Welcome to Nordic Semiconductor quarterly presentation for Q2 to 2021. Pål Elstad and myself will show you what happened through Q2. Pål will dive into the finances, and I'm going to show a little bit of happenings in Q2 and also a little bit about what's going to happen going forward the rest of 2021. We had a strong demand in all end user markets. We had a stronger demand than we basically managed to supply. Growth was capped by the wafer supply. The revenue ended at $147.6 million. It was up 67% year-on-year and up 3% quarter-on-quarter. Our gross margin ended at 50.9%, which is 1 point down from year-to-year, up 0.7% quarter-on-quarter. Bluetooth revenue stood for $123 million, 75% growth. Proprietary 17.78% growth. Cellular IoT for the first time, I would say we got meaningful revenue at $4.6 million, was a growth of close to 300%. All over, Q2 was a decent quarter. It could have been significantly better if there were more wafers available. Our backlog is increasing. End of the quarter, we had $1,253,000,000 in backlog. That's six times what we had exiting Q2 2020. We see increased demand from both tier one customers and actually especially from the broad market. Bluetooth accounted for 91% of this backlog. When we are going to deliver this backlog, it very much depends on the wafer supply. Currently, the backlog is stretching throughout 2022. What we have to do now as a company is that we need to focus on all customers and ensure we keep them floating, and at the same time work hard with our vendors to ensure that we can get the wafers that's needed to keep our customers going. For strong growth across all verticals, it was driven both by consumer, but I would say even more on industrial retail customers. We see that there is an ongoing disruption in logistic, asset tracking, smart home, which I'll come back to, smart lighting, and healthcare. In healthcare we see a strong growth in diabetes monitoring and treatment. I think we can call it explosive sort of growth in healthcare, something that we have talked about for many years finally happening. What we see is, and you have seen this slide if you follow Nordic earlier, is the platform providers is really driving the growth. All the new home platforms enables our customers to build new products to hook up to these platforms. I come back to that also. It really see increase in revenue, increase in new products coming out to connect to these hubs. This quarter we also launched Find My network support from Apple, and if you go into Nordic SDK, you see that you can use Find My app, and it basically ensures that everyone can find their devices if they're connected with a Nordic Bluetooth chip. The important thing here is that you don't need to use the latest and greatest Nordic chip. All our Bluetooth Low Energy chip can be equipped with Find My support. We have a couple of customers that we've been going public with. One of them is Belkin SOUNDFORM Wireless Earbud is using Nordic Bluetooth Low Energy in their earbuds. Chipolo ONE Spot is a item finder, is also using the Nordic Bluetooth. Because why? Because it connect to Find My network. We also continue to work on these new platforms and infrastructures. We are strong contributor to Matter used to be the Connected Home over IP that's supported by Amazon, Apple, Google, and others. Our SDK obviously contain the Matter software. We see that there is complete reference software there for light bulbs, light switches, door locks, everything in your home which you want to have connected. We are working with lots of customers now for products that are going to be launched as soon as the specifications are ratified. It's exciting times for all these initiatives and these ecosystems. You have seen and you read a lot about the specification about the solution, but now you're going to see the hardware in the quarters to come, containing, obviously, connectivity from Nordic. We have also gone one step further. We are launching what we call the Nordic Partner Program. You can be a design partner, or you can be a solution partner. It's something that quite a few semiconductor companies do when they get at a certain size. It's a need to have partners that can assist customers in getting their end product to the market as quick as possible. Currently, we have signed up eight leading IoT companies that are partners with Nordic in this program, and more to come. We launched some products that was public in Q2. If you look left here is Aptar Pharma, which have a smart inhaler. We said medical equipment will continue to grow, and we now see that some of these analog equipment are moving digital. We also launched a product with Toshiba, Bluetooth module, with nRF52811. StLife is a healthcare gateway. If you read this slide, you see it contain both cellular and Bluetooth, and that's a trend that we see many places. Braveridge is doing a gas monitoring system containing nRF9160 of a cellular modem. At the right here, you see SparkFun Electronics. They have made their own development board for fast prototyping of cellular IoT using the Nordic nRF9160 module. There's happening quite a bit of third-party support for the Nordic cellular at the moment. You look at our market share, it's continued around 40%, 43%. I think it was 42% market share this quarter, it's at the same level. We are happy with design activity, important thing here, again, as I said last quarter, is that we see that the volume complexity of many of these designs are more advanced than some of the designs we used to have. We see that actually, one of the Chinese is called Galink, is growing, it's growing on relatively low complexity designs. We are putting our efforts on advanced full feature Bluetooth Low Energy designs. The good thing here is that despite all the issues we have regarding supply chain and availability of wafers, customers are designing products because they know that this is a temporary situation, the companies are going to have products when this loosens up. Maybe the slide I'm most proud of. This quarter, we introduced our first PMIC, power management IC. This is a product that is complementary to all our Bluetooth parts. We can use the same customer, the same sales force, and more footprint for Nordic on the PCB. This has an extreme small form factor, and being a Nordic product, it's always at ultra-low power. Obviously, PMICs are used for rechargeable batteries, wearables, audio, smart home, medical remotes, manual applications. As I speak, you recognize those segments. It's the same as we are shipping our Bluetooth Low Energy into. Basically, these chips are accompanying our Bluetooth chips. Anyone recall how many Bluetooth chips we shipped 2021? No, you don't. We know it's a couple of hundred million, and we hope that this can be accompanied by each PMIC. We expect some revenue contribution already this year. We had revenue this quarter. I think we shipped around 11,000 PMIC samples to quite a bit of customers. This is a new component in the Nordic portfolio. We are expanding our portfolio, becoming more a complete semiconductor vendor within the connectivity segment. We continue to sell kits. Grew by 23% the first half 2021. If you see on the cellular, we only shipped 4% of the total kits were cellular. It was actually due to shortage of accompanying components onto the cellular kit. We hope to, or we see that we will get an ease in the second half, and we'll be able to catch up the backlog for kits for cellular. We continue to certify new operators. T-Mobile US were this quarter. We see volumes ramping up despite supply constraints. What we also see is that the cellular modem is a module, we use third-party components. We've been a little held back, as you saw in Q1 revenue, that there's been lack of other components onto the PCB, we are working continuously to ensure that we have enough components to complete our modules. Here we see customers now actually using some of our new partners. Telenor is a partner here in Norway. Grandcentrix is another partner, it's good to see that these customers or partners are getting up to speed. I would like to hand over to Pål and go through the finances. Thank you, Ståle. I'm going to go through the financials for Q2 2021. As Ståle mentioned, we report yet another record revenue quarter with the growth we saw during 2020 and early 2021 also continues in Q2 2021. We had a growth of 67%, as Ståle mentioned. This growth is really capped by the availability of wafers in the market. Revenues amounted to $147.6 million. This growth we had comes from a broad space of the market. Both our large customers, the t ier one customers, are driving the growth, the new technologies, the massive adoption of IoT is driving it, and of course, the broad customer base is also pulling for products from Nordic. During the constraint situation, our focus is on helping customers who experience strong end product end user demand. Bluetooth revenue increased by 75%, to $123 million. Proprietary continues the strong growth that we've seen over the last year, and was now $17.7 million. Slightly down from last quarter, still a very strong number. As we've said before, there is a transition from Proprietary to Bluetooth in the home PC or the PC market. We continue with our guidance that Proprietary will decline over the next coming years. For Cellular, as Ståle Ytterdal mentioned, the first time we have a meaningful revenue of $4.6 million. This is a little bit impacted by Q2, which had some supply issues. 4.6 is still a good achievement, and it's showing that we now have several projects that are now beginning to really come into the commercial phase. There's especially one car tracking product that's driving the revenue in this quarter, and that can, together with other tracking products that have potential to be good in the next few quarters. It's important for cellular that it will be a little bit bumpy, because it really depends on when large projects come into the commercial phase. Also, for Cellular IoT, we are depending on a little bit more variables in the whole supply chain, depending on products from other suppliers. It can be a little bit bumpy going forward. I'm going to go to revenue per market. First of all, this slide does not include Cellular IoT, it does not include Wi-Fi, it does not include the PMIC products. At the Capital Markets Day we are planning later today, we will come up with a new method to show how we report our business and how we show the markets we operate in. As the overall market showed strong numbers, of course, each of these markets will have a positive development year-over-year. It is important to emphasize what we talked about before, that since there is a constraint in the market, how much products are allocated to the different markets will depend on availability of wafers. First of all, the consumer electronics at $51 million, which is around 36% of the total, a little bit down from highs last year, this market is, of course, driven by PC peripherals, but also gaming is important in this market. Wearables, 30% growth from last year, down 20% quarter-over-quarter. Wearables was very strong last quarter and got allocated big amounts in Q1. This reduction quarter-over-quarter is an effect of this change in allocation between quarters. Building and retail, 120% growth. This is, of course, a market we have been tracking the last few quarters, and it's showing a very strong number, and is now very close to becoming not the biggest, but it's very close to consumer electronics. This market includes industrial and home automation products, such as speakers and smart lighting. In this market, we also include city bikes, electronic shelf labeling, and also various tracker solutions. Next, healthcare, 11% growth from last year, 4% down compared to last quarter. Compared to last quarter, in healthcare, there's the base of the customers we've been talking about for a long time, delivering drug delivery systems, mainly related to diabetes. There's been some bumpy COVID-related products in healthcare, then in Q2, these products were less. We do see the big transition within healthcare going on. Gross margins. We commented last quarter that we saw a reduction to around 50% gross margin. This reduction came as a result both of product mix. We were selling more products to, amongst others, the healthcare, and also on the customer mix, we were selling more to larger customers. We got a reduction to around 50% last quarter. In Q2, we saw a small shift, bringing gross margins back to around 51%. It's a mix. Healthcare was less. Healthcare has overweight of more low-value products. Partly, this shift will be driven by that. Secondly, Q1 customers actually in Q2 have a lower share than in Q1. Not a big difference, but enough to have a small impact on gross margins. Going forward, we reiterate the 48%-50% gross margin targets. It's both the product mix and the customer mix effect, but also we'll also see some effects of higher costs in the supply chain, of the value chain. Now to operating model. The numbers on this slide reflects reported numbers, the effects of capitalization and internally developed R&D and equity compensation. We'll come back to when we go through cash OPEX. Despite increased investments, the strength in Nordic's model can be seen now when EBITDA has a good shift upwards to closer to 20% from 18% last year. All KPIs show a positive trend, although the underlying absolute numbers reflects the increased activity level in the business. First on R&D. Total R&D spending at 21.3%, more or less the same as we had last year and last quarter. Comparing excluding the recently acquired Wi-Fi business, R&D in percentage of sales is actually down to below 20%. Remember, 20% is our target to be a very good R&D developing company. Overall, absolute numbers, total R&D increased from $18.7 million last year to $31.4 million this year. This is partly driven by increased investments in the entire R&D organization, including Wi-Fi, but also Keemik, as we talked about before. During last quarters, due to COVID, SG&A has been on the low burn rate, mainly because there's been very little travel and very little exhibitions, conferences going on. The SG&A in% of revenue is now below 10%. Cash operating expenses, which is the cash or the OPEX, excluding our capitalized internally developed R&D and equity compensation, increased by 55% compared to the same period last year. Compared to last quarter, OPEX is slightly down, mainly due to the way we treat vacation pay in Norway and Finland. This increase in salary expenses of 50% comes as a result of continued growth in the business that is required to capture the growth we see in front of us. Number of employees grew by 32%, including the 81 people acquired from Imagination. At the end of the year, we are 1,087 employees. The reason the cash cost increases more than the number of employees is a mix. First of all, we do have a negative FX impact in Q2 last year. The Norwegian kroner was significantly weaker than today. In addition, we have higher bonus accruals in 2021, of course, because 2021 is performing much better than last year. Other OPEX, a large increase of 70%, mainly driven by higher activity in R&D, i.e., payouts of new products. We've also used quite a lot of consultants in this quarter. On EBITDA, our EBITDA margins in Q2 2021 was a strong 19.8%, very close to the 20% mark we've given, up from 18.1% a year ago. Compared to last quarter, 17.4%, the increase there is driven by higher gross margins and also slightly less cost per revenue. Adjusting for cellular IoT and Wi-Fi, the short-range business is now showing very close to 30% EBITDA margins. If you look at the last 12 months EBITDA at 20.4%, we are for the second consecutive quarter now above 20% for the entire business. On CapEx, we've spent $9.6 million in Q2. This is 6.5% of revenue and significantly higher than the amount guided for in the Q1 presentation. The reason is we've pulled in additional test capacity so that in our production, we have a high flexibility. When we get in wafers, we can quickly turn them around to end products and deliver out to customers. As Ståle Ytterdal has mentioned several times, it is very important for us to have a high flexibility in the organization because wafers do come in bumpy in today's situation. In addition, we spent around $2 million in lab equipment, mainly for the acquired Wi-Fi business. We are expecting overall CapEx intensity in 2021 to be at the same level as in 2020, around 4%. A result of that is that CapEx will go down in Q3 and Q4, mainly because we are not planning any more tester purchases. My final slide, cash flow. During Q2, we have had a very strong cash flow of $30 million. Actually, the operating cash flow was $52 million, adjusted for capitalization. The improved cash flow comes as a result of strong EBITDA and a positive development in net working capital. We had a strong inflow of $22 million related to net working capital, mainly driven by strong payments from customers. Customers pay us timely. Secondly, we have a record low inventory. That's not a positive thing because now we only have inventory to cover around the quarter's revenue. We need to get that up when supply normalizes. We would expect some increase in working capital going forward. I mentioned the high CapEx of $10 million. We also had an option settlement in Q2 of $11 million. Net on net, added $30 million to our balance sheet. We now have cash of $227 million, which is a very comfortable number giving all the plans and activity we have going forward. Okay, Ståle Ytterdal, I'll hand over to you. Thank you, Pål. Before I start, if you have any questions, please post them so that we can respond to them after I've been doing the summary. I think listening to Pål's presentation on the numbers, you will understand that Nordic is a long-lasting growth journey. Basically, if you see, we have never grown as steep as now. Obviously, when the wafer supply is opening up, we will continue to have a very strong growth. It's because of this widespread IoT adoption. Nordic has spoken about this for many years. Other companies have also started talking about this the last couple of years. Now it's finally happened. We are working hard as possible to ensure that we are getting the supply to keep the total market growth that's planned for at the moment. With $1.2 billion in backlog, we need to get wafers. We need to turn this into products so end customer can maintain the penetration of this fast-growing market. As Pål said, we spend more than $9 million this quarter to build up our test park so we can get wafers anytime and turn them in seven days into product. We have a solid market position. We are market-leading Bluetooth Low Energy. I point back to the 43% design market share. We are taking position to take lead in cellular IoT. We are complementing our portfolio with Wi-Fi. We are accelerating the Wi-Fi development, thirdly, we released PMIC this quarter. PMIC, if it's a good product, which Nordic has made, it's accompanying every design that we do with our Bluetooth Low Energy. Our customers know our quality of products have been, as I said, more than 10,000 parts shipped out, sampled to customers already. There is customer testing of PMIC today. The only challenge we have, which we work very closely with our vendors on, is to ensure capacity increase on wafers, and we will obviously update you as soon as we have any substantial information about this plan. What we can say today, though, is that the commitments we have for Q3 is giving us ability to guide for $130 million-$150 million, and it's the widest range I showed so far, but it really reflect the fact that we don't know when the wafer comes in. If we get wafers in mid-September, we can turn into product and revenue this quarter. If it's too delayed, we have a challenge. We are working very hard and close with our suppliers, and we expect that at least we get the minimum same level throughout the fourth quarter. We obviously work hard to increase, today, minimum the same level. We understand that the capacity might remain tight for at least another year, even though TSMC have communicated CapEx of $100 billion over three years. The good thing is they also confirm expansions on the technology nodes that our current Bluetooth Low Energy parts are running on. Despite that we are growing strongly, we could have had a significant higher growth if the parts were available. Our guidance for Q3, $130 million-$150 million. Margin will be more or less in line in what we delivered this quarter. What do we need to do this quarter is to look after our customers. It's a tough work for our sales force. We are expanding sales force. We are working closer to each customer and to ensure that we put the parts to the customer that have most use for it at any time. We see that the technology adoption continues. It strengthen our long-term growth potential. We expect that as soon as the capacity sort of ease up, it will be a very positive situation for Nordic and our customers. On the margin side, we expect that we keep, as I said, the same margin, and on the long term, or I would say, we expect the margins for Nordic to stabilize around 48%-50%. Thank you all for listening in to our quarterly presentation, we very much look forward to see you all again, I hope physical, for those who can be in Oslo at the Q3 presentation, we would very much look forward to have our Capital Markets Day the same day after presentation. Mark your calendars, it will be October 21. Hope to see you all there, now we open for questions. Ståle, have you got some questions in? Yes, we have some questions. We have split it up in topics. We can start with the backlog. This is from Christoffer at DNB. "Is the duration of the backlog still about 12 months, or is it now getting artificially inflated? Just trying to understand how much of the backlog is true demand and how close to the $1 billion target this backlog puts you. The backlog is very real, it stretch out through all 2022. Basically, what we see is that customer are placing orders ahead of time, and it's a terrible situation that we can't ship all of our backlog at each quarter. It's also a good thing when you have a long backlog, is that at least you can focus on producing exactly the parts that is needed to the market. Long activity is the reason. Obviously, as we get larger customer, higher volume with longer orders, that adds up to this increased backlog. Christoffer, you're right, we are very close to the NOK 1 billion mark. In Capital Markets Day, we will talk about what is our next goals, and we do that in October. Thank you. We continue on backlog. We have one question from Arctic Securities, Kristian Spetalen. Could you provide some flavor on the Q2 order intake mix and for what period the deliveries are due? If you look at the intake we took in Q2, most of this covered the first half of 2022. Obviously, it was a good mix of new projects and existing tier one volumes. As Pål said, the tier ones or the larger customers, the actual revenue part of it was going down 1% or 2%. It's all the long tail, all these new customers that are connecting to these hubs that basically were contributing most. Thank you. We go over to the topic of supply constraints. From Rob Sanders, Deutsche Bank. What is your initial view of your 2022 foundry allocation versus 2021 in terms of percentage growth? Can I just continue here? All the fabless companies are saying they are worried after initial discussions with foundries on this topic. What other customers are worried about, I can't comment on. I'm sure that Nordic will have a good growth in 2022, and we are working together with our vendors to convert the good to better. I can't comment more at the moment. Thank you. We continue with Petter Kongslie, SpareBank 1 Markets. Do you expect same wafer availability in fourth quarter as in the third quarter? It's too early to say because we are just in the beginning of Q3. We are working every day to increase. I know that our partners are doing whatever they can to increase output. The best we can do is what we guided on in the slide set we just presented. Thank you. Rob Sanders, Deutsche Bank. Are lead times at distributors at around 52 weeks? Lead time depend from customer to customer to importance of project. Having a general lead time today doesn't account very much, but it's very good to place your orders early to ensure delivery. Thank you. We go over to the topic cellular, from Christoffer, DNB. You mentioned that you are working with a vehicle tracking company in Cellular IoT with potential to become a top 10 customer for the company. Can you say anything about what kind of timing we should expect for this to happen? I didn't put it on the slide, but I can inform you. In June, for the first time, we had a customer from cellular amongst the top 10 customers. Already in June. Thank you. We have a question from Øystein Lodgaard. Should we expect to be lumpy also going forward, or is it likely to continue to increase in Q3 and Q4? This is about cellular. Cellular is the most complex product we have because here we are dependent on getting third-party components onto the module. Everyone knows in the industry that substrates is scarce. It's difficult to get some crystals. It's very hard situation. We have been working heavily with our suppliers to ensure that we get enough products to assemble our modules, and it will be lumpy because of availability of external components. Thank you. We continue on cellular. Christoffer from DNB. Shipments on nRF91-based dev kits seem to be down significantly year-over-year, if we understand your numbers correctly. Can you help us understand why this does not reflect a slowdown in momentum for Cellular IoT? Yes, we can. The reason is basically that we were having less development kits out in the market. We were shortage of components. We were not able to produce as many kits as possible. If that ratio had been what it should have been, the question wouldn't have come up. The fact that we are now going volume is starting to be meaningful is that we have had projects ongoing for a long time that now moves to production. Obviously, when we get more than one product or one customer in production, it leads to that kind of growth. Thank you. We go over to the topic of PMICs. Kristoffer, DNB. If I heard you correctly, you are saying hundreds of million of units shipments potential for the new PMIC product. Is it fair to assume this is a significantly lower price point than the Bluetooth part? You heard me correctly, and it's not fair to assume that it's very much cheaper. Thank you. We have a question from Johannes Riis. How fast could PMIC accelerate? Usually, we see development time, we always say 12 to two years. We see shorter development, 12 months to two years. We see shorter development time, the less complex the product is. Now we also have this situation where you have shortage of supply and development time, I would say at least a year. A year to two, we will see significant, or I would like to use the same word as I've done with cellular, meaningful revenue. Thank you. We go over to revenue, and we have a question from Kristoffer, DNB. Can you please give us an update on how much revenue comes from the top one and top 10 customers during Q2? Top 10, 36%, Pål? Oh, it was slightly ticking above 40% earlier quarters, and now it is just below 40%. Yeah. Yeah. Okay. On the top one to three customers, we were not. No, we're not sharing that data. The important thing is that the top 10 as a total, they're down compared to previous quarters. Okay. Which means that the long tail constitute of all the new customers that are connecting to the hubs. Thank you. That was good. We have a question from Lars Henrik Bjerke, the TDN Direkt. "Congratulations on your another stellar quarter." Thank you. Thank you. You say your market share based on certification is 43% as of Q2 2021, which is down from Q2. That was at 46%. Should you shed some color on where you see your market share lost, and whether or not you expect this market share to rise, fall, or remain in the coming quarters? That's a complex question, we would take half an hour to discuss, but the most important thing, this is design share, or design win market share. We are working now with larger customers, larger accounts, and focusing on projects that have higher volume. If you look at the total market share for Nordic, I think it's been increasing and will continue to increase in dollar-wise. Obviously, we have a shortage period, and there has been some customers that we're not able to support because of existing customers that already have projects which we have to support. I hope to see that this is changing throughout next year, and that we can be as aggressive on design wins as we've been previously. We continue with Dagens Næringsliv. In Q2, you gather wafer volumes from later quarters to cope with the increased demand. You shift some volumes to Q3 also. If so, how much, and does this affect later quarters? As we said in the presentation, we expect a minimum the same amount of wafers to be shipped to Nordic throughout second half of the year. As we did now in Q2. Thank you. We have other questions from Rob Sanders, Deutsche Bank. Are you seeing any designs using Bluetooth Classic moving over to BLE? It seems that Bluetooth Classic lead time are even longer than Bluetooth Low Energy. Yes, we've seen that for a long period, that customers are changing from Classic to BLE. Thank you. Christoffer from DNB. You say the technology nodes our current Bluetooth parts are running at, do you expect a move to a lower node to give you more wafer capacity in 2022? Answer is easy, no. We expect on the long term, it will do, but for 2022, it wouldn't have any effect. We have a question from Petter Kongslie, SpareBank 1. Is it possible to say anything about the average selling price on the Wi-Fi products? We don't have a product out in the market yet. We have estimates of cost, when we've done the first products and get them into the lab, then we will start looking what will be the prices on these products, when we have a full cost overview. Will be able- The answer is no Wi-Fi, it will be above Bluetooth, of course, but lower than cellular. It is significant above Bluetooth. Lower than cellular. Thank you. That was all the questions. Thank you to everyone that sent us questions, and again, looking forward to October 21. See you. Bye. Thank you.