices for Next Generation Wireless

Platform in Gaming Devices

“Our initial choice of going with Nordic VLSI was based on the excellence of their products and their commitment to ensuring Logitech a successful product development phase, ” said Paul Loughnane, Hardware Engineer Manager of Logitech's Interactive Entertainment Division. “We have been very satisfied; Nordic VLSI’s commitment to Logitech is strong and their support never stops impressing me. The devices have been very easy to work with, and we have been able to reach an optimal solution for our products.”


NORDIC @ CEBIT


NORDIC @ CEBIT


NORDIC @ CEBIT


To be continued….


STABLE ACTIVITY OF CUSTOMER PROJECTS SoC Project Status

Three major projects taped out

• Component deliveries expected in Q4

Two new projects started

• Value added with Nordic IP

Two new pre-projects started

• Will generate two new projects in Q2/Q3

• Value added with Nordic IP

Several engineers assigned to new RF product development

All projects on track


SLOW QUARTER FOR SOC COMPONENTSSoC Components Status

Revenue influenced by 0.9MUSD contribution from sell out of production rights of Wireless LAN baseband device to Philips Semiconductor

No new components into volume

• Design cycles longer than for consumer equipment

Will release 8 new components to volume production during 2004


CONSOLIDATION QUARTER FOR DATA CONVERTERS IP Data Converter Status

High focus on new architecture for graphic applications aimed at flat panel segment

• Joint development with a customer

Good prospect list in Japan and US

Nordic IP presented at ISSC-04


NORDIC SEMICONDUCTOR WELL POSITIONED FOR FUTURE GROWTH

Summary

Still strong quarterly growth

• Customer portfolio contains strong brand names

• Growth driven by Standard Components

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

• Revenue

• Product portfolio

• Quality customers

• Production capacity

• Brand name recognition

• Distributor appeal

• World leading manufacturing partners


NORDIC SEMICONDUCTOR WELL POSITIONED FOR FUTURE GROWTH

Summary

“We are pleased that Nordic has chosen the Green QFN packaging solution to address the significant ecological

challenges of increasing concern to customers today," said Dr. Tien Wu, president of ASE Americas, Europe and Japan.

"This development demonstrates our expanding presence and penetration into the global Green package market. ASE's

unique technology in Green QFN packaging has set a new standard in lead-free packages by enabling world-class

performance for the most complex RFIC devices."

Documents

NORDIC SEMICONDUCTOR ASA Q1 - 2004 PRESENTATION Svenn-Tore Larsen CEO 27th of April, 2004