Good afternoon, you guys. Welcome to Nordic Semiconductor's Capital Markets Day for 2021. My name is Kine-Elena Reigstad. I work as a finance manager in Nordic Semiconductor, and it is my honor to welcome you here today. We have people joining from the web, and we also have a lot of people physically here with us at Oslo Konserthus. For those of you who are here, a bit of housekeeping rules. If there's a fire, the fire alarm will go off, and you will exit the same way you entered the building. We got that under control. We are very pleased to have you back. It's been two years since our last Capital Markets Day back in October 2019. We see some familiar faces, but we also have a lot of new faces here today, which is exciting. I think I talk on behalf of all Nordicers when I say that the past two years have been an exciting journey, but we are even more excited for the journey ahead. That being said, this presentation do include a lot of forward-looking statements. Careful. We do not control the full future. Invest at your own risk. If we would know the future 100%, we would all be billionaires. Let's dive into the agenda. We will start with Svenn-Tore Larsen, our CEO. He will give you a proper introduction to Nordic Semiconductor, a globally leading IoT enabler. Geir Langeland will take over and cover a bit of the customer journey and verticals, in addition to some thoughts on the current markets. Our EVP of Product Management, Kjetil Holstad, and our CTO, Svein-Egil Nielsen, will give a presentation on innovating for IoT. I think after that, we've earned a break to stretch our legs and really take in the newly acquired knowledge. After a 10-minute break, we will come back and Katarina Finneng, our EVP of People and Communications, will give a presentation on people and sustainability. Our CFO, Pål Elstad, will take us through the financials. Svenn-Tore Larsen will give a short wrap-up and summary before we will open the floor for a Q&A. I am not going to drag this out any longer. The first speaker is a known face for most of you in here, our brilliant CEO, Svenn-Tore Larsen, who has been with Nordic and led Nordic since 2002. The stage is yours, Svenn-Tore. Thanks, Kina. I don't work in Nordic, I live Nordic, and it's not only me. I think most of the people in the company really love the company. Katarina will go into depth of why that is. I will start today with an overview before leaving the floor to the rest of the management to take you through the market strategy. We do going through the product technology map with Svein- Egil and Kjetil, organization and people with Katarina, and finally, Pål do the finances. We are a globally leading IoT enabler. We've been speaking IoT before people even knew what it was. We are working to provide intelligent, ultra-low power wireless connectivity for all things out there, and keep that in mind. I think you're going to see more and more things connected with Nordic technology years to come. We have a broad portfolio of products and solution combining low power, high performance ICs, feature it embedded software and a range of development tools. Our development platform is unified across long-, short-, and also medium- range applications. We've been investing through the last decades a lot into DevZone, where our customers can come in and get answers from other customers. What does it mean for customer? Short term to develop their products, shorter to the market, more value into our customer's pocket. That's what is all about for Nordic. We want to give value add to our customers. As you know, we've grown rapidly over the years, and we are approximately 1,200 people as of today. 70% of these people are developing new solutions every day. 70%. It's great. Coming into the office now, seven out of 10 are R&D engineer, or actually eight out of 11 almost. It is so fantastic. I happen to walk into the office from the third floor, and I meet them every day, and it's such a nice pleasure to have a couple of minute chats with them. They are as enthusiastic as the guys that present today. 1,200 super enthusiastic people is nice to lead. I said we were globally leading IoT enabler. This means that we serve customers and end users in a very, very large and growing market. If you look at something called IoT Analytics that outline the growth of this trend of number of connected IoT, I say IoT devices everywhere. IoT Analytics are a little bit more specific. They said number of connected IoT devices is show tripling from 2015 to 2020, and almost the same number again until 2025. If you look at the total volume or value of this, the total space of IoT is nearing $1 trillion. That's some analytics, let's say. If you look at all the numbers from different, they differ, if you take a common factor, it's huge. Nordic is in the middle of this. We are in the leading position in this space. We believe there is three major interlink trends driving this market. It's Industrial IoT, it's sustainability and platform ecosystems. Industrial IoT is working to bridge the gap between the physical world and the digital world. If you look at the slide here, it's basically showing that all the activity that happens on the right-hand side is the building up huge platforms. 5G, somebody heard about 5G, is exploding. Everybody basically expand 5G. Nordic can take advantage of that with our cellular IoT products. We also show new product today that's going to take advantage of the 5G deployment. We are using and learning this data that we collect with sensors and Nordic radio gives to the cloud. That's the use case everywhere. Bringing the physical data to the cloud is Nordic's job. We can and know how to do this. If you look, we have seen a huge growth around, I would say, most application. We see the strongest interest for IoT now is within industrial applications, which we really embrace. Good thing with industrial applications that you designed in once and you're in there for long time. You will hear much more from that about this from Geir and Kjetil later on today. I said there was three. The second one is the global drive for more sustainable economy across all industry. We want to support, we want to contribute to get a good environment. We want our next generation and generation after to have a good world to take over. I'm pretty sure that disruptive IoT projects will contribute immensely to obtain the UN Sustainable Development Goals. We shall help on that way. I'm sure within a few years you will find Nordic application that fit into each and every one of the 17 goals. Over here, we just put some few products up there. Katarina will speak even more about our ESG commitment a little bit later. We think we go well beyond the footprint of our own production and organization. We obviously do whatever we can do in our own house. I think we're going to help the rest of the globe to clean up in their house. My favorite slide. Have you seen this before? Those who follow us have. It's really the ecosystems that are the third major growth driver. We have been working with the guys in the middle, the ones that provide the platforms. We form commercial relationship with these guys. We're into the hubs, and if you look at these companies, I think five of the six most valuable companies today are platform companies, and they keep growing. They keep investing. Why do they invest? They see there is something going to hook up to this system. We have been spending more than 10 years building a strong position in the broad market. As of fresh out of this quarter, we just showed that we have 42% market share of Bluetooth Low Energy design wins. We have almost been as long building relationship to the Tier 1 customers. That's partly why you're seeing our backlogs ramping so rapidly, is because these companies are now starting to enable or bring the hubs and the products to the market. Geir will discuss even more about this in his presentation. This is the strategic pillars of Nordic Semiconductor. How are we working to secure our position in a growth environment and benefit from our strengths and advantages? Our market efforts are rooted in leading connectivity technology, ultra-low, high performance at the right cost. It should bring value to the customer to use our parts. Obviously, we like to excite everyone we meet. I think that comes to any person walking on the street, we want to excite for everyone around you. We want to excite developers. What we need to do is make sure our products and solutions are scalable across technology, market, and customers. We have to ensure we combine the broad market and Tier 1 customer engagement models. We want to be in the forefront of innovation. These guys over here, Svein-Egil and Kjetil, will show you that we really mean that we're going to be in the forefront. What we did with our proprietary and with our Bluetooth Low Energy, this is what we're going to do with cellular, and we extended our investment into Wi-Fi. Today, if you listen, I announced that we are introducing DECT NR+. The old standards coming back. Again, driven by Nordic Semiconductor, it was a disruptive moment. It's been dead for a long time. We took advantage of this moment. Those of you who were here in the Capital Markets Day 2019 saw this slide. I said, "A strong growth story, just about to see the effect of emerging IoT market." That was the exact words I used two years ago. Anyone remember? This is how it looks today. Am I right? Yes. It really showed during these two years period that we have more than doubled. We believe the continued spread of IoT across new markets, application, will offer the opportunity, continue this strong growth. If you look at my next slide, this is how Bluetooth SIG reflects on the market and the outlook. They expect a tripling of annual shipment of single-mode Bluetooth Low Energy. Bluetooth Low Energy is what is called, from 2021 to 2025. We are a clear leader today in Bluetooth Low Energy with more than 40% share. We like to be in that position. This is basically built on a broad product portfolio of multi-protocol System-on-Chips. We talked very early about Bluetooth Low Energy. That was where we started. If you look at all the protocols we've been adding on, why are we adding on all these protocol? The ecosystem is out there, and we are basically fitting straight into the ecosystem independent of what kind of protocol, because Nordic is supporting it. We are confident that we will play as leading role going forward as we have done up till now. I'm not going to show you this slide for the next Capital Markets Day yet, Markets Day yet, because we need to wait for two years. We're looking forward to do that 2023. If you look at our backlog, it's huge. Given the supply chain changes, I'm sure you're all aware of it. The development might give an even more precise picture of how the current market expanded. I will say that if you listen to Geir, when he's going to discuss the order backlog and how we've been handling it, how we've been able to support our customer through extreme challenging time. We will continue to do that, and I come back and comment on that when we talk about outlook. This backlog reflects orders from Tier 1, but also a very, very strong broad market demand. Remember the figure when we said we have the platform in the middle and we have all the gadgets around. There's no point having a platform unless you have gadgets. There's no point having gadgets unless the platform is there. We have to support both Tier 1s and the broad market. If you short it down, we see a strong demand from all types of customers and verticals. Unfortunately, I'm very sorry, and I would like to give my apologies to some of our customers, we are not getting all you require of volumes. We're working as hard as possible to correct that. If you look, sitting there having product going to production, not getting product from Nordic today, we work and do distribution of products, try to align to ensure no one got line stops. That's really the work Geir and his team is doing every day. We want to avoid any line stop. If you look further ahead, see the investment programs that have been launched across the semiconductor industry. I consider this as a road bump. This will ease up, we don't know when. We know they're working to extend the capacity. When that time comes, we still have huge amount of design wins we're going to ship to. We showed you that we would reach $1 billion two years ago in 2024. After seeing our customer base growing significantly stronger than expected, and after working extremely hard with other vendors, we are really happy to announce that we have wafer supplies to meet this target already in 2023. Basically, we have got commit for wafers to be able to grow to reach the $1 billion already in 2023. What we want to do now is outline a little bit what kind of opportunity and why are we investing into this innovation. Currently, most of our business are Bluetooth Low Energy. We've been investing in hardware and software for cellular IoT since 2016. What we really do is that we are broadening our technology expansion by cellular IoT, Wi-Fi, power management, and other adjacent components. We make our product line wider. We also see that we are widening our verticals. Basically we are growing in multiple directions. I can tell you all, it's a nice place to be. You can use Bluetooth Low Energy for more than consumer. You can use Bluetooth Low Energy for more than industrial. You can Bluetooth, you basically use it everywhere. What do Nordic do when we're going to invest? We are not growing blindly, but we have sound investment criteria for our expansions. The market we move into need to add size and add growth. We have invested NOK 420 million the last years in R&D. Obviously, it has to lead to growth. The market we need to add size and growth. That's number one. The need to offer opportunity to establish good margin business. We need to understand that there's room there for Nordic Semiconductor to take market share. We won't go straight in where we have the toughest competition. We look for opportunities where we can basically have the advantage of being who we are. Obviously it has to be feasible, both from a technical, financial viewpoint. Important thing number three, we have to ensure we meet the timeline for our customers. As I said, NOK 420 million in R&D, we continue to invest. As you saw from our Q3 presentation, we've grown significantly through this year. We have done a Wi-Fi team. We continue to invest. If you look at this slide, our revenue the last 12 months, 97% on Bluetooth Low Energy. If you look at the investment we did, our R&D resources we've used this last three months, 40% were towards new technology. We continue to develop technology, which we have unfortunately now been able to speak to our customers to see what is the next generation of technology you demand. When we started off in Nordic, we had to sort of find this out ourselves, now we have so direct contact to our customers that we can get that information, we can act upon it. Obviously, since we're investing so much, we need to see there is a market, because that's part of our principles to invest. We believe that in short- range market today, approximately NOK 4 billion. If you look forward with all the technology, Wi-Fi, cellular IoT, and services, we see a huge expansion. We will capture more space on the circuit board with power management and other adjacent projects also. Nordic is becoming, I would say, a connectivity company with more adjacent component. We are going to take more of the total spending of our customer. Simultaneously, we make it cheaper for the customer to get a good solution. I don't know anyone that don't want more for less. That's what we're working to achieve. Svein-Egil and Kjetil, we basically go even more into this. We have really high financial ambitions. You don't do such investment without high expectations of return. I showed you earlier that we should be $1 billion in 2023. I expect that we are able to grow, maybe doubling, within the timeframe 2023 to 2026. We're going to continue our strong growth in Bluetooth Low Energy. We're going to accelerate traction in cellular IoT, and we will see early reward in Wi-Fi. Gradually on top of that, we're going to have revenue contribution from power management and other adjacent products and technology. Given the long-term nature of our innovation, we don't see us stopping here or there. We'll continue to innovate, to expand our growth journey through both this and the next decade. Nordic Semiconductor is here to become a large semiconductor company. Summing up, we are a global leading IoT enabler. We've seen strong demand and increased order backlog that offer us a solid platform for continued revenue growth. Our market is supported by very strong trends. We all agree on that. Industrial sustainability and other platform ecosystems. We are a market leader in short- range. We are getting new adjacent technologies in place, and are migrating up the value and into services that open a new revenue stream for Nordic Semiconductor. I will leave you with a repetition. We are going to reach the $1 billion revenue target ahead of time. We are going to more than double revenue in the three years from now through 2026. That was my introduction. Now the good guys in the management team will take over and really show how we get where I want us to get. Thank you. Thank you, Svenn-Tore Larsen. We will continue with our EVP of Sales and Marketing, Geir Langeland. He's actually been with Nordic for longer time than Svenn-Tore Larsen. He joined Nordic back in 1999, and he has almost three decades of experience from the global semiconductor, not company, but industry. I think, Geir, you are probably one of the sportiest persons in the management team as well. You'll beat me on the treadmill any day. Geir, take the stage. Thank you. Well, what an interesting ride it's been to be with Nordic and see all the changes happening in the company and the growth with great customers. Thanks for the intro. Thank you to all the viewers online and in the room. Let me take you back to our last Capital Markets Day. We took you through the customer journey and concluded that the customer is at the center of everything we do. These insights about Nordic come from customer research and feedback, as well as experience. We truly believe that this DNA we have at Nordic has never been more important than in the last two years. During the pandemic, we've supported our customers virtually through online tools such as our DevZone portal and old-fashioned telephone rather than physically on-site. It's also been a challenging time due to the scarcity of material. The experience has brought us a lot closer to our long-term customers and new customers alike. It's really led to a rapid growth. We've seen revenue more than double over the last two years, with an accelerating growth from 2020 through 2021. This obviously reflects strong demand across the short-range markets, primarily ramp of projects we and our customers have had in the pipeline for a long time. These are also projects that happen to be within the market trends that Svenn-Tore Larsen mentioned earlier, across both the Industrial IoT and the platform ecosystems. As was previously mentioned, the growth comes from customer projects that we worked on for several years and with Nordic products where features and maturity go hand-in-hand. COVID-19 has had multiple effects on our business. It's been a catalyst for the widespread uptake of a range of new technologies which were considered a novelty a couple of years back. Over the last two years, we've seen a heavy ramp in applications connected to gaming, digital healthcare, working from home, and very importantly, virtual reality and augmented reality, as well as shipments and tracking. On the subject of virtual reality, one shining example of attaining acceptance can be seen with Facebook, with its Oculus Quest 2 headset. You might have seen Facebook announcing a new project to build a 10,000-strong team here in Europe to build its part of the metaverse to offer collaboration and virtual experiences beyond gaming. Well, the gateway into that metaverse happens to be a VR headset, and we're really proud that the Oculus team chose Nordic when building the latest VR system, the Oculus Quest 2. The Oculus Quest 2 VR system is untethered and cable-free. It uses three Nordic nRF52 devices to power the critical interface between the hand controllers and the headset through a low-latency wireless nRF52 link. The headset deploys a number of new innovative solutions and is the first VR headset which is basically manufactured on a grand scale. This unique system has gained more and more traction with its great technology and titles, and it's led to a growth in the number of users across demographics and subsequent increase in sales. Now, let's talk about ecosystems. If I may take you back to our Capital Markets Day presentation two years ago, we announced that we were strengthening the ties with Tier 1 customers, that Nordic Semiconductor was targeting platforms and ecosystems driven by the short-range portfolio and product volumes. We did claim that there was a symbiosis between our wide customer base and Tier 1 hubs, and the ways our customers could connect into ecosystems. We can state that Nordic Semiconductor is proving to be an attractive key partner for the global leaders as well as the broad market players. What do we mean by this? Well, we connect platform ecosystems by virtue of our technology. By making sound technology choices and investing in application software support, we target Tier 1 ecosystems. Because of our broad and extensive customer base, we're at the center of these ecosystems. Some examples are shown here. With the core technology that we have today, such as Bluetooth Low Energy, Thread, and cellular IoT, and in the future, Wi-Fi, coupled with application software support, such as software development kits for Matter, Amazon Sidewalk, the Apple HomeKit, and the Apple Find My network, we basically accelerate development. The Tier 1s are providing the ecosystems which partners can connect into. What do we mean by this? Well, take Matter as an example. Nordic Semiconductor has been deeply involved in the development of this new smart home standard coming out of the Connectivity Standards Alliance. This specification is not released to the public, we already have customers with products in the market ready to update and support Matter when the ecosystem becomes available. What's great about Matter is that finally there is a common standard for smart home that the three big ecosystem providers, Google, Amazon, and Apple, will support, making it possible for device manufacturers like LEEDARSON and Eve Systems to make one product that is compatible across all three platforms. Whether you as a consumer prefer Google, Alexa, or Siri in your home, you can be sure that your Matter light bulb or thermostat or any other Matter-certified equipment will work with any of them. Nordic Semiconductor is also supporting the rollout of Amazon Sidewalk. An exciting aspect of Sidewalk that sets it aside from Matter or any other smart home ecosystem is that it goes beyond the smart home by basically supporting devices physically outside your home, but also by supporting other device categories like asset trackers and healthcare applications that we normally couldn't target. This is very attractive to a broad customer base with applications in all kinds of different verticals. For example, applications that want to or need to connect to the cloud through an Echo or Ring device from Amazon or Ring. Let's listen to what the Amazon Sidewalk team has to say instead of taking it from me. Hi, I'm Afeef Ahmed. I lead business development for Amazon Sidewalk, and we're excited to be a part of Nordic's Capital Markets Day. Amazon Sidewalk is a secure, shared, long-range network that connects low-power devices with the cloud. Sidewalk is a solution for IoT device builders that lies in between Wi-Fi and cellular. For example, when enabled, Sidewalk might be able to help customers locate their lost items, or it can make setting up new devices around the home easier. You might even be able to receive notifications from your security camera if your home's Wi-Fi temporarily goes down. Those are just a few potential use cases. We're really looking to the developer community to come up with great in-the-home and out-of-the-home use cases for Sidewalk-enabled devices, which could range from sensors to smart appliances, and could span use cases from asset tracking to healthcare. This is where Nordic Semiconductor comes in. As a leader in the silicon space, Nordic Semiconductor is important to Sidewalk's success, as you all already have the relationships across the wide breadth of the IoT developer community and truly understand these developers' needs across both Bluetooth Low Energy and other existing protocols. With our partnership between Amazon Sidewalk and Nordic Semiconductor, we're looking forward to innovating in the IoT space and serving our mutual customers. Thank you for your time today. This is a great example of an ecosystem where Nordic Semiconductor offers value with our customer base that can then connect into the cloud or any other system by using the Tier 1 ecosystems. Another ecosystem where we've made some significant investments, if we're ready to move on, is Apple Find My network, which enables customers and consumers to find their misplaced or lost items like keys, earbuds, bikes, et cetera. This is a very attractive technology for the broad range of applications that our portfolio or customers are developing, either as a new product or as an add-on to an existing product. Some public examples are the Chipolo ONE Spot tracker and the Belkin SOUNDFORM Freedom wireless earbuds that are public. Both of these applications were developed, and they were using the Nordic Find My network software development kit as a starting point for implementing the solution. I think I'm correct in saying that working with and listening to our customers has yielded some good results. We're a clear market leader in this growth market, both in the number of designs and at unit volumes. We regularly shore up our market share in terms of design wins, which has remained steady at above 40%. The most recent figures from industry analyst Omdia indicate that we're roughly at the same level measured in unit market share. This goes to show to our strong position, which we're working to develop further every day. Just over the past quarter, we've seen customers launch a variety of new products. This quarter, we've again announced customers that sort of fits nicely into our growth strategy. We have SiBionics in disease monitoring. We have LEEDARSON with their smart light bulb, which connects into the gateways. We have three cellular products falling into different categories. We have the tracking application with the link tracker. We have an Industrial IoT from Metasphere, which is basically a sewer monitoring sensor that's dropped into the sewers and pipelines to monitor whatever goes through that. Finally, there's a power controller connected to the cloud that could basically lower the power consumption on remote- sensing applications. If you look at the composition of our customers, we're proud to announce that we've managed to retain our DNA. I think in 2019, we spoke about how important it is for us to basically keep some kind of a balance. Over the last 12 months, we've seen a rapid growth, and to us at Nordic Semiconductor, it's been extremely important to see that our customer base is growing with revenue and also that the value per customer is growing. For us, it's important to have a balanced growth between the top 10 players and the long tail. We get to the next one, which is sort of this increase in revenue obviously comes with an increase in orders. During the onset of the pandemic, we saw that forecasts from our customers rose sharply due to an increase in demand. What followed was an influx of new orders. There was a little bit of panic and psychology in the market, and it soon became clear that we had to increase our lead times to 52 weeks. This then resulted in another influx of orders further out where our customers are growing, right? They have 12-month plans, so they're growing. The overall backlog then started increasing. Now, we are confident that the current backlog is balanced. It shows a healthy relationship between incoming and outgoing orders and is in line with our projections. Demand is still very strong and demand still outstrips supply, and it will continue to do so for the foreseeable future. What is good is that our customers all report strong forecasts for 2022. We see good incremental growth, obviously, with existing customers, and we're also tracking customers with new projects which are ramping up. This then leads us into the next topic, managing the market under a constrained supply. Our allocation is not based just on agreements with customers, but is also based on what we see as a moral obligation to support them. Some of the principles underpinning our decisions during this supply strain include shielding high- volume customers who show long-term commitments to Nordic Semiconductor in return. We're seeding and feeding as many as possible of the new exciting high- potential new projects as we can. Likewise, and it shouldn't come as a surprise, we have to cap allocation towards low margin, low growth products that have substitutes or second sources, or are easily substitutable. We are also adjusting our resale prices from the 1st of December 2021 to reflect increases in wafer costs, assembly test, and shipping from our subcontractors. Two years ago, we pointed out some application areas where we could see disruptive growth. We mentioned the Industrial IoT space, where we see an influx in industrial applications. There's been a change during the last 24 months where we're seeing the smart home market with great collaboration between players leading to a promise of equipment which is interoperable. We're coming out of a pandemic where the need and acceptance of advanced logistics and tracking has been accelerated. Maybe with a rebound waiting to happen in the post-COVID construction period. Last but not least, we mentioned drug delivery and disease monitoring. We would like to highlight one of them here today, which holds special importance to us. Enter the new Dexcom G7. This is basically in one of the fastest-growing markets in healthcare, which is diabetes management. Dexcom being the leader in transforming diabetes care and management by providing real-time continuous glucose monitoring, CGM, as opposed to the traditional strip meters that most customers would use. Dexcom CGMs has improved more than 1 million lives as of June 2021. The Dexcom G7 uses an nRF52 device to interface to smartphones or dedicated screens where users can then take their glucose meter readings. There's an NHS report in the U.K. that stipulates that treating diabetes costs more than any other health condition. It amounts to 13% of the total cost of prescriptions across the U.K. With a proper CGM, you can control medicines and very importantly, also limit the secondary effects of a glucose level which is not where it should be. Moving on to the cellular IoT architecture. Our cellular IoT revenue is beginning to ramp. When you analyze the Nordic cellular IoT revenue last 12 months, you see a pattern with steady growth from $4 million a year ago to about $14 million last 12 months end of Q3 2021. The growth is spread across multiple customers ramping up projects over time. Many of the projects use GPS capabilities inside the nRF9160. We see that a lot of the revenue comes from tracking in logistics or tracking assets such as pets or other valuable objects. Furthermore, as we've shown, there are various sensor applications in industrial as well as environmental applications that are driving this revenue. We're shipping into hundreds of unique customers and their projects across a variety of application. The Nordic cellular IoT solution has found a home in industrial applications where it has great value. What we see, like Svenn-Tore Larsen pointed out, is that the industrial customers have a longer cycle. The design and selection process is longer. It takes typically years and not months. In cellular projects, you have to build up certification libraries for your products, and you have to make ecosystems internally, so it takes longer time. The flip side, of course, which is positive, is that you do get very long product life cycles, typically 10 to 15 years, whereas a consumer project could be anything from one to three years. One example that you should think of is metering. Once you're in a meter, they continue to ship that for more than a decade. We're also glad to report that the number of volume customers has increased sixfold over the last year alone. We're on a curve, which we think is really good. Moving forward, we remain confident that cellular IoT will be a driver for the digitalization of society, and that the technologies we have invested in will open up new markets for both Machine- to-M achine and Machine- to-P eople application. Our focus areas in Cat-M1 and Narrowband IoT technologies are expected to be among the most rapidly growing cellular technologies. We have an industry-leading offering in terms of power consumption, small form factor, software, and support. We will also, like Svein Tore pointed out, continue to invest and expand our product and services portfolio going ahead. We're looking at technologies which are adjacent to what we're already making. Wi-Fi is a good example. The customer base is typically very similar. I can share the same sales team selling into a Wi-Fi solution as I could in nRF52 as with the cellular offering. We can leverage our support and DevZone forum. It is very easily scalable across technology. On a different scale, you'll find cloud services and power management, which both complement our current connectivity portfolio. They're there. They're something that our customers need. It's like bread and butter. We sell that as well. I think we see that the cloud connectivity is essential, and it's an extremely good fit for virtually all cellular IoT applications. It solidifies our share of the customer board space and spending with some scalability. To sum up, we have strong growth built on years of technology, software development, and very importantly, long-term customer relationships. We're a proven and attractive partner, like we've shown for Tier 1s and broad market players. There are strong mega trends supporting our continued growth. There are several high- volume markets gaining traction as we speak, and as we've shown you over the last two years. We are expanding our opportunity pipeline with investments into adjacent technologies, products, and people. Thank you. Thank you, Geir. That was very interesting. We got a very tight schedule. We're just going to continue to our next dynamic duo. We got our EVP of Product Management, Kjetil Holstad, and our CTO or EVP of R&D and Sales, Svein-Egil Nielsen. Kjetil joined Nordic a long time ago as well. He's been at the Executive Management Team since 2019. He as well has more than two decades of experience within the global semiconductor industry. Svein-Egil joined Nordic in 2001 as the Head of Sales and Marketing. In 2006, he became the Director of R&D. He's been our CTO since 2013, I believe. With that, I'll hand it over to you guys. Take it away. Thank you, Kine. Me and Kjetil is going to share the presentation because we figured out that there's so many things that we work on together that it makes sense to do together. We may look the same, if you get confused by who's who, remember Kjetil is the one with the beard. All right. We have seen this slide before, you know we like to talk about the journey we've been on for the last 20 years. The 20 years of history from when we've been a company that has focused on making ICs for a mass market worldwide. We started 20 years ago making 2.4 GHz proprietary devices. We became, with that device family, we became the de facto standard, if you can call it that, for wireless keyboard and mice and game pads. As strange as it might sound, many of these components are still in production today. In 2006, we joined forces with Nokia and started developing a new interoperable standard for low-power connectivity. That later become Bluetooth Low Energy, and that's something that we started to see revenue in the 2010 or 2011 timeframe. Goes to show that some of these things takes a long time from a standards development point of view. Building on the good position we had in Bluetooth Low Energy, which I guess you already heard about plenty of times, we've introduced additional technologies such as Zigbee, Thread, Matter, and of course, we've done significant investments in cellular IoT. It all builds upon the story of what we have been doing. The core of what we do is wireless connectivity. That's the core of how we approach the business. Not only providing just the ICs themselves or the modules, we're actually providing the solutions all the way to what the customer needs. That means that we have to provide protocol stacks, which is very comprehensive software development tasks. We develop SDK level code, example code, and so forth, and tie it all together with very advanced development tools, tools I think is better than anyone else. In the end game of that is, of course, to allow the customers to focus on making their products and not all the other things. We'll take care of that. Customer can focus on bringing value add in that space. If you think about the wireless technology, as I said, we started off with proprietary 2.4 GHz technology, but today we support a range of wireless connectivities all the way from Bluetooth Low Energy to LTE. Now, as with the latest introduction this year, of course, Wi-Fi. With the Bluetooth Low Energy, the Wi-Fi, the LTE. We sort of think about that as the holy trinity of wireless connectivity. We don't support everything in that space, but those are the core technologies that, in a way, dominate the space right now. We have a foot in all these three technologies and adjacent technologies as well. I think it goes to show the platform of technologies we support. I guess you know that we here at Nordic Semiconductor is a very proud bunch. We love generating revenue, winning customers, but of course, we also love winning awards, and that's something that makes us very happy. Every year, we bring home a long list of awards in different spaces and categories. The one that really sticks out, especially to me, is the awards that we've been nominated and won from the Global Semiconductor Association. The Global Semiconductor Association is our industry association, and I think about the GSA awards as the world championship of semiconductors. This is not a specific product or technology or anything. This is the company that gets judged, right? We get judged by our peers. Also me and Svenn- Tore, we will vote in these categories as well, and so does the other guys. They vote for who they think is great. As you've been following us, you know that the first prize we won in 2015, which was a regional prize, and then subsequently we did three years where we have won the Most Respected Emerging Public Semiconductor Company award. It's a big deal, right? Last year, we were nominated for two more prizes. We didn't reach all the way up. I think we all believe that they thought we got too many prizes already, so this wasn't our time. We will be back at the GSA, I think. The other thing that I think is, from an award point of view, I'm very happy with is the awards we have got for the nRF91 Series device. We decided to make that device as a groundbreaking device that transformed and thought differently about cellular IoT. I think if you look at the awards themselves, you'll see that that is recognized by those giving us award, that we came out with a product that was very different than what other people had done before from a usability point of view, and certainly from a power consumption point of view, and that's recognized in a number of these prizes. With that, let's bring on Kjetil Holstad to talk more about the Right Products in the Right Markets. Thank you, Svein-Egil. The next two minutes we're going to spend talking about the Right Products in Right Markets, because fundamentally, that's what this is all about, right? Geir has talked about all our customers, all the markets and applications we're in. These customers and markets, this requires a high-quality product with the right specification coming at the right time. That is what we do. That's why this section is called this Right Products for Right Markets. The Internet of Things has been a concept that has been around for a long time, but it's really now firstly becoming a thing and can be found everywhere. It's driven by, as Svenn-Tore pointed out, these mega drivers with sustainability, platform ecosystems, and Industrial IoT. These are obviously complemented by smaller underlying trends, some of which Geir talked about in his presentation. If you look at all of this is really unlocked by the technology advancements and the solution that Nordic and our partners bring to the market. This is reflected in an evolving landscape we've seen growing end-user markets. I showed this to the left at the previous Capital Markets Day, where we showed that for our short-range markets, we had an opportunity that was roughly around 1.3 billion units. Since then, we have seen that the market obviously has grown. Now it's approximately 2 billion units, and we still see it's dominated by large market like HID devices, wearables, and remote controls continue to make this large share. We see that other areas like smart home, building automation, consumer health, disease monitoring, and some of the applications Geir highlighted, is growing in relative importance. There's obviously here new markets that we in Nordic Semiconductor closely monitor to see what they need and how they develop. We know that all these different applications and our customer base require us to do different product qualities, and this leaves ample room for us to both innovate and differentiate to grow. In other words, again, making sure we have the right products for the right markets. I have exemplified a little bit about what we have done here in the short- range landscape. To the left, you have our entry level nRF52805 device, and to the right you have our flagship nRF5340. Since introducing the first nRF52 back in 2015, we have now a broad portfolio covering all kinds of applications. The differences in terms of processing capacity, memory, security features, connectivity, standards that we support is very broad, so is also the complexity of the application we support at our customers. Each of these SoCs are targeted to support different things. Basically, there is not one product that could go and do what Nordic Semiconductor has done over the last couple of years. You really need a lineup and a span of capabilities. Back in the Capital Markets Day two years ago, I also told you that the nRF52 family was just starting and had a few years of growth ahead, the development so far proves us right. If you look at this graph showing the revenue development of our nRF51 Series and the nRF52 Series since launch, you can explain the significantly stronger growth for the nRF52 Series. Of that breadth we see and depth of the product portfolio, where we cover full range of applications from simple cost constraints to the most complex IoT application you can imagine today. Throughout these years, we have continuously improved both on the hardware and on the software side to add value, obviously preserving our average sales price and our margins. As Geir talked a lot about, believe that this portfolio of active customer products that we have, has a lot of room for further growth. Taking also the resilience we see of the nRF51, we are very excited to see how the graph will continue for the nRF52, not only for the years to come, but for the next decade. Geir talked a little bit about our market share in Bluetooth Low Energy and how that had actually grown to more than 40% in terms of units. We, in the same period, continue to be the market leader in terms of number of designs, with more than 40% market share. This obviously comes both through the expansion we have done on the product side, but also the expansion in terms of our customer base and having growth. The value per design over this year has also grown, seeing that our unit share has gone up. It's this breadth of designs and customers and experiencing in building a line of a product to serve those, that provides a valuable insight when we're now looking at where we can grow and expand the opportunity landscape. With that, I leave it back to you, Svein-Egil. Thank you, Kjetil. When Svenn-Tore started talking a little bit about how we think about expanding the opportunity set or the newer things and how it holds together, and I'll try to bring some more color to that. Really, when we talk about how we expand and look at our portfolio, we do really look at them in the three axes. The technology expansion in terms of the ICs and the hardware itself, or really what becomes a product that we monetize. That could be in our short- range devices, our cellular IoT device, and other devices. The axis of the kind of product you deliver, the second axis, is what is it that we actually deliver. When we look upon this image, we try to do a very simplification of it. From having been a hardware and focused on IC, we have, of course, invested significantly in software and solutions on top of our chips, and a significant amount of R&D effort goes into this space. Certainly because it's an expectation from our customers to provide protocol stacks and software to get it done, it's part of the package. Also because it provides an opportunity for us to differentiate our product and actually be competitive on it. We believe that our software and support solutions today is better than anyone else, and that gives you more resilience when you look at the whole portfolio of products. The top on the second axis is what we call Services. What I think is the most alluring or interesting about that space is it's tightly coupled with the rest of the offering we do. Services is something that complements and enhances the features in the hardware or software we're delivering. Something that falls in tightly with the product, and Kjetil will talk more about the first thing we've launched, which is Location Service, and how it can make our hardware and software and everything in between better. It becomes these logical levels that makes all kinds of sense. If you'd have a hard time understanding why would we do something like a service level, when we think about it in the products and services we offer, there is a red line there. There's a line between that that makes sense. Of course, the third axis is certainly expansion in different verticals. We make products that are fairly vertical agnostic, if I can call that word. It's a product that are fairly general purpose, really, chips are. We do, of course, have software solutions and other solution on top that target specific verticals, and Geir and Svenn-Tore talked about smart home and other spaces where there are special solutions being developed to address specific markets. Of course, it's a very logical opportunity to look at the verticals. Another natural expansion point is the, as Geir alluded to, is to capture more board space on a custom PCB. Really, the beauty of this is that in many designs out there, many of our customers' designs, the Nordic SoC is the most sophisticated device or the brains of the system itself. It's the device that the customer are most engaged in. I took up an example here of our upcoming Nordic Thingy:53, and you might have heard of our Thingys before. There's a new one coming, so look forward to that. This is the Thingy:53. Looking at that board and how we built that, you'll see that we have the nRF5340 as the main SoC on that board, supporting short- range, all our short- range protocols. With this time, we've complemented it with the nRF21540, which is our range extender or RF front-end module chip that gives that solution longer range. We put on the backside the nPM1100, which is our first power management IC for mass market that controls chargings and complements the system. On the rest of this board, there's literally only some sensors and some buzzers and other things. In many ways, although this is a proof of concept platform, it very often mimics the system of our customers. I jokingly say to Geir, "Geir, you got a really easy job here." You've got the sales force out there that understands this, and they have the customer relationship. How hard can it be to upsell a couple of these extra components? Of course, put some pressure on. There is something to that. What we also can do, and not just rely upon Geir's sales force, we can also make sure that we make special solutions that makes our chips work together better, and therefore increasing the value-added functions in that system. A very logical expansion which really leverages in so many ways what we already know something about, but certainly the organization we've built over so many years. Hold on a second. Did I jump one? I did. DECT- 2020 NR. It's been talked about earlier today. For those who follow us, you saw that we did the press release on this on Tuesday. What's going on? Someone made a wireless technology that isn't that good, right? Hold on a second. All right, looking at this one now. You saw the press release on Tuesday on DECT-2020 NR. That's part skunk works, part opportunistic. Suddenly, we got engaged by the DECT Forum to be a part of developing a new standard for wireless technology that addresses IoT. For those who know DECT, you think about the old phones, right? The ones that you had, it was a DECT phone. This is the same Forum, but focusing on a different space, on the what I call the medium range or long range, medium to long, it's the kilometer range kind of application. Fairly good data rate, operating in a wireless spectrum that is controlled by DECT, and not by carriers and not by anything else, but it's available for DECT technology, and it's fairly worldwide. There's a lot of good things to that, and we worked with this standard for the last couple of years, with significant contribution to that standard, and we are building our initial solution based on our nRF91 Series. It's opportunistic, but it's a very logical expansion into a new wireless technology that isn't that far from where we want to go. This one, right. Perfect. Of course, one of the thing that is a challenge is that really we do have too many opportunities to choose from. I think there's a lot of things to do, we could be doing. Of course, when we try to look at these things and when we build our workshops, we come up with a lot of ideas, and some of them are obvious, some of them not so obvious. We try to rate them, of course, on the feasibility and the attractiveness. How easy can it be done? How attractive is it from the market, the growth, the size, our ability to compete, and so forth? Some of these trickle up. I just want to make sure also, this picture is illustrative, but it shows some of the thinking behind some of these places where we are investing right now. If you wanted to know what those other blue boxes are, I can't remember actually at the moment what would be the second best one, but there are more things in the pipeline. The other thing that we need to think about when we do this is that we need to find the right balance between the existing core businesses and the new business. We need to make sure that we don't lose focus or that for some reason we are relying on limited resource in certain areas. There's always a focus on making sure that we will continue to be the leader in short-range wireless and cellular IoT before we start thinking about new things. We like to target lower investments options, and I'm sure that makes sense. Some of them are also lower revenue in terms of return, but short and small options are good to do. We want to be able to quickly react to industry events, if that be M&A or other things. We were successful building our organization in Finland on the backs of massive layoffs of mobile chipset designers when two big companies exit that business. We were able to get immediately access to Imagination Technologies' Wi-Fi assets and team when they decided that that wasn't something they wanted to do. There may be other of these opportunities that comes in the forward, and we'll be adapting and looking at that and see how they fit in the strategy. Finally, we also do skunk works. We have small teams that works on things that a little bit uncertain about could be a market, but we want to be early on. To give you a little bit more on the details of the product strategy, back to Kjetil again. Sure. Looking at the product strategy, we can't really do that without, again, looking a little bit at what we have done over the last couple of years. As I alluded to earlier, our short- range product strategy has really been about developing a broad range of IC covering all the needs of the different application. Since the 2015 introduction of the nRF52832, that product lineup, if you include the nRF5340, consists of eight devices, and even more if you count all the different smaller variation that we do to target various strategically opportunities are out there. We spent these years adding value to the series. We're not just spinning and spinning, but we're constantly adding more value, either through improvements of hardware or in software, to cater for higher-end devices or optimizing for more constrained applications. On the radio side, as we've been discussed, we started out with Bluetooth, but we have since added new protocols when we see there's new initiatives in the market where we want to play. Recently we've done things like Bluetooth Mesh, Bluetooth Direction Finding, Thread, Zigbee, and most recently we also started to look into audio over Bluetooth LE on the safe type of products. We are the industry leader in terms of power consumption, performance, and features across this portfolio. Something we clearly have seen has been appreciated by our customers. We aim to strengthen that leadership, obviously, when we spend major efforts on our next generation SoCs. We also have to talk about the software and what Svein-Egil referred to as the interface in his previous slides. This is actually equally important or not more important when we are out there trying to win the hearts and mind of our customers and their engineers. Over the past years, we have done a major makeover of our software offering to really have a unified common experience across all our ICs and different wireless technologies. We also made sure that the platform is not only scalable across our breadth of portfolio, but also for our customers and their application. At the heart of this is a modern open- source real-time operating system for constrained devices. It's called the Zephyr RTOS. It's governed by something called a Zephyr Project, where Nordic saw an early opportunity to come in and influence and took a platinum membership alongside company like Google, Facebook, and Intel to really drive the innovative OS for the years to come in IoT. We will continue to drive this forward for the years to come. It's also in this kind of open- source and modern places of software where we meet the new breed of developers and encoders out there, who comes from a different school than what we did many years ago. They have a totally different approach to how they develop a code, how they maintain code, how they share between them, and how they distribute their work. As we're moving into other technologies, we aim to follow a lot of the same winning product strategies, both from the hardware and the software side. In cellular IoT, we have started with the nRF9160 and worked to strengthen both the product robustness and software performance over the past years. Going forward, we will only expand and add more complex devices that also cater to more cost-conserving cellular solutions. Just again, to make sure that we have the right products for the right customers in the right market space. With power management, we introduced our first nPM1100 earlier this year. We have stated that we are committing to building a family of power management products. That's for a reason. We want to help customers solve their real problems and really believe we need a family of devices to cater to all the problems that our customers are seeing and unlock the ambitions that we have on power management. Lastly, when we're looking at our customer base and the markets we're in, that's where we find a lot of opportunities for Wi-Fi. We don't see any reason why our approach to Wi-Fi wouldn't be different. We haven't yet launched our first product. Going to talk a little bit more about it in a few seconds. There are existing opportunities in our customer base and market verticals. Yeah. A similar approach will be applied there. In the end, we will have a product family of Wi-Fi devices to cater to different needs. Looking closer into power management, we actually believe that we are somewhat on a home turf. Micro is seen as a new product, but for us, we already have extensive expertise in this domain, from power management built into every nRF product that we have had throughout the years. We also have a deep understanding working with our customers to understand how the full system works. Svein-Egil showed an example of the Thingy:53 that mimics a real-life application. We have that understanding, and we now see an additional opportunity to bring that experience externally, adding more value-added features, and to save more board space and build materials for our customers. We're very excited for what we're doing in this space. One of the intuitive approaches to think about wireless is that wireless is portable, and portable is battery-driven. If things are battery-driven, they will need a power management solution. There's a potential for a very high attach rate to our own devices when you're starting in this space. We started with looking at the rechargeable batteries because we have a good footprint in markets that require rechargeable batteries, and we'll expand on that looking at different battery sizes and types. Beyond this, we also see a need for power management for all kind of non-rechargeable primary cells, and also in the future, looking into energy harvested solutions where we can get rid of the batteries once and for all. We're also on the home terms in terms of customers. The PMIC lineup that we're doing is fully complementary to our existing products. With Geir's excellent sales team and our customer reach, we see, again, a high potential if we can start to bundle this with our SoC sales. Moving on to Wi-Fi, I have to say I will not yet at the stage where we are comfortable in sharing a lot of product details. We haven't launched yet, and for competitive reasons, we do not want to share a lot. What I can say is that when we acquired the Wi-Fi teams and assets from Imagination Technologies, we said we couldn't expect revenue until 2023. What I can say today is we're on track for market introduction of our first Wi-Fi 6 product during the second half of next year. This is obviously a major milestone in achieving revenue already starting in 2023. Getting into the market early for us is very essential. We've seen from other technologies that harvesting experience and gaining experience in new technologies is very important for us. Getting to the market early, we will seek to find this experience where we are selling our existing SoCs today, and we have customers already. While we are doing this, we will move forward with our plans to bring Wi-Fi into the Nordic IC and software platforms, basically working towards one experience, many technology. That goes across Bluetooth, Wi-Fi, and cellular. We will also repeat some of the things we have said before. When we acquired the cellular team and built cellular components, we said we are going to marry the low-power DNA of Nordic with the cellular competence of the team in Finland. Now we're doing the same thing. Obviously, it's the low-power DNA of Nordic with the new Wi-Fi skill set from the new Nordicers that came on board from Imagination Technologies. Obviously, with most wireless standards, Wi-Fi is evolving. You've probably seen that beyond Wi-Fi 6, there is a Wi-Fi 7, and beyond Wi-Fi 7, there is something new. Innovation in all these standards that we are is very important to Nordic, whether it's come through standardization or through working with customer and understanding how we can help solve their problems tomorrow. We believe also for Wi-Fi that this will grow into a solution where we have a family of products, some that are tailored towards certain market verticals, towards certain customers, and some that are tailored more generic and broadly. Before leaving the floor back to Svein-Egil, just a few words on our cloud-based services. Now, there's sometimes the misconception we are not going to build a cloud. We are not going to build an Amazon cloud or a Microsoft cloud, but we are building services that resides in the cloud. This is not all new. We have been having and developed an extended cloud-based developer experience for many years already. Any engineers who have touched on our cellular solution have at some point been in contact with the nRF Cloud. This has been a good learning curve for us to understand how the connectivity from the device to cloud can be optimized and how we can leverage that to build value-added services. We're also learning that going up in service business is different than selling ICs, both from a go-to-market model and from a business model. Here we are, in essence, taking part of the lifetime of the product. When you're selling IC, you sell the IC, and the customer go away. When you're doing services, you're participating in the life of the product, continuously doing update, continuously doing services for those products as they move on. This is obviously, they have obligation in terms of operation 24/7 support and all that. The flip side here is if we do this correctly, it can generate a long-term recurring revenue stream for Nordic. We launched our first services this summer. It was around Location Services. That's basically about expanding the location capabilities built into our nRF9160. We have a lot of customers in doing asset tracking and tracking assets of various forms. If these customers start using these services, they can either get rid of the GPS and do locationing basically out of the cell tower and the cell infrastructure, saving important power consumption for their batteries and the long lifetime. If they are using GPS for getting very good accuracy, these services can allow them to get quicker fix. I think if you guys are working with Garmin watches or Suunto watches, you know that getting fixed early or waiting for two minutes, three minutes to get that fix, a huge difference. Now that we have started to have this in place, we're gaining this experience. We envision, obviously, we can have more services where we have this device-to-cloud perspective. This is where we really can differentiate on performance and add value on top of the ICs, the red line that Svein-Egil talked about. Whether it's firmware or over-the-air updates, device management, or other things, we want to help those customers over the lifetime of the products. There's also an opportunity here to expand this into the short- range side. In cellular, you need a cloud connectivity. As we move from a known consumer to a non-consumer for our short- range side, we see a lot of our customers are in demand of similar things. We obviously want to go there and expand. A Bluetooth device cannot connect directly to the internet, so need a gateway. Beyond that, there isn't any real difference between the cellular and the short- range side. We want them connected and managed those over their lifetime. Building on all the things that I have talked about today, we do want to become this one-stop shop for our customers, where we tightly integrate services from the device all the way up to the cloud. With that, thank you for your attention. I'll hand it back to Svein-Egil to wrap this part up. Thank you, Kjetil. Svenn-Tore talked also about what we're doing in terms of investment for R&D. Of course, investing in R&D is how we think we can reach the targets that we aim for in the coming years. I sometimes talk about R&D spending, and I think that sometimes one can feel that R&D is like this bottomless pit. It doesn't matter how much money you put in, how much effort you put in, nothing comes out. I'm sure maybe some of you invested in those kind of companies, right? Where you felt that nothing ever came up. Sometimes I feel that, too, actually, when I'm frustrated, that it takes a lot of money and a lot of time to get somewhere. Typically there is a plan. When you look at us and how we work, there's history, right? Hopefully we can replicate a good plan and make another good history out of it. Just to bring it home, I brought this image of how our long lifetime of the product actually works. It can be a little academic, and I don't want to be the professor here today to teach you about how things are to show you understand about these things. There's a couple of things I want to highlight on this picture. Now, first of all, the biggest investment goes into getting the first device out. That's the plan, and we put a lot of effort into getting something out. We move that device to production. Typically, in the families, and you've seen the families that Kjetil pronounced, we go ahead and develop subsequent devices in the same family, which require less investment because they leverage a lot of the existing hardware and software that's already been made. Over time, our R&D involvement gets smaller and smaller. We do smaller new variants, maybe package variants, so forth, until we actually stop doing any work on the family at all. As from a revenue point of view, after you move to production, there's a ramp, the ramp can be either slow or faster, depending a little bit on product, it does take some time before we get revenue. As you get in a steady state, revenue keeps growing, margins keep growing, you get in a pretty good shape. If you think about this in the context of nRF52 Series, we started that development on that investment in 2011. First device was moved to production 2015, and then subsequent devices came after that. Right now, in my team, we have very little attention on the nRF52 Series, although, as Kjetil's talked about, it hasn't even peaked in terms of revenue for us. If you think about that situation, that's a good example of how you want it to be in the semiconductor industry. This is when thing works very well. This is, as Kjetil says, what we're trying to replicate with the new things we're doing, significant investments, families and expansion, move on, make a lot of money, produce forever kind of thing. This is sometimes why things take time to get going because it is a big investment to get there, but hopefully if everything goes all right, it becomes very lucrative. We're continuing to invest. Since Tore said that, we're broadening our range of short-range devices, cellular devices. We're expanding our Wi-Fi portfolio, and we're building new products. When I look at the spending in R&D right now, more than 80% of all efforts go into products that will be launched in 2023 or beyond. Whereas the other parts of the organization is concerned about getting the revenues in 2022 and 2023, here in R&D, we really don't think much about it because we're all for the 2024, 2025, 2026, 2027 right now, as all our investments, all the thinking, all the planning that goes into securing the revenue that's going to take us from 2023 to 2026. I think that's something that hopefully replicate the picture we showed on the previous slide, by doing what we know works and branching out into new products. We had an interesting year. It was COVID, and we got new team members from many different locations. In fact, if you look at the R&D locations right now, we have nine new locations that came in 2021. We got additional locations in Finland and in Poland to augment the existing teams. We got two new offices in the U.K. out of the Imagination, two in Sweden. We got Taipei and our center of excellence for our Wi-Fi in Hyderabad, India. As a part of the PMIC investments, we also opened another office in Swindon, U.K. Nine new offices altogether. Of course, people have been asking is how can you manage? Well, we think we manage very well. Our company's always been used to working across offices, Trondheim, Oslo, then Trondheim, Oulu, then Trondheim, Kraków. Some of this is pretty similar. I think COVID probably made us even better working remote and working together. By having built very sufficient, and Katarina will talk more about that later, infrastructure for establishing offices and rolling it out, that's gone very well. I, of course, missed meeting the new team members face-to-face. I had the opportunity recently to go to U.K., we'll try and catch up and meet the people that work for us, and that would be great. I also think that when you looked at these offices, it wasn't just hardship, it was actually some very good things, too. Some of these offices, many of them are in great locations that we were thinking about before, and locations that serves as opportunity for further growth. Most of the R&D growth in the offices we have has almost been organic. Everything apart from the team from Imagination Technologies has been organic growth at Nordic Semiconductor, and we've been very successful in attracting great people, and our focus, and Katarina will talk more about it later, is on skills, experience, and passion. That's what we're looking for. We leverage a worldwide field of expertise, and we seek for diversity. If you go to a location, you will see that reflected. When we look at future growth, the new office locations, we will continue to recruit there as well, and we'll start to build and do the same things that we've been doing very well in the existing locations. We will also, of course, as I mentioned before, continue to assess inorganic growth opportunities should something come across that we think makes sense and aligns with our strategic planning. We are almost at break time, but before that, and this is because I'll say this, the R&D guys think they get a very little attention at these Capital Markets Day. They think we are sort of, okay, let's all talk about sales and all these other things, but I wanted to show you what we're doing. We sent a video team to Trondheim last week to give you a glimpse of what's going on and show you a little bit about sort of day-to-day things. Trondheim is our largest office, and it's also the place where we have the most cool stuff or machines and so forth. Oops. All right, this is going wrong. I'll fix that. Is it going? One more? No. Okay, it is going. Should I go one more back? Go one more back. One more back. Okay. There we go, and video time. Then again? Yeah. There we go. Of course, when you do chip design, there's a lot of people involved, and we have teams across various locations working together. In the beginning of a platform development, there's a lot about the IC development itself. Of course, our software teams are very deeply embedded early, make sure the software runs, and we get test manufacturing supply chain in very early so we can ramp production early. Some of the things that is very hard to get right and what we spend a lot of time is on low power. Making sure that the device we have can produce very long battery lifetime, be smaller batteries, and really being part of our DNA. That involves using old techniques and new techniques, mix them together, new innovation, making sure no one beats us on power. The other thing that we work a lot on, you've seen numbers, right? We got to be able to produce in high volumes, produce significant things, making sure it works in Sahara, making sure it works in Siberia, everything like that. Finally, we invest a lot in our tools, right? We invest in tools, we invest in facilities, and what you're just seeing here now is the new antenna lab that we have got in Trondheim, which gives us the opportunity to do better, higher-performing RF systems, and build those with confidence. We also have a very extensive FA lab, the failure analysis labs. It allows us to be having an extremely quick turnaround on any failure reports we get from a customer. Of course, it also gives us the ability, and our designers the ability to understand the physics of the thing they only simulated on their computers, to see what's going on. We are able to build our own test systems, our own boards. We run high- volume testing. All these things is what Pål will report on the capital spending, it really is, if you want to be a semiconductor one today, you got to be able to build great solutions with a great team, great tools, and great equipment. Thank you. Thank you, Svein-Egil and Kjetil. Before we break, I just want to give some practical information. Those of you on the web, you can already now start sending in your questions. Because we have limited amount of time for Q&A, we ask you to limit each participant's question to two questions in total. Also for you, Christoffer. Yes. We're ready to stretch our legs. For those of you who are here, you can get out, get some coffee, get some tea. There's a small snack as well. For those of you at home, I hope you can fill up your coffees as well. We'll see you back in 10 minutes. Welcome back. Hope you all got your blood sugar slightly raised. Our next speaker is actually the newest addition to the Executive Management Team. It's Katarina Finneng. She is our EVP of HR and Communications. Katarina has experience from several international companies within HR, public relations, and communications. Katarina, with that, I'll hand the floor to you. Thank you so much, Kine. I was actually reflecting a bit upon what we've heard so far today. It started off with a focus on revenues, numbers, and then we moved on to customers, and then we continued to products. Who uses products? People does. Who are our customers? People are. Who uses, hopefully, revenue and money? Well, we do, people. Hi, everyone. Everyone in this room, but also all out there on the webcast, all colleagues watching, and all potential colleagues watching. Also all other stakeholders watching us from elsewhere today. I am really proud of being here today together with my management peers, and to be able to address the actual fundament for all numbers and customers and products that naturally are in focus for such an event. In my two years here, I have come to know Nordic Semiconductor as an amazing company with such exciting ambitions, a challenging growth, fantastic people, and not the least, a true contributor to simplifying lives. That's also the vision of ours, simplifying lives through all things connected. This means that we are committed to IoT in everything we do, but not the least to the people using what we create. To guide us, we have our strategic pillars in full bloom, all nurtured by our people. The fabulous organization we have is continuing to grow from the fundament of our people engagement. That is what our people agenda is about. We have developed this foundation through a long history of innovation. In 1983, our four founders started our company out of Trondheim, which remains our headquarters and is our largest office to date with about 1/3 of all our employees. Two of our founders are still in the company, Trond Sæther and Frank Berntsen, working in key positions within R&D with Svein-Egil. For perspective, I'll allow myself to quote one of the founders, Jan Meyer, from the speech he held. The date was 22nd July 1983. Nordic VLSI was founded as a company of limited liability with office in Trondheim. Share capital was established. The founders bought 750 shares each and fully paid at NOK 100. I still have the document from the bank that approved my application for a loan of NOK 75,000 at an interest rate of 15%. Four other stakeholders bought 500 shares each, priced at NOK 200. That was the very beginning. The company had slow and steady growth during the first decades and employing several people that actually still work in the company today. What's quite cool, despite our enormous growth in the past years, we have a global company seniority average of five years. That's quite cool. This number is especially interesting considering the onboardings in recent years. We are now about 1,150 employees in Nordic Semiconductor, a rough doubling of our organization since 2017, and almost a 50% growth in FTE, full-time equivalents, during the pandemic. This is obviously challenging, and remote work has affected us all, everyone, not only new onboards. We are now speaking about reboarding in Nordic Semiconductor. However, we cannot rest on our laurels. Market trends actually predict higher turnover in general, and we're positioning ourselves to continue a modest turnover below 5%. In this competitive market, it is important to adapt to the ever-changing environment. With an even scarce talent pool that we are in, competing about, we need measures to continue building this history of ours. Compensation and total rewards with increased relevance towards our different demographics, work-life balance, new office location, increased leadership support, diversity and inclusion, et cetera. All in all, promoting a sustainable growth culture. To achieve this, our ecosystem needs to stay relevant at all times. Going back to 1983, the fifth person to be hired in the company was supporting staff after the four founders. From the small organization, which sprung out of the four developers in Trondheim, we are now truly global, as Svein-Egil showed you, and have continued to complement competencies to spend our time at what each competency area does the best to add value. To this day, approximately a fifth of all employees are non-R&D. When we speak of that, this picture is what's relevant to consider. We today have strategic presence in 17 countries across four continents. Perspective, awareness, and understanding of what matters and to whom, that is what we need to mirror for competitiveness and continued relevance. To further develop this, we need to be innovative, not only in our core business, as my colleagues have presented, but also to keep our competitive edge as an employer and for the relevant bandwidths in our market. Grasping opportunities accordingly is something that Nordic has several examples of from the past years. When technology companies in Northern Finland had to lay off people in 2014, which Svein-Egil mentioned earlier, Nordic Semiconductor quickly mobilized and carried out targeted recruitment activities. Finland's existing world-class cellular engineering competencies provided excellent opportunities for us in Nordic Semiconductor. We managed to rapidly onboard about 60 people in Oulu, Northern Finland, now having grown to almost 300 in four locations across Finland. Furthermore, with the acquisition of Imagination Technologies late last year, Hyderabad became an important R&D hub, for Wi-Fi expertise as part of Nordic Semiconductor from January this year. The team is responsible for all aspects of architecting, implementing, and validating Wi-Fi based on IP. There is a wealth of Wi-Fi experience in Hyderabad, with most Tier 1 Wi-Fi semi companies having a strong presence there. From Imagination Technologies, also the fundament for our digital design team in Hatfield in the U.K. came, and the Bristol team being established in parallel. They are both strong digital design teams with focus on Wi-Fi products. Furthermore, in U.K., also our Swindon team has been rapidly built up during this year as a center of excellence for power management, capable of expanding Nordic's PMIC portfolio. These positionings allow us to utilize the talent opportunities at all these locations, and such growth strategies are something we will also evaluate for the future. We need to evaluate that for the future. To achieve integration and further expansion Nordic style, I'll emphasize what Svenn-Tore already pointed out, that building our scope and competencies like this greatly expands our opportunity pipeline and long-term growth of possibilities. We will continue to add layers to stay relevant, focusing on all key enablers, including complementary competencies in our organization and our culture. This is crucial to be able to deliver on the growth expectations we have and driving and supporting the organization on enabling agility and resilience. It is, however, also crucial that we in general have a structured, proactive approach to how to best support the delivery on our overall strategic ambitions through employee engagement. To this day, Nordic has a history of involving our employees in our success, and everyone employed are continuously provided with short and long-term incentives, because innovation and success is based on our human capital and employee engagement. Finding out what matters most to people is important, and it differs depending on which phase of life they're in, where they live, and so on. This we are on to, and to stay attractive and competitive, we need to have that focus. With the relevant people framework and tools, we enable organizational empowerment and resilience. For people development, we need a systematic approach to succession planning and growth management, with focus on all relevant competencies. We will develop our organization by staying aware and revisit and adjust how we work for best efficiency according to our continuous expansion. Attracting and retaining the right people require employer branding visibility, diversity approach, and inclusion. Nordic Semiconductor is strongly acknowledged within connectivity, and we have accelerated our efforts to continue to be attractive in fierce competition also in the future. I find it even more satisfactory to see our efforts pay off. With increased focus on ESG factors, we proactively have worked to build capabilities for a sustainable approach overall. Across the 17 countries where we have strategic presence, we are in total 57 nationalities. A crucial part of the organizational balancing act is the fostering of diversity, equity, and inclusion, in the meaning of everything from different perspectives in mind to the traditional gender approach that often are in focus. These are all actions for in-house focus when we speak of ESG and something that we are in control of ourselves. As mentioned, we are a fabless organization. This also means that we are exposed to an extensive value chain where we have less impact. However, we work actively to utilize potential impacts both down and upstream our value chain. With this, we enable our customers to make sustainable solutions for people to simplify their everyday lives. In other words, working closely with our nearest stakeholders, we try to have an impact further up and down the line as well. That is really important. As Svenn-Tore mentioned, we are strong believers that disruptive IoT projects can contribute immensely to the sustainable development goals set by the UN. That's why it's also crucial with a systematic approach to what to prioritize for us. What's most important for our stakeholders, where we can make a difference, both of that matters. Our analysis shows that number nine, IoT innovation, will let us utilize our contributions the most. However, the selected other five are also in scope to deliver high value to our stakeholders and to the society at large. When produced and applied, our products have the potential to deliver a large positive impact to society. Therefore, we stay and are committed to develop the connectivity that can enable these things to lower power consumption and utilize other sustainable opportunities. As mentioned, our strategic fundament for this is employee engagement. To illustrate how we foster that to contribute to the bigger picture, let me introduce you to the perhaps the smallest of our sustainable solutions. Working with ESG is about actively contributing to the shift to more sustainable businesses. In Nordic Semiconductor, we consider this to begin with ourselves. It says NRF Honey. That's actually our colleagues that have named this jar of honey NRF Honey. NRF, that's another thing, because when I started up in Nordic Semiconductor, I couldn't really get why our products were named NRF. Do you know what it stands for? Nordic Radio Frequency. Fine, NRF. NRF Honey. By the way, afterwards, we have 10 lbs up for grabs amongst you guys. If you like honey, please come by. It's first come, first served on the little table over there. It is harvested from our roof in the Oslo office, these particular jars. You have to taste it with honey flower from Vigda, mainly, I presume. Our beehive project, where this honey that our employees named NRF Honey comes from, is a small contribution for the greater good. The project increases awareness and engagement internally, and exemplifies the impact our engineering competency can have by demonstrating generic IoT application, including machine learning. Yes, our largest contributions begin in the small. Our chips are tiny little things with great impact. The examples on this slide show sustainable solutions that effectively contribute to nature, environment, health, and education. There are other crucial actions, too. Reducing emissions, that we mustn't forget. In Nordic Semiconductor, we have negligible direct emissions of our own, like on-site fuel combustion, et cetera. Our Scope 2 emissions are indirect emissions from the electricity we purchase and use, and are factors which we can have a direct impact on ourselves. Our ambitions are to remove all Scope 2 emissions by 2025, and backed by renewable energy certificates, we already from last year see a significant development in the right direction, which we're very proud of. However, the greatest footprint is actually from the way the production up the line. This is also a concern of ours and something we work to contribute to. Because of the increasing consumption in the world, we work hard to decrease emissions per device, and that we are succeeding in. Our long-term ambition is therefore also linked to the overall emission footprint and to a contribution for supplier carbon neutrality in 2030. Stakeholder collaboration is therefore key, as in all other aspects as well. To sum this up, all in all, our stakeholders are many, and we share a fundamental commitment to all. We commit to deliver value to our customers, investing in our employees, and to generate long-term value for our shareholders. It is also important dealing fairly and ethically with our suppliers, and we're dedicated to serving as good partners. We respect the people in the communities where we interact and protect the environment by embracing sustainable practices across our business. Each of our stakeholder is essential to us. We commit to deliver value to all of you for the future success of our company and our communities and our people. With that, I thank you for your attention. Thank you, Katarina. I sure hope no one else likes honey, so I'm going to grab one if no one else wants. Our next speaker is going to talk about a topic that's close to my heart, obviously, financials. Pål Elstad joined Nordic Semiconductor as a CFO in 2014. He has broad experience within finance with an international focus. Pål, when you started in Nordic in August 2014, the share price was actually NOK 33. Yeah. It went quickly to NOK 37, and it stayed there for quite a long time, unfortunately. I think when I started, we had one customer, and then we had two customers, and then suddenly we had three, and customers came and left, and then therefore the share price went up and down. Now we have 10 customers, big customers, and we have the whole long tail still supporting us. We're a completely different company now than from seven years ago. Great. Yeah. I'll leave the floor with you. Okay. I am going to go to the financials, or not directly the financials. I want to spend some time recapping what we said in the Capital Markets Day in 2019, so two years ago. I think it is important to set that as the basis for discussing what we see for the future. In the Capital Markets Day for two years ago, we presented sort of a $1 billion target in 2024. We have obviously seen that the strong growth we have had since has pushed that or pulled that earlier. At that time, we estimated sort of a 32% growth over the year, mainly split between a strong Bluetooth growth of 20%-30%. We said a small or a modest decline in proprietary, and then a cellular IoT that would ramp and become soon as big as Bluetooth. I think we all know that hasn't happened yet. How it actually ended up, we all know that we had the very strong growth over the period of 46%. It was, of course, driven by the Bluetooth growth of 54%. Proprietary, incredibly, 16% CAGR over the period. Of course, with the home office boom we had last year, a very good market to be in. Cellular, small numbers still, but we actually have $13 million the last 12 months in cellular, so we commented on the Q2 presentation that we are seeing meaningful revenues, and we definitely are. Geir also mentioned the customer opportunities we have in cellular, so that will come. Gross margins, very briefly. On the Capital Markets Day, we presented a target of 45%-50% for the short- range. We said that cellular would be 35%-40%, then the blended gross margin would be somewhere in between. What has happened? Well, we've consistently had gross margins above 50% in this period. Actually, last quarter it was 53%. How we've been able to do this? Well, I think it's mainly the fact that we've had this high share of complex high-margin products balancing off more influx of Tier 1 customers or larger customers. I think when we guided in 2019, we saw a stronger price pressure and a pressure for going for smaller or cheaper products. R&D intensity quickly, probably the most importantly, right, Svein-Egil? At that time, we were spending 27% of revenues in R&D. That was a mix of close to 20% in short- range, we were also investing around 8% in the cellular business with zero revenue. We did communicate expectations that R&D in absolute terms would increase. With R&D intensity declining from the peak level. I think we can see on the slide that's really what happened. Last quarter, we were down to 22%, so still a strong, good number. Just briefly on SG&A, all our other costs, we communicated that the expectations of significant operational leverage, SG&A at that time was at 15%. We were looking for it to move down to 10%, that's really where we are, although a flattening curve due to the current revenue constraints is seen in the last quarter, as I commented on the Q3 presentation this morning. Last time in 2019, we commented on the mid-term or long-term EBITDA margin of 20%. During this period, we've gone from overall 9% to the current 19%. How have we been able to achieve this? Well, it's of course the high revenue growth combined with better than expected gross margin and really good cost containment and operational leverage in the entire business. As Svenn- Tore told you earlier, we are continuing our growth journey and are setting ourselves new long-term targets that I will come more into detail with. We have seen an increasing demand and revenue across all our end- user markets over the past years. I'll now give a little bit more light on this, even though this has been discussed previously in the presentation. Over the last years, we've seen a shift in the end- user markets that our products serve. Although we do see growth in all markets, I will highlight a few of the main points. Consumer electronics, including PC accessories, has shown solid growth and remains the absolute biggest end- user market. Building and retail is the one that's grown mostly the last years. We see even higher growth over the last few quarters, reflecting both industrial and home automation products. Healthcare, very important market, had seen short-term strong demand for COVID-19 applications. Although most of the COVID effects might be as a catalyst for more connected healthcare devices, that will be a big revenue contributor going forward. Both building and retail, but also healthcare, include a significant part of consumer-related or consumer-driven applications like smart home and personal healthcare. We're preparing a change in how we report our markets, to better reflect the demand across the end user of the product. We will start to split more between consumer and non-consumer. This will take effect from 2022. As I mentioned, the change that we discussed on the previous slide has occurred over the last few years. I think we've tried to show here a rough approximation between customer, industrial, healthcare, and other products over the past few years, showing that consumer-driven products and applications account for roughly 70% of our revenue today. Although Industrial IoT and healthcare have been increased in importance, we believe these areas are still in early stages, and areas such as building automation, logistics, asset tracking, and drug delivery and disease monitoring systems will hold great growth potential going forward. Although we continue to see solid growth for the consumer business, we therefore expect that the industrial and healthcare will make up a significantly larger share of our total going forward. We put up an illustration for 2026, where we believe these areas can be probably at around 2/3 of the business, and consumer will stay at about 1/3. We are investing in new technologies for the long term. Svein-Egil showed the slide, I'm not going to spend much time on it today. 97% of our business is related to the short- range part of the business. We are investing 40% of our current R&D in new technologies, and we believe, without being exact, that going forward, a much bigger part will come from these new technologies. Okay. Svenn-Tore talked you through our revenue goals in this presentation earlier today, with a target of $1 million in 2023, and an ambition to double that by 2026. We believe this allows us to revise our target operating model. We've earlier talked about the EBITDA margin of 20% that we guided for in 2019. We believe our revenue growth will generate scale economies and operational leverage, enabling us to move towards a 25% EBITDA margin within the guided time period. How are we going to achieve this 25% EBITDA margin? Well, first of all, if you look at the gross margin. Gross margin is now becoming much more complex, because the span in our products is longer. If you take from the cellular module business, where we sell a module, where we have to share the content with other vendors with the lower gross margin, to the short- range, the Bluetooth, and then finally some of the new technologies, where we do see significantly higher gross margins. Of course, the cloud services on top of that. We will not try to calculate the blended margin, but as we discussed during the presentation, we invest heavily in innovation and IT, and we expect to get return of at least 50% when we sell these products. That, we believe, is a fair assumption to take. Also, of course, increased scale should then push SG&A percentages down below 10% and allow for continued high R&D spending at 15%-20%. Sum up all of this, we should be able to move towards 25%. Yeah, very briefly on CapEx. Being a fabless semiconductor, CapEx is of course limited to the test equipment, the labs that Svein-Egil has been showing today, software for design, and also some IT. Historically, we've been investing around 5% of revenue in CapEx, both related to the test equipment and the labs. A lot of these investments are already done. If you recall, from 2019, we did some serious investments in our lab in Trondheim and in Asia. Going forward, we expect the CapEx intensity to be around the level we saw in 2020 of 4%. We've been focusing on our operating margins throughout the presentation, so I'll turn a little bit to resources and cash, and use of cash. Starting point will be last CMD again. At that point, we communicated limited cash-generating ability in 2020 and 2021, but expectations of improvements going into 2022. This actually corresponds to how we've been performed during the period. Overall, we've increased our cash balance by NOK 160 million. However, we did a capital raise of NOK 121 million, so net capital and low cash increase in the period is close to NOK 40 million. This came, of course, as effect of strong EBITDA, reduction in net working capital, and good ability to generate cash from our operations. However, net cash flow in 2021 has been around zero, because we are investing heavily in the business. Therefore, it's important to keep flexibility for financing the operations going forward. My second last slide on finance. I think in the last Capital Markets Day, we commented on the need to have a solid cash position, and that we should have at least one year's R&D spending in cash. At the time, we were just above that target. Since then, we've issued more equity. We've had solid or very positive cash flows. We now have a cash coverage of 2x. Given the current phase the company is in, the growth ambitions we have, we believe this is the more correct level going forward. Finally, my slide on capital priorities. We want to balance our growth funding requirements and shareholder distribution, of course. With improved EBITDA, I just talked about, strong cash conversion, and tight capital management, we're set to improve cash flows from 2023 and onwards. We will continue to reinvest in R&D for the long-term perspective. We need to have a strong balance sheet that is required to ensure flexibility and resilience in the challenging market. We are also exploring M&A opportunities. We did a small one last year, but we do see a lot of good things we need to explore more. Based on the improving cash flows expected, we do allow for evaluation of returning cash to shareholders in 2023. That is all I have on finance. I think, Svenn-Tore, you are going to have a few sum-up words before we turn to Q&A. Yeah. Thanks, Pål. Very good. This is more a recap, but don't forget, we still have high growth ambitions. We are not holding back on investment. Despite the fact that we have this situation with supply chain, we are going to meet the goal, as I said earlier today, $1 billion in 2023. We're aiming to more than double revenue from 2023 to 2026. It's exciting times ahead of us. The whole day, or whole afternoon, I'm sorry, has been about Nordic Semiconductor being a globally leading IoT enabler. I think it's extreme important that technology and customer-driven growth are very much supported by mega trend. We are the leaders today in short- range. We are positioned to be the leader in long- range. We are going to tap into the Wi-Fi market medium- range. All the mega trends are supporting the direction we are heading. As I said, we are continuing to invest. This doesn't come easy. We basically need to drive it, and that's what we're dedicated to do. We have the board behind us, but I also think we have the investor behind us because if you saw how big this pie will be in 2026, did anyone recall that? The pie is widening. We are going to take market share of that large pie. Katarina went through, we can't do this without the right people, and we are certainly becoming actually pretty attractive as a place to work. There is good values in Nordic Semiconductor. We have extremely exciting customers, and we have leading technology. It's the right organization to go to if you want to have success in your work life. Finally, but not least, we have these long-term financial ambitions. Reaching $1 billion just in two years could seem aggressive, but with our customer base, with our commitment from vendors, we feel safe enough to bring that year ahead. It doesn't stop there, and that's maybe the most important message we try to give today. We are not satisfied being a $1 billion company. We will never satisfy being NOK 1 billion company either. We strive for more, and we get more and more proof that it's achievable. By this, I would like to open for questions. Have a look. Maybe before we do that, I would like to thank my management team that did great presentations during this afternoon and ask you to come down and respond to any questions. You may let her. I'm glad you could let her. I think we'll do alternating question from the web and from the room here. We're going to start here. Ståle Ytterdal will come around. If you have a question, raise your hand. Can we hear some voice here? Yes, there we are. Yeah. Christoffer from DNB Markets. Yeah, as you said, I have a lot of questions, but I can start with one and then come to the back of the queue. I'd already like to be very short or near-term focused, but there's been a lot of focus today among investors that I've been speaking to, at least around the slowdown in the order intake. On the other hand, you're really, really bullish on both 2022 and 2023. Before you go ahead, I think better off the mic. Where it's so noisy, your question, I don't really get it. You can't- Try to speak clearer. All right. All right, I'll try. I'll try. Yeah. Again, a lot of focus today has been on the slowdown in the order intake for the company. Then on the other side, you are really bullish on 2022 and 2023 revenues. Could you maybe give some more clarity on the dynamics in the order intake dropping from Q2 to Q3, and why that is not indicating that the momentum in the business is coming down, why you are still very confident, not only on 2023, but on 2022 revenues, so to say? Yeah, we can do that. I think that is a good question for Geir to answer. Sure. I think I'll use the microphone. Here. There's another one. Actually- That's all right. Thank you. All right. Basically, when we adjusted up the lead times, like I indicate in my presentation, you then had customers placing orders for well into 2022. They have growth ambitions, the orders were bigger, of course, because they incorporate new growth. A lot of it was driven by psychology. We've done work with the Tier 1 customers to basically say, "Okay, linearizing supply in 2022 is a focus of ours. We don't need an influx of orders beyond what we already have communicated, which is 52 weeks." What you see now is a balanced view of the order backlog. This is then representative of where we are going to be. If you look at the backlog, which is $1.3 billion, there's a lot of parts to be shipped. As I mentioned, demand outstrips supply, we don't need to add a lot of extra on the backlog. You don't need that to grow to $2 billion or beyond. It would just create a picture of something which is not correct. This is basically a balanced view that reflects the current situation of the company. Slowdown, as you see, is basically us managing the backlog with customers. All right. Thanks. I'll go to the back of the queue. Okay. We're going to take a question from the web then. This might be for you, Pål. Will Nordic Semiconductor be actively looking for acquisition and/or merger opportunities? If yes, what kind of entity is of interest? As I mentioned, we are looking at M&A alternatives. We also talked about that when we did the capital raise a little bit more than a year ago. Nothing concrete. It's more to work in these technologies we've already spent the whole day discussing. There's nothing concrete to talk about today. We do have things we're looking at. Øystein Elton Lodgaard, ABG Sundal Collier. I have a couple questions on the power management IC. How many of the products that your short-range and long-range chips go into do you think are addressable for the power management IC? How much have you assumed that that should contribute to your revenues in 2026? I think Kjetil can answer that best. Thank you for the question. In terms of what I said, we basically need a line of a product to kind of bring up the attach rate to meet our ambitions. We have started out very small. We are catering for a certain type of rechargeable batteries, for a certain kind of customer, and certain kind of market vertical. As we build up this family to more products and more opportunities, we will bring the attach rate up. We haven't said how big this attach rate would be, but we do know that the majority, if not all customers, need a power management of some sort. Obviously, we're up against competitors. We're up against people who have done this for a long time. We really need to bring in our expertise and show that we have a value play in this market before we can drive up the revenue. In terms of how big and what our ambitions are, we haven't been very vocal in stating that and I'd like to keep it like that. I think you will see more products coming from Nordic Semiconductor, and you will see that we start seeding the market. We showed the Thingy:53 as an example, but we know from experience that what we show as example and bring out as development platform to customers, a lot of those customers take them and just productize them. Obviously eating our own dog food, as we call it in our industry, is what we're doing. Putting the PMIC next to the nRF wireless chips on all the stuff that we do will help us accelerate this. We are not saying anything about the sizes or our ambitions here. We can also say, Kjetil, that it will be seamless interface between other radio and Nordic PMICs. Basically, if you are a designer, you can just plug and play, which you might not be able to do with a third-party PMIC. You got one more or no? Okay, we'll go back to the web then. We have a question from Robert Sanders in Deutsche Bank about cellular. In what year will cellular IoT cross the $100 million per annual revenue? We haven't put it on the slide. Since we're looking already five years ahead. What you saw was that we basically saw a huge contribution from other products than short- range in 2026. It'd be somewhere between, I would say, 2023 to 2026. We expect it to be closer to the 2023 number. Okay, should we go back to Oslo questions? Oh, yep. Kristian Spetalen from Arctic Securities. I have a question about cellular IoT, because you said that this will be a substantial part of your revenue targets, right? Are there any bottlenecks or regulatory certifications or anything that needs to be resolved in order for this to materialize? Maybe Svein-Egil can answer that best, but currently we've done most of that work. Yeah, I think that I'm just trying to think what we presented before. Did we have an update on any of the quarterly presentation about the certification status recently or not? No, we haven't. To date, we showed all the operators that we are certified with. I think that what you're saying is that we have the coverage pretty well taken care of, right? There's a continuous work ongoing for certifications and regulatory so forth. As far as I look upon it, we are where we want to be with the carriers right now. Also the scarcity in design activity is going strong. Yeah. I don't think that's a bottleneck now. We cover both Europe, U.S., Asia. Thank you. Okay. We'll go back to the web then. Let's move on to a few BLE questions. This is a bit of a math question. If BLE is a $3 billion-$4 billion market by 2026, and you take 40% share, does that imply $600 million in revenue from diversification efforts by 2026? I think, Svenn-Tore, in 2026, if you look at the slide, we haven't highlighted exactly how we split revenue in 2026. Of course, we know there's going to be a strong growth in BLE short- range. We have the cellular IoT, we have the PMIC, et cetera. We're not giving a specific guidance for 2026. We don't. If we stick to what we say about following market growth, and if you calculate where we basically will exiting 2023, you will see that wouldn't be too far away from reaching a higher number than our ambitions for total business in 2026. Just do the math. Okay, let's move back to any questions in here. Yeah. This is Christoffer again from DNB Markets. Sorry to have to ask at the end, just to be completely sure that I understood what you meant. In terms of the dynamics in the backlog and the order intake, what has essentially happened is that you are now saying you'd not want to take orders with longer than 52 weeks' lead time, hence there is one-off adjustments as the duration doesn't expand, which means that order intake comes a bit down. That doesn't mean the momentum is slowing down, you're going to see that trend continuing. Now we're at a new level that represents actual underlying demand, that will continue to grow going forward. You know what I mean? Yeah, it's a good description. As we are not market-constrained at the moment, we are supply-constrained. If you look at current backlog, we know we won't be getting 2022 supply that covers current backlog. Right. I'm sorry to hammer this a lot, but some would compare some of the order intakes you've been showing in previous quarters, and then compare that to the order intake in this quarter. Due to the managing of the lead times, those numbers are basically not comparable on an apple- to- apple comparison. If you go back a year, we usually had two quarters in backlog. Geir has- We have to look, how is the real situation? How did it used to be? It was two quarters in backlog. Basically, a lot of what is forecasted has turned into backlog because our customers have insured themselves. The point is, can you forecast correctly for end of 2023? I don't think anyone within any present business segments are able to forecast the need that should be exact enough to buy any components. I think typically when you looked at our backlog, it's reflecting the then current lead time. Basically what we've done, we extended the lead time, you establish a new level, and we're at a level now where you see the increase in our backlog through the quarter, less the reduction we've had through revenue. It represents the new normal. If we were to extend it to double that, then we would have this new bump up again, and then if we take it down, then you will see it contracting. The overall new level is there to reflect a new level of revenue in 2022. Yeah. Totally. Super helpful. Thank you. Okay, let's go back to the web then. Finance, can you discuss your working capital expectations until 2026? Pål, that's for you. I can give short flavor on today. Well, working capital is 19% of our revenue, which is historically low. The reason is, of course, that our inventories are way too low, actually. We only have less than half a quarter of inventory. We're really producing just in time. At some point, this will increase, we've historically said working capital at around 25% of revenue, we stick to that level. Yes, working capital will increase when supplies ease up. Great. Yeah. Christoffer, you never give up. We have two more questions. Well, I think. we have time for. Yeah. Isn't it 20 minutes left? That's a lot of time? We said six, we're already over time. I'll give you one more, and then I'll give two more on the web. Yeah. I was thinking, maybe it's a long shot, but maybe you could comment a bit. You talked a lot about the technology roadmap in terms of strategy, but not too much on, for instance, process, nodes, those kind of things. What are your plans there? When should we expect you to go down the road? Where are you headed? What kind of level are you going to? That would be very interesting to get some thoughts on. I think Svein-Egil can respond to that question. Is there a mic or is there no mic? There you go. I think it will be very interesting too, but it's really one of the things that we don't want to talk about because we want whatever we do, which is many years ahead, to be company proprietary information as long as we can. Yes, we are working on new platforms. Where and how they're going to be developed, we haven't announced yet. I hope that we don't have to do that for a little bit long. Many years? Not many more years. I don't know maybe we will. Okay, let's do a question on gross margin. What are the puts and takes of maintaining margins at or near 52%+? Will high volume shipments be diluted to margins in the next 12 months? What will be an offset to this going forward? That's actually three questions in one. Yeah. I think the real situation is that we are selling more of our higher-end chip with higher feature and more IP, and obviously customers are willing to pay for more features. As our mix of ultra low cost, low IP is less, basically the margin will increase. Okay, last question here. Last questions. Okay. Last question. Last question, sorry. Okay, what does longer-term success look like for Nordic Semiconductor in Wi-Fi and PMIC in terms of attach rate to nRF or in revenue contribution terms? At this stage, what do you see as the biggest hurdles to achieving those ambitions? I think everyone's looking at you, Kjetil. Yeah. Sure. Starting with Wi-Fi. Part of that answer. Yeah. I can answer the question. We started with Wi-Fi because there was a real opportunity, and when we made the acquisition of the assets and the teams, we talked about this being one of the most asked about feature among our customer base. Obviously we don't go into that space without having a plan for how we want to grow this with customers. It is a new technology to Nordic Semiconductor, and we come in where there's established players. Outline kind of a outline of how we want to approach it with the harvesting some experience, bringing it into the Nordic platform, and kind of using the wealth of experience we have in the wireless also for Wi-Fi. Again, we are not outlined our ambition in terms of volume targets or how we want to see it, Wi-Fi is a substantial market today, and we see a lot of our customers needing it, needing cellular, needing short- range, and needing Wi-Fi. We think we will be able to grow there. Just to add on that, I think that if you look at it, what can go wrong is the ability for us to make a product that is actually good enough for the customers. We sometimes take it for granted that we can always do that we can always make a short-range product, a cellular product, to make it. If you're going to play in this space, you got to make sure you get it right, and you got to make sure it's interoperable. Therefore, we're investing significantly in making sure that we make product that works, because Wi-Fi is a notorious space where a lot of components doesn't work very well. We need to make sure there's a product that works, and it connects to routers every time, and there isn't a lot of problems with it. Making sure it works, is the mantra that we're singing through R&D right now. I'll do the final leg of this answer. We are a company now that have long- range, medium- range with Wi-Fi, and obviously short- range. Nordic Semiconductor has ability to make a complete module, mix and match of these different technologies. We might have some customers that have some of this on their bucket list. We can put this together. Okay. I think. Do you want to say something else? No? No, that's it. No. Okay. PMIC as well. I can add to that. Yeah. Should I take PMIC? Yeah, please. Yeah, okay. Yeah. For power management, situation is a little bit different. We are talking to a lot of customers. We are selling, as we talked about, the central component on many of those applications. That's where the focus is, right? We now come with an extended offering where we really look at the system coverage on how can we optimize between the PMIC and the wireless SoCs that we do, whether it's short- range, cellular, or future Wi-Fi. We kind of optimize that from a systems perspective, and then we use the same goal, sales team, and the same strategy when we're selling that central component to also explain the benefit of doing, let's say, a bundle for Nordic. That's kind of where we're going to spearhead power management. Think about it initially as complementary to what we're doing. If we're successful, obviously we can branch above and beyond being complementary and start to attack verticals where we're not playing in the wireless space where there's even not any wireless. That's beyond the initial success. First thing first, we have started very small with our first product. We want to expand that portfolio and then take that step by step, and hopefully grow that to something that is fundamental to where we want to be. Great. With that, I want to thank you all for attending both in Oslo and on the web. You can always tune in to the presentation and watch it again online. If there were questions that weren't answered, you can always reach out to our IR team. You'll find their contact on the web, and we look forward to seeing you again. Thank you.