Good afternoon, everyone, and welcome to Nordic Semiconductor's Capital Markets Day 2024. It's really great to see so many people here in person in Oslo, and thank you to everyone online, joining us online as well. It's a pleasure to have you all here. Can I just add, if the alarm goes off in the room, we have one exit here in the front and an exit back where you all entered, and the assembly point is just outside the building. So now we know that. My name is Anne Gustavsson, and I'm the Marketing Communications Manager in Nordic. I will be your host this afternoon. Today's event, we've been really looking forward to it, and it's an important opportunity for us in Nordic to share and engage with you on key strategic priorities and engage with all of you here on Nordic's business direction. I have representatives from Nordic's key executive management here today. Our CEO, Vegard Wollan, will start off with an overview of our strategic priorities and growth outlook, followed by Øyvind Strøm and Øyvind Birkenes, who are heading Nordic's newly established business units for Short Range and Long Range. After a 15-minute break, our two people, Geir Langeland and Kjetil Holstad will share with us the market strategies and how we will capitalize on innovation, followed by Pål Elstad, CFO, who will cover the financial perspectives, following the second break, we will have a panel session and Q&A. This will be the first time we do a panel discussion. It will be moderated by Rob Sanders from Deutsche Bank and Christoffer Wang Bjørnsen from DNB. That's something to look forward to. And after the panel, session, we will open the floor for Q&A from the audience here in Oslo. And as we proceed, please note our disclaimer regarding forward-looking statements, and then for your information, all the presentation material will be now available for you to download online. It's my pleasure to introduce our first speaker. He is regarded as one of Norway's most influential technology leaders and has been a driving force behind groundbreaking technologies. His career has been driven by a passion for engineering and design. He actually started in Nordic Semiconductor as a developer back in the 1990s, and after several years leading semiconductor companies, including Atmel, we have been privileged to have him back again in Nordic since January this year as the company's CEO. Today, he will kick off the conference and explain to us how he plans to drive growth and restore profitability in Nordic. Ladies and gentlemen, please give a warm welcome to Nordic Semiconductor's CEO, Vegard Wollan. Thank you, Anne, and good afternoon. And again, welcome to all of you in the audience here. Great to see you, and welcome to those of you online. Thank you for joining. Most of my management team is with me here today, and together with the rest of the Nordic team, we are looking forward to present Nordic and discussing our way forward with you in today's presentations. As you heard and saw on the video, we are a global leader in wireless connectivity solutions. Our mission is to simplify and improve lives through things connected. We achieve this by innovating and developing for and with the world's leading electronics companies. And to have this strong position, we need to have the best and competitive products at all points in time. It has been a while since Nordic has launched new chips and SoCs, and that's why I am so confident of the time ahead. Since we finally enter an era of launching new and truly groundbreaking products and chips based on our new 22 nm platforms. We are building from recognized strengths that are recognized with our customers, partners, and also even our competitors. Nordic has always been committed to ultra-low power and ultra-low power wireless connectivity. Since some forty years ago when the company was established, this has been key with Nordic all the way through. I even recall that from my early days with Nordic back in the 1990s. We are low power. That's in the company DNA, and this enables the best battery lifetimes possible. But we are much more than low power. We deliver high-performance processing and compute power in the same integrated chips, and we deliver this at the right price points, and we have our unique go-to-market model that enables us to create fantastic customer base with the highest customer satisfaction, both among our key customers and in the broad market. Here, you see a great lineup of our multi-protocol products across the wireless technologies and standards. We are enabling some of the world's largest IoT ecosystems, run by the tech giants. Apple's Find My, Google's Find My Device, Amazon Sidewalk being great examples, but I said our leadership involves so much more than just being the ultra-low power leader, and ease of use is truly a very important selection criteria for our customers. Our software, software solutions, and what's on the right part of this page and slide, is a major part of that success, truly to be making our customers, engineers, and developers successful. I had a discussion a few weeks back with an engineer, professional software developer from one of our key customers, and she told me a fantastic story. Building a specific function in our chips in the past took a bit more than a thousand code lines to develop. With our recent nRF Connect SDK, she did this with less than ten code lines, and that's truly making our customers' engineers more effective and successful. In our software framework, our customers' engineers are developing, maintaining products, moving between technologies, and very importantly, developing their next-generation products based on their previous generations. It's a framework. You develop faster, more efficiently, and we enable them to meet their timelines. Finally, we have Nordic's unique and world-class innovative tech support with Nordic's DevZone and the tens of thousands of engineers supporting each other, reaching out, and innovating, innovating and engineering together online every day. I joined Nordic in the beginning of 2024, as Anne said, and throughout the year, I've said a few times that our overarching goal is to be driving growth and restoring profitability, and together with my new and revitalized management team, I've spent a lot of time meeting customers, partners, employees to find what really matters the most to succeed. We have changed our roadmaps to adapt to our customer needs going forward. We are improving our engineering execution by enabling organizational autonomy and changing some of the ways of work. Today, I hope that I will be able to show you, and together with the team, we can show you that we are on the right track, and that we have the right people and plans to move forward towards our goals. My confidence builds on three main points: sharpened priorities, focused product plans, and improved engineering execution are the first, and secondly, a more market-adaptive, customer-centric organization, and for the third, we have exciting upcoming product launches, where we are capitalizing on R&D investments made over many years. With this, we shall be driving profitable growth in the years to come. While we are recognizing our strengths, we also need to acknowledge our challenges. In the ways we have adapted to our markets, in our strategic priorities, product roadmaps, and in our resource allocations, and the way we have been organized and executing. We must admit that we have been too slow to adapt our roadmaps to changing customer demands in a demanding market, and we have been inefficient, inefficiently organized in certain areas. We have simply not been getting the most out of our excellent engineers. Some programs and projects have been allowed to continue for too long, while others have had too little resources to execute on time. We need clear priorities with regard to focus markets, investment levels, and we need to improve and streamline our framework for resource allocation. Further, we need to make sure that our product roadmaps are aligned with customer demands. Finally, we have built up an organization capable of handling a much larger volumes and revenues than we saw through 2023 and into 2024. We have now done a lot of changes within Nordic within these last nine months, and we are continuously making further improvements and changes. These are a range of bigger and smaller changes, and you will get to learn about some of them here today. Nordic's strategic core remains unchanged. We shall be the leaders in wireless connectivity, we shall excite developers, and we shall engage our entire customer base, both our large key customers and the customers in the broad market. However, we are taking actions to make changes to address three main purposes. First, we are sharpening our strategic focus. This means that we are relocating more resources to speed up some projects, while other projects and development projects have been put on hold. We have to do a lot of work and changes, and we have done a lot of work and changes to make our, make sure our product roadmaps are hitting the right value and the right price points of our customers. Secondly, although we have world-class engineers, we are changing how the engineers are organized and some ways of work in the various engineering teams. And thirdly, we are strengthening accountability. The teams are given a great deal of autonomy, and when we delegate decisions, we also need to delegate responsibilities. For this to work, we'll monitor project developments closely to make sure we are on track and adjust course when we are not. So these changes will change the way we work with some common themes across the Nordic organization. We are seeking to accelerate time to market for key products. We will focus sharper on selected target markets, and we are building stronger partnerships, both upstream and downstream. We have developed clearly outlined action plans, and the overarching target of everything we are now doing differently is to improve our return on investment, drive growth, and restore profitability on the group level. As part of the reorganizing and the strategic realignment, we expanded the management team and established four new business areas during second quarter. As you know, our established new Short Range Business unit area is headed by Øyvind Strøm. Strøm came from a career within the semiconductor industry, from Microchip, in many different positions and leadership roles. The second new business unit is Long Range, which will be scaled by Øyvind Birkenes. Birkenes joined us from Airthings and has a long previous experience from the semi industry, from Chipcon and Texas Instruments. The two other new businesses, Wi-Fi and PMIC, are still in early stages, and the new Wi-Fi BU is headed by Joakim Ferm, has been with Nordic for 16 years. And finally, the new power management business, headed by our VP Corporate Strategy, Kjetil Holstad, has been with Nordic for last 10 years, and before that, 16 years with Atmel and TI. So together with the rest of the team, these guys have been given the mandate to sharpen our strategic focus and strengthen execution. Before I give an overview of our plan and outlook, let's have a look at the overall market and some major trends defining our opportunity. A lot of different things will affect our markets, but there are some major trends playing an important role. For the first, hybrid work has come to stay, and workers will be equipped with more digital and physical tools wherever they are, at the office, at home, or on the go. Our lives are generally becoming more connected, such as within fitness and gaming. Secondly, connected healthcare remains a disruptive market opportunity, today mainly driven by the large and growing markets for continuous glucose monitoring and drug delivery systems, such as insulin injection pumps. There are much more to come in this segment. And for the third, we see disruptive potential within industrial applications such as building automation, infrastructure, appliances, and asset tracking. common for these three to the left, so the consumer, healthcare, and industrial, is that there is a huge untapped potential here. Many people and businesses haven't yet begun their digital journeys, and many have not been enabled with the opportunity to start the adoption of these products and technologies. There are lots of people who will improve their lives with connected healthcare products in the years to come, as an example. Finally, some parts of AI might be a hype, but on AI and machine learning, we are convinced that devices on the edge will become smarter, faster, more powerful to solve future challenges. We are investing in technology for AI and machine learning, and these capabilities will come in multiple Nordic products, which we have in our product roadmaps. These mega trends continuing will benefit Nordic when we drive growth and restore profitability in the coming years. We have long said that our target financial model should allow us to generate EBITDA margins of 25%, based on gross margins of 50% and R&D costs of 15%-20%, SG&A cost below 10%. We are not where we should be right now, and we need to do three things across all our business areas to reach our target profitability. For the first, we need to drive growth and capitalize on our upcoming product launches in the growth markets we have defined. For the second, we need to maintain and improve our gross margins in certain areas, and regaining traction in the broad market will also support our gross margins. And for the third, we need to contain cost and show that we can grow without adding too much cost. And Pål will talk more about this. As I said, we established four business units earlier this year. And for the purpose of today, let's split them into three stages in the way we look at them, based on their maturity levels. Out to the right, you see our established Short Range Business, which currently accounts for close to 95% of our revenues. And with our current roadmaps, this will continue to be our main growth engine, also going forward. In the middle, you have Long Range Business, and here we have yet not managed to generate sufficient revenue, and the results are negative. Going forward, we're going to scale volumes, gross margins, and costs to move this business towards profitability, our way to create a commercially sustainable operation. And to the very left, you have our early-stage business in, businesses in Wi-Fi and power management, where we have just begun from moving from development into commercial markets. Having learned from our history in the Long Range segment, we are planning to bring these businesses much faster towards profitability. And in the changes we now do within Nordic, we are managing and operating our businesses differently because they are at different maturity stages, and thus they need to execute differently. So in our playbook, we will monitor and manage these developments with accountability. And please also note that this is also something Nordic has done before, as the proprietary wireless business and the Short Range BLE business were also early stage and scale-ups some ten, twenty years back in time. So let's first look at our established business in Short Range, where you know we saw high demand during COVID and a sharp cyclical downturn during 2023 and 2024. We are building our growth scenarios in Short Range, Short Range, bottom up, based on the roadmaps we are developing and executing together with our key customers and our growth ambitions in the broad market. However, as a clear market leader, we are also dependent on the market developments. Combining industry analysis from different sources, we see a picture outlining for average annual growth of around 17% in our serviceable market for the years to come. The graph shows a very nice and steady development, although I think with the volatile markets we have experienced and seen over the past years, I think we need to allow for some cyclicality and nonlinear growth patterns, depending on macroeconomic variables and market conditions. We are working closely with our key customers to innovate and develop future-proof products. However, we develop standard products and not custom silicon. This means that the result of the leading-edge innovation that we do in these collaborations also finds its way to the broad market customers. And as you see on this graph, our top 10 customers have accounted for nearly 60% of our revenue over the past year. And we are extremely glad to see a high activity level with our key customers. We have also made it one of our top priorities to regain traction in the broad market. With the introduction of the nRF54L Series, we will reinforce this customer approach and address the broad market with renewed strength, and Geir will talk more about that later today. To maintain and further develop our leading share of the Short Range market, we need to introduce new and market-leading products. We are extremely excited about the 54 series product launch coming up towards the end of the year. This is truly an exciting time in Nordic's next growth chapter. We have sampled the two first product versions, the 54 H20 and the 54 L15, to more than 200 customers each. The feedback and the responses we are getting is just fantastic. Very positive responses. All of our key customers are developing with these products, and third-party benchmark tests show that the nRF54 Series is truly outclassing the competition, both on performance and power consumption. This is really groundbreaking technology, which will allow us to renew ourselves, and we look forward to launching a series of product families with different product variants over the years to come. So how do we see the ramp of the nRF54 Series? We have high expectations for our new nRF54 Series, and driven by product launches, we have an ambition for the Short Range Business to grow faster than our markets over time. However, it will take some time before the nRF54 Series is taking over as the main driver. The 54 products needs to be designed in with our customer products, and our customers needs to qualify, launch, and ramp their productions before we will see a significant effect of the sales in our numbers, so as a result, we expect modest growth with only limited effect of the 54 series in 2025, and expect growth to accelerate from 2026 onwards. As we have tried to illustrate, we expect our existing products to continue to play an important role for a long time, also going forward. The nRF52 SoCs have been designed into many long-lived, high-volume products. Please treat this illustration as what it is, an illustration, and not as an accurate outline of the expected revenue growth and future split between our product families. Today, we have these. Received many questions to what we mean with the wording, "modest growth," and the way we see it now, we see that our definition of that is somewhat lower than the 17% for the Short Range Business in 2025. While our ambition to grow faster than the market in the next part of the decade is fully standing. In Long Range Business, we are looking to scale with sharper market focus than we have had historically. We see a potentially very strong growth outlook for asset tracking segment, and we have a great opportunity here to increase our market share further. We are clear leaders of tracking and tags in the Short Range market, and with the new and improved products, we are confident that we can take a very strong position asset tracking, also in Long Range. We also see customer cases in metering, industrial IoT, enabling us to establish a more substantial market share in these markets, though coming from a smaller share. For us to take significantly higher market share in these growth markets, we also need to strengthen our value proposition. Over the next couple of years, you will see us launch new products with significantly lower cost and price points, and significantly higher value for the money. This starts already with our new nRF9151, which we just launched now in August. At a 20% size reduction and significantly lower cost, this product greatly improves our product market fit within our target markets, such asset tracking and metering. Another important strong point is that the nRF9151 is manufactured completely in U.S. tariff-free countries of origin, which obviously is a competitive edge for us and for our customers at the moment, particularly in North America and Europe. The nRF9151 also has a performance to handle satellite connectivity, which means full global coverage and solid fallback solution for our customers and products, should they be out of coverage. The nRF9151 is only the first step towards our current product roadmap, and we will see further improvements and cost reductions with the first products of the nRF92 Series expected to ramp from 2026 onwards. So when do we plan for profitability in Long Range Business? we have set our target for Long Range Business to reach profitability in 2028. To achieve that, we need to establish a revenue base of more than $100 million by penetrating our selected focus markets. This requires successful roadmap execution, new product introductions to improve our offered value proposition, so we can address larger parts of the market, drive growth, and strengthen our gross margins. We need to grow without adding cost, and we will monitor the progress closely to make sure we are on track with growth going forward, margins and cost included, and Birkenes will talk more about that a bit later. Now, moving on to our early-stage businesses, starting with Wi-Fi, where we currently are in an early commercial stage. Like in the Long Range market, we are going to apply a sharp focus on selected target markets for ultra-low power Wi-Fi connectivity. We have started out with the nRF7000 as a companion chip to our products in Short Range and Long Range. We are going to present a significantly stronger value proposition with the launch of the nRF71 Series, which will leverage Nordic's new 22 nm platforms, offer best-in-class power consumption and radio performance, lots of integrated processing, integrated memories, advanced security, and AI/ML acceleration. Our selected serviceable markets are expected to grow from around 400 million units to a billion units by 2030, and we plan to capture a meaningful part of this market. We have set our financial targets to establish a more than $50 million business and revenue and profitability in 2028. The other early-stage business is our power management or PMIC business unit, which we have built in-house and where we have set similar targets to establish a $50 million revenue and reach profitability by 2028. Most of our customers' products need power management aside the wireless SoCs. And with our position as an ultra-low power player, we have world-leading competence in this area. So with a PMIC product line, we take control of the entire energy path from battery to antenna, which will be key to also move up in the value chain to deliver solutions rather than products to our customers. And our Head of Product Strategy, Head of Strategy, Kjetil Holstad, will talk more about the Wi-Fi and PMIC businesses and other projects and opportunities later today. Technology developments will play a crucial role in creating a more sustainable world, and we work to support our customers and their end customers connect their devices in an efficient and reliable way. A sustainable world needs much more sensors. You have the concept of sensing, compute, connect, and take some action, which there will be a lot of in this area. Many of our customers' products support sustainable products goals and innovations within industry, infrastructure, agriculture, energy, education, health, clean water, and many more. Low energy consumption is an important part of this value proposition, also to minimize energy consumption and also to minimize battery waste. Our ambitious greenhouse gas emissions targets were validated by the Science Based Targets initiative this summer, and earlier this year, we were glad to see Time Magazine recognize our efforts and included us among the world's most sustainable companies in their 2024 review. Supply security is high on the agenda for many of our customers, especially after COVID and the shortage with constrained supply. With sourcing from two of the world's leading wafer suppliers and from multiple geographical locations, we are very well positioned going forward. A better position than many of our customers, competitors. On this picture, you see our supply chain manager, Ole Fredrik, and the TSMC CEO, CC Wei, at the laying of the cornerstone of their new wafer fab in Germany last month. Moving forward with both TSMC and GlobalFoundries, we also are among the first to transition onto the smaller and more modern 22 nm production platforms, which is optimal for our SoC products. This will allow for higher integration, better performance, improved power efficiency on our SoCs, translating into more value for the money for Nordic's customers and for Nordic. Nordic is on a long-lasting growth journey, and our ambitions at the group level are to deliver average annual growth of more than 20% through the decade, and we will move towards our operating model profitability of 25% EBITDA margins within five years. This will require us to drive growth, support gross margins, and contain cost at the same time. I am confident that we are fully capable of execute on our roadmaps and our action plans that will make this happen. Let me summarize our investment case. We have a clarified strategy with sharper priorities and an organizational setup, which is more market adaptive, customer-centric, and laser-focused on our product roadmaps and engineering execution. We are looking forward to introducing groundbreaking new products with the 54 series just around the corner in the Short Range Business, and with new generations coming up in our Long Range and Wi-Fi businesses in the years to come. As I just mentioned, we plan for a profitable growth outlook as a clear market leader in a recovering market, with upside potential in our scale-up and early-stage businesses. I truly look forward to the rest of this Capital Markets Day, and look forward to meeting you all during the day. Thank you very much for your attention. Thank you, Vegard. Let's continue with our next speaker for today. I am pleased to introduce Øyvind Strøm, our EVP of the new Short Range Business unit. Øyvind has more than 25 years of experience in the semiconductor industry, with both key global product and business leadership roles. He joined Nordic in April this year after several years in Atmel, and with a PhD and a deep expertise in driving innovation, Øyvind brings a wealth of knowledge to our leadership team. Øyvind Strøm, the floor is yours. Thank you, Anne. Thank you, Vegard, for a great start to our Capital Markets Day. I joined Nordic six months ago, and after I've been working for the industry for more than 25 years, for two great microcontroller companies. Joining Nordic has been like a dream. There is so much talent, there is so much opportunity in this company. We have the world's greatest team, and despite the bumpy road that we have seen over the last months, our employees come to work every day being proud of their achievements. They are inspired to reach the next targets, and they work very hard to get our next generation of products to the market. And I'm happy to say that we are getting there. Tomorrow, the first commercial shipments of the nrf54L Series leaves our warehouse, being shipped to a key customer. For us, it is marking the start of a new era, and this is also why I'm super excited to be here today, and telling you all about our next generation family. Yes, we have work ahead of us, but we have the best team and the best product. We are starting in a pole position, and it's really up to us to win, and winning is why we are all here today. With that, I will start talking about the Short Range Business unit and what we are about. Short Range is our main engine, and we refer to it as our established business. We have built a global leadership position within Bluetooth Low Energy over the last two decades. Still, we are nowhere near fulfilling our potential. Having such a clear leadership position, combined with, as I will show you, the very best next-generation products, provides us with a unique opportunity to grow. The pandemic led to a wafer shortage, and this affected our ability to serve our customers in the broad market, meaning small customers that are taking mid-size volumes over a longer period of time with a price premium. Strengthening both this broad market and at the same time growing our key customer is a priority and something that our EVP of sales, Geir Langeland, will talk about later today. All in all, this is what leads us to the ambition and the target of growing our revenue above market growth throughout the decade. To achieve this, we have made large investments in our supply chain, moving to 22 nm node and expanding our partner portfolio. We also need to execute on our roadmaps, not only on the hardware side, but also on the software side. Remember, our complex products are easy to use and robust, seen from a customer side. We need to deliver on our promises to the market, both on our software and on our hardware. So what is the opportunity in our markets? You will find different predictions from market analysts out there, and what you see here is a blend of four reports that reflects what we believe is a realistic growth trajectory for our serviceable market. Overall, we can, with our products, address a market with an estimated 17% annual growth rate. Breaking it out, Bluetooth Low Energy is predicted to have a 20% growth, primarily driven by healthcare, wearables, PC peripherals, electronic shelf labels, tracking applications, and more. In the IoT space, Thread is showing a growth of 28%, primarily driven by smart home and smart building markets. It is rare to have such a growth opportunity in a well-established market. Being in the leadership position puts us in a very, very good position to grow moving forward. So what will now enable this growth journey? The answer to that question is the nRF54 Series. We have, over the last years, worked on the new processor architectures for a range of existing and new applications. We are very proud to start sharing more details about the two upcoming product families here today. The nRF54L will be the continuation of the highly successful nRF52 Series. The nRF52 Series has become the key reference point in the market today, and although it's aging, it's still very competitive, seen from a technology perspective. The nRF54L will take the best of the nRF52 Series and make it better and be a defining wireless microcontroller in the market. With the 54H, we are leapfrogging and lifting performance, and security to the next level. It is a true system-on-a-chip that can be tasked to solve advanced applications in a multitude of domains. This is the stuff that gets engineers excited. Let's look a little bit closer on the nrf54L Series. As I said, it is the continuation of the highly successful nRF52 Series. We have taken the best of the nRF52 Series and made it even better. Processing performance, in other words, how fast you can execute your application and how much you can do per time unit, has been more than doubled compared to the nRF52 Series. At the same time, we have reduced the energy consumption by more than half. Why is this important? Generations of end products get new features. They do more and are smaller in size. The nRF54L Series enable this, and as it can be used as the single MCU in the system, it can handle the application and the communication as a single-chip wireless MCU. Our nRF54L Series have our latest generation radio technology. Bluetooth SIG, the standards organization for Bluetooth, just released the Bluetooth 6 specification end of August. Our fourth generation radio supports Bluetooth 6 out of the box, and it is future-proof for a whole range of new BLE features expected to be released over the next few years. Security is paramount and increasingly important, not only because our customers require it, but also regulatory requirements are rapidly emerging. We have implemented the latest generation security features and enabling our customers to certify their products on the highest security level with PSA, which is an international recognized security standardization organization. The nRF54L is manufactured in the 22 nm technology. Not only is the process technology state-of-the-art, but we have also implemented proprietary ultra-low power technology, and we have IP that ensures our leadership position in the low-power domain. This enable our customers' battery-operated devices to run longer. Finally, many of our customers make very small products. That can be tags, it can be trackers, patches, et cetera. Size is therefore important, as they do not have much space on their boards. Our ultra-small package technology is a differentiating feature for us in the market. Our nRF54H technology, or nrf54H Series, sets a new market standard and is now our new flagship product. It ups the performance compared to the nRF52 Series, having five times more performance and being six times more energy efficient. It has multiple CPUs and advanced bus systems. It's a true engineering masterpiece, and its low power architecture and performance makes it a very strong platform for AI/ML on the edge. Applications can be in the sensor fusion space, healthcare, mobility, wearable, PC peripherals, and the IoT space. All our application areas where we already have customers developing products on this platform. Looking under the hood, the nRF54H will deliver four CPU cores, next generation radio supporting the latest Bluetooth 6 specification. It ups the game on security, delivering a very flexible and granular security scheme tailored for the needs of the application. It has Nordic IP and technology to maintain ultra-low power leadership, coupled with advanced peripherals like CAN and high-speed USB, high-speed memory interfaces, and state-of-the-art analog-to-digital converters. There is a huge range of products and end applications that can be realized with this chip. Not only products for today, but also products for tomorrow. In advanced systems today, you will typically have one to two MCUs, a communication chip, and analog circuitry, and sensors. The nRF54H will remove the need for these, leading to significant savings in bill of material on the system level that can be realized for our customers. This chip is leapfrogging our competition. To illustrate this point, we benchmarked it against some of the highest-end embedded MCU systems of our competitors. We found that we have twice as much processor performance, and we are 30% more energy efficient than the products from our competitors that comes the closest. These are staggering results and something we are truly proud of, and looking at the charts, I think they speak for themselves. We have chosen to partner both with TSMC and GlobalFoundries for the 22 nm process. In embedded system space, 22 nm is today the state-of-the-art process, where we get all the properties like, the radio performance, low power, and non-volatile memory that we need to make the best products. We expect the 22 nm to be the new battleground in the market, but we are one of the earliest adopters. We have IP and low power technology in this process node that puts us ahead. 22 nm is important because it allows us to have the technically best products in the most cost-efficient way for technology today. This, coupled with the fact that we have diversified our supply chain, puts us in a pole position for growth in the market. So where are we now today? I'm happy to say that we are in a good place for these products and on track for launch this year. We are currently in the qualification stage, preparing the product for mass production. We have the first orders on the books, and we will continue to ship products supporting initial customers on initial ramp volumes and prototype volumes this year. We are also paying special attention to our module partners to allow a scale to the broad market at launch. We have talked a lot about hardware here, and that does not do full justice to the rather large investment we are doing on the software and design enablement side. Customers buying our chip benefit from a huge ecosystem of software to quickly be able to do proof of concept and develop their products. In other words, we enable ease of use for these customers. Nordic is recognized in the industry to deliver the most robust production-grade software. This, combined with our innovative support and training system, we guide our customers to success every step of the way. One or two products is not enough in the market. As the Bluetooth market grows, there is a need for a whole range of products with different properties adapted to different end markets. We are now in a situation where we have done the heavy lifting on technology development, and we can utilize our engineering force to launch product at a much higher pace compared to previous years. Our ambition is to launch two to four new product families per year. It will be products in a wide range of properties, enabling us to address the full serviceable market. We in Nordic, we like to see our customers as partners, and as partners, we share roadmaps and information that allows us to make the best product in the world. We will never make a product for only one customer, but if we make product for the leading customers, they will propagate. So how do we translate all of this into a growth plan? I have said several times that we have a unique growth opportunity with the introduction of the nRF54 Series products. As we start introducing products in the market, we will start seeing early revenues on the nRF54 Series in 2025. But since customer designing cycle takes time, their ramp-up speed will vary. We will see a limited effect of the full potential of the nRF54 Series in 2025. We will introduce more products throughout 2025 and 2026, and we will accelerate growth, and we will see that the nRF54 Series become more and more important, contributing to accelerated growth throughout the decade. To summarize, we have a unique growth opportunity ahead of us, driven by the nRF54 Series. Strengthening ties and growing customers across our customer base will further accelerate growth. Moving to the cost-competitive nRF54 Series in 22 nm will support our gross margin, and this will be further strengthened as we revitalize the broad market that represent stable, higher-margin business. Last but not least, we will continue to invest in our market-leading products, building on our market and technology leadership, also being recognized as the reference solution in the future. I would almost say that the sky is the limit, but I'm super excited to show you the potential over the next few years. Thank you, everyone. Thank you, Øyvind Strøm. Our tight schedule brings us to our next speaker before we deserve a short break. With more than 15 years of experience from Texas Instruments and nearly a decade as the CEO of Airthings, he brings us huge expertise from the semiconductor industry. Joining us in April this year, as part of the structural changes and new leadership team, he has already made strong impact. He also just crossed the finish line of Oslo Half Marathon this past weekend, proving he's always up for a challenge. Øyvind Birkenes, Head Long Range Business unit, over to you. Thank you. Thank you, Anne, and I can certainly not run as fast as you, so thanks. I'll sign up for the full marathon next year. So when Vegard called me to take on this role to lead Long Range Business unit, I was first a bit skeptical. Like many of you, we have been disappointed seeing the results from Cellular IoT and the revenue growth over the last few years, but I also been on the other side of the table, building up an IoT product company with Airthings, and there we were creating IoT-connected air quality monitors for consumers and for commercial spaces around the world. It was very clear back then, when we developed those products, that if we could utilize Cellular IoT in every device instead of just the gateway, the products would be so much better. The user experience would be better, the analytics would be better, and we would create more engaging products. I'm very excited about where what we're about to do. Since I came on board in April, I've been traveling around the world, visiting with customers, partners, potential customers, and I also spent a lot of time with our exceptional engineering teams in Finland. I don't think you can find stellar experience like we have in Finland today with Nordic. I'm very excited about what we're going to build moving forward. I will share our assessment of Long Range Business and what we are changing to grow both short term and long term. We're gonna take market share, and we're gonna expand the market. I'll also show how we are sharpening our focus to accelerate growth, to create a really great business and a differentiated business for Nordic over the coming years. We're gonna reach profitability by 2028, but for us, that's just a small milestone on the road ahead for the longer-term goals that we have for this business. I want to start to talk a little bit of why product companies will look more and more towards cellular connectivity in the future. Cellular connectivity offer the most reliable global network. It's a most reliable global network, managed network, where there's people actually managing these networks every day, with security standards, and it provides more or less global coverage. You can connect any product directly to the cloud without any local gateways, and with Cellular IoT, you avoid the risk of connecting devices to your local networks, which is usually prohibited in any commercial space. They don't want to connect, for security reason, any IoT devices to your local Wi-Fi networks, for example. We are seeing that for applications like appliances, healthcare products, we see also for elderly care products. I also see it from even my Nest Protect fire detectors, smoke detectors at home, that many people connect their devices first time. Let's say you have a smart oven at home or a smart refrigerator. Maybe you connect it with Wi-Fi first time when you install it, it's really cool. But then you change your Wi-Fi router, or you get a new network provider, have a new password, and then what we see is that customers don't reconnect their devices. And this is a huge issue for the global brands that are building these products, and for all the OEMs and everybody that wants to see the data from these products. They need the data analytics. They need this for firmware updates. They need this for security updates, to improve their user experience and to make the next generation products even better. So these issues that we see many times with BLE and Wi-Fi is not an issue with Cellular IoT. Products will get automatically connected without any user intervention, and they will stay connected. So it's very clear that as the price of Cellular IoT comes down, the market will expand into many more applications. Nordic is certainly at the forefront to capitalize on this opportunity, and it's a bit how we saw the Bluetooth Low Energy market in the early days. It all comes down to cost, to power consumption, ease of use, and that's what we at Nordic are solving. Why has it then taken so long? We see three key reasons why we are where we are. It's been historically lack of global coverage for LTE-M and NB-IoT. Customers have been asking for 2G fallback solutions to secure that they have coverage, and we have not been offering that. We see that now 2G is being shut down in country by country, and we see that mobile operators are enabling LTE-M coverage, more and more base stations, and in more and more countries. We also see now with new satellite technology, we can have a backup solution to satellite networks, and I'll talk more about that in areas where you don't have coverage. The lack of global coverage, we are seeing this is gonna be behind us moving forward. The second issue has been that our Cellular IoT solutions have been too costly for wide adoption. We are changing this now with the nRF9151 and with our aggressive product roadmaps moving ahead. The third has been complexity. It's been challenging for product companies to create products with cellular technology. We have learned so much over these last years, and we now finally have solutions that are easy to design in and have very robust software stacks for connectivity. We have great solutions now, all the way from the antenna to the cloud. So our approach moving forward, we see that we have gone too broadly with a costly solution, and we are changing this. First of all, we are sharpening our focus to three core markets, where we see we have three differentiation- true differentiation, and we already have proof points of future growth. And these markets asset tracking, metering, and within industrial IoT. Secondly, we are making it a lot easier to utilize Cellular IoT products in any application, into existing applications and in new applications. And we are also making it easier for customers around the world to actually move from incumbent players that already have a high market share and move them over to Nordic. And with geopolitical issues we're seeing right now, we see a big interest in this. Thirdly, we are changing our product roadmaps to be to lower cost solutions and higher performance, so we can increase the market share, but also expand the market of Industrial IoT asset tracking and many other markets with cellular connectivity. And Nordic is highly differentiated with the lowest power Cellular IoT connectivity solutions on the market. Low power is very important in these key markets. It enables battery-operated operation with very long battery lifetime. And if you look asset tracking, it's a market that's gonna grow tremendously over the coming years. As the solution cost comes down, we're gonna go from tracking very high-end assets that we do today, to lower cost assets at much higher volumes. asset tracking provides enhanced operational efficiency, loss prevention, it enables data-driven decisions from logistics companies, improved security and compliance. Nordic provides fully asset tracking solutions with now the new nRF9151. The lowest power, it is integrated locationing with GPS, and has the smallest size. If you look into smart meters, these are typically today connected with proprietary networks. These are costly to maintain, and we see many utilities are tired of having to run their own proprietary networks. We see also, metering companies that have rolled out meters with modules from China. We see a big uptick in smart metering products utilizing Cellular IoT moving forward, and these are products that will ramp over the coming years, and they will last for many, many years to come. Low power, country of origin, radio performance, security, are all really important factors to win in this market, where Nordic have a strong play. Industrial IoT is a broad market of remote sensing and control, but with our easy-to-use solutions, with low power, and also now with our nRF Cloud solution and high level of security, we have really what it takes to win in these type of markets, and we also have a lot of synergies with our Bluetooth devices and Wi-Fi solutions. For the software, for the tools, but also for customers, so we can sell complete solutions. We see that more and more applications are gonna use multiple connectivity solutions for their products moving forward, and Nordic is in a unique position here. We have a conservative approach when we look at this serviceable market for Cellular IoT. We're still seeing a huge growth asset tracking over the coming years, and we already have a good share of this market. We'll grow with the market, and we will go. We will take a bigger market share. If you look on metering, it's a large market overall, but with a wide range of connectivity solutions. So we see the serviceable market is modest, but also with big upsides. And we are already seeing more and more interest in cellular connectivity as coverage is coming and price points are coming down for the solutions. And for Industrial IoT, there is also a range of connectivity solutions being used today, but as solution costs are coming down, power consumption is coming down, and that Cellular IoT becomes easier, more and more companies will move to cellular-type connectivity. It's really about the price and ease of use that will enable these type of markets. The great thing is that with Nordic, we deliver a complete solution, all the way from the antenna to the cloud, making it really easy for customers to utilize complex cellular technology in their products, and to get their products easily connected and make them stay connected. Secure, robust, and easy. We are certainly seeing that we are exciting the engineers at our customers. Also an important part of this is to get higher up in the stack of our products and with our customers. Every customer must have a cloud solution when they use create IoT products. They need it for device management, for software upgrade capabilities, and most customers also want to know the status of their products and where is the location of my products. Customers want to ensure that their products are fully updated to the latest security standards. Over the last few years, we have been developing a cloud solution for customers to use, which we call nRF Cloud. It makes it easier and faster for customer to go to production. From they start with a project until they go in mass production, it goes faster, and it's easier for these customers. While it's only a fraction of our customers that are utilizing and buying these services today, we see an ever-increasing demand and interest for this type of solution. Makes it easy and secure for our customers, and it's sticky. Once we get customers into this, they will stay. It will generate higher margin recurring service revenues that will improve our gross profit margins over time. We talked about coverage, and we see that coverage now becomes truly global. Growing network coverage removes the barrier to utilize Cellular IoT. And as I said, the 2G fallback that has been required by many companies is not an issue anymore, as 2G is being shut down in country after country. And non-terrestrial network, so satellite communication, is coming up as a backup solution and a great solution to connect, especially where you don't have local coverage. And we will support NTN with nRF9151 in the future. And we can do this satellite communication from a tiny device like nRF9151, with small batteries and standard small antennas. And it especially works very well with low orbit satellites, which are coming up in big quantities moving forward. We're also seeing a number of operators are starting to turn on more LTE-M networks or 5G LTE-M networks. And just a few weeks ago, Vodafone confirmed that they are turning on LTE-M in the U.K., and U.K. has been a hurdle for many European rollouts so far. We're very excited to talk about the nRF9151. So I just got a call yesterday from Asia that it's now running in full production in our production facilities. And this is the smallest and lowest power wireless MCU, and lowest power solution for Cellular IoT in the industry. It supports 5G LTE-M and NB-IoT, and it also includes GNSS for locationing, and it supports DECT NR+ for local networks. It's 70% smaller than our biggest competitor, and it supports both Power Class 3 and Power Class 5. And we will support non-terrestrial networks for global coverage moving forward, and it's also being produced in a U.S. tariff-free country of origin. To grow and gain share, we are executing on some near-term actions. First of all, we are simplifying migration from incumbent players to Nordic. There are some incumbent players out there with much higher market share than us, and we are working with companies, and we are helping to make it easier to do these migrations, with everything from guide software to evaluation sockets to, of course, doing training and helping out our sales and distribution networks. We're also focusing a lot on NTN and getting this out on the nRF9151. As we see, this is gonna open up many more design-ins for our cellular connectivity. Then we're gonna capture a significant share of growth by enabling partnerships with telecom operators and IoT platform providers. We are also doing bundled solution, which is unique for Nordic, with our BLE solutions, Bluetooth solutions, and Wi-Fi solutions, and our nRF Cloud solution. As we just launched nRF9151, we also have a very exciting product roadmap moving forward. We are transitioning as well over to 22 nm to also create the next generation cellular wireless MCUs. We are going to utilize the application MCUs that you saw Øyvind Strøm presented from the nRF54 Series, and we already have samples in our labs in Finland of the new 22 nm platform. We are very excited to get this out in the market. It comes with improved performance, much higher level of integration, lower power, and lower costs. It certainly has higher value at lower cost to drive market expansion and also our market share of Cellular IoT. It's very clear that with all the benefits we see with Cellular IoT technology, it's really the price and ease of use that is the current barrier to market expansion. With the nRF9151, we can win a larger share of the market and also enable the market to grow. Finally, now it's in mass production. We'll take this to the next level with our next generation 22 nm platform, the nRF92 Series. As I said, I just came on board earlier this year, and I've been traveling around the world to meet with a lot of customers and a lot of potential customers. With nRF9151 and our future roadmap, we will unleash a large part of the Cellular IoT market. We will continue to make it easier for our product companies and OEMs to move to Cellular IoT, and it's really the way we look at it now, a bit how we saw the Bluetooth Low Energy market in the early days. We will work to reach profitability by 2028, but for us, that's just a milestone on our longer term ambitions and our longer term goals to gain a lot of market share in our core markets asset tracking, metering, and Industrial IoT. So to summarize, it's really three keys to turn Long Range Business into a profitable business by 2028. Number one, we're going to drive growth by taking share and expanding the market of Cellular IoT. We're going to focus on three asset tracking, metering, and Industrial IoT, and we're going to work a lot on awareness and utilize our excellent marketing teams to also drive this. We're going to increase margins over time. We have an aggressive product roadmap to lower cost solutions, and by increasing also the share of nRF Cloud, recurring service revenues over time, and thirdly, we're going to sell more of what we have. Utilize the investments we have done to come quicker to market with new solutions. We'll reallocate some resources to support critical programs in other BUs when required, and we will certainly raise the bar in our teams. We are going to create customer-obsessed business units and implementing full accountability and cost control. Long Range Business will be a truly great business for Nordic moving forward, and we have our milestones to reach profitability and more than $100 million of revenue, but that's just one little step ahead for us to meet our longer-term targets. Thank you. Thank you. Thank you, Øyvind Birkenes. Okay, let's take a 15-minute break from you here in Oslo. There will be some coffee and snacks just outside the room. For our online audience, we'll be back in 15 minutes, so don't leave us. Thanks! Welcome back, everyone. I hope you're ready for another insightful hour. Now, we will dive into market strategies, how innovation is gonna shape our future, and the financial updates. First out, I would like to introduce our EVP of Sales and Marketing. With an incredible twenty-five years at Nordic, he has been at the forefront of building and maintaining relationships with all our key customers globally. As one of our longest-serving members of the executive management team, he brings deep insights into the company, perfectly balancing the fresh perspectives from the new members that you have met earlier today, and knowing Geir, he has likely knocked out a few hundred burpees this morning. Geir Langeland, over to you. Thank you. I think you're wrong on that. I only do that on Mondays, Wednesdays and Fridays, I think. I've been serving for a long time with Nordic. I think to the people in the room, you know, and the people listening in online, I was here when we launched our first 2.4 GHz products in 2002. We also announced Bluetooth products, you know, in the middle of the decade. It's been very, very important moments of the company, and I feel we're in the same place today with the nRF54 Series and all the good stuff we got going. There is this level of enthusiasm in the company and enjoyment, you know, that we feel every day. So out of all the minutes I worked in Nordic, I've been given twenty minutes here today. I'll be spending time with you and speaking of our core values, the segments we address, and where we can grow our customer count in a profitable fashion. At the same time, I look a little bit backward, where we come from. So it makes sense to look at our DNA. Some of you will have seen this before. The customer is at the front and center of everything we do. But as you know, there's always some kind of evolution in DNA. Since Vegard joined, we've added business units that really sharpens the customer side of things. Our customers expect us to add value across the board from where they start investigating our products, developing with it, shipping it. We've added Dev Zone and Dev Academy, where they can get support and training 24/7 with our products. And with the upcoming launch of the nRF54 Series, we are at a really breaking point, where we're going to elevate the bar from what customers can expect from Nordic. Through our partners, we're now offering a complete portfolio of third-party modules, shipping globally, enabling them to put down our components on the board in an easy-to-use fashion. The customers can count on Nordic to deliver. In order to see what's going to lead us to growth, we have to look at some of the trends. We, and I've done that for more than two decades, we strategically focus on areas with really high growth potential, but of course, being smart with fundamentals supporting Nordic's ability to win. In consumer, which is a Nordic stronghold, the penetration rate in some segments could be said to be high. However, there's still room for organic growth. This, combined with new and exciting opportunities coming out in the consumer segment, means that the potential to grow is still there. We believe that the healthcare electronic device market will continue to grow in the foreseeable future, with continuous glucose monitoring as a real driving application. As Vegard mentioned, the industrial market opportunity is big, it's diverse, with many types of different applications. I think people are having problems really understanding how encompassing and wide this area is. It's often in the broad market, which is served by our distributors, supporting remote monitoring and access. And finally, which I think is also very important, is the AI and ML at the Edge. It's a buzzword, but if you look at it, it's really looking for two key components that our company delivers: connectivity, and I think Øyvind Strøm used high computation efficiency, et cetera. So we're primed, you know, in a market that does look exciting. In order to succeed in these major trends or areas, we are going to need solutions. There is no doubt about it, we're going to need some good solutions. Our customers expect Nordic to be able to offer solutions. With increasing system complexity, our customers' focus expand to include system-level aspects, in addition to all the MHz and megaflops or µA that the other guys have been covering. In order for Nordic to win, we need to support a wide range of technologies. We need to adhere to standards in order to integrate seamlessly into our customer's ecosystem of choice. Whenever you use a part or a component or a system from Nordic, it's gotta work. Quality is part of our DNA. As a company, we're embracing the transition from product to solution. We have the focus and the skill set to do so. It's also part of our DNA. Looking ahead, we're very strong in consumer. It is our strategy to strengthen our presence in healthcare and industrial, while maintaining this consumer stronghold. Our focus on healthcare and industrial provide Nordic with the opportunity to continue to expand our global customer base and generate a long-term, stable revenue. These types of application areas typically have a product life cycle of 10 years-15 years, which is a lot longer than what you would see in the consumer space. Achieving this goal is very closely linked to our ambitions to increase our presence in the broad market, and this is the engine for our long-term success in healthcare and industrial. We'll, of course, continue to focus on balancing our end market presence to ensure the long-term success of the company. So I can promise you, I'm not going to be here twenty more years, but we are going to enjoy a long-term success. We have a very high conviction that the market for healthcare electronic devices will continue to grow in the foreseeable future. Vegard touched on some of these drivers. It's going to be driven by applications such as continuous glucose monitoring, drug delivery, it being insulin, inhalers, et cetera. There's a global opportunity, there is national governments, there is insurance companies driving these applications ahead. And with the outstanding performance of the nRF54 Series, we are going to take this market. And this is combined with the nRF54 Series dual sourcing strategy, will provide customers with a geographically diverse and resilient supply chain. If you all remember the crunch we've been through since 2020, it's the number one thing that's come up from customers: "How can you ensure my supply going ahead?" Moving on to industrial. The industrial market opportunity is big, and so is our aspiration. We aspire to be the market leader in wireless IT solutions for the industrial market. This requires a breadth in the product offering. You can't corner this market if you only possess one wireless technology. And as you all should know by now, we have Short Range connectivity, we have Long Range, Wi-Fi, and PMIC to add to that picture, as well as cloud connectivity. The applications and the customer base is very diverse. The partners in industrial are in the broad market, which is mostly served through our distribution partners. Very importantly for Nordic is our partners' reach, the amount of customers they touch, as well as their designing skills. We also believe that new ESG-type factors will influence our market through the need for energy consumption or reducing the carbon footprint. Øyvind mentioned, you know, that we're lowering the power consumption, so the amount of coin cells being used in the market, you know, is also going to drive volume for us simply because people are looking for a lower power. We also are introducing the nRF9151 cellular Long Range product. This will further strengthen our value proposition in the Industrial IoT market. And we remain optimistic and confident that the industrial application will be one of the key growth drivers in the industrial market space. So, talking about industrial, I would like to introduce to you a new and extremely innovative application to you. But instead of me presenting it, I've obtained a video that should explain, you know, exactly what it does. All right. At the right temperature, we get life. And at just the right temperature, we can preserve it. Introducing the Ember Cube. The world's first self-refrigerated, cloud-based shipping box. The temperature-controlled cube is stackable, reusable, and intuitive, designed to protect and transport its precious cargo. When it's time to go, you can be sure the Ember Cube holds the perfect temperature, thanks to its onboard cellular radio, which reports humidity, temperature, and location, all trackable on our proprietary cloud-based dashboard. Whether the cube is on the ground or in the clouds. After the cubes have arrived and are unloaded, a simple press of the button automatically generates the return shipping label on the digital screen and schedules its own pickup with the carrier before returning to where it started, ready to be reused rather than discarded. Groundbreaking technology, protecting groundbreaking medicines to help save lives and life on planet Earth. Very nice! There you have it. And this, of course, is the real thing. So if it was hard to see from the video, you flick this switch open, you deposit the medicine that needs to be refrigerated, and it's a temperature-controlled environment that would last for days. So just imagine if we had something like this during the pandemic when people were shipping vaccines. And then when you put it in the box, there's actually a button here to press to send, and then you would have the shipping label. It's just an e-ink display. It looks like a pretty simple device, but it is actually a little bit hard to explain exactly what it does and what's inside it. So I invited Clay Alexander at Ember LifeSciences to actually give us a short testimonial on what's inside it. Hi, my name is Clay Alexander. I am the CEO of Ember LifeSciences, and I'm very happy to be here presenting to you on Capital Markets Day. We are very proud to be partnered with Nordic, and we've been partnered with Nordic for many, many years. You may be familiar with the Ember Mug, which is a product being sold worldwide, the world's first temperature-controlled coffee mug, which all of our Ember products have Nordic chips and Nordic processors. So, more recently, we've invented the world's first self-refrigerated, cloud-based shipping box, and we're disrupting the way that the healthcare industry moves medicines around the world, and particularly cold and refrigerated medicines, and with this new box, our Generation Two, we've actually combined a series of Nordic chips. We're actually using four different Nordic chips: the Wi-Fi chip, the cellular radio chip, the Bluetooth chip, as well as a power management chip. And by combining all those chips together, we've been able to save a significant amount of power and really reduce our power consumption. We also just really enjoy working with Nordic. We've got a great history of working with them, and they've been wonderful partners. The combination of the Nordic chips in our processor unit here enables the box to just really function quickly, and work well, and have, like I said earlier, a very low power consumption, which is great for battery life. We get about fourteen days battery life on this Ember Cube. This box is designed to be reused, so you can ship medicine directly to a patient's doorstep or to a hospital or a clinic, and then the shipping label automatically flips to the return label. We use the cellular radio on board to go up to our cloud and automatically schedule a UPS or FedEx pickup, and then they come and pick up the box, and it returns back to the distribution center, and where it can be reused hundreds and hundreds of times over many, many years. So again, we're very, very proud of our partnership with Nordic, and I'm happy to be presenting the Ember Cube at this show. Thank you. Thanks. So I think this is an example of something we see with a lot of accounts. First of all, it's an industrial use of cellular. Secondly, it's illustrative of Nordic being scalable and capable of actually expanding with parts. So this customer started with the nRF51, you know, a decade ago, and now they're designing with pretty much everything we have in a new application. So we can create scalability and actually migrate with customers. So moving on from industrial to consumer. Our consumer business has had many years of nice growth, you know, up until the peak in 2022. Post the 22 peak period, we now see signs of a gradual recovery, driven by continued demand in applications like gaming, work from home type devices, smart home, et cetera. And as I mentioned earlier, we continue to view the consumer market as attractive and believe it offers us a lot of good opportunities to grow organically. Also, the nRF52 Series has been instrumental in establishing Nordic's consumer business, and with the new upcoming nRF54 Series I mentioned, we're gonna have that moment again. We are going to see a new period of growth and successful design wins coming. And with that, I'd like to share another customer story with you. In the consumer space, and it's actually a new category for us. It's the ultimate in low power consumption and desirable design. It's the Galaxy Ring from Samsung that I'm actually wearing on my finger. It's lightweight, provides very, very long battery life. We're talking more than days, it's more than a week. It's a super compact design. It measures a slew of biometric sleep variables, workout, walking, running, and it's connected through your phone. You know the best thing of all? It's actually using the nRF5340 from Nordic for all the critical processing. It's using the nRF5340 for all the communication with the smartphone. We're not an appendage in this application. We're the key MCU. You see it here, it's the Nordic nRF5340 MCU with Bluetooth Low Energy. I believe it's the first time it's written in this way. You're going to see multiple examples of these things coming. I think it's a very nice segue into my coverage of our key customers. This is actually a new key customer for Nordic. Our position with our key customers is strong. The revenue with our top 10 customers has nearly tripled since 2019. It's been a major contributor to our revenue growth. We strive to retain and further develop with the key customers through close collaboration and really ensuring that our product roadmaps are aligned with their R&D programs. There is a long interception with our customer. They may be two, three, four years ahead, where we have to intercept with our product launches. We've seen it done with Bluetooth Low Energy successfully, and we're gonna redo it with the cellular offering in our Long Range program. However, the broad market is still lagging a bit behind. The supply and demand imbalance during and post the 2022 peak period did cause and have caused inventory buildup across the supply chain. In addition, the broad market, as you all know, small to medium-sized enterprises, they faced some pretty severe headwinds, interest hikes, and demand drop, et cetera. The broad market recovery is ongoing, although with some regional differences. More specifically, we really observe EMEA, Europe, lagging behind the other sales regions that we see. And as I said earlier, we do think that the new exciting nRF54 L, the nRF54 H family launch, will enable us to capitalize on this ongoing recovery within our existing customer base, and by expanding it with new customers, like I've just shown with Samsung. Speaking of our customers, I'd like to show you a chart, which is basically a count of our customers, so the number of customers buying from Nordic. You see here, there's a nice, steady growth. If it went all the way back to where I started, it was almost at zero, and then it grew steadily until 2020. COVID hit us. It's a flurry of new customers ramping up, as well as some of the key customers I think I mentioned at the Capital Markets Day in 2019. The lead times went up, demand increased, wafer allocation, flatlining on top, and then enter 2022, 2023. The consumer companies are doing pretty well, but the small to medium-sized enterprises are hurting, so inventories across the board were high. So there's a lot of customers that haven't purchased from us for more than a year, and the situation is pretty bad still in Europe, but we will recover. The good news, when you look at the total amount of customers now, we actually did hit an inflection point, you know, in Q2 2023, and this hasn't been shared before. So the amount of customers now buying from Nordic is on the increase again. And we are going to use this for all it's worth. You see, we're now above the level we entered into 2020, and this is the time to capitalize on it. When you're on a roll, you introduce some new products, and you can generate new designs. We can generate new designs with existing customers, and we can generate new designs with the broad market. Can we do it? We certainly believe so. So I'd like to summarize to you, how are we going to win? I can pledge to you that we will maintain a high and relentless focus across the Nordic organization to prioritize the customer. Product innovation is what brought us to where we are today, and we will relentlessly pursue this path going forward. We do need, like Vegard said, to focus on execution of our product roadmap and the key collaboration programs. This is where I think the new business units is already having an effect. Remember, they've been active for less than six months. We really do see a huge difference in the execution. In this way, we will retain the strength and our position with our key customers. In the broad market customer segment, we do have a very solid go-to-market model. We do have international distributors. We're with the broadliners, we're with specialist distributors, so the model doesn't need to be fixed there. We will, however, increase our support to them so that they're better able to succeed in selling Nordic products and solutions. We also deem the module business to be critical to our business. The nRF54 Series that Øyvind covered earlier is going to be supported by a breadth of third-party modules available on the day of launch, so that broad market customers can simply pick it up and integrate it into their designs very easily, and through increased focus and effort, the modules will drive growth for us in the broad market, and that is how we will win. Thank you very much. Thank you, Geir. Now, I am pleased to introduce you to Kjetil Holstad, Head of Corporate Strategy. Kjetil has been a key player in the semiconductor industry for nearly 25 years, both in Atmel and Texas Instruments, with the last decade in Nordic, heading the product management team. Similar to Geir, Kjetil's deep experience within Nordic also fits perfectly with our new leadership team. So, Kjetil, the stage is yours. I'm gonna talk about innovation and how innovation is key for a technology company like Nordic. I'm gonna touch upon how the investments we've done over the last years is gonna capitalize when we move forward with the new Nordic 2.0 that Vegard outlined. Before we do that, we need to start to talk a little bit about what is Internet of Things. At the heart of IoT is the real world, and if you want to make actionable insights in IoT, you need more than connectivity. The real world is analog, and to understand the analog world, you need computation, you need smartness, and you need security. You look at the customers, some that we have shown you examples of today, their innovation investments, their attention, and their differentiation doesn't lie only in the connectivity. There's a lot of elements that goes into building products like this. They think about their product from battery to the antenna, from device to cloud, and from the hardware to the ecosystems. So Nordic, over the years, if you've been following us, you have seen that we have added compute capabilities to our chip. We have added more connectivity as the years has progressed, Wi-Fi, cellular, in addition to our Long Range. We have added and then stepped up our security, and we saw some examples of that. Software is now an integral piece of what we do in our R&D, building up the software solutions that allow our customers to build products. Machine learning, AI, those are things that are coming, and developing the ecosystem that you have seen here, we do that in partners with our customers... So Nordic has transitioned from being a Bluetooth connectivity company to a broad end-to-end IoT provider. And we do that because we're investing in growth across our portfolio. It might seem that this is very connectivity oriented. We talk about Wi-Fi, Long Range, Short Range, which are connectivity technologies. But you have seen from the presentation that Øyvind Strøm did, and Øyvind Birkenes, that the products are so much more than pure connectivity. And the interesting here is the synergy that comes when you look at innovation, not in isolation within the BUs and within the technologies, but when you explore the synergies that comes from looking at this as a total. Our innovation is embedded in the deep understanding of our customers' concerns and our customer needs in the market they serve, and they are not different, whether that's Wi-Fi, cellular, or Short Range. A lot of them involve around the same things. We are always evaluating both organic and inorganic growth opportunities, so we can improve and increase our value proposition in our customers. And it's this innovation over years that has led us to this world-leading market position in Bluetooth Low Energy. The position that we have today in the market is driven by the innovation we put in over decades with the nRF51, the nRF52, and the nRF53 Series. This graph shows the last 12 months design certification of Bluetooth. And Nordic, for the last 12 months, have seen about five times as many products with ours versus the closest competitors. And over the last years, we've been consistently reporting about 40% market share in this space. What we typically don't show that this is quite a feat when you look at all the competitors we have. We are currently tracking more than 60 competitors in this space while maintaining this leadership positions. This success is not solely due to the chips. Geir talked a lot about the solutions, the ecosystems, the technical support, and we spend a lot of effort innovating also in that space. Back in Capital Markets Day 2021, we talked about 80% of our R&D spending was going into products that was gonna be launched beyond 2023. We now start to see the fruit of those investment. We have introduced the nRF7000 Series for Wi-Fi. Øyvind Birkenes has talked about the nRF9151, and obviously, we have to mention the nRF54 Series that Øyvind Strøm covered, that really have raised the bar on innovation and technology advancements. Our commitment to research continues across all of these technologies. It is important to say that the lift that we've done now with the nRF54 Series allows us now to shift the focus slightly. We've done a major technology transition from 55 nm - 22 nm. We've done a major transition on the architecture. We developed a lot of proprietary IP and technology to maintain and leapfrog competition in terms of low power and other aspects. Going forward now, we will shift our R&D and innovation focusing to get closer to customers, making sure that we spin out products that are tailored to hit customers in the market they operate, and we saw some of those markets with Geir earlier today. Of course, when you build all of this, you cannot forget the software, and Ember LifeSciences is a good showcase of that. When they developed it for chips from Nordic, doing so with a common unified software framework really helps their approach to making their products. In our industry, the semiconductor industry, we have to acknowledge that development takes time. So looking at the 54 series that the rest of the world are now starting to see, and it looks like it's at its beginning of the journey, we have spent about 5 years working close with our key customers to understand their needs and challenges to develop this new, innovative, and groundbreaking product. Last year, we started our customer sampling. Vegard mentioned we have sampled 200 customers, each of the nRF54L and the nrf54H Series. This is a really exciting moment for people who are doing innovation because that allows us to start to get feedback on our products. We have spent the last year refining both the hardware and software, preparing for our commercial launch. What's really exciting, and we showed some of that right now, that we're now at a stage that not only we're gonna see the commercial launch of the initial products, over the next twelve to eighteen months, we're gonna roll out more products, targeting more customers and more verticals. And those products will be enabled by both new ICs and new software that comes supporting these ICs. The commercial launch is also the starting point where our customers can start their product qualification, preparing for their product announcements and launches. There's nothing better for our, for us as a semiconductor company, developing this for five years, to see the products coming out... From our customers, and there's a lot of announcements coming in 2025 and 2026 of products that is based on this technology. We've seen from the nRF52 Series and the nRF53 Series, that once you launch, this product lasts for a long time. We are very well prepared, and this nRF54 Series lays the foundation of the product strategy in Short Range for the years to come. I'm not gonna repeat all what Øyvind Strøm said about the nRF54 and its groundbreaking potential and performance. Gonna talk a little bit more about the synergies of R&D. Like I've been saying, the customers that are using Wi-Fi, cellular, et cetera, their needs are not that different. So we have spent a lot of effort into the nRF54. We're now ready to capitalize that across our scale-up and established business units. As we develop these roadmaps, we will fully leverage the architecture, the performance, the technology that is put into the nRF54. Some of the benefits you start to see, Ember again, was a very good example, talking about four devices from Nordic. On this slide, you have an upcoming evaluation platform for Nordic called Thingy:91 X. I think we showed a similar one in Capital Markets Day in 2021, containing two or three chips from Nordic. This one is made asset tracking in mind and contains five chips from Nordic, all coming together with this unified platform, making it a really, really good starting point for anyone asset tracking. this integration and this synergies that comes when we look at all of this together is what's crucial. In the Long Range space, the 9151, and what we've been doing there has really raised the bar of the connectivity Long Range solutions. The level of integration, the level of low power, is unheard of. But like Øyvind Birkenes was telling, there are still some challenges with the product market fit when it comes to cost, et cetera. Taking the long development cycles that we are talking about in mind, it's no secret that we already started on the nRF92 Series, and that's gonna fully leverage the architecture and the technology improvements of the nRF54. With the focus that we have now on the three key asset tracking being the first, where we, on the Short Range side, have a really, really long strong position. We know the importance of battery lifetime, the location technologies, the ecosystems. In the Industrial IoT, Geir talked about our presence there on Short Range. So we know that they care about connectivity, we know they care about security, we know they care about the criticalities of infrastructure, and similar in metering. So this sharp and focused, we're gonna take that into the nRF92 Series and make it the next extremely good products for the future. So this new focus in Long Range, I'm super excited to see what that can do for Long Range Business. going back to the core of what we're doing, we see a strong overlap with Bluetooth Low Energy and Wi-Fi among our customers. And back in the Capital Markets Day 2021, we talked about how we were going to introduce Wi-Fi in the market. And we have done exactly as we said. The nRF7000 accelerated, was introduced to accelerate our learning and start the market penetration, initially combined with the nRF52, nRF53 Series and the nRF91 series. The nRF91 series and Wi-Fi is now revitalized with introduction of the nRF9151. Now that we're on the verge of commercially launching the nRF54, the nRF54, combined with our nRF7000, is a unique combination as well. And I'm happy to say that we are seeing the sign-in across all this product combination with our customers today. Similar to Long Range, also here, we are working on the next generation nRF71. We talked about when we did the Wi-Fi acquisition from Imagination, that what we wanted to do was take the Wi-Fi connectivity and marry it with the DNAs of Nordic on low power and performance. The nRF71 Series is gonna do that. Take everything we put into the nRF54 and combine it with a new ultra-low power Wi-Fi 6 radio, and we're certain that this new product will significantly expand the serviceable market for Wi-Fi. Going back a little bit to where I started, talking about the products in IoT and what they constitute of, one thing they pretty much all have in common is they are battery-operated. Nordic's commitment to low power is crucial to extending battery lifetime, and for our customers, this is a key decision criteria when they select a partner. Increased battery life or time for their products means reducing waste; it means improved user experience for their products. So thinking about battery and energy efficiencies from that battery all the way to antenna is crucial to them, and that is the whole premise of why we are doing power management circuit, in addition to everything else we do. We are making power management ICs that are optimized for our wireless SoCs, that take the customer's entire system into account, to make sure we prolong that battery life. It is important to understand that for PMICs, there is no one PMIC to rule them all. Our customer needs vary across their applications. So we understand that and are building up a portfolio of devices, starting with rechargeable products, where we now have two products in the market and are working on two more coming online soon. Our focus is now also shifting towards primary batteries or non-rechargeable batteries, which significantly will open up the services, serviceable market for our PMICs as well. And again, super crucial that we do this in tight synergies and a tight integration with the roadmaps of the Short Range, Long Range, and Wi-Fi business units. Talking a little bit back again to the Capital Markets Day in 2021, we identified four opportunities and four key areas that would help us strengthen our core business, that will help us increase our competitiveness, expand the connectivity offering, and set us out from this journey to become an end-to-end provider for IoT. Since 2021, we have executed on what we said. We acquired Wi-Fi technology from Imagination and established a Wi-Fi business unit. We established ultra-low, now we acquired ultra-low power memory technology from Mobile Semiconductor, which is a critical component in the competitiveness of the nRF54 Series. Last year, we acquired edge AI capabilities from Atlazo, and this comes on top of organic growth of PMICs, RF frontends, and the cloud offering that you have seen. We are continuing to explore avenues using a similar framework, seeing where we can strengthen our competitiveness, where we can strengthen the journeys that the business units are on, and how we can get in a better shape of serving that bigger IoT play. One of the areas that are very dynamic right now is in the edge AI space, and with edge AI, I have to define what we at Nordic mean with edge AI. This is not new products. This is not a new product category. It's the product that Nordic have served for a long time and that our customer will be making, that just gets smarter and smarter, smarter. Whether that's in the wearable space with smartwatches or in the form factor of a ring that we showed, Geir showed, whether that's in the healthcare space through patches and pumps, or in industrial, just to name a few. These devices become smarter. When you look at that Galaxy Ring, it's monitoring your health 24/7, and it does so for seven days without the need for a recharge, and look at that form factor. That product was unthinkable five years from now, five years ago, so why do these products need to become smarter, and why do you need edge AI to do so? There's many of reasons to do that. A lot of these things care about latency and responsiveness. Sending data all the way to the cloud, processing, waiting for the answer, and getting it back, just takes too much time. That same reliance on connecting to a cloud requires an always connectivity, and you don't always have connectivity with you. So the bandwidth here, it just reduces the reliance if you can do things locally on the edge. Privacy, when you start to connect the world, becomes a very big concern among our customers. Doing things locally and storing those locally helps mitigate some of those concerns versus sending everything to a cloud. I think you're all aware of the problematic things around cost of data centers and cloud infrastructure. So moving processing from the cloud back to the device significantly improves cost, and you can say the same about energy. The energy needed to run these data centers in the cloud is just unsustainable in the long term. So we want to move the devices at the edge to become smarter. And we've been talking a lot today about the importance of energy-efficient compute, which is, again, embedded in our DNA. And we have talked about the nRF54, and especially how the nRF54H raises the bar in terms of energy efficiency when you compare it against not only our previous generation, but across all the competitive landscape as well. Similarly, there have been advancement in what's called TinyML, which is tiny machine learning algorithms, that are now so small that they can run on Nordic devices. So we like to bolster and say we increase our compute, et cetera, but in a bigger scheme of things, Nordic devices are still fairly constrained versus some of the big compute chips out there. You need some advancement in AI as well, and that has happened while we have developed the nRF54. We're seeing customer taking that into effect. Some examples on this slide here, they utilize this technology to enhance their products. One thing all of these products have in common is they all run on batteries. When these customers are looking for a technology partner, they are again looking at that process efficiency as selecting someone who can prolong the battery lifetime. I think with this backdrop, our acquisition of Atlazo and their acceleration technology makes sense. The nRF54 already makes a significant advancement here on the two critical parameters, and this is a little technical, but these algorithms, they are measured in the latency, how fast can you run them, and the power consumption used when you run those. You can see here how the nRF54 is extremely far ahead of the previous generation Nordic chips. It does so with a general compute in mind, so the nRF54 are made to do this, but a whole lot of other things as well. The technology we acquired with Atlazo is specified for machine learning, accelerated in our type of devices. You will see here how we, in a short distance and in future, will come out with a nRF54 variant that fully embeds the Atlazo technology, but that takes power consumption and latency to the next levels. The products that you've seen today will be much more smarter tomorrow, and we are now collaborating with our key customers to see what this potential can unleash on their products, whether that is to eliminate additional compute chips in their products or just embracing the products as a whole. So to summarize, the nRF54 is based on five years of high innovation and technology advancement in Nordic. We have leapfrogged competition on the critical parameters like energy efficiency, ultra-low power, RF performance, and we have increased the potential in terms of what application we can cover. We are now set to capitalize on that investment and that platform into the scale-up and early-stage business units, making the nRF92 Series and the nRF91, nRF71 Series to be really exciting products going forward. And we are continuing to look for things that can strengthen our competitive position, our core markets, and the new business units. And with that, thank you. Thank you, Kjetil. We are running a bit behind schedule. I apologize for that, but I hope it was worth it to listen to Kjetil and Geir. Last but not least, and before our panel discussion and Q&A, I'd like to introduce our CFO, Pål Elstad. Elstad has been in Nordic, and his current position since 2014, and held several senior financial positions before then, both in Norway and abroad. Pål, we're excited to hear about the financial perspectives. The floor is yours. Thank you, Anne. It's a little bit unfair of Kjetil to let me talk about finance after you've been talking about AI in semiconductors. I think that's a little bit unfair, but anyway, I'm gonna do it. I know you all want to jump into the Q&A session, but I'm gonna be quick on the financials. I just wanna say, it's a little bit like Geir mentioned, the situation we're in now. When I started in Nordic a decade ago, I was sitting and reporting orders from Fitbit on the nRF51, and we were just to embark on the nRF52. That's been the most successful Bluetooth chip amongst all. I think that's one thing we all can agree on today. What I'm gonna talk about now, the management team has talked about ambitions, strategy, et cetera. I'm gonna highlight or sum up the targets, both on revenue, operating margins, and finally, capital allocation that the team has been discussing today. This is the operating model that a lot of the team has been presenting today, and we have EBITDA target of 25%, and we have clearly historically shown that we are able to deliver that. We did that in 21, 22. The model actually works if we get volumes up. That's the main thing we need to do now. Nordic is a growth company, and we need to get growth, and I think driving growth can be done. We have a highly successful BLE or Bluetooth product offering. We're coming with new products, 2 new major products in late 20 22. We have the Wi-Fi, we have the cellular, we have the PMIC. Most importantly, we actually have the combination of all of these that Kjetil talked so much about recently. Growth isn't enough. We need to get gross margin expansion. I'm gonna talk more about that on a separate slide, but this can be done with the new 22 nm node we're coming out with, but it can also be done by selling more in the broad market. Finally, we need to contain costs. We have had significantly higher revenue than today with a lower cost base. So we can actually do it. We just need to get the revenue up, so we actually can deliver on it. This is where we are. Just a little bit recap of the Q3 guidance we delivered earlier in August. We're guiding for a revenue in Q3 of $150 million-$170 million, which is a growth of 11%-26% year-over-year. If you take the midpoint, it's actually the highest revenue we've had since 2022, which is a good development, at least. Q3 is seasonally stronger than the rest of the year. We saw better demand in Q3. Q4, we've also said, will be seasonally weaker than Q3. But we have to acknowledge, we are in a difficult market. The macro environment isn't all good. We all can agree to that. So there is uneven traction in the various markets we operate in. We see stronger signs in consumer. We have some really good, important customers in the consumer market that are delivering great numbers. You can see that on what they report. Geir showed some very good examples on that. We also see that these companies are buying more value from Nordic, and there's no reason these companies are not gonna be really important customers on both L, but equally important, the H, coming out later this year. We see better traction in the U.S. and Asia. Europe is difficult. Europe is where most of the industrial customers are, and that's where the inventory correction situation was the worst. And I said, large customers, generally stronger than the broad market, but number of customers is definitely increasing in the broad market. And I'm not gonna spend a lot of time on this, it's, since we're short on time. But what did we say in the Capital Markets Day in 2019? We said we were expecting 20%-30% growth rates in the Bluetooth. A little bit more, less higher than we said. We're saying now, but still 20%-30%. What actually happened, we came to 2021, we'd had 50% growth rates, and maybe all of us got a little bit excited then, because pretty soon, revenue declined again into 2023 and 2024. But over the period, we've actually had 15% growth. So if you take a line from 2019 to 2024, it is a good growth rate. Of course, less than we expected, but still decent. If we look at the proprietary business, in 2019, we said -10% to high single-digit growth. Main reason is that the proprietary business is gonna be eaten up by or there's gonna be a transition to a more advanced Bluetooth products. I'm pretty impressed how strong the proprietary business actually has been. This is the chips that Geir mentioned he introduced back when he started two decades ago. So extremely good development in this. Long Range had 67% growth since 2019. Well, we're not happy with that, but hopefully Birkenes has given us confidence that this will grow going forward. A little bit about our revenue ambitions. First of all, for the Short Range, our ambition is to grow faster than the market over time, driven by new product launches. We have, as I said, two very new exciting products coming out very soon. In the Short Range business, Vegard showed a slide of 20% growth. We say modest growth for next year, meaning that the nRF54 is not gonna be a big contributor in next year. The main driver for the growth we're gonna see in 2025 is still the nRF52, where we actually still have 40% market share in design wins. But with the introduction of the nRF54s, we do see growth accelerate from 2026 and onwards. Vegard talked a lot about putting accountability on the new business units. I think that's the main change from what we've been doing before. We now need to make sure that Øyvind Birkenes and the team delivers on Long Range Business. the targets we've set there is really to get profitability in twenty twenty-eight. In order to do that with the given gross margin and cost base, that means $100 million in revenue. It's that simple. You have ambitions to do much more, but that's the targets we have, and that's the accountability we're looking at. The same thing for Wi-Fi and PMIC. Due to lower cost or cost base, the target there is 50 million for each of these business areas in 2028. I wanna talk briefly about gross margin. Very important topic. The target Nordic have had for the decade is above 50%. It's a target we have set as a key indicator for us. Of course, we have ambitions to go higher. We saw in 2022, it's actually possible. It was a little bit special market, but we did have 56% in 2022. Now, we're just below or just around 50%. We have some very important drivers going forward that will work and help us get gross margin expansion, or at least keep us at the 50%. First of all, we're transitioning to the new modern 22 nm platform. What does that mean? That means that we can give more value to the customers at the right price. I think it's that simple. We just need to get these products out. We are going to get traction in the broad market. We see that it's very important to have a diversified customer base, because then you can have a better spread on the pricing in the market. The last point, I think, is very important. We shouldn't forget about the technology mix. There is a different gross margin in various technologies. Of course, in the module business, which the cellular in the market is dominated by, gross margins are lower than in high-value Bluetooth products. So depending on the development of the various technologies, and also depending on the various, well, nRF54 L, nRF54 H, gross margins going forward will of course depend on the development in the revenue. But the main point is that we are maintaining our long-term target to generate gross margins above 50%, despite the very strong competitive situation in the semiconductor industry. Now, a little bit about cost. Kjetil discussed, we have, over the last five years, invested $660 million in R&D. The target has always been to have R&D spending around 20%. That's where we were earlier in the period. This has, of course, crept upwards when revenue has declined and cost has come down, gone up, sorry. I think the most important there is that we have been able to contain costs from late 2021, 2022, despite a very high inflation in the market. So we are cost-conscious, and we will continue to be that. Number of employees has doubled since 2019. They peaked in 2023, are slightly down now in 2024, and our target is really to do the R&D, to deliver the products the team has talked about with the current cost level, despite inflation in the market. Very briefly on SG&A, a little bit the same story. We had this increase since 2019, but it had been very flat since late 2022. SG&A has historically been very focused on corporate functions and the Bluetooth business. We're gonna try to keep it really flat, but of course, there's lots of new products to sell. So we need to build up a team to get those products out. So a small increase in SG&A is expected. EBITDA, we have generated EBITDA margins above the 25% target before. We did that in the COVID period. Unfortunately, they are now at unsustainable levels, so we have lots of plans to get our EBITDA back to the target levels going forward. We've set some ambitious EBITDA targets or operating margin targets going forward. First of all, we want to reach 25% EBITDA margin for the established Short Range Business in 2027. When we say the established Short Range Business, that's the Bluetooth business, but we're also including all the SG&A. So this is what we in the APMs in the quarterly reports call adjusted EBITDA. We also want to reach profitability in the scale-up and early-stage businesses in 2028, as we have mentioned. How does this sum up? Well, we are moving towards operating model profitability of 25% of the group within five years. Of course, this all depends on how our new businesses and also the Bluetooth business develops over the years, but this is our target for the five years to come. Finally, a little bit about capital structure. Having a strong capital structure is, of course, important for a company. We have a net cash position of $100 million today, although this is, of course, lower than it was during the peak, slightly explained by higher working capital. Working capital is now $200 million, mainly because we have high inventories. High inventories explained by, well, the period we were during COVID. We want to have the flexibility to have wafers and products available when growth comes, and to manage growth in the future. But we do also have plans to reduce inventories going forward so that our net working capital can go down to the 25% of revenue, which really is the target we've had for many years. Equity at just below 70%. Target there is to keep it above 50%. As discussed throughout the presentation, our core focus is to achieve profitable growth. However, we also need to carefully balance between growth opportunities and the balance sheet strength before we evaluate potentials to either distribute or do other investments, higher investments. So we've set forth on four main capital allocation principles or priorities. These are pretty much the same as we did we presented in 2021, but I do want to recap on them. First, as you know, Nordic has a long-term perspective. We do reinvest in R&D. We have a target to have a R&D coverage of above one. We talked a lot about this last Capital Markets Day, and our customers buy our product roadmap. When guys out meeting customers, a lot of the time is spent discussing next products, not the current products. What are we going to deliver next? This is how Nordic really has managed to move from selling to the broad market customers to also have the key, the top biggest customers on our customer list. This is a very important KPI. Secondly, we are committed to have a strong balance sheet. We did a bond in late 2023, and in connection with the bond, we achieved the Nordic credit rating triple B investment grade, and then it's very important for us to maintain that credit rating. Kjetil talked a lot about the main two acquisitions we did for the last few years, pretty small. We do need to have some opportunity or some flexibility to do M&A. We can do either do M&A within strengthening the core business, just like we did with Atlazo and the Mobile Semiconductor acquisition, but we also need to have or want to have flexibility to explore adjacent tech and markets. Finally, subject to capital structure, long-term growth, and surplus cash, we will, of course, continuously evaluate cash returns to shareholders. Okay, I think that's my last slide now. I want to sum up, just like Vegard did earlier. We want to deliver on average an annual growth of above 20% throughout the decade. That's the ambitious target we have set, and we really want to deliver on, and the entire team is working relentlessly on this target. Secondly, this growth needs to come with profitability. We're now at the sustainable levels, but the target is to move that to 25% EBITDA within five years. That's all I have. I think now we're gonna turn to the very important panel discussion, Anne? Yes. Thank you, Pål. That leaves us to the break. Yes, let's have fifteen minutes break. Or maybe just five then. Five minutes break? Okay, because we're running like. That's fine. Okay, once again, we will open up for questions during Q&A from the audience here in Oslo. For you online, there will be additional Q&A group sessions available tomorrow for you to engage. So go to our investor relation pages on nordicsemi.com for more information and registration. Okay, see you in five minutes. Thank you. I was looking at the raindrops hitting the windows, and I wish we could go out and also. I wish Steven had invited me. I see this. Mm, lovely. So do you, are you gonna do, you wanna do a little intro, okay? And then I'll introduce myself or... Okay. We can alternate questions, and then we'll get started. That's what. Yes, we know. Mm-hmm. Yeah. Yeah. Okay, welcome back, everyone, and thank you for staying. It looks like our panel is getting ready, so I'll just give the word over to our two moderators for today, Rob Sanders, Deutsche Bank, and Christoffer Wang Bjørnsen, DNB. We will have Ståle Ytterdal, or Steel, who will manage the Q&A session with the on-site audience at the end. The stage is yours. Yeah. Thanks, everyone. Yeah, so the format, we're just gonna Kristoffer and myself are gonna alternate questions for probably around twenty minutes, and then we're gonna open up the floor for your questions. So don't think that we're monopolizing the questions or anything. But, Vegard, I'll kick off, and maybe we'll ask the first question, which is really just to discuss the nRF54 Series and the potential ASP uplift that we could see from the ramp of these products. And if you could just discuss the mix between the H and the L Series? I think there has been a worry in the market that the L Series is really where all the volume is, which is a lower ASP product. So it'd be good to get an understanding of how that mix could potentially benefit your ASP, which I think has been around $1. Thank you. Yeah. Thanks, Rob. Great question, and it has probably a dozen different angles to attack to look at that picture. I think our ambition is clearly to expand our attack and addressable markets both ways with the nRF54 Series generally. So we are actually expanding from a bit more low-end up to a lot more high-end, compared to our current nRF52, nRF53 offering combined. Then, of course, there is a range of various things happening at the same time in the market relative to where customers are moving and potential designing new designs. So we also see some customers that will go fairly horizontally, let's say so, from the nRF52 Series onto the new nRF54 Series. While we also see customers that will upgrade substantially in their memory requirements, in their compute requirements, and power requirement, power, compute power requirements of their systems, such that what was an entry-level smart ring, as an example, a few years back, may be very different in a couple of years in its capability. So it's really a very, very difficult question to answer in a general way. We have just generally said that we assume the mix and the blend of things to move relatively, relatively one to one going forward. On the other hand, there is a lot more room for higher-end applications coming, with the high-end part of the L and the nRF54 H, obviously. But it's... There isn't a single answer to it. Yeah. I think so one of the things that a lot of people have been trying to kind of understand and unpack today is this comment on the moderate growth, which you clarified on, and we're kinda coming off a first half where revenues has been kept down by inventory digestion, right? And then, as you're saying, more normalized from Q3 on the channel inventory, you know, you've been talking about more normal seasonality from here on. And if you basically put in normal seasonality for 2025 from Q3, next 5 quarters, basically end up about, you know, 30% growth year-over-year in twenty-five for the business as a whole. So when you're saying less than 17%, can you just help us understand a bit for the near term, not quantifying it, but what's going in the wrong direction? Is it loss of a couple of big sockets? You know, you don't wanna say which ones, but just are there anything, any dynamics like that, you know, making it a bit poor for 2025 before we head into 2026, or is it more macro thing? Yeah. It's. I understand the question, Christoffer. And yeah, we did say modest, we didn't say moderate. So- Yeah, there was a little detail. Little detail there, and I think we are not guiding for 2025, so and we won't be doing that, clearly. We are also generally seeing that our use of the analysts that we are using and the analysis data we are using is showing this 17% growth over the next five to seven years as a whole. Doesn't necessarily need to be perfectly that every year, as we all know, because we have seen that in the past years, and that's probably what we are hinting towards seeing in the nearer term. Yeah, the next question is just around, you've reorganized into four business units. I think, though, that investors won't be able to see the extent of the losses precisely on a quarterly basis, on an annual basis. I was just wondering, like, is it possible that you could actually publish those numbers, at least on an annual basis, so we can track it? And related to this, I mean, the cellular losses have obviously been, you know, very significant on a cumulative basis. How do you avoid a sunk cost fallacy in cellular? Because a lot of investors see that business as something that should be. You should be more ruthless about. Yep, I guess I have to take that over, as a question. I think already, Rob, we are fairly generous in the data we share on a quarterly basis in our earnings, compared to our competitors. So I'm not gonna promise that we are gonna be even more generous, but we are gonna help you, and we are gonna guide you as well. Likely, as we move on, we may show some more data on our various businesses, but there are also competitive reasons why we don't do that. Already, we give you quite a bit of data to capture how things are going in each and all of the businesses. I do think I have to say, I truly believe in the changes we are seeing and doing in the cellular space. Nordic has been skimming a part of the market, which is really requiring the ultra-low power and willing to pay quite substantially for that. We are changing the ways we are attacking that market quite dramatically at the moment, which is a very interesting and appealing change for us. It's also a matter of. We don't start from zero there. And of course, we should be able, and we shall show that we are able to drive these businesses in a different way than a startup would have done. Because obviously we are a corporation with all the support infrastructure around that. Having that starting point is truly making me think that with the changes we are doing now, sharpening our roadmaps, sharpening our market attack, and reducing product cost, and we also see the changes in the market with the coverage, is going to give us a different journey ahead in that area. Then there is this third item, which we promise and put on the table, which is accountability. So we are also now shown and given targets on how we are going to measure and monitor and manage this in the coming time, and that's obviously something we are promising to be keeping ourselves accountable for. Yeah. So, maybe a bit more to Paul, but I just have to take a final stab at this 2025 thing, unfortunately. But it's. So, you know, one of the reasons why I could, you know, we could see why there should be limited growth in 2025 could be, again, loss of customers, and one of the most vivid examples is one of your competitors having talked about having gained traction at one of your healthcare customers, and then we kind of were a bit interested in this sentence in one of the press. The slide from Paul, where you said healthcare was a bit more difficult to forecast. You kind of skipped that part of the slide. So anything you can share to help us kind of understand that, why healthcare is particularly difficult to forecast, and if that may be why the weakness in 2025, perhaps? Yeah, that's. So I wouldn't read too much into the details you're looking at there, Christoffer, and I wouldn't elevate this to be any drama on any major losses or any customers. We are fairly confident in what we see. We actually, I'm almost asking the question back, what do you see other people say about the market in the near term? Yeah. You're asking? It's pretty mixed. Other semiconductor companies. Yeah, it's pretty mixed, but yeah, I don't want to spend all the time here talking about my view, the twenty minutes that we have. Rob? Yeah, I mean, some old timers in the room that remember the evolution of CSR, had a great product, was first RFCMOS in Bluetooth Classic. Probably should have sold at the top. Then the combo appeared from Broadcom. Their ASP got destroyed. They saw a lot of price erosion. I mean, basically, you know, there is a you are perceived as a single product company in a way. How do you see the risk of things like combos? You've also seen Qualcomm and much larger companies that may take an interest in your domain. They've rather left it alone. Is there an integration risk that we should be aware of with Bluetooth Low Energy? Yeah, and another good question. I actually would kind of turn that the other way around and see that the way we look at our opportunity now, it's also for us to be able to expand into markets which hasn't been looked at as typical Nordic markets. And then, of course, I'm obviously thinking about MCU. I think you noted on one of the slides here, it actually said MCU. We had to do that because our customer asked us to do so. And that is a very large market, and we do see opportunities where that compute side, in the edge compute, as well as the connectivity, obviously, is very critical for our customer base. We see ourselves doing excellently on the MCU and compute side of things as well. But if you choose Nordic for the radio performance, you're absolutely safe. So in choosing either between an MCU player or Nordic, you obviously choose Nordic. So that's where we see more of an expansion opportunity for us in that space, rather than that being a threat. Cool. I think that's a good segue to my next question also on the... So you kind of had this evolution where system, like, level of integration is increasing, and, like, you did it with the keyboard and mice first. Now, like, a couple of years ago, we saw Apple going from having Bluetooth plus MCU separately to having one chip from you guys in a remote controller. Now you're doing the same with nRF53 in the Samsung Ring. So what we're trying to understand is, like, when you move to nRF54H, you've gone from doing it in remote, doing it in a ring. Like, so when we go to nRF54, without saying which customer, just, like, what kind of application will you have enough power, compute power to kind of displace the standard old MCU and other, let's say, adjacent components into the single chip? Yep, I can answer that. We see a lot of customer traction on the nRF54 H platform, and it brings us a new range of applications, and I think I mentioned a few of them in my presentation. We have sampled, as we said, more than 200 customers, and we have a large number of those more or less ready to go into production. So we are hitting the market pretty well, and what we are seeing is we are enabling new type of handheld applications, industrial applications with the nRF54 H platform. So definitely, we are hitting the market very well. Just to switching to the cellular side, you know, how should we think about your channel development in that area? These are different types of customers. Is it a distribution? You'd have to build new distribution connections 'cause these are more B2B markets. Is there a B2C opportunity? I think so far, you know, connected coffee makers hasn't been a winning formula for a lot of, you know, consumer devices, but there is a potential angle there. But of course, monetization has been a big challenge. I mean, part of what we talked about, I mentioned in my presentation as well, like, example, appliances. We cover that in more an industrial type market, but it's certainly more, yeah, also kind of bridging into the consumer domain. So we see a lot of applications that are bridging into the more consumer domain as well. But our kind of core focus now is really asset tracking, metering, and the Industrial IoT market. That's where we actually see we have true differentiation can win today. And we will certainly also support consumer applications that we are also seeing coming. Yeah, so still on this kind of increasing complexity and so on. So you have this really exciting example with Ember Cube, where you're seeing more, you know, not only more complex chips but a higher number of your chips in there. Again, it's difficult to talk about specific customers, but you kind of historically been this $1 per watch company, so every time I buy a watch or a light bulb, you earn a dollar, right? But with this move, with more complexity, more chips, your kind of average dollar content per end device increases. So it just helps understand in some of these most recent wins, we have cellular, PMIC, and so on. What's kind of the magnitude of the upside on kind of the dollar content per end device shipment, just to understand the growth potential as all customers maybe goes that path over time? I could take that. So I think even inside Bluetooth Low Energy, like Vegard said, you're going to see a big dynamic range of pricing from the lowest end of the L Series to the H Series. And typically, for our cellular chipsets, you know, compared to the legacy Bluetooth chip, they can be five times or seven or eight times more expensive. And I think very importantly for Nordic, it's not just the chip sales that we would see in the future, it's also the cloud component. So you have to take that into account as well. So, and we have seen gradually, you know, it's taken a much longer time than we anticipated. We do see more of our existing Bluetooth Low Energy customers actually picking up our other chips, our Wi-Fi chips, our Long Range chips, and the PMICs. And like, Øyvind showed, the cloud revenue is growing. So there's a good dynamic range, and it doesn't necessarily stop with just the Long Range ICs. It's actually inside the Bluetooth Low Energy range as well. But then you go, like, again, Ember. Not asking you about Ember, but when you have cellular plus Wi-Fi plus Bluetooth, you're probably well into the mid-teens in dollar content in a product- Yeah with those. Yeah? Yeah, it would be. Thanks. My last question, and then we can, after Christoffer's question, we can hand it out. It's just about Edge AI, maybe for Kjetil. When I think about Edge AI, I think about plugged-in terminals that sit in a factory to do, like, local AI processing, or I think about a terminal in a home that can do that. I don't think about coin-cell-operated devices doing AI processing because it sounds like it would just drain the battery really fast. So help us understand some examples of, you know, connected coin-cell battery devices that would use that kind of AI functionality. Yeah, it's a good question, and it's common to coin the edge as something like you describe it and not all the way out in our products. But if you take the example of the Galaxy Ring, and I don't know what all the inner workings of that ring, but that is surveillance in your health through sensors twenty-four seven, right? On a really, really more small battery. And they do that because the achievements that they get from our computational efficiency and the things that have happened with kind of the algorithms and the smarter things that comes into those product, allows them to run that on a nRF5340. And that can be things like looking at the heart rate. Are there irregularities on the heart rate, right? That is something typically you couldn't do before, but this algorithm actually can detect variances in the signals that they are monitoring all the times. We have customers that are in the cellular space, monitoring the electricity lines and actually picking up vibration for things falling on the lines to know if they need to go and do predictive maintenance, et cetera. And that is just sitting there and sensing and looking for anomalies in whatever they sense. So it's not like a massive what you do with kind of ChatGPT and the generative AI. It is applications as you typically done before. So when you wanted to count a step, you counted how many things you were hitting. Now, it actually knows if you're walking towards the train or if you sits down or what's actually making the vibration. So the evolution here goes in just making this product that we've always been supporting, just smarter and smarter. With our technology advancements and what's happening in this space, and now a lot can do it on small coin-cell battery and small rechargeable batteries using our products. Yeah, my final one. I'll, you know, piggyback on that one. So for me, it would also be interesting to understand a bit more about, like, so this is what your customers can do, the stuff you mentioned, right, with the chipsets and what you offer. But then, for instance, when you add Atlazo, that technology, can you talk a bit more about, like, how, what you're specifically doing with it, with like this. Is it more about, like, keeping the chip doing all these things, but still sleeping as much as possible, like the whole system sleeping, and only the monitoring being awake? Just like, so people understand how you kind of use it and not your customers. Yeah. So without getting too technical, I mean, what we're doing with this technology is accelerating computational math on our chips. So it's very specific operation that needs to run this kind of edge AI algorithms. And what we're doing with this technology is to accelerate that. I talked about latency, as I talk about power efficiency. And when you can shorten the time it takes to run some of these algorithms, you can either go back to sleep faster and conserve energy, or you can use that time you saved to do more stuff. And we see customers either doing the same and just conserve energy, or we see customers just doing more going forward. And again, I take a very naive example with... Remember the step counters. It's pretty much the same type of products today, but now it actually measures so much more because the computational improvements and what we have brought to the table has accelerated over the years. But it boils down to accelerating math in hardware. Yeah, that's great. Thanks. Okay, I think please place your hands up, and then make sure a mic is in your hand before asking it, if you can. Have we got some remote mics? There's some hands up in the front there. We are going to have some questions from the audience, and with me, I have Thomas and Anne with the microphone, so we can start with the Kepler here. Oh. Thank you. Sebastian from Kepler. The global environment is getting a bit tougher, macro condition weakening. Have you seen a specific change in the pricing environment in your main products or main markets? And attached to that, how are you discussing, I would say, the input cost evolution on your business? Do you have any ability to reduce input cost with the foundry, the wafers? And the second one is on the Cellular IoT. So the business is still ranging below $20 million, and you forecast $100 million at least by 2028. What kind of backlog do you have, or how should we think about the sales trajectory in the coming years? Should we expect the ramp of the nRF92 Series before seeing revenue picking up, or is it more linear trajectory? Thank you. Yeah, I'll let Øyvind answer the cellular question in a minute. Price pressure, I think clearly, as we are getting to more balanced markets, as we are now in semiconductor generally, where there is competition, there is price pressure, and that's happening right now. Something Nordic has been living in for decades, and we are used to. So I wouldn't say that that's any abnormal situation or a normal situation on that side. On the inbound side, my general answer is just that we have strong partners, we have strong relationships with our partners there. We are working with them on a continuous basis to optimize our inbound costing without commenting more specific on that. Yeah, and when it comes to the cellular, I mean, we don't report on any backlog, but certainly, we see a growth in number of customers utilizing our cellular solutions. We work with both very large customer cases and key customers on this, and we work with a broad set of smaller companies and startup companies. What we see is that activity levels are increasing and that we believe we can win a lot more business with nRF9151, lower costs solutions, and better integration than before. And then also we'll have the roadmap to the nRF92 Series later, but of course, that's gonna come at the end of that period, so we need to grow with what we have today as well. I don't know if I could add. So I could also add to that, that we see a different mix of customers, right? So you could say that in Long Range, it was pet trackers and kind of Amazon retail type items in the past and some industrial products. Now, we have design wins with some metering customers, you know, and other more substantial things that take, you know, a year or two to roll out, and we can put that into our models. So it does create, you know, this different layered structure of customers where we can make better projections for the future. Thank you. Then we have another one, please. Thank you for taking the question. Oliver Pisani, Carnegie. So sorry for getting back to 2025 again, but, I mean, can you then confirm that your guidance for 2025 is driven by a general market assessment and not by, say, a big customer loss or expectations for broader market share losses? Yeah, no, so obviously, we don't comment on specific changes, but I can just assure that we are in a very good relationship situation with our key customers overall. We are also building our near-term plans ground up and do that in a different way than we look at the analysis data for the remaining part of the period we talk about. Thank you. Yeah, hi, Sandeep Deshpande from JP Morgan. Couple of questions. Firstly, on 2025, when you look at what your customers are telling you at this point, clearly you've seen this correction in the industrial market. So when do you expect the industrial market correction to be ending? That is my first question. And is that contributing to your modest expectations into the for the ramp up of the nRF54 next year? Then secondly, regarding the cellular product, I mean, you've talked about you know, the price points are not at the correct place. So where do price points need to be to see more widespread adoption? Because that may be the critical element in terms of takeoff of the product, and what will enable price points to get to that level? Yeah, so first question was on the industrial market. So I think what we see in the industrial market is that it's a bit, particularly in Europe, that it is slower than our industrial business in Asia and the U.S., which has recovered quite a bit better and is stabilizing. So, obviously, that is part of what we see on an overall basis for the near term. We do see, as we talked about, some more customers in the long tail coming on board and buying products every quarter. But we also still expect some of the customers in the long tail, and particularly in the industrial market, Europe. Some there have inventories for quite a bit into 2025, as far as we see it. 54 adoption, I wouldn't link that specifically to that fact at all. That is more of a nature of designing in. There is a wide timeline here. I think it was mentioned here that we are actually going to ship very soon our first shipments of it. So some customers are at a very high readiness level to take some products there, but most customers will still require a design-in time, which is fairly long. Qualification, ramp prototyping, and ramp at their end before they move to something which becomes substantial for us. Yeah. And when it comes to kind of, you know, what's the price you asked for Cellular IoT to kind of take off? There is not, like, a specific price, because Cellular IoT has a very high value for many customers and many applications. Like, you stay connected, you're always connected, we have even wireless MCUs, very powerful devices, so it really has a high value. But of course, we see that we can enable a bigger part of that market as the prices comes down. So I cannot comment specifically on pricing, but, for sure, we see there's not like a step response. It's more like, okay, as the prices comes down, we can certainly grow the share of cellular in the market. Thank you. Then we have... Let me see. We have one here. You. Yes, on the microphone. Thank you. Eirik Berg, Nordic Delta. On a previous Capital Markets Day, Telia was joining you to tell about price plans for cellular. What they told at that time didn't really happened. A little bit to elaborate on the question on pricing with cellular. Are you seeing that the price plans on from the telecom operators are coming down on a level that makes it possible to grow that business? Yes, we see as well from a lot of the telecom operators, and MVNOs, and the virtual ones are coming with plans that makes sense for a lot of the IoT market. And then- It's improving. Good. Thank you. And then, a little bit further on 2025, because I get a bit confused, and the reason, at least the reason I'm here, is to be enlightened, not confused. On one side you say that you don't guide on 2025. On the other hand, what you are telling us is pushing the price on the share down 25% today. And I think that's not because you talk about 2030, it's what you say about 2025. So I think it's very confusing, the message you are sending. So the market is reading what you are saying about 2025 as a major profit warning, and then you say you don't guide on 2025. That's very confusing. Yeah. No, it's another question on 2025, and we are still sticking with the fact that we don't want to be guiding ahead of the time we have established as the next quarter. I do think it's fair to say that I think we are fairly aligned in a solid growth plan for Nordic in the coming years. That's what we truly believe in. We do see that our growth trajectory with the nRF54 Series as a very important engine for that is going to take a little bit of time before it turns on. On the other hand, it's also clear to us that when we look at next year and the relatively near term, it isn't so that everything we see is green light and spiking everywhere in the markets. We do see slow Europe, we see slow industry. We still have a broad market, which is fairly slow, while we see other aspects of the markets having recovered and stabilizing, like in consumer and some of our larger customers. So that is the picture we communicated after our Q2 call, and that's still what we are saying and what we are seeing. And we have, Petter. Yeah, I just I won't ask any more questions on 2025, but even though I would like to. But I have a question regarding the unit economics or economics within the different segments, because you talked about 35%-40% gross margin in 2021 within cellular. So question number one is: Is that still kind of the gross margin range within cellular? And secondly, if you can provide similar type of data points on PMIC and Wi-Fi, so we can kind of understand the business model dynamics within these segments. Right. Yeah, as a question, we are not breaking out gross margin between our segments, and until we do that, we don't do that. So I think it has been mentioned previously that there is a different gross margin for cellular. On the other hand, we also have cloud and other services coming on top of that. I think just on a general basis, in our plans, which we have now outlined for 2028, 2029, we have plans, and our overarching goal on that is to drive everything towards a common target operating model for the company. Mm-hmm. Because then it's a little bit different, difficult, at least from my perspective, to get my head around the 25% margin level. Basically, assuming that Wi-Fi, PMIC, and cellular is at, let's say, zero or breakeven in 2025, then the implied margin that you need on Short Range is very high. It's plus 30%, so I'm just curious how you could be able to get to those levels within Short Range. I'm not 100% sure I'm with you on the question there, Petter, but what we have said there is that our target for the Short Range Business, you look at that isolated, is to achieve 25% EBITDA targets for 2027. And we have said for our scale-up business and our early-stage businesses, they will reach profitability in 2028, and obviously, our plan is for them to be moving beyond that at that point in time. Okay. Thank you. Then we have, behind you, Thomas, you have one there. Hi, Olivia Honeychurch from Jefferies. Thanks for taking the question. I just wanted to ask about your market proposition versus peers when it comes to security. We talked in presentation today about how you've not really released a big new product for quite a few years now. 2016, I think, is when the nRF52 came out. So I assume that a lot of features there are slightly dated, one of which being security. And as we know, security is incredibly important now for customers, particularly given Edge AI and more compute being done on the device. So I guess two questions, really. One is: How does your offering compare to peers? And the second is: Do you think or know that you lost any customers in the last couple of years because you had a slightly dated, or if you had a slightly dated security system? Yeah. I think it's not correct to assume that we have an outdated security system on the nRF52 Series. The nRF52 Series fulfills all the security requirement for the products it was designed for. But we do see that there are more security requirements coming, and the PSA certification standard is becoming mandatory in some applications, and that's why the nRF54 Series has been designed for a PSA Level 3 certification standard. But we are on par or equal to our competitors in this area. So we are not lagging behind, but we are moving forward with the market and the requirements from our customers and regulatory requirements. Okay, then we have a question over here, and then we take ABG after that, Thomas. Yes, so, Lars Thoresen, private investor. This is a capital markets day. So, you know, we're here to understand what the future brings. Vegard, you're recently on board. You've put together, you know, a great team, some new faces, revitalized the team. You're talking about the 54 product series. Clearly, that's gonna take some time. However, what we're struggling to understand, I think some of us are, it will take time to get the new exciting future on board, but you have had the nRF52 Series for a long time. And when I'm looking at unit development and your competitors indications of where they're moving. It seems like on the nRF52 product series, you are losing market share. You're not growing 2024 and into 2025. And I think if that is the case, it would be good to talk about it. That's fine, you know. The future can be exciting, and you can still be behind in the short term, but we're trying to interpret now. There's a great possibility in the long term, but we can't really understand what you're doing in the short term and why. And I think the conclusion is, others, you know, others are doing better than you in the short term. Can you comment? Yeah. No, I understand that question, Lars. Appreciate that. We obviously can't sample market share on a quarterly basis, so that's a difficult question in itself. The thing we do see, and what we are seeing, is how we are holding up with the registrations, which we share with you on a quarterly basis, which is only being done with the previous generation products of Nordic, so the nRF52 and fifty-three series in combination. And that is holding up very well, and I have to say, it... If I can look a bit from the outside in, which I probably have to stop with today, but I can still do it one more time, that is impressive that we are keeping that with the nRF52 and nRF53. I think we have also a situation where we are working with some of the absolute largest players in the market who are also the companies that are clearly driving and winning and returning to growth patterns earlier than some of the other companies. So with that, I don't see a picture where that is happening, but we clearly see an opportunity for us to take more than more than our fair share in the market when we get with our nRF54 Series, which are truly truly much more competitive products than what we have today. It's. I think there is no secret from our point of view, we wish we had the nRF54 a bit earlier. But the nRF52 and fifty-three has also been keeping up well in the market, and the customer base has been developing and working with us on those products until we are now sharing the nRF54 Series with them, mostly. Then we have ABG. Yes, Øystein Lodgaard, ABG. Two questions. First, on dual sourcing, there has been a lot of talk about that lately. Do you see that an increasing share of customers are doing dual sourcing? And both, is that a risk, but also is that an opportunity for you to be able to win volumes as a second source? The second question is on Matter. I don't think you almost mentioned that at all today. Do you see that as an opportunity for you as more smart home products are moving over to the Matter standard going forward? Yeah. I think we can clearly say that. So dual sourcing is generally quite expensive to do in the customer bases we have. So if that happens, and when that happens, it's mostly in either more kind of life-critical type products, medical, and those type, healthcare type of markets. We do see some of that happening there, and obviously, as you say, Øystein, that is as much as a threat for us, that is an opportunity for us, which we obviously are working. Other than in that segment, we don't see much of that, I think I can say. On the Matter question, do you wanna take that, Ruben or Kjetil? Yeah. So, Matter, and along with a couple of other standards, we didn't spend a lot of time on that today, but that doesn't mean that we showed the Thread growth going in, and I think the numbers was 28%. That is predominantly driven by Matter. So we're still optimistic with what that will do in terms of the smart home, et cetera, but we have to acknowledge that the rollout and the promise of Matter hasn't really materialized fully yet. And the big players there, they are working on fixing those, and the standard is evolving. But we see Thread, and all our radios are multi-protocol, so the Thread and Matter remains as an important piece of our offering, an important piece of our customers. Some of the bigger customers we have, and some of the revenue that we see on the nRF52 and the nRF54 Series, is for Matter-enabled applications. Perfect. Then we have one behind there. Yeah. Thank you. So a bit back to the 2025 outlook, because we need to clarify a couple of things. So one thing is the market, and that's fair, the kind of view there that the market can be slow, but you mentioned that the nRF54 Series is an important growth engine. And it... What's confusing for me is that it seems like you're saying that customers are halting rollouts or new designs waiting for the nRF54 Series. But, I mean, Apple, Logitech, your customers are going to sell more volumes next year, or that's at least what analysts are expecting for them and other semiconductors. So I guess my question is: Why is the nRF54 Series such an important growth area? Is it ASP uplift or any other things we are missing? Yeah, no, I just think that the type of figures we see there that or have been used exactly for the year we're talking about. I'm not sure you find that in market data. I can see Silicon Labs, what- We're not commenting on what other semiconductors may mention- No, but that's kind of our market data points, right? The point that matters for us is how much is going to be sold in consumer, healthcare, and in the industrial markets. That's what we see. And that's what we work at. I think clearly for us, we are here to build a long-term growth plan, profitable growth plan for the company, and that's what we truly believe we are doing at the moment. And the nRF54 Series as a growth driver, is that for, in addition to market share gains, is there ASP or anything else? So obviously, 54 is absolutely vital for us to renew ourselves at the moment. You just saw the competitiveness levels in performance and power consumption that that product will offer over our competitors. And then you get that on top of the software ecosystems and all the additional strengths you get with Nordic. So, it's gonna be much harder to compete with us. Okay, thanks. And if I may, since I have the mic, Øyvind, on cellular, you mentioned an increasing number of customers. Can you compare that level to 2021? Because if I recall, Nordic had a lot of startups and early-stage companies on their customer list that maybe had a hard time when the markets kind of decelerated in second half of 2022 and with funding and all that. Yeah, I can talk specifically about the 2021 numbers, but what we see, and of course, there is a lot of startups that are not there anymore. Then, that's clear. But when we look at more those customers that we're counting, like Geir showed, which are active customers, we see that this is growing. Okay, jump back in the queue again. Thank you. We have one last question from Harry. Thanks. Thanks for taking my question. It's around 2026, and kind of if you wanted to call out the top two to three most tangible things that give you confidence in that acceleration from 2025 up towards your over 20% growth target that you're targeting, especially in the context of it being a relatively big step up from the 15% growth that you experienced, kind of through the cycle pre-COVID. So I think our confidence in the 2026 is based on the customers we are currently working with. We see, as we have said, we have sampled more than 200 customers of each of the new nRF54 families, and so we have a good insight in projects and products to be launched in the 2026 timeframe. Meaning, that is really what is driving our confidence here. And these customer design-in times are very variable, and that's why we're also saying that we will get a modest contribution from the nRF54, in 2025, and an accelerated growth in 2026. One kind of follow-up, if I may. With the over 20% growth target, what's your ASP assumption there? Is it kind of just the low- to mid-single-digit percentage declines that we've seen historically? We are not going to comment on the ASP targets. Okay, I think we have the last question. Okay, and we do Spetalen. Yeah, so you mentioned that your 2026 outlook and that the growth uptake is based on the insight you have with your customers. So if we jump back one year, you said that you had insight for $1 billion in run rate revenue. So what has kind of changed if we compare that implied 2026 number with last year? It's more than one year back. Yeah, I think that some of the previous targets, it's probably hard to relate to that and comment specifically on that at the moment. I think what we can say is that we obviously work with market data, and we work with our key customers to look at the forecasting structures we have with them, as well as certain assumptions we make in the broad market, and also working with our distribution partners in the broad market. That's how we are basing our estimates internally. Okay, thanks. Perfect. I think, that's conclude the Q&A for today. But I would like to inform everyone that we are going to have three group Q&A calls tomorrow. Depending on where you are, it will be in Europe, U.K., and U.S. So if you go to our website, our IR website, go to the calendar there, you will see all the details and how to register, and so forth. With that, I hand over to you, Anne. Yeah. With that, I'm gonna steal the word- Please -for a moment. I think I just wanna say thank you a lot for your time, and your attention, your interest. I think we have had truly great exchanges today. Really appreciate that. We are confident as a team that we will be driving a profitable growth path with innovation. Truly looking forward to that journey, and appreciate your support on that. We are having a social gathering in the company's offices, starting in 15- Yeah 20 minutes, which is Drammensveien 126. So I hope to see as many as possible of you there for some foods and drinks. Thanks a lot for the attention and participation on the online audience. Really appreciate it, and again, for those of you in the room, hope to see you in Drammensveien. Thank you. Good, and that leaves me to thank the audience once again. It's been a pleasure, and this day wouldn't happen behind the people behind the scene. I really want to say a big thank you to Aina Bergerud, Christine Einars, Thomas Larsen, and David Stone. Thank you very much. See you next time. Bye for now.